II

105TH CONGRESS

1ST SESSION S. 1186

To provide for education and training, and for other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 17, 1997

Mr. DEWINE (for himself, Mr. JEFFORDS, Mr. KENNEDY, and Mr.

WELLSTONE) introduced the following bill; which was read twice and referred to the Committee on Labor and Human Resources

A BILL

To provide for education and training, and for other

purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

5 ‘‘Workforce Investment Partnership Act of 1997’’.

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

7 as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

TITLE I—VOCATIONAL, TECHNOLOGICAL, AND TECH-PREP

EDUCATION

Sec. 101. Short title.
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Sec. 102. Findings and purpose.

Sec. 103. Voluntary selection and participation.

Subtitle A—Vocational Education

CHAPTER 1—FEDERAL PROVISIONS

Sec. 111. Reservations and State allotment.

Sec. 112. Performance measures and expected levels of performance.

Sec. 113. Assistance for the outlying areas.

Sec. 114. Indian and Hawaiian Native programs.

Sec. 115. Tribally controlled postsecondary vocational institutions.

Sec. 116. Incentive grants.

CHAPTER 2—STATE PROVISIONS

Sec. 121. State administration.

Sec. 122. State use of funds.

Sec. 123. State leadership activities.

Sec. 124. State plan.

CHAPTER 3—LOCAL PROVISIONS

Sec. 131. Distribution for secondary school vocational education.

Sec. 132. Distribution for postsecondary vocational education.

Sec. 133. Local activities.

Sec. 134. Local application.

Subtitle B—Tech-Prep Education

Sec. 151. Short title.

Sec. 152. Purposes.

Sec. 153. Definitions.

Sec. 154. Program authorized.

Sec. 155. Tech-prep education programs.

Sec. 156. Applications.

Sec. 157. Authorization of appropriations.

Subtitle C—General Provisions

Sec. 161. Administrative provisions.

Sec. 162. Evaluation, improvement, and accountability.

Sec. 163. National activities.

Sec. 164. National assessment of vocational education programs.

Sec. 165. National research center.

Sec. 166. Data systems.

Subtitle D—Authorization of Appropriations

Sec. 171. Authorization of appropriations.

Subtitle E—Repeal

Sec. 181. Repeal.

TITLE II—ADULT EDUCATION AND LITERACY

Sec. 201. Short title.

Sec. 202. Findings and purpose.
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Subtitle A—Adult Education and Literacy Programs

CHAPTER 1—FEDERAL PROVISIONS

Sec. 211. Reservation; grants to States; allotments.

Sec. 212. Performance measures and expected levels of performance.

Sec. 213. National leadership activities.

CHAPTER 2—STATE PROVISIONS

Sec. 221. State administration.

Sec. 222. State distribution of funds; State share.

Sec. 223. State leadership activities.

Sec. 224. State plan.

Sec. 225. Programs for corrections education and other institutionalized individuals.

CHAPTER 3—LOCAL PROVISIONS

Sec. 231. Grants and contracts for eligible providers.

Sec. 232. Local application.

Sec. 233. Local administrative cost limits.

CHAPTER 4—GENERAL PROVISIONS

Sec. 241. Administrative provisions.

Sec. 242. Priorities and preferences.

Sec. 243. Incentive grants.

Sec. 244. Evaluation, improvement, and accountability.

Sec. 245. National Institute for Literacy.

Sec. 246. Authorization of appropriations.

Subtitle B—Repeal

Sec. 251. Repeal.

TITLE III—WORKFORCE INVESTMENT AND RELATED ACTIVITIES

Subtitle A—Workforce Investment Activities

CHAPTER 1—ALLOTMENTS TO STATES FOR ADULT EMPLOYMENT AND

TRAINING ACTIVITIES, DISLOCATED WORKER EMPLOYMENT AND TRAINING

ACTIVITIES, AND YOUTH ACTIVITIES

Sec. 301. General authorization.

Sec. 302. State allotments.

Sec. 303. Statewide partnership.

