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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1951 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 404

103d CONGRESS

  2d Session

                                S. 1951

_______________________________________________________________________

                                 A BILL

To establish a comprehensive system of reemployment services, training 
and income support for permanently laid off workers, to facilitate the 
establishment of one-stop 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.

_______________________________________________________________________

                             April 11, 1994

            Read the second time and placed on the calendar

                                                       Calendar No. 404
103d CONGRESS
  2d Session
                                S. 1951

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

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

             March 17 (legislative day, February 22), 1994

 Mr. Moynihan (for himself, Mr. Mitchell, Mr. Bradley, Mr. Breaux, Mr. 
Daschle, Mr. Pryor, Mr. Riegle, Mr. Rockefeller, Mrs. Boxer, Mr. Ford, 
 Ms. Moseley-Braun, and Mr. Dodd) 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, training 
and income support for permanently laid off workers, to facilitate the 
establishment of one-stop career centers to serve as a common point of 
access to employment, education and training information and services, 
 to develop an effective national labor market information system, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reemployment Act of 1994''.

SEC. 2. TABLE OF CONTENTS.

    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 by-pass authority.
      Part C--Performance Standards and Quality Assurance Systems

Sec. 151. Customer service compact.
Sec. 152. Performance standards.
Sec. 153. Customer feedback.
Sec. 154. Eligibility requirements for service providers.
                      Part D--General Requirements

Sec. 161. General requirements.
Sec. 162. Benefits.
Sec. 163. Labor standards.
Sec. 164. Grievance procedure.
                Part E--Fiscal Administrative Provisions

Sec. 171. Program year.
Sec. 172. Prompt allocation of funds.
Sec. 173. Monitoring.
Sec. 174. Fiscal controls; sanctions.
Sec. 175. Reports, recordkeeping and investigations.
Sec. 176. Administrative adjudication.
Sec. 177. Nondiscrimination.
Sec. 178. Judicial review.
Sec. 179. Administrative provisions.
Sec. 180. Obligational authority.
Sec. 181. Criminal provisions.
Sec. 182. References.
                    Part F--Miscellaneous Provisions

Sec. 191. Effective date.
Sec. 192. Repealers.
Sec. 193. Transition.
  TITLE II--RETRAINING INCOME SUPPORT AND FLEXIBILITY IN UNEMPLOYMENT 
                              COMPENSATION

                   Part A--Retraining Income Support

Sec. 201. Establishment.
Sec. 202. Eligibility requirements.
Sec. 203. Weekly amounts.
Sec. 204. Limitations on retraining income support.
Sec. 205. Agreements with States.
Sec. 206. Administration absent State agreement.
Sec. 207. Liabilities of certifying and disbursing officers.
Sec. 208. Fraud and recovery of overpayments.
Sec. 209. Penalties.
Sec. 210. Definitions.
Sec. 211. Regulations.
Sec. 212. Effective date.
               Part B--Retraining Income Support Account

Sec. 221. Establishment of retraining income support account.
Sec. 222. Funds for administration.
Sec. 223. Conforming amendments.
Sec. 224. Effective date.
                      Part C--Financing Provisions

Sec. 231. Modifications to Federal unemployment tax.
Sec. 232. Voluntary withholding of Federal individual income tax.
 Part D--Integration of Trade-impacted Workers into the Comprehensive 
                          Reemployment System

Sec. 241. Phaseout of trade adjustment assistance program.
Sec. 242. Temporary program for the certification of trade-impacted 
                            workers.
             Part E--Unemployment Compensation Flexibility

Sec. 251. Treatment of short-time compensation programs.
Sec. 252. Treatment of reemployment bonus programs.
Sec. 253. Extension of self-employment assistance program.
Sec. 254. Effective date.
                TITLE III--ONE-STOP CAREER CENTER SYSTEM

Sec. 301. Purpose.
     Part A--Components of Voluntary One-Stop Career Center System

Sec. 311. General requirements.
Sec. 312. Workforce investment boards.
Sec. 313. Establishment of one-stop career centers.
Sec. 314. Services to be provided through one-stop career centers.
Sec. 315. Participating programs.
Sec. 316. Operating agreements.
Sec. 317. Quality assurance systems.
Sec. 318. State human resource investment council.
       Part B--Grants and Waivers To Promote the Development and 
            Implementation of One-Stop Career Center System

Sec. 331. State planning and development grants.
Sec. 332. State implementation grants.
Sec. 333. Waiver of Federal statutory and regulatory requirements.
Sec. 334. Pooling of administrative resources.
  Part C--Additional Activities in Support of One-Stop Career Center 
                                 System

Sec. 351. Customer service compact.
Sec. 352. Additional State responsibilities.
Sec. 353. Additional Federal responsibilities.
                         Part D--Effective Date

Sec. 371. Effective date.
           TITLE IV--NATIONAL LABOR MARKET INFORMATION SYSTEM

Sec. 401. Purpose.
Sec. 402. National strategy.
Sec. 403. Components of system.
Sec. 404. Coordination.
Sec. 405. Effective date.
    TITLE V--REINVENTION LABS FOR JOB TRAINING FOR THE ECONOMICALLY 
                             DISADVANTAGED

Sec. 501. Establishment of labs.
Sec. 502. Modification of tuition definition.
Sec. 503. Effective date.

SEC. 3. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) in recent years, both the nature of job uncertainty and 
        job loss has changed due to such forces as evolving 
        technologies, corporate restructuring, and intensifying global 
        competition;
            (2) a substantial number of Americans lose jobs because of 
        structural changes in the economy rather than cyclical 
        downturns, with more than two million full-time workers 
        permanently displaced annually due to plant closures, 
        production cutbacks, and layoffs;
            (3) job uncertainty and dislocation carry substantial 
        emotional and financial costs to the Nation, with tax revenues 
        and economic output declining when workers are idle and demands 
        on Government support rise;
            (4) all Americans--whether seeking first jobs, new jobs, or 
        better jobs--confront an economy in continuous transition and 
        must have access to new skills and better job and career 
        information in order to harness this change for increased 
        economic security and a rising standard of living;
            (5) our current worker adjustment policies were designed 
        for an earlier economy and often do not equip Americans to 
        prosper in the current and emerging atmosphere of constant 
        change;
            (6) the primary governmental response to job loss--the 
        unemployment insurance system--is effective in providing income 
        support to persons on temporary layoffs, but was not designed 
        to build reemployment security, and is ill-equipped by itself 
        to ensure that those people who are permanently laid off will 
        receive needed reemployment services;
            (7) the current Government response to dislocation is a 
        patchwork of categorical programs, with varying eligibility 
        requirements and different sets of services and benefits;
            (8) job search assistance and retraining are not available 
        to all who need them and income support is typically not 
        available to facilitate long-term training;
            (9) a lack of comprehensive labor market information--
                    (A) means that job seekers, training providers, and 
                employers must make hiring and training decisions based 
                on fragmented and incomplete data;
                    (B) adds time and costs to employers' recruitment 
                efforts; and
                    (C) hinders the ability of rapidly growing firms to 
                recruit and screen new employees; and
            (10) administrative and regulatory obstacles hamper the 
        efforts of States and localities to establish comprehensive 
        reemployment systems for all their citizens seeking first jobs, 
        new jobs, and better jobs.
    (b) Purpose.--It is the purpose of this Act to--
            (1) better integrate the existing unemployment system into 
        a comprehensive, universal, high-quality system for 
        reemployment, so that it can serve effectively the structurally 
        unemployed as well as those on temporary layoffs;
            (2) promote equity and efficiency by consolidating the 
        array of specific programs for dislocated workers into a single 
        comprehensive program for all workers who have been permanently 
        laid off, regardless of the cause of dislocation;
            (3) facilitate effective, quality training for permanently 
        laid-off workers who want and need it;
            (4) provide customer-centered, high-quality employment and 
        training services that give dislocated workers the tools to 
        make informed career and training choices;
            (5) provide universal access to basic reemployment 
        services, including assessment of skill levels and service 
        needs, labor market information, and job search assistance;
            (6) begin to transform the fragmented employment and 
        training system through a network of streamlined, one-stop 
        career centers providing universal access to all Americans who 
        want and need new jobs, better jobs, and first jobs;
            (7) replicate and expand the innovative efforts of States 
        and localities to provide comprehensive, high-quality 
        reemployment and training systems; and
            (8) create a national labor market information system that 
        gives employers, training providers, students, job seekers, and 
        employees high-quality and timely data on the local economy, 
        labor market, and other occupational information.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    (a) Title I.--There are authorized to be appropriated to carry out 
title I--
            (1) $1,465,000,000 for fiscal year 1995; and
            (2) such sums as may be necessary for each succeeding 
        fiscal year.
    (b) Titles III and IV.--There are authorized to be appropriated to 
carry out titles III and IV--
            (1) $250,000,000 for each of fiscal years 1995 through 
        1999; and
            (2) such sums as may be necessary for each of fiscal years 
        2000 through 2003.

SEC. 5. DEFINITIONS.

    For the purposes of this Act, the following definitions apply:
            (1) The term ``career center'' means such center 
        established pursuant to section 118.
            (2) The term ``community-based organizations'' means 
        private nonprofit organizations which are representative of 
        communities or significant segments of communities and which 
        provide education, training and related services.
            (3) The term ``economic development agencies'' includes 
        State and local planning and zoning commissions or board, 
        community development agencies, and other State and local 
        agencies and institutions responsible for regulating, 
        promoting, or assisting in State and local economic 
        development.
            (4) The term ``Governor'' means the chief executive of any 
        State.
            (5) The term ``labor market area'' means an economically 
        integrated geographic area within which individuals can reside 
        and find employment within a reasonable commuting distance or 
        can change employment without changing their place of 
        residence. Such areas shall be identified by the Secretary in 
        accordance with criteria used by the Bureau of Labor Statistics 
        of the Department of Labor or the Bureau of the Census of the 
        Department of Commerce in defining such areas.
            (6) The term ``local elected official'' means the chief 
        elected executive officer of a unit of general local government 
        in a substate area.
            (7) The term ``nontraditional employment'' as applied to 
        women refers to occupations or fields of work where women 
        comprise less than 25 percent of the individuals employed in 
        such occupational or field of work.
            (8) The term ``one-step career center'' means such center 
        established pursuant to section 313.
            (9) The term ``private industry council'' means the private 
        industry council established under section 102 of the Job 
        Training Partnership Act.
            (10) The term ``representatives of employees'' means 
        representatives from labor organizations (including local, 
        State, or national bodies, as appropriate) where such 
        organization represents a substantial number of employees.
            (11) The term ``Secretary'' means the Secretary of Labor.
            (12) The term ``service delivery area'' means such an area 
        as established in section 101 of the Job Training Partnership 
        Act.
            (13) The term ``service provider'' means a public agency, 
        private nonprofit organization, or private-for-profit entity 
        that delivers basic reemployment, intensive reemployment, 
        educational, training, or supportive services.
            (14) The term ``State'' means any of the several States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.
            (15) The term ``State council'' means the State job 
        training coordinating council established under section 122 of 
        the Job Training Partnership Act.
            (16) The term ``State Human Resource Investment Council'' 
        means the council established under section 701 of the Job 
        Training Partnership Act.
            (17) The term ``substate area'' means that geographic area 
        in a State established pursuant to section 117.
            (18) The term ``substate grantee'' means that agency, 
        organization, or consortium thereof selected to administer 
        programs pursuant to section 117(b).
            (19) The term ``unit of general local government'' means 
        any general purpose political subdivision of a State which has 
        the power to levy taxes and spend funds, as well as general 
        corporate and police powers.

         TITLE I--COMPREHENSIVE PROGRAM FOR WORKER REEMPLOYMENT

SEC. 101. ALLOTMENT OF FUNDS.

    (a) In General.--Of the funds appropriated pursuant to section 4(a) 
for any fiscal year, the Secretary shall--
            (1) allot 75 percent among the States in accordance with 
        subsection (b); and
            (2) reserve 25 percent to carry out part B, subject to the 
        reservation required by subsection (e).
    (b) Allotment Among States.--(1) Subject to the provisions of 
paragraphs (2) and (3), the Secretary shall allot the amount available 
in each fiscal year under subsection (a)(1) on the basis of the 
following factors:
            (A) One-third of such amount shall be allotted among the 
        States on the basis of the relative number of unemployed 
        individuals who reside in each State as compared to the total 
        number of unemployed individuals in all the States.
            (B) One-third of such amount shall be allotted among the 
        States on the basis of the relative excess number of unemployed 
        individuals who reside in each State as compared to the total 
        excess number of unemployed individuals in all the States. For 
        purposes of this paragraph, the term ``excess number'' means 
        the number which represents unemployed individuals in excess of 
        4.5 percent of the civilian labor force in the State.
            (C) One-third of such amount shall be allotted among the 
        States on the basis of the relative number of individuals who 
        have been unemployed for more than 26 weeks and who reside in 
        each State as compared to the total number of such individuals 
        in all the States.
    (2) As soon as satisfactory data are available under section 
133(b)(2), the Secretary shall allot the amount available in each 
fiscal year under subsection (a)(1) as follows:
            (A) 25 percent of such amount shall be allotted on the 
        basis of each of the factors described in subparagraphs (A), 
        (B), and (C) of paragraph (1), respectively, for a total of 75 
        percent of the amount allotted.
            (B) 25 percent of such amount shall be allotted on the 
        basis of the relative number of dislocated workers who reside 
        in each State as compared to the total number of dislocated 
        workers in all States.
    (3)(A) No State shall be allotted less than 90 percent of its 
allotment percentage for the fiscal year preceding the fiscal year for 
which the determination is made.
    (B) No State shall be allotted more than 130 percent of its 
allotment percentage for the fiscal year preceding the fiscal year for 
which the determination is made.
    (C)(i) Except as provided in clause (ii), for purposes of this 
paragraph the allotment percentage of a State for a fiscal year shall 
be the percentage of funds allotted to the State under this subsection.
    (ii) For the purposes of this paragraph, the allotment percentage 
for fiscal year 1994 shall be the percentage of funds allotted to the 
State under section 302 of the Job Training Partnership Act.
    (c) Reservations for State Activities.--
            (1) The Governor may reserve up to 30 percent of the amount 
        allotted to the State under subsection (b) to carry out State 
        activities in accordance with this title.
            (2) Of the amount reserved by the Governor pursuant to 
        paragraph (1)--
                    (A) not more than 15 percent shall be available for 
                the costs of administration of programs authorized 
                under this title;
                    (B) not more than 20 percent shall be available for 
                the costs of administration of programs authorized 
                under this title and the costs of technical assistance; 
                and
                    (C) not more than 5 percent shall be available to 
                carry out the job retention projects authorized under 
                section 116.
    (d) Within State Distribution.--
            (1) The Governor shall allocate the remainder of the amount 
        allotted to the State under subsection (b) to substate areas to 
        carry out activities authorized under this title based on an 
        allocation formula prescribed by the Governor. Such formula may 
        be amended by the Governor not more than once for each program 
        year. Such formula shall include the factors described in 
        subsection (b) and such additional objective and measurable 
        factors as the Governor determines are appropriate.
            (2) Of the amount allocated to each substate area pursuant 
        to paragraph (1) for each program year, not more than 15 
        percent shall be available for the costs of administration.
    (e) Reservation for the Territories.--Of the amount reserved by the 
Secretary under subsection (a)(2) for any fiscal year, not more than 
0.3 percent shall be allocated among Guam, the Virgin Islands, American 
Samoa, the Commonwealth of the Northern Mariana Islands, the Federated 
States of Micronesia, the Republic of the Marshall Islands, and Palau 
to carry out activities authorized under this title.
    (f) Reservations for National Activities.--Of the remainder 
reserved by the Secretary under subsection (a)(2):
            (1) For each of fiscal years 1995 through 1999--
                    (A) not less than 80 percent shall be available for 
                national discretionary grants under sections 131 and 
                132; and
                    (B) not more than 20 percent shall be available 
                for--
                            (i) evaluation of program performance, 
                        research, and pilot and demonstration projects 
                        described in section 133; and
                            (ii) capacity building, staff development 
                        and training, and technical assistance 
                        described under section 134.
            (2) For fiscal year 2000 and each succeeding fiscal year--
                    (A) not less than 85 percent shall be available for 
                national discretionary grants under sections 131 and 
                132; and
                    (B) not more than 15 percent shall be available 
                for--
                            (i) evaluation of program performance, 
                        research, and pilot and demonstration projects 
                        described in section 133; and
                            (ii) capacity building, staff development 
                        and training, and technical assistance 
                        described under section 134.

SEC. 102. RECAPTURE AND USE OF UNEXPENDED FUNDS.

    (a) In General.--For program years beginning July 1, 1996, and 
thereafter, the Secretary shall, in accordance with this section--
            (1) recapture funds appropriated for such program years 
        that are available for recapture, and
            (2) use the funds recaptured under paragraph (1) to carry 
        out the national discretionary grant program under section 131.
    (b) Amounts Available for Recapture.--The amount available for 
recapture is equal to--
            (1) the amount by which the unexpended balance of the State 
        allotment (under section 101(b)) at the end of the program year 
        prior to the program year for which the determination under 
        this section is made exceeds 20 percent of such allotment for 
        that prior program year, plus
            (2) the unexpended balance of the State allotment from any 
        program year prior to the program year in which there is such 
        excess.
    (c) Exclusion.--For purposes of this section, funds awarded to the 
State from the discretionary funds of the Secretary pursuant to 
sections 131 and 132 shall not be included in calculating the amounts 
available for recapture.
    (d) Method of Recapture.--The Secretary may, as a method of 
recapturing funds for the purposes of subsection (a)(1), reduce the 
allotment to the State under section 101(b) for the program year 
subsequent to the program year for which the determination is made by 
an amount equal to the amount available for recapture.

SEC. 103. ELIGIBILITY FOR SERVICES.

    (a) In General.--An individual shall be eligible to receive 
services under this title if such individual--
            (1) has been permanently laid off from full-time, part-
        time, or seasonal (including farmworkers and fishermen) 
        employment within the preceding twelve-month period, and--
                    (A) such individual is unlikely to obtain 
                employment in the same or similar occupation due to 
                obsolete skills or a lack of employment opportunities; 
                or
                    (B) such layoff resulted from any permanent closure 
                or any substantial layoff at the plant, facility or 
                enterprise;
            (2) has received a notice that such individual will be 
        permanently laid off, and--
                    (A) such individual is unlikely to obtain 
                employment in the same or similar occupation due to 
                obsolete skills or a lack of employment opportunities; 
                or
                    (B) such layoff will result from any permanent 
                closure or substantial layoff at a plant, facility, or 
                enterprise;
            (3) is employed at a facility where the employer has 
        publicly announced that such facility will be closed within one 
        year and such individual is unlikely to--
                    (A) remain employed with such employer at another 
                location; or
                    (B) retire permanently from the labor force on or 
                before such closure;
            (4) is long-term unemployed and has limited opportunities 
        for employment in the same or similar occupation in which such 
        individual was previously employed;
            (5) was self-employed (including farmers, fishermen and 
        ranchers) and is unemployed as a result of general economic 
        conditions in the community in which such individual resides or 
        because of natural disasters;
            (6) is certified as eligible under the transitional 
        certification of trade impacted workers program authorized 
        under part D of title II of this Act; or
            (7) was identified and referred to the program under this 
        title, in accordance with regulations issued by the Secretary, 
        by a State worker profiling system established under section 
        303(j) of the Social Security Act.
    (b) Displaced Homemakers.--An individual who is a displaced 
homemaker shall be eligible to receive services described in section 
119(b) and such other services authorized under this title as the 
Governor determines are appropriate to provide to such individuals if--
            (1) the displacement occurred within the preceding twelve-
        month period,
            (2) such individual is unemployed, and
            (3) such individual meets the requirements relating to 
        services provided under this title, other than the requirements 
        of subsection (a).
    (c) Definitions.--For purposes of this section:
            (1) The term ``permanently laid off'' means a layoff under 
        which a recall is not expected within twenty-six weeks.
            (2) The term ``long-term unemployed'' means a period of 
        unemployment defined by the Governor, except that such period 
        shall not be less than twenty-seven weeks.
            (3) The term ``displaced homemakers'' has the same meaning 
        given such term in section 4(29) of the Job Training 
        Partnership Act.

               PART A--STATE AND SUBSTATE DELIVERY SYSTEM

SEC. 111. STATE ADMINISTRATION AND OVERSIGHT.

    The State shall be responsible for developing and operating 
administrative and management systems which ensure proper control and 
accountability for the use of funds, in accordance with the 
requirements of part E of this title, and the accomplishment of the 
objectives of this title.

SEC. 112. DESIGNATION AND FUNCTIONS OF STATE DISLOCATED WORKER UNIT.

    (a) In General.--The Governor shall designate or establish a 
dislocated worker unit at the State level (hereafter referred to as the 
``State dislocated worker unit'') to carry out the functions described 
in this section.
    (b) Functions of Unit.--
            (1) Rapid response.--The State dislocated worker unit shall 
        carry out the following rapid response activities:
                    (A) Receive notices provided pursuant to the Worker 
                Adjustment and Retraining Notification Act and collect 
                information identifying the site of other permanent 
                closures and layoffs affecting fifty or more workers.
                    (B) Establish contact with representatives of the 
                employer, affected workers and affected unions, and 
                affected substate grantees within forty-eight hours of 
                being informed of or otherwise identifying such closure 
                or layoff.
                    (C) Provide assistance on site within five working 
                days of being informed of or otherwise identifying such 
                closure or layoff (unless representatives of the 
                affected workers agree to defer the commencement of 
                assistance), including--
                            (i) the provision of information relating 
                        to, and assistance in obtaining access to, 
                        available programs and services;
                            (ii) the provision of appropriate 
                        reemployment services on an emergency basis; 
                        and
                            (iii) the provision of basic reemployment 
                        services in a group setting.
                    (D) Promote the formation of worker-management 
                transition assistance committees, which meet the 
                requirements of subsection (d), by--
                            (i) providing immediate assistance in the 
                        establishment of such committees, including--
                                    (I) providing immediate financial 
                                assistance to cover startup costs of 
                                the committee;
                                    (II) providing a list of 
                                individuals from which the chairperson 
                                of the committee may be selected; and
                                    (III) requesting the list of 
                                committee members from the employer and 
                                union, or providing assistance in the 
                                selection of worker representatives in 
                                the event no union is present; and
                            (ii) providing technical assistance in the 
                        development by such committees of a strategy 
                        for assessing the employment and training needs 
                        of each affected worker and for obtaining the 
                        services and assistance necessary to meet those 
                        needs, which may include--
                                    (I) providing technical advice as 
                                well as information on sources of 
                                assistance, and
                                    (II) serving as liaison with other 
                                public and private services and 
                                programs.
                    (E) Prepare an action plan for the provision of 
                reemployment and training services to eligible 
                individuals, including group counseling, preliminary 
                assessments, and labor market information, which may 
                include assistance in planning for the establishment of 
                an on-site transition center described in section 
                115(c).
            (2) Information collection and dissemination.--The State 
        dislocated worker unit shall carry out the following 
        information collection and dissemination activities:
                    (A) Provide to employers and employees throughout 
                the State information relating to the Worker Adjustment 
                and Retraining Notification Act, including the 
                requirements of such Act, and information relating to 
                the eligibility requirements and services and benefits 
                available under this title.
                    (B) Collect information relating to--
                            (i) economic dislocation, including 
                        potential closings and layoffs and the impact 
                        of closures and layoffs to which such unit has 
                        responded, and
                            (ii) available programs and resources 
                        within the State to serve affected workers.
                    (C) Disseminate the information collected pursuant 
                to subparagraph (B) to the Governor to assist in 
                providing an adequate information base for effective 
                program management, review, and evaluation.
                    (D) Disseminate information throughout the State on 
                the services and activities carried out by the State 
                dislocated worker unit.
            (3) Program support.--The State dislocated unit shall carry 
        out the following program support activities:
                    (A) Provide technical assistance and advice to 
                substate grantees.
                    (B) Work with employers and representatives of 
                employees in promoting labor-management cooperation to 
                achieve the objectives of this title.
                    (C) Assist each local community affected by a mass 
                layoff or plant closing in developing and implementing 
                an adjustment plan, including assistance in obtaining 
                access to State economic development assistance.
            (4) Coordination.--The State dislocated worker unit shall 
        exchange information and coordinate programs with--
                    (A) the appropriate economic development agency and 
                job retention projects authorized under section 116, 
                for the purpose of identifying potential layoffs and 
                for the purpose of developing strategies to avert plant 
                closings or mass layoffs and to accelerate the 
                reemployment of dislocated workers;
                    (B) State education, training and social services 
                programs;
                    (C) State labor federations;
                    (D) State-level general purpose business 
                organizations; and
                    (E) all other programs available to assist 
                dislocated workers, including the Employment Service, 
                the unemployment insurance system, one-stop career 
                centers established under title III of this Act, and 
                student financial aid programs.
    (c) Coordination With Career Centers.--In carrying out this 
section, the State dislocated worker unit shall coordinate its actions 
with the affected substate grantees and career centers.
    (d) Worker-Management Transition Assistance Committees.--The 
worker-management transition assistance committees promoted by the 
State dislocated worker unit pursuant to subsection (b)(1)(D) shall 
ordinarily include (but not be limited to) the following:
            (1) Shared and equal participation by workers (and their 
        representatives) and management, and which may include 
        participation from community representatives as appropriate.
            (2) Shared financial participation between the employer and 
        the State, using funds provided under this title in paying for 
        the operating expenses of the committee.
            (3) A chairperson, to oversee and guide the activities of 
        the committee, who shall--
                    (A) be jointly selected by the worker and 
                management representatives of the committee,
                    (B) not be employed or under contract with or 
                members of the immediate family of labor or management 
                at the site, and
                    (C) provide advice and leadership to the committee 
                and prepare a report on its activities.
            (4) Operations pursuant to a formal agreement, terminated 
        at will by the workers or management, and terminated for cause 
        by the Governor.
    (e) Coverage of Layoffs.--The Governor may authorize the provision 
of the rapid response activities described in subsection (b)(1) to 
layoffs of less than fifty workers if such layoffs are determined by 
the Governor to have a significant adverse economic impact on a local 
community.
    (f) Plant Buyout Study.--In a situation involving an impending 
permanent closure or substantial layoff, a State may provide funds, 
where other public or private resources are not expeditiously 
available, for a preliminary assessment of the advisability of having a 
company or group, including the workers, purchase the plant and 
continue it in operation. Such assessment shall not include a 
feasibility study relating to such purchase.
    (g) Prohibition on Transfer of Responsibility.--The State shall not 
transfer the responsibility for the rapid response assistance functions 
of the State unit under this section to another entity, but the State 
may carry out such functions through agreement, grant, contract, or 
other arrangement with another entity, such as a substate grantee or a 
career center.
    (h) Federal Oversight of Rapid Response.--The Secretary shall 
oversee the administration by each State of the rapid response 
assistance services provided in such State and evaluate the 
effectiveness, efficiency, and timeliness of the delivery of such 
services. The Secretary may establish performance standards relating to 
the provision of such services by the State. If the Secretary 
determines that such services are not being performed adequately, the 
Secretary shall implement appropriate corrective action.

SEC. 113. DEVELOPMENT AND MAINTENANCE OF STATE AND LOCAL LABOR MARKET 
              INFORMATION SYSTEMS.

