II

103D CONGRESS

2D SESSION S. 2516

To consolidate and reform Federal job training programs to create a world

class workforce development system for the 21st century, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

OCTOBER 6 (legislative day, SEPTEMBER 12), 1994

Mr. KENNEDY introduced the following bill; which was read twice and referred

to the Committee on Labor and Human Resources

A BILL

To consolidate and reform Federal job training programs

to create a world class workforce development system

for the 21st century, and for other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Job Training Consolidation and Reform Act’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings and purpose.

Sec. 3. Authorization of appropriations.

Sec. 4. Definitions.
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TITLE I—FEDERAL RESPONSIBILITIES

Sec. 101. National Workforce Development Board.

Sec. 102. National Report Card.

Sec. 103. Mechanisms for building high quality integrated workforce development systems.

Sec. 104. Centralized waivers.

Sec. 105. Quality assurance system.

TITLE II—STATE RESPONSIBILITIES

Sec. 201. State Workforce Development Councils.

Sec. 202. Membership.

Sec. 203. Chairperson.

Sec. 204. Duties and responsibilities.

Sec. 205. Development of quality assurance systems and consumer reports.

Sec. 206. Administration.

Sec. 207. Establishment of unified service delivery areas.

Sec. 208. Financial and management information systems.

Sec. 209. Capacity building grants.

Sec. 210. Performance standards for unified service delivery areas.

TITLE III—LOCAL RESPONSIBILITIES

Sec. 301. Workforce development boards.

Sec. 302. Workforce development board policy blueprint.

Sec. 303. Report card.

Sec. 304. One-stop career centers.

Sec. 305. Progress reports.

Sec. 306. Capacity building.

Sec. 307. Incentive grants for incumbent worker training.

TITLE IV—CONSOLIDATION

Sec. 401. Purpose; findings; sense of the Congress.

Sec. 402. Integration of youth programs.

Sec. 403. Consolidation of workforce development programs.

Sec. 404. Integration of programs at the local level.

Sec. 405. Sunset of major workforce development programs.

TITLE V—INTEGRATED LABOR MARKET INFORMATION SYSTEM

Sec. 501. Integrated labor market information.

Sec. 502. Responsibilities of the National Board.

Sec. 503. Responsibilities of the Secretary.

Sec. 504. Responsibilities of Governors.

1 SEC. 2. FINDINGS AND PURPOSE.

2 (a) FINDINGS.—Congress finds that—

3 (1) increasing international competition, techno4 logical advances, and structural changes in the

5 United States economy present new challenges to
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1 private firms and public policy makers in creating a

2 skilled workforce with the ability to adapt to change

3 and technological progress;

4 (2) the Federal Government should work with

5 the private sector to create a high performance

6 workforce development system to encourage collabo7 ration among private sector firms and publicly fund8 ed education and training efforts to assist jobseekers

9 and workers adjust to structural economic changes;

10 (3) according to the General Accounting Office,

11 there are currently 154 federally funded employment

12 and training programs (hereafter referred to in sec13 tion as the ‘‘programs’’);

14 (4) the programs cost more than

15 $25,000,000,000 annually and are administered by

16 14 different Federal departments and agencies;

17 (5) although it is necessary for the Federal

18 Government to consolidate or eliminate unnecessary

19 programs, the primary goal of Federal workforce de20 velopment policy should be to help facilitate trans21 actions taking place between jobseekers, workers,

22 and business in local labor markets;

23 (6) in order to bring more coherence to Federal

24 workforce development policy, there should be a sin25 gle entity at the Federal, State, or local level vested
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1 with the necessary authority to strategically plan

2 ways to transform the separate training and employ3 ment programs into an integrated and accountable

4 workforce development system;

5 (7) these Federal, State, and local strategic

6 planning bodies should be structured in such a way

7 to give businesses and workers a meaningful role in

8 shaping policy and overseeing the quality of

9 workforce development programs;

10 (8) while the Federal Government must main11 tain its commitment to provide economically and

12 educationally disadvantaged individuals with skills

13 and support services necessary to succeed in the

14 labor market, Federal workforce development policy

15 must also begin to provide incentives to assist firms

16 to help upgrade the skills of their front-line workers;

17 (9) the United States needs a comprehensive in18 tegrated labor market information system to ensure

19 that workforce development programs are related to

20 the demand for particular skills in local labor mar21 kets, and to ensure that information about the em22 ployment and earnings of the local workforce, and

23 the performance of education and training institu24 tions, will be available to citizens and decision

25 makers;
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1 (10) in recent years, many States and commu2 nities have made progress in developing new ap3 proaches to better integrate Federal employment

4 and training programs;

5 (11) the Federal Government should take more

6 systematic measures to encourage experimentation

7 and flexibility, and to disseminate best practices in

8 the design and implementation of a comprehensive

9 workforce development system throughout the coun10 try; and

11 (12) the Federal Government should address

12 the findings of this subsection through the imple13 mentation of immediate and long-term improvements

14 that result in the establishment of a high quality

15 workforce development system needed for the econ16 omy of the 21st century.

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

18 certain immediate actions, and to establish a process for

19 bringing about longer term improvements, that are needed

20 to begin the transformation of federally funded education

21 and job training efforts from a collection of fragmented

22 programs into a coherent, integrated, accountable

23 workforce development system that—
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1 (1) is based on the needs of jobseekers, work2 ers, and employers, rather than bureaucratic re3 quirements;

4 (2) is accessible to any jobseeker, worker, or

5 employer;

6 (3) focuses on accountability, performance, and

7 accurate information;

8 (4) provides flexibility and responsibility to the

9 States, and in turn to local communities, for design

10 and implementation of workforce development sys11 tems;

12 (5) requires the active involvement of firms and

13 workers in the governance, design, and implementa14 tion of such system;

15 (6) is linked directly to employment and train16 ing opportunities in the private sector; and

17 (7) adopts best practices of quality administra18 tion and management that have been successful in

19 the private sector.

20 SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

21 (a) IN GENERAL.—Subject to subsection (b), there

22 is authorized to be appropriated to carry out titles I, II,

23 III, and IV—

24 (1) $160,000,000 for fiscal year 1996; and
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1 (2) such sums as may be necessary for each of

2 fiscal years 1997 through 1999.

3 (b) LIMITATIONS.—

4 (1) FISCAL YEAR 1996.—In fiscal year 1996, of

5 the funds made available pursuant to subsection

6 (a)—

7 (A) not more than 5 percent shall be used

8 for the activities of the National Board;

9 (B) not more than 10 percent shall be

10 used for incentive grants, pursuant to section

11 307;

12 (C) not more than 15 percent shall be used

13 for development grants, pursuant to section

14 103(a); and

15 (D) not less than 70 percent shall be used

16 for implementation grants, pursuant to section

17 103(b).

18 (2) FISCAL YEARS 1997 THROUGH 1999.—In

19 each of fiscal years 1997 through 1999, of the funds

20 made available pursuant to subsection (a)—

21 (A) not more than 5 percent shall be used

22 for the activities of the National Board;

23 (B) not more than 10 percent shall be

24 used for incentive grants, pursuant to section

25 307; and
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1 (C) not less than 85 percent shall be used

2 for implementation grants, pursuant to section

3 103(b).

4 (c) INTEGRATED LABOR MARKET INFORMATION SYS5 TEM.—To carry out title V, there is authorized to be ap6 propriated—

7 (1) $90,000,000 for fiscal year 1996; and

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

9 succeeding fiscal year.

10 SEC. 4. DEFINITIONS.

11 For purposes of this Act—

12 (1) the term ‘‘development grant’’ means a

13 grant provided to each State under section 103(a);

14 (2) the term ‘‘implementation grant’’ means a

15 grant provided under section 103(b);

16 (3) the term ‘‘leading edge State’’ means a

17 State that has been awarded an implementation

18 grant under section 103(b);

19 (4) the term ‘‘workforce development program’’

20 means any of the more than 150 federally funded

21 job training programs identified by the General Ac22 counting Office in testimony on March 3, 1994, be23 fore the Subcommittee on Employment, Housing

24 and Aviation of the Committee on Government Op25 erations of the House of Representatives, and any
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1 State-funded program that provides job training as2 sistance to individuals or assists employers to iden3 tify or train workers;

4 (5) the terms ‘‘integrated workforce develop5 ment system’’ and ‘‘integrated system’’ mean the

6 system of employment, training, and employment-re7 lated education programs, including the mandatory

8 programs described in section 404(a) and any addi9 tional Federal or State programs designated by the

10 Governor of a State, comprising the consolidated

11 system pursuant to section 404(b);

12 (6) the term ‘‘National Board’’ means the Na13 tional Workforce Development Board established

14 under section 101(b);

15 (7) the term ‘‘Federal Blueprint’’ means the

16 National Workforce Development Strategic Plan is17 sued by the National Board pursuant to section

18 101(c)(1);

19 (8) the term ‘‘National Report Card’’ means

20 the Nation’s Workforce Development Report Card

21 prepared pursuant to section 102;

22 (9) the term ‘‘State Council’’ means a State

23 Workforce Development Council established pursu24 ant to section 201;
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1 (10) the term ‘‘State Blueprint’’ means the

2 State Workforce Development Policy Blueprint pre3 pared pursuant to section 204(a);

4 (11) the term ‘‘State Report Card’’ means the

5 State Workforce Development Report Card issued

6 pursuant to section 204(b);

7 (12) the term ‘‘workforce development board’’

8 means a local board established pursuant to section

9 301;

10 (13) the term ‘‘unified service delivery area’’

11 means the common geographic service area bound12 aries established pursuant to section 207 and over13 seen by a workforce development board;

14 (14) the term ‘‘one-stop career center’’ means

15 an access point for intake, assessment, referral, and

16 placement services, including services provided elec17 tronically, that is part of the network established

18 pursuant to section 304;

19 (15) the term ‘‘hard-to-serve’’ means an indi20 vidual meeting the requirements of section 203(b) of

21 the Job Training Partnership Act (29 U.S.C.

22 1603(b)); and

23 (16) the term ‘‘Secretary’’ means the Secretary

24 of Labor, unless the context suggests otherwise.
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1 TITLE I—FEDERAL

2 RESPONSIBILITIES

3 SEC. 101. NATIONAL WORKFORCE DEVELOPMENT BOARD.

4 (a) FINDINGS.—Congress finds that a national

5 workforce development board is necessary to—

6 (1) oversee the establishment and continuous

7 improvement of the national workforce development

8 system;

9 (2) provide policy guidance to enhance strategic

10 planning among the Federal agencies responsible for

11 administering job training programs;

12 (3) bring private sector expertise to the govern13 ance of the national workforce development system;

14 and

15 (4) take active steps to remove the legislative

16 and regulatory barriers to service integration.

17 (b) ESTABLISHMENT.—

18 (1) IN GENERAL.—There is established the Na19 tional Workforce Development Board (referred to in

20 this Act as the ‘‘National Board’’).

21 (2) COMPOSITION.—The National Board shall

22 be comprised of 9 members, of whom—

23 (A) one member shall be the Secretary of

24 Labor;
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1 (B) one member shall be the Secretary of

2 Education;

3 (C) one member shall be the Secretary of

4 Health and Human Services;

5 (D) three members shall be representatives

6 of business (including representatives of small

7 businesses and large employers);

8 (E) two members shall be representatives

9 of organized labor; and

10 (F) one member shall be selected from rep11 resentatives of—

12 (i) community-based organizations;

13 (ii) State and local governments; or

14 (iii) nongovernmental organizations

15 that have a history of successfully protect16 ing the rights of individuals with disabil17 ities or older persons.

18 (3) ADDITIONAL REQUIREMENTS.—The mem19 bers described in subparagraphs (D), (E), and (F)

20 of paragraph (2) shall—

21 (A) in the aggregate, represent a broad

22 cross-section of occupations and industries;

23 (B) to the extent feasible, be geographi24 cally representative of the United States, and
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1 reflect the racial, ethnic, and gender diversity of

2 the United States; and

3 (C) one member shall be a member of the

4 National Skill Standards Board established

5 pursuant to the National Skill Standards Act of

6 1994.

7 (4) EXPERTISE.—The National Board and the

8 staff shall have sufficient expertise to effectively

9 carry out the duties and functions of the National

10 Board.

11 (5) BUSINESS AND LABOR ADVISORY COMMIT12 TEES.—The National Board may establish a busi13 ness advisory committee and a labor advisory com14 mittee which shall be comprised of members who are

15 appointed to the National Board pursuant to sub16 paragraphs (D) and (E) of paragraph (2), respec17 tively, and members who are not on the National

18 Board, to assist the National Board to carry out its

19 duties pursuant to subsection (c).

