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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3599 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3599

 To streamline and address overlap in the Federal workforce investment 
    system, steer Federal training dollars toward skills needed by 
  industry, establish incentives for accountability through a Pay for 
   Performance pilot program, and provide new access to the National 
 Directory of New Hires, to measure performance and better connect the 
              unemployed to jobs, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 20, 2012

Mr. Portman (for himself and Mr. Bennet) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
 To streamline and address overlap in the Federal workforce investment 
    system, steer Federal training dollars toward skills needed by 
  industry, establish incentives for accountability through a Pay for 
   Performance pilot program, and provide new access to the National 
 Directory of New Hires, to measure performance and better connect the 
              unemployed to jobs, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Careers through Responsive, 
Efficient, and Effective Retraining Act.''.

SEC. 2. STEERING FEDERAL TRAINING DOLLARS TOWARD SKILLS NEEDED BY 
              INDUSTRY.

    (a) Definitions.--Section 101 of the Workforce Investment Act of 
1998 (29 U.S.C. 2801) is amended by adding at the end the following:
            ``(54) Credential.--
                    ``(A) Industry-recognized.--The term `industry-
                recognized', used with respect to a credential, means a 
                credential that is sought or accepted by employers 
                within the industry sector involved as recognized, 
                preferred, or required for recruitment, screening, 
                hiring, or advancement.
                    ``(B) Nationally portable.--The term `nationally 
                portable,' used with respect to credential, means a 
                credential that is sought or accepted as described in 
                subparagraph (A) across multiple States.
                    ``(C) Regionally relevant.--The term `regionally 
                relevant,' used with respect to a credential, means a 
                credential that is determined by the Governor and the 
                head of the State workforce agency to be sought or 
                accepted as described in subparagraph (A) in that State 
                and neighboring States.
            ``(55) State workforce agency.--The term `State workforce 
        agency' means the lead State agency with responsibility for 
        workforce investment activities carried out under subtitle 
        B.''.
    (b) Youth Activities.--Section 129(c)(1)(C) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2854(c)(1)(C)) is amended--
            (1) by redesignating clauses (ii) through (iv) as clauses 
        (iii) through (v), respectively; and
            (2) inserting after clause (i) the following:
                            ``(ii) training, with priority 
                        consideration given, after consultation with 
                        the Governor and the head of the State 
                        workforce agency and beginning not later than 6 
                        months after the date of enactment of the 
                        Careers through Responsive, Efficient, and 
                        Effective Retraining Act, to programs that lead 
                        to an industry-recognized, nationally portable, 
                        and regionally relevant credential, if the 
                        local board determines that such programs are 
                        available and appropriate;''.
    (c) General Employment and Training Activities.--Section 
134(d)(4)(F) of the Workforce Investment Act of 1998 (29 U.S.C. 
2864(d)(4)(F)) is amended by adding at the end the following:
                            ``(iv) Priority for programs that provide 
                        an industry-recognized, nationally portable, 
                        and regionally relevant credential.--In 
                        selecting and approving programs of training 
                        services under this section, a one-stop 
                        operator and employees of a one-stop center 
                        referred to in subsection (c) shall, after 
                        consultation with the Governor and the head of 
                        the State workforce agency and beginning not 
                        later than 6 months after the date of enactment 
                        of the Careers through Responsive, Efficient, 
                        and Effective Retraining Act, give priority 
                        consideration to programs (approved by the 
                        appropriate State agency and local board in 
                        conjunction with section 122) that lead to an 
                        industry-recognized, nationally portable, and 
                        regionally relevant credential.
                            ``(v) Rule of construction.--Nothing in 
                        clause (iv) or section 129(c)(1)(C) shall be 
                        construed to require an entity with 
                        responsibility for selecting or approving a 
                        workforce investment activities program to 
                        select a program that leads to a credential 
                        specified in clause (iv).''.
    (d) State Administration.--
            (1) General employment and training activities.--Section 
        122(b)(2)(D) of the Workforce Investment Act of 1998 (29 U.S.C. 
        2842(b)(2)(D)) is amended--
                    (A) in clause (ii), by striking ``and'' at the end;
                    (B) in clause (iii), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(iv) in the case of a provider of a 
                        program of training services that leads to an 
                        industry-recognized, nationally portable, and 
                        regionally relevant credential, that the 
                        program leading to the credential meets such 
                        quality criteria as the Governor shall 
                        establish not later than 6 months after the 
                        date of enactment of the Careers through 
                        Responsive, Efficient, and Effective Retraining 
                        Act.''.
            (2) Youth activities.--Section 123 of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2843) is amended by inserting 
        ``(including such quality criteria as the Governor shall 
        establish not later than 6 months after the date of enactment 
        of the Careers through Responsive, Efficient, and Effective 
        Retraining Act for a training program that leads to an 
        industry-recognized, nationally portable, and regionally 
        relevant credential)'' after ``plan''.
    (e) Report on Industry-Recognized Credentials.--Section 122 of the 
Workforce Investment Act of 1998 (29 U.S.C. 2842) is amended by adding 
at the end the following:
    ``(j) Report on Industry-Recognized Credentials.--
            ``(1) Data collection.--Each State shall submit to the 
        Secretary data on programs determined, under section 
        129(c)(1)(C) or 134(d)(4)(F)(iv), to lead to industry-
        recognized and regionally relevant credentials, and on the need 
        of that State for such credentials.
            ``(2) Report.--Based on data provided by the States under 
        paragraph (1), the Secretary shall annually compile the data 
        and prepare a report identifying industry-recognized 
        credentials that are regionally relevant or nationally 
        portable. The report shall include information on the needs of 
        each State and of the Nation for such credentials.
            ``(3) Availability.--The Secretary shall make the report 
        available on a Web site.
            ``(4) Rule of construction.--Nothing in this subsection 
        shall be construed as an official endorsement of a credential 
        by the Department of Labor.''.