    (a) In General.--In furtherance of the national strategy described 
in section 402 of this Act to establish a nationwide system of 
effective labor market information, the Governor shall identify, or 
develop, and maintain a comprehensive labor market information system 
in the State that--
            (1) promotes the collection, use, exchange, and 
        dissemination of quality labor market information that will 
        enhance the employment opportunities available to permanently 
        laid off workers and other individuals seeking employment, and
            (2) provides support for needed improvements or adjustments 
        in current labor market information systems and integrates such 
        systems to meet local and State labor market needs.
    (b) Content.--The labor market information described in subsection 
(a)(1) shall include the information specified in section 403(a) of 
this Act relating to the national labor market information system.
    (c) Standards for Information Collection and Dissemination.--The 
Governor shall ensure that data collection and dissemination systems 
are developed in accordance with the technical standards specified in 
section 403(b) of this Action relating to the national labor market 
information system.
    (d) Coordination of Data Collection and Survey Consolidation.--
Consistent with the technical standards specified in section 403(b), 
the Governor shall ensure, to the extent feasible that--
            (1) automated technology will be used in data collection 
        and dissemination;
            (2) the State dislocated worker unit, the substate 
        grantees, and the career centers under this title have timely 
        access to and exchange information relating to quality labor 
        market information;
            (3) administrative records are designed to reduce 
        paperwork; and
            (4) available administrative data and multiple surveys are 
        shared or consolidated to reduce duplication of recordkeeping 
        of State and local agencies.
    (e) Design of State System.--The Governor shall designate an agent 
within the State to be responsible for oversight and management of a 
statewide comprehensive labor market and occupational information 
system that--
            (1) meets the requirements of this section;
            (2) provides such training and technical assistance 
        necessary to facilitate the collection of data and the 
        dissemination of information through the programs assisted 
        under this title;
            (3) provides funding for the State share of the cooperative 
        agreements authorized in section 402; and
            (4) funds research, evaluation, and demonstration projects 
        designed to make improvements in the statewide labor market 
        information system.
    (f) Coordination of Resources.--The Governor shall coordinate the 
activities carried out under this title with the labor market 
information activities carried out in the State pursuant to other 
Federal laws and with the national labor market information program 
described in title IV of this Act. In maintaining the system described 
under this section, the Governor may use funds that are otherwise 
available to the Governor for such purposes under other Federal laws, 
such as the Job Training Partnership Act and the Wagner-Peyser Act.
    (g) Methods of Collection and Dissemination.--In order to 
facilitate the collection and dissemination of the data described in 
subsection (b), the Governor shall--
            (1) identify and utilize cost-effective methods for 
        obtaining such data as are necessary to carry out this section 
        which, notwithstanding any other provision of law, may include 
        access to earnings records, State employment security records, 
        records collected under the Federal Insurance Contributions Act 
        (chapter 21 of the Internal Revenue Code of 1986), State aid to 
        families with dependent children records, secondary and post-
        secondary education records, and similar records or measures, 
        with appropriate safeguards to protect the confidentiality of 
        the information obtained; and
            (2) publish and make available labor market and 
        occupational supply and demand information and career 
        information to State agencies, public agencies, libraries, 
        employers, and individuals who are in the process of making 
        career choices.

SEC. 114. COORDINATION WITH WORKER PROFILING AND RETRAINING INCOME 
              SUPPORT PROGRAMS.

    (a) Worker Profiling.--The Governor shall coordinate programs under 
this title with the worker profiling system authorized under title III 
of the Social Security Act. Such coordination shall include methods for 
ensuring the prompt referral, in accordance with regulations issued by 
the Secretary, of the claimants identified under such profiling system 
to career centers authorized under this title, and the sharing of 
relevant information.
    (b) Retraining Income Support.--The Governor shall coordinate 
programs under this title with the retraining income support program 
authorized under part A of title II of this Act.

SEC. 115. STATE SUPPLEMENTARY GRANTS FOR AREAS OF SPECIAL NEED.

    (a) In General.--The Governor may award grants to provide the 
services authorized under section 119 to eligible individuals in areas 
of the State experiencing substantial increases in the number of 
eligible individuals due to plant closures, base closures and mass 
layoffs.
    (b) Eligible Entities.--The grants authorized under subsection (a) 
may be awarded to--
            (1) the substate grantees in the areas affected by such 
        closures and mass layoffs;
            (2) employers and employer associations;
            (3) transition assistance committees and other employer-
        employee entities;
            (4) representatives of employees;
            (5) industry consortia; and
            (6) State agencies.
    (c) Establishment of Additional Service Centers.--
            (1) In general.--The Governor may use the grant funds 
        available under this section to establish a center, including 
        an on-site transition center described in paragraph (2), at the 
        site of a plant closure, base closure or mass layoff to provide 
        the services described in section 119. Such center shall be 
        established after formal consultation with the substate grantee 
        for the affected area and shall be operated in coordination 
        with the career centers in the affected area.
            (2) On-site transition centers.--Funds available under this 
        section may be used to establish a transition center that--
                    (A) is located at the site of a plant closure, base 
                closure, or mass layoff for the purpose of providing 
                reemployment services to eligible individuals affected 
                by such layoff or closure,
                    (B) includes substantial funding from sources other 
                than public funds,
                    (C) is operated with the concurrence and 
                participation of affected workers and their 
                representatives and the affected employer, including 
                the worker-management transition assistance committee 
                established in accordance with section 112(d) if such 
                committee is established.
                    (D) provides the reemployment services described in 
                sections 119 (b) and (c) directly or through contracts 
                with other entities, such as outplacement agencies, and
                    (E) is administered in coordination with the career 
                centers in the substate area, including arrangements to 
                ensure that the affected workers have the opportunity 
                to receive services at the career centers in addition 
                to or in lieu of receiving such services at the 
                transition center.

SEC. 116. STATE GRANTS FOR JOB RETENTION PROJECTS.

    (a) In General.--The Governor may, consistent with the limitation 
contained in section 101(c)(2)(B), award grants to assist projects 
that--
            (1) provide services to upgrade the skills of employed 
        workers who are at risk of being permanently laid off; and
            (2) assist in retraining employed workers in new 
        technologies and work processes that will facilitate the 
        conversion or restructuring of businesses into high performance 
        work organizations and avert plant closings or substantial 
        layoffs.
    (b) State and Employer Contribution Required.--In order for a 
project to be eligible for assistance under subsection (a), the amount 
of the grant to be awarded shall be matched by an equal amount provided 
by a combination of--
            (1) funds provided by the State, from funds other than 
        Federal funds; and
            (2) funds provided by the affected employers or businesses.
    (c) Consultations.--Prior to awarding grants under this section, 
the Governor shall consult with unions representing affected workers 
regarding the proposed projects.

SEC. 117. ESTABLISHMENT OF SUBSTATE ADMINISTRATIVE STRUCTURE.

    (a) Designation of Substate Areas.--
            (1) The Governor of each State shall, after consultation 
        with the State council and local elected officials, designate 
        substate areas for the State.
            (2) Each service delivery area within a State shall be 
        included within a substate area and no service delivery area 
        shall be divided among two or more substate areas.
            (3) In making designations of substate areas, the Governor 
        shall consider--
                    (A) the availability of services throughout the 
                State;
                    (B) the capability to coordinate the delivery of 
                services with other job training, human services and 
                economic development programs; and
                    (C) the geographic boundaries of labor market areas 
                within the State.
            (4) Subject to paragraphs (2) and (3), the Governor--
                    (A) shall designate as a substate area any single 
                service delivery area that--
                            (i) has a population of two hundred 
                        thousand or more, and
                            (ii) requests such designation;
                    (B) shall designate as a substate area any two or 
                more contiguous service delivery areas--
                            (i) that in the aggregate have a population 
                        of two hundred thousand or more, and
                            (ii) that request such designation; and
                    (C) shall designate as a substate area any 
                concentrated employment program grantee for a rural 
                area described in section 101(a)(4)(A)(iii) of the Job 
                Training Partnership Act.
            (5) The Governor may deny a request for designation under 
        paragraph (4)(B) if the Governor determines that such 
        designation would not be consistent with the effective delivery 
        of services to eligible dislocated workers in various labor 
        market areas (including urban and rural areas) within the 
        State, or would not otherwise be appropriate to carry out the 
        purposes of this title.
            (6) The Governor shall not designate as a substate area any 
        area with a population of less than two hundred thousand unless 
        such area meets the requirements of paragraph (4)(C).
            (7) From the funds reserved under section 101(c)(1), the 
        Governor may award grants to encourage the formation of 
        substate areas that are based on labor market areas.
            (8) The Governor may designate as substate areas under this 
        title areas designated as substate areas under title III of the 
        Job Training Partnership Act prior to the enactment of this Act 
        if such areas meet the requirements of this subsection.
            (9) The designations made under this subsection may not be 
        revised more than once every four years.
    (b) Designation of Substate Grantees.--
            (1) Agreement.--A substate grantee shall be designated, on 
        a quadrennial basis, for each substate area. Such substate 
        grantee shall be designated in accordance with an agreement 
        among the Governor, the local elected official or officials of 
        such area, and the private industry council or councils of such 
        area. Whenever a substate area is represented by more than one 
        such official or council, the respective officials and councils 
        shall each designate representatives, in accordance with 
        procedures established by the Governor (after consultation with 
        the State council), to negotiate such agreement. In the event 
        agreement cannot be reached on the selection of a substate 
        grantee, the Governor shall select the substate grantee.
            (2) Eligibility.--Entities eligible for designation as 
        substate grantees include--
                    (A) private industry councils in the substate area;
                    (B) service delivery area grant recipients or 
                administrative entities under the Job Training 
                Partnership Act;
                    (C) private nonprofit organizations;
                    (D) units of general local government in the 
                substate area, or agencies thereof;
                    (E) local offices of State agencies;
                    (F) other public agencies, such as community 
                colleges and area vocational schools; and
                    (G) consortia of the entities described in 
                subparagraphs (A) through (F).
    (c) Functions of Substate Grantees.--
            (1) In general.--Except as provided in paragraph (2), the 
        substate grantees designated pursuant to this subsection 
        shall--
                    (A) receive and administer funds allocated to the 
                substate area, including the administration of payments 
                to service providers in accordance with section 
                119(d)(2);
                    (B) administer the process for the selection of 
                career center operators established pursuant to section 
                118;
                    (C) conduct oversight and monitoring of the program 
                carried out within the substate area and coordinate the 
                operation of the career centers established within the 
                substate area; and
                    (D) prepare and make publicly available a biennial 
                written plan describing the objectives to be 
                accomplished and the activities to be undertaken in the 
                substate area under this title.
            (2) Special rule.--
                    (A) Selection process for career center 
                operators.--If a substate grantee desires to be 
                selected to operate a career center, the process for 
                the selection of career center operators in the 
                substate area shall be administered by the private 
                industry council or councils established in such 
                substate area. If such substate grantee is such private 
                industry council, the process for the selection of 
                career center operators in the substate area shall be 
                administered by the Governor.
                    (B) Oversight.--If a substate grantee is selected 
                to operate a career center, the oversight of the career 
                centers in the substate area shall be carried out by 
                the Governor.

SEC. 118. ESTABLISHMENT OF CAREER CENTERS.

    (a) In General.--The substate grantee designated pursuant to 
section 117 shall, in accordance with the requirements of this section, 
establish one or more career centers in each substate area.
    (b) Functions of Centers.--Each career center shall be the point of 
access for eligible individuals to the services provided pursuant to 
section 119.
    (c) Selection of Centers.--
            (1) Selection process.--The substate grantee shall select 
        the career center operators in accordance with the requirements 
        of this subsection.
            (2) Eligible entities.--Any entity or consortium of 
        entities located in the substate area may apply, in accordance 
        with the procedures described in paragraph (3), to be selected 
        as a career center operator. Such entities may include--
                    (A) Employment Service offices,
                    (B) service delivery area grant recipients or 
                administrative entities under the Job Training 
                Partnership Act,
                    (C) substate grantees under this title,
                    (D) community colleges and area vocational schools,
                    (E) community-based and other private, nonprofit 
                organizations, and
                    (F) other interested private for-profit and public 
                organizations and entities.
            (3) Publication of procedures.--The substate grantee, after 
        consultation with the Governor and local elected officials, 
        shall publish, in a manner that is generally available, 
        information to notify organizations and individuals in the 
        substate area of--
                    (A) the estimated number of career centers to be 
                established in the substate area;
                    (B) the application procedure for any entity or 
                consortium of entities desiring to be selected to 
                operate such centers, including when and where such 
                application is to be submitted and what information 
                such application is to contain;
                    (C) the criteria for selection that will be used, 
                consistent with paragraph (4); and
                    (D) other information the substate grantee 
                considers relevant to the selection of operators and 
                administration of such centers.
            (4) Selection criteria.--
                    (A) Objective factors.--The substate grantee, 
                consistent with guidelines issued by the Secretary, 
                shall use objective criteria and performance measures 
                in assessing applications submitted for selection as a 
                career center operator.
                    (B) Contents.--An applicant may not be selected as 
                a career center operator under this title unless such 
                applicant demonstrates to the satisfaction of the 
                substate grantee the ability to operate a career center 
                that would--
                            (i) provide the services described in 
                        section 119;
                            (ii) utilize automated information systems 
                        to facilitate the exchange of information among 
                        career centers;
                            (iii) meet the performance standards 
                        prescribed pursuant to section 152;
                            (iv) meet the fiscal control requirements 
                        provided in part E;
                            (v) administer the process of referring 
                        participants to education and training services 
                        in an objective and equitable manner; and
                            (vi) meet such other requirements as the 
                        substate grantee determines is appropriate.
                    (C) Level of wages and benefits.--The level of 
                wages and benefits paid to non-managerial employees by 
                an applicant may not be considered as a factor in the 
                selection of a career center operator. Other cost 
                factors may be taken into account in such selection.
            (5) Period of selection.--The substate grantee shall select 
        career center operators pursuant to the requirements of this 
        subsection once every four years.
            (6) Enforcement of honest broker functions.--The substate 
        grantee shall review, at least once each program year, the 
        education and training referral practices of any career center 
        that is operated by an entity that concurrently provides 
        education and training services to participants under this 
        title. If the substate grantee determines that such center has 
        engaged in a pattern of inappropriate referrals to the 
        education and training services provided by the operator of 
        such center, the substate grantee may terminate the agreement 
        to operate such center or may require such operator to cease 
        providing education and training services to participants under 
        this title as a condition for continuing to operate such 
        center.
    (d) On-Site Transition Centers.--In addition to the career centers 
established under this section, a substate grantee may use funds 
allocated to the substate area to establish temporary, on-site 
transition centers that meet the requirements described in section 
115(c)(2). Such centers may be established pursuant to grants, 
contracts, or other arrangements with the entities described in 
subsection (c)(2) of this section.

SEC. 119. SERVICES TO BE PROVIDED TO ELIGIBLE INDIVIDUALS.

    (a) In General.--Funds allocated to substate areas pursuant to 
section 101(d) may be used to provide--
            (1) basic reemployment services in accordance with 
        subsection (b);
            (2) intensive reemployment services in accordance with 
        subsection (c);
            (3) education and training services in accordance with 
        subsection (d);
            (4) retraining income support in accordance with subsection 
        (e);
            (5) supportive services in accordance with subsection (f); 
        and
            (6) supplemental wage allowances for older workers in 
        accordance with subsection (g).
    (b) Basic Reemployment Services.--Each career center established 
pursuant to this title shall make available to eligible individuals the 
following services:
            (1) Outreach and provision of information to make 
        individuals aware of, and encourage the use of, reemployment 
        and training services, including efforts to expand awareness of 
        training and placement opportunities for hard-to-serve 
        individuals such as those with limited English proficiency and 
        those with disabilities.
            (2) Intake and determination of eligibility for assistance 
        under this title.
            (3) Orientation to the information and services available 
        through such center.
            (4) Assistance in filing an initial claim for unemployment 
        compensation.
            (5) A preliminary assessment of the skill levels (including 
        appropriate testing) and service needs of such individuals, 
        which may include such factors as basic skills, occupational 
        skills, prior work experience, employability, interests, 
        aptitudes, and supportive service needs.
            (6) Information relating to local, regional and national 
        labor markets, including--
                    (A) job vacancy listings in such markets, and
                    (B) information relating to local occupations in 
                demand and the earnings and skill requirements for such 
                occupations.
            (7) Job search assistance, including resume and interview 
        preparation, and workshops.
            (8) Job referral and job placement assistance.
            (9) Information relating to education and job training 
        programs, including the eligibility requirements of and 
        services provided by such programs, the availability and 
        quality of such programs, and student financial assistance 
        available for such programs.
            (10) Assistance in evaluating whether such individuals are 
        likely to be eligible for any employment and training programs 
        administered by the Secretary other than this title.
            (11) Information collected pursuant to the performance 
        standards and quality assurance requirements of part C of this 
        title.
            (12) Information relating to programs and providers of 
        dependent care and other supportive services available in the 
        local area.
            (13) Group counseling, which may include peer counseling, 
        and which shall be available to such individuals jointly with 
        their immediate families, including group counseling relating 
        to stress management and financial management.
            (14) Soliciting and accepting job orders submitted by 
        employers in the substate area, and referring individuals in 
        accordance with such orders.
    (c) Intensive Reemployment Services.--
            (1) In general.--Each career center established pursuant to 
        this title shall make available, to eligible individuals who 
        have received basic reemployment services under subsection (b) 
        and have been unable to obtain employment through such 
        services, the following services:
                    (A) Comprehensive and specialized assessments of 
                the skill levels and service needs of individuals, 
                which may include--
                            (i) diagnostic testing and other assessment 
                        tools; and
                            (ii) in-depth interviewing and evaluation 
                        to identify employment barriers and appropriate 
                        employment goals.
                    (B) The development of an individual reemployment 
                plan, which shall identify the employment goal 
                (including, in appropriate circumstances, 
                nontraditional employment), appropriate achievement 
                objectives, and the appropriate combination of services 
                for a participant to achieve the employment goal.
                    (C) Individualized counseling and career planning, 
                including peer counseling and counseling and planning 
                relating to nontraditional employment opportunities.
                    (D) Case management for individuals receiving 
                education, training and supportive services.
                    (E) Job development.
                    (F) Out-of-area job search allowances.
                    (G) Relocation allowances.
                    (H) Assistance in the selection of education and 
                training providers.
                    (I) Assistance in obtaining income support for 
                which the individual is eligible, including student 
                financial assistance, to enable such individual to 
                participate in training.
                    (J) Followup counseling for individuals placed in 
                training or employment.
            (2) Additional conditions.--
                    (A) Reemployment plan.--
                            (i) Joint development.--The individual 
                        reemployment plan described in paragraph (1)(B) 
                        shall be developed jointly by the eligible 
                        individual and a career counselor. Both parties 
                        shall sign the plan and periodically review the 
                        progress of the individual in achieving the 
                        objectives set forth in the plan. In the event 
                        of a disagreement over the content of the plan, 
                        the eligible individual shall be provided an 
                        opportunity to appeal the career counselor's 
                        recommendation pursuant to section 164.
                            (ii) Employment goal.--The employment goal 
                        identified under an individual reemployment 
                        plan described under paragraph (1)(B) shall 
                        relate to employment in an occupation for which 
                        there is a demand in the local area, or in 
                        another area to which the individual is willing 
                        to relocate.
                            (iii) Prohibition on private actions.--
                        Nothing in this section shall be construed to 
                        establish a right for an individual to bring a 
                        private action to obtain the services described 
                        in the reemployment plan.
                    (B) Out-of-area job search allowance.--
                            (i) In general.--Out-of-area job search 
                        allowances provided under paragraph (1)(F) 
                        shall provide reimbursement to the individual 
                        of not more than 90 percent of the cost of 
                        necessary job search expenses, up to a maximum 
                        payment specified by the Secretary in 
                        regulations.
                            (ii) Criteria for granting job search 
                        allowances.--A job search allowance may be 
                        granted only--
                                    (I) to assist an eligible 
                                individual in securing a job within the 
                                United States; and
                                    (II) where the career center 
                                determines that such employee cannot 
                                reasonably be expected to secure 
                                suitable employment in the commuting 
                                area in which the worker resides.
                    (C) Relocation allowance.--
                            (i) In general.--Relocation allowances 
                        provided under paragraph (1)(G) may only be 
                        granted to assist an eligible individual in 
                        relocating within the United States and only if 
                        the career center determines that such 
                        employee--
                                    (I) cannot reasonably be expected 
                                to secure suitable employment in the 
                                commuting area in which the employee 
                                resides;
                                    (II) has obtained suitable 
                                employment affording a reasonable 
                                expectation of long-term duration in 
                                the area in which the employee wishes 
                                to relocate, or has obtained a bona 
                                fide offer of such employment, and
                                    (III) is totally separated from 
                                employment at the time relocation 
                                commences.
                            (ii) Amount of relocation allowance.--The 
                        amount of any relocation allowance for any 
                        eligible individual may not exceed an amount 
                        which is equal to the sum of--
                                    (I) 90 percent of the reasonable 
                                and necessary expenses, specified in 
                                regulations prescribed by the 
                                Secretary, incurred in transporting an 
                                individual and the individual's family, 
                                if any, and household effects, and
                                    (II) a lump sum equivalent to three 
                                times the employee's average weekly 
                                wage in the previous job, up to a 
                                maximum payment specified by the 
                                Secretary in regulations.
    (d) Education and Training.--
            (1) Available services.--Each career center shall make 
        available a list of eligible providers of--
                    (A) basic skills training, including remedial 
                education, literacy training, and English-as-a-second 
                language instruction;
                    (B) occupational skills training, provided either 
                in a classroom or on-the-job; and
                    (C) other skills-based education and training that 
                such center considers appropriate, which may include 
                entrepreneurial training and training in skills 
                required for high performance work organizations, such 
                as problem solving and skills related to the use of new 
                technologies.
            (2) Referrals.--An eligible individual who has an 
        individual reemployment plan developed pursuant to subsection 
        (c)(1)(B) that specifies education and training services as are 
        necessary to the reemployment of such individual shall, in 
        consultation with a career counselor, select a service provider 
        for such services from the list described in paragraph (1). The 
        career centers shall refer such individuals to such service 
        providers and arrange with the substate grantee for payment to 
        the provider for the services provided consistent with the 
        limitation contained in paragraph (5).
            (3) Eligible providers.--For the purposes of this title, an 
        eligible provider of education and training services is a 
        provider that meets the requirements of section 154.
            (4) Contract exceptions.--Education and training services 
        authorized under this title may be provided pursuant to a 
        contract for services between the substate grantee and an 
        eligible service provider in lieu of the referral procedures 
        described in paragraph (2) if such services--
                    (A) are customized by a provider to meet the 
                particular needs of a specific group of eligible 
                individuals in the substate area; or
                    (B) are on-the-job training provided by an 
                employer.
            (5) Cap on training.--
                    (A) Limitation.--The program under this title shall 
                not pay an amount in excess of $4,750 for the provision 
                of education and training to any individual under this 
                subsection over any twelve-month period.
                    (B) Relationship to student financial assistance.--
                            (i) For purposes of determining a student's 
                        need for grant, loan, or work assistance under 
                        title IV of the Higher Education Act of 1965, 
                        the funds provided to a participant for 
                        education and training under this subsection 
                        shall be considered to be estimated financial 
                        assistance not received under such title IV for 
                        the purpose of section 471 (3) of such Act.
                            (ii) Notwithstanding section 401(b) of such 
                        Act, the funds provided to a participant for 
                        education and training under this subsection 
                        shall be applied to reduce the student's cost 
                        of attendance (as defined in section 472 of 
                        such Act) prior to determining the amount of a 
                        student's Federal Pell Grant award under 
                        subpart 1 of part A of title IV of such Act, 
                        except that such reduction shall not result in 
                        a negative number.
                            (iii) Nothing in this Act shall be 
                        construed to modify the eligibility 
                        requirements applicable to students, programs 
                        of study, or institutions of higher education 
                        under title IV of such Act.
            (6) Limit on length of training.--No participant may 
        receive assistance from funds under this title for education or 
        training for more than one hundred and four weeks in a five-
        year period.
            (7) Approved training.--
                    (A) Relationship to income support program under 
                title ii.--For the purposes of the program authorized 
                under part A of title II, the career centers shall be 
                considered an agency certified by the Secretary to 
                develop a reemployment plan.
                    (B) Relationship to unemployment compensation.--An 
                eligible individual participating in education and 
                training services under this title shall be deemed to 
                be in training with the approval of the State agency 
                for the purposes of section 3304(a)(8) of the Internal 
                Revenue Code of 1986.
            (8) On-the-job training.--The provisions of paragraphs (5), 
        (6), and (7) shall not apply to on-the-job training provided 
        under this title. Such on-the-job training shall be provided 
        consistent with the limitations described in section 161(d).
    (e) Retraining Income Support.--
            (1) In general.--Eligible individuals receiving education 
        and training services pursuant to subsection (d) who meet the 
        requirements for receiving retraining income support under part 
        A of title II of this Act shall be referred to such program for 
        such support. For program years 1995 through 1999, individuals 
        who do not meet the requirements of such program but who do 
        meet the requirements of paragraph (2) shall, to the extent 
        appropriated funds are available, be provided retraining income 
        support in accordance with this subsection.
            (2) Eligibility.--An eligible individual shall, to the 
        extent appropriated funds are available, be provided retraining 
        income support in accordance with this subsection if such 
        individual--
                    (A) has been permanently laid off;
                    (B) either--
                            (i) had been continuously employed at the 
                        time of such permanent layoff for a period of 
                        one year or more, but less than three years, by 
                        the employer from whom such individual has been 
                        permanently laid off; or
                            (ii) was continuously employed in the same 
                        occupation and industry by an employer for a 
                        period of one year or more and was, within the 
                        preceding twelve-month period--
                                    (I) separated from such employer, 
                                and
                                    (II) employed in the same 
                                occupation and industry by the 
                                subsequent employer from whom such 
                                individual has been permanently laid 
                                off;
                    (C)(i) was entitled, as a result of the layoff 
                described in subparagraph (A), to (or would have been 
                entitled to if such individual had applied therefor) 
                unemployment compensation under any Federal or State 
                law for a week within the benefit period--
                            (I) in which the layoff took place, or
                            (II) which began (or would have begun) by 
                        reason of the filing of a claim for 
                        unemployment compensation by such individual 
                        after such layoff;
                    (ii) has exhausted all rights to any unemployment 
                compensation to which such individual was entitled (or 
                would have been entitled if such individual had applied 
                therefor); and
                    (iii) does not have an unexpired waiting period 
                applicable to such individual for such unemployment 
                compensation;
                    (D) has been enrolled in education or training 
                pursuant to subsection (d) by--
                            (i) the end of the sixteenth week after the 
                        permanent layoff described in subparagraph (A), 
                        or, if later, the end of the fourteenth week 
                        after such individual was informed that the 
                        layoff will exceed six months; or
                            (ii) a period that is not in excess of 
                        thirty days after the periods described in 
                        clause (i), in cases where the substate grantee 
                        determines, in accordance with guidelines 
                        issued by the Secretary, that there are 
                        extenuating circumstances that justify such 
                        extension, such as a cancellation of a course, 
                        a first available enrollment date that is after 
                        the periods described in subparagraph (A), or 
                        the commencement of negotiations for reopening 
                        a plant or facility from which an individual 
                        has been laid off; and
                    (E) is participating, and making satisfactory 
                progress, in education or training provided pursuant to 
                subsection (d).
            (3) Special rules.--
                    (A) Continuous employment.--
                            (i) For purposes of clause (ii) of 
                        paragraph (2)(B) and subject to the limitations 
                        of clause (ii) of this subparagraph, continuous 
                        employment shall be deemed to include any week 
                        in which an individual--
                                    (I) was on employer-authorized 
                                leave for purposes of vacation, 
                                sickness, injury or inactive duty or 
                                active duty military service for 
                                training,
                                    (II) was on employer-authorized 
                                leave because of circumstances 
                                described in subsection 102(a) of the 
                                Family and Medical Leave Act of 1993,
                                    (III) did not work because of a 
                                disability that is compensable under a 
                                worker's compensation law or plan of a 
                                State of the United States,
                                    (IV) had his, or her, employment 
                                interrupted in order to serve as a 
                                full-time representative of a labor 
                                organization in such firm or 
                                subdivision,
                                    (V) was on call-up for purposes of 
                                active duty in a reserve status in the 
                                Armed Forces of the United States, 
                                provided such active duty is ``Federal 
                                service'' as defined in section 
                                8521(a)(1) of title 5, United States 
                                Code, or
                                    (VI) was on temporary layoff.
                            (ii) For the purposes of clause (i), no 
                        more than the following number of weeks within 
                        a one-year period may be treated as weeks of 
                        employment:
                                    (I) Seven weeks in the case of 
                                weeks described in subclauses (I) or 
                                (IV) of clause (i), or both.
                                    (II) Twelve weeks in the case of 
                                weeks described in subclause (II) of 
                                clause (i).
                                    (III) Twenty-six weeks in the case 
                                of weeks described in subclauses (III) 
                                and (V) of clause (i).
                    (B) Same employer.--
                            (i) For the purposes of clause (ii) of 
                        paragraph (2)(B), employment deemed to be 
                        employment for a single employer shall 
                        include--
                                    (I) all employment that was covered 
                                by a multiemployer plan defined by 
                                section 4001(a)(3) of the Employee 
                                Retirement Income Security Act of 1974;
                                    (II) all employment that was 
                                obtained through a single hiring hall,
                                    (III) all employment for the 
                                employer from whom the individual was 
                                laid off or the predecessor of such 
                                employer, and
                                    (IV) all employment for employers 
                                in a joint employment relationship, as 
                                described in section 791.2(b) of title 
                                29 of the Code of Federal Regulations, 
                                with the individual.
                            (ii) For purposes of subclause (III) of 
                        clause (i), an employer shall be considered a 
                        predecessor of the employer from whom the 
                        individual was laid off (hereinafter referred 
                        to as successor employer) if--
                                    (I) the successor employer acquired 
                                substantially all the property used in 
                                a trade or business, or used in a 
                                separate unit of a trade or business, 
                                from such employer; and
                                    (II) the individual who was laid 
                                off was employed by such employer in 
                                such trade or business, or in a 
                                separate unit of such trade or 
                                business, immediately before the 
                                acquisition and was employed by the 
                                successor employer immediately after 
                                the acquisition.
                    (C) Individual treated as participating in 
                education or training program.--For purposes of 
                subparagraph (E) of paragraph (2), an individual shall 
                be treated as participating, and making satisfactory 
                progress, in an education or training program during 
                any week which is part of a break from training that 
                does not exceed twenty-eight days if the break is 
                provided under such program.
            (4) Weekly amount of payments.--The retraining income 
        support payment payable to an individual under this subsection 
        shall be an amount equal to the most recent benefit amount of 
        the unemployment compensation payable to such individual for a 
        week of total unemployment preceding such individual's first 
        exhaustion of unemployment compensation related to the 
        permanent layoff reduced (but not below zero) by--
                    (A) any training income support provided for such 
                week to such individual under another Federal program;
                    (B) income that is earned from employment that 
                exceeds one-half the amount equal to the most recent 
                weekly benefit amount of the unemployment compensation 
                payable to such individual for a week of total 
                unemployment.
            (5) Total amount of payments.--The maximum amount of 
        retraining income support payable to an individual under this 
        subsection shall be the amount which is the product of twenty-
        six multiplied by the retraining income support payable to the 
        individual for a week of total unemployment (as determined 
        under paragraph (4)), but such product shall be reduced by the 
        total sum of extended and additional compensation to which the 
        individual was entitled in the worker's first benefit period as 
        described in paragraph (2)(C).
            (6) Administration.--The substate grantee shall enter into 
        an agreement with the State agency charged with the 
        administration of the State unemployment compensation law under 
        which such agency will administer, on a cost-reimbursable 
        basis, the retraining income support payments authorized under 
        this subsection.
            (7) Career center role.--Each career center shall assist an 
        individual receiving education or training pursuant to 
        subsection (d) in applying for retraining income support under 
        either part A of title II of this Act or this subsection 
        depending on the program for which such individual is eligible. 
        If such individual is not eligible for either program and such 
        individual believes income support is necessary to enable 
        participation in training, the career center shall assist such 
        individual in applying for other appropriate sources of such 
        income support, including student financial aid.
            (8) Information dissemination.--The career centers shall 
        provide individuals determined eligible under this title with 
        information relating to the availability of retraining income 
        support and the requirements relating to eligibility for such 
        support. Such information shall include the provision, as soon 
        as is practicable, of information to such individuals 
        describing the time periods by which enrollment in education 
        and training must occur in order to be eligible for retraining 
        income support pursuant to paragraph (2)(D) of this subsection 
        and section 202 of this Act. In addition, the substate grantee 
        shall make arrangements with the State agency charged with the 
        administration of the State unemployment compensation law to 
        make such information generally available to claimants along 
        with other information describing the services available under 
        this title.
    (f) Supportive Services.--
            (1) In general.--Each career center shall make available to 
        an eligible individual, either through direct payment, payment 
        to a service provider, or arrangements through appropriate 
        agencies, such supportive services as are identified in such 
        individual's reemployment plan as necessary to enable such 
        individual to participate in intensive reemployment services or 
        education and training services.
            (2) Optional services.--Each career center may make 
        available to an eligible individual such supportive services as 
        such center determines is appropriate to enable such individual 
        to participate in basic reemployment services.
            (3) Services available.--The supportive services provided 
        pursuant to this subsection may include, but are not limited 
        to, transportation, dependent care, meals, health care, 
        temporary shelter, needs-related payments, drug and alcohol 
        abuse counseling and referral, family counseling, and other 
        similar services.
    (g) Supplemental Wage Allowance for Older Workers.--
            (1) In general.--An eligible individual may receive a 
        supplemental wage allowance in the amount specified in 
        paragraph (2) if--
                    (A) such individual is age fifty-five or older,
                    (B) such individual accepts full-time employment at 
                a weekly wage that is less than such individual's 
                preceding wage,
                    (C) such individual received basic reemployment 
                services provided under subsection (a) and was unable 
                to obtain employment with a higher wage than the 
                employment obtained pursuant to subparagraph (B), and
                    (D) such individual and a career center counselor 
                agree that participation in the supplemental wage 
                allowance is the most effective adjustment option 
                available to such individual.
            (2) Amount of allowance.--The supplemental wage allowance 
        payable to an eligible individual under this section with 
        respect to any week in which services are performed in such a 
        reemployment job shall be an amount that--
                    (A) is equal to three-quarters of the dif- ference 
                between--
                            (i) the weekly wage received for such week; 
                        and
                            (ii) an amount equal to 80 percent of the 
                        individual's average weekly wage in the 
                        preceding employment; but
                    (B) does not exceed 50 percent of the weekly 
                benefit amount of regular compensation under the State 
                unemployment compensation law payable to such 
                individual for a week of total unemployment.
            (3) Duration of allowances.--An eligible individual may 
        receive the supplemental wage allowance authorized under this 
        section for a period of up to fifty-two weeks.
            (4) Administration.--The substate grantee shall enter into 
        an agreement with the State agency charged with the 
        administration of the State unemployment compensation law under 
        which such agency will administer, on cost-reimbursable basis, 
        the supplemental wage allowances authorized under this 
        subsection.