20 (6) APPOINTMENT.—The members described in

21 subparagraphs (D), (E), and (F) of paragraph (2)

22 shall be appointed by the President, by and with the

23 advice and consent of the Senate.

24 (7) EX OFFICIO NONVOTING MEMBERS.—The

25 Director of the Office of Management and Budget,
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1 the Secretary of Commerce, the chairpersons and

2 ranking minority members of the Committee on

3 Labor and Human Resources of the Senate and the

4 Committee on Education and Labor of the House of

5 Representatives shall be ex officio, nonvoting mem6 bers of the National Board.

7 (8) TERMS.—Each member of the National

8 Board appointed under subparagraph (D), (E), and

9 (F) of paragraph (2) shall be appointed for a term

10 of 4 years, except that of the initial members of the

11 National Board appointed under such subpara12 graphs—

13 (A) two members shall be appointed for a

14 term of 2 years;

15 (B) two members shall be appointed for a

16 term of 3 years; and

17 (C) two members shall be appointed for a

18 term of 4 years.

19 (9) VACANCIES.—Any vacancy on the National

20 Board shall not affect the powers of the National

21 Board, but shall be filled in the same manner as the

22 original appointments.

23 (10) CHAIRPERSONS.—The President, by and

24 with the advice and consent of the Senate, shall se25 lect one co-chairperson of the National Board from
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1 among the members of the National Board ap2 pointed under paragraph (2)(D) and one co-chair3 person from among the members appointed pursuant

4 to paragraph (2)(E).

5 (11) COMPENSATION AND EXPENSES.—

6 (A) COMPENSATION.—Each member of the

7 National Board who is not a full-time employee

8 or officer of the Federal Government shall serve

9 without compensation. Each member of the Na10 tional Board who is an officer or employee of

11 the Federal Government shall serve without

12 compensation in addition to that received for

13 the services of such member as an officer or

14 employee of the Federal Government.

15 (B) EXPENSES.—The members of the Na16 tional Board shall be allowed travel expenses,

17 including per diem in lieu of subsistence, at

18 rates authorized for employees of agencies

19 under subchapter I of chapter 57 of title 5,

20 United States Code, while away from their

21 homes or regular places of business in the per22 formance of services for the National Board.

23 (12) EXECUTIVE DIRECTOR AND STAFF.—

24 (A) EXECUTIVE DIRECTOR.—The co-chair25 persons of the National Board shall appoint an
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1 Executive Director who shall be compensated at

2 a rate determined by the National Board, not

3 to exceed the rate payable for level V of the Ex4 ecutive Schedule under section 5316 of title 5,

5 United States Code.

6 (B) STAFF.—The Executive Director

7 may—

8 (i) appoint and compensate such addi9 tional staff as may be necessary to enable

10 the National Board to perform its duties;

11 and

12 (ii) fix the compensation of the staff

13 without regard to the provisions of chapter

14 51 and subchapter III of chapter 53 of

15 title 5, United States Code, relating to

16 classifications of positions and General

17 Schedule pay rates, except that the rate of

18 pay for the staff may not exceed the rate

19 payable for level V of the Executive Sched20 ule under section 5316 of such title.

21 (13) VOLUNTARY AND UNCOMPENSATED SERV22 ICES.—Notwithstanding section 1342 of title 31,

23 United States Code, the National Board is author24 ized, in carrying out this Act, to accept voluntary

25 and uncompensated services.
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1 (14) AGENCY SUPPORT.—

2 (A) USE OF FACILITIES.—The National

3 Board may use the research, equipment, serv4 ices, and facilities of any agency or instrumen5 tality of the United States with the consent of

6 such agency or instrumentality.

7 (B) STAFF OF FEDERAL AGENCIES.—Upon

8 the request of the National Board, the head of

9 any Federal agency may detail to the National

10 Board, on a reimbursable basis, any of the per11 sonnel of such Federal agency to assist the Na12 tional Board in carrying out this Act. Such de13 tail shall be without interruption or loss of civil

14 service status or privilege.

15 (15) PROCUREMENT OF TEMPORARY AND

16 INTERMITTENT SERVICES.—The co-chairpersons of

17 the National Board may procure temporary and

18 intermittent services of experts and consultants

19 under section 3109(b) of title 5, United States Code.

20 (16) NATIONAL COMMISSION FOR EMPLOYMENT

21 POLICY.—

22 (A) IN GENERAL.—Part F of title IV of

23 the Job Training Partnership Act (29 U.S.C.

24 1771 et seq.) is repealed.
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1 (B) CONFORMING AMENDMENT.—Sub2 section (i) of section 106 of such Act (29

3 U.S.C. 1516(i)) is amended by striking ‘‘(i)

4 FUNCTIONS OF NCEP.—The National Commis5 sion for Employment Policy’’ and inserting ‘‘(i)

6 FUNCTIONS OF NATIONAL WORKFORCE DE7 VELOPMENT BOARD.—The National Workforce

8 Development Board established under section

9 101 of the Job Training Consolidation and Re10 form Act’’.

11 (c) DUTIES.—

12 (1) NATIONAL WORKFORCE DEVELOPMENT

13 STRATEGIC PLAN.—

14 (A) IN GENERAL.—Not later than July 1,

15 1995, and every 2 years thereafter, the Na16 tional Board shall issue a National Workforce

17 Development Strategic Plan (referred to in this

18 Act as the ‘‘Federal Blueprint’’).

19 (B) REQUIREMENTS.—The Federal Blue20 print shall evaluate the progress being made to21 ward streamlining, consolidating, and reforming

22 the workforce development system of the United

23 States, and toward the purposes described in

24 section 2(b). The Federal Blueprint shall—
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1 (i) compare the preparedness of the

2 workforce of the United States with the

3 workforce of other countries;

4 (ii) serve as a strategic plan to guide

5 the integration of federally funded

6 workforce development programs into a

7 streamlined system;

8 (iii) assess the lessons learned from

9 the experience of leading edge States, and

10 States that waive certain program require11 ments to experiment with alternative

12 workforce development strategies;

13 (iv) analyze how businesses are—

14 (I) progressing in the restructur15 ing of the workplace to provide contin16 uous learning for their employees;

17 (II) improving the skills and

18 abilities of the front-line workers of

19 such businesses; and

20 (III) taking measures to inte21 grate public workforce development

22 programs into private sector training

23 systems;

24 (v) make recommendations to Con25 gress and the President on ways to im-
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1 prove linkages between federally funded

2 business modernization programs and fed3 erally funded workforce development pro4 grams;

5 (vi) include a research agenda for the

6 National Board to carry out its activities;

7 (vii) evaluate the labor market infor8 mation of the Nation and recommend

9 areas in need of improvement; and

10 (viii) based on the evaluation of the

11 progress being made toward the develop12 ment of an integrated, accountable, effec13 tive workforce development system, as de14 scribed in the National Report Card, make

15 recommendations to Congress and the

16 President on ways to promote further

17 streamlining, consolidation, and reform.

18 (2) CONGRESSIONAL TESTIMONY.—The co19 chairpersons of the National Board shall, at least

20 annually, provide testimony, during a joint hearing

21 before the Committee on Labor and Human Re22 sources of the Senate and the Committee on Edu23 cation and Labor of the House of Representatives on

24 the progress being made in developing a more inte-
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1 grated and accountable public and private workforce

2 development system in the United States.

3 (3) EMPLOYER AND WORKER TRAINING.—Not

4 later than 180 days after the date of enactment of

5 this Act, the National Board shall make rec6 ommendations to Congress and the President on

7 what measures can be taken, including changes in

8 the tax codes, to encourage employers and workers

9 to invest in training and skills upgrading, and to en10 courage employers to hire and train hard-to-serve in11 dividuals.

12 (4) REVIEW OF GRANT PROPOSALS.—The Na13 tional Board shall review the implementation grant

14 proposals pursuant to section 103(b) and the incen15 tive grant proposals submitted pursuant to section

16 307, and make recommendations to the Secretary

17 regarding such proposals.

18 (5) COORDINATION WITH THE NATIONAL SKILL

19 STANDARDS BOARD.—The National Board shall an20 nually hold a joint meeting with the National Skill

21 Standards Board established pursuant to section

22 503 of the National Skill Standards Act to ensure

23 that Federal efforts to reform and streamline the

24 Nation’s workforce development system are inte25 grated and coordinated.
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1 (6) FINAL RECOMMENDATIONS.—Not later than

2 June 1, 1999, the National Board shall submit rec3 ommendations in the form of a joint resolution to

4 the President and Congress, pursuant to section

5 403(b).

6 SEC. 102. NATIONAL REPORT CARD.

7 (a) IN GENERAL.—Not later than July 1, 1996, and

8 each July 1 thereafter, the National Board shall prepare

9 a report to be known as the Nation’s Workforce Develop10 ment Report Card (referred to in this Act as the ‘‘National

11 Report Card’’).

12 (b) REQUIREMENTS.—The National Report Card

13 shall assess the performance of the workforce development

14 system of the United States, based on the earnings and

15 employment gains and other nonemployment-related out16 comes of individuals assisted by the programs comprising

17 such system. The National Report Card shall evaluate all

18 workforce development programs that receive Federal

19 funding, and shall—

20 (1) assess the performance of each program;

21 (2) assess performance based on the type of as22 sistance provided, including the categories of services

23 identified in section 105(b)(1)(C);

24 (3) assess year-to-year changes in performance;
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1 (4) report on the extent to which hard-to-serve

2 populations are receiving services and the related

3 outcomes in relation to services received in the pre4 ceding three years;

5 (5) determine the annual Federal investment in

6 workforce development in each State; and

7 (6) assess the performance of the workforce de8 velopment system in each State.

9 SEC. 103. MECHANISMS FOR BUILDING HIGH QUALITY IN10 TEGRATED WORKFORCE DEVELOPMENT SYS11 TEMS.

12 (a) STATE DEVELOPMENT GRANTS.—

13 (1) PURPOSE.—The purpose of this subsection

14 is to assist States and communities in strategic

15 planning for integrated workforce development sys16 tems, including the development of a financial and

17 management information system, a quality assur18 ance system, and an integrated labor market infor19 mation system.

20 (2) GRANTS TO STATES.—On the application of

21 the Governor of a State, on behalf of the State, the

22 Secretary may provide a development grant to the

23 State in such amount as the Secretary, in consulta24 tion with the National Board, determines to be nec25 essary to enable such State to develop a strategic
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1 plan pursuant to paragraph (1) for the development

2 of a comprehensive statewide integrated workforce

3 development system.

4 (3) APPLICATION.—To be eligible to receive a

5 development grant under this subsection, the Gov6 ernor of a State, on behalf of the State, shall submit

7 to the National Board and the Secretary an applica8 tion, at such time, in such form, and containing

9 such information as the Secretary may require.

10 (b) IMPLEMENTATION GRANTS TO LEADING EDGE

11 STATES.—

12 (1) PURPOSE.—The purpose of this subsection

13 is to assist States in the implementation of statewide

14 high quality integrated workforce development sys15 tems that are accountable for achieving results.

16 (2) GRANTS TO STATES.—On the application of

17 a Governor of a State, on behalf of the State, in ac18 cordance with paragraph (6), the Secretary, in con19 sultation with the National Board, may provide an

20 implementation grant to the State in such amount

21 as the Secretary determines to be necessary to en22 able such State to implement an integrated

23 workforce development system.

24 (3) PERIOD OF GRANT.—The provision of pay25 ments under a grant under this subsection shall not
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1 exceed 4 fiscal years, and shall be subject to the an2 nual approval of the Secretary, in consultation with

3 the National Board, and the availability of appro4 priations for the fiscal year involved.

5 (4) ALLOCATION REQUIREMENTS.—

6 (A) FIRST YEAR.—In the first fiscal year

7 in which a State receives amounts from an im8 plementation grant under subsection (b), the

9 State shall use not less than 75 percent of such

10 amount to provide subgrants to local workforce

11 development boards.

12 (B) SECOND YEAR.—In the second fiscal

13 year in which a State receives amounts from an

14 implementation grant under subsection (b), the

15 State shall use not less than 80 percent of such

16 amount to provide subgrants to local workforce

17 development boards.

