Calendar No. 404

103D CONGRESS

2D SESSION S. 1951

A BILL

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

APRIL 11, 1994

Read the second time and placed on the calendar
II

Calendar No. 404

103D CONGRESS

2D SESSION S. 1951

To establish a comprehensive system of reemployment services, training and

income support for permanently laid off workers, to facilitate the establishment of one-stop career centers to serve as a common point of

access to employment, education and training information and services,

to develop an effective national labor market information system, and

for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 17 (legislative day, FEBRUARY 22), 1994

Mr. MOYNIHAN (for himself, Mr. MITCHELL, Mr. BRADLEY, Mr. BREAUX, Mr.

DASCHLE, Mr. PRYOR, Mr. RIEGLE, Mr. ROCKEFELLER, Mrs. BOXER,

Mr. FORD, Ms. MOSELEY-BRAUN, and Mr. DODD) introduced the following bill; which was read the first time

APRIL 11, 1994

Read the second time and placed on the calendar

A BILL

To establish a comprehensive system of reemployment services, training and income support for permanently laid

off workers, to facilitate the establishment of one-stop

career centers to serve as a common point of access

to employment, education and training information and

services, to develop an effective national labor market

information system, and for other purposes.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

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

5 1994’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Findings and purpose.

Sec. 4. Authorization of appropriations.

Sec. 5. Definitions.

TITLE I—COMPREHENSIVE PROGRAM FOR WORKER

REEMPLOYMENT

Sec. 101. Allotment of funds.

Sec. 102. Recapture and use of unexpended funds.

Sec. 103. Eligibility for services.

PART A—STATE AND SUBSTATE DELIVERY SYSTEM

Sec. 111. State administration and oversight.

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

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

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

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

Sec. 116. State grants for job retention projects.

Sec. 117. Designation of substate administrative structure.

Sec. 118. Establishment of career centers.

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

Sec. 120. Certificates of continuing eligibility.

PART B—FEDERAL DELIVERY OF SERVICES

Sec. 131. National discretionary grant program.

Sec. 132. Disaster relief employment assistance.

Sec. 133. Evaluation, research, and demonstrations.

Sec. 134. Capacity building and technical assistance.

Sec. 135. Federal by-pass authority.

PART C—PERFORMANCE STANDARDS AND QUALITY ASSURANCE SYSTEMS

Sec. 151. Customer service compact.

Sec. 152. Performance standards.

Sec. 153. Customer feedback.

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

Sec. 161. General requirements.

Sec. 162. Benefits.

Sec. 163. Labor standards.

Sec. 164. Grievance procedure.

PART E—FISCAL ADMINISTRATIVE PROVISIONS

Sec. 171. Program year.

Sec. 172. Prompt allocation of funds.

Sec. 173. Monitoring.

Sec. 174. Fiscal controls; sanctions.

Sec. 175. Reports, recordkeeping and investigations.

Sec. 176. Administrative adjudication.

Sec. 177. Nondiscrimination.

Sec. 178. Judicial review.

Sec. 179. Administrative provisions.

Sec. 180. Obligational authority.

Sec. 181. Criminal provisions.

Sec. 182. References.

PART F—MISCELLANEOUS PROVISIONS

Sec. 191. Effective date.

Sec. 192. Repealers.

Sec. 193. Transition.

TITLE II—RETRAINING INCOME SUPPORT AND FLEXIBILITY IN

UNEMPLOYMENT COMPENSATION

PART A—RETRAINING INCOME SUPPORT

Sec. 201. Establishment.

Sec. 202. Eligibility requirements.

Sec. 203. Weekly amounts.

Sec. 204. Limitations on retraining income support.

Sec. 205. Agreements with States.

Sec. 206. Administration absent State agreement.

Sec. 207. Liabilities of certifying and disbursing officers.

Sec. 208. Fraud and recovery of overpayments.

Sec. 209. Penalties.

Sec. 210. Definitions.

Sec. 211. Regulations.

Sec. 212. Effective date.

PART B—RETRAINING INCOME SUPPORT ACCOUNT

Sec. 221. Establishment of retraining income support account.

Sec. 222. Funds for administration.

Sec. 223. Conforming amendments.

Sec. 224. Effective date.

PART C—FINANCING PROVISIONS

Sec. 231. Modifications to Federal unemployment tax.

Sec. 232. Voluntary withholding of Federal individual income tax.
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PART D—INTEGRATION OF TRADE-IMPACTED WORKERS INTO THE

COMPREHENSIVE REEMPLOYMENT SYSTEM

Sec. 241. Phaseout of trade adjustment assistance program.

Sec. 242. Temporary program for the certification of trade-impacted workers.

PART E—UNEMPLOYMENT COMPENSATION FLEXIBILITY

Sec. 251. Treatment of short-time compensation programs.

Sec. 252. Treatment of reemployment bonus programs.

Sec. 253. Extension of self-employment assistance program.

Sec. 254. Effective date.

TITLE III—ONE-STOP CAREER CENTER SYSTEM

Sec. 301. Purpose.

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

Sec. 311. General requirements.

Sec. 312. Workforce investment boards.

Sec. 313. Establishment of one-stop career centers.

Sec. 314. Services to be provided through one-stop career centers.

Sec. 315. Participating programs.

Sec. 316. Operating agreements.

Sec. 317. Quality assurance systems.

Sec. 318. State human resource investment council.

PART B—GRANTS AND WAIVERS TO PROMOTE THE DEVELOPMENT AND

IMPLEMENTATION OF ONE-STOP CAREER CENTER SYSTEM

Sec. 331. State planning and development grants.

Sec. 332. State implementation grants.

Sec. 333. Waiver of Federal statutory and regulatory requirements.

Sec. 334. Pooling of administrative resources.

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

CENTER SYSTEM

Sec. 351. Customer service compact.

Sec. 352. Additional State responsibilities.

Sec. 353. Additional Federal responsibilities.

PART D—EFFECTIVE DATE

Sec. 371. Effective date.

TITLE IV—NATIONAL LABOR MARKET INFORMATION SYSTEM

Sec. 401. Purpose.

Sec. 402. National strategy.

Sec. 403. Components of system.

Sec. 404. Coordination.

Sec. 405. Effective date.

TITLE V—REINVENTION LABS FOR JOB TRAINING FOR THE

ECONOMICALLY DISADVANTAGED

Sec. 501. Establishment of labs.
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Sec. 502. Modification of tuition definition.

Sec. 503. Effective date.

1 SEC. 3. FINDINGS AND PURPOSE.

2 (a) FINDINGS.—Congress finds that—

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

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

7 (2) a substantial number of Americans lose jobs

8 because of structural changes in the economy rather

9 than cyclical downturns, with more than two million

10 full-time workers permanently displaced annually

11 due to plant closures, production cutbacks, and lay12 offs;

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

15 with tax revenues and economic output declining

16 when workers are idle and demands on Government

17 support rise;

18 (4) all Americans—whether seeking first jobs,

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

20 continuous transition and must have access to new

21 skills and better job and career information in order

22 to harness this change for increased economic secu23 rity and a rising standard of living;
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1 (5) our current worker adjustment policies were

2 designed for an earlier economy and often do not

3 equip Americans to prosper in the current and

4 emerging atmosphere of constant change;

5 (6) the primary governmental response to job

6 loss—the unemployment insurance system—is effec7 tive in providing income support to persons on tem8 porary layoffs, but was not designed to build reem9 ployment security, and is ill-equipped by itself to en10 sure that those people who are permanently laid off

11 will receive needed reemployment services;

12 (7) the current Government response to disloca13 tion is a patchwork of categorical programs, with

14 varying eligibility requirements and different sets of

15 services and benefits;

16 (8) job search assistance and retraining are not

17 available to all who need them and income support

18 is typically not available to facilitate long-term train19 ing;

20 (9) a lack of comprehensive labor market infor21 mation—

22 (A) means that job seekers, training pro23 viders, and employers must make hiring and

24 training decisions based on fragmented and in25 complete data;
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1 (B) adds time and costs to employers’ re2 cruitment efforts; and

3 (C) hinders the ability of rapidly growing

4 firms to recruit and screen new employees; and

5 (10) administrative and regulatory obstacles

6 hamper the efforts of States and localities to estab7 lish comprehensive reemployment systems for all

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

9 jobs.

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

11 (1) better integrate the existing unemployment

12 system into a comprehensive, universal, high-quality

13 system for reemployment, so that it can serve effec14 tively the structurally unemployed as well as those

15 on temporary layoffs;

16 (2) promote equity and efficiency by consolidat17 ing the array of specific programs for dislocated

18 workers into a single comprehensive program for all

19 workers who have been permanently laid off, regard20 less of the cause of dislocation;

21 (3) facilitate effective, quality training for per22 manently laid-off workers who want and need it;

23 (4) provide customer-centered, high-quality em24 ployment and training services that give dislocated
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1 workers the tools to make informed career and train2 ing choices;

3 (5) provide universal access to basic reemploy4 ment services, including assessment of skill levels

5 and service needs, labor market information, and job

6 search assistance;

7 (6) begin to transform the fragmented employ8 ment and training system through a network of

9 streamlined, one-stop career centers providing uni10 versal access to all Americans who want and need

11 new jobs, better jobs, and first jobs;

12 (7) replicate and expand the innovative efforts

13 of States and localities to provide comprehensive,

14 high-quality reemployment and training systems;

15 and

16 (8) create a national labor market information

17 system that gives employers, training providers, stu18 dents, job seekers, and employees high-quality and

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

20 other occupational information.

21 SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

22 (a) TITLE I.—There are authorized to be appro23 priated to carry out title I—

24 (1) $1,465,000,000 for fiscal year 1995; and
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1 (2) such sums as may be necessary for each

2 succeeding fiscal year.

3 (b) TITLES III AND IV.—There are authorized to be

4 appropriated to carry out titles III and IV—

5 (1) $250,000,000 for each of fiscal years 1995

6 through 1999; and

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

8 fiscal years 2000 through 2003.

9 SEC. 5. DEFINITIONS.

10 For the purposes of this Act, the following definitions

11 apply:

12 (1) The term ‘‘career center’’ means such cen13 ter established pursuant to section 118.

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

15 means private nonprofit organizations which are rep16 resentative of communities or significant segments

17 of communities and which provide education, train18 ing and related services.

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

20 includes State and local planning and zoning com21 missions or board, community development agencies,

22 and other State and local agencies and institutions

23 responsible for regulating, promoting, or assisting in

24 State and local economic development.
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1 (4) The term ‘‘Governor’’ means the chief exec2 utive of any State.

3 (5) The term ‘‘labor market area’’ means an

4 economically integrated geographic area within

5 which individuals can reside and find employment

6 within a reasonable commuting distance or can

7 change employment without changing their place of

8 residence. Such areas shall be identified by the Sec9 retary in accordance with criteria used by the Bu10 reau of Labor Statistics of the Department of Labor

11 or the Bureau of the Census of the Department of

12 Commerce in defining such areas.

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

14 chief elected executive officer of a unit of general

15 local government in a substate area.

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

17 applied to women refers to occupations or fields of

18 work where women comprise less than 25 percent of

19 the individuals employed in such occupational or

20 field of work.

21 (8) The term ‘‘one-step career center’’ means

22 such center established pursuant to section 313.

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

24 the private industry council established under sec25 tion 102 of the Job Training Partnership Act.
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1 (10) The term ‘‘representatives of employees’’

2 means representatives from labor organizations (in3 cluding local, State, or national bodies, as appro4 priate) where such organization represents a sub5 stantial number of employees.

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

7 of Labor.

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

9 such an area as established in section 101 of the

10 Job Training Partnership Act.

11 (13) The term ‘‘service provider’’ means a pub12 lic agency, private nonprofit organization, or private13 for-profit entity that delivers basic reemployment,

14 intensive reemployment, educational, training, or

15 supportive services.

16 (14) The term ‘‘State’’ means any of the sev17 eral States, the District of Columbia, and the Com18 monwealth of Puerto Rico.

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

20 job training coordinating council established under

21 section 122 of the Job Training Partnership Act.

22 (16) The term ‘‘State Human Resource Invest23 ment Council’’ means the council established under

24 section 701 of the Job Training Partnership Act.
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1 (17) The term ‘‘substate area’’ means that geo2 graphic area in a State established pursuant to sec3 tion 117.

4 (18) The term ‘‘substate grantee’’ means that

5 agency, organization, or consortium thereof selected

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

7 (19) The term ‘‘unit of general local govern8 ment’’ means any general purpose political subdivi9 sion of a State which has the power to levy taxes

10 and spend funds, as well as general corporate and

11 police powers.

12 TITLE I—COMPREHENSIVE PROGRAM FOR

13 WORKER REEMPLOYMENT

14 SEC. 101. ALLOTMENT OF FUNDS.

15 (a) IN GENERAL.—Of the funds appropriated pursu16 ant to section 4(a) for any fiscal year, the Secretary

17 shall—

18 (1) allot 75 percent among the States in ac19 cordance with subsection (b); and

20 (2) reserve 25 percent to carry out part B, sub21 ject to the reservation required by subsection (e).

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

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

24 allot the amount available in each fiscal year under sub25 section (a)(1) on the basis of the following factors:
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1 (A) One-third of such amount shall be allotted

2 among the States on the basis of the relative num3 ber of unemployed individuals who reside in each

4 State as compared to the total number of unem5 ployed individuals in all the States.

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

7 among the States on the basis of the relative excess

8 number of unemployed individuals who reside in

9 each State as compared to the total excess number

10 of unemployed individuals in all the States. For pur11 poses of this paragraph, the term ‘‘excess number’’

12 means the number which represents unemployed in13 dividuals in excess of 4.5 percent of the civilian labor

14 force in the State.

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

16 among the States on the basis of the relative num17 ber of individuals who have been unemployed for

18 more than 26 weeks and who reside in each State

19 as compared to the total number of such individuals

20 in all the States.

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

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

23 available in each fiscal year under subsection (a)(1) as fol24 lows:
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1 (A) 25 percent of such amount shall be allotted

2 on the basis of each of the factors described in sub3 paragraphs (A), (B), and (C) of paragraph (1), re4 spectively, for a total of 75 percent of the amount

5 allotted.

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

7 on the basis of the relative number of dislocated

8 workers who reside in each State as compared to the

9 total number of dislocated workers in all States.

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

11 of its allotment percentage for the fiscal year preceding

12 the fiscal year for which the determination is made.

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

14 of its allotment percentage for the fiscal year preceding

15 the fiscal year for which the determination is made.

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

17 of this paragraph the allotment percentage of a State for

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

19 the State under this subsection.

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

21 percentage for fiscal year 1994 shall be the percentage of

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

23 Training Partnership Act.

24 (c) RESERVATIONS FOR STATE ACTIVITIES.—
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1 (1) The Governor may reserve up to 30 percent

2 of the amount allotted to the State under subsection

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

4 this title.

5 (2) Of the amount reserved by the Governor

6 pursuant to paragraph (1)—

7 (A) not more than 15 percent shall be

8 available for the costs of administration of pro9 grams authorized under this title;

10 (B) not more than 20 percent shall be

11 available for the costs of administration of pro12 grams authorized under this title and the costs

13 of technical assistance; and

14 (C) not more than 5 percent shall be avail15 able to carry out the job retention projects au16 thorized under section 116.

17 (d) WITHIN STATE DISTRIBUTION.—

18 (1) The Governor shall allocate the remainder

19 of the amount allotted to the State under subsection

20 (b) to substate areas to carry out activities author21 ized under this title based on an allocation formula

22 prescribed by the Governor. Such formula may be

23 amended by the Governor not more than once for

24 each program year. Such formula shall include the

25 factors described in subsection (b) and such addi-
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1 tional objective and measurable factors as the Gov2 ernor determines are appropriate.

3 (2) Of the amount allocated to each substate

4 area pursuant to paragraph (1) for each program

5 year, not more than 15 percent shall be available for

6 the costs of administration.

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

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

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

10 allocated among Guam, the Virgin Islands, American

11 Samoa, the Commonwealth of the Northern Mariana Is12 lands, the Federated States of Micronesia, the Republic

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

14 authorized under this title.

15 (f) RESERVATIONS FOR NATIONAL ACTIVITIES.—Of

16 the remainder reserved by the Secretary under subsection

17 (a)(2):

18 (1) For each of fiscal years 1995 through

19 1999—

20 (A) not less than 80 percent shall be avail21 able for national discretionary grants under sec22 tions 131 and 132; and

23 (B) not more than 20 percent shall be

24 available for—
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1 (i) evaluation of program perform2 ance, research, and pilot and demonstra3 tion projects described in section 133; and

4 (ii) capacity building, staff develop5 ment and training, and technical assist6 ance described under section 134.

7 (2) For fiscal year 2000 and each succeeding

8 fiscal year—

9 (A) not less than 85 percent shall be avail10 able for national discretionary grants under sec11 tions 131 and 132; and

12 (B) not more than 15 percent shall be

13 available for—

14 (i) evaluation of program perform15 ance, research, and pilot and demonstra16 tion projects described in section 133; and

17 (ii) capacity building, staff develop18 ment and training, and technical assist19 ance described under section 134.

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

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

22 July 1, 1996, and thereafter, the Secretary shall, in ac23 cordance with this section—

24 (1) recapture funds appropriated for such pro25 gram years that are available for recapture, and
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1 (2) use the funds recaptured under paragraph

2 (1) to carry out the national discretionary grant pro3 gram under section 131.

4 (b) AMOUNTS AVAILABLE FOR RECAPTURE.—The

5 amount available for recapture is equal to—

6 (1) the amount by which the unexpended bal7 ance of the State allotment (under section 101(b))

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

9 year for which the determination under this section

10 is made exceeds 20 percent of such allotment for

11 that prior program year, plus

12 (2) the unexpended balance of the State allot13 ment from any program year prior to the program

14 year in which there is such excess.

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

16 awarded to the State from the discretionary funds of the

17 Secretary pursuant to sections 131 and 132 shall not be

18 included in calculating the amounts available for recap19 ture.

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

21 as a method of recapturing funds for the purposes of sub22 section (a)(1), reduce the allotment to the State under sec23 tion 101(b) for the program year subsequent to the pro24 gram year for which the determination is made by an

25 amount equal to the amount available for recapture.
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1 SEC. 103. ELIGIBILITY FOR SERVICES.

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

3 receive services under this title if such individual—

4 (1) has been permanently laid off from full5 time, part-time, or seasonal (including farmworkers

6 and fishermen) employment within the preceding

7 twelve-month period, and—

8 (A) such individual is unlikely to obtain

9 employment in the same or similar occupation

10 due to obsolete skills or a lack of employment

11 opportunities; or

12 (B) such layoff resulted from any perma13 nent closure or any substantial layoff at the

14 plant, facility or enterprise;

15 (2) has received a notice that such individual

16 will be permanently laid off, and—

17 (A) such individual is unlikely to obtain

18 employment in the same or similar occupation

19 due to obsolete skills or a lack of employment

20 opportunities; or

21 (B) such layoff will result from any perma22 nent closure or substantial layoff at a plant, fa23 cility, or enterprise;

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

25 has publicly announced that such facility will be
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1 closed within one year and such individual is un2 likely to—

3 (A) remain employed with such employer

4 at another location; or

5 (B) retire permanently from the labor

6 force on or before such closure;

7 (4) is long-term unemployed and has limited op8 portunities for employment in the same or similar

9 occupation in which such individual was previously

10 employed;

11 (5) was self-employed (including farmers, fish12 ermen and ranchers) and is unemployed as a result

13 of general economic conditions in the community in

14 which such individual resides or because of natural

15 disasters;

16 (6) is certified as eligible under the transitional

17 certification of trade impacted workers program au18 thorized under part D of title II of this Act; or

19 (7) was identified and referred to the program

20 under this title, in accordance with regulations is21 sued by the Secretary, by a State worker profiling

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

23 Security Act.

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

25 a displaced homemaker shall be eligible to receive services
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1 described in section 119(b) and such other services au2 thorized under this title as the Governor determines are

3 appropriate to provide to such individuals if—

4 (1) the displacement occurred within the pre5 ceding twelve-month period,

6 (2) such individual is unemployed, and

7 (3) such individual meets the requirements re8 lating to services provided under this title, other

9 than the requirements of subsection (a).

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

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

12 layoff under which a recall is not expected within

13 twenty-six weeks.

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

15 period of unemployment defined by the Governor,

16 except that such period shall not be less than twen17 ty-seven weeks.

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

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

20 the Job Training Partnership Act.

21 PART A—STATE AND SUBSTATE DELIVERY

22 SYSTEM

23 SEC. 111. STATE ADMINISTRATION AND OVERSIGHT.

24 The State shall be responsible for developing and op25 erating administrative and management systems which en-
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1 sure proper control and accountability for the use of

2 funds, in accordance with the requirements of part E of

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

4 title.

5 SEC. 112. DESIGNATION AND FUNCTIONS OF STATE DIS6 LOCATED WORKER UNIT.

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

8 establish a dislocated worker unit at the State level (here9 after referred to as the ‘‘State dislocated worker unit’’)

10 to carry out the functions described in this section.

11 (b) FUNCTIONS OF UNIT.—

12 (1) RAPID RESPONSE.—The State dislocated

13 worker unit shall carry out the following rapid re14 sponse activities:

15 (A) Receive notices provided pursuant to

16 the Worker Adjustment and Retraining Notifi17 cation Act and collect information identifying

18 the site of other permanent closures and layoffs

19 affecting fifty or more workers.

20 (B) Establish contact with representatives

21 of the employer, affected workers and affected

22 unions, and affected substate grantees within

23 forty-eight hours of being informed of or other24 wise identifying such closure or layoff.
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1 (C) Provide assistance on site within five

2 working days of being informed of or otherwise

3 identifying such closure or layoff (unless rep4 resentatives of the affected workers agree to

5 defer the commencement of assistance), includ6 ing—

7 (i) the provision of information relat8 ing to, and assistance in obtaining access

9 to, available programs and services;

10 (ii) the provision of appropriate reem11 ployment services on an emergency basis;

12 and

13 (iii) the provision of basic reemploy14 ment services in a group setting.

15 (D) Promote the formation of worker-man16 agement transition assistance committees,

17 which meet the requirements of subsection (d),

18 by—

19 (i) providing immediate assistance in

20 the establishment of such committees, in21 cluding—

22 (I) providing immediate financial

23 assistance to cover startup costs of

24 the committee;
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1 (II) providing a list of individuals

2 from which the chairperson of the

3 committee may be selected; and

4 (III) requesting the list of com5 mittee members from the employer

6 and union, or providing assistance in

7 the selection of worker representatives

8 in the event no union is present; and

9 (ii) providing technical assistance in

10 the development by such committees of a

11 strategy for assessing the employment and

12 training needs of each affected worker and

13 for obtaining the services and assistance

14 necessary to meet those needs, which may

15 include—

16 (I) providing technical advice as

17 well as information on sources of as18 sistance, and

19 (II) serving as liaison with other

20 public and private services and pro21 grams.

22 (E) Prepare an action plan for the provi23 sion of reemployment and training services to

24 eligible individuals, including group counseling,

25 preliminary assessments, and labor market in-
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1 formation, which may include assistance in

2 planning for the establishment of an on-site

3 transition center described in section 115(c).

4 (2) INFORMATION COLLECTION AND DISSEMI5 NATION.—The State dislocated worker unit shall

6 carry out the following information collection and

7 dissemination activities:

8 (A) Provide to employers and employees

9 throughout the State information relating to

10 the Worker Adjustment and Retraining Notifi11 cation Act, including the requirements of such

12 Act, and information relating to the eligibility

13 requirements and services and benefits available

14 under this title.

15 (B) Collect information relating to—

16 (i) economic dislocation, including po17 tential closings and layoffs and the impact

18 of closures and layoffs to which such unit

19 has responded, and

20 (ii) available programs and resources

21 within the State to serve affected workers.

22 (C) Disseminate the information collected

23 pursuant to subparagraph (B) to the Governor

24 to assist in providing an adequate information
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1 base for effective program management, review,

2 and evaluation.

3 (D) Disseminate information throughout

4 the State on the services and activities carried

5 out by the State dislocated worker unit.

6 (3) PROGRAM SUPPORT.—The State dislocated

7 unit shall carry out the following program support

8 activities:

9 (A) Provide technical assistance and advice

10 to substate grantees.

11 (B) Work with employers and representa12 tives of employees in promoting labor-manage13 ment cooperation to achieve the objectives of

14 this title.

15 (C) Assist each local community affected

16 by a mass layoff or plant closing in developing

17 and implementing an adjustment plan, includ18 ing assistance in obtaining access to State eco19 nomic development assistance.

20 (4) COORDINATION.—The State dislocated

21 worker unit shall exchange information and coordi22 nate programs with—

23 (A) the appropriate economic development

24 agency and job retention projects authorized

25 under section 116, for the purpose of identify-
27

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1 ing potential layoffs and for the purpose of de2 veloping strategies to avert plant closings or

3 mass layoffs and to accelerate the reemploy4 ment of dislocated workers;

5 (B) State education, training and social

6 services programs;

7 (C) State labor federations;

8 (D) State-level general purpose business

9 organizations; and

10 (E) all other programs available to assist

11 dislocated workers, including the Employment

12 Service, the unemployment insurance system,

13 one-stop career centers established under title

14 III of this Act, and student financial aid pro15 grams.

16 (c) COORDINATION WITH CAREER CENTERS.—In

17 carrying out this section, the State dislocated worker unit

18 shall coordinate its actions with the affected substate

19 grantees and career centers.

20 (d) WORKER-MANAGEMENT TRANSITION ASSIST21 ANCE COMMITTEES.—The worker-management transition

22 assistance committees promoted by the State dislocated

23 worker unit pursuant to subsection (b)(1)(D) shall ordi24 narily include (but not be limited to) the following:
28

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1 (1) Shared and equal participation by workers

2 (and their representatives) and management, and

3 which may include participation from community

4 representatives as appropriate.

5 (2) Shared financial participation between the

6 employer and the State, using funds provided under

7 this title in paying for the operating expenses of the

8 committee.

9 (3) A chairperson, to oversee and guide the ac10 tivities of the committee, who shall—

11 (A) be jointly selected by the worker and

12 management representatives of the committee,

13 (B) not be employed or under contract

14 with or members of the immediate family of

15 labor or management at the site, and

16 (C) provide advice and leadership to the

17 committee and prepare a report on its activities.

18 (4) Operations pursuant to a formal agreement,

19 terminated at will by the workers or management,

20 and terminated for cause by the Governor.