SEC. 120. CERTIFICATES OF CONTINUING ELIGIBILITY.

    (a) In General.--A career center may issue a certificate of 
continuing eligibility for services under this title if such career 
center determines that--
            (1) such individual is eligible for services under section 
        103; and
            (2) such individual is accepting employment and such 
        employment is--
                    (A) at a wage significantly less than such 
                individual's previous wage; or
                    (B) in an occupation significantly different from 
                such individual's previous occupation.
    (b) Contents.--A certificate of continuing eligibility issued 
pursuant to subsection (a) shall specify a period of time not to exceed 
one hundred and four weeks that such individual shall remain eligible, 
not withstanding the requirements of section 103, for services under 
this title and for retraining income support payments under section 
119(e) and part A of title II of this Act.
    (c) Eligibility for Retraining Income Support.--With respect to the 
continuing eligibility of an individual receiving a certificate under 
this section for retraining income support--
            (1) the requirements relating to eligibility for 
        unemployment compensation under sections 119(e)(2)(C) and 
        202(a)(3) and to the weekly amount of such support under 
        section 119(e)(4) and part A of title II shall apply to such 
        individual's status at the time such individual receives a 
        certificate under this section and shall not apply to such 
        individual's status at the time of separation from subsequent 
        employment described in subsection (a)(2); and
            (2) the requirements relating to enrollment in training in 
        order to qualify for such income support shall remain 
        applicable except that the sixteen-week and fourteen-week 
        periods described in section 119(e)(2) and section 202(a)(4) 
        shall commence with such individual's separation from the 
        subsequent employment described in subsection (a)(2).
    (d) Limitation.--An individual may not receive a wage supplement 
authorized under section 119(g) after receiving a certificate of 
continuing eligibility under this section.

                PART B--FEDERAL SERVICE DELIVERY SYSTEM

SEC. 131. NATIONAL DISCRETIONARY GRANT PROGRAM.

    (a) Establishment.--The Secretary shall establish a program of 
national grants to address large scale economic dislocations that 
result from plant closures, base closures, or mass layoffs.
    (b) Projects and Services.--
            (1) In general.--The programs assisted under this section 
        shall be used to provide services of the type described in 
        section 119 in projects that relate to--
                    (A) industrywide dislocations;
                    (B) multistate dislocations;
                    (C) dislocations resulting from reductions in 
                defense expenditures;
                    (D) dislocations resulting from international 
                trade;
                    (E) dislocations resulting from environmental laws 
                and regulations, including the Clean Air Act and the 
                Endangered Species Act;
                    (F) dislocations affecting Native American tribal 
                entities; and
                    (G) other dislocations that result from special 
                circumstances or that State and local resources are 
                insufficient to address.
            (2) Community projects.--The Secretary may award grants 
        under this section for projects that provide comprehensive 
        planning services to assist communities in addressing and 
        reducing the impact of an economic dislocation.
            (3) On-site transition centers.--The Secretary may award 
        grants under this section to projects that establish on-site 
        transition centers meeting the requirements described in 
        section 115(c)(2)
    (c) Administration.--
            (1) Application.--To receive a grant under this section, an 
        eligible entity shall submit an application to the Secretary at 
        such time, in such manner, and accompanied by such information 
        as the Secretary determines is appropriate.
            (2) Eligible entities.--Grants under this section may be 
        awarded to--
                    (A) the State;
                    (B) the substate grantee;
                    (C) employers and employer associations;
                    (D) worker-management transition assistance 
                committees and other employer-employee entities;
                    (E) representatives of employees;
                    (F) community development corporations and 
                community-based organizations; and
                    (G) industry consortia.

SEC. 132. DISASTER RELIEF EMPLOYMENT ASSISTANCE.

    (a) General Authority.--
            (1) Qualification for funds.--Funds appropriated to carry 
        out this section shall be made available in a timely manner by 
        the Secretary to the Governor of any State within which is 
        located an area that has suffered an emergency or a major 
        disaster as defined in paragraphs (1) and (2), respectively, of 
        section 102 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (referred to in this section as the 
        ``disaster area'').
            (2) Substate allocation.--Not less than 80 percent of the 
        funds made available to any Governor under paragraph (1) shall 
        be allocated by the Governor to units of general local 
        government located, in whole or in part, within such disaster 
        areas. The remainder of such funds may be reserved by the 
        Governor for use, in concert with State agencies, in cleanup, 
        rescue, repair, renovation, and rebuilding activities 
        associated with such major disaster.
            (3) Coordination.--Funds made available under this section 
        to Governors and units of general local government shall be 
        expended in consultation with--
                    (A) agencies administering programs for disaster 
                relief provided under the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act; and
                    (B) the administrative entity and the private 
                industry council in each service delivery area within 
                which disaster employment programs will be conducted 
                under this part.
    (b) Use of Funds.--
            (1) Projects restricted to disaster areas.--Funds made 
        available under this section to any unit of general local 
        government in a disaster area--
                    (A) shall be used exclusively to provide employment 
                on projects to provide food, clothing, shelter, and 
                other humanitarian assistance for disaster victims and 
                on projects regarding demolition, cleanup, repair, 
                renovation, and reconstruction of damaged and destroyed 
                structures, facilities, and lands located within the 
                disaster area; and
                    (B) may be expended through public and private 
                agencies and organizations engaged in such projects.
            (2) Eligibility requirements.--Notwithstanding section 103, 
        an individual shall be eligible to be offered disaster 
        employment under this section if such individual is temporarily 
        or permanently laid off as a consequence of the disaster.
            (3) Limitations on disaster relief employment.--No 
        individual shall be employed under this part for more than six 
        months for work related to recovery from a single natural 
        disaster.
    (c) Definitions.--As used in this section, the term ``unit of 
general local government'' includes--
            (1) in the case of a community conducting a project in an 
        Indian reservation or Alaska Native village, the grantee 
        designated under subsection (c) or (d) or of section 401 of the 
        Job Training Partnership Act, or a consortium of such grantees 
        and the State; and
            (2) in the case of a community conducting a project in a 
        migrant or seasonal farmworker community, the grantee 
        designated under section 402(c) of the Job Training Partnership 
        Act, or a consortium of such grantees and the State.

SEC. 133. EVALUATION, RESEARCH, AND DEMONSTRATIONS.

    (a) Evaluation.--
            (1) In general.--The Secretary shall provide for the 
        continuing evaluation of programs conducted under this title, 
        including the cost-effectiveness of programs in achieving the 
        purposes of this title.
            (2) Techniques.--
                    (A) Methods.--Evaluations conducted under paragraph 
                (1) shall utilize recognized statistical methods and 
                techniques of the behavioral and social sciences, 
                including methodologies that control for self-
                selection, where feasible.
                    (B) Analysis.--Such evaluations may include cost 
                benefit analyses of programs, and analyses of the 
                impact of the programs on participants and the 
                community, the extent to which programs meet the needs 
                of various demographic groups, and the effectiveness of 
                the delivery systems used by the various programs.
                    (C) Effectiveness.--The Secretary shall evaluate 
                the effectiveness of programs authorized under this 
                title with respect to--
                            (i) the statutory goals;
                            (ii) the performance standards established 
                        by the Secretary; and
                            (iii) the extent to which such programs 
                        enhance the employment and earnings of 
                        participants, reduce income support costs, 
                        improve the employment competencies of 
                        participants in comparison to comparable 
                        persons who did not participate in such 
                        programs, and, to the extent feasible, increase 
                        the level of total employment over the level 
                        that would have existed in the absence of such 
                        programs.
    (b) Research.--
            (1) In general.--The Secretary shall establish a program of 
        research relating to addressing economic dislocation, 
        facilitating the transition of permanently laid off workers to 
        reemployment, and upgrading the skills of employed workers.
            (2) Mass layoff report.--The Secretary shall develop and 
        maintain statistical data relating to permanent layoffs and 
        plant closings. The Secretary shall publish a report based upon 
        such data, as soon as practicable, after the end of each 
        calendar year. Among the data to be included are--
                    (A) the number of such closings;
                    (B) the number of workers displaced;
                    (C) the location of the affected facilities; and
                    (D) the types of industries involved.
    (c) Demonstrations.--
            (1) In general.--The Secretary shall conduct a program of 
        demonstration projects to develop and improve the methods for 
        addressing economic dislocation and promoting workers 
        adjustment. Such program may include projects that--
                    (A) provide services to upgrade the skills of 
                employed workers who are at risk of being permanently 
                laid off; and
                    (B) assist in retraining employed workers in new 
                technologies and work processes that will facilitate 
                the conversion or restructuring of businesses into high 
                performance work organizations and avert plant closings 
                or substantial layoffs.
            (2) Limitation.--Each demonstration project conducted under 
        this subsection shall not exceed three years in duration.
            (3) Evaluation component.--The Secretary shall conduct or 
        provide for an evaluation of each of the projects carried out 
        pursuant to this subsection.

SEC. 134. CAPACITY BUILDING AND TECHNICAL ASSISTANCE.

    (a) In General.--The Secretary shall provide, through grants, 
contracts, or other arrangements, staff training and technical 
assistance to States, substate grantees, career centers, communities, 
business and labor organizations, service providers, industry 
consortia, and other entities, to enhance their capacity to develop and 
deliver effective adjustment assistance services to workers and to 
avert plant closings or substantial layoffs. Such assistance may 
include the development of management information systems, customized 
training programs, and the dissemination of computer-accessed learning 
systems.
    (b) Coordination.--The Secretary shall integrate the activities 
carried out pursuant to subsection (a) with the activities of the 
Capacity Building and Information and Dissemination Network established 
under section 453 of the Job Training Partnership Act.

SEC. 135. FEDERAL BY-PASS AUTHORITY.

    In the event that any State chooses not to participate in the 
program authorized under this title, the Secretary shall use the amount 
that would be allotted to such State under section 101(b) to provide 
for the delivery in that State of the programs, activities and services 
authorized under this title until such time as such State chooses to 
participate in the program.

      PART C--PERFORMANCE STANDARDS AND QUALITY ASSURANCE SYSTEMS

SEC. 151. CUSTOMER SERVICE COMPACT.

    The Secretary shall establish a process within each State, which 
shall include an annual meeting, to promote the development of a 
customer service compact among the parties administering the programs 
under this title. Such compact shall include an informal agreement 
between the Secretary, Governor, each substate grantee, and each career 
center relating to--
            (1) the shared goals and values that will govern the 
        administration of the program;
            (2) the respective roles and responsibilities of each party 
        in enhancing the provision of services to participants, 
        including ensuring that such services are tailored to the 
        particular needs of participants in each local area;
            (3) methods for ensuring that the satisfaction of 
        participants with the services received is a primary 
        consideration in the administration of the program; and
            (4) such other matters as the parties determine are 
        appropriate.

SEC. 152. PERFORMANCE STANDARDS.

    (a) In General.--The Secretary, after consultation with the 
Secretary of Education, Governors, substate grantees, and career 
centers, shall prescribe performance standards relating separately to 
the substate grantees and the career centers established under this 
title. Such standards shall be based on factors the Secretary 
determines are appropriate, which may include--
            (1) placement, retention and earnings of participants in 
        unsubsidized employment, including--
                    (A) earnings at six months or more after 
                termination from the program, and
                    (B) comparability of wages at a specified period 
                after termination from the program with wages prior to 
                participation in the program;
            (2) acquisition of skills pursuant to a skill standards and 
        skill certification system endorsed by the National Skill 
        Standards Board established under the Goals 2000: Educate 
        America Act;
            (3) satisfaction of participants and employers with 
        services provided and employment outcomes; and
            (4) the quality of services provided to hard-to-serve 
        populations, such as low income individuals and older workers.
    (b) Adjustments.--Each Governor shall, within parameters 
established by the Secretary and after consultation with substate 
grantees and career centers, prescribe adjustments to the performance 
standards prescribed under section (a) for the substate grantees and 
career centers established in the State based on--
            (1) specific economic, geographic and demographic factors 
        in the State and in substate areas within the State; and
            (2) the characteristics of the population to be served, 
        including the demonstrated difficulties in serving special 
        populations.
    (c) Failure To Meet Standards.--
            (1) Uniform criteria.--The Secretary shall establish 
        uniform criteria for determining whether a substate grantee or 
        career center fails to meet performance standards under this 
        section. Such criteria may not be modified more than once every 
        two years.
            (2) Technical assistance.--The Governor shall provide 
        technical assistance to substate grantees and career centers 
        failing to meet performance standards under the uniform 
        criteria established under paragraph (1).
            (3) Report on performance.--Each Governor shall include in 
        an annual report to the Secretary the final performance 
        standards and performance for each substate grantee and career 
        center within the State, along the technical assistance planned 
        and provided as required under paragraph (2).
            (4) Redesignation.--If a substate grantee or career center 
        continues to frail to meet such performance standards for two 
        consecutive program years, the Governor shall notify the 
        Secretary and the substate grantee or career center of the 
        continued failure, and shall--
                    (A) in the case of a substate grantee, terminate 
                the grant agreement and designate another entity as the 
                substate grantee consistent with the procedures 
                described in section 117(b)(2); and
                    (B) in the case of a career center, direct the 
                substate grantee to terminate the agreement to operate 
                such center and to select another entity as a career 
                center in accordance with the requirements of section 
                118.
            (5) Appeal.--A substate grantee or career center that is 
        the subject of a redesignation under paragraph (4) may, within 
        thirty days after receiving notice thereof, appeal to the 
        Secretary of Labor to rescind such action. The Secretary of 
        Labor shall issue a decision on the appeal within thirty days 
        of its receipt.
    (d) Incentive Grants.--From the funds reserved pursuant to section 
101(c)(1), the Governor of each State shall award incentive grants to 
the substate grantees and career centers in the State exceeding 
performance standards established under this section. Such grants shall 
be used by the substate grantees and career centers to enhance or 
expand the services provided under this title.

SEC. 153. CUSTOMER FEEDBACK.

    (a) Methods.--Each substate grantee shall establish methods for 
obtaining, on a regular basis, information from eligible individuals 
and employers who have received services through a career center 
regarding the effectiveness and quality of such services and of service 
providers. Such methods may include the use of surveys, interviews, and 
focus groups.
    (b) Analysis and Dissemination.--Each substate grantee shall 
analyze the information obtained pursuant to subsection (a) on a 
regular basis and provide a summary of such information accompanied by 
such analysis to the career center for use in improving the 
administration of the programs under this title and assisting 
participants in choosing from among eligible service providers.

SEC. 154. ELIGIBILITY REQUIREMENTS FOR PROVIDERS OF EDUCATION AND 
              TRAINING SERVICES.

    (a) Eligibility Requirements.--A provider of education and training 
services shall be eligible to receive funds under this title if such 
provider--
            (1) is either--
                    (A) eligible to participate in title IV of the 
                Higher Education Act of 1965, or
                    (B) determined to be eligible under the procedures 
                described in subsection (b); and
            (2) provides the performance-based information required 
        pursuant to subsection (c).
    (b) Alernative Eligibility Procedure.--(1) The Governor shall 
establish an alternative eligibility procedure for providers of 
education and training services in such State desiring to receive funds 
under this title but that are not eligible to participate in title IV 
of the Higher Education Act of 1965. Such procedure shall establish 
minimum acceptable levels of performance for such providers based on 
factors and guidelines developed by the Secretary, after consultation 
with the Secretary of Education. Such factors shall be comparable in 
rigor and scope to those provisions of part H of such title of such Act 
that are used to determine an institution of higher education's 
eligibility to participate in programs under such title as are 
appropriate to the type of provider seeking eligibility under this 
subsection and the nature of the education and training services to be 
provided.
    (2) Notwithstanding paragraph (1), if the participation of an 
institution of higher education in any of the programs under such title 
of such Act is terminated, such institution shall not be eligible to 
receive funds under this Act for a period of two years.
    (c) Performance-Based Information.--
            (1) Contents.--The Secretary, in consultation with the 
        Secretary of Education, shall identify performance-based 
        information that is to be submitted by providers of services 
        desiring to be eligible under this section. Such information 
        may include information relating to--
                    (A) the percentage of students completing the 
                programs conducted by the provider,
                    (B) the rates of licensure of graduates of the 
                programs conducted by the provider,
                    (C) the percentage of graduates of the programs 
                meeting skill standards and certification requirements 
                endorsed by the National Skills Standards Board 
                established under the Goals 2000: Educate America Act,
                    (D) the rates of placement and retention in 
                employment, and earnings of the graduates of the 
                programs conducted by the provider,
                    (E) the percentage of students who obtained 
                employment in an occupation related to the program 
                conducted by the provider, and
                    (F) the warranties or guarantees provided by such 
                provider relating to the skill levels or employment to 
                be attained by students.
            (2) Additions.--The Governor may, pursuant to the approval 
        of the Secretary, prescribe additional performance based 
        information that shall be submitted by providers pursuant to 
        this subsection.
    (d) Administration.--
            (1) State agency.--The Governor shall designate a State 
        agency to collect, verify, and disseminate the performance-
        based information submitted pursuant to paragraph (1).
            (2) Application.--A provider of education and training 
        services that desires to be eligible to receive funds under 
        this title shall submit the information required under 
        subsection (b) to the State agency designated under paragraph 
        (1) at such time and in such form as such State agency may 
        require.
            (3) List of eligible providers.--The State agency shall 
        compile a list of eligible providers, accompanied by the 
        performance-based information submitted, and disseminate such 
        list and information to the substate entities and career 
        centers within the State.
            (4) Accuracy of information.--
                    (A) In general.--If the State agency determines 
                that information concerning a provider is inaccurate, 
                such provider shall be disqualified from receiving 
                funds under this title for a period of two years, 
                unless such provider can demonstrate to the 
                satisfaction of the Governor or his or her designee, 
                that the information was provided in good faith.
                    (B) Appeal.--The Governor shall establish a 
                procedure for a service provider to appeal a 
                determination by a State agency that results in a 
                disqualification under subparagraph (A). Such procedure 
                shall provide an opportunity for a hearing and 
                prescribe appropriate time limits to ensure prompt 
                resolution of the appeal.
            (5) Assistance in developing information.--The State agency 
        established pursuant to paragraph (1) may provide technical 
        assistance to education and training providers in developing 
        the information required under subsection (b). Such assistance 
        may include facilitating the utilization of State 
        administrative records, such as unemployment compensation wage 
        records, and other appropriate coordination activities.
            (6) Consultation.--The Secretary shall consult with the 
        Secretary of Education regarding the eligibility of 
        institutions of higher education or other providers of 
        education and training to participate in programs under this 
        Act or under title IV of the Higher Education Act of 1965.
    (e) On-the-Job Training Exception.--
            (1) In general.--Providers of on-the-job training shall not 
        be subject to the requirements of subsections (a), (b), and 
        (c).
            (2) Collection and dissemination of information.--The 
        substate grantee shall collect such performance-based 
        information from on-the-job training providers as the Secretary 
        may require, and shall disseminate such information to the 
        career centers.

                      PART D--GENERAL REQUIREMENTS

SEC. 161. GENERAL REQUIREMENTS.