SEC. 3. ESTABLISHING INCENTIVES FOR ACCOUNTABILITY.

    (a) Program.--Subtitle B of title I of the Workforce Investment Act 
of 1998 is amended by inserting after section 112 (29 U.S.C. 2822) the 
following:

``SEC. 112A. PAY FOR PERFORMANCE PILOT PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Careers through Responsive, Efficient, and 
        Effective Retraining Act, the Secretary of Labor shall 
        establish a Pay for Performance pilot program. The Secretary 
        shall select not fewer than 5 States, including at least 1 
        rural State, to participate in the pilot program by carrying 
        out a Pay for Performance State program.
            ``(2) Voluntary nature of program.--Nothing in this 
        subtitle shall be construed to require a State to participate 
        in the pilot program without the State's consent.
            ``(3) Definition.--In this subsection, the term `rural 
        State' means a State that has a population density of 52 or 
        fewer persons per square mile, or a State in which the largest 
        county has fewer than 150,000 people, as determined on the 
        basis of the most recent decennial census of population 
        conducted pursuant to section 141 of title 13, United States 
        Code.
    ``(b) Submission of Plans.--To be eligible to participate in the 
pilot program, a State shall submit to the Secretary and obtain 
approval of a Pay for Performance plan described in section 112(e) as a 
supplement to the State plan described in section 112. The State shall 
submit the supplement in accordance with such process as the Secretary 
may specify after consultation with States.
    ``(c) Implementation.--
            ``(1) In general.--In a State that carries out a Pay for 
        Performance State program, the State shall reserve and the 
        local areas shall use the amount described in paragraph (2) to 
        provide a portion of the training services authorized under 
        section 134(d)(4) (referred to in this section as `training 
        services') under the State's Pay for Performance plan, in 
        addition to the other requirements of this Act.
            ``(2) Amount.--The amount reserved under paragraph (1) 
        shall be--
                    ``(A) a portion of not more than 25 percent, as 
                determined by the State, of the funds available to be 
                allocated under section 133(b) within the State, and 
                estimated by the State to be available for training 
                services, for the fiscal year involved; and
                    ``(B) a portion of not more than 17.5 percent, as 
                determined by the State, of the grant funds awarded 
                under section 211(b) for the State (which portion shall 
                be taken from the funds described in paragraphs (2) and 
                (3) of section 222(a)) for the fiscal year involved.
    ``(d) Training and Technical Assistance.--The Secretary shall 
provide, by grant or contract, training and technical assistance to 
States, and local areas in States, carrying out a Pay for Performance 
State program.
    ``(e) State Reports.--Each State carrying out a Pay for Performance 
State program shall annually prepare and submit to the Secretary a 
report regarding the performance of the State on the outcome measures 
described in section 112(e)(2)(C).
    ``(f) Evaluations.--
            ``(1) In general.--Not later than 1 year after the 
        conclusion of the transition period described in section 
        112(e)(2)(H), the Secretary shall enter into an arrangement for 
        an entity to carry out an independent evaluation of Pay for 
        Performance State programs carried out under this subtitle.
            ``(2) Contents.--For each Pay for Performance State 
        program, the entity shall evaluate the program design and 
        performance on the outcome measures, and estimate public 
        returns on investment, including such returns as reduced 
        dependence on public assistance, reduced unemployment, and 
        increased tax revenue paid by participants exiting the program 
        for employment.
            ``(3) Report.--The entity shall prepare a report containing 
        the results of the evaluation, and submit the report to the 
        Secretary, not later than 18 months after the conclusion of the 
        transition period.
    ``(g) Report to Congress.--Not later than 3 months after the 
submission of the report described in subsection (f)(3), the Secretary 
shall prepare and submit to Congress a report that contains the results 
of the evaluations described in subsection (f) and recommendations. The 
recommendation shall include the Secretary's opinions concerning 
whether the pilot program should be continued and whether the pay for 
performance model should be expanded within this Act, and related 
considerations.
    ``(h) Performance.--
            ``(1) In general.--Except as provided in paragraph (2), 
        section 136 of this Act shall not apply to a State, or a local 
        area in a State, with respect to activities carried out through 
        a Pay for Performance State program.
            ``(2) Fiscal and management accountability information 
        systems.--Section 136(f)(1) shall apply with respect to 
        reporting and monitoring of the use of funds under this section 
        for activities described in paragraph (1).''.
    (b) Pay for Performance Plan.--Section 112 of the Workforce 