Sec. 304. State plan.

CHAPTER 2—ALLOCATIONS TO LOCAL WORKFORCE INVESTMENT AREAS

Sec. 306. Within State allocations.

Sec. 307. Local workforce investment areas.

Sec. 308. Local workforce investment partnerships and youth partnerships.

Sec. 309. Local plan.

CHAPTER 3—WORKFORCE INVESTMENT ACTIVITIES AND PROVIDERS
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Sec. 311. Identification and oversight of one-stop partners and one-stop customer service center operators.

Sec. 312. Determination and identification of eligible providers of training services by program.

Sec. 313. Identification of eligible providers of youth activities.

Sec. 314. Statewide workforce investment activities.

Sec. 315. Local employment and training activities.

Sec. 316. Local youth activities.

CHAPTER 4—GENERAL PROVISIONS

Sec. 321. Accountability.

Sec. 322. Authorization of appropriations.

Subtitle B—Job Corps

Sec. 331. Purposes.

Sec. 332. Definitions.

Sec. 333. Establishment.

Sec. 334. Individuals eligible for the Job Corps.

Sec. 335. Recruitment, screening, selection, and assignment of enrollees.

Sec. 336. Enrollment.

Sec. 337. Job Corps centers.

Sec. 338. Program activities.

Sec. 339. Counseling and job placement.

Sec. 340. Support.

Sec. 341. Operating plan.

Sec. 342. Standards of conduct.

Sec. 343. Community participation.

Sec. 344. Industry councils.

Sec. 345. Advisory committees.

Sec. 346. Experimental, research, and demonstration projects.

Sec. 347. Application of provisions of Federal law.

Sec. 348. Special provisions.

Sec. 349. Management information.

Sec. 350. General provisions.

Sec. 351. Authorization of appropriations.

Subtitle C—National Programs

Sec. 361. Native American programs.

Sec. 362. Migrant and seasonal farmworker programs.

Sec. 363. Veterans’ workforce investment programs.

Sec. 364. Youth opportunity grants.

Sec. 365. Incentive grants.

Sec. 366. Technical assistance.

Sec. 367. Demonstration, pilot, multiservice, research, and multistate projects.

Sec. 368. Evaluations.

Sec. 369. National emergency grants.

Sec. 370. Authorization of appropriations.

Subtitle D—Administration

Sec. 371. Requirements and restrictions.

Sec. 372. Prompt allocation of funds.

Sec. 373. Monitoring.

Sec. 374. Fiscal controls; sanctions.
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Sec. 375. Reports; recordkeeping; investigations.

Sec. 376. Administrative adjudication.

Sec. 377. Judicial review.

Sec. 378. Nondiscrimination.

Sec. 379. Administrative provisions.

Sec. 380. State legislative authority.

Subtitle E—Repeals and Conforming Amendments

Sec. 391. Repeals.

Sec. 392. Conforming amendments.

Sec. 393. Effective dates.

TITLE IV—WORKFORCE INVESTMENT-RELATED ACTIVITIES

Subtitle A—Wagner-Peyser Act

Sec. 401. Definitions.

Sec. 402. Functions.

Sec. 403. Designation of State agencies.

Sec. 404. Appropriations.

Sec. 405. Disposition of allotted funds.

Sec. 406. State plans.

Sec. 407. Repeal of Federal Advisory Council.

Sec. 408. Regulations.

Sec. 409. Labor market information.

Sec. 410. Technical amendments.

Subtitle B—Linkages With Other Programs

Sec. 421. Trade Act of 1974.

Sec. 422. National Apprenticeship Act.

Sec. 423. Veterans’ employment programs.

Sec. 424. Older Americans Act of 1965.

TITLE V—GENERAL PROVISIONS

Sec. 501. State unified plans.

Sec. 502. Transition provisions.

Sec. 503. Effective date.

1 SEC. 2. DEFINITIONS.

2 In this Act:

3 (1) ADULT.—In paragraph (14) and title III,

4 the term ‘‘adult’’ means an individual who is age 22

5 or older.