    Except as otherwise provided, the following conditions are 
applicable to all programs under this title:
    (a) Prohibition on Inducing Relocation of Establishments.--
            (1) No funds provided under this title shall be used or 
        proposed for use to encourage or induce the relocation, of an 
        establishment or part thereof, that results in a loss of 
        employment for any employee of such establishment at the 
        original location.
            (2) No funds provided under this title shall be used for 
        customized or skill training, on-the-job training, or company 
        specific assessments of job applicants or employees, for any 
        establishment or part thereof, that has relocated, until 120 
        days after the date on which such establishment commences 
        operations at the new location, if the relocation of such 
        establishment or part thereof, results in a loss of employment 
        for any employee of such establishment at the original 
        location.
            (3) If a violation of paragraph (1) or (2) is alleged, the 
        Secretary shall conduct an investigation to determine whether a 
        violation has occurred.
            (4) If the Secretary determines that a violation of 
        paragraph (1) or (2) has occurred, the Secretary shall require 
        the State, substate area, or substate grantee that has violated 
        paragraph (1) or (2) to--
                    (A) repay to the United States an amount equal to 
                the amount expended in violation of paragraph (1) or 
                (2), in accordance with subsections (d) or (e) of 
                section 174; and
                    (B) pay an additional amount equal to the amount 
                required to be repaid under subparagraph (A), unless 
                the State or substate grantee demonstrates to the 
                Secretary that it neither knew nor reasonably could 
                have known (after an inquiry undertaken with due 
                diligence) provided funds in violation of paragraph (1) 
                or (2).
            (5) Amounts received under paragraph (4)(B) shall be 
        deposited in a special account in the Treasury for use by the 
        Secretary for carrying out this title.
    (b) Special Programs.--Efforts shall be made to develop programs 
under this title which contribute to occupational development, upward 
mobility, development of new careers, and overcoming sex-stereotyping 
in occupations traditional for the other sex.
    (c) Joint Substate Agreements.--Any substate grantee may enter into 
an agreement or contract with another substate grantee to pay or share 
the cost of educating, training, or placing individuals participating 
in programs assisted under this Act, including the provision of 
supportive services.
    (d) On-the-Job Training.--(1) Payments to employers for on-the-job 
training under this title shall not, during the period of such 
training, average more than 50 percent of the wages paid by the 
employer to such participants, and payments in such amount shall be 
deemed to be in compensation for the extraordinary costs associated 
with training participants under this title and in compensation for the 
costs associated with the lower productivity of such participants.
    (2) On-the-job training authorized under this title for a 
participant shall be limited in duration to a period not in excess of 
that generally required for acquisition of skills needed for the 
position within a particular occupation, but in no event shall exceed 
six months, unless the total number of hours of such training is less 
than five hundred hours. In determining the period generally required 
for acquisition of the skills, consideration shall be given to 
recognized reference material (such as the Dictionary of Occupational 
Titles), the content of the training of the participant, the prior work 
experience of the participant, and the reemployment plan of the 
participant.
    (3)(A) Each on-the-job training contract shall--
            (i) specify the types and duration of on-the-job training 
        and the other services to be provided in sufficient detail to 
        allow for a fair analysis of the reasonableness of proposed 
        costs; and
            (ii) comply with the applicable requirements of section 
        174.
    (B) Each on-the-job training contract that is not directly 
contracted by a substate grantee with an employer (but instead is 
contracted through an intermediary brokering contractor) shall, in 
addition to meeting the requirements of subparagraph (A), specify the 
outreach, recruitment, participant training, counseling, placement, 
monitoring, followup, and other services to be provided directly by the 
brokering contractor within its own organization, the services to be 
provided by the employers conducting the on-the-job training, and the 
services to be provided, with or without cost, by other agencies and 
subcontractors.
    (C) If a brokering contractor enters into a contract with a 
subcontractor to provide training or other services, the brokering 
contractor shall ensure, through on-site monitoring, compliance with 
the subcontract terms prior to making payment to the subcontractor.
    (4) In accordance with regulations issued by the Secretary, on-the-
job training contracts under this title shall not be entered into with 
employers who have received payments under previous contracts and have 
exhibited a pattern of failing to provide on-the-job training 
participants with continued long-term employment as regular employees 
with wages and employment benefits (including health benefits) and 
working conditions at the same level and to the same extent as other 
employees working a similar length of time and doing the same type of 
work.
    (e) Prohibition on Fees.--No person or organization may charge an 
individual a fee for the placement or referral of such individual in or 
to a training program under this title.
    (f) Prohibition on Subsidized Employment.--No funds may be provided 
under this Act for any subsidized employment with any private for-
profit employer.
    (g) Retention of Program Income.--
            (1) Income under any program under this title administered 
        by a public or private nonprofit entity may be retained by such 
        entity only if used to continue to carry out the program.
            (2) Income subject to the requirements of paragraph (1) 
        shall include--
                    (A) receipts from goods or services (including 
                conferences) provided as a result of activities funded 
                under the title;
                    (B) funds provided to a service provider under the 
                title that are in excess of the costs associated with 
                the services provided; and
                    (C) interest income earned on funds received under 
                this title.
            (3) For the purposes of this subsection, each entity 
        receiving financial assistance under this title shall maintain 
        records sufficient to determine the amount of income received 
        and the purposes for which such income is expended.
    (h) Notification and Consultation Requirements.--The Secretary 
shall notify the Governor and the appropriate chief elected officials 
of, and consult with the Governor and such officials concerning, any 
activity to be funded by the Secretary under this title within the 
State or substate area; and the Governor shall notify the appropriate 
chief elected officials of, and consult with such concerning, any 
activity to be funded by the Governor under this title within the 
substate area.
    (i) Cooperative Agreements Between States.--In the event that 
compliance with provisions of this title would be enhanced by 
cooperative agreements between States, the consent of Congress is 
hereby given to such States to enter into such compacts and agreements 
to facilitate such compliance, subject to the approval of the 
Secretary.
    (j) Public Service Employment Prohibition.--Except as provided in 
section 132, no funds available under this title may be used for public 
service employment.
    (k) Prohibition on Employment Generating and Related Activities.--
Except for funds available to the Secretary to carry out section 132, 
no funds available under this Act shall be used for employment 
generating activities, economic development activities, investment in 
revolving loan funds, capitalization of businesses, investment in 
contract bidding resource centers, and similar activities, or for 
foreign travel.
    (l) Property.--The Federal requirements governing the title, use, 
and disposition of real property, equipment, and supplies purchased 
with funds provided under this Act shall be the Federal requirements 
generally applicable to Federal grants to States and local governments.

SEC. 162. BENEFITS.

    (a) In General.--Except as otherwise provided in this title, the 
following provisions shall apply to all activities financed under this 
title:
            (1) A participant under this title shall receive no 
        payments for training activities in which the participant fails 
        to participate without good cause.
            (2) Individuals in on-the-job training shall be compensated 
        by the employer at the same rates, including periodic 
        increases, as similarly situated employees or trainees and in 
        accordance with applicable law, but in no event less than the 
        higher of the rate specified in section 6(a)(1) of the Fair 
        Labor Standard Act of 1938 or the applicable State or local 
        minimum wage law.
            (3) Individuals employed in activities authorized under 
        this title shall be paid wages which shall not be less than the 
        highest of (A) the minimum wage under section 6(a)(1) of the 
        Fair Labor Standards Act of 1938, (B) the minimum wage under 
        the applicable State or local minimum wage law, or (C) the 
        prevailing rates of pay for individuals employed in similar 
        occupations by the same employer.
            (4) References in paragraphs (2) and (3) to section 6(a)(1) 
        of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1))--
                    (A) shall be deemed to be references to section 
                6(c) of that Act for individuals in the Commonwealth of 
                Puerto Rico;
                    (B) shall be deemed to be references to section 
                6(a)(3) of that Act for individuals in American Samoa; 
                and
                    (C) shall not be applicable for individuals in 
                other territorial jurisdictions in which section 6 of 
                the Fair Labor Standards Act of 1938 does not apply.
    (b) Income Disregard.--Allowances, earnings, and payments to 
individuals participating in programs under this title, except for 
payments under section 119(e), shall not be considered as income for 
the purposes of determining eligibility for and the amount of income 
transfer and in-kind aid furnished under any Federal or federally 
assisted program based on need, other than as provided under the Social 
Security Act.

SEC. 163. LABOR STANDARDS.

    (a) In General.--
            (1) Conditions of employment and training shall be 
        appropriate and reasonable in light of such factors as the type 
        of work, geographical region, and proficiency of the 
        participant.
            (2) Health and safety standards established under State and 
        Federal law, otherwise applicable to working conditions of 
        employees, shall be equally applicable to working conditions of 
        participants. With respect to any participant in a program 
        conducted under this title who is engaged in activities which 
        are not covered by health and safety standards under the 
        Occupational Safety and Health Act of 1970, the Secretary shall 
        prescribe, by regulation, such standards as may be necessary to 
        protect the health and safety of such participants.
            (3) To the extent that a State workers' compensation law is 
        applicable, workers' compensation benefits in accordance with 
        such law shall be available with respect to injuries suffered 
        by participants. To the extent that such law is not applicable, 
        each recipient of funds under this Act shall secure insurance 
        coverage for injuries suffered by such participants, in 
        accordance with regulations prescribed by the Secretary.
            (4) All individuals employed in subsidized jobs shall be 
        provided benefits and working conditions at the same level and 
        to the same extent as other employees working a similar length 
        of time and doing the same type of work.
            (5) No funds available under this title may be used for 
        contributions on behalf of any participant to retirement 
        systems or plans.
    (b) Displacement.--
            (1) No currently employed worker shall be displaced by any 
        participant (including partial displacement such as a reduction 
        in the hours of nonovertime work, wages, or employment 
        benefits).
            (2) No program under this title shall impair--
                    (A) existing contracts for services; or
                    (B) existing collective-bargaining agreements, 
                unless the employer and the labor organization concur 
                in writing with respect to any elements of the proposed 
                activities which affect such agreement, or either such 
                party fails to respond to written notification 
                requesting its concurrence within thirty days of 
                receipt thereof.
            (3) No participant shall be employed or job opening filled 
        (A) when any other individual is on layoff from the same or any 
        substantially equivalent job, or (B) when the employer has 
        terminated the employment of any regular employee or otherwise 
        reduced its work force with the intention of filling the 
        vacancy so created by hiring a participant whose wages are 
        subsidized under this title.
            (4) No jobs shall be created in a promotional line that 
        will infringe in any way upon the promotional opportunities of 
        currently employed individuals.
    (c) Organized Labor.--
            (1) Each recipient of funds under this title shall provide 
        to the Secretary assurances that none of such funds will be 
        used to assist, promote, or deter union organizing.
            (2) Any program conducted with funds made available under 
        this title which will provide services to members of a labor 
        organization will be established only after full consultation 
        with such organization.
            (3) Where a labor organization represents a substantial 
        number of employees who are engaged in similar work or training 
        in the same area as that proposed to be funded under this 
        title, an opportunity shall be provided for such organization 
        to submit comments with respect to such proposal.
    (d) Prevailing Wages.--All laborers and mechanics employed by 
contractors or subcontractors in any construction, alteration, or 
repair, including painting and decorating, of projects, buildings, and 
works which are federally assisted under this title shall be paid wages 
at rates not less than those prevailing on similar construction in the 
locality as determined by the Secretary in accordance with the Act of 
March 3, 1921 (40 U.S.C. 276a--276a-5), commonly known as the Davis-
Bacon Act. The Secretary shall have, with respect to such labor 
standards, the authority and functions set forth in Reorganization Plan 
Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267) and section 2 of the 
Act of June 1, 1934, as amended (48 Stat. 948, as amended; 40 U.S.C. 
276(c)). The provisions of this subsection shall not apply to a bona 
fide participant in a training program under this title. The provisions 
of section 177(a)(4) shall apply to such trainees.

SEC. 164. GRIEVANCE PROCEDURE.

    (a) In General.--Each substate grantee, career center, contractor, 
and grantee under this Act shall establish and maintain a grievance 
procedure for grievances or complaints about its programs and 
activities from participants, subgrantees, subcontractors, and other 
interested persons. Hearings on any grievance shall be conducted within 
thirty days of filing of a grievance and decisions shall be made not 
later than sixty days after the filing of a grievance. Except for 
complaints alleging fraud or criminal activity, complaints shall be 
made within one year of the alleged occurrence.
    (b) Grievance Procedure for Employers of Participants.--Each 
recipient of financial assistance under this title which is an employer 
of participants under this title shall continue to operate or establish 
and maintain a grievance procedure relating to the terms and conditions 
of employment.
    (c) Exhaustion of Grievance Procedure.--Upon exhaustion of the 
recipient's grievance procedure without decision, or where the 
Secretary has reason to believe that the recipient is failing to comply 
with the requirements of this title, the Secretary shall investigate 
the allegation or belief and determine within one hundred and twenty 
days after receiving the complaint whether such allegation or complaint 
is true.
    (d) Investigation by Secretary.--
            (1) If a person alleges a violation of section 163 and such 
        person exhausts the recipient's grievance procedure or the 
        sixty-day time period described in subsection (a) has elapsed 
        without a decision, either party to such procedure may submit 
        the grievance to the Secretary. The Secretary shall investigate 
        the allegations contained in the grievance and make a 
        determination as to whether a violation of section 163 has 
        occurred.
            (2) If the results of the investigation conducted pursuant 
        to paragraph (1) indicate that a modification or reversal of 
        the decision issued pursuant to the recipient's grievance 
        procedure is warranted, or the sixty-day time period described 
        in subsection (a) has elapsed without a decision, the Secretary 
        may modify or reverse the decision, or issue a decision if no 
        decision has been issued, as the case may be, after an 
        opportunity for a hearing in accordance with the procedures 
        under section 176.
            (3) If the Secretary determines that the decision issued 
        pursuant to the recipient's grievance procedure is appropriate, 
        the determination shall become the final decision of the 
        Secretary.
    (e) Binding Grievance Procedure.--
            (1) A person alleging a violation of section 163 may, as an 
        alternative to the procedures described in this section, submit 
        the grievance involving such violation to a binding grievance 
        procedure if a collective-bargaining agreement covering the 
        parties to the grievance so provides.
            (2) The remedies available under paragraph (1) shall be 
        limited to the remedies available under subsection (f)(1)(C) 
        and subsection (f)(2).
    (f) Remedies Available to Grievants.--
            (1) Except as provided in paragraph (2), remedies available 
        to grievants under this section for violations of section 163 
        shall be limited to--
                    (A) suspension or termination of payments under 
                this Act;
                    (B) prohibition of placement of a participant, for 
                an appropriate period of time, in a program under this 
                Act with an employer that has violated section 163, as 
                determined under subsection (d) or (e); and
                    (C) appropriate equitable relief (other than back 
                pay).
            (2) In addition to the remedies available under paragraph 
        (1), remedies available under this section for violations of 
        subsection (a)(4), paragraphs (1) and (3) of subsection (b), 
        and subsection (d) of section 163 may include--
                    (A) reinstatement of the grievant to the position 
                held by such grievant prior to displacement;
                    (B) payment of lost wages and benefits; and
                    (C) reestablishment of other relevant terms, 
                conditions, and privileges of employment.
    (g) Remedies Under Other Laws.--Nothing in subsection (f) shall be 
construed to prohibit a grievant from pursuing a remedy authorized 
under another Federal, State, or local law for a violation of section 
163.

                PART E--FISCAL ADMINISTRATIVE PROVISIONS

SEC. 171. PROGRAM YEAR.

    (a) Obligation of Funds.--Beginning with fiscal year 1995 and 
thereafter, appropriations for any fiscal year for programs and 
activities under this title shall be available for obligation only on 
the basis of a program year. The program year shall begin on July 1 in 
the fiscal year for which the appropriation is made.
    (b) Expenditure of Obligated Funds.--Funds obligated for any 
program year may be expended by each recipient during that program year 
and the two succeeding program years.

SEC. 172. PROMPT ALLOCATION OF FUNDS.

    (a) Publication of Formula Allocations and Allotments.--Whenever 
the Secretary allots and allocates funds required to be allotted or 
allocated by formula under this title, the Secretary shall publish in a 
timely fashion in the Federal Register the proposed amount to be 
distributed to each recipient.
    (b) Publication of Discretionary Allocation Formula.--Whenever the 
Secretary utilizes a formula to allot or allocate funds made available 
for distribution at the Secretary's discretion under this Act, the 
Secretary shall, not later than thirty days prior to such allotment or 
allocation, publish such formula in the Federal Register for comments 
along with the rationale for the formula and the proposed amounts to be 
distributed to each State and area. After consideration of any comments 
received, the Secretary shall publish final allotments and allocations 
in the Federal Register.

SEC. 173. MONITORING.

    (a) In General.--The Secretary is authorized to monitor all 
recipients of financial assistance under this title to determine 
whether they are complying with the provisions of this title and the 
regulations issued under this title.
    (b) Investigations.--The Secretary may investigate any matter the 
Secretary deems necessary to determine compliance with this title and 
regulations issued under this title. The investigations authorized by 
this subsection may include examining records (including making 
certified copies thereof), questioning employees, and entering any 
premises or onto any site in which any part of a program of a recipient 
is conducted or in which any of the records of the recipient are kept.
    (c) Witnesses and Documents.--For the purpose of any investigation 
or hearing under this Act, the provisions of section 9 of the Federal 
Trade Commission Act (15 U.S.C. 49) (relating to the attendance of 
witnesses and the production of books, papers, and documents) are made 
applicable to the Secretary.

SEC. 174. FISCAL CONTROLS; SANCTIONS.

    (a) In General.--
            (1) Each State shall establish such fiscal control and fund 
        accounting procedures as may be necessary to assure the proper 
        disbursal of, and accounting for, Federal funds paid to the 
        recipient under this title. Such procedures shall ensure that 
        all financial transactions are conducted and records maintained 
        in accordance with generally accepted accounting principles 
        applicable in each State.
            (2) The Secretary shall prescribe regulations establishing 
        uniform cost principles substantially equivalent to such 
        principles generally applicable to recipients of Federal grants 
        funds. At a minimum, such standards shall provide that, to be 
        allowable, costs must--
                    (A) be necessary and reasonable for proper and 
                efficient administration of the program under this 
                title;
                    (B) be allocable to the program under this title; 
                and
                    (C) not be a general expense required to carry out 
                the overall responsibilities of State or local 
                governments except as specifically provided by this 
                title.
            (3) The Governor, in accordance with minimum requirements 
        established by the Secretary in regulations, shall prescribe 
        and implement procurement standards to ensure fiscal 
        accountability and prevent fraud and abuse in programs 
        administered under this title. The Secretary, in establishing 
        such minimum requirements, shall consult with the Inspector 
        General of the Department of Labor and take into consideration 
        relevant aspects of the circulars issued by the Director of the 
        Office of Management and Budget. Such minimum requirements 
        shall include provisions to ensure that for States, substate 
        areas, and career centers--
                    (A) procurements shall be conducted in a manner 
                providing full and open competition;
                    (B) the use of sole source procurements shall be 
                minimized to the extent practicable, but in every case 
                shall be justified;
                    (C) procurements shall include an appropriate 
                analysis of the reasonableness of costs and prices;
                    (D) procurements shall not provide excess program 
                income (for nonprofit and government entities) or 
                excess profit (for private for-profit entities), and 
                that appropriate factors shall be utilized in 
                determining whether such income or profit is excessive, 
                such as--
                            (i) the complexity of the work to be 
                        performed;
                            (ii) the risk borne by the contractor; and
                            (iii) market conditions in the surrounding 
                        geographical area;
                    (E) procurements shall clearly specify deliverables 
                and the basis for payment;
                    (F) written procedures shall be established for 
                procurement transactions;
                    (G) no grantee, contractor, subgrantee, or 
                subcontractor shall engage in any conflict of interest, 
                actual or apparent, in the selection, award, or 
                administration of a contract or grant under this title;
                    (H) all grantees and subgrantees shall conduct 
                oversight to ensure compliance with procurement 
                standards; and
                    (I) procurement transactions between units of State 
                or local governments, shall be conducted on a cost 
                reimburseable basis.
            (4) The Governor shall annually conduct on-site monitoring 
        of each substate grantee within the State to ensure compliance 
        with the procurement standards established pursuant to 
        paragraph (3).
            (5) If the Governor determines that a substate grantee area 
        is not in compliance with the procurement standards established 
        pursuant to paragraph (3), the Governor shall--
                    (A) require corrective action to secure prompt 
                compliance; and
                    (B) impose the sanctions provided under subsection 
                (b) in the event of failure to take the required 
                corrective action.
            (6) The Governor shall biennially certify to the Secretary 
        that--
                    (A) the State has implemented the procurement 
                standards established under paragraph (3);
                    (B) the State has monitored substate grantees to 
                ensure compliance with the procurement standards as 
                required under paragraph (4); and
                    (C) the State has taken appropriate action to 
                secure compliance pursuant to paragraph (5).
            (7) If the Secretary determines that the Governor has not 
        fulfilled the requirements of this subsection, the Secretary 
        shall--
                    (A) require corrective action to secure prompt 
                compliance; and
                    (B) impose the sanctions provided under subsection 
                (f) in the event of failure of the Governor to take the 
                required corrective action.
    (b) Substantial Violations.--
            (1) If, as a result of financial and compliance audits or 
        otherwise, the Governor determines that there is a substantial 
        violation of a specific provision of this title or the 
        regulations under this title, and corrective action has not 
        been taken, the Governor shall impose a reorganization plan, 
        which may include--
                    (A) redesignating the substate grantee;
                    (B) prohibiting the use of designated service 
                providers;
                    (C) merging the substate area into 1 or more other 
                existing substate areas; or
                    (D) other such changes as the Secretary or Governor 
                determines necessary to secure compliance.
            (2)(A) The actions taken by the Governor pursuant to 
        paragraph (1)(A) may be appealed to the Secretary and shall not 
        become effective until--
                    (i) the time for appeal has expired; or
                    (ii) the Secretary has issued a decision.
            (B) The actions taken by the Governor pursuant to paragraph 
        (1)(B) may be appealed to the Secretary, who shall make a final 
        decision not later than sixty days of the receipt of the 
        appeal.
            (3) If the Governor fails to promptly take the actions 
        required under paragraph (1), the Secretary shall take such 
        actions.
    (c) Repayment of Funds.--Every recipient shall repay to the United 
States amounts found not to have been expended in accordance with this 
title. The Secretary may offset such amounts against any other amount 
to which the recipient is or may be entitled under this Act unless the 
Secretary determines that such recipient should be held liable pursuant 
to subsection (d). No such action shall be taken except after notice 
and opportunity for a hearing have been given to the recipient.
    (d) Liability for Repayment of Funds.--
            (1) Each recipient shall be liable to repay such amounts, 
        from funds other than funds received under this title, upon a 
        determination that the misexpenditures of funds was due to 
        willful disregard of the requirements of this title, gross 
        negligence, or failure to observe accepted standards of 
        administration. No such finding shall be made except after 
        notice and opportunity for a fair hearing.
            (2) In determining whether to impose any sanction 
        authorized by this section against a recipient for violations 
        by a subgrantee of such recipient under this title or the 
        regulations under this title, the Secretary shall first 
        determine whether such recipient has adequately demonstrated 
        that it has--
                    (A) established and adhered to an appropriate 
                system for the award and monitoring of contracts with 
                subgrantees which contains acceptable standards for 
                ensuring accountability;
                    (B) entered into a written contract with such 
                subgrantee which established clear goals and 
                obligations in unambiguous terms;
                    (C) acted with due diligence to monitor the 
                implementation of the subgrantee contract, including 
                the carrying out of the appropriate monitoring 
                activities (including audits) at reasonable intervals; 
                and
                    (D) taken prompt and appropriate corrective action 
                upon becoming aware of any evidence of a violation of 
                this Act or the regulations under this Act by such 
                subgrantee.
            (3) If the Secretary determines that the recipient has 
        demonstrated substantial compliance with the requirements of 
        paragraph (2), the Secretary may waive the imposition of 
        sanctions authorized by this section upon such recipient. The 
        Secretary is authorized to impose any sanction consistent with 
        the provisions of this title and any applicable Federal or 
        State law directly against any subgrantee for violation of this 
        Act or the regulations under this Act.
    (e) Emergency Termination of Financial Assistance.--In emergency 
situations, if the Secretary determines it is necessary to protect the 
integrity of the funds or ensure the proper operation of the program, 
the Secretary may immediately terminate or suspend financial 
assistance, in whole or in part, if the recipient is given prompt 
notice and the opportunity for a subsequent hearing within thirty days 
after such termination or suspension. The Secretary shall not delegate 
any of the functions specified in this subsection, other than to an 
officer whose appointment was required to be made by and with the 
advice and consent of the Senate.
    (f) Corrective Measures.--If the Secretary determines that any 
recipient under this title has discharged or in any other manner 
discriminated against a participant or against any individual in 
connection with the administration of the program involved, or against 
any individual because such individual has filed any complaint or 
instituted or caused to be instituted any proceeding under or related 
to this title, or has testified or is about to testify in any such 
proceeding or investigation under or related to this title, or 
otherwise unlawfully denied to any individual a benefit under the 
provisions of this title, or the Secretary's regulations, the Secretary 
shall, within thirty days, take such action or order such corrective 
measures, as necessary, with respect to the recipient or the aggrieved 
individual, or both.
    (g) Remedies Not Exclusive.--The remedies under this section shall 
not be construed to be exclusive remedies.

SEC. 175. REPORTS, RECORDKEEPING, AND INVESTIGATIONS.

    (a) Records.--
            (1) Recipients shall keep records that are sufficient to 
        permit the preparation of reports required by this title and to 
        permit the tracing of funds to a level of expenditure adequate 
        to insure that the funds have not been spent unlawfully.
            (2) Every recipient shall maintain such records and submit 
        such reports, in such form and containing such information, as 
        the Secretary requires regarding the performance of its 
        programs. Such records and reports shall be submitted to the 
        Secretary but shall not be required to be submitted more than 
        once each quarter unless specifically requested by the Congress 
        or a committee thereof.
            (3) In order to allow for the preparation of national 
        estimates necessary to meet the requirements of subsection (c), 
        recipients shall maintain standardized records for all 
        individual participants and provide to the Secretary a 
        sufficient number of such records to provide for an adequate 
        analysis.
            (4)(A) Except as provided in subparagraph (B), records 
        maintained by recipients pursuant to this subsection shall be 
        made available to the public upon request.
            (B) Subparagraph (A) shall not apply to--
                    (i) information, the disclosure of which would 
                constitute a clearly unwarranted invasion of personal 
                privacy; and
                    (ii) trade secrets, or commercial or financial 
                information, obtained from a person and privileged or 
                confidential.
            (C) Recipients may charge fees sufficient to recover costs 
        applicable to the processing of requests for records under 
        subparagraph (A).
    (b) Investigations.--
            (1)(A) In order to evaluate compliance with the provisions 
        of this title, the Secretary shall conduct, in several States, 
        in each fiscal year investigations of the use of funds received 
        by recipients under this title.
            (B) In order to insure compliance with the provisions of 
        this title, the Comptroller General of the United States may 
        conduct investigations of the use of funds received under this 
        title by any recipient.
            (2) In conducting any investigation under this title, the 
        Secretary or the Comptroller General of the United States may 
        not request the compilation of any new information not readily 
        available to such recipient.
            (3)(A) In carrying out any audit under this title (other 
        than any initial audit survey or any audit investigating 
        possible criminal or fraudulent conduct), either directly or 
        through grant or contract, the Secretary, the Inspector 
        General, or the Comptroller General shall furnish to the State, 
        substate grantee, recipient, or other entity to be audited, 
        advance notification of the overall objectives and purposes of 
        the audit, and any extensive recordkeeping or data requirements 
        to be met, not fewer than fourteen days (or as soon as 
        practicable), prior to the commencement of the audit.
            (B) If the scope, objectives, or purposes of the audit 
        change substantially during the course of the audit, the entity 
        being audited shall be notified of the change as soon as 
        practicable.
            (C) The reports on the results of such audits shall cite 
        the law, regulation, policy, or other criteria applicable to 
        any finding.
            (D) Nothing contained in this title shall be construed so 
        as to be inconsistent with the Inspector General Act of 1978 (5 
        U.S.C. App.) or government auditing standards issued by the 
        Comptroller General.
    (c) Responsibilities of Fund Recipients.--Each State, each substate 
grantee, each career center, and each recipient (other than a 
subrecipient, grantee or contractor of a recipient) receiving funds 
under this title shall--
            (1) make readily accessible reports concerning its 
        operations and expenditures as shall be prescribed by the 
        Secretary;
            (2) prescribe and maintain comparable management 
        information systems, in accordance with guidelines that shall 
        be prescribed by the Secretary, designed to facilitate the 
        uniform compilation, cross tabulation, and analysis of 
        programmatic, participant, and financial data, on statewide and 
        substate area bases, necessary for reporting, monitoring, and 
        evaluating purposes, including data necessary to comply with 
        section 177; and
            (3) monitor the performance of service providers in 
        complying with the terms of grants, contracts, or other 
        agreements made pursuant to this Act.
    (d) Retention of Records.--The Governor shall ensure that 
requirements are established for retention of all records pertinent to 
all grants awarded, and contracts and agreements entered into, under 
this title, including financial, statistical, property and participant 
records and supporting documentation. For funds allotted to a State for 
any program year, records shall be retained for two years following the 
date on which the annual expenditure report containing the final 
expenditures charged to such program year's allotment is submitted to 
the Secretary. Records for nonexpendable property shall be retained for 
a period of three years after final disposition of the property.
    (e) Financial Records.--Each State, substate grantee, and career 
center shall maintain records with respect to programs under this title 
that identify--
            (1) any program income or profits earned, including such 
        income or profits earned by subrecipients; and
            (2) any costs incurred (such as stand-in costs) that are 
        otherwise allowable except for funding limitations.