21 (e) COVERAGE OF LAYOFFS.—The Governor may au22 thorize the provision of the rapid response activities de23 scribed in subsection (b)(1) to layoffs of less than fifty

24 workers if such layoffs are determined by the Governor
29

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1 to have a significant adverse economic impact on a local

2 community.

3 (f) PLANT BUYOUT STUDY.—In a situation involving

4 an impending permanent closure or substantial layoff, a

5 State may provide funds, where other public or private re6 sources are not expeditiously available, for a preliminary

7 assessment of the advisability of having a company or

8 group, including the workers, purchase the plant and con9 tinue it in operation. Such assessment shall not include

10 a feasibility study relating to such purchase.

11 (g) PROHIBITION ON TRANSFER OF RESPONSIBIL12 ITY.—The State shall not transfer the responsibility for

13 the rapid response assistance functions of the State unit

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

15 carry out such functions through agreement, grant, con16 tract, or other arrangement with another entity, such as

17 a substate grantee or a career center.

18 (h) FEDERAL OVERSIGHT OF RAPID RESPONSE.—

19 The Secretary shall oversee the administration by each

20 State of the rapid response assistance services provided

21 in such State and evaluate the effectiveness, efficiency,

22 and timeliness of the delivery of such services. The Sec23 retary may establish performance standards relating to

24 the provision of such services by the State. If the Sec25 retary determines that such services are not being per-
30

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1 formed adequately, the Secretary shall implement appro2 priate corrective action.

3 SEC. 113. DEVELOPMENT AND MAINTENANCE OF STATE

4 AND LOCAL LABOR MARKET INFORMATION

5 SYSTEMS.

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

7 strategy described in section 402 of this Act to establish

8 a nationwide system of effective labor market information,

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

10 comprehensive labor market information system in the

11 State that—

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

13 dissemination of quality labor market information

14 that will enhance the employment opportunities

15 available to permanently laid off workers and other

16 individuals seeking employment, and

17 (2) provides support for needed improvements

18 or adjustments in current labor market information

19 systems and integrates such systems to meet local

20 and State labor market needs.

21 (b) CONTENT.—The labor market information de22 scribed in subsection (a)(1) shall include the information

23 specified in section 403(a) of this Act relating to the na24 tional labor market information system.
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1 (c) STANDARDS FOR INFORMATION COLLECTION AND

2 DISSEMINATION.—The Governor shall ensure that data

3 collection and dissemination systems are developed in ac4 cordance with the technical standards specified in section

5 403(b) of this Action relating to the national labor market

6 information system.

7 (d) COORDINATION OF DATA COLLECTION AND SUR8 VEY CONSOLIDATION.—Consistent with the technical

9 standards specified in section 403(b), the Governor shall

10 ensure, to the extent feasible that—

11 (1) automated technology will be used in data

12 collection and dissemination;

13 (2) the State dislocated worker unit, the sub14 state grantees, and the career centers under this

15 title have timely access to and exchange information

16 relating to quality labor market information;

17 (3) administrative records are designed to re18 duce paperwork; and

19 (4) available administrative data and multiple

20 surveys are shared or consolidated to reduce duplica21 tion of recordkeeping of State and local agencies.

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

23 designate an agent within the State to be responsible for

24 oversight and management of a statewide comprehensive

25 labor market and occupational information system that—
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1 (1) meets the requirements of this section;

2 (2) provides such training and technical assist3 ance necessary to facilitate the collection of data and

4 the dissemination of information through the pro5 grams assisted under this title;

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

7 cooperative agreements authorized in section 402;

8 and

9 (4) funds research, evaluation, and demonstra10 tion projects designed to make improvements in the

11 statewide labor market information system.

12 (f) COORDINATION OF RESOURCES.—The Governor

13 shall coordinate the activities carried out under this title

14 with the labor market information activities carried out

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

16 national labor market information program described in

17 title IV of this Act. In maintaining the system described

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

19 otherwise available to the Governor for such purposes

20 under other Federal laws, such as the Job Training Part21 nership Act and the Wagner-Peyser Act.

22 (g) METHODS OF COLLECTION AND DISSEMINA23 TION.—In order to facilitate the collection and dissemina24 tion of the data described in subsection (b), the Governor

25 shall—
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1 (1) identify and utilize cost-effective methods

2 for obtaining such data as are necessary to carry out

3 this section which, notwithstanding any other provi4 sion of law, may include access to earnings records,

5 State employment security records, records collected

6 under the Federal Insurance Contributions Act

7 (chapter 21 of the Internal Revenue Code of 1986),

8 State aid to families with dependent children

9 records, secondary and post-secondary education

10 records, and similar records or measures, with ap11 propriate safeguards to protect the confidentiality of

12 the information obtained; and

13 (2) publish and make available labor market

14 and occupational supply and demand information

15 and career information to State agencies, public

16 agencies, libraries, employers, and individuals who

17 are in the process of making career choices.

18 SEC. 114. COORDINATION WITH WORKER PROFILING AND

19 RETRAINING INCOME SUPPORT PROGRAMS.

20 (a) WORKER PROFILING.—The Governor shall co21 ordinate programs under this title with the worker

22 profiling system authorized under title III of the Social

23 Security Act. Such coordination shall include methods for

24 ensuring the prompt referral, in accordance with regula25 tions issued by the Secretary, of the claimants identified
34

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1 under such profiling system to career centers authorized

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

3 (b) RETRAINING INCOME SUPPORT.—The Governor

4 shall coordinate programs under this title with the retrain5 ing income support program authorized under part A of

6 title II of this Act.

7 SEC. 115. STATE SUPPLEMENTARY GRANTS FOR AREAS OF

8 SPECIAL NEED.

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

10 to provide the services authorized under section 119 to eli11 gible individuals in areas of the State experiencing sub12 stantial increases in the number of eligible individuals due

13 to plant closures, base closures and mass layoffs.

14 (b) ELIGIBLE ENTITIES.—The grants authorized

15 under subsection (a) may be awarded to—

16 (1) the substate grantees in the areas affected

17 by such closures and mass layoffs;

18 (2) employers and employer associations;

19 (3) transition assistance committees and other

20 employer-employee entities;

21 (4) representatives of employees;

22 (5) industry consortia; and

23 (6) State agencies.

24 (c) ESTABLISHMENT OF ADDITIONAL SERVICE CEN25 TERS.—
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1 (1) IN GENERAL.—The Governor may use the

2 grant funds available under this section to establish

3 a center, including an on-site transition center de4 scribed in paragraph (2), at the site of a plant clo5 sure, base closure or mass layoff to provide the serv6 ices described in section 119. Such center shall be

7 established after formal consultation with the sub8 state grantee for the affected area and shall be oper9 ated in coordination with the career centers in the

10 affected area.

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

12 available under this section may be used to establish

13 a transition center that—

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

15 base closure, or mass layoff for the purpose of

16 providing reemployment services to eligible indi17 viduals affected by such layoff or closure,

18 (B) includes substantial funding from

19 sources other than public funds,

20 (C) is operated with the concurrence and

21 participation of affected workers and their rep22 resentatives and the affected employer, includ23 ing the worker-management transition assist24 ance committee established in accordance with

25 section 112(d) if such committee is established.
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1 (D) provides the reemployment services de2 scribed in sections 119 (b) and (c) directly or

3 through contracts with other entities, such as

4 outplacement agencies, and

5 (E) is administered in coordination with

6 the career centers in the substate area, includ7 ing arrangements to ensure that the affected

8 workers have the opportunity to receive services

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

10 receiving such services at the transition center.

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

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

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

14 award grants to assist projects that—

15 (1) provide services to upgrade the skills of em16 ployed workers who are at risk of being permanently

17 laid off; and

18 (2) assist in retraining employed workers in

19 new technologies and work processes that will facili20 tate the conversion or restructuring of businesses

21 into high performance work organizations and avert

22 plant closings or substantial layoffs.

23 (b) STATE AND EMPLOYER CONTRIBUTION RE24 QUIRED.—In order for a project to be eligible for assist25 ance under subsection (a), the amount of the grant to be
37

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1 awarded shall be matched by an equal amount provided

2 by a combination of—

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

4 other than Federal funds; and

5 (2) funds provided by the affected employers or

6 businesses.

7 (c) CONSULTATIONS.—Prior to awarding grants

8 under this section, the Governor shall consult with unions

9 representing affected workers regarding the proposed

10 projects.

11 SEC. 117. ESTABLISHMENT OF SUBSTATE ADMINISTRATIVE

12 STRUCTURE.

13 (a) DESIGNATION OF SUBSTATE AREAS.—

14 (1) The Governor of each State shall, after con15 sultation with the State council and local elected of16 ficials, designate substate areas for the State.

17 (2) Each service delivery area within a State

18 shall be included within a substate area and no serv19 ice delivery area shall be divided among two or more

20 substate areas.

21 (3) In making designations of substate areas,

22 the Governor shall consider—

23 (A) the availability of services throughout

24 the State;
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1 (B) the capability to coordinate the deliv2 ery of services with other job training, human

3 services and economic development programs;

4 and

5 (C) the geographic boundaries of labor

6 market areas within the State.

7 (4) Subject to paragraphs (2) and (3), the Gov8 ernor—

9 (A) shall designate as a substate area any

10 single service delivery area that—

11 (i) has a population of two hundred

12 thousand or more, and

13 (ii) requests such designation;

14 (B) shall designate as a substate area any

15 two or more contiguous service delivery areas—

16 (i) that in the aggregate have a popu17 lation of two hundred thousand or more,

18 and

19 (ii) that request such designation; and

20 (C) shall designate as a substate area any

21 concentrated employment program grantee for

22 a rural area described in section

23 101(a)(4)(A)(iii) of the Job Training Partner24 ship Act.
39

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1 (5) The Governor may deny a request for des2 ignation under paragraph (4)(B) if the Governor de3 termines that such designation would not be consist4 ent with the effective delivery of services to eligible

5 dislocated workers in various labor market areas (in6 cluding urban and rural areas) within the State, or

7 would not otherwise be appropriate to carry out the

8 purposes of this title.

9 (6) The Governor shall not designate as a sub10 state area any area with a population of less than

11 two hundred thousand unless such area meets the

12 requirements of paragraph (4)(C).

13 (7) From the funds reserved under section

14 101(c)(1), the Governor may award grants to en15 courage the formation of substate areas that are

16 based on labor market areas.

17 (8) The Governor may designate as substate

18 areas under this title areas designated as substate

19 areas under title III of the Job Training Partnership

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

21 meet the requirements of this subsection.

22 (9) The designations made under this sub23 section may not be revised more than once every

24 four years.

25 (b) DESIGNATION OF SUBSTATE GRANTEES.—
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1 (1) AGREEMENT.—A substate grantee shall be

2 designated, on a quadrennial basis, for each substate

3 area. Such substate grantee shall be designated in

4 accordance with an agreement among the Governor,

5 the local elected official or officials of such area, and

6 the private industry council or councils of such area.

7 Whenever a substate area is represented by more

8 than one such official or council, the respective offi9 cials and councils shall each designate representa10 tives, in accordance with procedures established by

11 the Governor (after consultation with the State

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

13 agreement cannot be reached on the selection of a

14 substate grantee, the Governor shall select the sub15 state grantee.

16 (2) ELIGIBILITY.—Entities eligible for designa17 tion as substate grantees include—

18 (A) private industry councils in the sub19 state area;

20 (B) service delivery area grant recipients

21 or administrative entities under the Job Train22 ing Partnership Act;

23 (C) private nonprofit organizations;

24 (D) units of general local government in

25 the substate area, or agencies thereof;
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1 (E) local offices of State agencies;

2 (F) other public agencies, such as commu3 nity colleges and area vocational schools; and

4 (G) consortia of the entities described in

5 subparagraphs (A) through (F).

6 (c) FUNCTIONS OF SUBSTATE GRANTEES.—

7 (1) IN GENERAL.—Except as provided in para8 graph (2), the substate grantees designated pursu9 ant to this subsection shall—

10 (A) receive and administer funds allocated

11 to the substate area, including the administra12 tion of payments to service providers in accord13 ance with section 119(d)(2);

14 (B) administer the process for the selection

15 of career center operators established pursuant

16 to section 118;

17 (C) conduct oversight and monitoring of

18 the program carried out within the substate

19 area and coordinate the operation of the career

20 centers established within the substate area;

21 and

22 (D) prepare and make publicly available a

23 biennial written plan describing the objectives

24 to be accomplished and the activities to be un25 dertaken in the substate area under this title.
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1 (2) SPECIAL RULE.—

2 (A) SELECTION PROCESS FOR CAREER

3 CENTER OPERATORS.—If a substate grantee de4 sires to be selected to operate a career center,

5 the process for the selection of career center op6 erators in the substate area shall be adminis7 tered by the private industry council or councils

8 established in such substate area. If such sub9 state grantee is such private industry council,

10 the process for the selection of career center op11 erators in the substate area shall be adminis12 tered by the Governor.

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

14 selected to operate a career center, the over15 sight of the career centers in the substate area

16 shall be carried out by the Governor.

17 SEC. 118. ESTABLISHMENT OF CAREER CENTERS.

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

19 pursuant to section 117 shall, in accordance with the re20 quirements of this section, establish one or more career

21 centers in each substate area.

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

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

24 services provided pursuant to section 119.

25 (c) SELECTION OF CENTERS.—
43

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1 (1) SELECTION PROCESS.—The substate grant2 ee shall select the career center operators in accord3 ance with the requirements of this subsection.

4 (2) ELIGIBLE ENTITIES.—Any entity or consor5 tium of entities located in the substate area may

6 apply, in accordance with the procedures described

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

8 operator. Such entities may include—

9 (A) Employment Service offices,

10 (B) service delivery area grant recipients

11 or administrative entities under the Job Train12 ing Partnership Act,

13 (C) substate grantees under this title,

14 (D) community colleges and area voca15 tional schools,

16 (E) community-based and other private,

17 nonprofit organizations, and

18 (F) other interested private for-profit and

19 public organizations and entities.

20 (3) PUBLICATION OF PROCEDURES.—The sub21 state grantee, after consultation with the Governor

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

23 that is generally available, information to notify or24 ganizations and individuals in the substate area of—
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1 (A) the estimated number of career centers

2 to be established in the substate area;

3 (B) the application procedure for any en4 tity or consortium of entities desiring to be se5 lected to operate such centers, including when

6 and where such application is to be submitted

7 and what information such application is to

8 contain;

9 (C) the criteria for selection that will be

10 used, consistent with paragraph (4); and

11 (D) other information the substate grantee

12 considers relevant to the selection of operators

13 and administration of such centers.

14 (4) SELECTION CRITERIA.—

15 (A) OBJECTIVE FACTORS.—The substate

16 grantee, consistent with guidelines issued by the

17 Secretary, shall use objective criteria and per18 formance measures in assessing applications

19 submitted for selection as a career center opera20 tor.

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

22 selected as a career center operator under this

23 title unless such applicant demonstrates to the

24 satisfaction of the substate grantee the ability

25 to operate a career center that would—
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1 (i) provide the services described in

2 section 119;

3 (ii) utilize automated information sys4 tems to facilitate the exchange of informa5 tion among career centers;

6 (iii) meet the performance standards

7 prescribed pursuant to section 152;

8 (iv) meet the fiscal control require9 ments provided in part E;

10 (v) administer the process of referring

11 participants to education and training

12 services in an objective and equitable man13 ner; and

14 (vi) meet such other requirements as

15 the substate grantee determines is appro16 priate.

17 (C) LEVEL OF WAGES AND BENEFITS.—

18 The level of wages and benefits paid to non19 managerial employees by an applicant may not

20 be considered as a factor in the selection of a

21 career center operator. Other cost factors may

22 be taken into account in such selection.

23 (5) PERIOD OF SELECTION.—The substate

24 grantee shall select career center operators pursuant
46

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1 to the requirements of this subsection once every

2 four years.

3 (6) ENFORCEMENT OF HONEST BROKER FUNC4 TIONS.—The substate grantee shall review, at least

5 once each program year, the education and training

6 referral practices of any career center that is oper7 ated by an entity that concurrently provides edu8 cation and training services to participants under

9 this title. If the substate grantee determines that

10 such center has engaged in a pattern of inappropri11 ate referrals to the education and training services

12 provided by the operator of such center, the substate

13 grantee may terminate the agreement to operate

14 such center or may require such operator to cease

15 providing education and training services to partici16 pants under this title as a condition for continuing

17 to operate such center.

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

19 the career centers established under this section, a sub20 state grantee may use funds allocated to the substate area

21 to establish temporary, on-site transition centers that

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

23 Such centers may be established pursuant to grants, con24 tracts, or other arrangements with the entities described

25 in subsection (c)(2) of this section.
47

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1 SEC. 119. SERVICES TO BE PROVIDED TO ELIGIBLE INDI2 VIDUALS.

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

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

5 (1) basic reemployment services in accordance

6 with subsection (b);

7 (2) intensive reemployment services in accord8 ance with subsection (c);

9 (3) education and training services in accord10 ance with subsection (d);

11 (4) retraining income support in accordance

12 with subsection (e);

13 (5) supportive services in accordance with sub14 section (f); and

15 (6) supplemental wage allowances for older

16 workers in accordance with subsection (g).

17 (b) BASIC REEMPLOYMENT SERVICES.—Each career

18 center established pursuant to this title shall make avail19 able to eligible individuals the following services:

20 (1) Outreach and provision of information to

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

22 reemployment and training services, including efforts

23 to expand awareness of training and placement op24 portunities for hard-to-serve individuals such as

25 those with limited English proficiency and those with

26 disabilities.
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1 (2) Intake and determination of eligibility for

2 assistance under this title.

3 (3) Orientation to the information and services

4 available through such center.

5 (4) Assistance in filing an initial claim for un6 employment compensation.

7 (5) A preliminary assessment of the skill levels

8 (including appropriate testing) and service needs of

9 such individuals, which may include such factors as

10 basic skills, occupational skills, prior work experi11 ence, employability, interests, aptitudes, and sup12 portive service needs.

13 (6) Information relating to local, regional and

14 national labor markets, including—

15 (A) job vacancy listings in such markets,

16 and

17 (B) information relating to local occupa18 tions in demand and the earnings and skill re19 quirements for such occupations.

20 (7) Job search assistance, including resume and

21 interview preparation, and workshops.

22 (8) Job referral and job placement assistance.

23 (9) Information relating to education and job

24 training programs, including the eligibility require25 ments of and services provided by such programs,
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1 the availability and quality of such programs, and

2 student financial assistance available for such pro3 grams.

4 (10) Assistance in evaluating whether such indi5 viduals are likely to be eligible for any employment

6 and training programs administered by the Sec7 retary other than this title.

8 (11) Information collected pursuant to the per9 formance standards and quality assurance require10 ments of part C of this title.

11 (12) Information relating to programs and pro12 viders of dependent care and other supportive serv13 ices available in the local area.

14 (13) Group counseling, which may include peer

15 counseling, and which shall be available to such indi16 viduals jointly with their immediate families, includ17 ing group counseling relating to stress management

18 and financial management.

19 (14) Soliciting and accepting job orders submit20 ted by employers in the substate area, and referring

21 individuals in accordance with such orders.

22 (c) INTENSIVE REEMPLOYMENT SERVICES.—

23 (1) IN GENERAL.—Each career center estab24 lished pursuant to this title shall make available, to

25 eligible individuals who have received basic reemploy-
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1 ment services under subsection (b) and have been

2 unable to obtain employment through such services,

3 the following services:

4 (A) Comprehensive and specialized assess5 ments of the skill levels and service needs of in6 dividuals, which may include—

7 (i) diagnostic testing and other assess8 ment tools; and

9 (ii) in-depth interviewing and evalua10 tion to identify employment barriers and

11 appropriate employment goals.

12 (B) The development of an individual re13 employment plan, which shall identify the em14 ployment goal (including, in appropriate cir15 cumstances, nontraditional employment), appro16 priate achievement objectives, and the appro17 priate combination of services for a participant

18 to achieve the employment goal.

19 (C) Individualized counseling and career

20 planning, including peer counseling and coun21 seling and planning relating to nontraditional

22 employment opportunities.

23 (D) Case management for individuals re24 ceiving education, training and supportive serv25 ices.
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1 (E) Job development.

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

3 (G) Relocation allowances.

4 (H) Assistance in the selection of edu5 cation and training providers.

6 (I) Assistance in obtaining income support

7 for which the individual is eligible, including

8 student financial assistance, to enable such in9 dividual to participate in training.

10 (J) Followup counseling for individuals

11 placed in training or employment.

12 (2) ADDITIONAL CONDITIONS.—

13 (A) REEMPLOYMENT PLAN.—

14 (i) JOINT DEVELOPMENT.—The indi15 vidual reemployment plan described in

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

17 by the eligible individual and a career

18 counselor. Both parties shall sign the plan

19 and periodically review the progress of the

20 individual in achieving the objectives set

21 forth in the plan. In the event of a dis22 agreement over the content of the plan, the

23 eligible individual shall be provided an op24 portunity to appeal the career counselor’s

25 recommendation pursuant to section 164.
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1 (ii) EMPLOYMENT GOAL.—The em2 ployment goal identified under an individ3 ual reemployment plan described under

4 paragraph (1)(B) shall relate to employ5 ment in an occupation for which there is a

6 demand in the local area, or in another

7 area to which the individual is willing to

8 relocate.

9 (iii) PROHIBITION ON PRIVATE AC10 TIONS.—Nothing in this section shall be

11 construed to establish a right for an indi12 vidual to bring a private action to obtain

13 the services described in the reemployment

14 plan.

15 (B) OUT-OF-AREA JOB SEARCH ALLOW16 ANCE.—

17 (i) IN GENERAL.—Out-of-area job

18 search allowances provided under para19 graph (1)(F) shall provide reimbursement

20 to the individual of not more than 90 per21 cent of the cost of necessary job search ex22 penses, up to a maximum payment speci23 fied by the Secretary in regulations.
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1 (ii) CRITERIA FOR GRANTING JOB

2 SEARCH ALLOWANCES.—A job search al3 lowance may be granted only—

4 (I) to assist an eligible individual

5 in securing a job within the United

6 States; and

7 (II) where the career center de8 termines that such employee cannot

9 reasonably be expected to secure suit10 able employment in the commuting

11 area in which the worker resides.

12 (C) RELOCATION ALLOWANCE.—

13 (i) IN GENERAL.—Relocation allow14 ances provided under paragraph (1)(G)

15 may only be granted to assist an eligible

16 individual in relocating within the United

17 States and only if the career center deter18 mines that such employee—

19 (I) cannot reasonably be expected

20 to secure suitable employment in the

21 commuting area in which the em22 ployee resides;

23 (II) has obtained suitable em24 ployment affording a reasonable ex25 pectation of long-term duration in the
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1 area in which the employee wishes to

2 relocate, or has obtained a bona fide

3 offer of such employment, and

4 (III) is totally separated from

5 employment at the time relocation

6 commences.

7 (ii) AMOUNT OF RELOCATION ALLOW8 ANCE.—The amount of any relocation al9 lowance for any eligible individual may not

10 exceed an amount which is equal to the

11 sum of—

12 (I) 90 percent of the reasonable

13 and necessary expenses, specified in

14 regulations prescribed by the Sec15 retary, incurred in transporting an in16 dividual and the individual’s family, if

17 any, and household effects, and

18 (II) a lump sum equivalent to

19 three times the employee’s average

20 weekly wage in the previous job, up to

21 a maximum payment specified by the

22 Secretary in regulations.

23 (d) EDUCATION AND TRAINING.—

24 (1) AVAILABLE SERVICES.—Each career center

25 shall make available a list of eligible providers of—
55

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1 (A) basic skills training, including remedial

2 education, literacy training, and English-as-a3 second language instruction;

4 (B) occupational skills training, provided

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

6 (C) other skills-based education and train7 ing that such center considers appropriate,

8 which may include entrepreneurial training and

9 training in skills required for high performance

10 work organizations, such as problem solving

11 and skills related to the use of new tech12 nologies.

13 (2) REFERRALS.—An eligible individual who

14 has an individual reemployment plan developed pur15 suant to subsection (c)(1)(B) that specifies edu16 cation and training services as are necessary to the

17 reemployment of such individual shall, in consulta18 tion with a career counselor, select a service provider

19 for such services from the list described in para20 graph (1). The career centers shall refer such indi21 viduals to such service providers and arrange with

22 the substate grantee for payment to the provider for

23 the services provided consistent with the limitation

24 contained in paragraph (5).
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1 (3) ELIGIBLE PROVIDERS.—For the purposes of

2 this title, an eligible provider of education and train3 ing services is a provider that meets the require4 ments of section 154.

5 (4) CONTRACT EXCEPTIONS.—Education and

6 training services authorized under this title may be

7 provided pursuant to a contract for services between

8 the substate grantee and an eligible service provider

9 in lieu of the referral procedures described in para10 graph (2) if such services—

11 (A) are customized by a provider to meet

12 the particular needs of a specific group of eligi13 ble individuals in the substate area; or

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

15 employer.

16 (5) CAP ON TRAINING.—

17 (A) LIMITATION.—The program under this

18 title shall not pay an amount in excess of

19 $4,750 for the provision of education and train20 ing to any individual under this subsection over

21 any twelve-month period.

22 (B) RELATIONSHIP TO STUDENT FINAN23 CIAL ASSISTANCE.—

24 (i) For purposes of determining a stu25 dent’s need for grant, loan, or work assist-
57

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1 ance under title IV of the Higher Edu2 cation Act of 1965, the funds provided to

3 a participant for education and training

4 under this subsection shall be considered to

5 be estimated financial assistance not re6 ceived under such title IV for the purpose

7 of section 471 (3) of such Act.

8 (ii) Notwithstanding section 401(b) of

9 such Act, the funds provided to a partici10 pant for education and training under this

11 subsection shall be applied to reduce the

12 student’s cost of attendance (as defined in

13 section 472 of such Act) prior to determin14 ing the amount of a student’s Federal Pell

15 Grant award under subpart 1 of part A of

16 title IV of such Act, except that such re17 duction shall not result in a negative num18 ber.

19 (iii) Nothing in this Act shall be con20 strued to modify the eligibility require21 ments applicable to students, programs of

22 study, or institutions of higher education

23 under title IV of such Act.

24 (6) LIMIT ON LENGTH OF TRAINING.—No par25 ticipant may receive assistance from funds under
58

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1 this title for education or training for more than one

2 hundred and four weeks in a five-year period.