18 (C) THIRD AND SUCCEEDING YEARS.—In

19 the third, and each succeeding, fiscal year in

20 which a State receives amounts from an imple21 mentation grant under subsection (b), the State

22 shall use not less than 85 percent of such

23 amount to provide subgrants to local workforce

24 development boards.
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1 (5) LIMITATION.—A State shall be eligible to

2 receive not more than 1 implementation grant under

3 this subsection.

4 (6) APPLICATION.—To be eligible to receive an

5 implementation grant under this subsection, the

6 Governor of a State, on behalf of the State, shall

7 submit to the National Board and the Secretary an

8 application that shall include a copy of the State

9 Blueprint and such other information as the Sec10 retary, with the advice of the National Board, may

11 require.

12 (c) DISSEMINATION OF INFORMATION ON BEST

13 PRACTICES.—

14 (1) IN GENERAL.—The Secretary, in consulta15 tion with the National Board, shall—

16 (A) collect and disseminate information

17 that will assist State and local communities un18 dertaking activities to streamline and reform

19 their job training systems, including informa20 tion on—

21 (i) the successful experiences of States

22 and localities that have received develop23 ment or implementation grants, or that

24 have been granted waivers; and
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1 (ii) research concerning the restruc2 turing of workforce development systems;

3 and

4 (B) facilitate the exchange of information

5 and ideas among States and local entities carry6 ing out job training reform initiatives.

7 (2) USE OF INFORMATION CLEARINGHOUSES

8 AND OTHER ENTITIES.—To carry out this sub9 section, the Secretary and the National Board shall

10 utilize such mechanisms as—

11 (A) the Capacity Building and Information

12 Dissemination Network established pursuant to

13 section 453(b) of the Job Training Partnership

14 Act (29 U.S.C. 1733(b));

15 (B) the education resources information

16 center clearinghouses referred to in the General

17 Education Provisions Act (20 U.S.C. 1221e);

18 (C) the National Network for Curriculum

19 Coordination in Vocational and Technical Edu20 cation established under section 402(c)(2) of

21 the Carl D. Perkins Vocational and Applied

22 Technology Education Act (20 U.S.C.

23 2402(c)(2));
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1 (D) the National Institute for Literacy es2 tablished under section 384 of the Adult Edu3 cation Act (20 U.S.C. 1213c); and

4 (E) the State Literacy Resource Centers

5 established under section 356 of such Act (20

6 U.S.C. 1208aa).

7 (d) WORKFORCE DEVELOPMENT IMPACT RE8 PORTS.—

9 (1) SUBMISSION.—For each bill or resolution

10 concerning workforce development reported by any

11 committee of the Senate or the House of Represent12 atives, the National Board shall determine whether

13 proposed Federal job training legislation complies

14 with the data reporting, common definitions, and

15 common funding cycles described in subsections (b)

16 and (e) of section 105. A determination of compli17 ance by the National Board under this subsection

18 shall be included in the committee report accom19 panying such legislation, if timely submitted to such

20 committee before such report is filed.

21 (2) PROCEDURE.—It shall not be in order in

22 the Senate or the House of Representatives to con23 sider any bill or resolution concerning workforce de24 velopment that would not comply with the national
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1 workforce development system, as determined by the

2 National Board under paragraph (1).

3 (3) WAIVER.—This subsection may be waived

4 or suspended in the Senate or the House of Rep5 resentatives only by the affirmative vote of three6 fifths of the members of such House.

7 SEC. 104. CENTRALIZED WAIVERS.

8 (a) EXPEDITED PROCESS.—Not later than 180 days

9 after the date of enactment of this Act, the President shall

10 establish an expedited process to consider and act on waiv11 er requests submitted by the States under this section.

12 (b) STATES NOT RECEIVING IMPLEMENTATION

13 GRANTS.—

14 (1) IN GENERAL.—Any State may apply, in ac15 cordance with this section, for a waiver relating to

16 provisions of law or regulations for one or more of

17 the programs listed in section 404(a), for a period

18 of 2 years to facilitate the provision of assistance for

19 workforce development.

20 (2) WAIVER AUTHORITY.—A waiver may be

21 granted under this subsection only if—

22 (A) the requirement sought to be waived

23 impedes the ability of the State, or a local en24 tity in the States, to carry out the State or

25 local workforce development plan;
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1 (B) the State has waived, or agrees to

2 waive, similar requirements of State law; and

3 (C) in the case of a statewide waiver, the

4 State—

5 (i) provides all State and local agen6 cies and appropriate organizations in the

7 State with notice and an opportunity to

8 comment on the State’s proposal to seek a

9 waiver; and

10 (ii) submits the affected agency’s com11 ments with the waiver application.

12 (3) APPLICATION.—Each application submitted

13 under this subsection shall—

14 (A) identify the statutory or regulatory re15 quirements that are requested to be waived and

16 the goals that the State or local agency intends

17 to achieve;

18 (B) describe the action that the State has

19 undertaken to remove State statutory or regu20 latory barriers identified in the application;

21 (C) describe the goals of the waiver and

22 the expected programmatic outcomes if the re23 quest is granted;

24 (D) describe the numbers and types of peo25 ple to be affected by such waiver;
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1 (E) describe a timetable for implementing

2 the waiver;

3 (F) describe the process the State will use

4 to monitor, on a biannual basis, the progress in

5 implementing the waiver; and

6 (G) describe how the goals of the waived

7 program or programs will continue to be met.

8 (c) STATES RECEIVING IMPLEMENTATION

9 GRANTS.—Subject to subsection (d), each State receiving

10 an implementation grant under section 103(b) shall have

11 the provisions of law, or regulations under such provisions,

12 described in its grant application or State Blueprint of

13 such State waived for the duration of the implementation

14 grant.

15 (d) LIMITATIONS.—

16 (1) IN GENERAL.—A waiver shall not be grant17 ed of a provision of law (or a regulation under such

18 provision) under a workforce development program if

19 such waiver would alter—

20 (A) the purposes or goals of such program;

21 (B) the allocation of funds under such pro22 gram;

23 (C) any provision of law under such pro24 gram relating to public health or safety, civil

25 rights, protections granted under title I and
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1 sections 503 and 504 of the Rehabilitation Act

2 of 1973 (29 U.S.C. 701 et seq.), occupational

3 safety and health, environmental protection,

4 displacement of current employees, or fraud

5 and abuse; or

6 (D) eligibility requirements under such

7 program, except that a waiver may be granted

8 with respect to an eligibility requirement if such

9 waiver would provide for increased flexibility in

10 developing common definitions for individuals

11 eligible for such program.

12 (2) CIRCULARS AND RELATED REGULATIONS.—

13 The following circulars promulgated by the Office of

14 Management and Budget shall be subject to the

15 waiver authority of this subsection:

16 (A) A–87, relating to cost principles for

17 State and local governments.

18 (B) A–102, relating to grants and coopera19 tive agreements with State and local govern20 ments.

21 (C) A–122, relating to nonprofit organiza22 tions.

23 (D) A–110, relating to administrative re24 quirements for grants and cooperative agree-
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1 ments with nonprofit organizations and institu2 tions of higher education.

3 (E) A–21, relating to cost principles for in4 stitutions of higher education.

5 (3) EFFECTIVE DATE.—A waiver granted under

6 this section shall take effect on the date such waiver

7 is granted.

8 (4) REVIEW OF APPLICATION.—Each applica9 tion submitted by a State pursuant to paragraph (3)

10 shall be reviewed by the Secretary or agency head

11 who has jurisdiction over the workforce development

12 program or programs to which such waiver request

13 relates.

14 (5) APPROVAL OR DISAPPROVAL OF APPLICA15 TION.—

16 (A) TIMING.—Each application submitted

17 by a State in accordance with subsection (b)(3)

18 shall be reviewed promptly upon receipt, and

19 shall be approved or disapproved not later than

20 the end of the 60-day period beginning on the

21 date such application is received.

22 (B) APPROVAL.—Waiver or waivers pro23 posed in an application may be approved for the

24 2-year period beginning on the date such appli25 cation is approved, if the State demonstrates in
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1 the application that such waiver or waivers

2 would achieve coordination, expansion, and im3 provement in the quality of services under its

4 workforce development system.

5 (C) DISAPPROVAL AND RESUBMISSION.—If

6 an application is incomplete or unsatisfactory,

7 the appropriated Federal official shall, before

8 the end of the period referred to in subpara9 graph (A)—

10 (i) notify the State of the reasons for

11 the failure to approve the application;

12 (ii) notify the State that the applica13 tion may be resubmitted during the period

14 referred to in clause (iii); and

15 (iii) permit the State to resubmit a

16 corrected or amended application during

17 the 60-day period beginning on notification

18 under this subparagraph.

19 (D) REVIEW OF RESUBMITTED APPLICA20 TION.—Any application resubmitted under sub21 paragraph (C) shall be approved or disapproved

22 before the expiration of the 60-day period be23 ginning on the date of the resubmission.

24 (6) REVOCATION OF WAIVER.—If, after approv25 ing an application under this subsection, it is found
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1 that the waiver or waivers do not achieve coordina2 tion, expansion, and improvement in the quality of

3 services under the workforce development programs

4 to which such waiver or waivers relate, the waiver or

5 waivers may be revoked in whole or in part.

6 (7) NOTIFICATION OF INSPECTOR GENERAL.—

7 The inspector general of any Federal agency that

8 has jurisdiction over a workforce development pro9 gram for which a waiver or waivers has been ap10 proved shall be notified of the grant of such waiver.

11 SEC. 105. QUALITY ASSURANCE SYSTEM.

12 (a) PURPOSE.—The purpose of this section is to im13 prove the quality of all Federal programs directed at im14 proving the knowledge, skills, and abilities of members of

15 the workforce by strengthening accountability and encour16 aging the adoption of quality improvement processes at

17 all levels of the workforce development system. In order

18 to accomplish this purpose, this Act—

19 (1) directs the Secretaries of Labor, Education,

20 and Health and Human Services to jointly, in con21 sultation with the National Board—

22 (A) develop common terms and definitions

23 as described in subsection (b);

24 (B) develop a placement accountability sys25 tem as described in subsection (c); and
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1 (C) adjust existing program performance

2 standards as described in section 210; and

3 (2) directs the National Board to recommend a

4 system of performance standards in its joint resolu5 tion submitted to Congress pursuant to section

6 403(b) that includes standard outcome measures re7 lating to—

8 (A) employment;

9 (B) job retention;

10 (C) earnings; and

11 (D) nonemployment outcome measures

12 (such as learning and competency gains).

13 (b) COMMON TERMS AND DEFINITIONS.—

14 (1) IN GENERAL.—Each workforce development

15 program that receives Federal funds shall collect

16 and report to the Governor and the State Council,

17 if applicable, for each participant to whom assist18 ance is provided, the following information:

19 (A) The quarterly employment status and

20 earnings for 1 year after the participant no

21 longer receives assistance under such program.

22 (B) Economic and demographic character23 istics, including the participant’s—

24 (i) social security number;

25 (ii) date of birth;
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1 (iii) gender;

2 (iv) race or ethnicity;

3 (v) disability status;

4 (vi) education (highest formal grade

5 level achieved at commencement of partici6 pation in program);

7 (vii) academic degrees and credentials

8 at time of entry into the program; and

9 (viii) employment status at time of

10 entry into the program, including—

11 (I) scheduled hours of work per

12 week (if employed);

13 (II) weeks of unemployment (if

14 not employed);

15 (III) status as a homeless indi16 vidual;

17 (IV) veteran status; and

18 (V) information regarding the re19 ceipt by the individual of public finan20 cial assistance (including Federal,

21 State, and local assistance).

22 (C) Services received, the extent, when ap23 propriate, and spending for such services, in24 cluding—

25 (i) assessments;
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1 (ii) testing;

2 (iii) counseling;

3 (iv) job development or job search as4 sistance;

5 (v) occupational skills training, includ6 ing on-the-job training;

7 (vi) work experience;

8 (vii) job readiness training;

9 (viii) basic skills education;

10 (ix) postsecondary academic education

11 (nonoccupational); and

12 (x) supportive and supplementary

13 services.

14 (D) Program outcomes, as specified by the

15 State, such as—

16 (i) advancement to higher level edu17 cation or training;

18 (ii) attainment of additional degrees

19 or credentials (including skill standards as

20 such standards become available);

21 (iii) assessment of learning gain in

22 basic skills programs;

23 (iv) attainment and retention of sub24 sidized or unsubsidized employment;

25 (v) quarterly earnings; and
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1 (vi) reduction in welfare dependency.