SEC. 176. ADMINISTRATIVE ADJUDICATION.

    (a) In General.--Whenever any applicant for financial assistance 
under this title is dissatisfied because the Secretary has made a 
determination not to award financial assistance in whole or in part to 
such applicant, the applicant may request a hearing before an 
administrative law judge of the Department of Labor. A similar hearing 
may also be requested by any recipient upon whom a corrective action or 
a sanction has been imposed by the Secretary. Except to the extent 
provided for in section 161(b), subsections (d) and (e) of section 164, 
or section 177, all other disputes arising under this title shall be 
adjudicated under grievance procedures established by the recipient or 
under applicable law other than this title.
    (b) Final Decisions.--The decision of the administrative law judge 
shall constitute final action by the Secretary unless, within twenty 
days after receipt of the decision of the administrative law judge, a 
party dissatisfied with the decision or any part thereof has filed 
exceptions with the Secretary specifically identifying the procedure, 
fact, law, or policy to which exception is taken. Any exception not 
specifically urged shall be deemed to have been waived. Thereafter the 
decision of the administrative law judge shall become the final 
decision of the Secretary unless the Secretary, within thirty days of 
such filing, has notified the parties that the case has been accepted 
for review.
    (c) Deadline for Review.--Any case accepted for review by the 
Secretary shall be decided within one hundred and eighty days of such 
acceptance. If not so decided, the decision of the administrative law 
judge shall become the final decision of the Secretary.
    (d) Applicable provisions.--The provisions of section 178 shall 
apply to any final action of the Secretary under this section.

SEC. 177. NONDISCRIMINATION.

    (a) In General.--
            (1) For the purpose of applying the prohibitions against 
        discrimination on the basis of age under the Age Discrimination 
        Act of 1975, on the basis of disability under section 504 of 
        the Rehabilitation Act, on the basis of sex under title IX of 
        the Education Amendments of 1972, or on the basis of race, 
        color, or national origin under title VI of the Civil Rights 
        Act of 1964, programs and activities funded or otherwise 
        financially assisted in whole or in part under this title are 
        considered to be programs and activities receiving Federal 
        financial assistance.
            (2) No individual shall be excluded from participation in, 
        denied the benefits of, subjected to discrimination under, or 
        denied employment in the administration of or in connection 
        with any such program because of race, color, religion, sex, 
        national origin, age, political affiliation or belief, or 
        status as a qualified individual with disabilities.
            (3) Participants shall not be employed on the construction, 
        operation, or maintenance of so much of any facility as is used 
        or to be used for sectarian instruction or as a place for 
        religious worship.
            (4) With respect to terms and conditions affecting, or 
        rights provided to, individuals who are participants in 
        activities supported by funds provided under this title, such 
        individuals shall not be discriminated against solely because 
        of their status as such participants.
            (5) Participation in programs and activities financially 
        assisted in whole or in part under this title shall be open to 
        citizens and nationals of the United States, lawfully admitted 
        permanent resident aliens, lawfully admitted refugees and 
        parolees, and other individuals authorized by the Attorney 
        General to work in the United States.
    (b) Failure To Comply.--Whenever the Secretary finds that a State 
or other recipient has failed to comply with a provision of law 
referred to in subsection (a)(1), with paragraph (2), (3), (4), or (5) 
of subsection (a), or with an applicable regulation prescribed to carry 
out such paragraphs, the Secretary shall notify such State or recipient 
and shall request it to comply. If within a reasonable period of time, 
not to exceed sixty days, the State or recipient fails or refuses to 
comply, the Secretary may--
            (1) refer the matter to the Attorney General with a 
        recommendation that an appropriate civil action be instituted;
            (2) exercise the powers and functions provided by title VI 
        of the Civil Rights Act of 1964, the Age Discrimination Act of 
        1975, or section 504 of the Rehabilitation Act, as may be 
        applicable; or
            (3) take such other action as may be provided by law.
    (c) Referral to Attorney General.--When a matter is referred to the 
Attorney General pursuant to subsection (b)(1), or whenever the 
Attorney General has reason to believe that a State or other recipient 
is engaged in a pattern or practice in violation of a provision of law 
referred to in subsection (a)(1) or in violation of paragraph (2), (3), 
(4), or (5) of subsection (a), the Attorney General may bring a civil 
action in any appropriate district court of the United States for such 
relief as may be appropriate, including injunctive relief.

SEC. 178. JUDICIAL REVIEW.

    (a) In General.--
            (1) With respect to any final order by the Secretary under 
        section 176 whereby the Secretary determines to award, to not 
        award, or to only conditionally award, financial assistance, 
        with respect to any final order of the Secretary under section 
        176, with respect to a corrective action or sanction imposed 
        under section 174, any party to a proceeding which resulted in 
        such final order may obtain review of such final order in the 
        United States Court of Appeals having jurisdiction over the 
        applicant or recipient of funds, by filing a review petition 
        within thirty days of such final order.
            (2) The clerk of the court shall transmit a copy of the 
        review petition to the Secretary, who shall file the record 
        upon which the final order was entered as provided in section 
        2112 of title 28, United States Code. Review petitions, unless 
        ordered by the court, shall not stay the Secretary's order. 
        Petitions under this title shall be heard expeditiously, if 
        possible within ten days of the filing of a reply brief.
            (3) No objection to the order of the Secretary shall be 
        considered by the court unless the objection shall have been 
        specifically and timely urged before the Secretary. Review 
        shall be limited to questions of law and the Secretary's 
        findings of fact shall be conclusive if supported by 
        substantial evidence.
    (b) Jurisdiction of the Court.--The court shall have jurisdiction 
to make and enter a decree affirming, modifying, or setting aside the 
order of the Secretary in whole or in part. The court's judgment shall 
be final, subject to certiorari review by the Supreme Court of the 
United States as provided in section 1254(1) of title 28, United States 
Code.

SEC. 179. ADMINISTRATIVE PROVISIONS.

    (a) Rules and Regulations.--The Secretary may, in accordance with 
chapter 5 of title 5, United States Code, prescribe such rules and 
regulations (including performance standards) as the Secretary deems 
necessary. Such rules and regulations may include adjustments 
authorized by section 204 of the Intergovernmental Cooperation Act of 
1968. All such rules and regulations shall be published in the Federal 
Register at least thirty days prior to their effective date. Copies of 
all such rules and regulations shall be transmitted to the appropriate 
committees of the Congress at the same time and shall contain, with 
respect to each material provision of such rules and regulations, 
citations to the particular substantive section of law which is the 
basis therefor.
    (b) Gifts.--The Secretary is authorized, in carrying out this 
title, to accept, purchase, or lease in the name of the department, and 
employ or dispose of in furtherance of the purposes of this title, any 
money or property, real, personal, or mixed, tangible or intangible, 
received by gift, devise, bequest, or otherwise, and to accept 
voluntary and uncompensated services notwithstanding the provisions of 
section 1342 of title 31, United States Code.
    (c) Authority To Expend Funds.--The Secretary may make such grants, 
contracts, or agreements, establish such procedures and make such 
payments, in installments and in advance or by way of reimbursement, or 
otherwise allocate or expend funds under this title as necessary to 
carry out this title, including (without regard to the provisions of 
section 4774(d) of title 10, United States Code) expenditures for 
construction, repairs, and capital improvements, and including 
necessary adjustments in payments on account of overpayments of 
underpayments.
    (d) Use of Services and Facilities.--The Secretary is authorized, 
in carrying out this title, under the same conditions applicable under 
section 179(c) or to the extent permitted by law other than this title, 
to accept and use the services and facilities of departments, agencies, 
and establishments of the United States. The Secretary is also 
authorized to accept and use the services and facilities of the 
agencies of any State or political subdivision of a State, with its 
consent.
    (e) Political Activities.--The Secretary shall not provide 
financial assistance for any program under this title which involves 
political activities.

SEC. 180. OBLIGATIONAL AUTHORITY.

    Notwithstanding any other provision of this title, no authority to 
enter into contracts or financial assistance agreements under this 
title shall be effective except to such extent or in such amount as are 
provided in advance in appropriation Acts.

SEC. 181. CRIMINAL PROVISIONS.

    Section 665 of title 18, United States Code, is amended by striking 
``or the Job Training Partnership Act'' each place it appears and 
inserting ``, the Job Training Partnership Act, or title I of the 
Reemployment Act of 1994''.

SEC. 182. REFERENCES.

    Effective on the date of enactment of this title, all references in 
any other statute other than this Act, and other than in section 665 of 
title 18, United States Code, to the Job Training Partnership Act shall 
be deemed to also refer to title I of the Reemployment Act of 1994.

                    PART F--MISCELLANEOUS PROVISIONS

SEC. 191. EFFECTIVE DATE.

    This title shall take effect on July 1, 1995.

SEC. 192. REPEALERS

    (a) In General.--The following programs shall terminate on July 1, 
1995:
            (1) the program authorized pursuant to sections 301-324 of 
        the Job Training Partnership Act, commonly referred to as 
        EDWAA;
            (2) the program authorized under section 325 of such Act, 
        commonly referred to as the Defense Conversion Adjustment 
        Program;
            (3) the program authorized under section 325A of such Act, 
        commonly referred to as the Defense Diversification Program; 
        and
            (4) the program authorized under section 326 of such Act, 
        commonly referred to as the Clean Air Employment Transition 
        Assistance Program.
    (b) Additional Program.--Part J of title IV and section 462(e) of 
the Job Training Partnership Act shall terminate on July 1, 1995.

SEC. 193. TRANSITION.

    The Secretary may establish such rules and procedures as may be 
necessary to provide for the orderly transition from the programs 
described in section 192(a) to the program authorized under this title.

  TITLE II--RETRAINING INCOME SUPPORT AND FLEXIBILITY IN UNEMPLOYMENT 
                              COMPENSATION

               PART A--RETRAINING INCOME SUPPORT PROGRAM

SEC. 201. ESTABLISHMENT.

    There is hereby established a retraining income support program to 
assist permanently laid-off individuals participating in long-term 
training programs.

SEC. 202. ELIGIBILITY REQUIREMENTS.

    (a) Tenured Workers.--For a week beginning after July 1, 1995, to 
the extent that funds are available in the account established by 
section 911 of the Social Security Act, payment of retraining income 
support shall be made to an individual who files an application for 
such support if the following conditions are met:
            (1) Such individual has been permanently laid off from such 
        individual's employer.
            (2) Except as specified in subsections (b) and (c), such 
        individual had been continuously employed at the time of the 
        permanent layoff for a period of three years or more by the 
        employer from whom such individual has been permanently laid 
        off.
            (3) Such individual--
                    (A) was entitled, as a result of the layoff 
                described in paragraph (1), to (or would have been 
                entitled to if such individual had applied therefor) 
                unemployment compensation under any Federal or State 
                law for a week within the benefit period in which the 
                layoff took place, or which began (or would have begun) 
                by reason of the filing of a claim for unemployment 
                compensation by such individual after such layoff;
                    (B) has exhausted all rights to any unemployment 
                compensation to which such individual was entitled (or 
                would have been entitled if such individual had applied 
                therefor); and
                    (C) does not have an unexpired waiting period 
                applicable to such individual for such unemployment 
                compensation.
            (4) Such individual is participating, and making 
        satisfactory progress, in an education or training program that 
        is part of a reemployment plan developed for such individual by 
        an agency certified by the Secretary of Labor to develop 
        reemployment plans, and has been enrolled in such program by--
                    (A) the end of the sixteenth week after the 
                permanent layoff, or, if later, the end of the 
                fourteenth week after such individual is aware that the 
                layoff is permanent,
                    (B) a period determined by the Secretary that is 
                not in excess of thirty days after the periods 
                described in subparagraph (A), in cases where under 
                guidelines issued by the Secretary it is determined 
                that there are extenuating circumstances that justify 
                such extension, such as a cancellation of a course, a 
                first available enrollment date that is after the 
                periods described in subparagraph (A), or the 
                commencement of negotiations for the reopening of the 
                plant or facility from which the individual has been 
                laid off, or
                    (C) the end of the sixteenth week after separation 
                from the subsequent employment described in section 120 
                of this Act in the case of an individual who has been 
                issued a certificate of continuing eligibility under 
                such section.
    (b) Trade-impacted Workers.--To the extent that funds are available 
in the account established by section 911 of the Social Security Act, 
payment of retraining income support shall be made to a permanently 
laid-off individual who has been determined to be an adversely affected 
worker covered by a certification issued under part D of this title and 
who files an application for such support for any week of unemployment 
which begins more than 60 days after the date on which the petition 
that resulted in such certification was filed, if the following 
conditions are met:
          (1) Such individual's layoff before his, or her, application 
        under this title occurred--
                    (A) on or after the impact date, as specified in 
                the certification under which such individual is 
                covered,
                    (B) before the expiration of the two-year period 
                beginning on the date on which the determination under 
                section 242 of this Act was made, and
                    (C) before the termination date (if any) determined 
                pursuant to paragraph 242(b)(3)(D) of this Act.
            (2) Such worker had, in the fifty-two-week period ending 
        with the week in which such layoff occurred, at least twenty-
        six weeks of employment at wages of $30 or more a week in 
        adversely affected employment with a single firm or subdivision 
        of a firm, or, if data with respect to weeks of employment with 
        a firm are not available, equivalent amounts of employment 
        computed under regulations prescribed by the Secretary. A week 
        that is considered to be a week of employment under subsection 
        (d) shall also be considered a week of employment for purposes 
        of this paragraph.
            (3) Such individual meets the conditions described in 
        paragraphs (3) and (4) of subsection (a).
    (c) Additional Eligibility Beginning in Fiscal Year 2000.--For a 
week beginning after September 30, 1999, in addition to individuals 
meeting the requirements of subsection (a), payment of retraining 
income support shall, to the extent that funds are available in the 
account established by section 911 of the Social Security Act, be made 
to an individual who--
            (1)(A) has been continuously employed at the time of the 
        permanent layoff for a period of one year or more, but less 
        than three years, by the employer from whom such individual has 
        been permanently laid off; or
            (B) was continuously employed in the same occupation and 
        industry by a single employer for a period of one year or more 
        and within the preceding twelve-month period was--
                    (i) separated from such employer, and
                    (ii) employed in the same occupation and industry 
                by a subsequent employer from whom such individual has 
                been permanently laid off; and
            (2) meets the conditions described in paragraphs (1), (3) 
        and (4) of subsection (a).
    (d) Continuous Employment.--(1) For purposes of this part and 
subject to the limitations of paragraph (2) of this subsection, 
continuous employment shall be deemed to include any week in which an 
individual--
            (A) was on employer-authorized leave for purposes of 
        vacation, sickness, injury or inactive duty or active duty 
        military service for training,
            (B) was on employer-authorized leave because of 
        circumstances described in subsection 102(a) of the Family and 
        Medical Leave Act of 1993,
            (C) did not work because of a disability that is 
        compensable under a worker's compensation law or plan of a 
        State or the United States,
            (D) had his, or her, employment interrupted in order to 
        serve as a full-time representative of a labor organization in 
        such firm or subdivision,
            (E) was on call-up for purposes of active duty in a reserve 
        status in the Armed Forces of the United States, provided such 
        active duty is ``Federal service'' as defined in 5 U.S.C. 
        8521(a)(1), or
            (F) was on temporary layoff.
    (2) Limitations.--For the purpose of paragraph (1) of this 
subsection, no more than the following number of weeks within a one-
year period may be treated as weeks of employment:
            (A) Seven weeks in the case of weeks described in 
        subparagraph (a) or (D) of paragraph (1), or both.
            (B) Twelve weeks in the case of weeks described in 
        paragraph (B) of paragraph (1).
            (C) Twenty-six weeks in the case of weeks described in 
        paragraphs (C) and (E) of paragraph (1).
    (e) Same Employer.--
            (1) In general.--For purposes of this part, employment 
        deemed to be employment for a single employer shall include--
                    (A) all employment on jobs that were covered by a 
                multiemployer plan defined by section 4001(a)(3) of the 
                Employee Retirement Income Security Act of 1974;
                    (B) all employment that was obtained through a 
                single hiring hall,
                    (C) all employment for the employer from whom the 
                individual was laid off or the predecessor of such 
                employer, and
                    (D) all employment for employers in a joint 
                employment relationship, as described in section 
                791.2(b) of title 29 of the Code of Federal 
                Regulations, with the individual.
            (2) Definition of predecessor.--For purposes of paragraph 
        (1)(C), an employer shall be considered a predecessor of the 
        employer from whom the individual was laid off (hereinafter 
        referred to as successor employer) if--
                    (A) the successor employer acquired substantially 
                all the property used in a trade or business, or used 
                in a separate unit of a trade or business, from such 
                employer; and
                    (B) the individual who was laid-off was employed by 
                such employer in such trade or business, or in a 
                separate unit of such trade or business, immediately 
                before the acquisition and was employed by the 
                successor employer immediately after the acquisition.
    (f) Individual Treated as Participating in Education or Training 
Program.--For purposes of this part, an individual shall be treated as 
participating, and making satisfactory progress, in an education or 
training program during any week which is part of a break from training 
that does not exceed twenty-eight days if the break is provided under 
such program.

SEC. 203. WEEKLY AMOUNTS.

    The retraining income support payable to a permanently laid-off 
individual for a week of training shall be an amount equal to the most 
recent weekly benefit amount of the unemployment compensation payable 
to such individual for a week of total unemployment preceding such 
individual's first exhaustion of unemployment compensation related to 
the permanent layoff reduced (but not below zero) by--
            (1) any training income support provided for such week to 
        such individual under another Federal program;
            (2) income that is earned from employment that exceeds one-
        half the amount equal to the most recent weekly benefit amount 
        of the unemployment compensation payable to such individual for 
        a week of total unemployment.

SEC. 204. LIMITATIONS ON RETRAINING INCOME SUPPORT.

    (A) Individuals With Three Years or More of Job Tenure.--
            (1) Maximum amount.--The maximum amount of retraining 
        income support payable to an individual under subsections (a) 
        and (b) of section 202 of this Act shall be the amount which is 
        the product of 52 multiplied by the retraining income support 
        payable to the individual for a week of total unemployment (as 
        determined under section 203), but such product shall be 
        reduced by the total sum of extended and additional 
        unemployment compensation to which the individual was entitled 
        (or would have been entitled had he applied therefor) in the 
        worker's first benefit period as described in section 
        202(a)(3)(A).
            (2) Period of availability.--
                    (A) Subject to the provisions of paragraph (B) of 
                this subsection, no retraining income support shall be 
                paid for any week occurring after the close of the one 
                hundred and four-week period that begins with the first 
                week following the week after the individual was 
                permanently laid off as described in section 202(a)(1) 
                of this Act.
                    (B) For the purpose of determining the one hundred 
                and four week period in subparagraph (A) of this 
                subsection, the period of time specified in a 
                certificate of continuing eligibility issued pursuant 
                under section 120 of this Act during which the 
                individual is employed in a job described by that 
                section shall not be counted.
    (b) Individuals With Less Than Three Years of Job Tenure.--
            (1) Maximum amount.--The maximum amount of retraining 
        income support payable to an individual under subsection 202(c) 
        this Act shall be the amount which is the product of twenty-six 
        multiplied by the retraining income support payable to the 
        individual for a week of total unemployment (as determined 
        under section 203), but such product shall be reduced by the 
        total sum of extended and additional unemployment compensation 
        to which the individual was entitled (or would have been 
        entitled had he applied therefore) in the worker's first 
        benefit period as described in section 202(a)(3)(A).
            (2) Period of availability.--
                    (A) Subject to the provisions of paragraph (B) of 
                this subsection, no retraining income support shall be 
                paid for any week occurring after the close of the 
                seventy-eight-week period that begins with the first 
                week following the week after the individual was 
                permanently laid off as described in paragraph (1) 
                section 202(a) of this Act.
                    (B) For the purpose of determining the seventy-
                eight-week period in paragraph (A) of this subsection, 
                the period of time specified in a certificate of 
                continuing eligibility issued pursuant under section 
                120 of this Act during which the individual is employed 
                in a job described by that section shall not be 
                counted.
    (c) Weeks During Which Individual Received On-the-Job Training.--No 
retraining income support shall be paid to an individual under this 
part for any week during which the individual is receiving on-the-job 
training.
    (d) Coordination With Extended Benefits Program.--Notwithstanding 
any other provision of this Act or other Federal law, if the benefit 
year of an individual ends within an extended benefit period, the 
number of weeks of extended benefits that such worker would, but for 
this subsection, be entitled to an extended benefit period shall be 
reduced (but not below zero) by the number of weeks for which the 
individual was entitled, during such benefit year, to retraining income 
support under this Act. For purposes of this subsection, the terms 
``benefit year'' and ``extended benefit period'' shall have the same 
respective meanings given to them in the Federal-State Extended 
Unemployment Compensation Act of 1970.

SEC. 205. AGREEMENTS WITH STATES.

    (A) Agreement Requirements.--
            (1) The Secretary is authorized on behalf of the United 
        States to enter into an agreement with any State, or with any 
        State agency (referred to in this part as ``cooperating 
        States'' and ``cooperating States agencies'' respectively). 
        Under such an agreement, the cooperating State agency (A) will 
        receive applications for, and will provide, payments on the 
        basis provided in this part, (B) will provide information to 
        each applicant describing the time periods by which enrollment 
        in education must in order to be eligible for retraining income 
        support pursuant to section 202 of this Act, (C) will provide 
        for a system of voluntary withholding of Federal individual 
        income tax for all individuals receiving retraining income 
        support and (D) will otherwise cooperate with the Secretary and 
        with other Federal agencies in providing payments under this 
        part.
            (2) Each agreement under this part shall provide the terms 
        and conditions upon which the agreement may be amended, 
        suspended, or terminated.
    (b) Determinations.--A determination by a cooperating State agency 
with respect to eligibility for retraining income support under this 
part is subject to review in the same manner and to the same extent as 
determinations under the applicable State law and only in that manner 
and to that extent.
    (c) Surety Bonds.--Any agreement under this part may require any 
officer or employee of the State certifying payments or disbursing 
funds under the agreement or otherwise participating in the performance 
of the agreement, to give a surety bond to the United States in such 
amount as the Secretary may deem necessary, and may provide for the 
cost of such bond from funds for carrying out the purposes of this 
part.

SEC. 206. ADMINISTRATION ABSENT STATE AGREEMENT.

    (a) In General.--In any State where there is no agreement in force 
between a State or its agency under section 205 of this Act, the 
Secretary shall arrange, under prescribed regulations, for performance 
of all necessary functions under this part, including provisions for a 
fair hearing for any individual whose application for payments has been 
denied.
    (b) Judicial Review.--A final determination under subsection (a) 
with respect to eligibility for retraining income support under this 
part is subject to review by the courts in the same manner and to the 
same extent as is provided by section 205(g) of the Social Security 
Act.

SEC. 207. LIABILITIES OF CERTIFYING AND DISBURSING OFFICERS.

    (a) Certifying Officers.--No person designated by the Secretary, or 
designated pursuant to an agreement under this part, as a certifying 
officer, shall, in the absence of gross negligence or intent to defraud 
the United States, be liable with respect to any payment certified by 
him under this part.
    (b) Disbursing Officers.--No disbursing officer shall, in the 
absence of gross negligence or intent to defraud the United States, be 
liable with respect to any payment by him, or her, under this part if 
it was based upon a voucher signed by a certifying officer designated 
as provided in subsection (a).

SEC. 208. FRAUD AND RECOVERY OF OVERPAYMENTS.

    (a) In General.--
            (1) If a cooperating State agency, the Secretary, or a 
        court of competent jurisdiction determines that any person has 
        received any payment under this part to which the person was 
        not entitled, including a payment referred to in subsection 
        (b), such person shall be liable to repay such amount to the 
        State agency or the Secretary, as the case may be, except that 
        the State agency or the Secretary may waive such repayment if 
        such agency or the Secretary determines, in accordance with 
        guidelines prescribed by the Secretary, that--
                    (A) the payment was made without fault on the part 
                of such individual, and
                    (B) requiring such repayment would be contrary to 
                equity and good conscience.
            (2) Unless an overpayment is otherwise recovered, or waived 
        under paragraph (1), the State agency or the Secretary shall 
        recover the overpayment by deductions from any sum payable to 
        such person under this part, under any Federal unemployment 
        compensation law administered by the State agency or the 
        Secretary, or under any other Federal law administered by the 
        State agency or the Secretary, which provides for the payment 
        of assistance or an allowance with respect to unemployment, 
        and, notwithstanding any other provision of State law or 
        Federal law to the contrary, the Secretary may require the 
        State agency to recover any overpayment under this part by 
        deduction from any unemployment compensation payable to such 
        person under the State law, except that no single deduction 
        under this paragraph shall exceed 50 percent of the amount 
        otherwise payable.
    (b) Disbarment.--If a cooperating State agency, the Secretary, or a 
court of competent jurisdiction determines that an individual--
            (1) knowingly has made, or caused another to make, a false 
        statement or representation of a material fact, or
            (2) knowingly has failed, or caused another to fail, to 
        disclose a material fact, and as a result of such false 
        statement or representation, or of such nondisclosure, such 
        individual has received any payment under this part to which 
        the individual was not entitled,
such individual shall in addition to any other penalty provided by law, 
be ineligible for any further payments under this part.
    (c) Final Determination.--Except for overpayments determined by a 
court of competent jurisdiction, no repayment may be required, and no 
deduction may be made, under this section until a determination under 
subsection (a)(1) by the State agency or the Secretary, as the case may 
be, has been made, notice of the determination and opportunity for a 
fair hearing thereon has been given to the individual concerned, and 
the determination has become final.
    (d) Amount Recovered.--Any amount recovered under this section 
shall be returned to the Retraining Income Support Account established 
under section 911 of the Social Security Act.

SEC. 209. PENALTIES.

    Whoever makes a false statement of a material fact knowing it to be 
false, or knowingly fails to disclose a material fact, for the purpose 
of obtaining or increasing any payment authorized to be furnished under 
this part or pursuant to an agreement under section 105 shall be fined 
not more than $1,000 or imprisoned for not more than one year, or both. 
Nothing in this section shall supersede any other applicable provisions 
of title 18 of the United States Code.

SEC. 210. DEFINITIONS.