3 (7) APPROVED TRAINING.—

4 (A) RELATIONSHIP TO INCOME SUPPORT

5 PROGRAM UNDER TITLE II.—For the purposes

6 of the program authorized under part A of title

7 II, the career centers shall be considered an

8 agency certified by the Secretary to develop a

9 reemployment plan.

10 (B) RELATIONSHIP TO UNEMPLOYMENT

11 COMPENSATION.—An eligible individual partici12 pating in education and training services under

13 this title shall be deemed to be in training with

14 the approval of the State agency for the pur15 poses of section 3304(a)(8) of the Internal Rev16 enue Code of 1986.

17 (8) ON-THE-JOB TRAINING.—The provisions of

18 paragraphs (5), (6), and (7) shall not apply to on19 the-job training provided under this title. Such on20 the-job training shall be provided consistent with the

21 limitations described in section 161(d).

22 (e) RETRAINING INCOME SUPPORT.—

23 (1) IN GENERAL.—Eligible individuals receiving

24 education and training services pursuant to sub25 section (d) who meet the requirements for receiving
59

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1 retraining income support under part A of title II of

2 this Act shall be referred to such program for such

3 support. For program years 1995 through 1999, in4 dividuals who do not meet the requirements of such

5 program but who do meet the requirements of para6 graph (2) shall, to the extent appropriated funds are

7 available, be provided retraining income support in

8 accordance with this subsection.

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

10 to the extent appropriated funds are available, be

11 provided retraining income support in accordance

12 with this subsection if such individual—

13 (A) has been permanently laid off;

14 (B) either—

15 (i) had been continuously employed at

16 the time of such permanent layoff for a pe17 riod of one year or more, but less than

18 three years, by the employer from whom

19 such individual has been permanently laid

20 off; or

21 (ii) was continuously employed in the

22 same occupation and industry by an em23 ployer for a period of one year or more and

24 was, within the preceding twelve-month pe25 riod—
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1 (I) separated from such em2 ployer, and

3 (II) employed in the same occu4 pation and industry by the subsequent

5 employer from whom such individual

6 has been permanently laid off;

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

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

9 have been entitled to if such individual had ap10 plied therefor) unemployment compensation

11 under any Federal or State law for a week

12 within the benefit period—

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

14 (II) which began (or would have

15 begun) by reason of the filing of a claim

16 for unemployment compensation by such

17 individual after such layoff;

18 (ii) has exhausted all rights to any unem19 ployment compensation to which such individual

20 was entitled (or would have been entitled if

21 such individual had applied therefor); and

22 (iii) does not have an unexpired waiting

23 period applicable to such individual for such un24 employment compensation;
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1 (D) has been enrolled in education or

2 training pursuant to subsection (d) by—

3 (i) the end of the sixteenth week after

4 the permanent layoff described in subpara5 graph (A), or, if later, the end of the four6 teenth week after such individual was in7 formed that the layoff will exceed six

8 months; or

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

10 thirty days after the periods described in

11 clause (i), in cases where the substate

12 grantee determines, in accordance with

13 guidelines issued by the Secretary, that

14 there are extenuating circumstances that

15 justify such extension, such as a cancella16 tion of a course, a first available enroll17 ment date that is after the periods de18 scribed in subparagraph (A), or the com19 mencement of negotiations for reopening a

20 plant or facility from which an individual

21 has been laid off; and

22 (E) is participating, and making satisfac23 tory progress, in education or training provided

24 pursuant to subsection (d).

25 (3) SPECIAL RULES.—
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1 (A) CONTINUOUS EMPLOYMENT.—

2 (i) For purposes of clause (ii) of para3 graph (2)(B) and subject to the limitations

4 of clause (ii) of this subparagraph, contin5 uous employment shall be deemed to in6 clude any week in which an individual—

7 (I) was on employer-authorized

8 leave for purposes of vacation, sick9 ness, injury or inactive duty or active

10 duty military service for training,

11 (II) was on employer-authorized

12 leave because of circumstances de13 scribed in subsection 102(a) of the

14 Family and Medical Leave Act of

15 1993,

16 (III) did not work because of a

17 disability that is compensable under a

18 worker’s compensation law or plan of

19 a State of the United States,

20 (IV) had his, or her, employment

21 interrupted in order to serve as a full22 time representative of a labor organi23 zation in such firm or subdivision,

24 (V) was on call-up for purposes

25 of active duty in a reserve status in
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1 the Armed Forces of the United

2 States, provided such active duty is

3 ‘‘Federal service’’ as defined in sec4 tion 8521(a)(1) of title 5, United

5 States Code, or

6 (VI) was on temporary layoff.

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

8 more than the following number of weeks

9 within a one-year period may be treated as

10 weeks of employment:

11 (I) Seven weeks in the case of

12 weeks described in subclauses (I) or

13 (IV) of clause (i), or both.

14 (II) Twelve weeks in the case of

15 weeks described in subclause (II) of

16 clause (i).

17 (III) Twenty-six weeks in the

18 case of weeks described in subclauses

19 (III) and (V) of clause (i).

20 (B) SAME EMPLOYER.—

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

22 paragraph (2)(B), employment deemed to

23 be employment for a single employer shall

24 include—
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1 (I) all employment that was cov2 ered by a multiemployer plan defined

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

4 Retirement Income Security Act of

5 1974;

6 (II) all employment that was ob7 tained through a single hiring hall,

8 (III) all employment for the em9 ployer from whom the individual was

10 laid off or the predecessor of such em11 ployer, and

12 (IV) all employment for employ13 ers in a joint employment relation14 ship, as described in section 791.2(b)

15 of title 29 of the Code of Federal Reg16 ulations, with the individual.

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

18 clause (i), an employer shall be considered

19 a predecessor of the employer from whom

20 the individual was laid off (hereinafter re21 ferred to as successor employer) if—

22 (I) the successor employer ac23 quired substantially all the property

24 used in a trade or business, or used in
65

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1 a separate unit of a trade or business,

2 from such employer; and

3 (II) the individual who was laid

4 off was employed by such employer in

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

7 immediately before the acquisition and

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

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

13 For purposes of subparagraph (E) of paragraph

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

16 education or training program during any week

17 which is part of a break from training that does

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

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

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

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

3 (but not below zero) by—

4 (A) any training income support provided

5 for such week to such individual under another

6 Federal program;

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

9 the most recent weekly benefit amount of the

10 unemployment compensation payable to such

11 individual for a week of total unemployment.

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

14 to an individual under this subsection shall be the

15 amount which is the product of twenty-six multiplied

16 by the retraining income support payable to the indi17 vidual for a week of total unemployment (as deter18 mined under paragraph (4)), but such product shall

19 be reduced by the total sum of extended and addi20 tional compensation to which the individual was enti21 tled in the worker’s first benefit period as described

22 in paragraph (2)(C).

23 (6) ADMINISTRATION.—The substate grantee

24 shall enter into an agreement with the State agency

25 charged with the administration of the State unem-
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1 ployment compensation law under which such agency

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

4 this subsection.

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

7 training pursuant to subsection (d) in applying for

8 retraining income support under either part A of

9 title II of this Act or this subsection depending on

10 the program for which such individual is eligible. If

11 such individual is not eligible for either program and

12 such individual believes income support is necessary

13 to enable participation in training, the career center

14 shall assist such individual in applying for other ap15 propriate sources of such income support, including

16 student financial aid.

17 (8) INFORMATION DISSEMINATION.—The career

18 centers shall provide individuals determined eligible

19 under this title with information relating to the

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

22 Such information shall include the provision, as soon

23 as is practicable, of information to such individuals

24 describing the time periods by which enrollment in

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

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

3 of this Act. In addition, the substate grantee shall

4 make arrangements with the State agency charged

5 with the administration of the State unemployment

6 compensation law to make such information gen7 erally available to claimants along with other infor8 mation describing the services available under this

9 title.

10 (f) SUPPORTIVE SERVICES.—

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

12 make available to an eligible individual, either

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

16 such individual’s reemployment plan as necessary to

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

19 services.

20 (2) OPTIONAL SERVICES.—Each career center

21 may make available to an eligible individual such

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

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

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

5 needs-related payments, drug and alcohol abuse

6 counseling and referral, family counseling, and other

7 similar services.

8 (g) SUPPLEMENTAL WAGE ALLOWANCE FOR OLDER

9 WORKERS.—

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

11 receive a supplemental wage allowance in the

12 amount specified in paragraph (2) if—

13 (A) such individual is age fifty-five or

14 older,

15 (B) such individual accepts full-time em16 ployment at a weekly wage that is less than

17 such individual’s preceding wage,

18 (C) such individual received basic reem19 ployment services provided under subsection (a)

20 and was unable to obtain employment with a

21 higher wage than the employment obtained pur22 suant to subparagraph (B), and

23 (D) such individual and a career center

24 counselor agree that participation in the supple-
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1 mental wage allowance is the most effective ad2 justment option available to such individual.

3 (2) AMOUNT OF ALLOWANCE.—The supple4 mental wage allowance payable to an eligible individ5 ual under this section with respect to any week in

6 which services are performed in such a reemploy7 ment job shall be an amount that—

8 (A) is equal to three-quarters of the dif9 ference between—

10 (i) the weekly wage received for such

11 week; and

12 (ii) an amount equal to 80 percent of

13 the individual’s average weekly wage in the

14 preceding employment; but

15 (B) does not exceed 50 percent of the

16 weekly benefit amount of regular compensation

17 under the State unemployment compensation

18 law payable to such individual for a week of

19 total unemployment.

20 (3) DURATION OF ALLOWANCES.—An eligible

21 individual may receive the supplemental wage allow22 ance authorized under this section for a period of up

23 to fifty-two weeks.

24 (4) ADMINISTRATION.—The substate grantee

25 shall enter into an agreement with the State agency
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1 charged with the administration of the State unem2 ployment compensation law under which such agency

3 will administer, on cost-reimbursable basis, the sup4 plemental wage allowances authorized under this

5 subsection.

6 SEC. 120. CERTIFICATES OF CONTINUING ELIGIBILITY.

7 (a) IN GENERAL.—A career center may issue a cer8 tificate of continuing eligibility for services under this title

9 if such career center determines that—

10 (1) such individual is eligible for services under

11 section 103; and

12 (2) such individual is accepting employment

13 and such employment is—

14 (A) at a wage significantly less than such

15 individual’s previous wage; or

16 (B) in an occupation significantly different

17 from such individual’s previous occupation.

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

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

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

21 such individual shall remain eligible, not withstanding the

22 requirements of section 103, for services under this title

23 and for retraining income support payments under section

24 119(e) and part A of title II of this Act.
72

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1 (c) ELIGIBILITY FOR RETRAINING INCOME SUP2 PORT.—With respect to the continuing eligibility of an in3 dividual receiving a certificate under this section for re4 training income support—

5 (1) the requirements relating to eligibility for

6 unemployment compensation under sections

7 119(e)(2)(C) and 202(a)(3) and to the weekly

8 amount of such support under section 119(e)(4) and

9 part A of title II shall apply to such individual’s sta10 tus at the time such individual receives a certificate

11 under this section and shall not apply to such indi12 vidual’s status at the time of separation from subse13 quent employment described in subsection (a)(2);

14 and

15 (2) the requirements relating to enrollment in

16 training in order to qualify for such income support

17 shall remain applicable except that the sixteen-week

18 and fourteen-week periods described in section

19 119(e)(2) and section 202(a)(4) shall commence

20 with such individual’s separation from the subse21 quent employment described in subsection (a)(2).

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

23 wage supplement authorized under section 119(g) after re24 ceiving a certificate of continuing eligibility under this sec25 tion.
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1 PART B—FEDERAL SERVICE DELIVERY SYSTEM

2 SEC. 131. NATIONAL DISCRETIONARY GRANT PROGRAM.

3 (a) ESTABLISHMENT.—The Secretary shall establish

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

6 closures, or mass layoffs.

7 (b) PROJECTS AND SERVICES.—

8 (1) IN GENERAL.—The programs assisted

9 under this section shall be used to provide services

10 of the type described in section 119 in projects that

11 relate to—

12 (A) industrywide dislocations;

13 (B) multistate dislocations;

14 (C) dislocations resulting from reductions

15 in defense expenditures;

16 (D) dislocations resulting from inter17 national trade;

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

20 Clean Air Act and the Endangered Species Act;

21 (F) dislocations affecting Native American

22 tribal entities; and

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

2 may award grants under this section for projects

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

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

8 projects that establish on-site transition centers

9 meeting the requirements described in section

10 115(c)(2)

11 (c) ADMINISTRATION.—

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

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

16 Secretary determines is appropriate.

17 (2) ELIGIBLE ENTITIES.—Grants under this

18 section may be awarded to—

19 (A) the State;

20 (B) the substate grantee;

21 (C) employers and employer associations;

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

24 entities;

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

2 and community-based organizations; and

3 (G) industry consortia.

4 SEC. 132. DISASTER RELIEF EMPLOYMENT ASSISTANCE.

5 (a) GENERAL AUTHORITY.—

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

8 available in a timely manner by the Secretary to the

9 Governor of any State within which is located an

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

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

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

16 percent of the funds made available to any Governor

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

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

20 remainder of such funds may be reserved by the

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

22 cleanup, rescue, repair, renovation, and rebuilding

23 activities associated with such major disaster.

24 (3) COORDINATION.—Funds made available

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

2 with—

3 (A) agencies administering programs for

4 disaster relief provided under the Robert T.

5 Stafford Disaster Relief and Emergency Assist6 ance Act; and

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

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

11 (b) USE OF FUNDS.—

12 (1) PROJECTS RESTRICTED TO DISASTER

13 AREAS.—Funds made available under this section to

14 any unit of general local government in a disaster

15 area—

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

18 shelter, and other humanitarian assistance for

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

22 facilities, and lands located within the disaster

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

2 private agencies and organizations engaged in

3 such projects.

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

6 to be offered disaster employment under this section

7 if such individual is temporarily or permanently laid

8 off as a consequence of the disaster.

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

11 this part for more than six months for work related

12 to recovery from a single natural disaster.

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

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

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

16 project in an Indian reservation or Alaska Native

17 village, the grantee designated under subsection (c)

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

20 the State; and

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

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

24 the Job Training Partnership Act, or a consortium

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

3 (a) EVALUATION.—

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

5 for the continuing evaluation of programs conducted

6 under this title, including the cost-effectiveness of

7 programs in achieving the purposes of this title.

8 (2) TECHNIQUES.—

9 (A) METHODS.—Evaluations conducted

10 under paragraph (1) shall utilize recognized

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

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

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

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

21 delivery systems used by the various programs.

22 (C) EFFECTIVENESS.—The Secretary shall

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

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

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

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

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

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

12 in the absence of such programs.

13 (b) RESEARCH.—

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

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

19 (2) MASS LAYOFF REPORT.—The Secretary

20 shall develop and maintain statistical data relating

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

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

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

2 (C) the location of the affected facilities;

3 and

4 (D) the types of industries involved.

5 (c) DEMONSTRATIONS.—

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

7 a program of demonstration projects to develop and

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

10 program may include projects that—

11 (A) provide services to upgrade the skills

12 of employed workers who are at risk of being

13 permanently laid off; and

14 (B) assist in retraining employed workers

15 in new technologies and work processes that

16 will facilitate the conversion or restructuring of

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

19 layoffs.

20 (2) LIMITATION.—Each demonstration project

21 conducted under this subsection shall not exceed

22 three years in duration.

23 (3) EVALUATION COMPONENT.—The Secretary

24 shall conduct or provide for an evaluation of each of

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

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

4 through grants, contracts, or other arrangements, staff

5 training and technical assistance to States, substate

6 grantees, career centers, communities, business and labor

7 organizations, service providers, industry consortia, and

8 other entities, to enhance their capacity to develop and

9 deliver effective adjustment assistance services to workers

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

13 dissemination of computer-accessed learning systems.

14 (b) COORDINATION.—The Secretary shall integrate

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

16 the activities of the Capacity Building and Information

17 and Dissemination Network established under section 453

18 of the Job Training Partnership Act.

19 SEC. 135. FEDERAL BY-PASS AUTHORITY.

20 In the event that any State chooses not to participate

21 in the program authorized under this title, the Secretary

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

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

24 State of the programs, activities and services authorized

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

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

2 QUALITY ASSURANCE SYSTEMS

3 SEC. 151. CUSTOMER SERVICE COMPACT.

4 The Secretary shall establish a process within each

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

6 the development of a customer service compact among the

7 parties administering the programs under this title. Such

8 compact shall include an informal agreement between the

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

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

12 the administration of the program;

13 (2) the respective roles and responsibilities of

14 each party in enhancing the provision of services to

15 participants, including ensuring that such services

16 are tailored to the particular needs of participants in

17 each local area;

18 (3) methods for ensuring that the satisfaction

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

22 (4) such other matters as the parties determine

23 are appropriate.

24 SEC. 152. PERFORMANCE STANDARDS.

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

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

2 standards relating separately to the substate grantees and

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

5 are appropriate, which may include—

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

8 (A) earnings at six months or more after

9 termination from the program, and

10 (B) comparability of wages at a specified

11 period after termination from the program with

12 wages prior to participation in the program;

13 (2) acquisition of skills pursuant to a skill

14 standards and skill certification system endorsed by

15 the National Skill Standards Board established

16 under the Goals 2000: Educate America Act;

17 (3) satisfaction of participants and employers

18 with services provided and employment outcomes;

19 and

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

22 and older workers.

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

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

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

6 within the State; and

7 (2) the characteristics of the population to be

8 served, including the demonstrated difficulties in

9 serving special populations.

10 (c) FAILURE TO MEET STANDARDS.—

11 (1) UNIFORM CRITERIA.—The Secretary shall

12 establish uniform criteria for determining whether a

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

15 may not be modified more than once every two

16 years.

17 (2) TECHNICAL ASSISTANCE.—The Governor

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

20 standards under the uniform criteria established

21 under paragraph (1).

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

2 planned and provided as required under paragraph

3 (2).

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

5 career center continues to frail to meet such per6 formance standards for two consecutive program

7 years, the Governor shall notify the Secretary and

8 the substate grantee or career center of the contin9 ued failure, and shall—

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

13 with the procedures described in section

14 117(b)(2); and

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

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

19 with the requirements of section 118.

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

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

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

5 shall award incentive grants to the substate grantees and

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

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

10 SEC. 153. CUSTOMER FEEDBACK.

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

13 from eligible individuals and employers who have received

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

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

17 and focus groups.

18 (b) ANALYSIS AND DISSEMINATION.—Each substate

19 grantee shall analyze the information obtained pursuant

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

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

2 OF EDUCATION AND TRAINING SERVICES.

3 (a) ELIGIBILITY REQUIREMENTS.—A provider of

4 education and training services shall be eligible to receive

5 funds under this title if such provider—

6 (1) is either—

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

8 Higher Education Act of 1965, or

9 (B) determined to be eligible under the

10 procedures described in subsection (b); and

11 (2) provides the performance-based information

12 required pursuant to subsection (c).

13 (b) ALERNATIVE ELIGIBILITY PROCEDURE.—(1) The

14 Governor shall establish an alternative eligibility proce15 dure for providers of education and training services in

16 such State desiring to receive funds under this title but

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

18 Education Act of 1965. Such procedure shall establish

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

22 Such factors shall be comparable in rigor and scope to

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

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

25 eligibility to participate in programs under such title as

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

2 training services to be provided.

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

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

6 institution shall not be eligible to receive funds under this

7 Act for a period of two years.

8 (c) PERFORMANCE-BASED INFORMATION.—

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

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

12 by providers of services desiring to be eligible under

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

15 (A) the percentage of students completing

16 the programs conducted by the provider,

17 (B) the rates of licensure of graduates of

18 the programs conducted by the provider,

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

21 requirements endorsed by the National Skills

22 Standards Board established under the Goals

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

2 employment, and earnings of the graduates of

3 the programs conducted by the provider,

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

6 the program conducted by the provider, and

7 (F) the warranties or guarantees provided

8 by such provider relating to the skill levels or

9 employment to be attained by students.

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

11 to the approval of the Secretary, prescribe additional

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

14 (d) ADMINISTRATION.—

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

18 pursuant to paragraph (1).

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

20 training services that desires to be eligible to receive

21 funds under this title shall submit the information

22 required under subsection (b) to the State agency

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

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

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

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

7 (4) ACCURACY OF INFORMATION.—

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

10 is inaccurate, such provider shall be disqualified

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

13 demonstrate to the satisfaction of the Governor

14 or his or her designee, that the information was

15 provided in good faith.

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

18 a determination by a State agency that results

19 in a disqualification under subparagraph (A).

20 Such procedure shall provide an opportunity for

21 a hearing and prescribe appropriate time limits

22 to ensure prompt resolution of the appeal.

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

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

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

4 State administrative records, such as unemployment

5 compensation wage records, and other appropriate

6 coordination activities.

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

9 eligibility of institutions of higher education or other

10 providers of education and training to participate in

11 programs under this Act or under title IV of the

12 Higher Education Act of 1965.

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

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

15 training shall not be subject to the requirements of

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

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

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

20 training providers as the Secretary may require, and

21 shall disseminate such information to the career cen22 ters.
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1 PART D—GENERAL REQUIREMENTS

2 SEC. 161. GENERAL REQUIREMENTS.

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

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

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

8 used or proposed for use to encourage or induce the

9 relocation, of an establishment or part thereof, that

10 results in a loss of employment for any employee of

11 such establishment at the original location.

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

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

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

16 thereof, that has relocated, until 120 days after the

17 date on which such establishment commences oper18 ations at the new location, if the relocation of such

19 establishment or part thereof, results in a loss of

20 employment for any employee of such establishment

21 at the original location.

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

24 determine whether a violation has occurred.

25 (4) If the Secretary determines that a violation

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

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

3 (A) repay to the United States an amount

4 equal to the amount expended in violation of

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

7 (B) pay an additional amount equal to the

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

10 demonstrates to the Secretary that it neither

11 knew nor reasonably could have known (after

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

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

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

17 title.

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

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

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

23 (c) JOINT SUBSTATE AGREEMENTS.—Any substate

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

3 supportive services.

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

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

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

9 be in compensation for the extraordinary costs associated

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

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

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

15 in excess of that generally required for acquisition of skills

16 needed for the position within a particular occupation, but

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

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

24 the reemployment plan of the participant.

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

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

5 (ii) comply with the applicable requirements of

6 section 174.

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

9 (but instead is contracted through an intermediary

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

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

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

20 with a subcontractor to provide training or other services,

21 the brokering contractor shall ensure, through on-site

22 monitoring, compliance with the subcontract terms prior

23 to making payment to the subcontractor.

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

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

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

7 the same extent as other employees working a similar

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

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

11 referral of such individual in or to a training program

12 under this title.

13 (f) PROHIBITION ON SUBSIDIZED EMPLOYMENT.—

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

16 (g) RETENTION OF PROGRAM INCOME.—

17 (1) Income under any program under this title

18 administered by a public or private nonprofit entity

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

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

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

2 under the title that are in excess of the costs

3 associated with the services provided; and

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

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

7 entity receiving financial assistance under this title

8 shall maintain records sufficient to determine the

9 amount of income received and the purposes for

10 which such income is expended.

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

13 appropriate chief elected officials of, and consult with the

14 Governor and such officials concerning, any activity to be

15 funded by the Secretary under this title within the State

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

19 this title within the substate area.

20 (i) COOPERATIVE AGREEMENTS BETWEEN

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

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

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

2 the Secretary.

3 (j) PUBLIC SERVICE EMPLOYMENT PROHIBITION.—

4 Except as provided in section 132, no funds available

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

6 (k) PROHIBITION ON EMPLOYMENT GENERATING

7 AND RELATED ACTIVITIES.—Except for funds available to

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

9 under this Act shall be used for employment generating

10 activities, economic development activities, investment in

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

14 (l) PROPERTY.—The Federal requirements governing

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

16 and supplies purchased with funds provided under this Act

17 shall be the Federal requirements generally applicable to

18 Federal grants to States and local governments.

19 SEC. 162. BENEFITS.

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

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

23 (1) A participant under this title shall receive

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

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

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

6 specified in section 6(a)(1) of the Fair Labor Stand7 ard Act of 1938 or the applicable State or local min8 imum wage law.

9 (3) Individuals employed in activities authorized

10 under this title shall be paid wages which shall not

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

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

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

15 prevailing rates of pay for individuals employed in

16 similar occupations by the same employer.

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

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

19 1938 (29 U.S.C. 206(a)(1))—

20 (A) shall be deemed to be references to

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

22 Commonwealth of Puerto Rico;

23 (B) shall be deemed to be references to

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

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

2 in other territorial jurisdictions in which section

3 6 of the Fair Labor Standards Act of 1938

4 does not apply.

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

6 payments to individuals participating in programs under

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

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

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

12 under the Social Security Act.

13 SEC. 163. LABOR STANDARDS.

14 (a) IN GENERAL.—

15 (1) Conditions of employment and training shall

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

18 proficiency of the participant.

19 (2) Health and safety standards established

20 under State and Federal law, otherwise applicable to

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

23 respect to any participant in a program conducted

24 under this title who is engaged in activities which

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

2 1970, the Secretary shall prescribe, by regulation,

3 such standards as may be necessary to protect the

4 health and safety of such participants.

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

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

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

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

13 the Secretary.

14 (4) All individuals employed in subsidized jobs

15 shall be provided benefits and working conditions at

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

18 the same type of work.

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

20 used for contributions on behalf of any participant

21 to retirement systems or plans.

22 (b) DISPLACEMENT.—

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

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

4 (A) existing contracts for services; or

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

8 elements of the proposed activities which affect

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

12 (3) No participant shall be employed or job

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

14 layoff from the same or any substantially equivalent

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

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

18 vacancy so created by hiring a participant whose

19 wages are subsidized under this title.

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

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

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

2 provide to the Secretary assurances that none of

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

4 union organizing.

5 (2) Any program conducted with funds made

6 available under this title which will provide services

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

10 (3) Where a labor organization represents a

11 substantial number of employees who are engaged in

12 similar work or training in the same area as that

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

15 submit comments with respect to such proposal.

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

19 decorating, of projects, buildings, and works which are

20 federally assisted under this title shall be paid wages at

21 rates not less than those prevailing on similar construction

22 in the locality as determined by the Secretary in accord23 ance with the Act of March 3, 1921 (40 U.S.C. 276a—

24 276a–5), commonly known as the Davis-Bacon Act. The

25 Secretary shall have, with respect to such labor standards,
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1 the authority and functions set forth in Reorganization

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

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

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

8 SEC. 164. GRIEVANCE PROCEDURE.

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

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

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

14 persons. Hearings on any grievance shall be conducted

15 within thirty days of filing of a grievance and decisions

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

17 of a grievance. Except for complaints alleging fraud or

18 criminal activity, complaints shall be made within one year

19 of the alleged occurrence.