2 (E) Other data elements that may be

3 added to the items required to be collected and

4 reported for all program participants, as the

5 National Board develops additional standard

6 definitions, including—

7 (i) date of entry into the program and

8 date of exit from the program;

9 (ii) program applicant, program par10 ticipant, and program terminee; and

11 (iii) attainment of recognized skills

12 standards.

13 (2) REPLACEMENT OF EXISTING REQUIRE14 MENTS.—Program monitoring under this section

15 shall supplant existing monitoring and reporting re16 quirements for program participants.

17 (3) ADOPTION OF COMMON TERMS AND DEFINI18 TIONS.—

19 (A) REPORT.—Not later than 180 days

20 after the date of enactment of this Act, each

21 Federal department and agency with respon22 sibility for a workforce development program

23 shall report to the National Board on its

24 progress in adopting the common terms and

25 definitions for program participants, service ac-
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1 tivities, and outcomes by program operators

2 and grant recipients.

3 (B) IMPLEMENTATION.—Not later than 1

4 year after the date of enactment of this Act,

5 each workforce development program receiving

6 Federal funds shall use the common terms and

7 definitions.

8 (C) USE.—Upon adoption by the appro9 priate Federal agencies, the common definitions

10 for terminology developed and reported pursu11 ant to section 455 of the Job Training Partner12 ship Act (29 U.S.C. 1735(b)) shall be utilized

13 in interpreting and compiling the core data ele14 ments. Notwithstanding any other provision of

15 Federal law, such common definitions shall be

16 utilized in lieu of existing program definitions

17 for similar data elements.

18 (4) RECOMMENDATIONS.—Not later than 180

19 days after the date all of the Members of the Na20 tional Board are appointed, the National Board shall

21 make recommendations to the Secretaries of Labor,

22 Education, and Health and Human Services, and

23 the heads of other agencies operating workforce de24 velopment programs, on common definitions for

25 other terms, including terms relating to—
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1 (A) program status, including—

2 (i) applicant;

3 (ii) participant;

4 (iii) terminee; and

5 (iv) training-related placement;

6 (B) program eligibility, including—

7 (i) family income; and

8 (ii) economically disadvantaged indi9 viduals; and

10 (C) other terms considered appropriate by

11 the National Board, such as common cost cat12 egories.

13 (5) AMENDMENTS.—If any of the proposed

14 common definitions require amendment to existing

15 laws, the National Board shall submit to Congress

16 recommendations for legislative action not later than

17 9 months after the date all of the members of the

18 National Board are appointed.

19 (c) PLACEMENT ACCOUNTABILITY.—

20 (1) IN GENERAL.—The purpose of this sub21 section is to establish a placement accountability

22 system using a cost-effective data source with infor23 mation on job placement, earnings, and job reten24 tion, to foster accountability by all federally funded

25 workforce development programs.
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1 (2) PERFORMANCE MONITORING.—Each

2 workforce development program that receives Fed3 eral funds shall—

4 (A) engage in continuous performance self5 monitoring by measuring, at a minimum, the

6 quarterly employment status and earnings of

7 each recipient of assistance under such pro8 gram; and

9 (B) monitor each recipient of assistance

10 for a period of not less than 1 year, beginning

11 on the date on which the recipient no longer re12 ceives assistance under such program.

13 (3) INFORMATION MATCHING.—

14 (A) CORE DATA.—Each workforce develop15 ment program that receives Federal funds shall

16 provide the information described in subsection

17 (b) regarding program participants to the State

18 agency responsible for labor market information

19 designated in title V.

20 (B) MATCHING.—The State agency re21 sponsible for labor market information des22 ignated in title V shall, in conjunction with the

23 Bureau of Labor Statistics, match the informa24 tion provided pursuant to subparagraph (A)
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1 with quarterly employment and earnings

2 records.

3 (4) REIMBURSEMENT.—Requesting programs

4 shall reimburse the State agency responsible for

5 wage record data for the cost of matching such in6 formation. Notwithstanding any other provision of

7 Federal law, requesting programs may use Federal

8 funds for such reimbursement.

9 (5) CONFIDENTIALITY.—Requesting pro10 grams—

11 (A) shall protect the confidentiality of

12 wage record data through the use of recognized

13 security procedures; and

14 (B) may not retain such data for more

15 than 10 years.

16 (6) SUBMISSION TO STATE COUNCIL.—The

17 State agency responsible for labor market informa18 tion shall submit the results of the matching to the

19 State Council, in accordance with procedures and

20 schedules specified by the National Board and the

21 Secretary.

22 (7) RESPONSIBILITY OF GOVERNORS.—The

23 Governor of each State shall ensure the submission

24 of the matched data to the State Council, the Na-
44

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1 tional Board, the Secretary, and other Federal enti2 ties, as required by the National Board.

3 (d) DISSEMINATION OF QUALITY ASSURANCE.—The

4 information obtained under subsection (c) shall be made

5 available to—

6 (1) the State Council of the State in which the

7 program is located;

8 (2) the local workforce development boards in

9 the State in which the program is located; and

10 (3) consumers of labor market information to

11 judge individual program performance in an easily

12 accessible format.

13 (e) CONSISTENT FUNDING CYCLES.—

14 (1) IN GENERAL.—All federally funded

15 workforce development training activities shall, to

16 the extent practicable, be funded on a consistent

17 funding cycle basis.

18 (2) RECOMMENDATIONS FOR FUNDING

19 CYCLE.—Not later than 180 days after the date on

20 which all of the members of the National Board are

21 appointed, the National Board shall make rec22 ommendations to Congress on the appropriate fund23 ing cycle to be used for all workforce development

24 programs and activities.
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1 TITLE II—STATE

2 RESPONSIBILITIES

3 SEC. 201. STATE WORKFORCE DEVELOPMENT COUNCILS.

4 (a) ESTABLISHMENT.—Each State desiring to par5 ticipate in the development of an integrated and account6 able workforce development system under the procedures

7 specified in section 103(b) shall establish a State

8 Workforce Development Council (referred to in this Act

9 as a ‘‘State Council’’) or have located within such State

10 an existing entity that is similar to a State Council and

11 that includes members who are representatives of employ12 ers and workers.

13 (b) PURPOSE.—Each State Council shall serve as the

14 principal advisory board for the Governor of such State

15 for all programs included in the State’s integrated

16 workforce development system.

17 (c) FUNCTIONS.—Each State Council shall assume

18 the functions and responsibilities of councils and commis19 sions required under Federal law that are part of the inte20 grated workforce development system of such State.

21 SEC. 202. MEMBERSHIP.

22 (a) IN GENERAL.—

23 (1) REPRESENTATIVES OF BUSINESS AND IN24 DUSTRY AND ORGANIZED LABOR.—Each State

25 Council shall be comprised of individuals who are
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1 appointed by the Governor for a term of not less

2 than 2 years from among—

3 (A) representatives of business and indus4 try, who shall constitute not less than 33 per5 cent of the membership of the State Council,

6 including individuals who are members of local

7 workforce development boards; and

8 (B) representatives of organized labor who

9 shall constitute not less than 25 percent of the

10 membership of the State Council and shall be

11 selected from among individuals nominated by

12 recognized State labor federations.

13 (2) ADDITIONAL MEMBERS.—Each State Coun14 cil may include one or more qualified members who

15 are appointed by the Governor from among rep16 resentatives of the following:

17 (A) Postsecondary institutions.

18 (B) Secondary or postsecondary vocational

19 education institutions.

20 (C) Community-based organizations.

21 (D) Nongovernmental organizations that

22 have a history of successfully protecting the

23 rights of individuals with disabilities or older

24 persons.
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1 (E) Units of general local government or

2 consortia of such units.

3 (F) State officials responsible for admin4 istering programs listed in sections 402 and

5 404(a), and included in the integrated system.

6 (G) The State legislature.

7 (H) Any local program that receives Fed8 eral funding from any program included in the

9 integrated workforce development system of the

10 State.

11 (b) EX OFFICIO.—

12 (1) NONVOTING MEMBERS.—The Governor may

13 appoint ex officio additional nonvoting members to

14 the State Council.

15 (2) EXPERTISE.—The Governor of the State

16 shall ensure that the State Council and the staff of

17 the State Council have sufficient expertise to effec18 tively carry out the duties and functions of the State

19 Council described under the laws relating to the ap20 plicable program.

21 (c) ADVISORY COMMITTEES.—Each State Council

22 may establish a business and a labor advisory committee

23 to assist the State Council in carrying out its duties pursu24 ant to section 204. Membership on such advisory commit25 tees shall include State Council members from the busi-
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1 ness and labor communities and such additional members

2 as the State Council requires.

3 SEC. 203. CHAIRPERSON.

4 The Governor of the State shall appoint a chairperson

5 of the State Council who is a representative of the busi6 ness community.

7 SEC. 204. DUTIES AND RESPONSIBILITIES.

8 (a) STATE WORKFORCE DEVELOPMENT POLICY

9 BLUEPRINT.—The State Council shall assist the Governor

10 to prepare and submit to the National Board a biennial

11 report to be known as the State Workforce Development

12 Policy Blueprint (referred to in this Act as the ‘‘State

13 Blueprint’’). The State Blueprint shall—

14 (1) serve as a strategic plan for integrating fed15 erally funded workforce development programs in16 cluded in an integrated system of the State, estab17 lished pursuant to section 103(b), with State-funded

18 job training, employment, employment-related edu19 cation, and economic development activities;

20 (2) summarize and analyze information about

21 training needs of critical industries in the State con22 tained in the local workforce development policy

23 blueprints developed by the workforce development

24 board;
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1 (3) establish State goals for the integrated

2 workforce development system and a common core

3 set of performance measures and standards for pro4 grams included in the system, to be used in lieu of

5 existing performance measures and standards for

6 each of the included programs;

7 (4) analyze how the businesses of the State

8 are—

9 (A) progressing in the restructuring of the

10 workplace to provide continuous learning;

11 (B) improving the skills and abilities of

12 front-line workers of such businesses; and

13 (C) participating in State and local efforts

14 to transform federally funded education and job

15 training programs into a coherent and account16 able workforce development system;

17 (5) utilize information available from the State

18 Report Card and other sources to analyze the rel19 ative effectiveness of individual workforce develop20 ment programs within the State and of the State’s

21 workforce development system as a whole;

22 (6) evaluate the progress being made within the

23 State in streamlining, consolidating, and reforming

24 the workforce development system of the State in ac25 cordance with the purposes contained in section 2(b)
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1 and the framework for State implementation con2 tained in the implementation grant proposal of the

3 State;

4 (7) describe how service to special hard-to-serve

5 populations is to be maintained;

6 (8) identify how any funds that a State may be

7 receiving under section 103(b) are to be utilized in

8 conjunction with existing resources to continuously

9 improve the effectiveness of the workforce develop10 ment system of the State;

11 (9) describe the method to be used to allocate

12 funds received under section 103(b) in a fair and eq13 uitable manner among unified service delivery areas;

14 (10) specify the additional elements, if any, to

15 be included in operating agreements between local

16 workforce development boards and one-stop career

17 centers;

18 (11) specify additional criteria, if any, for selec19 tion of one-stop career centers;

20 (12) specify the conditions under which the re21 quirements of section 304(g) may be waived;

22 (13) specify the nonemployment-related out23 come measures that will be used for the workforce

24 development system;
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1 (14) specify the nature and scope of the budget

2 authority for local workforce development boards in

3 the State; and

4 (15) supplant federally required planning re5 ports for programs under the integrated workforce

6 development system of the State.