    For purpose of this part:
            (1) The term ``State'' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, and the Virgin Islands.
            (2) The term ``State agency'' means the agency of the State 
        which administers the State law.
            (3) The term ``State law'' means the unemployment 
        compensation law of the State approved by the Secretary of 
        Labor under section 3304 of the Internal Revenue Code of 1986.
            (4) The term ``applicable State law'' means the State law 
        of the State in which the individual filed, and became 
        eligible, for unemployment compensation.
            (5) The term ``unemployment compensation'' means the 
        unemployment compensation payable to an individual under any 
        State law or Federal unemployment compensation law, including 
        chapter 85 of title 5, United States Code, and the Railroad 
        Unemployment Insurance Act.
            (6) The term ``week'' means a week as defined in the 
        applicable State.
            (7) The term ``benefit period'' means, with respect to an 
        individual--
                    (A) the benefit year and any ensuing period, as 
                determined under the applicable State law, during which 
                the individual is eligible for regular compensation, 
                additional compensation, or extended compensation, or
                    (B) the equivalent to such a benefit year or 
                ensuing period provided for under the applicable 
                Federal unemployment compensation law.
            (8) The term ``on-the-job'' training means training 
        provided by the employer to an individual who performs services 
        for remuneration for the employer.
            (9) The term ``Secretary'' means the Secretary of Labor.
            (10) The term ``permanently laid off'' means a layoff under 
        which a recall is not expected within twenty-six weeks.
            (11) The term ``extended unemployment compensation'' means 
        compensation (including compensation payable pursuant to 
        chapter 85 of title 5) payable for weeks of unemployment 
        beginning in an extended benefit period to an individual under 
        those provisions of a State law which satisfy the requirements 
        of the Federal-State Extended Unemployment Compensation Act of 
        1970 with respect to the payment of extended compensation.
            (12) The term ``additional compensation'' means 
        compensation payable by reason of conditions of high 
        unemployment or other special factors to individuals who have 
        exhausted their unemployment compensation.

SEC. 211. REGULATIONS.

    The Secretary shall prescribe such regulations as may be necessary 
to carry out the provisions of this part.

SEC. 212. EFFECTIVE DATE.

    The provisions of this part shall take effect on July 1, 1995.

               PART B--RETRAINING INCOME SUPPORT ACCOUNT

SEC. 221. ESTABLISHMENT OF RETRAINING INCOME SUPPORT ACCOUNT.

    Title IX of the Social Security Act is amended by adding after 
section 910 the following section:

                  ``retraining income support account

    ``Sec. 911. (a) Establishment of Account.--There is hereby 
established in the Unemployment Trust Fund a Retraining Income Support 
Account. For the purposes provided for in section 904(e), such account 
shall be maintained as a separate book account.
    ``(b) Transfers to Account.--
            ``(1) Transfer of tax receipts.--The Secretary of the 
        Treasury shall transfer (as of the close of each month) from 
        the employment security administration account to the 
        retraining income support account established by subsection (a) 
        an amount equal to one fifth of the tax collected under section 
        3301 of the Internal Revenue Code of 1986, (exclusive of any 
        increased revenue that is the result of a loss of the tax 
        credit permitted under subsections (a) or (b) of section 3302 
        of the Internal Revenue Code of 1986 or a tax credit reduction 
        under paragraphs (2) or (3) of subsection 3302(c) of such code) 
        and covered into the Treasury.
            ``(2) Limitation on transfers.--The amount transferred 
        pursuant to paragraph (1) in the following fiscal years shall 
        not exceed the amounts listed in the following table:

    Fiscal year:
                                                                 Amount
                Fiscal year 1996.....................      $350,000,000
                Fiscal year 1997.....................      $500,000,000
                Fiscal year 1998.....................      $550,000,000
                Fiscal year 1999.....................      $580,000,000
                Fiscal year 2000.....................     $920,000,000.
            ``(3) Appropriation of funds.--All funds transferred to the 
        retraining income support account established by subsection (a) 
        are hereby appropriated for the purpose of transfer to the 
        States pursuant to subsection (c).
    ``(c) Transfers to States.--
            ``(1) Amounts in the retraining income support account 
        shall be available for transfer to States which have an 
        agreement described in section 205 of the Reemployment Act of 
        1994.
            ``(2) The Secretary of Labor shall from time to time 
        certify to the Secretary of the Treasury for transfer to each 
        State that has an agreement described in section 205 of the 
        Reemployment Act of 1994 the sums necessary to enable such 
        State to make payments provided by section 202 of such Act. The 
        Secretary of the Treasury, prior to audit or settlement by the 
        General Accounting Office, shall make payment to the State in 
        accordance with such certification.
            ``(3) Amounts transferred to a State under paragraph (2) 
        shall be used only in the payment of cash benefits to 
        individuals with respect to their retraining income support 
        provided by section 202 of the Reemployment Act of 1994; and 
        money so received by a State which is not used for such 
        payments shall be returned, at the time specified in the 
        agreement entered into under section 205 of such Act, to the 
        Secretary of the Treasury for deposit in the Retraining Income 
        Support Account established under subsection (a). Nothing in 
        this paragraph shall be construed to prohibit deducting an 
        amount from retraining income support otherwise payable to an 
        individual and using the amount so deducted to pay for either 
        health insurance or the withholding of Federal individual 
        income tax if the individual elected to have such deduction 
        made and, in the case of a deduction for health insurance, such 
        deduction was made under a program approved by the Secretary of 
        Labor.
    ``(d) Repayment.--Whenever the Secretary of the Treasury (after 
consultation with the Secretary of Labor) determines that the amount 
transferred to a State under subsection (c) exceeds the amount 
necessary to meet the anticipated payments for retraining income 
support from the account, the Secretary of the Treasury shall demand of 
that State the amount of such excess, which shall be returned to the 
Retraining Income Support Account established under subsection (a).''.

SEC. 222. FUNDS FOR ADMINISTRATION.

    (a) Subparagraph (A) of section 901(c)(1) of the Social Security 
Act is amended by--
            (1) striking ``and'' at the end of clause (ii);
            (2) adding ``and'' at the end of clause (iii); and
            (3) adding at the end thereof the following:
                    ``(iv) assisting the States in the administration 
                of cash benefits for retraining income support under 
                section 202 of the Reemployment Act of 1994.''
    (b) Subparagraph (B) of section 901(c)(1) of the Social Security 
Act is amended by--
            (1) striking ``and'' at the end of clause (iv);
            (2) adding ``and'' at the end of clause (v); and
            (3) adding at the end thereof the following:
                    ``(vi) title II of the Reemployment Act of 1994.''
    (c) Section 901(c)(2) of the Social Security Act is amended by--
            (1) striking ``and'' at the end of subparagraph (B);
            (2) adding ``and'' at the end of subparagraph (C); and
            (3) adding at the end thereof the following:
                    ``(D) title II of the Reemployment Act of 1994.''

SEC. 223. CONFORMING AMENDMENTS.

    (a) Subparagraph (B) of section 905(b)(1) of the Social Security 
Act is amended to read as follows:
                    ``(B) the sum of the payments and transfers during 
                such month from the employment security administration 
                account pursuant to section 901(b) and (d) and section 
                911(b).''.
    (b) Section 3302(c)(3) of the Internal Revenue Code of 1986 is 
amended by--
            (1) striking ``or'' at the end of subparagraph (A);
            (2) adding at the end of subparagraph (B) the following:
                    ``(C) entered into an agreement described in 
                section 205 of the Reemployment Act of 1994, with the 
                Secretary of Labor before July 1, 1995, or
                    ``(D) fulfilled its commitments under an agreement 
                described in section 205 of the Reemployment Act of 
                1994.''.

SEC. 224. EFFECTIVE DATE.

    The provisions of this part, and the amendments made by this part, 
shall take effect on October 1, 1995.

                      PART C--FINANCING PROVISIONS

SEC. 231. MODIFICATIONS TO FEDERAL UNEMPLOYMENT TAX.

    (a) In General.--Section 3301 of the Internal Revenue Code of 1986 
(relating to the rate of Federal unemployment tax) is amended to read 
as follows:

``SEC. 3301. RATE OF TAX.

    There is hereby imposed on every employer (as defined in section 
3306(a)) for each calendar year an excise tax, with respect to having 
individuals in his employ, equal to 6.2 percent of the total wages (as 
defined in section 3306(b)) paid by him during the calendar year with 
respect to unemployment (as defined in section 3306(c)).''.
    (b) Effective Date.--The provisions of this section shall take 
effect on the date of enactment of this Act.

SEC. 232. VOLUNTARY WITHHOLDING OF FEDERAL INDIVIDUAL INCOME TAX.

    (a) Authority for Withholding.--Section 3402 of the Internal 
Revenue Code of 1986 is amended by adding at the end thereof the 
following new paragraph:
    ``(t) Voluntary Withholding on Unemployment and Other Benefits.--
For purposes of this chapter, amounts subject to tax under section 
85(a), and amounts provided as retraining income support under section 
202 of the Reemployment Act of 1994, shall be treated as if they were a 
payment of wages by an employer to an employee subject to withholding 
at a rate of 15 percent of the amount paid, if the person to whom the 
benefits are paid so elects. For purposes of this chapter, these 
amounts will be treated as wages to the extent paid during the period 
for which the election remains in effect. The election shall be made in 
such form and manner as the Secretary may provide.''.
    (b) Additional Requirement for Approval of State Law.--Section 
3304(a) of the Internal Revenue Code is amended by adding at the end 
thereof the following new paragraph:
            ``(19) provides for a system for the deduction and 
        withholding of Federal individual income tax from unemployment 
        compensation where an individual receiving such compensation 
        voluntarily requests such deduction and withholding.''.
    (c) Conforming Amendments.--
            (1) Subparagraph (C) of section 3304(a)(4) of the Internal 
        Revenue Code of 1986 is amended by inserting after ``health 
        insurance'' the following: ``, or the withholding of Federal 
        individual income tax,''.
            (2) Paragraph (5) of section 303(a) of the Social Security 
        Act is amended by inserting after ``health insurance'' the 
        following: ``, or the withholding of Federal individual income 
        tax,''.
    (d) Effective Date.--The provisions of this section and the 
amendments made by this section shall take effect on January 1, 1996.

 PART D--INTEGRATION OF TRADE-IMPACTED WORKERS INTO THE COMPREHENSIVE 
                          REEMPLOYMENT SYSTEM

SEC. 241. PHASEOUT OF TRADE ADJUSTMENT ASSISTANCE PROGRAM.

    (a) Phaseout.--Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 
preceding note) is amended by striking subsection (c) and inserting the 
following:
    ``(c) No technical assistance may be provided under chapter 3, 
after September 30, 1998.
    ``(d)(1) Except as provided in paragraph (2), no assistance may be 
provided under chapter 2 (including subchapter D of such chapter) on or 
after July 1, 1995.
    ``(2) Nothwithstanding paragraph (1), if, on or before June 30, 
1995, an individual--
            ``(A) is receiving assistance under chapter 2 (including 
        subchapter D of such chapter), and
            ``(B) is otherwise eligible to receive assistance in 
        accordance with the requirements of such chapter, such worker 
        shall continue to be eligible to receive such assistance for 
        any week for which the worker meets the eligibility 
        requirements of the section under which the initial eligibility 
        was determined.''.
    (b) Effective Date.--The provisions of this section shall take 
effect on the date of enactment of this Act.

SEC. 242. TEMPORARY PROGRAM FOR THE CERTIFICATION OF TRADE-IMPACTED 
              WORKERS.

    (a) Establishment of Transitional Certification Program.--In order 
to promote the effective integration of trade-impacted workers into the 
comprehensive system of worker reemployment and retraining income 
support, there is established within the Department of Labor a 
temporary, transitional certification program.
    (b) Components of Certification Program.--
            (1) Group eligibility requirements.--The Secretary shall 
        certify a group of workers (including workers in any 
        agricultural firm or subdivision of an agricultural firm) as 
        eligible for services under title I of this Act and eligible to 
        apply for retraining income support in accordance with section 
        202(b) of this Act if the Secretary determines--
                    (A) that a significant number of proportion of the 
                workers in such workers' firm or an appropriate 
                subdivision of the firm have been laid off, or are 
                threatened to become laid off,
                    (B) that sales or production, or both, of such firm 
                or subdivision have decreased absolutely, and
                    (C) that increases of imports of articles like or 
                directly competitive with articles produced by such 
                workers' firm or an appropriate subdivision thereof 
                contributed importantly to the layoffs, or threat 
                thereof, and to such decline in sales or production.
            (2) For purposes of subsection (a)(3)--
                    (A) the term ``contributed importantly'' means a 
                cause which is important but not necessarily more 
                important than any other cause;
                    (B) any firm, or appropriate subdivision of a firm, 
                that engages in exploration or drilling for oil or 
                natural gas shall be considered to be a firm producing 
                oil or natural gas; and
                    (C) any firm, or appropriate subdivision of a firm, 
                that engages in exploration or drilling for oil or 
                natural gas, or otherwise produces oil or natural gas, 
                shall be considered to be producing articles directly 
                competitive with imports of oil and with imports of 
                natural gas.
            (2) Petitions.--A petition for a certification of 
        eligibility for services under title I of this Act and 
        eligibility to apply for retraining income support in 
        accordance with section 202(b) of this Act may be filed with 
        the Secretary by a group of workers (including workers in any 
        agricultural firm or subdivision of an agricultural firm) or by 
        their certified or recognized union or other duly authorized 
        representative. Upon receipt of the petition, the Secretary 
        shall promptly publish notice in the Federal Register that such 
        petition has been received and an investigation has begun.
            (3) Determination by secretary of labor.--
                    (A) Certification of eligibility.--As soon as 
                possible after the date on which a petition is filed 
                under paragraph (2), but in any event not later than 
                sixty days after that date, the Secretary shall 
                determine whether the petitioning group meets the 
                requirements of paragraph (1) and shall issue a 
                certification of eligibility for services under title I 
                of this Act and to apply for retraining income support 
                in accordance with section 202(b) of this Act. Each 
                certification shall specify the date on which the 
                layoffs began or threatened to begin.
                    (B) Workers covered by certification.--A 
                certification under this section shall not apply to any 
                worker whose last layoff from the firm or appropriate 
                subdivision of the firm before his application under 
                paragraph (2) occurred more than one year before the 
                date of the petition on which such certification was 
                granted.
                    (C) Publication of determination in federal 
                register.--Upon reaching a determination on a petition, 
                the Secretary shall promptly publish a summary of the 
                determination in the Federal Register together with the 
                reasons for making such determinations.
                    (D) Termination of certification.--Whenever the 
                Secretary determines, with respect to any certification 
                of eligibility of the workers of a firm or subdivision 
                of the firm, that layoffs from such firm or subdivision 
                are no longer attributable to the conditions specified 
                in paragraph (1), the Secretary shall terminate such 
                certification and promptly have notice of such 
                termination published in the Federal Register together 
                with the reasons for making such determination. Such 
                termination shall apply only with respect to layoffs 
                occurring after the termination date specified by the 
                Secretary.
            (4) Subpoena power.--
                    (A) Subpoena by secretary.--The Secretary may 
                require by subpoena the attendance of witnesses and the 
                production of evidence necessary for him to make a 
                determination under the provisions of this section.
                    (B) Court order.--If a person refuses to obey a 
                subpoena issued under subparagraph (A), a United States 
                district court within the jurisdiction of which the 
                relevant proceeding under this section conducted may, 
                upon petition by the Secretary, issue an order 
                requiring compliance with such subpoena.
    (c) Effective Date.--Petitions for certification under this section 
may be filed on or after July 1, 1995, but not later than July 1, 1999.

             PART E--UNEMPLOYMENT COMPENSATION FLEXIBILITY

SEC. 251. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS.

    (a) General Rule.--Section 3306 of the Internal Revenue Code of 
1986 is amended by adding at the end thereof the following new 
subsection:
    ``(u) Short-Time Compensation Program.--For purposes of this 
chapter, the term `short-time compensation program' means a program 
under which--
            ``(1) the participation of an employer is voluntary;
            ``(2) an employer reduces the number of hours worked by 
        employees in lieu of temporary layoffs;
            ``(3) such employees whose workweeks have been reduced by 
        at least 10 percent are eligible for unemployment compensation;
            ``(4) the amount of unemployment compensation payable to 
        any such employee is a pro rata portion of the unemployment 
        compensation which would be payable to the employee if such 
        employee were totally unemployed;
            ``(5) such employees are not required to meet the 
        availability for work or work search test requirements while 
        collecting short-time compensation benefits, but are required 
        to be available for their normal workweek;
            ``(6) eligible employees may participate in an employer-
        sponsored training program to enhance jobs skills if such 
        program has been approved by the State agency;
            ``(7) the State agency may require an employer to continue 
        to provide health benefits, and retirement benefits under a 
        defined benefit pension plan (as defined in section 3(35) of 
        the Employee Retirement Income Security Act of 1974), to any 
        employee whose workweek is reduced pursuant to the program as 
        though the workweek of such employee had not been reduced;
            ``(8) the State agency may require an employer (or an 
        employers' association which is party to a collective 
        bargaining agreement) to submit a written plan describing the 
        manner in which the requirements of this subsection will be 
        implemented and containing such other information as the 
        Secretary of Labor determines is appropriate; and
            ``(9) the program meets such other requirements as the 
        Secretary of Labor determines are appropriate.''.
    (b) Conforming Amendments.--
            (1) Subparagraph (E) of section 3304(a)(4) of such Code is 
        amended to read as follows:
                    ``(E) amounts may be withdrawn for the payment of 
                short-time compensation under a short-time compensation 
                program (as defined under section 3306(u));''.
            (2) Paragraph (4) of section 3306(f) of such Code is 
        amended to read as follows:
            ``(4) amounts may be withdrawn for the payment of short-
        time compensation under a short-time compensation program (as 
        defined under subsection (u));''.
            (3) Section 303(a)(5) of the Social Security Act is amended 
        by striking ``the payment of short-time compensation under a 
        plan approved by the Secretary of Labor'' and inserting ``the 
        payment of short-time compensation under a short-time 
        compensation program (as defined in section 3306(u) of the 
        Internal Revenue Code of 1986).''.

SEC. 252. TREATMENT OF REEMPLOYMENT BONUS PROGRAMS.

    (a) General Rule.--Section 3306 of the Internal Revenue Code of 
1986 is amended by adding at the end thereof the following new 
subsection:
    ``(v) Reemployment Bonus Program.--For purposes of this chapter, 
the term `reemployment bonus program' means a program under which--
            ``(1) a reemployment bonus is paid in a lump sum to 
        individuals who meet the requirements of paragraph (4) as an 
        incentive to rapid reemployment;
            ``(2) the reemployment bonus payable to individuals 
        pursuant to paragraph (1) is in an amount not in excess of four 
        times the weekly amount of regular unemployment compensation 
        payable to such individuals;
            ``(3) an amount equal to the amount of the reemployment 
        bonuses paid pursuant to paragraph (1) is charged against the 
        amount that may be paid to such individuals for regular 
        unemployment compensation under State law;
            ``(4) individuals may receive the reemployment bonus 
        described in paragraph (1) if such individuals--
                    ``(A) were eligible to receive unemployment 
                compensation under the State law for the week preceding 
                the commencement of full-time employment obtained in 
                accordance with subparagraph (C);
                    ``(B) were identified pursuant to a State profiling 
                system (established in accordance with section 303(j) 
                of the Social Security Act) as individuals likely to 
                exhaust regular unemployment compensation;
                    ``(C) obtained full-time employment within a period 
                of time specified under State law, but not in excess of 
                twelve weeks from the date of the filing of the initial 
                claim;
                    ``(D) are employed by employers other than the 
                employers by whom such individuals were employed 
                immediately prior to receiving unemployment 
                compensation under the State law or during the base 
                period;
                    ``(E) retained full-time employment for a period 
                not less than four months after obtaining employment in 
                accordance with subparagraph (C);
            ``(5) the program does not result in any cost to the 
        Unemployment Trust Fund (established by section 904(a) of the 
        Social Security Act) in excess of the cost that would be 
        incurred by such State and charged to such Fund if the State 
        had not participated in such program;
            ``(6) a State desiring to conduct such program submits a 
        plan describing the manner in which the requirements of this 
        subsection will be implemented and the Secretary of Labor 
        approves such plan; and
            ``(7) the program meets such other requirements as the 
        Secretary of Labor determines to be appropriate.''.
    (b) Conforming Amendments.--
            (1) Paragraph (4) of section 3304(a) of such Code is 
        amended by adding at the end thereof the following new 
        subparagraph:
                    ``(G) amounts may be withdrawn for the payment of 
                reemployment bonuses under a reemployment bonus program 
                (as defined in section 3306(v);''.
            (2) Subsection (f) of section 3306 of such Code is amended 
        by adding at the end thereof the following new paragraph:
            ``(6) amounts may be withdrawn for the payment of 
        reemployment bonuses under a reemployment bonus program (as 
        defined in subsection (v));''.
            (3) Section 303(a)(5) of the Social Security Act is amended 
        by adding at the end thereof: ``: Provided further, That 
        amounts may be withdrawn for the payment of reemployment 
        bonuses under a reemployment bonus program (as defined in 
        section 3306(v) of the Internal Revenue Code of 1986); and''.

SEC. 253. EXTENSION OF SELF-EMPLOYMENT ASSISTANCE PROGRAM.

    (a) Extension of Program.--Paragraph (2) of Section 507(e) of the 
North American Free Trade Agreement Implementation Act is hereby 
repealed.
    (b) Conforming Amendments.--Subsection (e) of section 507 of such 
Act is further amended by--
            (1) amending the heading after the subsection designation 
        to read ``Effective Date.--'', and
            (2) striking ``(1) Effective Date.--''.

SEC. 254. EFFECTIVE DATE.

    This part, and the amendments made by this part, shall take effect 
on the date of enactment of this Act.

                TITLE III--ONE-STOP CAREER CENTER SYSTEM

SEC. 301. STATEMENT OF PURPOSE.

    It is the purpose of this title to--
            (1) establish a national program of grants and waivers of 
        Federal statutory and regulatory requirements to provide the 
        States with the opportunity, on a voluntary basis, to develop 
        and implement networks of one-stop career centers;
            (2) provide seed money to encourage the development of a 
        flexible, nationwide system of one-stop career centers;
            (3) promote universal access, by individuals and employers, 
        to a comprehensive menu of quality employment, education and 
        training information and services;
            (4) encourage a customer-centered approach to the provision 
        of services, including features to enhance customer choice and 
        ensure that the satisfaction of individuals with services 
        received is a primary consideration in the administration of 
        the program;
            (5) establish a governance structure composed of State, 
        local and Federal partners to ensure common goals, effective 
        planning, service coordination and oversight of statewide one-
        stop career center networks; and
            (6) provide the States and local areas with increased 
        flexibility in the administration of employment and training 
        programs in exchange for greater accountability for outcomes.

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

SEC. 311. GENERAL REQUIREMENTS.

    For purposes of receiving a grant or waiver under this title 
(except as provided in section 333(b)(1)(A)), a one-stop career center 
system shall include--
            (1) the establishment and operation of a workforce 
        investment board in accordance with section 312;
            (2) the establishment of one-stop career centers in 
        accordance with the procedures described in section 313;
            (3) the provision of services through the one-stop career 
        centers in accordance with section 314;
            (4) the participation of Federal programs in accordance 
        with section 315;
            (5) agreements concerning the operation of the one-stop 
        career centers in accordance with section 316;
            (6) quality assurance systems in accordance with section 
        317; and
            (7) the establishment and operation of a State Human 
        Resource Investment Council in accordance with section 318.

SEC. 312. WORKFORCE INVESTMENT BOARDS.

    (a) Designation of One-stop Service Area.--
            (1) The Governor shall, after consultation with the State 
        Human Resource Investment Council, designate one-stop service 
        areas within the State.
            (2) The one-stop service areas designated pursuant to 
        paragraph (1) shall be--
                    (A) the geographic boundaries of the labor market 
                areas within the State, except that no service delivery 
                area or substate area may be divided among two or more 
                areas;
                    (B) the substate areas or consortium of such areas; 
                or
                    (C) the service delivery areas or consortium of 
                such areas.
            (3) the Governor may not redesignate one-stop service areas 
        more frequently than once every four years.
    (b) Establishment of Boards.--
            (1) In general.--For each one-stop service area designated 
        under subsection (a), the local elected officials from such 
        area shall establish a workforce investment board that meets 
        the requirements of this subsection.
            (2) Composition.--Each workforce investment board shall 
        consist of--
                    (A) representatives of private sector employers, 
                who shall constitute a majority of the board and who 
                shall be owners of business concerns, chief executives 
                or chief operating officers of businesses, or the chief 
                manager of a plant or subdivision of a firm;
                    (B) representatives of organized labor and 
                community-based organizations, who shall constitute not 
                less than 25 percent of the membership of the board and 
                who shall be officers of such organizations;
                    (C) representatives of educational institutions;
                    (D) appropriate community leaders, such as leaders 
                of economic development agencies, human service 
                agencies and institutions, veterans organizations, and 
                entities providing job training; and
                    (E) a local elected official, who shall be a 
                nonvoting member.
            (3) Nominations.--
                    (A) Employer representatives.--(i) The 
                representatives of employers under paragraph (2)(A) 
                shall be selected from among individuals nominated by 
                general purpose business organizations after consulting 
                with, and receiving recommendations from, other 
                business organizations in the one-stop service area.
                    (ii) For the purposes of this subparagraph, the 
                term ``general purpose business organizations'' means 
                organizations which admit to membership any for-profit 
                business operating within the one-stop service area.
                    (B) Labor representatives.--The representatives of 
                organized labor under paragraph (2)(B) shall be 
                selected from individuals recommended by recognized 
                State and local labor federations. If the State or 
                local labor federation fails to nominate a sufficient 
                number of individuals to be appointed for such 
                category, individual workers may be included on the 
                board as labor representatives.
                    (C) Elected official.--In any case in which there 
                are two or more units of general local government in 
                the one-stop service area, the local elected officials 
                of such units shall determine which official shall be 
                appointed to the board.
                    (D) Other members.--The members of the board 
                appointed to represent community-based organizations 
                under paragraph (2)(B), educational institutions under 
                paragraph (2)(C), and the community leaders appointed 
                under paragraph (2)(D) shall be selected from 
                individuals recommended by interested organizations.
            (4) Appointment process.--(A)(i) In any case in which there 
        is only one unit of general local government within the one-
        stop service area, the chief elected official of that unit 
        shall appoint members to the board from the individuals 
        nominated or recommended under paragraph (3).
            (ii) In any case in which there are two or more such units 
        of general local government in the one-stop service area, the 
        chief elected officials of such units shall appoint members to 
        the board from the individuals so nominated or recommended in 
        accordance with an agreement entered into by such units of 
        general local government. In the absence of such an agreement, 
        the appointments shall be made by the Governor from the 
        individuals so nominated or recommended.
            (B) The number of members of the board shall be initially 
        determined--
                    (i) by the chief elected official in the case 
                described in subparagraph (A)(i),
                    (ii) by the chief elected officials in accordance 
                with the agreement in the case described in 
                subparagraph (A)(ii), or
                    (iii) by the Governor in the absence of such 
                agreement.
        Thereafter, the number of members of the board shall be 
        determined by the board.
            (C) Members shall be appointed for fixed and staggered 
        terms and may serve until their successors are appointed. Any 
        vacancy in the membership of the board shall be filled in the 
        same manner as the original appointment. Any member of the 
        board may be removed for cause in accordance with procedures 
        established by the board.
            (5) Chairperson.--Each workforce investment board shall 
        elect a chairperson, by a majority vote of the members of the 
        board, from among members of the board who are not the local 
        elected official or heads of public agencies. The term of the 
        chairperson shall be determined by the board.
            (6) Staff.--The chairperson of each workforce investment 
        board shall appoint staff, who are not concurrently on the 
        staff of any participating program, to assist such board in 
        carrying out the functions prescribed in this section. Such 
        staff may include an executive director.
            (7) Conflict of interest.--No member of a workforce 
        investment board shall cast a vote on the provision of services 
        by that member (or any organization which that member directly 
        represents) or vote on any matter which would provide direct 
        financial benefit to that member.
            (8) Private industry councils.--A private industry council 
        may become a workforce investment board if the local elected 
        official or officials determine such council is appropriate and 
        such council--
                    (A) meets the requirements of this subsection, or
                    (B) is reconstituted to meet the requirements of 
                this subsection.
            (9) State human resource investment council.--In any case 
        in which the one-stop service area is a State, the State human 
        resource investment council or a portion of such council may be 
        reconstituted to meet the requirements of this subsection.
            (10) Certification.--The Governor shall certify a workforce 
        investment board if the Governor determines that its 
        composition and appointments are consistent with the provisions 
        of this subsection. Such certification shall be made or denied 
        within thirty days after the date on which the list of members 
        and necessary supporting documentation are submitted to the 
        Governor. When the Governor certifies the board, it shall be 
        convened within thirty days by the official or officials who 
        made the appointments under paragraph (4).
    (c) Functions of Board.--
            (1) Strategic planning.--Each workforce investment board 
        shall develop a strategic plan and provide policy guidance with 
        respect to the workforce development programs that are 
        administered in the one-stop service area. Such strategic plan 
        shall be consistent with the statewide strategic plan developed 
        by the State human resource investment council pursuant to 
        section 318 and shall include:
                    (A) measurable objectives for improving the quality 
                and effectiveness of workforce preparation, development 
                and training in the one-stop service area; and
                    (B) methods for coordinating the workforce 
                development programs conducted in the one-stop service 
                area to enhance the delivery of services, including 
                methods to maximize the coverage of such workforce and 
                appropriate population subgroups, and ensure equitable 
                access to services by such subgroups.
            (2) Identification of occupations in demand and training 
        needs.--In carrying out this subsection, the workforce 
        investment board shall utilize available labor market 
        information and other appropriate methods in order to identify 
        the jobs currently available, the occupations currently in 
        demand, and the occupations likely to be in demand in the 
        future in the one-stop service area; the skill requirements 
        relating to such jobs and occupations; and education and 
        training services in the one-stop service area that are 
        available to assist individuals in acquiring such skills. Such 
        information shall be used in developing the goals of, and 
        activities to be provided by, the workforce development 
        programs in the labor market area and disseminated to the 
        public through the one-stop career centers established in such 
        area.
            (3) Budgets.--The workforce investment board shall review 
        and approve the budgets of the participating programs described 
        in subparagraphs (A)-(E) of section 315(a), and the budgets for 
        the one-stop career centers pursuant to section 316(c), and 
        review and provide recommendations regarding the budgets of 
        other participating programs described in section 315(b) to 
        encourage coordination and enhance the delivery of services.
            (4) Assumption of functions.--
                    (A) In general.--The workforce investment board 
                shall assume the functions of the private industry 
                council described in section 103 of the Job Training 
                Partnership Act and of the Job Service Employer 
                Committees.
                    (B) Limitation.--The workforce investment board 
                shall not be the administrative entity for programs 
                under title II of the Job Training Partnership Act and 
                shall not operate any other programs.
            (5) Oversight.--The workforce investment board shall 
        conduct oversight of the implementation of the strategic plan 
        and the overall performance of the participating programs 
        described in section 315.
            (6) Chartering of centers.--Each workforce investment board 
        shall administer the procedures for the chartering of one-stop 
        career centers described in section 314(c).