6 (2) ADULT EDUCATION.—The term ‘‘adult edu7 cation’’ means services or instruction below the post8 secondary level for individuals—
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1 (A) who have attained 16 years of age or

2 who are beyond the age of compulsory school

3 attendance under State law;

4 (B) who are not enrolled in secondary

5 school; and

6 (C) who—

7 (i) lack sufficient mastery of basic

8 educational skills to enable the individuals

9 to function effectively in society;

10 (ii) do not possess a secondary school

11 diploma or its recognized equivalent; or

12 (iii) are unable to speak, read, or

13 write the English language.

14 (3) AREA VOCATIONAL EDUCATION SCHOOL.—

15 The term ‘‘area vocational education school’’

16 means—

17 (A) a specialized public secondary school

18 used exclusively or principally for the provision

19 of vocational education for individuals who seek

20 to study and prepare for entering the labor

21 market;

22 (B) the department of a public secondary

23 school exclusively or principally used for provid24 ing vocational education in not fewer than 5

25 different occupational fields to individuals who
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1 are available for study in preparation for enter2 ing the labor market;

3 (C) a technical institute or vocational

4 school used exclusively or principally for the

5 provision of vocational education to individuals

6 who have completed or left public secondary

7 school and who seek to study and prepare for

8 entering the labor market, if the institute or

9 school admits as regular students both individ10 uals who have completed public secondary

11 school and individuals who have left public sec12 ondary school; or

13 (D) the department or division of a junior

14 college, community college, or university operat15 ing under the policies of the eligible agency and

16 that provides vocational education in not fewer

17 than 5 different occupational fields leading to

18 immediate employment but not necessarily lead19 ing to a baccalaureate degree, if the department

20 or division admits as regular students both indi21 viduals who have completed public secondary

22 school and individuals who have left public sec23 ondary school.

24 (4) CHIEF ELECTED OFFICIAL.—The term

25 ‘‘chief elected official’’ means the chief elected execu-
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1 tive officer of a unit of general local government in

2 a local area.

3 (5) DISADVANTAGED ADULT.—In title III, and

4 except as provided in section 302, the term ‘‘dis5 advantaged adult’’ means an adult who is a low-in6 come individual.

7 (6) DISLOCATED WORKER.—The term ‘‘dis8 located worker’’ means an individual who—

9 (A)(i) has been terminated or laid off, or

10 who has received a notice of termination or lay11 off, from employment;

12 (ii)(I) is eligible for or has exhausted enti13 tlement to unemployment compensation; or

14 (II) has been employed for a duration suf15 ficient to demonstrate, to the appropriate entity

16 at a one-stop customer service center, attach17 ment to the workforce, but is not eligible for

18 unemployment compensation due to insufficient

19 earnings or having performed services for an

20 employer that were not covered under a State

21 unemployment compensation law; and

22 (iii) is unlikely to return to a previous in23 dustry or occupation;

24 (B)(i) has been terminated or laid off, or

25 has received a notice of termination or layoff,
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1 from employment as a result of any permanent

2 closure of, or any substantial layoff at, a plant,

3 facility, or enterprise;

4 (ii) is employed at a facility at which the

5 employer has made a general announcement

6 that such facility will close within 180 days; or

7 (iii) for purposes of eligibility to receive

8 services under title III other than training serv9 ices described in section 315(c)(3), intensive

10 services, or supportive services, is employed at

11 a facility at which the employer has made a

12 general announcement that such facility will

13 close;

14 (C) was self-employed (including employ15 ment as a farmer, a rancher, or a fisherman)

16 but is unemployed as a result of general eco17 nomic conditions in the community in which the

18 individual resides or because of natural disas19 ters; or

20 (D) is a displaced homemaker.

21 (7) DISPLACED HOMEMAKER.—The term ‘‘dis22 placed homemaker’’ means an individual who has

23 been providing unpaid services to family members in

24 the home and who—
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1 (A) has been dependent on the income of

2 another family member but is no longer sup3 ported by that income; and

4 (B) is unemployed or underemployed and

5 is experiencing difficulty in obtaining or up6 grading employment.