20 (b) GRIEVANCE PROCEDURE FOR EMPLOYERS OF

21 PARTICIPANTS.—Each recipient of financial assistance

22 under this title which is an employer of participants under

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

2 Upon exhaustion of the recipient’s grievance procedure

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

6 allegation or belief and determine within one hundred and

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

9 (d) INVESTIGATION BY SECRETARY.—

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

11 and such person exhausts the recipient’s grievance

12 procedure or the sixty-day time period described in

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

14 party to such procedure may submit the grievance to

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

18 has occurred.

19 (2) If the results of the investigation conducted

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

22 the recipient’s grievance procedure is warranted, or

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

24 has elapsed without a decision, the Secretary may

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

2 after an opportunity for a hearing in accordance

3 with the procedures under section 176.

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

8 (e) BINDING GRIEVANCE PROCEDURE.—

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

10 may, as an alternative to the procedures described in

11 this section, submit the grievance involving such vio12 lation to a binding grievance procedure if a collec13 tive-bargaining agreement covering the parties to the

14 grievance so provides.

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

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

18 (f) REMEDIES AVAILABLE TO GRIEVANTS.—

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

21 violations of section 163 shall be limited to—

22 (A) suspension or termination of payments

23 under this Act;

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

2 has violated section 163, as determined under

3 subsection (d) or (e); and

4 (C) appropriate equitable relief (other than

5 back pay).

6 (2) In addition to the remedies available under

7 paragraph (1), remedies available under this section

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

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

11 (A) reinstatement of the grievant to the

12 position held by such grievant prior to displace13 ment;

14 (B) payment of lost wages and benefits;

15 and

16 (C) reestablishment of other relevant

17 terms, conditions, and privileges of employment.

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

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

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

22 PART E—FISCAL ADMINISTRATIVE PROVISIONS

23 SEC. 171. PROGRAM YEAR.

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

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

2 available for obligation only on the basis of a program

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

4 year for which the appropriation is made.

5 (b) EXPENDITURE OF OBLIGATED FUNDS.—Funds

6 obligated for any program year may be expended by each

7 recipient during that program year and the two succeeding

8 program years.

9 SEC. 172. PROMPT ALLOCATION OF FUNDS.

10 (a) PUBLICATION OF FORMULA ALLOCATIONS AND

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

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

14 fashion in the Federal Register the proposed amount to

15 be distributed to each recipient.

16 (b) PUBLICATION OF DISCRETIONARY ALLOCATION

17 FORMULA.—Whenever the Secretary utilizes a formula to

18 allot or allocate funds made available for distribution at

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

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

21 or allocation, publish such formula in the Federal Register

22 for comments along with the rationale for the formula and

23 the proposed amounts to be distributed to each State and

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

2 the Federal Register.

3 SEC. 173. MONITORING.

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

5 monitor all recipients of financial assistance under this

6 title to determine whether they are complying with the

7 provisions of this title and the regulations issued under

8 this title.

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

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

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

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

17 the records of the recipient are kept.

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

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

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

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

23 made applicable to the Secretary.

24 SEC. 174. FISCAL CONTROLS; SANCTIONS.

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

5 under this title. Such procedures shall ensure that

6 all financial transactions are conducted and records

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

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

11 equivalent to such principles generally applicable to

12 recipients of Federal grants funds. At a minimum,

13 such standards shall provide that, to be allowable,

14 costs must—

15 (A) be necessary and reasonable for proper

16 and efficient administration of the program

17 under this title;

18 (B) be allocable to the program under this

19 title; and

20 (C) not be a general expense required to

21 carry out the overall responsibilities of State or

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

24 (3) The Governor, in accordance with minimum

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

2 standards to ensure fiscal accountability and prevent

3 fraud and abuse in programs administered under

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

6 General of the Department of Labor and take into

7 consideration relevant aspects of the circulars issued

8 by the Director of the Office of Management and

9 Budget. Such minimum requirements shall include

10 provisions to ensure that for States, substate areas,

11 and career centers—

12 (A) procurements shall be conducted in a

13 manner providing full and open competition;

14 (B) the use of sole source procurements

15 shall be minimized to the extent practicable, but

16 in every case shall be justified;

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

19 and prices;

20 (D) procurements shall not provide excess

21 program income (for nonprofit and government

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

23 entities), and that appropriate factors shall be

24 utilized in determining whether such income or

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

2 performed;

3 (ii) the risk borne by the contractor;

4 and

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

7 (E) procurements shall clearly specify

8 deliverables and the basis for payment;

9 (F) written procedures shall be established

10 for procurement transactions;

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

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

14 award, or administration of a contract or grant

15 under this title;

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

19 (I) procurement transactions between units

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

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

23 monitoring of each substate grantee within the State

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

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

4 (3), the Governor shall—

5 (A) require corrective action to secure

6 prompt compliance; and

7 (B) impose the sanctions provided under

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

9 required corrective action.

10 (6) The Governor shall biennially certify to the

11 Secretary that—

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

15 (B) the State has monitored substate

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

18 (4); and

19 (C) the State has taken appropriate action

20 to secure compliance pursuant to paragraph

21 (5).

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

2 prompt compliance; and

3 (B) impose the sanctions provided under

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

6 (b) SUBSTANTIAL VIOLATIONS.—

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

8 audits or otherwise, the Governor determines that

9 there is a substantial violation of a specific provision

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

11 corrective action has not been taken, the Governor

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

14 (A) redesignating the substate grantee;

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

17 (C) merging the substate area into 1 or

18 more other existing substate areas; or

19 (D) other such changes as the Secretary or

20 Governor determines necessary to secure com21 pliance.

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

24 Secretary and shall not become effective until—

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

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

4 Secretary, who shall make a final decision not later

5 than sixty days of the receipt of the appeal.

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

7 actions required under paragraph (1), the Secretary

8 shall take such actions.

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

10 repay to the United States amounts found not to have

11 been expended in accordance with this title. The Secretary

12 may offset such amounts against any other amount to

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

14 unless the Secretary determines that such recipient should

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

16 shall be taken except after notice and opportunity for a

17 hearing have been given to the recipient.

18 (d) LIABILITY FOR REPAYMENT OF FUNDS.—

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

20 amounts, from funds other than funds received

21 under this title, upon a determination that the

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

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

5 violations by a subgrantee of such recipient under

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

8 has adequately demonstrated that it has—

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

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

13 (B) entered into a written contract with

14 such subgrantee which established clear goals

15 and obligations in unambiguous terms;

16 (C) acted with due diligence to monitor the

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

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

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

3 the requirements of paragraph (2), the Secretary

4 may waive the imposition of sanctions authorized by

5 this section upon such recipient. The Secretary is

6 authorized to impose any sanction consistent with

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

9 violation of this Act or the regulations under this

10 Act.

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

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

15 Secretary may immediately terminate or suspend financial

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

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

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

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

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

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

4 instituted or caused to be instituted any proceeding under

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

6 in any such proceeding or investigation under or related

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

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

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

12 individual, or both.

13 (g) REMEDIES NOT EXCLUSIVE.—The remedies

14 under this section shall not be construed to be exclusive

15 remedies.

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

18 (a) RECORDS.—

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

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

22 a level of expenditure adequate to insure that the

23 funds have not been spent unlawfully.

24 (2) Every recipient shall maintain such records

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

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

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

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

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

12 records to provide for an adequate analysis.

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

14 records maintained by recipients pursuant to this

15 subsection shall be made available to the public upon

16 request.

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

18 (i) information, the disclosure of which

19 would constitute a clearly unwarranted invasion

20 of personal privacy; and

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

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

3 for records under subparagraph (A).

4 (b) INVESTIGATIONS.—

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

6 provisions of this title, the Secretary shall conduct,

7 in several States, in each fiscal year investigations of

8 the use of funds received by recipients under this

9 title.

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

12 United States may conduct investigations of the use

13 of funds received under this title by any recipient.

14 (2) In conducting any investigation under this

15 title, the Secretary or the Comptroller General of the

16 United States may not request the compilation of

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

19 (3)(A) In carrying out any audit under this title

20 (other than any initial audit survey or any audit in21 vestigating possible criminal or fraudulent conduct),

22 either directly or through grant or contract, the Sec23 retary, the Inspector General, or the Comptroller

24 General shall furnish to the State, substate grantee,

25 recipient, or other entity to be audited, advance noti-
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1 fication of the overall objectives and purposes of the

2 audit, and any extensive recordkeeping or data re3 quirements to be met, not fewer than fourteen days

4 (or as soon as practicable), prior to the commence5 ment of the audit.

6 (B) If the scope, objectives, or purposes of the

7 audit change substantially during the course of the

8 audit, the entity being audited shall be notified of

9 the change as soon as practicable.

10 (C) The reports on the results of such audits

11 shall cite the law, regulation, policy, or other criteria

12 applicable to any finding.

13 (D) Nothing contained in this title shall be con14 strued so as to be inconsistent with the Inspector

15 General Act of 1978 (5 U.S.C. App.) or government

16 auditing standards issued by the Comptroller Gen17 eral.

18 (c) RESPONSIBILITIES OF FUND RECIPIENTS.—Each

19 State, each substate grantee, each career center, and each

20 recipient (other than a subrecipient, grantee or contractor

21 of a recipient) receiving funds under this title shall—

22 (1) make readily accessible reports concerning

23 its operations and expenditures as shall be pre24 scribed by the Secretary;
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1 (2) prescribe and maintain comparable manage2 ment information systems, in accordance with guide3 lines that shall be prescribed by the Secretary, de4 signed to facilitate the uniform compilation, cross

5 tabulation, and analysis of programmatic, partici6 pant, and financial data, on statewide and substate

7 area bases, necessary for reporting, monitoring, and

8 evaluating purposes, including data necessary to

9 comply with section 177; and

10 (3) monitor the performance of service provid11 ers in complying with the terms of grants, contracts,

12 or other agreements made pursuant to this Act.

13 (d) RETENTION OF RECORDS.—The Governor shall

14 ensure that requirements are established for retention of

15 all records pertinent to all grants awarded, and contracts

16 and agreements entered into, under this title, including

17 financial, statistical, property and participant records and

18 supporting documentation. For funds allotted to a State

19 for any program year, records shall be retained for two

20 years following the date on which the annual expenditure

21 report containing the final expenditures charged to such

22 program year’s allotment is submitted to the Secretary.

23 Records for nonexpendable property shall be retained for

24 a period of three years after final disposition of the prop25 erty.
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1 (e) FINANCIAL RECORDS.—Each State, substate

2 grantee, and career center shall maintain records with re3 spect to programs under this title that identify—

4 (1) any program income or profits earned, in5 cluding such income or profits earned by

6 subrecipients; and

7 (2) any costs incurred (such as stand-in costs)

8 that are otherwise allowable except for funding limi9 tations.

10 SEC. 176. ADMINISTRATIVE ADJUDICATION.

11 (a) IN GENERAL.—Whenever any applicant for finan12 cial assistance under this title is dissatisfied because the

13 Secretary has made a determination not to award financial

14 assistance in whole or in part to such applicant, the appli15 cant may request a hearing before an administrative law

16 judge of the Department of Labor. A similar hearing may

17 also be requested by any recipient upon whom a corrective

18 action or a sanction has been imposed by the Secretary.

19 Except to the extent provided for in section 161(b), sub20 sections (d) and (e) of section 164, or section 177, all

21 other disputes arising under this title shall be adjudicated

22 under grievance procedures established by the recipient or

23 under applicable law other than this title.

24 (b) FINAL DECISIONS.—The decision of the adminis25 trative law judge shall constitute final action by the Sec-
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1 retary unless, within twenty days after receipt of the deci2 sion of the administrative law judge, a party dissatisfied

3 with the decision or any part thereof has filed exceptions

4 with the Secretary specifically identifying the procedure,

5 fact, law, or policy to which exception is taken. Any excep6 tion not specifically urged shall be deemed to have been

7 waived. Thereafter the decision of the administrative law

8 judge shall become the final decision of the Secretary un9 less the Secretary, within thirty days of such filing, has

10 notified the parties that the case has been accepted for

11 review.

12 (c) DEADLINE FOR REVIEW.—Any case accepted for

13 review by the Secretary shall be decided within one hun14 dred and eighty days of such acceptance. If not so decided,

15 the decision of the administrative law judge shall become

16 the final decision of the Secretary.

17 (d) APPLICABLE PROVISIONS.—The provisions of sec18 tion 178 shall apply to any final action of the Secretary

19 under this section.

20 SEC. 177. NONDISCRIMINATION.

21 (a) IN GENERAL.—

22 (1) For the purpose of applying the prohibitions

23 against discrimination on the basis of age under the

24 Age Discrimination Act of 1975, on the basis of dis25 ability under section 504 of the Rehabilitation Act,
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1 on the basis of sex under title IX of the Education

2 Amendments of 1972, or on the basis of race, color,

3 or national origin under title VI of the Civil Rights

4 Act of 1964, programs and activities funded or oth5 erwise financially assisted in whole or in part under

6 this title are considered to be programs and activi7 ties receiving Federal financial assistance.

8 (2) No individual shall be excluded from partici9 pation in, denied the benefits of, subjected to dis10 crimination under, or denied employment in the ad11 ministration of or in connection with any such pro12 gram because of race, color, religion, sex, national

13 origin, age, political affiliation or belief, or status as

14 a qualified individual with disabilities.

15 (3) Participants shall not be employed on the

16 construction, operation, or maintenance of so much

17 of any facility as is used or to be used for sectarian

18 instruction or as a place for religious worship.

19 (4) With respect to terms and conditions affect20 ing, or rights provided to, individuals who are par21 ticipants in activities supported by funds provided

22 under this title, such individuals shall not be dis23 criminated against solely because of their status as

24 such participants.
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1 (5) Participation in programs and activities fi2 nancially assisted in whole or in part under this title

3 shall be open to citizens and nationals of the United

4 States, lawfully admitted permanent resident aliens,

5 lawfully admitted refugees and parolees, and other

6 individuals authorized by the Attorney General to

7 work in the United States.

8 (b) FAILURE TO COMPLY.—Whenever the Secretary

9 finds that a State or other recipient has failed to comply

10 with a provision of law referred to in subsection (a)(1),

11 with paragraph (2), (3), (4), or (5) of subsection (a), or

12 with an applicable regulation prescribed to carry out such

13 paragraphs, the Secretary shall notify such State or recipi14 ent and shall request it to comply. If within a reasonable

15 period of time, not to exceed sixty days, the State or recip16 ient fails or refuses to comply, the Secretary may—

17 (1) refer the matter to the Attorney General

18 with a recommendation that an appropriate civil ac19 tion be instituted;

20 (2) exercise the powers and functions provided

21 by title VI of the Civil Rights Act of 1964, the Age

22 Discrimination Act of 1975, or section 504 of the

23 Rehabilitation Act, as may be applicable; or

24 (3) take such other action as may be provided

25 by law.
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1 (c) REFERRAL TO ATTORNEY GENERAL.—When a

2 matter is referred to the Attorney General pursuant to

3 subsection (b)(1), or whenever the Attorney General has

4 reason to believe that a State or other recipient is engaged

5 in a pattern or practice in violation of a provision of law

6 referred to in subsection (a)(1) or in violation of para7 graph (2), (3), (4), or (5) of subsection (a), the Attorney

8 General may bring a civil action in any appropriate district

9 court of the United States for such relief as may be appro10 priate, including injunctive relief.

11 SEC. 178. JUDICIAL REVIEW.

12 (a) IN GENERAL.—

13 (1) With respect to any final order by the Sec14 retary under section 176 whereby the Secretary de15 termines to award, to not award, or to only condi16 tionally award, financial assistance, with respect to

17 any final order of the Secretary under section 176,

18 with respect to a corrective action or sanction im19 posed under section 174, any party to a proceeding

20 which resulted in such final order may obtain review

21 of such final order in the United States Court of Ap22 peals having jurisdiction over the applicant or recipi23 ent of funds, by filing a review petition within thirty

24 days of such final order.
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1 (2) The clerk of the court shall transmit a copy

2 of the review petition to the Secretary, who shall file

3 the record upon which the final order was entered as

4 provided in section 2112 of title 28, United States

5 Code. Review petitions, unless ordered by the court,

6 shall not stay the Secretary’s order. Petitions under

7 this title shall be heard expeditiously, if possible

8 within ten days of the filing of a reply brief.

9 (3) No objection to the order of the Secretary

10 shall be considered by the court unless the objection

11 shall have been specifically and timely urged before

12 the Secretary. Review shall be limited to questions

13 of law and the Secretary’s findings of fact shall be

14 conclusive if supported by substantial evidence.

15 (b) JURISDICTION OF THE COURT.—The court shall

16 have jurisdiction to make and enter a decree affirming,

17 modifying, or setting aside the order of the Secretary in

18 whole or in part. The court’s judgment shall be final, sub19 ject to certiorari review by the Supreme Court of the Unit20 ed States as provided in section 1254(1) of title 28, Unit21 ed States Code.

22 SEC. 179. ADMINISTRATIVE PROVISIONS.

23 (a) RULES AND REGULATIONS.—The Secretary may,

24 in accordance with chapter 5 of title 5, United States

25 Code, prescribe such rules and regulations (including per-
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1 formance standards) as the Secretary deems necessary.

2 Such rules and regulations may include adjustments au3 thorized by section 204 of the Intergovernmental Coopera4 tion Act of 1968. All such rules and regulations shall be

5 published in the Federal Register at least thirty days prior

6 to their effective date. Copies of all such rules and regula7 tions shall be transmitted to the appropriate committees

8 of the Congress at the same time and shall contain, with

9 respect to each material provision of such rules and regu10 lations, citations to the particular substantive section of

11 law which is the basis therefor.

12 (b) GIFTS.—The Secretary is authorized, in carrying

13 out this title, to accept, purchase, or lease in the name

14 of the department, and employ or dispose of in furtherance

15 of the purposes of this title, any money or property, real,

16 personal, or mixed, tangible or intangible, received by gift,

17 devise, bequest, or otherwise, and to accept voluntary and

18 uncompensated services notwithstanding the provisions of

19 section 1342 of title 31, United States Code.

20 (c) AUTHORITY TO EXPEND FUNDS.—The Secretary

21 may make such grants, contracts, or agreements, establish

22 such procedures and make such payments, in installments

23 and in advance or by way of reimbursement, or otherwise

24 allocate or expend funds under this title as necessary to

25 carry out this title, including (without regard to the provi-
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1 sions of section 4774(d) of title 10, United States Code)

2 expenditures for construction, repairs, and capital im3 provements, and including necessary adjustments in pay4 ments on account of overpayments of underpayments.

5 (d) USE OF SERVICES AND FACILITIES.—The Sec6 retary is authorized, in carrying out this title, under the

7 same conditions applicable under section 179(c) or to the

8 extent permitted by law other than this title, to accept

9 and use the services and facilities of departments, agen10 cies, and establishments of the United States. The Sec11 retary is also authorized to accept and use the services

12 and facilities of the agencies of any State or political sub13 division of a State, with its consent.

14 (e) POLITICAL ACTIVITIES.—The Secretary shall not

15 provide financial assistance for any program under this

16 title which involves political activities.

17 SEC. 180. OBLIGATIONAL AUTHORITY.

18 Notwithstanding any other provision of this title, no

19 authority to enter into contracts or financial assistance

20 agreements under this title shall be effective except to

21 such extent or in such amount as are provided in advance

22 in appropriation Acts.

23 SEC. 181. CRIMINAL PROVISIONS.

24 Section 665 of title 18, United States Code, is

25 amended by striking ‘‘or the Job Training Partnership
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1 Act’’ each place it appears and inserting ‘‘, the Job Train2 ing Partnership Act, or title I of the Reemployment Act

3 of 1994’’.

4 SEC. 182. REFERENCES.

5 Effective on the date of enactment of this title, all

6 references in any other statute other than this Act, and

7 other than in section 665 of title 18, United States Code,

8 to the Job Training Partnership Act shall be deemed to

9 also refer to title I of the Reemployment Act of 1994.

10 PART F—MISCELLANEOUS PROVISIONS

11 SEC. 191. EFFECTIVE DATE.

12 This title shall take effect on July 1, 1995.

13 SEC. 192. REPEALERS

14 (a) IN GENERAL.—The following programs shall ter15 minate on July 1, 1995:

16 (1) the program authorized pursuant to sec17 tions 301–324 of the Job Training Partnership Act,

18 commonly referred to as EDWAA;

19 (2) the program authorized under section 325

20 of such Act, commonly referred to as the Defense

21 Conversion Adjustment Program;

22 (3) the program authorized under section 325A

23 of such Act, commonly referred to as the Defense

24 Diversification Program; and
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1 (4) the program authorized under section 326

2 of such Act, commonly referred to as the Clean Air

3 Employment Transition Assistance Program.

4 (b) ADDITIONAL PROGRAM.—Part J of title IV and

5 section 462(e) of the Job Training Partnership Act shall

6 terminate on July 1, 1995.

7 SEC. 193. TRANSITION.

8 The Secretary may establish such rules and proce9 dures as may be necessary to provide for the orderly tran10 sition from the programs described in section 192(a) to

11 the program authorized under this title.

12 TITLE II—RETRAINING INCOME SUPPORT

13 AND FLEXIBILITY IN UNEMPLOYMENT

14 COMPENSATION

15 PART A—RETRAINING INCOME SUPPORT

16 PROGRAM

17 SEC. 201. ESTABLISHMENT.

18 There is hereby established a retraining income sup19 port program to assist permanently laid-off individuals

20 participating in long-term training programs.

21 SEC. 202. ELIGIBILITY REQUIREMENTS.

22 (a) TENURED WORKERS.—For a week beginning

23 after July 1, 1995, to the extent that funds are available

24 in the account established by section 911 of the Social Se25 curity Act, payment of retraining income support shall be
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1 made to an individual who files an application for such

2 support if the following conditions are met:

3 (1) Such individual has been permanently laid

4 off from such individual’s employer.

5 (2) Except as specified in subsections (b) and

6 (c), such individual had been continuously employed

7 at the time of the permanent layoff for a period of

8 three years or more by the employer from whom

9 such individual has been permanently laid off.

10 (3) Such individual—

11 (A) was entitled, as a result of the layoff

12 described in paragraph (1), to (or would have

13 been entitled to if such individual had applied

14 therefor) unemployment compensation under

15 any Federal or State law for a week within the

16 benefit period in which the layoff took place, or

17 which began (or would have begun) by reason

18 of the filing of a claim for unemployment com19 pensation by such individual after such layoff;

20 (B) has exhausted all rights to any unem21 ployment compensation to which such individual

22 was entitled (or would have been entitled if

23 such individual had applied therefor); and
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1 (C) does not have an unexpired waiting pe2 riod applicable to such individual for such un3 employment compensation.

4 (4) Such individual is participating, and making

5 satisfactory progress, in an education or training

6 program that is part of a reemployment plan devel7 oped for such individual by an agency certified by

8 the Secretary of Labor to develop reemployment

9 plans, and has been enrolled in such program by—

10 (A) the end of the sixteenth week after the

11 permanent layoff, or, if later, the end of the

12 fourteenth week after such individual is aware

13 that the layoff is permanent,

14 (B) a period determined by the Secretary

15 that is not in excess of thirty days after the pe16 riods described in subparagraph (A), in cases

17 where under guidelines issued by the Secretary

18 it is determined that there are extenuating cir19 cumstances that justify such extension, such as

20 a cancellation of a course, a first available en21 rollment date that is after the periods described

22 in subparagraph (A), or the commencement of

23 negotiations for the reopening of the plant or

24 facility from which the individual has been laid

25 off, or
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1 (C) the end of the sixteenth week after

2 separation from the subsequent employment de3 scribed in section 120 of this Act in the case of

4 an individual who has been issued a certificate

5 of continuing eligibility under such section.

6 (b) TRADE-IMPACTED WORKERS.—To the extent that

7 funds are available in the account established by section

8 911 of the Social Security Act, payment of retraining in9 come support shall be made to a permanently laid-off indi10 vidual who has been determined to be an adversely af11 fected worker covered by a certification issued under part

12 D of this title and who files an application for such sup13 port for any week of unemployment which begins more

14 than 60 days after the date on which the petition that

15 resulted in such certification was filed, if the following

16 conditions are met:

17 (1) Such individual’s layoff before his, or her, ap18 plication under this title occurred—

19 (A) on or after the impact date, as speci20 fied in the certification under which such indi21 vidual is covered,

22 (B) before the expiration of the two-year

23 period beginning on the date on which the de24 termination under section 242 of this Act was

25 made, and
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1 (C) before the termination date (if any) de2 termined pursuant to paragraph 242(b)(3)(D)

3 of this Act.

4 (2) Such worker had, in the fifty-two-week pe5 riod ending with the week in which such layoff oc6 curred, at least twenty-six weeks of employment at

7 wages of $30 or more a week in adversely affected

8 employment with a single firm or subdivision of a

9 firm, or, if data with respect to weeks of employ10 ment with a firm are not available, equivalent

11 amounts of employment computed under regulations

12 prescribed by the Secretary. A week that is consid13 ered to be a week of employment under subsection

14 (d) shall also be considered a week of employment

15 for purposes of this paragraph.

16 (3) Such individual meets the conditions de17 scribed in paragraphs (3) and (4) of subsection (a).

18 (c) ADDITIONAL ELIGIBILITY BEGINNING IN FISCAL

19 YEAR 2000.—For a week beginning after September 30,

20 1999, in addition to individuals meeting the requirements

21 of subsection (a), payment of retraining income support

22 shall, to the extent that funds are available in the account

23 established by section 911 of the Social Security Act, be

24 made to an individual who—
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1 (1)(A) has been continuously employed at the

2 time of the permanent layoff for a period of one year

3 or more, but less than three years, by the employer

4 from whom such individual has been permanently

5 laid off; or

6 (B) was continuously employed in the same oc7 cupation and industry by a single employer for a pe8 riod of one year or more and within the preceding

9 twelve-month period was—

10 (i) separated from such employer, and

11 (ii) employed in the same occupation and

12 industry by a subsequent employer from whom

13 such individual has been permanently laid off;

14 and

15 (2) meets the conditions described in para16 graphs (1), (3) and (4) of subsection (a).