SEC. 313. ESTABLISHMENT OF ONE-STOP CAREER CENTERS.

    (a) In General.--The Governor and local elected official or 
officials shall jointly select either the option described in 
subsection (b) or the option described in subsection (c) as the method 
for establishing one-stop career centers for each one-stop service 
area.
    (b) Consortium Option.--
            (1) Consortium members.--One-stop career centers in the 
        one-stop service area shall be administered by a consortium 
        that consists of--
                    (A) the Employment Service;
                    (B) the substate grantee or grantees for title I of 
                this Act;
                    (C) the administrative entity or entities for title 
                II of the Job Training Partnership Act;
                    (D) the State agency charged with the 
                administration of the State unemployment compensation 
                law, unless such agency chooses not to participate; and
                    (E) one or more additional entities that shall be--
                            (i) any unit of government,
                            (ii) any public or private provider of 
                        reemployment, education and training or social 
                        services, or
                            (iii) a consortium of the entities 
                        described in clauses (i) and (ii).
            (2) Establishment criteria.--In order to be designated to 
        operate the one-stop career center system, the consortium 
        established in accordance with paragraph (1) shall demonstrate 
        to the satisfaction of the workforce investment board the 
        ability of such consortium to--
                    (A) meet the criteria described in clauses (i)-(vi) 
                of subsection (c)(6)(B),
                    (B) provide for customer choice in obtaining the 
                basic services described in section 314(a) by--
                            (i) operating two or more centers, and
                            (ii) administering budget resources to 
                        reflect, at least in part, the extent to which 
                        each center is used by the public, and
                    (C) provide equitable access to centers by segments 
                of the population within the one-stop service area.
            (3) Integration of program administration.--Consortia 
        established in accordance with paragraph (1) shall, in addition 
        to meeting the establishment criteria described in paragraph 
        (2), identify to the workforce investment board procedures that 
        would be used to promote the integration of the administration 
        of the programs conducted by the members of such consortium, 
        such as procedures to provide for the cross-training of staff, 
        promote the collocation of facilities, and encourage the use of 
        common forms and practices.
            (4) Renewal of charter.--The Governor and local elected 
        official or officials, in consultation with the workforce 
        investment board, shall review the performance of the 
        consortium and once every four years determine whether to renew 
        the charter of the consortium.
    (c) Multiple Independent Operator Option.--
            (1) Multiple independent operators.--The workforce 
        investment board shall select, in accordance with the 
        requirements of this subsection, two or more entities to 
        operate one-stop career centers in the one-stop service area.
            (2) Eligible entities.--Any entity or consortium of 
        entities located in the one-stop service area may apply, in 
        accordance with the procedures described in paragraph (4), to 
        be selected as a one-stop career center operator. Such entities 
        may include--
                    (A) Employment Service offices,
                    (B) career center operators under title I of this 
                Act,
                    (C) service delivery area grant recipients or 
                administrative entities under the Job Training 
                Partnership Act,
                    (D) community colleges and area vocational schools,
                    (E) community-based and other private for-profit 
                and nonprofit organizations, and
                    (F) other interested private and public 
                organizations and entities.
            (3) Special rule.--If the Employment Service, or a 
        consortium including the Employment Service, applies to be 
        selected as one-stop career center operator and such Employment 
        Service or consortium meets the selection criteria developed 
        pursuant to paragraph (6), the workforce investment board shall 
        select such Employment Service or consortium to be one of the 
        operators.
            (4) Publication of procedures.--The workforce investment 
        board, after consultation with the Governor and local elected 
        officials, shall publish, in a manner that is generally 
        available, information to notify organizations and individuals 
        in the one-stop service area of--
                    (A) the estimated number of one-stop career centers 
                needed and proposed number of operators to be selected 
                in the one-stop service area, as determined in 
                accordance with paragraph (5);
                    (B) the application procedure for any entity or 
                consortium of entities to be selected as such center 
                operator, including when and where such application is 
                to be submitted and what information such application 
                is to contain;
                    (C) the criteria for selection that will be used, 
                as determined in accordance with paragraph (6); and
                    (D) other information the workforce investment 
                board considers relevant to the selection and 
                administration of such center operators.
            (5) Number of one-stop center operators.--The workforce 
        investment board shall determine the number of one-stop career 
        center operators to be selected in the one-stop service area. 
        In determining the appropriate number of such operators, which 
        shall not be less than two, the workforce investment board 
        shall take into account--
                    (A) the size of the labor market;
                    (B) the number of customers who will potentially 
                use the one-stop career centers, including unemployed 
                and discouraged workers, employed workers, economically 
                disadvantaged individuals, students, out-of-school 
                youth, older workers, veterans, and employers;
                    (C) the number and capabilities of potential 
                operators; and
                    (D) equitable access to centers by segments of the 
                population within the one-stop service area.
            (6) Selection criteria.--
                    (A) Objective factors.--The workforce investment 
                board, consistent with guidelines issued by the 
                Secretary, shall use objective criteria and performance 
                measures in assessing applications submitted for 
                selection as a one-stop career center operator.
                    (B) Contents.--An applicant may not be selected as 
                a one-stop career center operator under this title 
                unless such applicant demonstrates to the satisfaction 
                of the workforce investment board the ability to 
                establish a one-stop career center or centers that 
                would--
                            (i) provide the services described in 
                        section 314;
                            (ii) utilize automated information systems 
                        to facilitate the exchange of information among 
                        career centers;
                            (iii) meet the performance standards 
                        prescribed pursuant to section 317;
                            (iv) ensure effective fiscal and program 
                        management;
                            (v) administer the process of referring 
                        participants to education and training services 
                        in an objective and equitable manner; and
                            (vi) provide services on a 
                        nondiscriminatory basis to the population in 
                        the one-stop service area.
            (7) Single operator exception.--Notwithstanding the number 
        of operators to be selected pursuant to paragraph (5), if only 
        one applicant meets the selection criteria developed pursuant 
        to paragraph (6), the workforce investment board may select the 
        single applicant to operate the one-stop career center system.
            (8) Period of selection.--The workforce investment board 
        shall select one-stop career center operators pursuant to the 
        requirements of his subsection once every four years.
    (d) Charters.--The workforce investment board shall issue a charter 
to each one-stop career center designated pursuant to this section. 
Such charter shall--
            (1) identify the number and location of the one-stop career 
        centers in the one-stop service area;
            (2) identify the entity or entities operating the one-stop 
        career centers;
            (3) provide for the display of the one-stop career center 
        national logo developed pursuant to section 343(c);
            (4) include such other conditions as the workforce 
        investment board determines is appropriate.
    (e) Enforcement of Honest Broker Functions.--The workforce 
investment board shall review, not less than once each program year, 
the education and training referral practices of any one-stop career 
center that is operated by an entity that concurrently provides 
education and training services to participants under this title. If 
the workforce investment board determines that such center has engaged 
in a pattern of inappropriate referrals to the education and training 
services provided by the operator of such center, the Board may 
terminate the charter to operate such center or may require such 
operator to cease providing education and training services to 
participants under this title as a condition for continuing to operate 
such center.

SEC. 314. SERVICES TO BE PROVIDED THROUGH ONE-STOP CAREER CENTERS.

    (A) Basic Services.--Each one-stop career center established 
pursuant to this title shall make available to the public free of 
charge the following basic services:
            (1) Outreach to make individuals aware of, and encourage 
        the use of, employment and training services, including efforts 
        to expand awareness of training and placement opportunities for 
        limited-English proficient individuals, disadvantaged youth and 
        adults, and individuals with disabilities.
            (2) Intake and orientation to the information and services 
        available through such center.
            (3) Assistance in filing an initial claim for unemployment 
        compensation.
            (4) Preliminary assessment of skill levels (including 
        appropriate testing) and service needs of such individuals, 
        which may include such factors as basic skills, occupational 
        skills, prior work experience, employability, interests, 
        aptitudes, and supportive service needs.
            (5) Information relating to local, regional and national 
        labor markets, including--
                    (A) job vacancy listings in such markets, and
                    (B) information relating to local occupations in 
                demand and the earnings and skill requirements for such 
                occupations;
            (6) job search assistance, including resume and interview 
        preparation, and workshops;
            (7) job referral and job placement assistance;
            (8) information relating to job training and education 
        programs (including student financial assistance), including 
        the eligibility requirements of and services provided by such 
        programs, the availability and quality of such programs, and 
        referrals to such programs where appropriate;
            (9) information collected pursuant to the performance 
        standards and customer feedback requirements of section 317;
            (10) assistance in evaluating whether such individuals are 
        likely to be eligible for any program participating in the 
        career center;
            (11) information relating to programs and providers of 
        dependent care and other supportive services available in the 
        local area;
            (12) soliciting and accepting job orders submitted by 
        employers in the one-stop service area, and screening and 
        referring applicants in accordance with such orders.
    (b) Intensive Services.--Each one-stop career center established 
pursuant to this title shall make available to participants in the 
program described under title I of this Act who are unable to obtain 
employment through the basic services described in subsection (a), and 
may make available to other individuals, in accordance with the written 
agreement developed pursuant to section 316, the following intensive 
services:
            (1) Comprehensive and specialized assessments of the skill 
        levels and service needs of individuals, which may include--
                    (A) diagnostic testing and other assessment tools; 
                and
                    (B) in-depth interviewing and evaluation to 
                identify employment barriers and appropriate employment 
                goals.
            (2) The development of an individual reemployment plan, 
        which shall identify the employment goal (including in 
        appropriate circumstances, nontraditional employment), 
        appropriate achievement objectives, and the appropriate 
        combination of services for a participant to achieve the 
        employment goal.
            (3) Group counseling, including peer counseling, which may 
        be available to individuals jointly with their immediate 
        families, and which may include counseling relating to stress 
        management and financial management and which shall be a basic 
        service for participants in the program established under title 
        I of this Act.
            (4) Individualized counseling and career planning, 
        including peer counseling and counseling and planning relating 
        to nontraditional employment opportunities.
            (5) Case management for individuals receiving education, 
        training and supportive services, including periodically 
        reviewing the individual's progress toward achieving his or her 
        employment goal.
            (6) Job development.
            (7) Out-of-area job search allowances.
            (8) Relocation allowances.
            (9) Assistance in the selection of education and training 
        providers.
            (10) Assistance in obtaining income support for which the 
        individual is eligible, to enable such individual to 
        participate in training.
            (11) Supportive services.
            (12) Followup counseling for individuals placed in training 
        or employment.
    (c) Specialized Employer Services.--Each one-stop career center 
established pursuant to this title may provide to employers the 
following services:
            (1) Customized screening and referral of individuals for 
        employment.
            (2) Customized assessment of skill levels of the employer's 
        current employees.
            (3) Analysis of the employer's workforce skill needs.
            (4) Other specialized employment and training services.
    (d) Additional Services.--Each one-stop career center established 
pursuant to this title may make available such additional services as 
are specified in the written agreement under section 316.
    (e) Fees.--
            (1) In general.--(A) Except as provided in subparagraph 
        (B), each one-stop career center may charge fees for the 
        services described in subsections (b), (c) and (d) if such fees 
        are approved by the workforce investment board.
            (B) No fees may be charged to an individual for any service 
        which such individual is eligible to receive free of charge 
        under any participating program described in section 315 unless 
        there are no funds available under such program to provide such 
        services.
            (2) Program income.--All program income received by a one-
        stop career center that is operated by a public or private non-
        profit entity from the fees collected pursuant to paragraph (1) 
        shall be used to expand or enhance the services provided by 
        such center.

SEC. 315. PARTICIPATING PROGRAMS.

    (A) Mandatory Programs.--
            (1) In general.--Subject to the provisions of paragraph 
        (2), the following programs shall make available to 
        participants through the one-stop career centers the services 
        described in section 314(a) that are applicable to such program 
        and shall participate in the operation of such centers as a 
        party to the agreement described in section 316:
                    (A) Programs authorized under title I of this Act.
                    (B) Programs authorized under the Wagner-Peyser 
                Act.
                    (C) Programs authorized under chapter 41 of title 
                38, United States Code.
                    (D) Programs authorized under title II of the Job 
                Training Partnership Act.
                    (E) Programs authorized under title V of the Older 
                Americans Act.
                    (F) Programs authorized under Federal and State 
                unemployment compensation laws.
            (2) Additional conditions.--
                    (A) The programs authorized under title I of this 
                Act shall provide the services described in subsections 
                (a) and (b) of section 314 through the one-stop career 
                centers, which shall replace the career centers 
                established pursuant to section 118 of this Act.
                    (B) The program authorized under the Wagner-Peyser 
                Act shall provide the applicable services described in 
                subsections (a) and (b) of section 314 only through the 
                one-stop career centers.
                    (C) The program authorized under chapter 41 of 
                title 38, United States Code, shall make available 
                through the one-stop career centers the applicable 
                services described in subsections (a) and (b) of 
                section 314, and may, in addition, provide such 
                services through other locations.
                    (D) The programs described under subparagraphs (C), 
                (D), (E), and (F) of paragraph (1) may, in addition to 
                providing applicable services under section 314(a) 
                through the one-stop career centers, provide such 
                services through other locations and service providers.
                    (E) The programs described in paragraph (1) may 
                provide additional services through the one-stop career 
                centers in accordance with the written agreement 
                described in section 316.
    (b) Voluntary.--In addition to the programs described in subsection 
(a), other human resource programs may provide services through the 
one-stop career centers and participate in the operation of such 
centers as a party to the agreement described in section 316 if the 
workforce investment board, local elected official or officials, the 
Governor, and other participating programs approve such participation. 
Such programs may include programs authorized under--
            (1) part F of title IV of the Social Security Act (the Job 
        Opportunities and Basic Skills (JOBS) program);
            (2) section 6(d)(4) of the Food Stamp Act of 1977 (the Food 
        Stamp Employment and Training Program);
            (3) part B of title IV of the Job Training Partnership Act 
        (Job Corps);
            (4) programs authorized under title IV-C of the Job 
        Training Partnership Act;
            (5) the Carl D. Perkins Vocational and Applied Technology 
        Education Act;
            (6) the Adult Education Act;
            (7) the Vocational Rehabilitation Act; and
            (8) the School-to-Work Opportunities Act.

SEC. 316. OPERATING AGREEMENTS.

    (a) In General.--The one-stop career center operators selected 
pursuant to section 313 shall enter into a written agreement with the 
workforce investment board and participating programs described in 
section 315 concerning the operation of the one-stop career centers. 
Such agreement shall be subject to the approval of the local elected 
official and the Governor, who shall oversee the development of such 
agreement, ensure that the agreement meets the requirements of this 
section, and monitor the implementation of such agreement.
    (b) Contents.--The written agreement required under subsection (a) 
shall contain the following:
            (1) The services to be provided by the centers, consistent 
        with section 314, and the extent to which participating 
        programs will provide services to program participants through 
        such centers, consistent with section 315.
            (2) Methods for referral of individuals by the one-stop 
        career centers to the appropriate services and programs.
            (3) The financial and nonfinancial contributions to be made 
        to the centers by each participating program, which shall be 
        based on factors including the number of participants served by 
        the centers from each participating program and the quality of 
        services provided.
            (4) The financial liability of the respective parties 
        relating to the funds contributed by the participating 
        programs.
            (5) The financial contributions to be made for the 
        administration of the workforce investment board by each 
        participating program.
            (6) Methods of administration, including provisions for 
        monitoring and oversight of the centers and of this agreement.
            (7) A description of how services are to be provided by the 
        centers, such as the methods and appropriate test instruments 
        to be used to assess the skill levels of individuals.
            (8) The procedures to ensure the utilization of a common 
        local job bank.
            (9) The procedures to be used to ensure compliance with the 
        statutory and regulatory requirements of the participating 
        programs.
            (10) The duration of the agreement and the procedures for 
        amending the agreement during its term.
            (11) Such other provisions, consistent with the 
        requirements of this title, that the parties deem appropriate.
    (c) One-Stop Career Center and Board Budgets.--The parties to the 
written agreement described under subsection (a) shall supplement the 
written agreement by developing an annual budget for the one-stop 
career centers and the workforce investment board. The budget for the 
board shall be subject to the approval of the local elected official. 
The budget for the career centers shall be subject to approval of the 
local elected official and the Governor.

SEC. 317. QUALITY ASSURANCE SYSTEMS.

    (a) Performance Standard.--
            (1) In general.--The Secretary, after consultation with the 
        Governors, workforce investment boards, and one-stop career 
        center operators, shall prescribe performance standards 
        relating separately to the one-stop career centers and the 
        workforce investment boards established under this title. Such 
        standards shall be based on factors the Secretary determines 
        are appropriate, which may include--
                    (A) in the case of one-stop career centers--
                            (i) placement, retention and earnings of 
                        participants in unsubsidized employment, 
                        including--
                                    (I) wages and benefits at a 
                                specified period after termination from 
                                the program,
                                    (II) full-time and part-time 
                                employment, and
                                    (III) comparability of wages at a 
                                specified period after termination from 
                                the program with wages prior to 
                                participation in the program;
                            (ii) the provision of services to hard-to-
                        serve populations, such as individuals who are 
                        basic skills deficient, school dropouts, 
                        individuals with disabilities, older workers 
                        with obsolete skills, economically 
                        disadvantaged individuals, and others who face 
                        serious barriers to employment;
                            (iii) acquisition of skills pursuant to a 
                        skill standards and skill certification system 
                        endorsed by the National Skill Standards Board 
                        established under the Goals 2000: Educate 
                        America Act;
                            (iv) satisfaction of participants with 
                        services provided and the employment outcomes;
                            (v) satisfaction of employers with job 
                        performance of individuals placed; and
                            (vi) measures of the cost efficiency of the 
                        one-stop career centers;
                    (B) in the case of the workforce investment 
                boards--
                            (i) job openings received from employers, 
                        including the proportion of employers in the 
                        one-stop service area that list jobs with the 
                        one-stop career centers;
                            (ii) job openings filled through the one-
                        stop career centers; and
                            (iii) the overall performance of the career 
                        centers in the one-stop service area.
            (2) Adjustments.--Each Governor shall, within parameters 
        established by the Secretary, prescribe adjustments to the 
        performance standards prescribed under paragraph (1) for the 
        one-stop career centers and workforce investment boards 
        established in the State based on--
                    (A) specific economic, geographic and demographic 
                factors in the State and in one-stop service areas 
                within the State; and
                    (B) the characteristics of the population to be 
                served, including the demonstrated difficulties in 
                serving special populations.
            (3) Failure to meet standards.--
                    (A) Uniform criteria.--The Secretary shall 
                establish uniform criteria for determining whether a 
                one-stop career center or workforce investment board 
                fails to meet performance standards under this section.
                    (B) Technical assistance.--The Governor shall 
                provide technical assistance to one-stop career centers 
                and workforce investment boards failing to meet 
                performance standards under the uniform criteria 
                established under paragraph (1).
                    (C) Report on performance.--Each Governor shall 
                include in the report to the Secretary the final 
                performance standards and performance for each one-stop 
                career center and workforce investment board within the 
                State, along with the technical assistance planned and 
                provided as required under subparagraph (B).
                    (D) Revocation of charter.--If a one-stop career 
                center continues to fail to meet such performance 
                standards for two consecutive program years, the 
                Governor shall notify the Secretary and the one-stop 
                career center of the continued failure, and the 
                workforce investment board shall--
                            (i) in the case of a one-stop career center 
                        selected pursuant to the multiple independent 
                        operator option, terminate the operating 
                        agreement and select another entity as the one-
                        stop career center consistent with the 
                        procedures described in section 313(b); and
                            (ii) in the case of a one-stop career 
                        center operated under the consortium option, 
                        terminate the operating agreement to operate 
                        such center and to select another entity as a 
                        one-stop career center, consistent with the 
                        procedures described in section 313(b).
                    (E) Corrective action for boards.--If a workforce 
                investment board continues to fail to meet such 
                performance standards for two consecutive program 
                years, the Governor shall notify the Secretary and the 
                workforce investment board of the continued failure, 
                and shall--
                            (i) replace the members of such board,
                            (ii) direct the board to replace staff,
                            iii) direct the board to replace the 
                        chairperson, or
                            (iv) take such other action as the Governor 
                        determines is appropriate.
                    (F) Appeal.--(i) A one-stop career center operator 
                that is the subject of a revocation under subparagraph 
                (D) or a workforce investment board that is subject to 
                sanctions under subparagraph (E) may, within thirty 
                days after receiving notice thereof and pursuant to 
                criteria established by the Secretary, appeal to the 
                Governor to rescind such action. The governor shall 
                issue a decision on the appeal within thirty days of 
                its receipt.
                    (ii) A one-stop career center operator or workforce 
                investment board that receives an adverse decision 
                under an appeal filed pursuant to clause (i) may, 
                within thirty days, appeal to the Secretary. The 
                Secretary shall issue a decision on the appeal within 
                thirty days of its receipt.
    (b) Customer Feedback.--
            (1) Methods.--Each workforce investment board shall 
        establish methods for obtaining, on a regular basis, 
        information from individuals and employers who have received 
        services through a one-stop career center regarding the 
        effectiveness and quality of such services. Such methods may 
        include the use of surveys, interviews, focus groups, and other 
        techniques.
            (2) Analysis and dissemination.--Each workforce investment 
        board shall analyze the information obtained pursuant to 
        paragraph (1) on a regular basis and provide a summary of such 
        information accompanied by such analysis to the one-stop career 
        center for use in improving the quality of services provided 
        under this title.

SEC. 318. STATE HUMAN RESOURCE INVESTMENT COUNCIL.

    (a) In General.--Each State shall establish a State human resource 
investment council that meets the requirements of title VII of the Job 
Training Partnership Act. In addition to carrying out the functions 
required under paragraphs (1)-(3) of section 701 of such Act, the 
Council shall--
            (1) identify the human investment needs in the State and 
        recommend to the Governor goals for meeting such needs;
            (2) recommend to the Governor goals for the development and 
        coordination of the human resource system in the State;
            (3) prepare and recommend to the Governor a strategic plan 
        to accomplish the goals developed pursuant to paragraphs (2) 
        and (3); and
            (4) monitor the implementation of and evaluate the 
        effectiveness of the strategic plan prepared pursuant to 
        paragraph (3).
    (b) One-Stop Function.--In addition to the functions described in 
subsection (a), the council shall advise the Governor with respect to 
all aspects of the development and implementation of the one-stop 
career center system authorized under this title, including--
            (1) assessing the needs of the State with regard to--
                    (A) current and projected demand for workers by 
                occupation;
                    (B) skill levels of the workforce and the needs of 
                business for a skilled workforce;
                    (C) economic development needs of the State;
            (D) the type and availability of workforce preparation and 
        development programs in the State;
            (2) providing advice to the Governor on the designation of 
        one-stop service areas within the State;
            (3) developing measures of effectiveness for the workforce 
        investment boards;
            (4) facilitating the provision through appropriate State 
        agencies of grants and technical assistance to workforce 
        investment boards;
            (5) developing a mechanism for waiving State rules and 
        provisions of law with respect to workforce investment 
        programs; and
            (6) developing a strategy to collect and utilize 
        information on the effectiveness of workforce investment 
        programs, and that of individual service providers, and to 
        share such information with customers of such programs.

       PART B--GRANTS AND WAIVERS TO PROMOTE THE DEVELOPMENT AND 
            IMPLEMENTATION OF ONE-STOP CAREER CENTER SYSTEM

SEC. 331. STATE PLANNING AND DEVELOPMENT GRANTS.