7 (b) STATE WORKFORCE DEVELOPMENT REPORT

8 CARD.—The State Council shall assist the Governor of the

9 State to issue an annual report to be known as the State

10 Workforce Development Report Card (referred to in this

11 Act as the ‘‘State Report Card’’). The State Report Card

12 shall describe the performance of all workforce develop13 ment programs operating in the State that receive Federal

14 funding and any additional State-funded programs that

15 the Governor may choose to include. The State Report

16 Card shall—

17 (1) include an integrated budget that docu18 ments the annual spending, number of clients

19 served, and types of services provided for workforce

20 development programs for the State as a whole and

21 for each unified service delivery area within the

22 State;

23 (2) assess the maintenance of effort to hard-to24 serve populations in relation to the number served
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1 and outcomes for those populations in the preceding

2 3 years;

3 (3) utilize information available from the qual4 ity assurance system established under section 105

5 to assess—

6 (A) employment and earnings experiences

7 of individuals who have received assistance from

8 each workforce development program operated

9 in the State; and

10 (B) relative employment and earnings ex11 periences of participants receiving services from

12 each one-stop career center in the State;

13 (4) include an analysis of other

14 nonemployment-related results for each workforce

15 development program operating within the State;

16 and

17 (5) include a report of annual employment

18 trends and earnings (by industry and occupation) in

19 the State and each unified service delivery area, to

20 assist State and local policy makers, training provid21 ers, and users of the system to link the training pro22 vided to the skill and labor force needs of local em23 ployers.
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1 (c) WORKFORCE DEVELOPMENT BOARD CERTIFI2 CATION AND EFFECTIVENESS CRITERIA.—Each State

3 Council shall—

4 (1) assist the Governor to certify each local

5 workforce development board; and

6 (2) make recommendations to the Governor for

7 criteria that will be used to judge the effectiveness

8 of each of the workforce development boards of the

9 State.

10 SEC. 205. DEVELOPMENT OF QUALITY ASSURANCE SYS11 TEMS AND CONSUMER REPORTS.

12 (a) IN GENERAL.—The State Council shall develop

13 a quality assurance system to complement and expand

14 upon the quality assurance system established in section

15 105 in order to provide customers of job training services

16 with consumer reports on the supply, demand, price, and

17 quality of job training services in each unified service de18 livery area in the State.

19 (b) SELECTION OF TOOLS AND MEASURES.—Each

20 State shall select the tools and measures that are appro21 priate to the needs of such State, including, but not lim22 ited to—

23 (1) collecting and organizing service provider

24 performance data in accordance with information

25 generated from the State Report Card under section
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1 204(b), the financial and management information

2 system designed pursuant to section 208, and the

3 labor market information system of the State de4 scribed in section 501; and

5 (2) conducting surveys as appropriate to ascer6 tain customer satisfaction.

7 (c) COLLECTION AND DISSEMINATION.—The State

8 Council shall, in conjunction with the local workforce de9 velopment boards, establish mechanisms for collecting and

10 disseminating the quality assurance information on a reg11 ular basis to—

12 (1) individuals seeking employment;

13 (2) employers;

14 (3) policymakers at the Federal, State, and

15 local levels; and

16 (4) training and education providers.

17 (d) ASSURANCES.—Each public and private edu18 cation, training, and career development service provider

19 receiving Federal funds under a program in an integrated

20 system of the State pursuant to section 103(b) shall col21 lect and provide the quality assurance information re22 quired under this section.
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1 SEC. 206. ADMINISTRATION.

2 (a) AUTHORITIES.—Each State Council shall be inde3 pendent of other State workforce development agencies

4 and have the authority to—

5 (1) employ staff; and

6 (2) receive and disburse funds.

7 (b) SPECIAL PROJECTS.—Each State Council may

8 fund and operate special pilot or demonstration projects

9 for purposes of research or continuous improvement of

10 system performance.

11 (c) LIMITATION ON USE OF FUNDS.—Not more than

12 5 percent of the funds received by the State from an im13 plementation grant under section 103(b) shall be used for

14 the administration of the State Council.

15 SEC. 207. ESTABLISHMENT OF UNIFIED SERVICE DELIVERY

16 AREAS.

17 (a) RECOMMENDATIONS.—Each State Council shall

18 make recommendations to the Governor of such State for

19 the establishment of unified service delivery areas that

20 may be used as intrastate geographic boundaries, to the

21 extent practicable, for all workforce development programs

22 in an integrated system of the State pursuant to section

23 103(b).

24 (b) ESTABLISHMENT.—Each State receiving an im25 plementation grant under section 103(b) shall, based upon

26 the recommendations of the State Council, and in con-
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1 sultation and cooperation with local communities, estab2 lish unified service delivery areas throughout the State for

3 the purpose of providing community wide workforce devel4 opment assistance in one-stop career centers under section

5 304.

6 (c) RESPONSIBILITIES.—In establishing unified serv7 ice delivery areas, the Governor, in consultation with the

8 State Council and local communities—

9 (1) shall take into consideration existing—

10 (A) labor market areas;

11 (B) units of general local government;

12 (C) service delivery areas established under

13 section 101 of the Job Training Partnership

14 Act (29 U.S.C. 1511); and

15 (D) the distance traveled by individuals to

16 receive services;

17 (2) may merge existing service delivery areas;

18 and

19 (3) may not approve a total number of unified

20 service delivery areas that is greater than the total

21 number of service delivery areas in existence in the

22 State on the date of enactment of this Act.
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1 SEC. 208. FINANCIAL AND MANAGEMENT INFORMATION

2 SYSTEMS.

3 (a) IN GENERAL.—Each State shall use a portion of

4 the funds it receives under section 103(a) to design a uni5 fied financial and management information system. Each

6 State that receives an implementation grant under section

7 103(b) shall require that all programs designated in the

8 integrated system use the unified financial and manage9 ment information system.

10 (b) REQUIREMENTS.—Each unified financial and

11 management information system shall—

12 (1) be used by all agencies involved in

13 workforce development activities, including one-stop

14 career centers which shall have the capability to

15 track the overall public investments within the State

16 and unified service delivery areas, and to inform pol17 icymakers as to the results being achieved through

18 that investment;

19 (2) contain a common structure of financial re20 porting requirements, fiscal systems, and monitoring

21 for all workforce development expenditures included

22 in the integrated system that shall utilize the com23 mon data elements and definitions included in sub24 sections (b) and (c) of section 105;
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1 (3) support local efforts to establish unified

2 service systems, including intake and eligibility de3 termination for all financial aid sources; and

4 (4) notwithstanding any other provision of Fed5 eral law, supplant federally required fiscal reporting

6 and monitoring for each individual program included

7 in the integrated system.

8 SEC. 209. CAPACITY BUILDING GRANTS.

9 From funds made available to a State for implemen10 tation pursuant to section 103(b) or development pursuant

11 to section 103(a), the State shall develop a strategy to

12 enhance the capacity of the institutions, organizations,

13 and staff involved in State and local workforce develop14 ment activities by providing services such as—

15 (1) training for members of the local workforce

16 development boards;

17 (2) training for front-line staff of any local edu18 cation or training service provider or one-stop career

19 center;

20 (3) technical assistance regarding managing

21 systemic change;

22 (4) customer service training;

23 (5) organization of peer-to-peer networks for

24 training, technical assistance, and information shar25 ing;
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1 (6) organizing a best practices database cover2 ing the various workforce development system com3 ponents; and

4 (7) training for State and local staff on the

5 principles of quality management and decentralizing

6 decisionmaking.

7 SEC. 210. PERFORMANCE STANDARDS FOR UNIFIED SERV8 ICE DELIVERY AREAS.

9 (a) IN GENERAL.—The Governor of each State that

10 implements an integrated workforce development system

11 under section 103(b) may, in consultation with the State

12 Council, the local workforce development boards in the

13 State, and employees of any of the job training programs

14 included in the integrated system or the employee organi15 zations of such employees, make adjustments to existing

16 performance standards for programs in such system in the

17 unified service delivery area of the State.

18 (b) CRITERIA.—Criteria developed pursuant to sub19 section (a) may include such factors as—

20 (1) placement, retention, and earnings of par21 ticipants in unsubsidized employment, including—

22 (A) earnings at 1, 2, and 4 quarters after

23 termination from the program; and
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1 (B) comparability of wages 1 year after

2 termination from the program with wages prior

3 to participation in the program;

4 (2) acquisition of skills pursuant to a skill

5 standards and skill certification system endorsed by

6 the National Skill Standards Board established pur7 suant to section 503 of the National Skill Standards

8 Act of 1994;

9 (3) the satisfaction of participants and employ10 ers with services provided and employment out11 comes; and

12 (4) the quality of services provided and the

13 maintenance of effort to hard-to-serve populations,

14 such as low-income individuals and older workers.

15 (c) ADJUSTMENTS.—Each Governor of a State that

16 implements an integrated workforce development system

17 under section 103(b) shall, within parameters established

18 by the National Board, and after consultation with the

19 workforce development boards in the State, prescribe ad20 justments to the performance criteria prescribed under

21 subsections (a) and (b) for the unified service delivery

22 areas based on—

23 (1) specific economic, geographic, and demo24 graphic factors in the State and in regions within

25 the State; and
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1 (2) the characteristics of the population to be

2 served, including the demonstrated difficulties in

3 serving special populations.

4 (d) USE OF CRITERIA.—The performance criteria de5 veloped pursuant to this section shall be utilized in lieu

6 of similar criteria for programs receiving Federal funding

7 included in the integrated system of the State, to the ex8 tent determined by the State Council subject to the ap9 proval of the National Board.

10 TITLE III—LOCAL

11 RESPONSIBILITIES

12 SEC. 301. WORKFORCE DEVELOPMENT BOARDS.

13 (a) ESTABLISHMENT.—In each State receiving an

14 implementation grant under section 103(b), and subject

15 to subsection (b) of this section, the local elected officials

16 of each unified service delivery area shall establish a

17 workforce development board to administer the workforce

18 development assistance provided by all the programs in

19 the integrated workforce development system in such area.

20 (b) EXCEPTION.—States with a single unified deliv21 ery area with contiguous borders shall not be subject to

22 the requirement of subsection (a).

23 (c) MEMBERSHIP.—Each workforce development

24 board shall be comprised of—
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1 (1) representatives of business and industry,

2 who shall constitute a majority of the board and who

3 shall be business leaders in the unified service deliv4 ery area;

5 (2)(A)(i) representatives of organized labor or6 ganizations, who shall be selected from among indi7 viduals nominated by recognized State labor federa8 tions; and

9 (ii) representatives of community-based organi10 zations, who shall be selected from among those in11 dividuals nominated by officers of such organiza12 tions; and

13 (B) who shall comprise not less than 30 percent

14 of the membership of the board;

15 (3) representatives of educational institutions;

16 (4) community leaders, such as leaders of—

17 (A) economic development agencies;

18 (B) human service agencies and institu19 tions;

20 (C) veterans organizations; and

21 (D) entities providing job training;

22 (5) representatives of nongovernmental organi23 zations that have a history of successfully protecting

24 the rights of individuals with disabilities or older

25 persons; and
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1 (6) a local elected official, who shall be a

2 nonvoting member.

3 (d) NOMINATIONS.—

4 (1) BUSINESS AND INDUSTRY REPRESENTA5 TIVES.—

6 (A) IN GENERAL.—The representatives of

7 business and industry under paragraph (1) of

8 subsection (c) shall be selected by local elected

9 officials from among individuals nominated by

10 general purpose business organizations after

11 consultation with, and receiving recommenda12 tions from, other business organizations in the

13 unified service delivery area.

14 (B) DEFINITION.—For purposes of this

15 paragraph, the term ‘‘general purpose business

16 organization’’ means an organization that ad17 mits to membership any for-profit business op18 erating within the unified service delivery area.

19 (2) LABOR REPRESENTATIVES.—The represent20 atives of organized labor under paragraph (2) of

21 subsection (c) shall be selected from among individ22 uals recommended by recognized State and local

23 labor federations. If the State or local labor federa24 tion fails to nominate a sufficient number of individ25 uals, individual workers may be included on the
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1 workforce development board as labor representa2 tives.

3 (3) OTHER MEMBERS.—The members of the

4 workforce development board described in para5 graphs (1), (4), and (5) of subsection (c) shall be se6 lected by chief local elected officials in accordance

7 with subsection (e) from individuals recommended

8 by interested organizations.

9 (4) EXPERTISE.—The State Council and Gov10 ernor of each State shall ensure that the workforce

11 development board and the staff of the State Council

12 have sufficient expertise to effectively carry out the

13 duties and functions of existing local boards de14 scribed under the laws relating to the applicable pro15 gram. Such expertise shall include, where appro16 priate, knowledge of—

17 (A) the long-term needs of individuals pre18 paring to enter the workforce;

19 (B) the needs of State, local, and regional

20 labor markets; and

21 (C) the methods for evaluating the effec22 tiveness of education and job training programs

23 in serving various populations.