17 (d) CONTINUOUS EMPLOYMENT.—(1) For purposes

18 of this part and subject to the limitations of paragraph

19 (2) of this subsection, continuous employment shall be

20 deemed to include any week in which an individual—

21 (A) was on employer-authorized leave for pur22 poses of vacation, sickness, injury or inactive duty or

23 active duty military service for training,
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1 (B) was on employer-authorized leave because

2 of circumstances described in subsection 102(a) of

3 the Family and Medical Leave Act of 1993,

4 (C) did not work because of a disability that is

5 compensable under a worker’s compensation law or

6 plan of a State or the United States,

7 (D) had his, or her, employment interrupted in

8 order to serve as a full-time representative of a labor

9 organization in such firm or subdivision,

10 (E) was on call-up for purposes of active duty

11 in a reserve status in the Armed Forces of the Unit12 ed States, provided such active duty is ‘‘Federal

13 service’’ as defined in 5 U.S.C. 8521(a)(1), or

14 (F) was on temporary layoff.

15 (2) LIMITATIONS.—For the purpose of paragraph (1)

16 of this subsection, no more than the following number of

17 weeks within a one-year period may be treated as weeks

18 of employment:

19 (A) Seven weeks in the case of weeks described

20 in subparagraph (a) or (D) of paragraph (1), or

21 both.

22 (B) Twelve weeks in the case of weeks de23 scribed in paragraph (B) of paragraph (1).

24 (C) Twenty-six weeks in the case of weeks de25 scribed in paragraphs (C) and (E) of paragraph (1).
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1 (e) SAME EMPLOYER.—

2 (1) IN GENERAL.—For purposes of this part,

3 employment deemed to be employment for a single

4 employer shall include—

5 (A) all employment on jobs that were cov6 ered by a multiemployer plan defined by section

7 4001(a)(3) of the Employee Retirement Income

8 Security Act of 1974;

9 (B) all employment that was obtained

10 through a single hiring hall,

11 (C) all employment for the employer from

12 whom the individual was laid off or the prede13 cessor of such employer, and

14 (D) all employment for employers in a

15 joint employment relationship, as described in

16 section 791.2(b) of title 29 of the Code of Fed17 eral Regulations, with the individual.

18 (2) DEFINITION OF PREDECESSOR.—For pur19 poses of paragraph (1)(C), an employer shall be con20 sidered a predecessor of the employer from whom

21 the individual was laid off (hereinafter referred to as

22 successor employer) if—

23 (A) the successor employer acquired sub24 stantially all the property used in a trade or
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1 business, or used in a separate unit of a trade

2 or business, from such employer; and

3 (B) the individual who was laid-off was

4 employed by such employer in such trade or

5 business, or in a separate unit of such trade or

6 business, immediately before the acquisition and

7 was employed by the successor employer imme8 diately after the acquisition.

9 (f) INDIVIDUAL TREATED AS PARTICIPATING IN

10 EDUCATION OR TRAINING PROGRAM.—For purposes of

11 this part, an individual shall be treated as participating,

12 and making satisfactory progress, in an education or

13 training program during any week which is part of a break

14 from training that does not exceed twenty-eight days if

15 the break is provided under such program.

16 SEC. 203. WEEKLY AMOUNTS.

17 The retraining income support payable to a perma18 nently laid-off individual for a week of training shall be

19 an amount equal to the most recent weekly benefit amount

20 of the unemployment compensation payable to such indi21 vidual for a week of total unemployment preceding such

22 individual’s first exhaustion of unemployment compensa23 tion related to the permanent layoff reduced (but not

24 below zero) by—
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1 (1) any training income support provided for

2 such week to such individual under another Federal

3 program;

4 (2) income that is earned from employment

5 that exceeds one-half the amount equal to the most

6 recent weekly benefit amount of the unemployment

7 compensation payable to such individual for a week

8 of total unemployment.

9 SEC. 204. LIMITATIONS ON RETRAINING INCOME SUPPORT.

10 (A) INDIVIDUALS WITH THREE YEARS OR MORE OF

11 JOB TENURE.—

12 (1) MAXIMUM AMOUNT.—The maximum

13 amount of retraining income support payable to an

14 individual under subsections (a) and (b) of section

15 202 of this Act shall be the amount which is the

16 product of 52 multiplied by the retraining income

17 support payable to the individual for a week of total

18 unemployment (as determined under section 203),

19 but such product shall be reduced by the total sum

20 of extended and additional unemployment compensa21 tion to which the individual was entitled (or would

22 have been entitled had he applied therefor) in the

23 worker’s first benefit period as described in section

24 202(a)(3)(A).

25 (2) PERIOD OF AVAILABILITY.—
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1 (A) Subject to the provisions of paragraph

2 (B) of this subsection, no retraining income

3 support shall be paid for any week occurring

4 after the close of the one hundred and four5 week period that begins with the first week fol6 lowing the week after the individual was perma7 nently laid off as described in section 202(a)(1)

8 of this Act.

9 (B) For the purpose of determining the

10 one hundred and four week period in subpara11 graph (A) of this subsection, the period of time

12 specified in a certificate of continuing eligibility

13 issued pursuant under section 120 of this Act

14 during which the individual is employed in a job

15 described by that section shall not be counted.

16 (b) INDIVIDUALS WITH LESS THAN THREE YEARS

17 OF JOB TENURE.—

18 (1) MAXIMUM AMOUNT.—The maximum

19 amount of retraining income support payable to an

20 individual under subsection 202(c) this Act shall be

21 the amount which is the product of twenty-six multi22 plied by the retraining income support payable to

23 the individual for a week of total unemployment (as

24 determined under section 203), but such product

25 shall be reduced by the total sum of extended and
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1 additional unemployment compensation to which the

2 individual was entitled (or would have been entitled

3 had he applied therefore) in the worker’s first bene4 fit period as described in section 202(a)(3)(A).

5 (2) PERIOD OF AVAILABILITY.—

6 (A) Subject to the provisions of paragraph

7 (B) of this subsection, no retraining income

8 support shall be paid for any week occurring

9 after the close of the seventy-eight-week period

10 that begins with the first week following the

11 week after the individual was permanently laid

12 off as described in paragraph (1) section 202(a)

13 of this Act.

14 (B) For the purpose of determining the

15 seventy-eight-week period in paragraph (A) of

16 this subsection, the period of time specified in

17 a certificate of continuing eligibility issued pur18 suant under section 120 of this Act during

19 which the individual is employed in a job de20 scribed by that section shall not be counted.

21 (c) WEEKS DURING WHICH INDIVIDUAL RECEIVED

22 ON-THE-JOB TRAINING.—No retraining income support

23 shall be paid to an individual under this part for any week

24 during which the individual is receiving on-the-job train25 ing.
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1 (d) COORDINATION WITH EXTENDED BENEFITS

2 PROGRAM.—Notwithstanding any other provision of this

3 Act or other Federal law, if the benefit year of an individ4 ual ends within an extended benefit period, the number

5 of weeks of extended benefits that such worker would, but

6 for this subsection, be entitled to an extended benefit pe7 riod shall be reduced (but not below zero) by the number

8 of weeks for which the individual was entitled, during such

9 benefit year, to retraining income support under this Act.

10 For purposes of this subsection, the terms ‘‘benefit year’’

11 and ‘‘extended benefit period’’ shall have the same respec12 tive meanings given to them in the Federal-State Ex13 tended Unemployment Compensation Act of 1970.

14 SEC. 205. AGREEMENTS WITH STATES.

15 (A) AGREEMENT REQUIREMENTS.—

16 (1) The Secretary is authorized on behalf of the

17 United States to enter into an agreement with any

18 State, or with any State agency (referred to in this

19 part as ‘‘cooperating States’’ and ‘‘cooperating

20 States agencies’’ respectively). Under such an agree21 ment, the cooperating State agency (A) will receive

22 applications for, and will provide, payments on the

23 basis provided in this part, (B) will provide informa24 tion to each applicant describing the time periods by

25 which enrollment in education must in order to be
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1 eligible for retraining income support pursuant to

2 section 202 of this Act, (C) will provide for a system

3 of voluntary withholding of Federal individual in4 come tax for all individuals receiving retraining in5 come support and (D) will otherwise cooperate with

6 the Secretary and with other Federal agencies in

7 providing payments under this part.

8 (2) Each agreement under this part shall pro9 vide the terms and conditions upon which the agree10 ment may be amended, suspended, or terminated.

11 (b) DETERMINATIONS.—A determination by a co12 operating State agency with respect to eligibility for re13 training income support under this part is subject to re14 view in the same manner and to the same extent as deter15 minations under the applicable State law and only in that

16 manner and to that extent.

17 (c) SURETY BONDS.—Any agreement under this part

18 may require any officer or employee of the State certifying

19 payments or disbursing funds under the agreement or oth20 erwise participating in the performance of the agreement,

21 to give a surety bond to the United States in such amount

22 as the Secretary may deem necessary, and may provide

23 for the cost of such bond from funds for carrying out the

24 purposes of this part.
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1 SEC. 206. ADMINISTRATION ABSENT STATE AGREEMENT.

2 (a) IN GENERAL.—In any State where there is no

3 agreement in force between a State or its agency under

4 section 205 of this Act, the Secretary shall arrange, under

5 prescribed regulations, for performance of all necessary

6 functions under this part, including provisions for a fair

7 hearing for any individual whose application for payments

8 has been denied.

9 (b) JUDICIAL REVIEW.—A final determination under

10 subsection (a) with respect to eligibility for retraining in11 come support under this part is subject to review by the

12 courts in the same manner and to the same extent as is

13 provided by section 205(g) of the Social Security Act.

14 SEC. 207. LIABILITIES OF CERTIFYING AND DISBURSING

15 OFFICERS.

16 (a) CERTIFYING OFFICERS.—No person designated

17 by the Secretary, or designated pursuant to an agreement

18 under this part, as a certifying officer, shall, in the ab19 sence of gross negligence or intent to defraud the United

20 States, be liable with respect to any payment certified by

21 him under this part.

22 (b) DISBURSING OFFICERS.—No disbursing officer

23 shall, in the absence of gross negligence or intent to de24 fraud the United States, be liable with respect to any pay25 ment by him, or her, under this part if it was based upon
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1 a voucher signed by a certifying officer designated as pro2 vided in subsection (a).

3 SEC. 208. FRAUD AND RECOVERY OF OVERPAYMENTS.

4 (a) IN GENERAL.—

5 (1) If a cooperating State agency, the Sec6 retary, or a court of competent jurisdiction deter7 mines that any person has received any payment

8 under this part to which the person was not entitled,

9 including a payment referred to in subsection (b),

10 such person shall be liable to repay such amount to

11 the State agency or the Secretary, as the case may

12 be, except that the State agency or the Secretary

13 may waive such repayment if such agency or the

14 Secretary determines, in accordance with guidelines

15 prescribed by the Secretary, that—

16 (A) the payment was made without fault

17 on the part of such individual, and

18 (B) requiring such repayment would be

19 contrary to equity and good conscience.

20 (2) Unless an overpayment is otherwise recov21 ered, or waived under paragraph (1), the State agen22 cy or the Secretary shall recover the overpayment by

23 deductions from any sum payable to such person

24 under this part, under any Federal unemployment

25 compensation law administered by the State agency
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1 or the Secretary, or under any other Federal law ad2 ministered by the State agency or the Secretary,

3 which provides for the payment of assistance or an

4 allowance with respect to unemployment, and, not5 withstanding any other provision of State law or

6 Federal law to the contrary, the Secretary may re7 quire the State agency to recover any overpayment

8 under this part by deduction from any unemploy9 ment compensation payable to such person under

10 the State law, except that no single deduction under

11 this paragraph shall exceed 50 percent of the

12 amount otherwise payable.

13 (b) DISBARMENT.—If a cooperating State agency,

14 the Secretary, or a court of competent jurisdiction deter15 mines that an individual—

16 (1) knowingly has made, or caused another to

17 make, a false statement or representation of a mate18 rial fact, or

19 (2) knowingly has failed, or caused another to

20 fail, to disclose a material fact, and as a result of

21 such false statement or representation, or of such

22 nondisclosure, such individual has received any pay23 ment under this part to which the individual was not

24 entitled,
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1 such individual shall in addition to any other penalty pro2 vided by law, be ineligible for any further payments under

3 this part.

4 (c) FINAL DETERMINATION.—Except for overpay5 ments determined by a court of competent jurisdiction, no

6 repayment may be required, and no deduction may be

7 made, under this section until a determination under sub8 section (a)(1) by the State agency or the Secretary, as

9 the case may be, has been made, notice of the determina10 tion and opportunity for a fair hearing thereon has been

11 given to the individual concerned, and the determination

12 has become final.

13 (d) AMOUNT RECOVERED.—Any amount recovered

14 under this section shall be returned to the Retraining In15 come Support Account established under section 911 of

16 the Social Security Act.

17 SEC. 209. PENALTIES.

18 Whoever makes a false statement of a material fact

19 knowing it to be false, or knowingly fails to disclose a ma20 terial fact, for the purpose of obtaining or increasing any

21 payment authorized to be furnished under this part or

22 pursuant to an agreement under section 105 shall be fined

23 not more than $1,000 or imprisoned for not more than

24 one year, or both. Nothing in this section shall supersede
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1 any other applicable provisions of title 18 of the United

2 States Code.

3 SEC. 210. DEFINITIONS.

4 For purpose of this part:

5 (1) The term ‘‘State’’ includes the District of

6 Columbia, the Commonwealth of Puerto Rico, and

7 the Virgin Islands.

8 (2) The term ‘‘State agency’’ means the agency

9 of the State which administers the State law.

10 (3) The term ‘‘State law’’ means the unemploy11 ment compensation law of the State approved by the

12 Secretary of Labor under section 3304 of the Inter13 nal Revenue Code of 1986.

14 (4) The term ‘‘applicable State law’’ means the

15 State law of the State in which the individual filed,

16 and became eligible, for unemployment compensa17 tion.

18 (5) The term ‘‘unemployment compensation’’

19 means the unemployment compensation payable to

20 an individual under any State law or Federal unem21 ployment compensation law, including chapter 85 of

22 title 5, United States Code, and the Railroad Unem23 ployment Insurance Act.

24 (6) The term ‘‘week’’ means a week as defined

25 in the applicable State.
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1 (7) The term ‘‘benefit period’’ means, with re2 spect to an individual—

3 (A) the benefit year and any ensuing pe4 riod, as determined under the applicable State

5 law, during which the individual is eligible for

6 regular compensation, additional compensation,

7 or extended compensation, or

8 (B) the equivalent to such a benefit year

9 or ensuing period provided for under the appli10 cable Federal unemployment compensation law.

11 (8) The term ‘‘on-the-job’’ training means

12 training provided by the employer to an individual

13 who performs services for remuneration for the em14 ployer.

15 (9) The term ‘‘Secretary’’ means the Secretary

16 of Labor.

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

18 layoff under which a recall is not expected within

19 twenty-six weeks.

20 (11) The term ‘‘extended unemployment com21 pensation’’ means compensation (including com22 pensation payable pursuant to chapter 85 of title 5)

23 payable for weeks of unemployment beginning in an

24 extended benefit period to an individual under those

25 provisions of a State law which satisfy the require-
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1 ments of the Federal-State Extended Unemployment

2 Compensation Act of 1970 with respect to the pay3 ment of extended compensation.

4 (12) The term ‘‘additional compensation’’

5 means compensation payable by reason of conditions

6 of high unemployment or other special factors to in7 dividuals who have exhausted their unemployment

8 compensation.

9 SEC. 211. REGULATIONS.

10 The Secretary shall prescribe such regulations as may

11 be necessary to carry out the provisions of this part.

12 SEC. 212. EFFECTIVE DATE.

13 The provisions of this part shall take effect on July

14 1, 1995.

15 PART B—RETRAINING INCOME SUPPORT

16 ACCOUNT

17 SEC. 221. ESTABLISHMENT OF RETRAINING INCOME SUP18 PORT ACCOUNT.

19 Title IX of the Social Security Act is amended by

20 adding after section 910 the following section:

21 ‘‘RETRAINING INCOME SUPPORT ACCOUNT

22 ‘‘SEC. 911. (a) ESTABLISHMENT OF ACCOUNT.—

23 There is hereby established in the Unemployment Trust

24 Fund a Retraining Income Support Account. For the pur25 poses provided for in section 904(e), such account shall

26 be maintained as a separate book account.
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1 ‘‘(b) TRANSFERS TO ACCOUNT.—

2 ‘‘(1) TRANSFER OF TAX RECEIPTS.—The Sec3 retary of the Treasury shall transfer (as of the close

4 of each month) from the employment security ad5 ministration account to the retraining income sup6 port account established by subsection (a) an

7 amount equal to one fifth of the tax collected under

8 section 3301 of the Internal Revenue Code of 1986,

9 (exclusive of any increased revenue that is the result

10 of a loss of the tax credit permitted under sub11 sections (a) or (b) of section 3302 of the Internal

12 Revenue Code of 1986 or a tax credit reduction

13 under paragraphs (2) or (3) of subsection 3302(c) of

14 such code) and covered into the Treasury.

15 ‘‘(2) LIMITATION ON TRANSFERS.—The amount

16 transferred pursuant to paragraph (1) in the follow17 ing fiscal years shall not exceed the amounts listed

18 in the following table:

Fiscal year: Amount

Fiscal year 1996 ....................................................... $350,000,000

Fiscal year 1997 ....................................................... $500,000,000

Fiscal year 1998 ....................................................... $550,000,000

Fiscal year 1999 ....................................................... $580,000,000

Fiscal year 2000 ....................................................... $920,000,000.

19 ‘‘(3) APPROPRIATION OF FUNDS.—All funds

20 transferred to the retraining income support account

21 established by subsection (a) are hereby appro-
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1 priated for the purpose of transfer to the States pur2 suant to subsection (c).

3 ‘‘(c) TRANSFERS TO STATES.—

4 ‘‘(1) Amounts in the retraining income support

5 account shall be available for transfer to States

6 which have an agreement described in section 205 of

7 the Reemployment Act of 1994.

8 ‘‘(2) The Secretary of Labor shall from time to

9 time certify to the Secretary of the Treasury for

10 transfer to each State that has an agreement de11 scribed in section 205 of the Reemployment Act of

12 1994 the sums necessary to enable such State to

13 make payments provided by section 202 of such Act.

14 The Secretary of the Treasury, prior to audit or set15 tlement by the General Accounting Office, shall

16 make payment to the State in accordance with such

17 certification.

18 ‘‘(3) Amounts transferred to a State under

19 paragraph (2) shall be used only in the payment of

20 cash benefits to individuals with respect to their re21 training income support provided by section 202 of

22 the Reemployment Act of 1994; and money so re23 ceived by a State which is not used for such pay24 ments shall be returned, at the time specified in the

25 agreement entered into under section 205 of such
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1 Act, to the Secretary of the Treasury for deposit in

2 the Retraining Income Support Account established

3 under subsection (a). Nothing in this paragraph

4 shall be construed to prohibit deducting an amount

5 from retraining income support otherwise payable to

6 an individual and using the amount so deducted to

7 pay for either health insurance or the withholding of

8 Federal individual income tax if the individual elect9 ed to have such deduction made and, in the case of

10 a deduction for health insurance, such deduction was

11 made under a program approved by the Secretary of

12 Labor.

13 ‘‘(d) REPAYMENT.—Whenever the Secretary of the

14 Treasury (after consultation with the Secretary of Labor)

15 determines that the amount transferred to a State under

16 subsection (c) exceeds the amount necessary to meet the

17 anticipated payments for retraining income support from

18 the account, the Secretary of the Treasury shall demand

19 of that State the amount of such excess, which shall be

20 returned to the Retraining Income Support Account estab21 lished under subsection (a).’’.

22 SEC. 222. FUNDS FOR ADMINISTRATION.

23 (a) Subparagraph (A) of section 901(c)(1) of the So24 cial Security Act is amended by—

25 (1) striking ‘‘and’’ at the end of clause (ii);
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1 (2) adding ‘‘and’’ at the end of clause (iii); and

2 (3) adding at the end thereof the following:

3 ‘‘(iv) assisting the States in the adminis4 tration of cash benefits for retraining income

5 support under section 202 of the Reemployment

6 Act of 1994.’’

7 (b) Subparagraph (B) of section 901(c)(1) of the So8 cial Security Act is amended by—

9 (1) striking ‘‘and’’ at the end of clause (iv);

10 (2) adding ‘‘and’’ at the end of clause (v); and

11 (3) adding at the end thereof the following:

12 ‘‘(vi) title II of the Reemployment Act of

13 1994.’’

14 (c) Section 901(c)(2) of the Social Security Act is

15 amended by—

16 (1) striking ‘‘and’’ at the end of subparagraph

17 (B);

18 (2) adding ‘‘and’’ at the end of subparagraph

19 (C); and

20 (3) adding at the end thereof the following:

21 ‘‘(D) title II of the Reemployment Act of

22 1994.’’

23 SEC. 223. CONFORMING AMENDMENTS.

24 (a) Subparagraph (B) of section 905(b)(1) of the So25 cial Security Act is amended to read as follows:
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1 ‘‘(B) the sum of the payments and trans2 fers during such month from the employment

3 security administration account pursuant to

4 section 901(b) and (d) and section 911(b).’’.

5 (b) Section 3302(c)(3) of the Internal Revenue Code

6 of 1986 is amended by—

7 (1) striking ‘‘or’’ at the end of subparagraph

8 (A);

9 (2) adding at the end of subparagraph (B) the

10 following:

11 ‘‘(C) entered into an agreement described

12 in section 205 of the Reemployment Act of

13 1994, with the Secretary of Labor before July

14 1, 1995, or

15 ‘‘(D) fulfilled its commitments under an

16 agreement described in section 205 of the Re17 employment Act of 1994.’’.

18 SEC. 224. EFFECTIVE DATE.

19 The provisions of this part, and the amendments

20 made by this part, shall take effect on October 1, 1995.
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1 PART C—FINANCING PROVISIONS

2 SEC. 231. MODIFICATIONS TO FEDERAL UNEMPLOYMENT

3 TAX.

4 (a) IN GENERAL.—Section 3301 of the Internal Rev5 enue Code of 1986 (relating to the rate of Federal unem6 ployment tax) is amended to read as follows:

7 ‘‘SEC. 3301. RATE OF TAX.

8 There is hereby imposed on every employer (as de9 fined in section 3306(a)) for each calendar year an excise

10 tax, with respect to having individuals in his employ, equal

11 to 6.2 percent of the total wages (as defined in section

12 3306(b)) paid by him during the calendar year with re13 spect to unemployment (as defined in section 3306(c)).’’.

14 (b) EFFECTIVE DATE.—The provisions of this sec15 tion shall take effect on the date of enactment of this Act.

16 SEC. 232. VOLUNTARY WITHHOLDING OF FEDERAL INDI17 VIDUAL INCOME TAX.

18 (a) AUTHORITY FOR WITHHOLDING.—Section 3402

19 of the Internal Revenue Code of 1986 is amended by add20 ing at the end thereof the following new paragraph:

21 ‘‘(t) VOLUNTARY WITHHOLDING ON UNEMPLOY22 MENT AND OTHER BENEFITS.—For purposes of this

23 chapter, amounts subject to tax under section 85(a), and

24 amounts provided as retraining income support under sec25 tion 202 of the Reemployment Act of 1994, shall be treat26 ed as if they were a payment of wages by an employer
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1 to an employee subject to withholding at a rate of 15 per2 cent of the amount paid, if the person to whom the bene3 fits are paid so elects. For purposes of this chapter, these

4 amounts will be treated as wages to the extent paid during

5 the period for which the election remains in effect. The

6 election shall be made in such form and manner as the

7 Secretary may provide.’’.

8 (b) ADDITIONAL REQUIREMENT FOR APPROVAL OF

9 STATE LAW.—Section 3304(a) of the Internal Revenue

10 Code is amended by adding at the end thereof the follow11 ing new paragraph:

12 ‘‘(19) provides for a system for the deduction

13 and withholding of Federal individual income tax

14 from unemployment compensation where an individ15 ual receiving such compensation voluntarily requests

16 such deduction and withholding.’’.

17 (c) CONFORMING AMENDMENTS.—

18 (1) Subparagraph (C) of section 3304(a)(4) of

19 the Internal Revenue Code of 1986 is amended by

20 inserting after ‘‘health insurance’’ the following: ‘‘,

21 or the withholding of Federal individual income

22 tax,’’.

23 (2) Paragraph (5) of section 303(a) of the So24 cial Security Act is amended by inserting after
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1 ‘‘health insurance’’ the following: ‘‘, or the withhold2 ing of Federal individual income tax,’’.

3 (d) EFFECTIVE DATE.—The provisions of this sec4 tion and the amendments made by this section shall take

5 effect on January 1, 1996.

6 PART D—INTEGRATION OF TRADE-IMPACTED

7 WORKERS INTO THE COMPREHENSIVE RE8 EMPLOYMENT SYSTEM

9 SEC. 241. PHASEOUT OF TRADE ADJUSTMENT ASSISTANCE

10 PROGRAM.

11 (a) PHASEOUT.—Section 285 of the Trade Act of

12 1974 (19 U.S.C. 2271 preceding note) is amended by

13 striking subsection (c) and inserting the following:

14 ‘‘(c) No technical assistance may be provided under

15 chapter 3, after September 30, 1998.

16 ‘‘(d)(1) Except as provided in paragraph (2), no as17 sistance may be provided under chapter 2 (including sub18 chapter D of such chapter) on or after July 1, 1995.

19 ‘‘(2) Nothwithstanding paragraph (1), if, on or before

20 June 30, 1995, an individual—

21 ‘‘(A) is receiving assistance under chapter 2 (in22 cluding subchapter D of such chapter), and

23 ‘‘(B) is otherwise eligible to receive assistance

24 in accordance with the requirements of such chapter,

25 such worker shall continue to be eligible to receive
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1 such assistance for any week for which the worker

2 meets the eligibility requirements of the section

3 under which the initial eligibility was determined.’’.

4 (b) EFFECTIVE DATE.—The provisions of this sec5 tion shall take effect on the date of enactment of this Act.