7 (8) ECONOMIC DEVELOPMENT AGENCIES.—The

8 term ‘‘economic development agencies’’ includes local

9 planning and zoning commissions or boards, commu10 nity development agencies, and other local agencies

11 and institutions responsible for regulating, promot12 ing, or assisting in local economic development.

13 (9) EDUCATIONAL SERVICE AGENCY.—The

14 term ‘‘educational service agency’’ means a regional

15 public multiservice agency authorized by State stat16 ute to develop and manage a service or program,

17 and provide the service or program to a local edu18 cational agency.

19 (10) ELEMENTARY SCHOOL; LOCAL EDU20 CATIONAL AGENCY.—The terms ‘‘elementary school’’

21 and ‘‘local educational agency’’ have the meanings

22 given the terms in section 14101 of the Elementary

23 and Secondary Education Act of 1965 (20 U.S.C.

24 8801).
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1 (11) ELIGIBLE AGENCY.—The term ‘‘eligible

2 agency’’ means—

3 (A) in the case of vocational education ac4 tivities or requirements described in title I—

5 (i) the individual, entity, or agency in

6 a State or an outlying area responsible for

7 administering or setting policy for voca8 tional education in the State or outlying

9 area, respectively, pursuant to the law of

10 the State or outlying area, respectively; or

11 (ii) if no individual, entity, or agency

12 is responsible for administering or setting

13 such policy pursuant to the law of the

14 State or outlying area, the individual, en15 tity, or agency in a State or outlying area,

16 respectively, responsible for administering

17 or setting policy for vocational education in

18 the State or outlying area, respectively, on

19 the date of enactment of the Workforce In20 vestment Partnership Act of 1997; and

21 (B) in the case of adult education and lit22 eracy activities or requirements described in

23 title II—

24 (i) the individual, entity, or agency in

25 a State or an outlying area responsible for
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1 administering or setting policy for adult

2 education and literacy in the State or out3 lying area, respectively, pursuant to the

4 law of the State or outlying area, respec5 tively; or

6 (ii) if no individual, entity, or agency

7 is responsible for administering or setting

8 such policy pursuant to the law of the

9 State or outlying area, the individual, en10 tity, or agency in a State or outlying area,

11 respectively, responsible for administering

12 or setting policy for adult education and

13 literacy in the State or outlying area, re14 spectively, on the date of enactment of the

15 Workforce Investment Partnership Act of

16 1997.

17 (12) ELIGIBLE INSTITUTION.—In title I, the

18 term ‘‘eligible institution’’ means—

19 (A) an institution of higher education;

20 (B) a local educational agency providing

21 education at the postsecondary level;

22 (C) an area vocational education school

23 providing education at the postsecondary level;

24 (D) a postsecondary educational institution

25 controlled by the Bureau of Indian Affairs or
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1 operated by or on behalf of any Indian tribe

2 that is eligible to contract with the Secretary of

3 the Interior for the administration of programs

4 under the Indian Self-Determination Act or the

5 Act of April 16, 1934 (48 Stat. 596; 25 U.S.C.

6 452 et seq.); and

7 (E) a consortium of 2 or more of the enti8 ties described in subparagraphs (A) through

9 (D).

10 (13) ELIGIBLE PROVIDER.—The term ‘‘eligible

11 provider’’—

12 (A) in title II, means—

13 (i) a local educational agency;

14 (ii) a community-based organization;

15 (iii) an institution of higher education;

16 (iv) a public or private nonprofit

17 agency;

18 (v) a consortium of such agencies, or19 ganizations, or institutions; or

20 (vi) a library; and

21 (B) in title III, used with respect to—

22 (i) training services (other than on23 the-job training), means a provider who is

24 identified in accordance with section 312;
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1 (ii) youth activities, means a provider

2 who is awarded a grant in accordance with

3 section 313; or

4 (iii) other workforce investment activi5 ties, means a public or private entity se6 lected to be responsible for such activities,

7 in accordance with subtitle A of title III,

8 such as a one-stop customer service center

9 operator designated or certified under sec10 tion 311.