24 (e) APPOINTMENT PROCESS.—In the case of a uni25 fied service delivery area—
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1 (1) in which there is one unit of general local

2 government, the chief elected official of such unit

3 shall determine the number and appoint members to

4 the board from the individuals nominated or rec5 ommended under subsection (d); and

6 (2) in which there are 2 or more units of gen7 eral local government, the chief elected officials of

8 such units shall determine the number and appoint

9 members to the workforce development board from

10 the individuals nominated or recommended under

11 subsection (d), in accordance with an agreement en12 tered into by such units of general local government

13 or, in the absence of such an agreement, by the Gov14 ernor of the State in which the unified service deliv15 ery area is located.

16 (f) TERMS.—Each workforce development board shall

17 establish, in its bylaws, terms to be served by its members,

18 who may serve until the successors of such members are

19 appointed.

20 (g) VACANCIES.—Any vacancy on a workforce devel21 opment board shall be filled in the same manner as the

22 original appointment was made.

23 (h) REMOVAL FOR CAUSE.—Any member of a

24 workforce development board may be removed for cause
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1 in accordance with procedures established by the

2 workforce development board.

3 (i) CHAIRPERSON.—Each workforce development

4 board shall select a chairperson, by a majority vote of the

5 members of the board, from among the members of the

6 workforce development board who are from business or in7 dustry. The term of the chairperson shall be determined

8 by the board.

9 (j) SUBCOMMITTEES.—Each workforce development

10 board may establish business and labor subcommittees to

11 advise the board on workforce development issues. Such

12 subcommittees shall have as members representatives of

13 the business and labor communities, and such other mem14 bers as the board determines necessary.

15 (k) DUTIES.—Each workforce development board

16 shall—

17 (1) prepare a workforce development board pol18 icy blueprint in accordance with section 302;

19 (2) issue an annual unified service delivery area

20 report card in accordance with section 303;

21 (3) review and comment on the local plans for

22 all programs included in the integrated workforce

23 development system of the State and operating with24 in the unified service delivery area, prior to the sub25 mission of such plans to the appropriate State Coun-
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1 cil, or the relevant Federal agency, if no State ap2 proval is required;

3 (4) oversee the operations of the one-stop career

4 center established in the unified service delivery area

5 under section 304, including the responsibility to—

6 (A) designate one-stop career center opera7 tors within the unified service delivery area con8 sistent with selection criteria specified in section

9 204(a);

10 (B) develop and approve the budgets and

11 annual operating plans of the one-stop career

12 centers;

13 (C) establish annual performance stand14 ards, customer service quality criteria, and out15 come measures for the one-stop career centers,

16 consistent with measures developed pursuant to

17 sections 210;

18 (D) assess the results of programs and

19 services;

20 (E) ensure that services and skills provided

21 through the centers are of high quality and are

22 relevant to labor market demands; and

23 (F) determine priorities for client services

24 from Federal funding sources in the system;
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1 (5) develop a strategy to disseminate consumer

2 reports produced under section 205 to workers, job3 seekers, and employers, and other individuals in the

4 unified service delivery area; and

5 (6) upon recommendation of a business or labor

6 advisory committee, the local board may apply to the

7 Secretary for a grant in the amount of 50 percent

8 of the cost of establishing innovative models of work9 place training and upgrading of incumbent workers

10 pursuant to section 307.

11 (k) ADMINISTRATION.—

12 (1) IN GENERAL.—Each local workforce devel13 opment board shall have the authority to receive and

14 disburse funds made available for carrying out the

15 provisions of this Act and shall employ its own staff,

16 independent of local programs and service providers.

17 (2) FUNDING.—Each workforce development

18 board shall receive a portion of its funding from the

19 implementation grant of the State, with additional

20 funds made available from participating programs.

21 (l) CONFLICT OF INTEREST.—No member of a

22 workforce development board shall cast a vote on the pro23 vision of services by that member (or any organization

24 which that member directly represents) or vote on any
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1 matter that would provide direct financial benefit to such

2 member.

3 SEC. 302. WORKFORCE DEVELOPMENT BOARD POLICY

4 BLUEPRINT.

5 (a) IN GENERAL.—Each workforce development

6 board shall prepare and submit to the State Council a bi7 ennial report, to be known as the workforce development

8 board policy blueprint, except that in States with a single

9 unified service delivery area, the additional elements re10 quired in the regional blueprint shall be incorporated into

11 the State Blueprint.

12 (b) REQUIREMENTS.—The workforce development

13 board policy blueprint shall—

14 (1) include a list of the key industries and in15 dustry clusters of small- to mid-size firms that are

16 most critical to the current and future economic

17 competitiveness of unified service delivery area;

18 (2) identify the workforce development needs of

19 the critical industries and industry clusters;

20 (3) summarize the capacity of local education

21 and training providers to respond to the workforce

22 development needs;

23 (4) indicate how the local workforce develop24 ment programs intend to strategically deploy re25 sources available from implementation grants and
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1 existing programs operating in the unified service

2 delivery area to better meet the workforce develop3 ment needs of critical industries and industry clus4 ters in the unified service delivery area and enhance

5 program performance;

6 (5) include a plan to develop one-stop career

7 centers, as described in section 304, including an es8 timate of the costs in personnel and other resources

9 to develop a network adequate to provide universal

10 access to such centers in the local labor market;

11 (6) describe how services will be maintained to

12 all groups served by the participating programs in

13 accordance with their legislative intent, including

14 hard-to-serve populations;

15 (7) identify actions for building the capacity of

16 the workforce development system in the unified

17 service delivery area; and

18 (8) report on the level and recent changes in

19 earned income of workers in the local labor market,

20 in relation to State and national levels, by occupa21 tion and industry.

22 (c) USE IN OTHER REPORTS.—The workforce devel23 opment board policy blueprint may be utilized in lieu of

24 local planning reports required by any other Federal law

25 for any program included in the integrated workforce de-
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1 velopment system, subject to the approval of the State

2 Council.

3 SEC. 303. REPORT CARD.

4 (a) IN GENERAL.—Each workforce development

5 board shall annually prepare and submit to the State

6 Council a unified service delivery area report card in ac7 cordance with this section. The report card shall describe

8 the performance of all workforce development programs

9 and service providers, including the one-stop career cen10 ters, operating in the area that is included in the inte11 grated workforce development system. In States with a

12 single unified service delivery area, the State Council shall

13 prepare the report card.

14 (b) REQUIREMENTS.—The report card shall—

15 (1) report on the relationship between services

16 provided and the local labor market needs as de17 scribed in the workforce development board policy

18 blueprint;

19 (2) using the quality assurance system informa20 tion established pursuant to section 205, include an

21 analysis of employment-related, and other outcomes

22 achieved by the programs and service providers oper23 ating in the area;

24 (3) identify the performance of the one-stop ca25 reer centers;
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1 (4) detail the economic and demographic char2 acteristics of individuals served compared to the

3 characteristics of the general population of the uni4 fied service delivery area, and the jobseekers, work5 ers, and businesses of such area; and

6 (5) assess the maintenance of effort to hard-to7 serve populations in relation to the level of services

8 and outcomes during the preceding 3 years.

9 SEC. 304. ONE-STOP CAREER CENTERS.

10 (a) ESTABLISHMENT.—Each workforce development

11 board receiving funds under an implementation grant

12 awarded under section 103(b) shall develop and implement

13 a network of one-stop career centers in the unified service

14 delivery area of the workforce development board. The

15 one-stop career centers shall provide jobseekers, workers,

16 and businesses universal access to a comprehensive array

17 of quality employment, education, and training services.

18 (b) PROCEDURES.—Each workforce development

19 board shall, in conjunction with local elected official or of20 ficials in the unified service delivery area, and consistent

21 with criteria specified in section 204(a), select a method

22 for establishing one-stop career centers.

23 (c) ELIGIBLE ENTITIES.—Each entity within the uni24 fied service delivery area that performs the functions spec25 ified in subsections (e) and (f) for any of the programs
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1 in the integrated workforce development system shall be

2 eligible to be selected as a one-stop career center.

3 (d) PERIOD OF SELECTION.—Each one-stop career

4 center operator shall be designated for two-year periods.

5 Every 2 years, one-stop career center designations shall

6 be reevaluated by the workforce development board based

7 on performance indicated in the unified service delivery

8 area report card and other criteria established by the

9 workforce development board and the State Council.

10 (e) BROKERAGE SERVICES TO INDIVIDUALS.—Each

11 one-stop career center shall make available to the public,

12 at no cost—

13 (1) outreach to make individuals aware of, and

14 encourage the use of, services available from

15 workforce development programs operating in the

16 unified service delivery area;

17 (2) intake and orientation to the information

18 and services available through the one-stop career

19 center;

20 (3) preliminary assessments of the skill levels

21 (including appropriate testing) and service needs of

22 individuals, including—

23 (A) basic skills;

24 (B) occupational skills;

25 (C) prior work experience;
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1 (D) employability;

2 (E) interests;

3 (F) aptitude; and

4 (G) supportive service needs;

5 (4) job search assistance, including resume and

6 interview preparation and workshops;

7 (5) information relating to the supply, demand,

8 price, and quality of job training services available

9 in each unified service delivery area in the State

10 pursuant to section 501(c);

11 (6) information relating to eligibility require12 ments and sources of financial assistance for enter13 ing the programs described in 501(c)(2)(C); and

14 (7) referral to appropriate job training, employ15 ment, and employment-related education or support

16 services in the unified service delivery area.

17 (f) BROKERAGE SERVICES TO EMPLOYERS.—Each

18 one-stop career center shall provide to each requesting em19 ployer—

20 (1) information relating to supply, demand,

21 price, and quality of job training services available

22 in each unified service delivery area in the State,

23 consistent with the consumer reports described in

24 section 205;
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1 (2) customized screening and referral of individ2 uals for employment;

3 (3) customized assessment of skills of the cur4 rent workers of the employer;

5 (4) an analysis of the skill needs of the em6 ployer; and

7 (5) other specialized employment and training

8 services.

9 (g) CONFLICTS.—

10 (1) IN GENERAL.—Except as provided in para11 graph (2), any entity that performs one-stop career

12 center functions shall be prohibited from making an

13 education and training referral to itself.

14 (2) WAIVER.—If the enforcement of paragraph

15 (1) would result in diminished access to either one16 stop career center services or to education and train17 ing services, as defined under section 204(a), such

18 prohibition may be waived by the State council upon

19 request of a regional board.

20 (h) FEES.—

21 (1) IN GENERAL.—Except as provided in para22 graph (2), each one-stop career center may charge

23 fees for the services described in subsection (f), sub24 ject to approval by the workforce development board.
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1 (2) LIMITATION.—No fee may be charged for

2 any service that an individual would be eligible to re3 ceive at no cost under a participating program.

4 (3) INCOME.—Income received by a one-stop

5 career center from the fees collected shall be used by

6 the workforce development board to expand or en7 hance one-stop career centers available within the

8 unified service delivery area.

9 (i) CORE DATA ELEMENTS AND COMMON DEFINI10 TIONS.—Each one-stop career center shall adopt the core

11 data elements and common definitions as specified in sub12 sections (b) and (c) of section 105, and updated by the

13 National Board.

14 (j) OPERATING AGREEMENTS.—

15 (1) IN GENERAL.—Each one-stop career center

16 operator shall enter into a written agreement with

17 the workforce development board concerning the op18 eration of the center.

19 (2) APPROVAL.—The agreement shall—

20 (A) be subject to the approval of—

21 (i) the local chief elected official or of22 ficials;

23 (ii) the State Council; and

24 (iii) the Governor of the State in

25 which the center is located; and
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1 (B) shall address—

2 (i) the services to be provided;

3 (ii) the financial and nonfinancial con4 tributions to be made to the centers from

5 funds made available pursuant to section

6 103(b) and all participating workforce de7 velopment programs;

8 (iii) methods of administration;

9 (iv) procedures to be used to ensure

10 compliance with statutory requirements of

11 the programs in the integrated workforce

12 development system; and

13 (v) other elements, as required by the

14 workforce development board or the State

15 Council under section 204(a).

16 SEC. 305. PROGRESS REPORTS.

17 Each workforce development board shall annually re18 port to the State Council on the progress such board is

19 making with respect to the effectiveness criteria of the

20 workforce development board established under section

21 210, assessing the implementation of the integrated sys22 tem, except that in States with a single unified service de23 livery area the State Council shall be responsible for carry24 ing out the activities under this section.
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1 SEC. 306. CAPACITY BUILDING.

2 (a) IN GENERAL.—Each workforce development

3 board shall identify actions to be taken for building the

4 capacity of the workforce development system in such uni5 fied service delivery, except that in States with a single

6 unified delivery area, the State Council shall be respon7 sible for carrying out the activities under this section.