Investment Act of 1998 (29 U.S.C. 2822) is amended by adding at the end 
the following:
    ``(e) Pay for Performance Plans.--
            ``(1) In general.--For a State seeking to carry out a Pay 
        for Performance State program (referred to in this subsection 
        as a `State program') under the pilot program described in 
        section 112A, the State plan shall include a plan supplement, 
        consisting of a Pay for Performance plan developed by the State 
        and local areas in the State.
            ``(2) Contents.--The Pay for Performance plan shall, with 
        respect to the State program--
                    ``(A) provide for technical support to local areas 
                and providers in order to carry out a pay for 
                performance model, which shall at a minimum provide 
                assistance with data collection and data entry 
                requirements;
                    ``(B) specify target populations who are eligible 
                to receive training services authorized under section 
                134(d)(4) (referred to in this subsection as `training 
                services') through the State program, with appropriate 
                consideration of and participation targets for special 
                participant populations that face multiple barriers to 
                employment, as defined in section 134(d)(4)(G)(iv);
                    ``(C) specify employment placement, employment 
                retention, and earnings outcome measures and timetables 
                for each target population;
                    ``(D) provide for curricula in terms of 
                competencies required for education and career 
                advancement that are, where feasible, tied to industry-
                recognized credentials and related standards, or State 
                licensing requirements;
                    ``(E) describe how the State or local areas will 
                provide information to participants in the State 
                program about appropriate support services, where 
                feasible, including career assessment and counseling, 
                case management, child care, transportation, financial 
                aid, and job placement services;
                    ``(F) specify a fixed amount that, except as 
                provided in subparagraph (H), local areas in the State 
                will pay to providers of training services in the State 
                program, for each eligible participant who achieves the 
                applicable outcome measures, according to the 
                timetables described in subparagraph (C), which 
                amount--
                            ``(i) shall represent 115 percent of the 
                        historical cost of providing training services 
                        to a participant under this subtitle, as 
                        established by the State or local area 
                        involved; and
                            ``(ii) may vary by target population;
                    ``(G) provide assurances that--
                            ``(i) no funds reserved for the State 
                        program will be paid to a provider for a 
                        participant who does not achieve the outcome 
                        measures according to the timetables; and
                            ``(ii) each local area in the State will 
                        reallocate funds not paid to a provider, 
                        because the achievement described in clause (i) 
                        did not occur, for further activities under the 
                        State program in the local area; and
                    ``(H) specify a transition period of not more than 
                1 year during which the reserved funds may be paid to 
                providers of training services based on the previous 
                year's performance on the core indicators of 
                performance described in 136(b)(2)(A)(i), in order to 
                enable the providers to begin to provide services under 
                the State program and adjust to a pay for performance 
                model, including adjusting by--
                            ``(i) developing partnerships with local 
                        employers; and
                            ``(ii) seeking financial support and 
                        volunteer services from private sector sources.
            ``(3) Approval.--In determining whether to approve the plan 
        supplement, the Secretary shall consider the quality of the 
        data system the State will use to track performance on outcome 
        measures in carrying out a Pay for Performance plan.''.
    (c) Conforming Amendments.--
            (1) Use of funds.--Section 211(b)(2) of the Workforce 
        Investment Act of 1998 (20 U.S.C. 9211(b)(2)) is amended by 
        inserting ``or training services in accordance with section 
        112A(c)'' before the period at the end.
            (2) Funding.--Section 223(a) of the Workforce Investment 
        Act of 1998 (20 U.S.C. 9223(a)) is amended--
                    (A) by redesignating paragraph (8) as paragraph 
                (12), and moving that paragraph to the end of that 
                section 223(a); and
                    (B) by inserting after paragraph (7) the following:
            ``(8) Providing training services in accordance with 
        section 112A(c).''.