6 SEC. 242. TEMPORARY PROGRAM FOR THE CERTIFICATION

7 OF TRADE-IMPACTED WORKERS.

8 (a) ESTABLISHMENT OF TRANSITIONAL CERTIFI9 CATION PROGRAM.—In order to promote the effective inte10 gration of trade-impacted workers into the comprehensive

11 system of worker reemployment and retraining income

12 support, there is established within the Department of

13 Labor a temporary, transitional certification program.

14 (b) COMPONENTS OF CERTIFICATION PROGRAM.—

15 (1) GROUP ELIGIBILITY REQUIREMENTS.—The

16 Secretary shall certify a group of workers (including

17 workers in any agricultural firm or subdivision of an

18 agricultural firm) as eligible for services under title

19 I of this Act and eligible to apply for retraining in20 come support in accordance with section 202(b) of

21 this Act if the Secretary determines—

22 (A) that a significant number of proportion

23 of the workers in such workers’ firm or an ap24 propriate subdivision of the firm have been laid

25 off, or are threatened to become laid off,
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1 (B) that sales or production, or both, of

2 such firm or subdivision have decreased abso3 lutely, and

4 (C) that increases of imports of articles

5 like or directly competitive with articles pro6 duced by such workers’ firm or an appropriate

7 subdivision thereof contributed importantly to

8 the layoffs, or threat thereof, and to such de9 cline in sales or production.

10 (2) For purposes of subsection (a)(3)—

11 (A) the term ‘‘contributed importantly’’

12 means a cause which is important but not nec13 essarily more important than any other cause;

14 (B) any firm, or appropriate subdivision of

15 a firm, that engages in exploration or drilling

16 for oil or natural gas shall be considered to be

17 a firm producing oil or natural gas; and

18 (C) any firm, or appropriate subdivision of

19 a firm, that engages in exploration or drilling

20 for oil or natural gas, or otherwise produces oil

21 or natural gas, shall be considered to be pro22 ducing articles directly competitive with imports

23 of oil and with imports of natural gas.

24 (2) PETITIONS.—A petition for a certification

25 of eligibility for services under title I of this Act and
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1 eligibility to apply for retraining income support in

2 accordance with section 202(b) of this Act may be

3 filed with the Secretary by a group of workers (in4 cluding workers in any agricultural firm or subdivi5 sion of an agricultural firm) or by their certified or

6 recognized union or other duly authorized represent7 ative. Upon receipt of the petition, the Secretary

8 shall promptly publish notice in the Federal Register

9 that such petition has been received and an inves10 tigation has begun.

11 (3) DETERMINATION BY SECRETARY OF

12 LABOR.—

13 (A) CERTIFICATION OF ELIGIBILITY.—As

14 soon as possible after the date on which a peti15 tion is filed under paragraph (2), but in any

16 event not later than sixty days after that date,

17 the Secretary shall determine whether the peti18 tioning group meets the requirements of para19 graph (1) and shall issue a certification of eligi20 bility for services under title I of this Act and

21 to apply for retraining income support in ac22 cordance with section 202(b) of this Act. Each

23 certification shall specify the date on which the

24 layoffs began or threatened to begin.
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1 (B) WORKERS COVERED BY CERTIFI2 CATION.—A certification under this section

3 shall not apply to any worker whose last layoff

4 from the firm or appropriate subdivision of the

5 firm before his application under paragraph (2)

6 occurred more than one year before the date of

7 the petition on which such certification was

8 granted.

9 (C) PUBLICATION OF DETERMINATION IN

10 FEDERAL REGISTER.—Upon reaching a deter11 mination on a petition, the Secretary shall

12 promptly publish a summary of the determina13 tion in the Federal Register together with the

14 reasons for making such determinations.

15 (D) TERMINATION OF CERTIFICATION.—

16 Whenever the Secretary determines, with re17 spect to any certification of eligibility of the

18 workers of a firm or subdivision of the firm,

19 that layoffs from such firm or subdivision are

20 no longer attributable to the conditions speci21 fied in paragraph (1), the Secretary shall termi22 nate such certification and promptly have notice

23 of such termination published in the Federal

24 Register together with the reasons for making

25 such determination. Such termination shall
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1 apply only with respect to layoffs occurring

2 after the termination date specified by the Sec3 retary.

4 (4) SUBPOENA POWER.—

5 (A) SUBPOENA BY SECRETARY.—The Sec6 retary may require by subpoena the attendance

7 of witnesses and the production of evidence nec8 essary for him to make a determination under

9 the provisions of this section.

10 (B) COURT ORDER.—If a person refuses to

11 obey a subpoena issued under subparagraph

12 (A), a United States district court within the

13 jurisdiction of which the relevant proceeding

14 under this section conducted may, upon petition

15 by the Secretary, issue an order requiring com16 pliance with such subpoena.

17 (c) EFFECTIVE DATE.—Petitions for certification

18 under this section may be filed on or after July 1, 1995,

19 but not later than July 1, 1999.
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1 PART E—UNEMPLOYMENT COMPENSATION

2 FLEXIBILITY

3 SEC. 251. TREATMENT OF SHORT-TIME COMPENSATION

4 PROGRAMS.

5 (a) GENERAL RULE.—Section 3306 of the Internal

6 Revenue Code of 1986 is amended by adding at the end

7 thereof the following new subsection:

8 ‘‘(u) SHORT-TIME COMPENSATION PROGRAM.—For

9 purposes of this chapter, the term ‘short-time compensa10 tion program’ means a program under which—

11 ‘‘(1) the participation of an employer is vol12 untary;

13 ‘‘(2) an employer reduces the number of hours

14 worked by employees in lieu of temporary layoffs;

15 ‘‘(3) such employees whose workweeks have

16 been reduced by at least 10 percent are eligible for

17 unemployment compensation;

18 ‘‘(4) the amount of unemployment compensa19 tion payable to any such employee is a pro rata por20 tion of the unemployment compensation which would

21 be payable to the employee if such employee were to22 tally unemployed;

23 ‘‘(5) such employees are not required to meet

24 the availability for work or work search test require25 ments while collecting short-time compensation bene-
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1 fits, but are required to be available for their normal

2 workweek;

3 ‘‘(6) eligible employees may participate in an

4 employer-sponsored training program to enhance

5 jobs skills if such program has been approved by the

6 State agency;

7 ‘‘(7) the State agency may require an employer

8 to continue to provide health benefits, and retire9 ment benefits under a defined benefit pension plan

10 (as defined in section 3(35) of the Employee Retire11 ment Income Security Act of 1974), to any employee

12 whose workweek is reduced pursuant to the program

13 as though the workweek of such employee had not

14 been reduced;

15 ‘‘(8) the State agency may require an employer

16 (or an employers’ association which is party to a col17 lective bargaining agreement) to submit a written

18 plan describing the manner in which the require19 ments of this subsection will be implemented and

20 containing such other information as the Secretary

21 of Labor determines is appropriate; and

22 ‘‘(9) the program meets such other require23 ments as the Secretary of Labor determines are ap24 propriate.’’.

25 (b) CONFORMING AMENDMENTS.—
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1 (1) Subparagraph (E) of section 3304(a)(4) of

2 such Code is amended to read as follows:

3 ‘‘(E) amounts may be withdrawn for the

4 payment of short-time compensation under a

5 short-time compensation program (as defined

6 under section 3306(u));’’.

7 (2) Paragraph (4) of section 3306(f) of such

8 Code is amended to read as follows:

9 ‘‘(4) amounts may be withdrawn for the pay10 ment of short-time compensation under a short-time

11 compensation program (as defined under subsection

12 (u));’’.

13 (3) Section 303(a)(5) of the Social Security Act

14 is amended by striking ‘‘the payment of short-time

15 compensation under a plan approved by the Sec16 retary of Labor’’ and inserting ‘‘the payment of

17 short-time compensation under a short-time com18 pensation program (as defined in section 3306(u) of

19 the Internal Revenue Code of 1986).’’.

20 SEC. 252. TREATMENT OF REEMPLOYMENT BONUS PRO21 GRAMS.

22 (a) GENERAL RULE.—Section 3306 of the Internal

23 Revenue Code of 1986 is amended by adding at the end

24 thereof the following new subsection:
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1 ‘‘(v) REEMPLOYMENT BONUS PROGRAM.—For pur2 poses of this chapter, the term ‘reemployment bonus pro3 gram’ means a program under which—

4 ‘‘(1) a reemployment bonus is paid in a lump

5 sum to individuals who meet the requirements of

6 paragraph (4) as an incentive to rapid reemploy7 ment;

8 ‘‘(2) the reemployment bonus payable to indi9 viduals pursuant to paragraph (1) is in an amount

10 not in excess of four times the weekly amount of

11 regular unemployment compensation payable to such

12 individuals;

13 ‘‘(3) an amount equal to the amount of the re14 employment bonuses paid pursuant to paragraph (1)

15 is charged against the amount that may be paid to

16 such individuals for regular unemployment com17 pensation under State law;

18 ‘‘(4) individuals may receive the reemployment

19 bonus described in paragraph (1) if such individ20 uals—

21 ‘‘(A) were eligible to receive unemployment

22 compensation under the State law for the week

23 preceding the commencement of full-time em24 ployment obtained in accordance with subpara25 graph (C);
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1 ‘‘(B) were identified pursuant to a State

2 profiling system (established in accordance with

3 section 303(j) of the Social Security Act) as in4 dividuals likely to exhaust regular unemploy5 ment compensation;

6 ‘‘(C) obtained full-time employment within

7 a period of time specified under State law, but

8 not in excess of twelve weeks from the date of

9 the filing of the initial claim;

10 ‘‘(D) are employed by employers other

11 than the employers by whom such individuals

12 were employed immediately prior to receiving

13 unemployment compensation under the State

14 law or during the base period;

15 ‘‘(E) retained full-time employment for a

16 period not less than four months after obtain17 ing employment in accordance with subpara18 graph (C);

19 ‘‘(5) the program does not result in any cost to

20 the Unemployment Trust Fund (established by sec21 tion 904(a) of the Social Security Act) in excess of

22 the cost that would be incurred by such State and

23 charged to such Fund if the State had not partici24 pated in such program;
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1 ‘‘(6) a State desiring to conduct such program

2 submits a plan describing the manner in which the

3 requirements of this subsection will be implemented

4 and the Secretary of Labor approves such plan; and

5 ‘‘(7) the program meets such other require6 ments as the Secretary of Labor determines to be

7 appropriate.’’.

8 (b) CONFORMING AMENDMENTS.—

9 (1) Paragraph (4) of section 3304(a) of such

10 Code is amended by adding at the end thereof the

11 following new subparagraph:

12 ‘‘(G) amounts may be withdrawn for the

13 payment of reemployment bonuses under a re14 employment bonus program (as defined in sec15 tion 3306(v);’’.

16 (2) Subsection (f) of section 3306 of such Code

17 is amended by adding at the end thereof the follow18 ing new paragraph:

19 ‘‘(6) amounts may be withdrawn for the pay20 ment of reemployment bonuses under a reemploy21 ment bonus program (as defined in subsection

22 (v));’’.

23 (3) Section 303(a)(5) of the Social Security Act

24 is amended by adding at the end thereof: ‘‘: Pro25 vided further, That amounts may be withdrawn for
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1 the payment of reemployment bonuses under a reem2 ployment bonus program (as defined in section

3 3306(v) of the Internal Revenue Code of 1986);

4 and’’.

5 SEC. 253. EXTENSION OF SELF-EMPLOYMENT ASSISTANCE

6 PROGRAM.

7 (a) EXTENSION OF PROGRAM.—Paragraph (2) of

8 Section 507(e) of the North American Free Trade Agree9 ment Implementation Act is hereby repealed.

10 (b) CONFORMING AMENDMENTS.—Subsection (e) of

11 section 507 of such Act is further amended by—

12 (1) amending the heading after the subsection

13 designation to read ‘‘EFFECTIVE DATE.—’’, and

14 (2) striking ‘‘(1) EFFECTIVE DATE.—’’.

15 SEC. 254. EFFECTIVE DATE.

16 This part, and the amendments made by this part,

17 shall take effect on the date of enactment of this Act.

18 TITLE III—ONE-STOP CAREER CENTER

19 SYSTEM

20 SEC. 301. STATEMENT OF PURPOSE.

21 It is the purpose of this title to—

22 (1) establish a national program of grants and

23 waivers of Federal statutory and regulatory require24 ments to provide the States with the opportunity, on
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1 a voluntary basis, to develop and implement net2 works of one-stop career centers;

3 (2) provide seed money to encourage the devel4 opment of a flexible, nationwide system of one-stop

5 career centers;

6 (3) promote universal access, by individuals and

7 employers, to a comprehensive menu of quality em8 ployment, education and training information and

9 services;

10 (4) encourage a customer-centered approach to

11 the provision of services, including features to en12 hance customer choice and ensure that the satisfac13 tion of individuals with services received is a primary

14 consideration in the administration of the program;

15 (5) establish a governance structure composed

16 of State, local and Federal partners to ensure com17 mon goals, effective planning, service coordination

18 and oversight of statewide one-stop career center

19 networks; and

20 (6) provide the States and local areas with in21 creased flexibility in the administration of employ22 ment and training programs in exchange for greater

23 accountability for outcomes.
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1 PART A—COMPONENTS OF VOLUNTARY ONE2 STOP CAREER CENTER SYSTEM

3 SEC. 311. GENERAL REQUIREMENTS.

4 For purposes of receiving a grant or waiver under

5 this title (except as provided in section 333(b)(1)(A)), a

6 one-stop career center system shall include—

7 (1) the establishment and operation of a

8 workforce investment board in accordance with sec9 tion 312;

10 (2) the establishment of one-stop career centers

11 in accordance with the procedures described in sec12 tion 313;

13 (3) the provision of services through the one14 stop career centers in accordance with section 314;

15 (4) the participation of Federal programs in ac16 cordance with section 315;

17 (5) agreements concerning the operation of the

18 one-stop career centers in accordance with section

19 316;

20 (6) quality assurance systems in accordance

21 with section 317; and

22 (7) the establishment and operation of a State

23 Human Resource Investment Council in accordance

24 with section 318.

25 SEC. 312. WORKFORCE INVESTMENT BOARDS.

26 (a) DESIGNATION OF ONE-STOP SERVICE AREA.—
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1 (1) The Governor shall, after consultation with

2 the State Human Resource Investment Council, des3 ignate one-stop service areas within the State.

4 (2) The one-stop service areas designated pur5 suant to paragraph (1) shall be—

6 (A) the geographic boundaries of the labor

7 market areas within the State, except that no

8 service delivery area or substate area may be

9 divided among two or more areas;

10 (B) the substate areas or consortium of

11 such areas; or

12 (C) the service delivery areas or consor13 tium of such areas.

14 (3) the Governor may not redesignate one-stop

15 service areas more frequently than once every four

16 years.

17 (b) ESTABLISHMENT OF BOARDS.—

18 (1) IN GENERAL.—For each one-stop service

19 area designated under subsection (a), the local elect20 ed officials from such area shall establish a

21 workforce investment board that meets the require22 ments of this subsection.

23 (2) COMPOSITION.—Each workforce investment

24 board shall consist of—
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1 (A) representatives of private sector em2 ployers, who shall constitute a majority of the

3 board and who shall be owners of business con4 cerns, chief executives or chief operating offi5 cers of businesses, or the chief manager of a

6 plant or subdivision of a firm;

7 (B) representatives of organized labor and

8 community-based organizations, who shall con9 stitute not less than 25 percent of the member10 ship of the board and who shall be officers of

11 such organizations;

12 (C) representatives of educational institu13 tions;

14 (D) appropriate community leaders, such

15 as leaders of economic development agencies,

16 human service agencies and institutions, veter17 ans organizations, and entities providing job

18 training; and

19 (E) a local elected official, who shall be a

20 nonvoting member.

21 (3) NOMINATIONS.—

22 (A) EMPLOYER REPRESENTATIVES.—(i)

23 The representatives of employers under para24 graph (2)(A) shall be selected from among indi25 viduals nominated by general purpose business
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1 organizations after consulting with, and receiv2 ing recommendations from, other business orga3 nizations in the one-stop service area.

4 (ii) For the purposes of this subparagraph,

5 the term ‘‘general purpose business organiza6 tions’’ means organizations which admit to

7 membership any for-profit business operating

8 within the one-stop service area.

9 (B) LABOR REPRESENTATIVES.—The rep10 resentatives of organized labor under paragraph

11 (2)(B) shall be selected from individuals rec12 ommended by recognized State and local labor

13 federations. If the State or local labor federa14 tion fails to nominate a sufficient number of in15 dividuals to be appointed for such category, in16 dividual workers may be included on the board

17 as labor representatives.

18 (C) ELECTED OFFICIAL.—In any case in

19 which there are two or more units of general

20 local government in the one-stop service area,

21 the local elected officials of such units shall de22 termine which official shall be appointed to the

23 board.

24 (D) OTHER MEMBERS.—The members of

25 the board appointed to represent community-
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1 based organizations under paragraph (2)(B),

2 educational institutions under paragraph

3 (2)(C), and the community leaders appointed

4 under paragraph (2)(D) shall be selected from

5 individuals recommended by interested organi6 zations.

7 (4) APPOINTMENT PROCESS.—(A)(i) In any

8 case in which there is only one unit of general local

9 government within the one-stop service area, the

10 chief elected official of that unit shall appoint mem11 bers to the board from the individuals nominated or

12 recommended under paragraph (3).

13 (ii) In any case in which there are two or more

14 such units of general local government in the one15 stop service area, the chief elected officials of such

16 units shall appoint members to the board from the

17 individuals so nominated or recommended in accord18 ance with an agreement entered into by such units

19 of general local government. In the absence of such

20 an agreement, the appointments shall be made by

21 the Governor from the individuals so nominated or

22 recommended.

23 (B) The number of members of the board shall

24 be initially determined—
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1 (i) by the chief elected official in the case

2 described in subparagraph (A)(i),

3 (ii) by the chief elected officials in accord4 ance with the agreement in the case described

5 in subparagraph (A)(ii), or

6 (iii) by the Governor in the absence of such

7 agreement.

8 Thereafter, the number of members of the board

9 shall be determined by the board.

10 (C) Members shall be appointed for fixed and

11 staggered terms and may serve until their successors

12 are appointed. Any vacancy in the membership of

13 the board shall be filled in the same manner as the

14 original appointment. Any member of the board may

15 be removed for cause in accordance with procedures

16 established by the board.

17 (5) CHAIRPERSON.—Each workforce investment

18 board shall elect a chairperson, by a majority vote

19 of the members of the board, from among members

20 of the board who are not the local elected official or

21 heads of public agencies. The term of the chair22 person shall be determined by the board.

23 (6) STAFF.—The chairperson of each workforce

24 investment board shall appoint staff, who are not

25 concurrently on the staff of any participating pro-
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1 gram, to assist such board in carrying out the func2 tions prescribed in this section. Such staff may in3 clude an executive director.

4 (7) CONFLICT OF INTEREST.—No member of a

5 workforce investment board shall cast a vote on the

6 provision of services by that member (or any organi7 zation which that member directly represents) or

8 vote on any matter which would provide direct finan9 cial benefit to that member.

10 (8) PRIVATE INDUSTRY COUNCILS.—A private

11 industry council may become a workforce investment

12 board if the local elected official or officials deter13 mine such council is appropriate and such council—

14 (A) meets the requirements of this sub15 section, or

16 (B) is reconstituted to meet the require17 ments of this subsection.

18 (9) STATE HUMAN RESOURCE INVESTMENT

19 COUNCIL.—In any case in which the one-stop service

20 area is a State, the State human resource invest21 ment council or a portion of such council may be re22 constituted to meet the requirements of this sub23 section.

24 (10) CERTIFICATION.—The Governor shall cer25 tify a workforce investment board if the Governor
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1 determines that its composition and appointments

2 are consistent with the provisions of this subsection.

3 Such certification shall be made or denied within

4 thirty days after the date on which the list of mem5 bers and necessary supporting documentation are

6 submitted to the Governor. When the Governor cer7 tifies the board, it shall be convened within thirty

8 days by the official or officials who made the ap9 pointments under paragraph (4).

10 (c) FUNCTIONS OF BOARD.—

11 (1) STRATEGIC PLANNING.—Each workforce in12 vestment board shall develop a strategic plan and

13 provide policy guidance with respect to the workforce

14 development programs that are administered in the

15 one-stop service area. Such strategic plan shall be

16 consistent with the statewide strategic plan devel17 oped by the State human resource investment coun18 cil pursuant to section 318 and shall include:

19 (A) measurable objectives for improving

20 the quality and effectiveness of workforce prep21 aration, development and training in the one22 stop service area; and

23 (B) methods for coordinating the

24 workforce development programs conducted in

25 the one-stop service area to enhance the deliv-
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1 ery of services, including methods to maximize

2 the coverage of such workforce and appropriate

3 population subgroups, and ensure equitable ac4 cess to services by such subgroups.

5 (2) IDENTIFICATION OF OCCUPATIONS IN DE6 MAND AND TRAINING NEEDS.—In carrying out this

7 subsection, the workforce investment board shall uti8 lize available labor market information and other ap9 propriate methods in order to identify the jobs cur10 rently available, the occupations currently in de11 mand, and the occupations likely to be in demand in

12 the future in the one-stop service area; the skill re13 quirements relating to such jobs and occupations;

14 and education and training services in the one-stop

15 service area that are available to assist individuals in

16 acquiring such skills. Such information shall be used

17 in developing the goals of, and activities to be pro18 vided by, the workforce development programs in the

19 labor market area and disseminated to the public

20 through the one-stop career centers established in

21 such area.

22 (3) BUDGETS.—The workforce investment

23 board shall review and approve the budgets of the

24 participating programs described in subparagraphs

25 (A)–(E) of section 315(a), and the budgets for the
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1 one-stop career centers pursuant to section 316(c),

2 and review and provide recommendations regarding

3 the budgets of other participating programs de4 scribed in section 315(b) to encourage coordination

5 and enhance the delivery of services.

6 (4) ASSUMPTION OF FUNCTIONS.—

7 (A) IN GENERAL.—The workforce invest8 ment board shall assume the functions of the

9 private industry council described in section

10 103 of the Job Training Partnership Act and of

11 the Job Service Employer Committees.

12 (B) LIMITATION.—The workforce invest13 ment board shall not be the administrative en14 tity for programs under title II of the Job

15 Training Partnership Act and shall not operate

16 any other programs.

17 (5) OVERSIGHT.—The workforce investment

18 board shall conduct oversight of the implementation

19 of the strategic plan and the overall performance of

20 the participating programs described in section 315.

21 (6) CHARTERING OF CENTERS.—Each

22 workforce investment board shall administer the pro23 cedures for the chartering of one-stop career centers

24 described in section 314(c).
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1 SEC. 313. ESTABLISHMENT OF ONE-STOP CAREER CEN2 TERS.

3 (a) IN GENERAL.—The Governor and local elected of4 ficial or officials shall jointly select either the option de5 scribed in subsection (b) or the option described in sub6 section (c) as the method for establishing one-stop career

7 centers for each one-stop service area.

8 (b) CONSORTIUM OPTION.—

9 (1) CONSORTIUM MEMBERS.—One-stop career

10 centers in the one-stop service area shall be adminis11 tered by a consortium that consists of—

12 (A) the Employment Service;

13 (B) the substate grantee or grantees for

14 title I of this Act;

15 (C) the administrative entity or entities for

16 title II of the Job Training Partnership Act;

17 (D) the State agency charged with the ad18 ministration of the State unemployment com19 pensation law, unless such agency chooses not

20 to participate; and

21 (E) one or more additional entities that

22 shall be—

23 (i) any unit of government,

24 (ii) any public or private provider of

25 reemployment, education and training or

26 social services, or
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1 (iii) a consortium of the entities de2 scribed in clauses (i) and (ii).

3 (2) ESTABLISHMENT CRITERIA.—In order to be

4 designated to operate the one-stop career center sys5 tem, the consortium established in accordance with

6 paragraph (1) shall demonstrate to the satisfaction

7 of the workforce investment board the ability of such

8 consortium to—

9 (A) meet the criteria described in clauses

10 (i)–(vi) of subsection (c)(6)(B),

11 (B) provide for customer choice in obtain12 ing the basic services described in section

13 314(a) by—

14 (i) operating two or more centers, and

15 (ii) administering budget resources to

16 reflect, at least in part, the extent to which

17 each center is used by the public, and

18 (C) provide equitable access to centers by

19 segments of the population within the one-stop

20 service area.

21 (3) INTEGRATION OF PROGRAM ADMINISTRA22 TION.—Consortia established in accordance with

23 paragraph (1) shall, in addition to meeting the es24 tablishment criteria described in paragraph (2),

25 identify to the workforce investment board proce-
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1 dures that would be used to promote the integration

2 of the administration of the programs conducted by

3 the members of such consortium, such as procedures

4 to provide for the cross-training of staff, promote

5 the collocation of facilities, and encourage the use of

6 common forms and practices.

7 (4) RENEWAL OF CHARTER.—The Governor

8 and local elected official or officials, in consultation

9 with the workforce investment board, shall review

10 the performance of the consortium and once every

11 four years determine whether to renew the charter

12 of the consortium.

13 (c) MULTIPLE INDEPENDENT OPERATOR OPTION.—

14 (1) MULTIPLE INDEPENDENT OPERATORS.—

15 The workforce investment board shall select, in ac16 cordance with the requirements of this subsection,

17 two or more entities to operate one-stop career cen18 ters in the one-stop service area.

19 (2) ELIGIBLE ENTITIES.—Any entity or consor20 tium of entities located in the one-stop service area

21 may apply, in accordance with the procedures de22 scribed in paragraph (4), to be selected as a one23 stop career center operator. Such entities may in24 clude—

25 (A) Employment Service offices,
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1 (B) career center operators under title I of

2 this Act,

3 (C) service delivery area grant recipients or

4 administrative entities under the Job Training

5 Partnership Act,

6 (D) community colleges and area voca7 tional schools,

8 (E) community-based and other private

9 for-profit and nonprofit organizations, and

10 (F) other interested private and public or11 ganizations and entities.

12 (3) SPECIAL RULE.—If the Employment Serv13 ice, or a consortium including the Employment Serv14 ice, applies to be selected as one-stop career center

15 operator and such Employment Service or consor16 tium meets the selection criteria developed pursuant

17 to paragraph (6), the workforce investment board

18 shall select such Employment Service or consortium

19 to be one of the operators.

20 (4) PUBLICATION OF PROCEDURES.—The

21 workforce investment board, after consultation with

22 the Governor and local elected officials, shall pub23 lish, in a manner that is generally available, infor24 mation to notify organizations and individuals in the

25 one-stop service area of—
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1 (A) the estimated number of one-stop ca2 reer centers needed and proposed number of op3 erators to be selected in the one-stop service

4 area, as determined in accordance with para5 graph (5);

6 (B) the application procedure for any en7 tity or consortium of entities to be selected as

8 such center operator, including when and where

9 such application is to be submitted and what in10 formation such application is to contain;

11 (C) the criteria for selection that will be

12 used, as determined in accordance with para13 graph (6); and

14 (D) other information the workforce in15 vestment board considers relevant to the selec16 tion and administration of such center opera17 tors.