8 (b) FUNDING.—The State Council shall make funds

9 available to each workforce development board for capacity

10 building activities from funds made available under section

11 103(b) and any other funds within the integrated

12 workforce development budget of the State. For the activi13 ties described in subsection (c), the workforce development

14 board may also submit requests to the State Council to

15 redirect a portion of training and technical assistance re16 sources available from any of the workforce development

17 programs included in the integrated system within the uni18 fied service development area of the workforce develop19 ment board.

20 (c) TYPES OF ACTIVITIES.—Capacity building activi21 ties may include—

22 (1) training of workforce development board

23 members;

24 (2) staff training;

25 (3) technical assistance regarding managing

26 systemic change;
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1 (4) customer service training;

2 (5) organization of peer-to-peer networks for

3 training, technical assistance, and information shar4 ing;

5 (6) organizing a best practices database cover6 ing the various system activities; and

7 (7) training for local staff on the principles of

8 quality management and decentralized decisionmak9 ing.

10 SEC. 307. INCENTIVE GRANTS FOR INCUMBENT WORKER

11 TRAINING.

12 (a) PURPOSE.—The purpose of this section is to es13 tablish a program to award competitive matching grants

14 to assist local workforce development boards respond to

15 the training needs of front-line workers in the commu16 nities in which such boards are located.

17 (b) APPLICATION.—Each local workforce develop18 ment board seeking a grant under this section shall submit

19 an application to the State Council of the State in which

20 such board is located, at such time, in such manner, and

21 containing such information as the Secretary may pre22 scribe. Not later than 30 days after receiving an applica23 tion, the State Council shall review and forward the appli24 cation, with comments, to the National Board and the

25 Secretary.
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1 (c) SELECTION OF GRANTEES.—

2 (1) IN GENERAL.—The Secretary, with the ad3 vice of the National Board, shall award a grant

4 under this section only if the Secretary determines,

5 from the grant application, that the grant will be

6 used to maintain or enhance the competitive position

7 of local industries that are committed to making the

8 investments necessary to develop the skills of their

9 workers.

10 (2) CRITERIA.—In awarding grants under this

11 section, the Secretary shall take into account—

12 (A) the policy priorities and training needs

13 of local industries identified in the local

14 workforce development policy blueprints;

15 (B) whether there is a demonstrated need

16 for skill upgrading to maintain firm or industry

17 competitiveness;

18 (C) whether the application contains pro19 posals for training that will directly lead to in20 creased earnings of front-line workers;

21 (D) initiatives by firms or firm partner22 ships to develop high performance work organi23 zations;

24 (E) whether the grant proposal meets the

25 training needs of small and medium sized firms;
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1 (F) whether the grant proposal is focused

2 on workers with substantial firm or industry

3 tenure; and

4 (G) whether the proposed industry activi5 ties are integrated with private sector activities

6 under the School-to-Work Opportunities Act of

7 1994.

8 (d) USE OF FUNDS.—Grants awarded under this sec9 tion shall be used for skill enhancement and training ac10 tivities that may include—

11 (1) basic skills;

12 (2) occupational skills;

13 (3) statistical process control training;

14 (4) total quality management techniques;

15 (5) team building and problem solving skills;

16 and

17 (6) other training or activities that will result in

18 the increased likelihood of job retention, higher

19 wages, or increased firm competitiveness.

20 (e) FUNDING.—

21 (1) COST SHARE.—

22 (A) FEDERAL SHARE.—A grant awarded

23 under this section shall be in an amount equal

24 to 50 percent of the cost of carrying out the

25 grant proposal.
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1 (B) LOCAL SHARE.—As a condition to re2 ceiving Federal funds under this section, local

3 businesses, industry associations, and worker

4 organizations shall provide funding in an

5 amount equal to 50 percent of the cost of carry6 ing out the grant proposal.

7 (2) LIMITATIONS.—

8 (A) USE OF FUNDS.—Amounts awarded

9 under this section shall not be used to pay the

10 wages of workers during the training of such

11 workers.

12 (B) ADDITIONAL FUNDING.—Each recipi13 ent of funds under this section shall certify that

14 such funds shall supplement and not supplant

15 other public or private funds otherwise spent on

16 worker training.

17 TITLE IV—CONSOLIDATION

18 SEC. 401. PURPOSE; FINDINGS; SENSE OF THE CONGRESS.

19 (a) PURPOSE.—The purpose of this title is to stream20 line the system of federally funded employment training

21 services available to jobseekers, workers, and businesses.

22 (b) FINDINGS.—The Congress finds that—

23 (1) the process of streamlining the system of

24 federally funded employment training services begins
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1 with consolidating and eliminating separate employ2 ment training programs; and

3 (2) as such programs are eliminated, the fund4 ing for such programs should be invested back into

5 such system to support the creation of a workforce

6 development system, as described in section 2(b).

7 (c) SENSE OF THE CONGRESS.—It is the sense of the

8 Congress that—

9 (1) any budget savings realized as a result of

10 the elimination or consolidation of programs pursu11 ant to section 403(a) or through the sunsetting of

12 programs pursuant to section 405 should be rein13 vested in the Nation’s job training system as de14 scribed in subsection (b); and

15 (2) as programs are eliminated and merged, it

16 is imperative that such elimination and merging be

17 done without in any way reducing the commitment

18 or level of effort of the Federal Government to im19 proving the education, employment, and earnings of

20 all workers, particularly hard-to-serve individuals, in21 cluding individuals with limited-English proficiency,

22 and other workers with special needs.

23 SEC. 402. INTEGRATION OF YOUTH PROGRAMS.

24 Not later than 180 days after the date of enactment

25 of this Act, the National Board shall study and report to
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1 the President and Congress on how best to integrate the

2 programs, under the following statutes or portions of stat3 utes, for in-school and out-of-school youth with the School4 to-Work Opportunities Act of 1994:

5 (1) Part C of title II of the Job Training Part6 nership Act (29 U.S.C. 1641 et seq.).

7 (2) Part B of title II of the Job Training Part8 nership Act (29 U.S.C. 1630 et seq.).

9 (3) Part H of title IV of the Job Training Part10 nership Act (29 U.S.C. 1782 et seq.).

11 (4) The Carl D. Perkins Vocational and Applied

12 Technology Education Act (20 U.S.C. 2301 et seq.).

13 (5) Youthbuild programs under title IV of the

14 Cranston-Gonzalez National Affordable Housing Act

15 (42 U.S.C. 12899 et seq.).

16 (6) Part B of title IV of the Job Training Part17 nership Act (29 U.S.C. 1691 et seq.).

18 SEC. 403. CONSOLIDATION OF WORKFORCE DEVELOPMENT

19 PROGRAMS.

20 (a) ANNUAL RECOMMENDATIONS.—Not later than

21 180 days after the date of enactment of this Act, and each

22 June 1 thereafter, the National Board shall make rec23 ommendations to the President and Congress for the

24 elimination of Federal workforce development programs,
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1 or programs whose functions should be subsumed under

2 other Federal programs.

3 (b) REPORT.—Not later than June 1, 1999, the Na4 tional Board, based on such board’s analysis of the experi5 ence of leading edge States and the progress made toward

6 establishing an integrated workforce development system,

7 shall prepare and submit recommendations to the Com8 mittee on Education and Labor of the House of Rep9 resentatives and the Committee on Labor and Human Re10 sources of the Senate a report containing the findings of

11 such board, and recommendations for proposed reforms.

12 The National Board shall also submit to the Congress a

13 draft of a joint resolution containing provisions to develop

14 a streamlined, integrated, federally supported workforce

15 development system, from the programs listed in section

16 404(a) and any other Federal workforce development pro17 gram determined by the National Board as appropriate

18 to be included that is consistent with this Act, pursuant

19 to section 2(b). The joint resolution shall include rec20 ommendations for standard outcome measures as de21 scribed in section 105(a) and shall describe how the new

22 system will maintain services to hard-to-serve populations.
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1 SEC. 404. INTEGRATION OF PROGRAMS AT THE LOCAL

2 LEVEL.

3 (a) REQUIREMENT.—Any State receiving an imple4 mentation grant to develop an integrated workforce devel5 opment system shall, at a minimum, include the programs

6 and activities carried out on the date of enactment of this

7 Act under the following provisions and Acts in such

8 State’s reformed delivery system pursuant to section

9 103(b):

10 (1) Part F of title IV of the Social Security Act

11 (42 U.S.C. 681 et seq.).

12 (2) Part A of title II, and title III of the Job

13 Training Partnership Act (29 U.S.C. 1601 et seq.,

14 1651 et seq.).

15 (3) The Wagner-Peyser Act (29 U.S.C. 49 et

16 seq.).

17 (4) Sections 235 and 236 of the Trade Act of

18 1974 (19 U.S.C. 2295 and 2296) and paragraphs

19 (1) and (2) of section 250(d) of such Act (19 U.S.C.

20 2331(d)).

21 (5) The Refugee Education Assistance Act of

22 1980 (8 U.S.C. 1522 note).

23 (6) Title VII of the Stewart B. McKinney

24 Homeless Assistance Act (42 U.S.C. 11421 et seq.).

25 (7) Section 6(d)(4) of the Food Stamp Act of

26 1977 (7 U.S.C. 2015(d)(4)).
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1 (b) ADDITIONAL PROGRAMS.—Any State receiving an

2 implementation grant to develop an integrated workforce

3 development system may include the programs and activi4 ties carried out on the date of enactment of this Act under

5 the following provisions and Acts in such State’s reformed

6 delivery system pursuant to section 103(b):

7 (1) Part B of title III of the Adult Education

8 Act (20 U.S.C. 1203 et seq.).

9 (2) Title V of the Older Americans Act of 1965

10 (42 U.S.C. 3056 et seq.).

11 (3) The Carl D. Perkins Vocational and Applied

12 Technology Education Act (20 U.S.C. 2301 et seq.).

13 (4) Part C of title IV of the Job Training Part14 nership Act (29 U.S.C. 1721).

15 (5) Any other Federal or State workforce devel16 opment program identified by the Governor pursu17 ant to section 103(b), subject to a two-thirds vote of

18 the National Board.

19 SEC. 405. SUNSET OF MAJOR WORKFORCE DEVELOPMENT

20 PROGRAMS.

21 (a) REPEAL.—

22 (1) IN GENERAL.—Subject to paragraph (2),

23 the provisions and Acts listed in paragraphs (1)

24 through (7) of section 404(a) are repealed.
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1 (2) EFFECTIVE DATE.—Paragraph (1) shall

2 take effect on September 30, 1999.

3 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

4 The National Board shall include in the draft joint resolu5 tion submitted under section 403(b), technical and con6 forming amendments regarding the provisions and Act re7 pealed under subsection (a). Such proposed amendments

8 should be consistent with the purposes of this Act.

9 TITLE V—INTEGRATED LABOR

10 MARKET INFORMATION SYSTEM

11 SEC. 501. INTEGRATED LABOR MARKET INFORMATION.

12 (a) FINDINGS.—Congress finds that accurate, timely,

13 and relevant data for the Nation, States, and localities is

14 required to achieve Federal domestic policy goals, such

15 as—

16 (1) economic growth and productivity

17 through—

18 (A) career planning and successful job

19 training and job searching by youth and adults;

20 and

21 (B) efficient hiring, effective worker train22 ing, and appropriate location and organization

23 of work by employers;

24 (2) accountability, through planning and eval25 uation, in workforce development and job placement
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1 programs funded by the Federal Government or de2 veloped by other public or private entities;

3 (3) equity and efficiency in the allocation of

4 Federal funds; and

5 (4) greater understanding of local labor market

6 dynamics through the support of research.

7 (b) PURPOSE.—The purpose of this title is to provide

8 for the development, maintenance, and continuous im9 provement of a nationwide integrated system for the col10 lection, analysis, and dissemination of labor market infor11 mation.

12 (c) SYSTEM.—

13 (1) DEVELOPMENT.—The Secretary, in co14 operation with the National Board, the State Coun15 cils, where appropriate, and the Governors, shall

16 oversee and ensure the development, maintenance,

17 and continuous improvement of a nationwide inte18 grated system of labor market information that

19 will—

20 (A) promote comprehensive workforce de21 velopment planning, evaluation, and service in22 tegration;

23 (B) meet and be responsive to the cus24 tomer needs of jobseekers, employers, and pub25 lic officials at all government levels who develop
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1 economic and social policy, allocate funds, plan

2 and implement workforce development systems,

3 are involved in career planning or exploration,

4 and deliver integrated services;

5 (C) serve as the foundation for automated

6 information delivery systems that provide easy

7 access to labor market, occupational and career

8 information; and

9 (D) meet the Federal domestic policy goals

10 specified in section 501(a).