11 (14) EMPLOYMENT AND TRAINING ACTIVITY.—

12 The term ‘‘employment and training activity’’ means

13 an activity described in section 314(b)(1) or sub14 section (c)(1) or (d) of section 315, carried out for

15 an adult or dislocated worker.

16 (15) ENGLISH LITERACY PROGRAM.—The term

17 ‘‘English literacy program’’ means a program of in18 struction designed to help individuals of limited

19 English proficiency achieve competence in the Eng20 lish language.

21 (16) GOVERNOR.—The term ‘‘Governor’’ means

22 the chief executive officer of a State.

23 (17) INDIVIDUAL WITH A DISABILITY.—

24 (A) IN GENERAL.—The term ‘‘individual

25 with a disability’’ means an individual with any
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1 disability (as defined in section 3 of the Ameri2 cans with Disabilities Act of 1990 (42 U.S.C.

3 12102)).

4 (B) INDIVIDUALS WITH DISABILITIES.—

5 The term ‘‘individuals with disabilities’’ means

6 more than 1 individual with a disability.

7 (18) INDIVIDUAL OF LIMITED ENGLISH PRO8 FICIENCY.—The term ‘‘individual of limited English

9 proficiency’’ means an adult or out-of-school youth

10 who has limited ability in speaking, reading, writing,

11 or understanding the English language, and—

12 (A) whose native language is a language

13 other than English; or

14 (B) who lives in a family or community en15 vironment where a language other than English

16 is the dominant language.

17 (19) INSTITUTION OF HIGHER EDUCATION.—

18 Except for purposes of subtitle B of title I, the term

19 ‘‘institution of higher education’’ has the meaning

20 given the term in section 1201(a) of the Higher

21 Education Act of 1965 (20 U.S.C. 1141(a)).

22 (20) LITERACY.—

23 (A) IN GENERAL.—The term ‘‘literacy’’

24 means an individual’s ability to read, write, and

25 speak in English, compute, and solve problems,
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1 at levels of proficiency necessary to function on

2 the job and in society.

3 (B) WORKPLACE LITERACY PROGRAM.—

4 The term ‘‘workplace literacy program’’ means

5 a program of literacy activities that is offered

6 in the workplace for the purpose of improving

7 the productivity of the workforce through the

8 improvement of literacy skills.

9 (21) LOCAL AREA.—In paragraph (4) and title

10 III, the term ‘‘local area’’ means a local workforce

11 investment area designated under section 307.

12 (22) LOCAL PARTNERSHIP.—In title III, the

13 term ‘‘local partnership’’ means a local workforce in14 vestment partnership established under section

15 308(a).

16 (23) LOCAL PERFORMANCE MEASURE.—The

17 term ‘‘local performance measure’’ means a perform18 ance measure established under section 321(b).

19 (24) LOW-INCOME INDIVIDUAL.—In paragraph

20 (49) and title III, the term ‘‘low-income individual’’

21 means an individual who—

22 (A) receives, or is a member of a family

23 that receives, cash payments under a Federal,

24 State, or local income-based public assistance

25 program;
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1 (B) received an income, or is a member of

2 a family that received a total family income, for

3 the 6-month period prior to application for the

4 program involved (exclusive of unemployment

5 compensation, child support payments, pay6 ments described in subparagraph (A), and old7 age and survivors insurance benefits received

8 under section 202 of the Social Security Act

9 (42 U.S.C. 402)) that, in relation to family

10 size, does not exceed the higher of—

11 (i) the poverty line, for an equivalent

12 period; or

13 (ii) 70 percent of the lower living

14 standard income level, for an equivalent

15 period;

16 (C) is a member of a household that re17 ceives (or has been determined within the 6-