18 (5) NUMBER OF ONE-STOP CENTER OPERA19 TORS.—The workforce investment board shall deter20 mine the number of one-stop career center operators

21 to be selected in the one-stop service area. In deter22 mining the appropriate number of such operators,

23 which shall not be less than two, the workforce in24 vestment board shall take into account—

25 (A) the size of the labor market;
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1 (B) the number of customers who will po2 tentially use the one-stop career centers, includ3 ing unemployed and discouraged workers, em4 ployed workers, economically disadvantaged in5 dividuals, students, out-of-school youth, older

6 workers, veterans, and employers;

7 (C) the number and capabilities of poten8 tial operators; and

9 (D) equitable access to centers by seg10 ments of the population within the one-stop

11 service area.

12 (6) SELECTION CRITERIA.—

13 (A) OBJECTIVE FACTORS.—The workforce

14 investment board, consistent with guidelines is15 sued by the Secretary, shall use objective cri16 teria and performance measures in assessing

17 applications submitted for selection as a one18 stop career center operator.

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

20 selected as a one-stop career center operator

21 under this title unless such applicant dem22 onstrates to the satisfaction of the workforce in23 vestment board the ability to establish a one24 stop career center or centers that would—
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1 (i) provide the services described in

2 section 314;

3 (ii) utilize automated information sys4 tems to facilitate the exchange of informa5 tion among career centers;

6 (iii) meet the performance standards

7 prescribed pursuant to section 317;

8 (iv) ensure effective fiscal and pro9 gram management;

10 (v) administer the process of referring

11 participants to education and training

12 services in an objective and equitable man13 ner; and

14 (vi) provide services on a nondiscrim15 inatory basis to the population in the one16 stop service area.

17 (7) SINGLE OPERATOR EXCEPTION.—Notwith18 standing the number of operators to be selected pur19 suant to paragraph (5), if only one applicant meets

20 the selection criteria developed pursuant to para21 graph (6), the workforce investment board may se22 lect the single applicant to operate the one-stop ca23 reer center system.

24 (8) PERIOD OF SELECTION.—The workforce in25 vestment board shall select one-stop career center
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1 operators pursuant to the requirements of his sub2 section once every four years.

3 (d) CHARTERS.—The workforce investment board

4 shall issue a charter to each one-stop career center des5 ignated pursuant to this section. Such charter shall—

6 (1) identify the number and location of the one7 stop career centers in the one-stop service area;

8 (2) identify the entity or entities operating the

9 one-stop career centers;

10 (3) provide for the display of the one-stop ca11 reer center national logo developed pursuant to sec12 tion 343(c);

13 (4) include such other conditions as the

14 workforce investment board determines is appro15 priate.

16 (e) ENFORCEMENT OF HONEST BROKER FUNC17 TIONS.—The workforce investment board shall review, not

18 less than once each program year, the education and train19 ing referral practices of any one-stop career center that

20 is operated by an entity that concurrently provides edu21 cation and training services to participants under this

22 title. If the workforce investment board determines that

23 such center has engaged in a pattern of inappropriate re24 ferrals to the education and training services provided by

25 the operator of such center, the Board may terminate the
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1 charter to operate such center or may require such opera2 tor to cease providing education and training services to

3 participants under this title as a condition for continuing

4 to operate such center.

5 SEC. 314. SERVICES TO BE PROVIDED THROUGH ONE-STOP

6 CAREER CENTERS.

7 (A) BASIC SERVICES.—Each one-stop career center

8 established pursuant to this title shall make available to

9 the public free of charge the following basic services:

10 (1) Outreach to make individuals aware of, and

11 encourage the use of, employment and training serv12 ices, including efforts to expand awareness of train13 ing and placement opportunities for limited-English

14 proficient individuals, disadvantaged youth and

15 adults, and individuals with disabilities.

16 (2) Intake and orientation to the information

17 and services available through such center.

18 (3) Assistance in filing an initial claim for un19 employment compensation.

20 (4) Preliminary assessment of skill levels (in21 cluding appropriate testing) and service needs of

22 such individuals, which may include such factors as

23 basic skills, occupational skills, prior work experi24 ence, employability, interests, aptitudes, and sup25 portive service needs.
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1 (5) Information relating to local, regional and

2 national labor markets, including—

3 (A) job vacancy listings in such markets,

4 and

5 (B) information relating to local occupa6 tions in demand and the earnings and skill re7 quirements for such occupations;

8 (6) job search assistance, including resume and

9 interview preparation, and workshops;

10 (7) job referral and job placement assistance;

11 (8) information relating to job training and

12 education programs (including student financial as13 sistance), including the eligibility requirements of

14 and services provided by such programs, the avail15 ability and quality of such programs, and referrals

16 to such programs where appropriate;

17 (9) information collected pursuant to the per18 formance standards and customer feedback require19 ments of section 317;

20 (10) assistance in evaluating whether such indi21 viduals are likely to be eligible for any program par22 ticipating in the career center;

23 (11) information relating to programs and pro24 viders of dependent care and other supportive serv25 ices available in the local area;
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1 (12) soliciting and accepting job orders submit2 ted by employers in the one-stop service area, and

3 screening and referring applicants in accordance

4 with such orders.

5 (b) INTENSIVE SERVICES.—Each one-stop career

6 center established pursuant to this title shall make avail7 able to participants in the program described under title

8 I of this Act who are unable to obtain employment through

9 the basic services described in subsection (a), and may

10 make available to other individuals, in accordance with the

11 written agreement developed pursuant to section 316, the

12 following intensive services:

13 (1) Comprehensive and specialized assessments

14 of the skill levels and service needs of individuals,

15 which may include—

16 (A) diagnostic testing and other assess17 ment tools; and

18 (B) in-depth interviewing and evaluation to

19 identify employment barriers and appropriate

20 employment goals.

21 (2) The development of an individual reemploy22 ment plan, which shall identify the employment goal

23 (including in appropriate circumstances, nontradi24 tional employment), appropriate achievement objec-
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1 tives, and the appropriate combination of services

2 for a participant to achieve the employment goal.

3 (3) Group counseling, including peer counseling,

4 which may be available to individuals jointly with

5 their immediate families, and which may include

6 counseling relating to stress management and finan7 cial management and which shall be a basic service

8 for participants in the program established under

9 title I of this Act.

10 (4) Individualized counseling and career plan11 ning, including peer counseling and counseling and

12 planning relating to nontraditional employment op13 portunities.

14 (5) Case management for individuals receiving

15 education, training and supportive services, includ16 ing periodically reviewing the individual’s progress

17 toward achieving his or her employment goal.

18 (6) Job development.

19 (7) Out-of-area job search allowances.

20 (8) Relocation allowances.

21 (9) Assistance in the selection of education and

22 training providers.

23 (10) Assistance in obtaining income support for

24 which the individual is eligible, to enable such indi25 vidual to participate in training.
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1 (11) Supportive services.

2 (12) Followup counseling for individuals placed

3 in training or employment.

4 (c) SPECIALIZED EMPLOYER SERVICES.—Each one5 stop career center established pursuant to this title may

6 provide to employers the following services:

7 (1) Customized screening and referral of indi8 viduals for employment.

9 (2) Customized assessment of skill levels of the

10 employer’s current employees.

11 (3) Analysis of the employer’s workforce skill

12 needs.

13 (4) Other specialized employment and training

14 services.

15 (d) ADDITIONAL SERVICES.—Each one-stop career

16 center established pursuant to this title may make avail17 able such additional services as are specified in the written

18 agreement under section 316.

19 (e) FEES.—

20 (1) IN GENERAL.—(A) Except as provided in

21 subparagraph (B), each one-stop career center may

22 charge fees for the services described in subsections

23 (b), (c) and (d) if such fees are approved by the

24 workforce investment board.
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1 (B) No fees may be charged to an individual for

2 any service which such individual is eligible to re3 ceive free of charge under any participating program

4 described in section 315 unless there are no funds

5 available under such program to provide such serv6 ices.

7 (2) PROGRAM INCOME.—All program income re8 ceived by a one-stop career center that is operated

9 by a public or private non-profit entity from the fees

10 collected pursuant to paragraph (1) shall be used to

11 expand or enhance the services provided by such

12 center.

13 SEC. 315. PARTICIPATING PROGRAMS.

14 (A) MANDATORY PROGRAMS.—

15 (1) IN GENERAL.—Subject to the provisions of

16 paragraph (2), the following programs shall make

17 available to participants through the one-stop career

18 centers the services described in section 314(a) that

19 are applicable to such program and shall participate

20 in the operation of such centers as a party to the

21 agreement described in section 316:

22 (A) Programs authorized under title I of

23 this Act.

24 (B) Programs authorized under the Wag25 ner-Peyser Act.
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1 (C) Programs authorized under chapter 41

2 of title 38, United States Code.

3 (D) Programs authorized under title II of

4 the Job Training Partnership Act.

5 (E) Programs authorized under title V of

6 the Older Americans Act.

7 (F) Programs authorized under Federal

8 and State unemployment compensation laws.

9 (2) ADDITIONAL CONDITIONS.—

10 (A) The programs authorized under title I

11 of this Act shall provide the services described

12 in subsections (a) and (b) of section 314

13 through the one-stop career centers, which shall

14 replace the career centers established pursuant

15 to section 118 of this Act.

16 (B) The program authorized under the

17 Wagner-Peyser Act shall provide the applicable

18 services described in subsections (a) and (b) of

19 section 314 only through the one-stop career

20 centers.

21 (C) The program authorized under chapter

22 41 of title 38, United States Code, shall make

23 available through the one-stop career centers

24 the applicable services described in subsections

25 (a) and (b) of section 314, and may, in addi-
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1 tion, provide such services through other loca2 tions.

3 (D) The programs described under sub4 paragraphs (C), (D), (E), and (F) of paragraph

5 (1) may, in addition to providing applicable

6 services under section 314(a) through the one7 stop career centers, provide such services

8 through other locations and service providers.

9 (E) The programs described in paragraph

10 (1) may provide additional services through the

11 one-stop career centers in accordance with the

12 written agreement described in section 316.

13 (b) VOLUNTARY.—In addition to the programs de14 scribed in subsection (a), other human resource programs

15 may provide services through the one-stop career centers

16 and participate in the operation of such centers as a party

17 to the agreement described in section 316 if the workforce

18 investment board, local elected official or officials, the

19 Governor, and other participating programs approve such

20 participation. Such programs may include programs au21 thorized under—

22 (1) part F of title IV of the Social Security Act

23 (the Job Opportunities and Basic Skills (JOBS)

24 program);
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1 (2) section 6(d)(4) of the Food Stamp Act of

2 1977 (the Food Stamp Employment and Training

3 Program);

4 (3) part B of title IV of the Job Training Part5 nership Act (Job Corps);

6 (4) programs authorized under title IV–C of the

7 Job Training Partnership Act;

8 (5) the Carl D. Perkins Vocational and Applied

9 Technology Education Act;

10 (6) the Adult Education Act;

11 (7) the Vocational Rehabilitation Act; and

12 (8) the School-to-Work Opportunities Act.

13 SEC. 316. OPERATING AGREEMENTS.

14 (a) IN GENERAL.—The one-stop career center opera15 tors selected pursuant to section 313 shall enter into a

16 written agreement with the workforce investment board

17 and participating programs described in section 315 con18 cerning the operation of the one-stop career centers. Such

19 agreement shall be subject to the approval of the local

20 elected official and the Governor, who shall oversee the

21 development of such agreement, ensure that the agree22 ment meets the requirements of this section, and monitor

23 the implementation of such agreement.

24 (b) CONTENTS.—The written agreement required

25 under subsection (a) shall contain the following:
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1 (1) The services to be provided by the centers,

2 consistent with section 314, and the extent to which

3 participating programs will provide services to pro4 gram participants through such centers, consistent

5 with section 315.

6 (2) Methods for referral of individuals by the

7 one-stop career centers to the appropriate services

8 and programs.

9 (3) The financial and nonfinancial contributions

10 to be made to the centers by each participating pro11 gram, which shall be based on factors including the

12 number of participants served by the centers from

13 each participating program and the quality of serv14 ices provided.

15 (4) The financial liability of the respective par16 ties relating to the funds contributed by the partici17 pating programs.

18 (5) The financial contributions to be made for

19 the administration of the workforce investment

20 board by each participating program.

21 (6) Methods of administration, including provi22 sions for monitoring and oversight of the centers

23 and of this agreement.

24 (7) A description of how services are to be pro25 vided by the centers, such as the methods and ap-
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1 propriate test instruments to be used to assess the

2 skill levels of individuals.

3 (8) The procedures to ensure the utilization of

4 a common local job bank.

5 (9) The procedures to be used to ensure compli6 ance with the statutory and regulatory requirements

7 of the participating programs.

8 (10) The duration of the agreement and the

9 procedures for amending the agreement during its

10 term.

11 (11) Such other provisions, consistent with the

12 requirements of this title, that the parties deem ap13 propriate.

14 (c) ONE-STOP CAREER CENTER AND BOARD BUDG15 ETS.—The parties to the written agreement described

16 under subsection (a) shall supplement the written agree17 ment by developing an annual budget for the one-stop ca18 reer centers and the workforce investment board. The

19 budget for the board shall be subject to the approval of

20 the local elected official. The budget for the career centers

21 shall be subject to approval of the local elected official and

22 the Governor.

23 SEC. 317. QUALITY ASSURANCE SYSTEMS.

24 (a) PERFORMANCE STANDARD.—
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1 (1) IN GENERAL.—The Secretary, after con2 sultation with the Governors, workforce investment

3 boards, and one-stop career center operators, shall

4 prescribe performance standards relating separately

5 to the one-stop career centers and the workforce in6 vestment boards established under this title. Such

7 standards shall be based on factors the Secretary de8 termines are appropriate, which may include—

9 (A) in the case of one-stop career cen10 ters—

11 (i) placement, retention and earnings

12 of participants in unsubsidized employ13 ment, including—

14 (I) wages and benefits at a speci15 fied period after termination from the

16 program,

17 (II) full-time and part-time em18 ployment, and

19 (III) comparability of wages at a

20 specified period after termination

21 from the program with wages prior to

22 participation in the program;

23 (ii) the provision of services to hard24 to-serve populations, such as individuals

25 who are basic skills deficient, school drop-
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1 outs, individuals with disabilities, older

2 workers with obsolete skills, economically

3 disadvantaged individuals, and others who

4 face serious barriers to employment;

5 (iii) acquisition of skills pursuant to a

6 skill standards and skill certification sys7 tem endorsed by the National Skill Stand8 ards Board established under the Goals

9 2000: Educate America Act;

10 (iv) satisfaction of participants with

11 services provided and the employment out12 comes;

13 (v) satisfaction of employers with job

14 performance of individuals placed; and

15 (vi) measures of the cost efficiency of

16 the one-stop career centers;

17 (B) in the case of the workforce invest18 ment boards—

19 (i) job openings received from employ20 ers, including the proportion of employers

21 in the one-stop service area that list jobs

22 with the one-stop career centers;

23 (ii) job openings filled through the

24 one-stop career centers; and
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1 (iii) the overall performance of the ca2 reer centers in the one-stop service area.

3 (2) ADJUSTMENTS.—Each Governor shall,

4 within parameters established by the Secretary, pre5 scribe adjustments to the performance standards

6 prescribed under paragraph (1) for the one-stop ca7 reer centers and workforce investment boards estab8 lished in the State based on—

9 (A) specific economic, geographic and de10 mographic factors in the State and in one-stop

11 service areas within the State; and

12 (B) the characteristics of the population to

13 be served, including the demonstrated difficul14 ties in serving special populations.

15 (3) FAILURE TO MEET STANDARDS.—

16 (A) UNIFORM CRITERIA.—The Secretary

17 shall establish uniform criteria for determining

18 whether a one-stop career center or workforce

19 investment board fails to meet performance

20 standards under this section.

21 (B) TECHNICAL ASSISTANCE.—The Gov22 ernor shall provide technical assistance to one23 stop career centers and workforce investment

24 boards failing to meet performance standards
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1 under the uniform criteria established under

2 paragraph (1).

3 (C) REPORT ON PERFORMANCE.—Each

4 Governor shall include in the report to the Sec5 retary the final performance standards and per6 formance for each one-stop career center and

7 workforce investment board within the State,

8 along with the technical assistance planned and

9 provided as required under subparagraph (B).

10 (D) REVOCATION OF CHARTER.—If a one11 stop career center continues to fail to meet such

12 performance standards for two consecutive pro13 gram years, the Governor shall notify the Sec14 retary and the one-stop career center of the

15 continued failure, and the workforce investment

16 board shall—

17 (i) in the case of a one-stop career

18 center selected pursuant to the multiple

19 independent operator option, terminate the

20 operating agreement and select another en21 tity as the one-stop career center consist22 ent with the procedures described in sec23 tion 313(b); and

24 (ii) in the case of a one-stop career

25 center operated under the consortium op-
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1 tion, terminate the operating agreement to

2 operate such center and to select another

3 entity as a one-stop career center, consist4 ent with the procedures described in sec5 tion 313(b).

6 (E) CORRECTIVE ACTION FOR BOARDS.—If

7 a workforce investment board continues to fail

8 to meet such performance standards for two

9 consecutive program years, the Governor shall

10 notify the Secretary and the workforce invest11 ment board of the continued failure, and

12 shall—

13 (i) replace the members of such board,

14 (ii) direct the board to replace staff,

15 iii) direct the board to replace the

16 chairperson, or

17 (iv) take such other action as the Gov18 ernor determines is appropriate.

19 (F) APPEAL.—(i) A one-stop career center

20 operator that is the subject of a revocation

21 under subparagraph (D) or a workforce invest22 ment board that is subject to sanctions under

23 subparagraph (E) may, within thirty days after

24 receiving notice thereof and pursuant to criteria

25 established by the Secretary, appeal to the Gov-
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1 ernor to rescind such action. The governor shall

2 issue a decision on the appeal within thirty days

3 of its receipt.

4 (ii) A one-stop career center operator or

5 workforce investment board that receives an ad6 verse decision under an appeal filed pursuant to

7 clause (i) may, within thirty days, appeal to the

8 Secretary. The Secretary shall issue a decision

9 on the appeal within thirty days of its receipt.

10 (b) CUSTOMER FEEDBACK.—

11 (1) METHODS.—Each workforce investment

12 board shall establish methods for obtaining, on a

13 regular basis, information from individuals and em14 ployers who have received services through a one15 stop career center regarding the effectiveness and

16 quality of such services. Such methods may include

17 the use of surveys, interviews, focus groups, and

18 other techniques.

19 (2) ANALYSIS AND DISSEMINATION.—Each

20 workforce investment board shall analyze the infor21 mation obtained pursuant to paragraph (1) on a reg22 ular basis and provide a summary of such informa23 tion accompanied by such analysis to the one-stop

24 career center for use in improving the quality of

25 services provided under this title.
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1 SEC. 318. STATE HUMAN RESOURCE INVESTMENT COUNCIL.

2 (a) IN GENERAL.—Each State shall establish a State

3 human resource investment council that meets the require4 ments of title VII of the Job Training Partnership Act.

5 In addition to carrying out the functions required under

6 paragraphs (1)–(3) of section 701 of such Act, the Council

7 shall—

8 (1) identify the human investment needs in the

9 State and recommend to the Governor goals for

10 meeting such needs;

11 (2) recommend to the Governor goals for the

12 development and coordination of the human resource

13 system in the State;

14 (3) prepare and recommend to the Governor a

15 strategic plan to accomplish the goals developed pur16 suant to paragraphs (2) and (3); and

17 (4) monitor the implementation of and evaluate

18 the effectiveness of the strategic plan prepared pur19 suant to paragraph (3).

20 (b) ONE-STOP FUNCTION.—In addition to the func21 tions described in subsection (a), the council shall advise

22 the Governor with respect to all aspects of the develop23 ment and implementation of the one-stop career center

24 system authorized under this title, including—

25 (1) assessing the needs of the State with regard

26 to—
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1 (A) current and projected demand for

2 workers by occupation;

3 (B) skill levels of the workforce and the

4 needs of business for a skilled workforce;

5 (C) economic development needs of the

6 State;

7 (D) the type and availability of workforce prep8 aration and development programs in the State;

9 (2) providing advice to the Governor on the des10 ignation of one-stop service areas within the State;

11 (3) developing measures of effectiveness for the

12 workforce investment boards;

13 (4) facilitating the provision through appro14 priate State agencies of grants and technical assist15 ance to workforce investment boards;

16 (5) developing a mechanism for waiving State

17 rules and provisions of law with respect to workforce

18 investment programs; and

19 (6) developing a strategy to collect and utilize

20 information on the effectiveness of workforce invest21 ment programs, and that of individual service pro22 viders, and to share such information with cus23 tomers of such programs.
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1 PART B—GRANTS AND WAIVERS TO PROMOTE

2 THE DEVELOPMENT AND IMPLEMENTATION

3 OF ONE-STOP CAREER CENTER SYSTEM

4 SEC. 331. STATE PLANNING AND DEVELOPMENT GRANTS.

5 (a) PROGRAM AUTHORIZED.—The Secretary is au6 thorized to establish a program of competitive grants to

7 States to assist in the planning and development of a com8 prehensive Statewide network of one-stop career centers.

9 (b) APPLICATION.—

10 (1) IN GENERAL.—Any State desiring a grant

11 under this section shall submit an application to the

12 Secretary at such time, in such manner, and con13 taining such information as the Secretary may rea14 sonable require.

15 (2) CONTENTS OF APPLICATIONS.—The appli16 cation for a grant submitted pursuant to paragraph

17 (1) shall at a minimum include—

18 (A) a timetable and estimate of the

19 amount of funds needed to complete the plan20 ning and development necessary to implement a

21 Statewide system of one-stop career centers,

22 which includes the components described in

23 part A; and

24 (B) a description of the manner in which

25 the Governor, local elected officials, community

26 and business leaders, representatives of employ-
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1 ees, representatives of voluntary organizations,

2 representatives of the programs described in

3 section 315, service providers and other inter4 ested organizations and individuals will work to5 gether in the planning and development of a

6 one-stop career center system.

7 (c) USE OF FUNDS.—Funds awarded under this sec8 tion may be used to carry out the following activities:

9 (1) Identifying and establishing an appropriate

10 State structure to administer the one-stop career

11 center network within the State.

12 (2) Identifying and establishing broad-based

13 partnerships among employers, labor, education,

14 State and local government, and community-based

15 organizations to participate in the design, develop16 ment, and administration of a one-stop career center

17 system.

18 (3) Developing a plan to establish a State

19 Human Resource Investment Council and local

20 workforce investment boards.

21 (4) Developing the process for chartering one22 stop career centers.

23 (5) Supporting local one-stop career center

24 planning and development activities to provide guid-
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1 ance in the development of a one-stop career center

2 system.

3 (6) Initiating pilot programs for testing key

4 components of State program design, such a design5 ing and testing common intake forms for participat6 ing programs.

7 (7) Analyzing State and local labor markets

8 and the operation of the current labor exchange and

9 labor market intermediaries, to inform the design of

10 the new system.

11 (8) Analyzing current statutory and regulatory

12 impediments to the establishment of a one-stop ca13 reer center system, and preparing requests to waive

14 statutory or regulatory requirements.

15 (9) Preparing the plan required for submission

16 of an application for an Implementation Grant

17 under section 332.

18 (10) Other appropriate activities.

19 SEC. 332. STATE IMPLEMENTATION GRANTS.

20 (a) PROGRAM AUTHORIZED.—The Secretary is au21 thorized to establish a program of competitive grants to

22 States to assist in the implementation of a comprehensive

23 statewide system of one-stop career centers.

24 (b) APPLICATION.—
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1 (1) IN GENERAL.—Any State desiring a grant

2 under this section shall, with the agreement of the

3 local elected officials from the one-stop service areas

4 identified in paragraph (3)(C) that will immediately

5 begin implementation of the one-stop career center

6 system, submit an application to the Secretary at

7 such time, in such manner, and containing such in8 formation as the Secretary may reasonably require.

9 (2) CONTENTS OF APPLICATION.—The applica10 tion for a grant submitted pursuant to paragraph

11 (1) shall, at a minimum, include—

12 (A) a plan for a comprehensive, statewide

13 one-stop career center system that includes the

14 components described in part A;

15 (B) a request in accordance with section

16 333, if any, for one or more waivers of statu17 tory or regulatory requirements relating to the

18 programs described in section 333(c);

19 (C) such other information as the Sec20 retary may require.

21 (3) CONTENTS OF STATE PLAN.—A State plan

22 shall—

23 (A) designate a fiscal agent to receive and

24 be accountable for implementation grant funds

25 awarded under this section and describe how
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1 the State intends to manage the funds awarded

2 under this section at the State and local levels;

3 (B) identify the one-stop service areas that

4 have been designated within the State pursuant

5 to section 302(a);

6 (C) identify the one-stop service areas in

7 the State that will immediately begin implemen8 tation of the one-stop career center system, and

9 the schedule for implementation for the remain10 ing areas of the State;

11 (D) identify the workforce development

12 programs that will participate in the one-stop

13 career centers, consistent with section 315;

14 (E) describe the method by which one-stop

15 career centers will be selected, consistent with

16 section 313;

17 (F) describe the performance standards

18 that the State intends to meet;

19 (G) describe the procedure by which the

20 Governor, local elected officials, officials admin21 istering participating programs, and other ap22 propriate officials, will collaborate in the imple23 mentation of the statewide one-stop career cen24 ter system;
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1 (H) describe the manner in which the

2 State has obtained and will continue to obtain

3 the active and continued involvement, in the

4 statewide one-stop career center system, of em5 ployers (including small business) and other in6 terested parties such as secondary schools and

7 post-secondary educational institutions (or re8 lated agencies), business associations, employ9 ees, labor organizations or associations of such

10 organizations, community-based organizations,

11 economic development organizations, rehabilita12 tion agencies and organizations, registered ap13 prenticeship agencies, vocational education

14 agencies, State or regional cooperative edu15 cation associations, human service agencies, and

16 education, employment and training service pro17 viders;

18 (I) describe the manner in which the State

19 will ensure equitable opportunities for job20 seekers, students, and employers in the State to

21 receive services from one-stop career centers;

22 (J) if the State has already undertaken a

23 one-stop service initiative, describe how such

24 initiative will be integrated into the Statewide

25 one-stop career center system under this title;
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1 (K) describe the administrative and man2 agement systems that will be used in the State;

3 and

4 (L) describe the resources that the State

5 intends to employ in maintaining the one-stop

6 career center system whn funds under this title

7 are no longer available.