11 (2) INFORMATION TO BE INCLUDED.—The inte12 grated system described in paragraph (1) shall in13 clude statistical data from survey and projection

14 programs and data from administrative reporting

15 systems which, taken together, shall enumerate, esti16 mate, and project the supply of and demand for

17 labor at national, State, and local levels in a timely

18 manner, including, but not limited to, data on—

19 (A) labor market demand, such as—

20 (i) profiles of occupations that de21 scribe job duties, education, and training

22 requirements, skills, wages, benefits, work23 ing conditions, and the industrial distribu24 tion of occupations;
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1 (ii) current and projected employment

2 opportunities and trends, by industry and

3 occupation, including growth projections by

4 industry, and growth and replacement need

5 projections by occupation;

6 (iii) job openings, job locations, hiring

7 requirements, and application procedures;

8 (iv) profiles of industries and employ9 ers in the local labor market describing the

10 nature of the work performed, employment

11 skill and experience requirements, specific

12 occupations, wages, hours, and benefits,

13 and hiring patterns;

14 (v) industries, occupations, and geo15 graphic locations facing significant change

16 or dislocation; and

17 (vi) information maintained in a longi18 tudinal manner on the quarterly earnings,

19 establishment, industry affiliation, and ge20 ographic location of employment for all in21 dividuals for whom such information is col22 lected by the States;

23 (B) labor supply, such as—
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1 (i) educational attainment, training,

2 skills, skill levels, and occupations of the

3 population;

4 (ii) demographic, socioeconomic char5 acteristics, and current employment status

6 of the population, including self-employed,

7 part-time, and seasonal workers;

8 (iii) job seekers, including their edu9 cation and training, skills, skill levels, em10 ployment experience, and employment

11 goals;

12 (iv) the number of workers displaced

13 by permanent layoffs and plant closings by

14 industry, occupation, and geographic loca15 tion; and

16 (v) current and projected training

17 completers who have acquired specific oc18 cupational or work skills and competencies;

19 and

20 (C) consumer information, which shall be

21 current, comprehensive, localized, automated,

22 and in a form useful for immediate employ23 ment, entry into training and education pro24 grams, and career exploration, including—
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1 (i) job openings, locations, hiring re2 quirements, application procedures, and

3 profiles of employers in the local labor

4 market describing the nature of the work

5 performed, employment requirements,

6 wages, benefits, and hiring patterns;

7 (ii) jobseekers, including their edu8 cation and training, skills, skill levels, em9 ployment experience, and employment

10 goals;

11 (iii) the labor market experiences, in

12 terms of wages and annual earnings, by in13 dustry and occupation, of workers in local

14 labor markets, by sex and racial or ethnic

15 group, including information on hard-to16 serve populations;

17 (iv) education courses, training pro18 grams, and job placement programs, in19 cluding information derived from statis20 tically based performance evaluations and

21 their user satisfaction ratings; and

22 (v) eligibility for funding and other

23 assistance in job training, job search, in24 come support, supportive services, and

25 other employment services.
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1 (3) TECHNICAL STANDARDS.—The integrated

2 labor market information system shall use common

3 standards that will include—

4 (A) standard classification and coding sys5 tems for industries, occupations, skills, pro6 grams, and courses;

7 (B) nationally standardized definitions of

8 terms consistent with sections 105 and

9 501(c)(2);

10 (C) a common system for designating geo11 graphic areas consistent with the unified service

12 delivery areas;

13 (D) data standards and quality control

14 mechanisms; and

15 (E) common schedules for data collection

16 and dissemination.

17 (4) AVAILABILITY OF INFORMATION.—Data

18 generated by the labor market information system

19 including information on quarterly employment and

20 earnings, together with matched data on individuals

21 who have participated in a federally supported job

22 training activity, shall be made available to the Na23 tional Board for use in the preparation of the Na24 tional Report Card. Aggregate level information will
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1 be made available to consumers in automated infor2 mation delivery systems.

3 (5) DISSEMINATION, TECHNICAL ASSISTANCE,

4 AND RESEARCH.—The Secretary, in cooperation with

5 the National Board, the Governors, and State Coun6 cils, where appropriate, shall oversee the develop7 ment, maintenance, and continuous improvement

8 of—

9 (A) dissemination mechanisms for data

10 and analysis, including mechanisms that may

11 be standardized among the States;

12 (B) programs of technical assistance and

13 staff development for States and localities, in14 cluding assistance in adopting and utilizing

15 automated systems and improving the access,

16 through electronic and other means, to labor

17 market information; and

18 (C) programs of research and demonstra19 tion, on ways to improve the products and proc20 esses authorized by this section.

21 SEC. 502. RESPONSIBILITIES OF THE NATIONAL BOARD.

22 (a) IN GENERAL.—The National Board shall plan,

23 review, and evaluate the Nation’s integrated labor market

24 information system.

25 (b) DUTIES.—The National Board shall—
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1 (1) be responsible for providing policy guidance;

2 (2) evaluate the integrated labor market infor3 mation system and ensure the cooperation of partici4 pating agencies; and

5 (3) recommend to the Secretary needed im6 provements in Federal, State, and local information

7 systems to support the development of an integrated

8 labor market information system.

9 SEC. 503. RESPONSIBILITIES OF THE SECRETARY.

10 (a) IN GENERAL.—The Secretary shall manage the

11 investment in an integrated labor market information sys12 tem by—

13 (1) reviewing all requirements for labor market

14 information across all programs within the system;

15 (2) developing a comprehensive annual budget,

16 including funds at the Federal level, funds allotted

17 to States by formula, and funds supplied to the

18 States by contracts with departmental entities;

19 (3) administering grants allotted to States by

20 formula;

21 (4) negotiating and executing contracts with the

22 States;

23 (5) coordinating the activities of Federal

24 workforce development agencies responsible for col25 lecting the statistics and program administrative
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1 data that comprise the integrated system and dis2 seminating labor market information at the Na3 tional, State, regional, and local levels; and

4 (6) ensuring that standards are designed to

5 meet the requirements of chapter 35 of title 44,

6 United States Code, and are coordinated and con7 sistent with other appropriate Federal standards es8 tablished by the Bureau of Labor Statistics and

9 other statistical agencies;

10 (b) REQUIREMENTS.—In carrying out the duties of

11 the Secretary under this section, the Secretary shall—

12 (1) in consultation with the States and the pri13 vate sector, define a common core set of labor mar14 ket information data elements as specified in section

15 501(c)(2) that will be consistently available across

16 States in an integrated labor market information

17 system; and

18 (2) ensure that data is sufficiently timely and

19 locally detailed for use, including uses specified in

20 subsections (b) and (c)(2) of section 501.

21 (c) ANNUAL PLAN.—

22 (1) IN GENERAL.—The Secretary shall annually

23 prepare and submit to the National Board for re24 view, a plan for improving the Nation’s integrated

25 labor market information system. The Secretary
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1 shall also submit the plan, together with the com2 ments and recommendations of the National Board,

3 to the President and Congress.

4 (2) CONTENTS.—The plan shall describe the

5 budgetary needs of the labor market information

6 system, and shall describe the activities of such Fed7 eral agencies with respect to data collection, analy8 sis, and dissemination for each fiscal year succeeding

9 the fiscal year in which the plan is developed. The

10 plan shall—

11 (A) establish goals for system development

12 and improvement based on information needs

13 for achieving economic growth and productivity,

14 accountability, fund allocation equity, and an

15 understanding of labor market characteristics

16 and dynamics;

17 (B) specify the common core set of data

18 that shall be included in the integrated labor

19 market information system;

20 (C) describe the current spending on inte21 grated labor market information activities from

22 all sources, assess the adequacy of the funds

23 and identify the specific budget needs of the

24 Federal and State workforce development agen25 cies with respect to implementing and improv-
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1 ing an integrated labor market information sys2 tem and the activities of such agencies with re3 spect to data compilation, analysis, and dis4 semination for each fiscal year in which the

5 plan is developed;

6 (D) develop a budget for an integrated

7 labor market information system that accounts

8 for all funds in subparagraph (C) and any new

9 funds made available pursuant to this Act, and

10 describes the relative allotments to be made

11 for—

12 (i) the operation of the cooperative

13 statistical programs under section

14 501(c)(2);

15 (ii) ensuring that technical standards

16 are met pursuant to section 501(c)(3); and

17 (iii) consumer information, analysis

18 and dissemination, technical assistance,

19 and research under paragraphs (2)(C), (4),

20 and (6) of section 501(c);

21 (E) describe the existing system, informa22 tion needs, and the development of new data

23 programs, analytical techniques, definitions and

24 standards, dissemination mechanisms, govern-
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1 ance mechanisms, and funding processes to

2 meet new needs;

3 (F) summarize the results of an annual re4 view of the costs to the States of meeting con5 tract requirements for data production, includ6 ing a description of how the budget request for

7 an integrated labor market information system

8 will cover such costs;

9 (G) describe how the State Councils will be

10 reimbursed for carrying out the duties for labor

11 market information;

12 (H) recommend methods to simplify and

13 integrate automated client intake and eligibility

14 determination systems across workforce devel15 opment programs to permit easy determination

16 of eligibility for funding and other assistance in

17 job training, job search, income support, sup18 portive services, and other reemployment serv19 ices; and

20 (I) provide for the involvement of States in

21 developing the plan by holding formal consulta22 tions conducted in cooperation with representa23 tives of the Governor or State Council, where

24 appropriate, pursuant to a process established

25 by the National Board.
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1 (d) ASSISTANCE FROM OTHER AGENCIES.—The Sec2 retary may receive assistance from member and other

3 Federal agencies (such as the Bureau of Labor Statistics

4 and the Employment and Training Administration of the

5 Department of Labor, the Administration on Children and

6 Families of the Department of Health and Human Serv7 ices, and the Office of Adult and Vocational Education

8 and the National Commission for Education Statistics of

9 the Department of Education) to assist in the collection,

10 analysis, and dissemination of labor market information,

11 and in the provision of training and technical assistance

12 to users of information, including States, employers,

13 youth, and adults.

14 SEC. 504. RESPONSIBILITIES OF GOVERNORS.

15 (a) DESIGNATION OF STATE AGENCY.—The Gov16 ernor of each State and the State Council, where appro17 priate, shall designate one State agency to be the agency

18 responsible for—

19 (1) the management and oversight of a state20 wide comprehensive integrated labor market infor21 mation system; and

22 (2) developing a State unified labor market in23 formation budget on an annual basis.
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1 (b) REQUIREMENTS.—As a condition of receiving

2 Federal financial assistance under this title, the Governor

3 or State Council, where appropriate, shall—

4 (1) develop, maintain, and continuously improve

5 a comprehensive integrated labor market informa6 tion system, which shall—

7 (A) include the elements specified in sec8 tion 501(c)(2);

9 (B) be responsive to the needs of the State

10 and the localities of such State for planning

11 and evaluative data, including employment and

12 economic analyses and projections, and program

13 outcome data on employment and earnings for

14 the quality assurance system under section 205;

15 and

16 (C) meet Federal standards under chapter

17 35 of title 44, United States Code, and other

18 appropriate Federal standards established by

19 the Bureau;

20 (2) ensure the performance of contract and

21 grant responsibilities for data compilation, analysis,

22 and dissemination;

23 (3) conduct such other data collection, analysis,

24 and dissemination activities as will ensure the avail-
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1 ability of comprehensive State and local labor mar2 ket information;

3 (4) coordinate the data collection, analysis, and

4 dissemination activities of other State and local

5 agencies, with particular attention to State edu6 cation, economic development, human services, and

7 welfare agencies, to ensure complementary and com8 patibility among data; and

9 (5) cooperate with the National Board and the

10 Secretary by making available, as requested, data

11 for the evaluation of programs covered by the labor

12 market information and the quality assurance sys13 tems under section 205.

14 (c) NONINTERFERENCE WITH STATE FUNCTIONS.—

15 Nothing in this Act shall limit the ability of the State

16 agency designated under this section to conduct additional

17 data collection, analysis, and dissemination activities with

18 funds derived from sources other than this Act.

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