    (a) Program Authorized.--The Secretary is authorized to establish a 
program of competitive grants to States to assist in the planning and 
development of a comprehensive Statewide network of one-stop career 
centers.
    (b) Application.--
            (1) In general.--Any State desiring a grant under this 
        section shall submit an application to the Secretary at such 
        time, in such manner, and containing such information as the 
        Secretary may reasonable require.
            (2) Contents of applications.--The application for a grant 
        submitted pursuant to paragraph (1) shall at a minimum 
        include--
                    (A) a timetable and estimate of the amount of funds 
                needed to complete the planning and development 
                necessary to implement a Statewide system of one-stop 
                career centers, which includes the components described 
                in part A; and
                    (B) a description of the manner in which the 
                Governor, local elected officials, community and 
                business leaders, representatives of employees, 
                representatives of voluntary organizations, 
                representatives of the programs described in section 
                315, service providers and other interested 
                organizations and individuals will work together in the 
                planning and development of a one-stop career center 
                system.
    (c) Use of Funds.--Funds awarded under this section may be used to 
carry out the following activities:
            (1) Identifying and establishing an appropriate State 
        structure to administer the one-stop career center network 
        within the State.
            (2) Identifying and establishing broad-based partnerships 
        among employers, labor, education, State and local government, 
        and community-based organizations to participate in the design, 
        development, and administration of a one-stop career center 
        system.
            (3) Developing a plan to establish a State Human Resource 
        Investment Council and local workforce investment boards.
            (4) Developing the process for chartering one-stop career 
        centers.
            (5) Supporting local one-stop career center planning and 
        development activities to provide guidance in the development 
        of a one-stop career center system.
            (6) Initiating pilot programs for testing key components of 
        State program design, such a designing and testing common 
        intake forms for participating programs.
            (7) Analyzing State and local labor markets and the 
        operation of the current labor exchange and labor market 
        intermediaries, to inform the design of the new system.
            (8) Analyzing current statutory and regulatory impediments 
        to the establishment of a one-stop career center system, and 
        preparing requests to waive statutory or regulatory 
        requirements.
            (9) Preparing the plan required for submission of an 
        application for an Implementation Grant under section 332.
            (10) Other appropriate activities.

SEC. 332. STATE IMPLEMENTATION GRANTS.

    (a) Program Authorized.--The Secretary is authorized to establish a 
program of competitive grants to States to assist in the implementation 
of a comprehensive statewide system of one-stop career centers.
    (b) Application.--
            (1) In general.--Any State desiring a grant under this 
        section shall, with the agreement of the local elected 
        officials from the one-stop service areas identified in 
        paragraph (3)(C) that will immediately begin implementation of 
        the one-stop career center system, submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may reasonably require.
            (2) Contents of application.--The application for a grant 
        submitted pursuant to paragraph (1) shall, at a minimum, 
        include--
                    (A) a plan for a comprehensive, statewide one-stop 
                career center system that includes the components 
                described in part A;
                    (B) a request in accordance with section 333, if 
                any, for one or more waivers of statutory or regulatory 
                requirements relating to the programs described in 
                section 333(c);
                    (C) such other information as the Secretary may 
                require.
            (3) Contents of state plan.--A State plan shall--
                    (A) designate a fiscal agent to receive and be 
                accountable for implementation grant funds awarded 
                under this section and describe how the State intends 
                to manage the funds awarded under this section at the 
                State and local levels;
                    (B) identify the one-stop service areas that have 
                been designated within the State pursuant to section 
                302(a);
                    (C) identify the one-stop service areas in the 
                State that will immediately begin implementation of the 
                one-stop career center system, and the schedule for 
                implementation for the remaining areas of the State;
                    (D) identify the workforce development programs 
                that will participate in the one-stop career centers, 
                consistent with section 315;
                    (E) describe the method by which one-stop career 
                centers will be selected, consistent with section 313;
                    (F) describe the performance standards that the 
                State intends to meet;
                    (G) describe the procedure by which the Governor, 
                local elected officials, officials administering 
                participating programs, and other appropriate 
                officials, will collaborate in the implementation of 
                the statewide one-stop career center system;
                    (H) describe the manner in which the State has 
                obtained and will continue to obtain the active and 
                continued involvement, in the statewide one-stop career 
                center system, of employers (including small business) 
                and other interested parties such as secondary schools 
                and post-secondary educational institutions (or related 
                agencies), business associations, employees, labor 
                organizations or associations of such organizations, 
                community-based organizations, economic development 
                organizations, rehabilitation agencies and 
                organizations, registered apprenticeship agencies, 
                vocational education agencies, State or regional 
                cooperative education associations, human service 
                agencies, and education, employment and training 
                service providers;
                    (I) describe the manner in which the State will 
                ensure equitable opportunities for jobseekers, 
                students, and employers in the State to receive 
                services from one-stop career centers;
                    (J) if the State has already undertaken a one-stop 
                service initiative, describe how such initiative will 
                be integrated into the Statewide one-stop career center 
                system under this title;
                    (K) describe the administrative and management 
                systems that will be used in the State; and
                    (L) describe the resources that the State intends 
                to employ in maintaining the one-stop career center 
                system whn funds under this title are no longer 
                available.
    (c) Factors To Be Awarded Special Consideration.--An applicant 
shall be awarded special consideration in the evaluation of a grant 
application under this section with respect to the following factors:
            (1) The extent to which the one-stop service areas in the 
        State are based on labor market areas.
            (2) The number of Federal programs that will participate in 
        the one-stop career centers.
            (3) The extent to which the Job Opportunities and Basic 
        Skills program (commonly referred to as JOBS) authorized under 
        title IV-F of the Social Security Act and programs authorized 
        under the Carl Perkins Vocational and Applied Technology 
        Education Act will participate in the one-stop career centers.
            (4) The extent to which a State has already implemented the 
        components of the one-stop career center system described in 
        part A.
            (5) The proportion of population of the State that is 
        covered by the one-stop service areas that have agreed to 
        immediately implement the one-stop career center system.
            (6) The extent to which a State demonstrates a commitment 
        to ensuring that the one-stop career center operations in the 
        State will enhance access to the services described in section 
        314(a) through supplementary methods such as kiosks based in 
        shopping centers, libraries, community colleges and other 
        community organizations, and through personal telephones or 
        computer lines.
    (d) Review of Applications.--The Secretary shall determine whether 
to approve the State's plan, and, if such determination is affirmative, 
further determine whether to take one or a combination of the following 
actions:
            (1) Award an implementation grant.
            (2) Approve the State's request, if any, for a waiver in 
        accordance with the procedures in section 333 of this Act.
            (3) Inform the State of the opportunity to apply for 
        further development funds, except that further development 
        funds may not be awarded to a State that receives an 
        implementation grant.
    (e) Limitation.--No funds provided pursuant to a grant under this 
section may be expended to construct new buildings.
    (f) Duration of Grants.--Grants awarded under this section shall be 
for a one-year period and shall be renewable for each of the two 
succeeding fiscal years if the Secretary determines that the State is 
making satisfactory progress in the implementation of the Statewide 
one-stop career center plan.

SEC. 333. WAIVER OF FEDERAL STATUTORY AND REGULATORY REQUIREMENTS.

    (a) State Request for Waiver.--A State may, at any point during the 
development or implementation of a one-stop career center system, 
request a waiver of one or more statutory or regulatory provisions from 
the Secretary in order to carry out the purposes of this title.
    (b) Waiver Criteria.--(1) Except as provided in subsection (d), the 
Secretary may waive any requirement of any statute listed in subsection 
(c)(1) or regulations issued under such statute, or, with the 
concurrence of the Director of the Office of Management and Budget, any 
circular listed in subsection (c)(2) or regulations issued under such 
circular, for any State that requests such a waiver--
            (A) if such State submits a plan for a comprehensive, 
        Statewide one-stop career center system that--
                    (i) either--
                            (I) includes the components described in 
                        part A; or
                            (II) while not including all of the 
                        components described in part A, demonstrates 
                        that such one-stop system will substantially 
                        achieve the objectives of this title; and
                    (ii) includes such other information as the 
                Secretary may reasonably require, such as the 
                information required under a State plan pursuant to 
                section 332(b)(3);
            (B) if, and only to the extent that, the Secretary 
        determines that such requirement impedes the ability of the 
        State to carry out the purpose of this title;
            (C) if the State waives, or agrees to waive, similar 
        requirements of State law; and
            (D) if the State--
                    (i) has provided a notice and an opportunity for 
                the State council or State Human Resource Investment 
                Council and other interested entities and individuals 
                to comment on the State's proposal to seek a waiver; 
                and
                    (ii) has submitted the comments required pursuant 
                to clause (i) to the Secretary
    (2) The Secretary shall act promptly on any request submitted 
pursuant to paragraph (1).
    (3) Each waiver approved pursuant to this subsection shall be for a 
period not to exceed four years, except that the Secretary may extend 
such period if the Secretary determines that the waiver has been 
effective in enabling the State to carry out the purposes of this 
title.
    (c) Included Programs.--
            (1) Statutes.--The statutes subject to the waiver authority 
        of this section are as follows:
                    (A) Title I of this Act.
                    (B) The Job Training Partnership Act.
                    (C) The Wagner-Peyser Act.
                    (D) Title V of the Older Americans Act.
                    (E) Title III of the Social Security Act.
                    (F) Chapter 41 of title 38, United States Code.
            (2) Circulars and related regulations.--The following 
        circulars promulgated by the Office of Management and Budget 
        subject to the waiver authority of this section are as follows:
                    (A) A-87, relating to cost principles for State and 
                local governments.
                    (B) A-102, relating to grants and cooperative 
                agreements with State and local governments.
                    (C) A-122, relating to non-profit organizations.
                    (D) 29 CFR 97, uniform administrative regulations 
                for grants and cooperative agreements to State and 
                local governments.
    (d) Waivers Not Authorized.--The Secretary of Labor may not waive 
any statutory or regulatory requirement of the programs listed in 
subsection (b) relating to--
            (1) the basic purposes or goals of the affected programs;
            (2) maintenance of effort;
            (3) the formula allocation of funds under the affected 
        programs;
            (4) the eligibility of an individual for participation in 
        the affected programs;
            (5) public health or safety, labor standards, civil rights, 
        occupational safety and health, or environmental protection; or
            (6) prohibitions or restrictions relating to the 
        construction of buildings or facilities.
    (e) Termination of Waivers.--The Secretary shall periodically 
review the performance of any State for which the Secretary has granted 
a waiver and shall terminate the waiver under this section if the 
Secretary determines that the performance of the State affected by the 
waiver has been inadequate to justify a continuation of the waiver, or 
the State fails to waive similar requirements of State law as required 
or agreed to in accord with subsection (b)(1)(C).
    (f) Plan for General Waiver of Circular Provisions.--
            (1) Development of plan.--If the Secretary determines there 
        is sufficient information available, based on applications 
        received pursuant to this section or other information, to 
        identify provisions of the circulars or related regulations 
        listed in subsection (c)(2) that would consistently impede the 
        implementation of a one-stop career center system, the 
        Secretary shall submit a plan to the Director of the Office of 
        Management and Budget to authorize the Secretary to grant a 
        general waiver of such provisions for areas implementing one-
        stop career center systems.
            (2) Approval of plan.--The Director of the Office of 
        Management and Budget may approve the plan submitted pursuant 
        to paragraph (1) and authorize the Secretary to grant general 
        waivers of the provisions of the circulars and related 
        regulations in accordance with such plan if the Director 
        determines such plan would not jeopardize the integrity of 
        Federal funds and would be consistent with the objectives of 
        this title.

SEC. 334. POOLING OF ADMINISTRATIVE RESOURCES.

    (a) Submission of Plan.--
            (1) In general.--At any point in the implementation of a 
        one-stop career center system, a State may, on behalf of one or 
        more one-stop service areas in the State, submit a plan to the 
        Secretary for the pooling of administrative funds available to 
        such area under two or more of the programs described in 
        section 315(a).
            (2) Components of pooling.--Under a plan submitted pursuant 
        to paragraph (1), each participating program described in 
        section 315(a) may propose to transfer administrative funds to 
        the one-stop career center system and to allocate the amount 
        transferred to the costs of administration under such program 
        at the time of such transfer. Pursuant to such plan, further 
        allocation of the expenditure of such funds to the 
        participating program shall not be required subsequent to the 
        transfer of the funds to the one-stop career center system. 
        Administrative funds that are transferred under such plan shall 
        only be expended for the costs of administering allowable 
        activities under the one-stop career center system.
    (b) Approval of Plan.--Notwithstanding section 1301 of title 31, 
United States Code, or any other provision of law, the Secretary may 
approve a plan for the pooling of administrative funds submitted 
pursuant to subsection (a) if the Secretary determines such plan would 
not jeopardize the administration of the participating programs 
transferring such funds and would facilitate the implementation of the 
one-stop career center system. After approval of such plan, the 
Secretary shall regularly review the performance of the one-stop 
service areas operating under such plans and shall rescind such 
approval if the Secretary determines that the performance of the one-
stop service area has been inadequate to justify continuation of the 
plan or there has been a significant adverse effect on the 
participating programs.
    (c) SESA Real Property.--
            (1) In general.--Upon the approval of the Governor, real 
        property in which, as of July 1, 1995, equity has resulted from 
        funds provided under title III of the Social Security Act, 
        section 903(c) of the Social Security Act (commonly referred to 
        as the Reed Act), or the Wagner-Peyser Act, may be used for the 
        purposes of a one-stop career center.
            (2) Limitation.--Unless otherwise provided in a plan 
        approved pursuant to subsection (b), subsequent to the 
        commencement of the use of the property described in paragraph 
        (1) for the purposes of a one-stop career center, funds 
        provided under the provisions of law described in paragraph (1) 
        may only be used to acquire further equity in such property, or 
        to pay operating and maintenance expenses relating to such 
        property, in proportion to the extent of the use of such 
        property attributable to the activities authorized under such 
        provisions of law.

  PART C--ADDITIONAL ACTIVITIES IN SUPPORT OF ONE-STOP CAREER CENTER 
                                SYSTEMS

SEC. 351. CUSTOMER SERVICE COMPACT.

    The Secretary shall establish a process with each State 
implementing a one-stop career center system under this title, which 
shall include an annual meeting, to promote the development of a 
customer service compact among the parties administering such system. 
Such compact shall include an informal agreement between the Secretary, 
Governor, each workforce investment board, and each one-stop career 
center relating to--
            (1) the shared goals and values that will govern the 
        administration of the system;
            (2) the respective roles and responsibilities of each party 
        in enhancing the provision of services to participants, 
        including ensuring that such services are tailored to the 
        particular needs of participants in each local area;
            (3) methods for ensuring that the satisfaction of 
        participants with the services received is a primary 
        consideration in the administration of the system; and
            (4) such other matters as the parties determine are 
        appropriate.

SEC. 352. ADDITIONAL STATE RESPONSIBILITIES.

    (a) In General.--Each State implementing a one-stop career center 
system under this title shall be responsible for developing and 
operating administrative and management systems that promote the 
effective operation of the one-stop career center system.
    (b) Monitoring.--Each State implementing a one-stop career center 
system under this title shall monitor the compliance of workforce 
investment boards within the State with the requirements of this title.
    (c) Technical Assistance.--Each State implementing a one-stop 
career center system under this title shall provide such technical 
assistance as deemed necessary to assist the workforce investment 
boards to carry out their responsibilities under this title.

SEC. 353. ADDITIONAL FEDERAL RESPONSIBILITIES.

    (a) Oversight.--The Secretary is authorized to monitor all 
recipients of financial assistance under this title to determine 
whether they are complying with the provisions of this title.
    (b) Capacity Building and Technical Assistance.--The Secretary 
shall provide staff training and technical assistance to States, 
workforce investment boards, one-stop career centers, communities, 
business and labor organizations, service providers, industry 
consortia, and other entities, to enhance their capacity to develop and 
implement effective one-stop career center systems. Such activities 
shall be integrated with the activities of the Capacity Building and 
Information Dissemination Network established under section 453 of the 
Job Training Partnership Act.
    (c) National Logo.--The Secretary shall develop a national logo and 
name for the purposes of identifying all one-stop career centers as 
part of a nationwide workforce security system. The purpose of this 
national identification shall be to enable individuals to more readily 
identify and access one-stop career centers in any State in any 
location.
    (d) Evaluation.--
            (1) In General.--The Secretary shall provide for the 
        continuing evaluation of programs conducted under this title, 
        including the cost-effectiveness of programs in achieving the 
        purposes of this title.
            (2) Techniques.--
                    (A) Methods.--Evaluations conducted under paragraph 
                (1) shall utilize recognized statistical methods and 
                techniques of the behavioral and social sciences, 
                including methodologies that control for self-
                selection, where feasible.
                    (B) Analysis.--Such evaluations may include cost 
                benefit analyses of programs, and analyses of the 
                impact of the programs on participants and the 
                community, the extent to which programs meet the needs 
                of various demographic groups, and the effectiveness of 
                the delivery systems used by the various programs.

                         PART D--EFFECTVE DATE

SEC. 371. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
provisions of this title shall take effect on July 1, 1995.
    (b) Performance Standards.--The performance standards established 
pursuant to section 317(a) shall take effect on July 1, 1996.

           TITLE IV--NATIONAL LABOR MARKET INFORMATION SYSTEM

SEC. 401. PURPOSE.

    The purpose of this title is to provide for the development of a 
national labor market information system that will provide locally-
based, accurate, up-to-date, easily accessible, user-friendly labor 
market information, including--
            (1) comprehensive information on job openings, labor 
        supply, occupational trends, current and projected wage rates 
        by occupation, skill requirements, and the location of and 
        performance of programs designed to provide requisite skills; 
        and
            (2) labor market data necessary to assist public officials, 
        economic development planners, education planners, and public 
        and private training entities in the effective allocation of 
        resources.

SEC. 402. NATIONAL STRATEGY.

    (a) In General.--The Secretary shall develop, in coordination with 
other Federal, State, and local entities, a strategy to establish a 
nationwide system of local labor market information that accomplishes 
the purposes described in section 401 and carries out the activities 
described in sections 403 and 404. In addition, such strategy shall be 
designed to fulfill the labor market information requirements of the 
Job Training Partnership Act, title I of this Act, the Wagner-Peyser 
Act, the School-to-Work Opportunities Act, the Carl Perkins Vocational 
and Applied Technology Act, and other appropriate Federal programs.
    (b) Implementation.--In implementing the strategy described in 
subsection (a), the Secretary is authorized to enter into contracts and 
intergovernmental cooperative agreements, award grants, and foster the 
creation of public-private partnerships, using funds authorized under 
this title and funds otherwise available for such purposes. In 
addition, the Secretary may conduct research and demonstration projects 
to assist in such implementation.

SEC. 403. COMPONENTS OF SYSTEM.

    (a) In General.--The Secretary, in cooperation with Federal, State, 
and local entities, and public-private partnerships, shall develop a 
national labor market information system that makes available the 
following information--
            (1) information from both public and private sources on the 
        local economy, including current employment opportunities and 
        trends by industry and occupation;
            (2) automated listings of job openings and job candidates 
        in the local, State, and national labor market;
            (3) growth projections by industry and growth and 
        replacement need projections by occupation and occupational 
        cluster for national, state and local labor markets;
            (4) current supply of labor available with specific 
        occupational skills and experience including current workers, 
        job seekers and training completers;
            (5) automated screening systems to permit easy 
        determination of candidate eligibility for funding and other 
        assistance in job training, job search, income support, 
        supportive services and other reemployment services;
            (6) consumer reports on local education and training 
        providers including student satisfaction with programs, 
        employer satisfaction with graduates, placement rates, wages at 
        placement, and other elements of program quality;
            (7) results of customer satisfaction measures for the 
        career centers and one-stop career centers and other providers 
        of reemployment services;
            (8) national, State, and substate profiles of industries, 
        including skill requirements, general wage and benefit 
        information, and typical distributions of occupations within 
        the industry;
            (9) profiles of industries in a local labor market 
        including nature of the work performed, skill and experience 
        requirements, specific occupations, wage, hour and benefit 
        information, pattern of hiring, and
            (10) automated occupational and career information and 
        exploration systems, which incorporate local labor market 
        information, employer or industry profiles, listings of 
        education, training and other reemployment service providers 
        including program quality and customer satisfaction data, and 
        available automated listings of current openings.
    (b) Technical Standards.--The Secretary shall promulgate standards 
necessary to promote efficient exchange of information between the 
local, State, and national levels, including such standards as may be 
required to ensure that data are comparable. Such standards shall be 
designed to ensure that there is universal access to local, state and 
national data. In issuing such technical standards, the Secretary shall 
meet the requirements of chapter 35 of title 44, United States Code, 
and insure coordination with other appropriate Federal standards 
established by the Bureau of Labor Statistics.
    (c) Consumer Reports.--The Secretary, in consultation with the 
Secretary of Education and other appropriate Federal agencies, and 
State and local governments, shall set standards for the required 
reports and create a mechanism for collection and dissemination of the 
consumer reports described in subsection (a)(6).
    (d) Evaluation.--The Secretary shall provide for the evaluation of 
the procedures, products and services under this title, including their 
cost-effectiveness and the level of customer satisfaction. Such 
evaluations may include analyses of the precision of estimates produced 
or collected under this title; examination of the uses of the data by 
job seekers, employers, educators, career counselors, public and 
private training providers, economic development planners, and public 
agencies and institutions; the appropriateness of such uses; and the 
relative costs and benefits of the data.

SEC. 404. COORDINATION.

    To ensure the appropriate coordination and integration of labor 
market information services nationwide, the Secretary shall--
            (1) coordinate the activities of Federal agencies 
        responsible for the collection and dissemination of labor 
        market information at the national, state and local level; and
            (2) ensure the appropriate dissemination of results from 
        research studies and demonstration projects, feedback from 
        surveys of customer satisfaction, education and training 
        provider performance data, and other relevant information that 
        promotes improvement in the quality of labor market 
        information.

SEC. 405. EFFECTIVE DATE.

    The provisions of this title shall take effect on July 1, 1995.

    TITLE V--REINVENTION LABS FOR JOB TRAINING FOR THE ECONOMICALLY 
                             DISADVANTAGED

SEC. 501. ESTABLISHMENT OF LABS.

    Title II of the Job Training Partnership Act is amended by adding 
at the end thereof the following new part:

                       ``PART D--REINVENTION LABS

``SEC. 281. PURPOSE.

    The purpose of this part is to--
            ``(1) encourage innovative program designs to enhance the 
        provision of services to and improve labor market outcomes for 
        economically disadvantaged youth and adults,
            ``(2) develop, through the initiative and participation of 
        service delivery areas and States, knowledge relating to 
        effective approaches to providing employment and training to 
        the economically disadvantaged that may be used to benefit the 
        programs conducted under this title; and
            ``(3) provide service delivery areas with increased 
        flexibility in the operation of job training programs in 
        exchange for higher levels of accountability for results.

``SEC. 282. APPLICATION FOR WAIVER OF FEDERAL REQUIREMENTS.

    ``(a) In General.--Any service delivery area or consortia of 
service delivery areas desiring to obtain a waiver of Federal statutory 
or regulatory requirements relating to the programs conducted under 
parts A, B, or C of this title shall submit, jointly with the Governor, 
an application for such waiver at such time, in such manner, and 
containing such information as the Secretary may reasonably require.
    ``(b) Contents of Application.--The application for a waiver 
submitted pursuant to subsection (b) shall include--
            ``(1) a plan for conducting a program or programs 
        authorized under this title incorporating innovative 
        administrative, service delivery, and other program design 
        components,
            ``(2) the measurable goals and outcomes to be achieved by 
        the program;
            ``(3) a description of the statutory or regulatory 
        requirements under titles I and II of this Act that would be 
        waived and how such requirements would impede the 
        implementation of the plan described in paragraph (1);
            ``(4) assurances that the service delivery area and the 
        State will participate in a rigorous evaluation to determine 
        whether the goals and outcomes described in paragraph (2) have 
        been achieved; and
            ``(5) such other components and information as the 
        Secretary determines are appropriate.

``SEC. 283. WAIVERS AUTHORIZED.

    ``(a) In General.--Except as provided in subsection (b), the 
Secretary may, pursuant to an application submitted in accordance with 
section 282, waive statutory or regulatory requirements relating to 
title I and parts A, B, and C of this title if--
            ``(1) the Secretary determines that such requirements would 
        impede the ability of the service delivery area to carry out 
        the plan described in section 282(b)(1) and achieving the 
        outcomes described in the plan,
            ``(2) the service delivery area and the State--
                    ``(A) have provided a notice and opportunity for 
                interested entities and individuals in the State to 
                comment on the application; and
                    ``(B) have submitted to the Secretary the comments 
                received pursuant to subparagraph (A); and
            ``(3) the Secretary approves the plan described in the 
        application.
    ``(b) Waivers Not Authorized.--The Secretary may not waive any 
statutory or regulatory requirement relating to title I or parts A, B, 
or C of this title regarding--
            ``(1) the basic purposes or goals of the affected programs;
            ``(2) the formula allocation of funds;
            ``(3) the eligibility for services as described in sections 
        203, 254(b) and 263 (except for subsection (f));
            ``(4) public health or safety, labor standards, civil 
        rights, occupational safety or health, or environmental 
        protection; or
            ``(5) prohibitions or restrictions relating to construction 
        of buildings or facilities.
    ``(c) Additional Limitations.--
            ``(1) Number of areas participating.--The Secretary may 
        approve not more than seventy-five applications nationwide to 
        conduct the program described under this part.
            ``(2) Duration of waivers.--Each waiver provided pursuant 
        to this part shall be for a period of not more than two years, 
        except that the Secretary may extend such period if the 
        Secretary determines that the waiver has been effective in 
        enabling the service delivery area to carry out the purposes of 
        this Act.
            ``(3) Termination of waivers.--The Secretary shall 
        periodically review the performance of any service delivery 
        area for which the Secretary has granted a waiver and shall 
        terminate the waiver under this section if the Secretary 
        determines that the performance of the service delivery area 
        affected by the waiver has been inadequate to justify a 
        continuation of the waiver.
            ``(4) Sunset.--No waivers may be approved or remain in 
        effect under this part after the date that is four years after 
        the date of enactment of the Reemployment Act of 1994.

``SEC. 284. TECHNICAL ASSISTANCE, EVALUATION AND REPORT.

    ``(a) Technical Assistance.--The Secretary may provide appropriate 
technical assistance to service delivery areas, States, and service 
providers in the development and implementation of programs under this 
part.
    ``(b) Evaluation.--
            ``(1) In general.--The Secretary shall provide for the 
        continuing evaluation of programs conducted under this part, 
        including the cost-effectiveness of programs in achieving the 
        purpose of this part.
            ``(2) Techniques.--
                    ``(A) Methods.--Evaluations conducted under 
                paragraph (1) shall utilize recognized statistical 
                methods and techniques of the behavioral and social 
                sciences, including methodologies that control for 
                self-selection, where indicated.
                    ``(B) Analysis.--Such evaluations may include cost 
                benefit analyses of programs, and analyses of the 
                impact of the programs on participants and the 
                community, the extent to which programs meet the needs 
                of various demographic groups, and the effectiveness of 
                the delivery systems used by the various programs.
    ``(c) Report.--Not later than five years after the date of 
enactment of the Reemployment Act of 1994, the Secretary shall submit a 
report to the Congress relating to the evaluation conducted pursuant to 
subsection (a) and containing such recommendations as the Secretary 
determines are appropriate.''.

SEC. 502. MODIFICATION OF TUITION DEFINITION.

    Subparagraph (B) of section 141(d)(3) of the Job Training 
Partnership Act is amended to read as follows:
                    ``(B) Tuition charges for training or education 
                provided by an educational institution, including an 
                institution of higher education (as defined in section 
                1201(a) of the Higher Education Act of 1965), a 
                proprietary institution of higher education (as defined 
                in section 481(b) of such Act), and a postsecondary 
                vocational institution (as defined in section 481(c) of 
                such Act) that are not more than the charges for such 
                training or education made available to the general 
                public, do not require a breakdown of cost 
                components.''.

SEC. 503. EFFECTIVE DATE AND SUNSET.

    (a) Reinvention Lab.--The provisions of section 501, and the 
amendments made by such section, shall take effect on the date of 
enactment of this Act and shall terminate on the date that is five 
years after the date of enactment of this Act.
    (b) Tuition Definition.--The provisions of section 502 and the 
amendments made by such section, shall take effect on the date of 
enactment of this Act.
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