SEC. 4. PROVIDING A JOB TRAINING REORGANIZATION PLAN FOR THE FEDERAL 
              WORKFORCE INVESTMENT SYSTEM.

    (a) Definitions.--In this section:
            (1) Federal job training program.--The term ``Federal job 
        training program'' means any federally funded employment and 
        training program, including the programs identified in the 
        Government Accountability Office report.
            (2) Government accountability office report.--The term 
        ``Government Accountability Office report'' means the January 
        2011 report of the Government Accountability Office entitled 
        ``Multiple Employee and Training Programs: Providing 
        Information on Colocating Services and Consolidating 
        Administrative Structures Could Promote Efficiencies'' (GAO-11-
        92).
            (3) Individual with a barrier to employment.--The term 
        ``individual with a barrier to employment'' means a job seeker 
        who--
                    (A) is economically disadvantaged;
                    (B) has limited English proficiency;
                    (C) requires remedial education;
                    (D) is an older worker;
                    (E) is an individual who has completed a sentence 
                for a criminal offense; or
                    (F) has another barrier to employment, as defined 
                by the Director of the Office of Management and Budget.
    (b) Reorganization Plan.--
            (1) Preparation.--The Director of the Office of Management 
        and Budget (referred to in this section as the ``Director'') 
        shall prepare a plan to reorganize Federal job training 
        programs to increase their efficiency, integration, and 
        alignment. The plan shall include a proposal to decrease the 
        number of Federal job training programs without decreasing 
        services or accessibility to services for eligible job training 
        participants, including individuals with barriers to 
        employment. In preparing the plan, the Director shall 
        demonstrate that the Director considered the findings of the 
        Government Accountability Office report, and input from the 
        States, local workforce investment boards, businesses, 
        workforce advocates and community organizations, labor 
        organizations, and relevant education-related organizations.
            (2) Submission.--Not later than 12 months after the date of 
        enactment of this Act, the Director shall submit the 
        reorganization plan to the appropriate committees of Congress.

SEC. 5. USING THE NATIONAL DIRECTORY OF NEW HIRES INFORMATION TO ASSIST 
              IN ADMINISTRATION OF WORKFORCE INVESTMENT ACT PROGRAMS.

    Section 453(j) of the Social Security Act (42 U.S.C. 653(j)) is 
amended by adding at the end the following:
            ``(12) Information comparisons and disclosure to assist in 
        administration of workforce investment act programs.--
                    ``(A) In general.--If, for purposes of 
                administering a program of workforce investment 
                activities carried out under subtitle B of title I of 
                the Workforce Investment Act of 1998, a State agency 
                responsible for the administration of such program 
                transmits to the Secretary the names and social 
                security account numbers of individuals, the Secretary 
                shall disclose to such State agency information on such 
                individuals and their employers maintained in the 
                National Directory of New Hires, subject to this 
                paragraph.
                    ``(B) Condition on disclosure by the secretary.--
                The Secretary shall make a disclosure under 
                subparagraph (A) only to the extent that the Secretary 
                determines that the disclosure would not interfere with 
                the effective operation of the program under this part.
                    ``(C) Use and disclosure of information by state 
                agencies.--
                            ``(i) In general.--A State agency may not 
                        use or disclose information provided under this 
                        paragraph except for purposes of administering 
                        a program referred to in subparagraph (A) 
                        (including measuring performance under section 
                        136 of the Workforce Investment Act of 1998 and 
                        preparing reports under subsection (d) of such 
                        section, subject to this paragraph).
                            ``(ii) Information security.--The State 
                        agency shall have in effect data security and 
                        control policies that the Secretary finds 
                        adequate to ensure the security of information 
                        obtained under this paragraph and to ensure 
                        that access to such information is restricted 
                        to authorized persons for purposes of 
                        authorized uses and disclosures.
                            ``(iii) Penalty for misuse of 
                        information.--An officer or employee of the 
                        State agency who fails to comply with this 
                        subparagraph shall be subject to the sanctions 
                        under subsection (l)(2) to the same extent as 
                        if such officer or employee was an officer or 
                        employee of the United States.
                    ``(D) Procedural requirements.--State agencies 
                requesting information under this paragraph shall 
                adhere to uniform procedures established by the 
                Secretary governing information requests and data 
                matching under this paragraph.
                    ``(E) Waiver of requirement to reimburse costs.--
                Notwithstanding subsection (k)(3), a State agency shall 
                not be required to reimburse the Secretary for the 
                costs incurred by the Secretary in furnishing 
                information requested under this paragraph to the State 
                agency.''.
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