8 (c) FACTORS TO BE AWARDED SPECIAL CONSIDER9 ATION.—An applicant shall be awarded special consider10 ation in the evaluation of a grant application under this

11 section with respect to the following factors:

12 (1) The extent to which the one-stop service

13 areas in the State are based on labor market areas.

14 (2) The number of Federal programs that will

15 participate in the one-stop career centers.

16 (3) The extent to which the Job Opportunities

17 and Basic Skills program (commonly referred to as

18 JOBS) authorized under title IV–F of the Social Se19 curity Act and programs authorized under the Carl

20 Perkins Vocational and Applied Technology Edu21 cation Act will participate in the one-stop career

22 centers.

23 (4) The extent to which a State has already im24 plemented the components of the one-stop career

25 center system described in part A.
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1 (5) The proportion of population of the State

2 that is covered by the one-stop service areas that

3 have agreed to immediately implement the one-stop

4 career center system.

5 (6) The extent to which a State demonstrates

6 a commitment to ensuring that the one-stop career

7 center operations in the State will enhance access to

8 the services described in section 314(a) through sup9 plementary methods such as kiosks based in shop10 ping centers, libraries, community colleges and other

11 community organizations, and through personal tele12 phones or computer lines.

13 (d) REVIEW OF APPLICATIONS.—The Secretary shall

14 determine whether to approve the State’s plan, and, if

15 such determination is affirmative, further determine

16 whether to take one or a combination of the following ac17 tions:

18 (1) Award an implementation grant.

19 (2) Approve the State’s request, if any, for a

20 waiver in accordance with the procedures in section

21 333 of this Act.

22 (3) Inform the State of the opportunity to

23 apply for further development funds, except that fur24 ther development funds may not be awarded to a

25 State that receives an implementation grant.
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1 (e) LIMITATION.—No funds provided pursuant to a

2 grant under this section may be expended to construct new

3 buildings.

4 (f) DURATION OF GRANTS.—Grants awarded under

5 this section shall be for a one-year period and shall be

6 renewable for each of the two succeeding fiscal years if

7 the Secretary determines that the State is making satis8 factory progress in the implementation of the Statewide

9 one-stop career center plan.

10 SEC. 333. WAIVER OF FEDERAL STATUTORY AND REGU11 LATORY REQUIREMENTS.

12 (a) STATE REQUEST FOR WAIVER.—A State may, at

13 any point during the development or implementation of

14 a one-stop career center system, request a waiver of one

15 or more statutory or regulatory provisions from the Sec16 retary in order to carry out the purposes of this title.

17 (b) WAIVER CRITERIA.—(1) Except as provided in

18 subsection (d), the Secretary may waive any requirement

19 of any statute listed in subsection (c)(1) or regulations

20 issued under such statute, or, with the concurrence of the

21 Director of the Office of Management and Budget, any

22 circular listed in subsection (c)(2) or regulations issued

23 under such circular, for any State that requests such a

24 waiver—
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1 (A) if such State submits a plan for a com2 prehensive, Statewide one-stop career center system

3 that—

4 (i) either—

5 (I) includes the components described

6 in part A; or

7 (II) while not including all of the com8 ponents described in part A, demonstrates

9 that such one-stop system will substan10 tially achieve the objectives of this title;

11 and

12 (ii) includes such other information as the

13 Secretary may reasonably require, such as the

14 information required under a State plan pursu15 ant to section 332(b)(3);

16 (B) if, and only to the extent that, the Sec17 retary determines that such requirement impedes the

18 ability of the State to carry out the purpose of this

19 title;

20 (C) if the State waives, or agrees to waive, simi21 lar requirements of State law; and

22 (D) if the State—

23 (i) has provided a notice and an oppor24 tunity for the State council or State Human

25 Resource Investment Council and other inter-
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1 ested entities and individuals to comment on

2 the State’s proposal to seek a waiver; and

3 (ii) has submitted the comments required

4 pursuant to clause (i) to the Secretary

5 (2) The Secretary shall act promptly on any request

6 submitted pursuant to paragraph (1).

7 (3) Each waiver approved pursuant to this subsection

8 shall be for a period not to exceed four years, except that

9 the Secretary may extend such period if the Secretary de10 termines that the waiver has been effective in enabling the

11 State to carry out the purposes of this title.

12 (c) INCLUDED PROGRAMS.—

13 (1) STATUTES.—The statutes subject to the

14 waiver authority of this section are as follows:

15 (A) Title I of this Act.

16 (B) The Job Training Partnership Act.

17 (C) The Wagner-Peyser Act.

18 (D) Title V of the Older Americans Act.

19 (E) Title III of the Social Security Act.

20 (F) Chapter 41 of title 38, United States

21 Code.

22 (2) CIRCULARS AND RELATED REGULATIONS.—

23 The following circulars promulgated by the Office of

24 Management and Budget subject to the waiver au25 thority of this section are as follows:
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1 (A) A–87, relating to cost principles for

2 State and local governments.

3 (B) A–102, relating to grants and coopera4 tive agreements with State and local govern5 ments.

6 (C) A–122, relating to non-profit organiza7 tions.

8 (D) 29 CFR 97, uniform administrative

9 regulations for grants and cooperative agree10 ments to State and local governments.

11 (d) WAIVERS NOT AUTHORIZED.—The Secretary of

12 Labor may not waive any statutory or regulatory require13 ment of the programs listed in subsection (b) relating to—

14 (1) the basic purposes or goals of the affected

15 programs;

16 (2) maintenance of effort;

17 (3) the formula allocation of funds under the

18 affected programs;

19 (4) the eligibility of an individual for participa20 tion in the affected programs;

21 (5) public health or safety, labor standards,

22 civil rights, occupational safety and health, or envi23 ronmental protection; or

24 (6) prohibitions or restrictions relating to the

25 construction of buildings or facilities.
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1 (e) TERMINATION OF WAIVERS.—The Secretary shall

2 periodically review the performance of any State for which

3 the Secretary has granted a waiver and shall terminate

4 the waiver under this section if the Secretary determines

5 that the performance of the State affected by the waiver

6 has been inadequate to justify a continuation of the waiv7 er, or the State fails to waive similar requirements of State

8 law as required or agreed to in accord with subsection

9 (b)(1)(C).

10 (f) PLAN FOR GENERAL WAIVER OF CIRCULAR PRO11 VISIONS.—

12 (1) DEVELOPMENT OF PLAN.—If the Secretary

13 determines there is sufficient information available,

14 based on applications received pursuant to this sec15 tion or other information, to identify provisions of

16 the circulars or related regulations listed in sub17 section (c)(2) that would consistently impede the im18 plementation of a one-stop career center system, the

19 Secretary shall submit a plan to the Director of the

20 Office of Management and Budget to authorize the

21 Secretary to grant a general waiver of such provi22 sions for areas implementing one-stop career center

23 systems.

24 (2) APPROVAL OF PLAN.—The Director of the

25 Office of Management and Budget may approve the
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1 plan submitted pursuant to paragraph (1) and au2 thorize the Secretary to grant general waivers of the

3 provisions of the circulars and related regulations in

4 accordance with such plan if the Director determines

5 such plan would not jeopardize the integrity of Fed6 eral funds and would be consistent with the objec7 tives of this title.

8 SEC. 334. POOLING OF ADMINISTRATIVE RESOURCES.

9 (a) SUBMISSION OF PLAN.—

10 (1) IN GENERAL.—At any point in the imple11 mentation of a one-stop career center system, a

12 State may, on behalf of one or more one-stop service

13 areas in the State, submit a plan to the Secretary

14 for the pooling of administrative funds available to

15 such area under two or more of the programs de16 scribed in section 315(a).

17 (2) COMPONENTS OF POOLING.—Under a plan

18 submitted pursuant to paragraph (1), each partici19 pating program described in section 315(a) may pro20 pose to transfer administrative funds to the one-stop

21 career center system and to allocate the amount

22 transferred to the costs of administration under such

23 program at the time of such transfer. Pursuant to

24 such plan, further allocation of the expenditure of

25 such funds to the participating program shall not be
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1 required subsequent to the transfer of the funds to

2 the one-stop career center system. Administrative

3 funds that are transferred under such plan shall

4 only be expended for the costs of administering al5 lowable activities under the one-stop career center

6 system.

7 (b) APPROVAL OF PLAN.—Notwithstanding section

8 1301 of title 31, United States Code, or any other provi9 sion of law, the Secretary may approve a plan for the pool10 ing of administrative funds submitted pursuant to sub11 section (a) if the Secretary determines such plan would

12 not jeopardize the administration of the participating pro13 grams transferring such funds and would facilitate the im14 plementation of the one-stop career center system. After

15 approval of such plan, the Secretary shall regularly review

16 the performance of the one-stop service areas operating

17 under such plans and shall rescind such approval if the

18 Secretary determines that the performance of the one-stop

19 service area has been inadequate to justify continuation

20 of the plan or there has been a significant adverse effect

21 on the participating programs.

22 (c) SESA REAL PROPERTY.—

23 (1) IN GENERAL.—Upon the approval of the

24 Governor, real property in which, as of July 1, 1995,

25 equity has resulted from funds provided under title
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1 III of the Social Security Act, section 903(c) of the

2 Social Security Act (commonly referred to as the

3 Reed Act), or the Wagner-Peyser Act, may be used

4 for the purposes of a one-stop career center.

5 (2) LIMITATION.—Unless otherwise provided in

6 a plan approved pursuant to subsection (b), subse7 quent to the commencement of the use of the prop8 erty described in paragraph (1) for the purposes of

9 a one-stop career center, funds provided under the

10 provisions of law described in paragraph (1) may

11 only be used to acquire further equity in such prop12 erty, or to pay operating and maintenance expenses

13 relating to such property, in proportion to the extent

14 of the use of such property attributable to the activi15 ties authorized under such provisions of law.

16 PART C—ADDITIONAL ACTIVITIES IN SUPPORT

17 OF ONE-STOP CAREER CENTER SYSTEMS

18 SEC. 351. CUSTOMER SERVICE COMPACT.

19 The Secretary shall establish a process with each

20 State implementing a one-stop career center system under

21 this title, which shall include an annual meeting, to pro22 mote the development of a customer service compact

23 among the parties administering such system. Such com24 pact shall include an informal agreement between the Sec-
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1 retary, Governor, each workforce investment board, and

2 each one-stop career center relating to—

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

4 the administration of the system;

5 (2) the respective roles and responsibilities of

6 each party in enhancing the provision of services to

7 participants, including ensuring that such services

8 are tailored to the particular needs of participants in

9 each local area;

10 (3) methods for ensuring that the satisfaction

11 of participants with the services received is a pri12 mary consideration in the administration of the sys13 tem; and

14 (4) such other matters as the parties determine

15 are appropriate.

16 SEC. 352. ADDITIONAL STATE RESPONSIBILITIES.

17 (a) IN GENERAL.—Each State implementing a one18 stop career center system under this title shall be respon19 sible for developing and operating administrative and

20 management systems that promote the effective operation

21 of the one-stop career center system.

22 (b) MONITORING.—Each State implementing a one23 stop career center system under this title shall monitor

24 the compliance of workforce investment boards within the

25 State with the requirements of this title.
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1 (c) TECHNICAL ASSISTANCE.—Each State imple2 menting a one-stop career center system under this title

3 shall provide such technical assistance as deemed nec4 essary to assist the workforce investment boards to carry

5 out their responsibilities under this title.

6 SEC. 353. ADDITIONAL FEDERAL RESPONSIBILITIES.

7 (a) OVERSIGHT.—The Secretary is authorized to

8 monitor all recipients of financial assistance under this

9 title to determine whether they are complying with the

10 provisions of this title.

11 (b) CAPACITY BUILDING AND TECHNICAL ASSIST12 ANCE.—The Secretary shall provide staff training and

13 technical assistance to States, workforce investment

14 boards, one-stop career centers, communities, business

15 and labor organizations, service providers, industry con16 sortia, and other entities, to enhance their capacity to de17 velop and implement effective one-stop career center sys18 tems. Such activities shall be integrated with the activities

19 of the Capacity Building and Information Dissemination

20 Network established under section 453 of the Job Train21 ing Partnership Act.

22 (c) NATIONAL LOGO.—The Secretary shall develop a

23 national logo and name for the purposes of identifying all

24 one-stop career centers as part of a nationwide workforce

25 security system. The purpose of this national identification
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1 shall be to enable individuals to more readily identify and

2 access one-stop career centers in any State in any location.

3 (d) EVALUATION.—

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

5 for the continuing evaluation of programs conducted

6 under this title, including the cost-effectiveness of

7 programs in achieving the purposes of this title.

8 (2) TECHNIQUES.—

9 (A) METHODS.—Evaluations conducted

10 under paragraph (1) shall utilize recognized

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

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

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

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

21 delivery systems used by the various programs.
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1 PART D—EFFECTVE DATE

2 SEC. 371. EFFECTIVE DATE.

3 (a) IN GENERAL.—Except as provided in subsection

4 (b), the provisions of this title shall take effect on July

5 1, 1995.

6 (b) PERFORMANCE STANDARDS.—The performance

7 standards established pursuant to section 317(a) shall

8 take effect on July 1, 1996.

9 TITLE IV—NATIONAL LABOR MARKET

10 INFORMATION SYSTEM

11 SEC. 401. PURPOSE.

12 The purpose of this title is to provide for the develop13 ment of a national labor market information system that

14 will provide locally-based, accurate, up-to-date, easily ac15 cessible, user-friendly labor market information, includ16 ing—

17 (1) comprehensive information on job openings,

18 labor supply, occupational trends, current and pro19 jected wage rates by occupation, skill requirements,

20 and the location of and performance of programs de21 signed to provide requisite skills; and

22 (2) labor market data necessary to assist public

23 officials, economic development planners, education

24 planners, and public and private training entities in

25 the effective allocation of resources.
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1 SEC. 402. NATIONAL STRATEGY.

2 (a) IN GENERAL.—The Secretary shall develop, in co3 ordination with other Federal, State, and local entities, a

4 strategy to establish a nationwide system of local labor

5 market information that accomplishes the purposes de6 scribed in section 401 and carries out the activities de7 scribed in sections 403 and 404. In addition, such strategy

8 shall be designed to fulfill the labor market information

9 requirements of the Job Training Partnership Act, title

10 I of this Act, the Wagner-Peyser Act, the School-to-Work

11 Opportunities Act, the Carl Perkins Vocational and Ap12 plied Technology Act, and other appropriate Federal pro13 grams.

14 (b) IMPLEMENTATION.—In implementing the strat15 egy described in subsection (a), the Secretary is authorized

16 to enter into contracts and intergovernmental cooperative

17 agreements, award grants, and foster the creation of pub18 lic-private partnerships, using funds authorized under this

19 title and funds otherwise available for such purposes. In

20 addition, the Secretary may conduct research and dem21 onstration projects to assist in such implementation.

22 SEC. 403. COMPONENTS OF SYSTEM.

23 (a) IN GENERAL.—The Secretary, in cooperation

24 with Federal, State, and local entities, and public-private

25 partnerships, shall develop a national labor market infor-
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1 mation system that makes available the following informa2 tion—

3 (1) information from both public and private

4 sources on the local economy, including current em5 ployment opportunities and trends by industry and

6 occupation;

7 (2) automated listings of job openings and job

8 candidates in the local, State, and national labor

9 market;

10 (3) growth projections by industry and growth

11 and replacement need projections by occupation and

12 occupational cluster for national, state and local

13 labor markets;

14 (4) current supply of labor available with spe15 cific occupational skills and experience including cur16 rent workers, job seekers and training completers;

17 (5) automated screening systems to permit easy

18 determination of candidate eligibility for funding and

19 other assistance in job training, job search, income

20 support, supportive services and other reemployment

21 services;

22 (6) consumer reports on local education and

23 training providers including student satisfaction with

24 programs, employer satisfaction with graduates,
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1 placement rates, wages at placement, and other ele2 ments of program quality;

3 (7) results of customer satisfaction measures

4 for the career centers and one-stop career centers

5 and other providers of reemployment services;

6 (8) national, State, and substate profiles of in7 dustries, including skill requirements, general wage

8 and benefit information, and typical distributions of

9 occupations within the industry;

10 (9) profiles of industries in a local labor market

11 including nature of the work performed, skill and ex12 perience requirements, specific occupations, wage,

13 hour and benefit information, pattern of hiring, and

14 (10) automated occupational and career infor15 mation and exploration systems, which incorporate

16 local labor market information, employer or industry

17 profiles, listings of education, training and other re18 employment service providers including program

19 quality and customer satisfaction data, and available

20 automated listings of current openings.

21 (b) TECHNICAL STANDARDS.—The Secretary shall

22 promulgate standards necessary to promote efficient ex23 change of information between the local, State, and na24 tional levels, including such standards as may be required

25 to ensure that data are comparable. Such standards shall
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1 be designed to ensure that there is universal access to

2 local, state and national data. In issuing such technical

3 standards, the Secretary shall meet the requirements of

4 chapter 35 of title 44, United States Code, and insure co5 ordination with other appropriate Federal standards es6 tablished by the Bureau of Labor Statistics.

7 (c) CONSUMER REPORTS.—The Secretary, in con8 sultation with the Secretary of Education and other appro9 priate Federal agencies, and State and local governments,

10 shall set standards for the required reports and create a

11 mechanism for collection and dissemination of the

12 consumer reports described in subsection (a)(6).

13 (d) EVALUATION.—The Secretary shall provide for

14 the evaluation of the procedures, products and services

15 under this title, including their cost-effectiveness and the

16 level of customer satisfaction. Such evaluations may in17 clude analyses of the precision of estimates produced or

18 collected under this title; examination of the uses of the

19 data by job seekers, employers, educators, career coun20 selors, public and private training providers, economic de21 velopment planners, and public agencies and institutions;

22 the appropriateness of such uses; and the relative costs

23 and benefits of the data.
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1 SEC. 404. COORDINATION.

2 To ensure the appropriate coordination and integra3 tion of labor market information services nationwide, the

4 Secretary shall—

5 (1) coordinate the activities of Federal agencies

6 responsible for the collection and dissemination of

7 labor market information at the national, state and

8 local level; and

9 (2) ensure the appropriate dissemination of re10 sults from research studies and demonstration

11 projects, feedback from surveys of customer satisfac12 tion, education and training provider performance

13 data, and other relevant information that promotes

14 improvement in the quality of labor market informa15 tion.

16 SEC. 405. EFFECTIVE DATE.

17 The provisions of this title shall take effect on July

18 1, 1995.

19 TITLE V—REINVENTION LABS FOR JOB

20 TRAINING FOR THE ECONOMICALLY

21 DISADVANTAGED

22 SEC. 501. ESTABLISHMENT OF LABS.

23 Title II of the Job Training Partnership Act is

24 amended by adding at the end thereof the following new

25 part:
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1 ‘‘PART D—REINVENTION LABS

2 ‘‘SEC. 281. PURPOSE.

3 The purpose of this part is to—

4 ‘‘(1) encourage innovative program designs to

5 enhance the provision of services to and improve

6 labor market outcomes for economically disadvan7 taged youth and adults,

8 ‘‘(2) develop, through the initiative and partici9 pation of service delivery areas and States, knowl10 edge relating to effective approaches to providing

11 employment and training to the economically dis12 advantaged that may be used to benefit the pro13 grams conducted under this title; and

14 ‘‘(3) provide service delivery areas with in15 creased flexibility in the operation of job training

16 programs in exchange for higher levels of account17 ability for results.

18 ‘‘SEC. 282. APPLICATION FOR WAIVER OF FEDERAL RE19 QUIREMENTS.

20 ‘‘(a) IN GENERAL.—Any service delivery area or con21 sortia of service delivery areas desiring to obtain a waiver

22 of Federal statutory or regulatory requirements relating

23 to the programs conducted under parts A, B, or C of this

24 title shall submit, jointly with the Governor, an application

25 for such waiver at such time, in such manner, and contain-
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1 ing such information as the Secretary may reasonably re2 quire.

3 ‘‘(b) CONTENTS OF APPLICATION.—The application

4 for a waiver submitted pursuant to subsection (b) shall

5 include—

6 ‘‘(1) a plan for conducting a program or pro7 grams authorized under this title incorporating inno8 vative administrative, service delivery, and other pro9 gram design components,

10 ‘‘(2) the measurable goals and outcomes to be

11 achieved by the program;

12 ‘‘(3) a description of the statutory or regulatory

13 requirements under titles I and II of this Act that

14 would be waived and how such requirements would

15 impede the implementation of the plan described in

16 paragraph (1);

17 ‘‘(4) assurances that the service delivery area

18 and the State will participate in a rigorous evalua19 tion to determine whether the goals and outcomes

20 described in paragraph (2) have been achieved; and

21 ‘‘(5) such other components and information as

22 the Secretary determines are appropriate.

23 ‘‘SEC. 283. WAIVERS AUTHORIZED.

24 ‘‘(a) IN GENERAL.—Except as provided in subsection

25 (b), the Secretary may, pursuant to an application submit-
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1 ted in accordance with section 282, waive statutory or reg2 ulatory requirements relating to title I and parts A, B,

3 and C of this title if—

4 ‘‘(1) the Secretary determines that such re5 quirements would impede the ability of the service

6 delivery area to carry out the plan described in sec7 tion 282(b)(1) and achieving the outcomes described

8 in the plan,

9 ‘‘(2) the service delivery area and the State—

10 ‘‘(A) have provided a notice and oppor11 tunity for interested entities and individuals in

12 the State to comment on the application; and

13 ‘‘(B) have submitted to the Secretary the

14 comments received pursuant to subparagraph

15 (A); and

16 ‘‘(3) the Secretary approves the plan described

17 in the application.

18 ‘‘(b) WAIVERS NOT AUTHORIZED.—The Secretary

19 may not waive any statutory or regulatory requirement re20 lating to title I or parts A, B, or C of this title regarding—

21 ‘‘(1) the basic purposes or goals of the affected

22 programs;

23 ‘‘(2) the formula allocation of funds;
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1 ‘‘(3) the eligibility for services as described in

2 sections 203, 254(b) and 263 (except for subsection

3 (f));

4 ‘‘(4) public health or safety, labor standards,

5 civil rights, occupational safety or health, or environ6 mental protection; or

7 ‘‘(5) prohibitions or restrictions relating to con8 struction of buildings or facilities.

9 ‘‘(c) ADDITIONAL LIMITATIONS.—

10 ‘‘(1) NUMBER OF AREAS PARTICIPATING.—The

11 Secretary may approve not more than seventy-five

12 applications nationwide to conduct the program de13 scribed under this part.

14 ‘‘(2) DURATION OF WAIVERS.—Each waiver

15 provided pursuant to this part shall be for a period

16 of not more than two years, except that the Sec17 retary may extend such period if the Secretary de18 termines that the waiver has been effective in ena19 bling the service delivery area to carry out the pur20 poses of this Act.

21 ‘‘(3) TERMINATION OF WAIVERS.—The Sec22 retary shall periodically review the performance of

23 any service delivery area for which the Secretary has

24 granted a waiver and shall terminate the waiver

25 under this section if the Secretary determines that
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1 the performance of the service delivery area affected

2 by the waiver has been inadequate to justify a con3 tinuation of the waiver.

4 ‘‘(4) SUNSET.—No waivers may be approved or

5 remain in effect under this part after the date that

6 is four years after the date of enactment of the Re7 employment Act of 1994.

8 ‘‘SEC. 284. TECHNICAL ASSISTANCE, EVALUATION AND RE9 PORT.

10 ‘‘(a) TECHNICAL ASSISTANCE.—The Secretary may

11 provide appropriate technical assistance to service delivery

12 areas, States, and service providers in the development

13 and implementation of programs under this part.

14 ‘‘(b) EVALUATION.—

15 ‘‘(1) IN GENERAL.—The Secretary shall provide

16 for the continuing evaluation of programs conducted

17 under this part, including the cost-effectiveness of

18 programs in achieving the purpose of this part.

19 ‘‘(2) TECHNIQUES.—

20 ‘‘(A) METHODS.—Evaluations conducted

21 under paragraph (1) shall utilize recognized

22 statistical methods and techniques of the behav23 ioral and social sciences, including methodolo24 gies that control for self-selection, where indi25 cated.
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1 ‘‘(B) ANALYSIS.—Such evaluations may in2 clude cost benefit analyses of programs, and

3 analyses of the impact of the programs on par4 ticipants and the community, the extent to

5 which programs meet the needs of various de6 mographic groups, and the effectiveness of the

7 delivery systems used by the various programs.

8 ‘‘(c) REPORT.—Not later than five years after the

9 date of enactment of the Reemployment Act of 1994, the

10 Secretary shall submit a report to the Congress relating

11 to the evaluation conducted pursuant to subsection (a) and

12 containing such recommendations as the Secretary deter13 mines are appropriate.’’.

14 SEC. 502. MODIFICATION OF TUITION DEFINITION.

15 Subparagraph (B) of section 141(d)(3) of the Job

16 Training Partnership Act is amended to read as follows:

17 ‘‘(B) Tuition charges for training or edu18 cation provided by an educational institution,

19 including an institution of higher education (as

20 defined in section 1201(a) of the Higher Edu21 cation Act of 1965), a proprietary institution of

22 higher education (as defined in section 481(b)

23 of such Act), and a postsecondary vocational in24 stitution (as defined in section 481(c) of such

25 Act) that are not more than the charges for
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1 such training or education made available to

2 the general public, do not require a breakdown

3 of cost components.’’.

4 SEC. 503. EFFECTIVE DATE AND SUNSET.

5 (a) REINVENTION LAB.—The provisions of section

6 501, and the amendments made by such section, shall take

7 effect on the date of enactment of this Act and shall termi8 nate on the date that is five years after the date of enact9 ment of this Act.

10 (b) TUITION DEFINITION.—The provisions of section

11 502 and the amendments made by such section, shall take

12 effect on the date of enactment of this Act.

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S 1951 PCS——5

S 1951 PCS——6

S 1951 PCS——7

S 1951 PCS——8

S 1951 PCS——9

S 1951 PCS——10

S 1951 PCS——11

S 1951 PCS——12

S 1951 PCS——13

S 1951 PCS——14
243

S 1951 PCS

S 1951 PCS——15

S 1951 PCS——16