18 month period prior to application for the pro19 gram involved to be eligible to receive) food

20 stamps pursuant to the Food Stamp Act of

21 1977 (7 U.S.C. 2011 et seq.);

22 (D) qualifies as a homeless individual, as

23 defined in subsections (a) and (c) of section

24 103 of the Stewart B. McKinney Homeless As25 sistance Act (42 U.S.C. 11302);
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1 (E) is a foster child on behalf of whom

2 State or local government payments are made;

3 or

4 (F) in cases permitted by regulations of

5 the Secretary of Labor, is an individual with a

6 disability whose own income meets the require7 ments of a program described in subparagraph

8 (A) or of subparagraph (B), but who is a mem9 ber of a family whose income does not meet

10 such requirements.

11 (25) LOWER LIVING STANDARD INCOME

12 LEVEL.—The term ‘‘lower living standard income

13 level’’ means that income level (adjusted for re14 gional, metropolitan, urban, and rural differences

15 and family size) determined annually by the Sec16 retary of Labor based on the most recent lower liv17 ing family budget issued by the Secretary of Labor.

18 (26) NONTRADITIONAL EMPLOYMENT.—In ti19 tles I and III, the term ‘‘nontraditional employ20 ment’’ refers to occupations or fields of work for

21 which individuals from one gender comprise less

22 than 25 percent of the individuals employed in each

23 such occupation or field of work.

24 (27) ON-THE-JOB TRAINING.—The term ‘‘on25 the-job training’’ means training in the public or pri-
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1 vate sector that is provided to a paid participant

2 while engaged in productive work in a job that—

3 (A) provides knowledge or skills essential

4 to the full and adequate performance of the job;

5 (B) provides reimbursement to employers

6 of up to 50 percent of the wage rate of the par7 ticipant, for the extraordinary costs of provid8 ing the training and additional supervision re9 lated to the training; and

10 (C) is limited in duration as appropriate to

11 the occupation for which the participant is

12 being trained.

13 (28) OUT-OF-SCHOOL YOUTH.—The term ‘‘out14 of-school youth’’ means—

15 (A) a youth who is a school dropout; or

16 (B) a youth who has received a secondary

17 school diploma or its equivalent but is basic lit18 eracy skills deficient, unemployed, or under19 employed.

20 (29) OUTLYING AREA.—The term ‘‘outlying

21 area’’ means the United States Virgin Islands,

22 Guam, American Samoa, the Commonwealth of the

23 Northern Mariana Islands, the Republic of the Mar24 shall Islands, the Federated States of Micronesia,

25 and the Republic of Palau.
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1 (30) PARTICIPANT.—The term ‘‘participant’’,

2 used with respect to an activity carried out under

3 title III, means an individual participating in the ac4 tivity.

5 (31) POSTSECONDARY EDUCATIONAL INSTITU6 TION.—The term ‘‘postsecondary educational institu7 tion’’ means—

8 (A) an institution of higher education that

9 provides not less than a 2-year program of in10 struction that is acceptable for credit toward a

11 bachelor’s degree;

12 (B) a tribally controlled community college;

13 or

14 (C) a nonprofit educational institution of15 fering certificate or apprenticeship programs at

16 the postsecondary level.

17 (32) POVERTY LINE.—The term ‘‘poverty line’’

18 means the poverty line (as defined by the Office of

19 Management and Budget, and revised annually in

20 accordance with section 673(2) of the Community

21 Services Block Grant Act (42 U.S.C. 9902(2))) ap22 plicable to a family of the size involved.

23 (33) PUBLIC ASSISTANCE.—In title III, the

24 term ‘‘public assistance’’ means Federal, State, or
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1 local government cash payments for which eligibility

2 is determined by a needs or income test.

3 (34) RAPID RESPONSE ACTIVITY.—In title III,

4 the term ‘‘rapid response activity’’ means an activity

5 provided by a State, or by an entity designated by

6 a State, with funds provided by the State under sec7 tion 306(a)(2), in the case of a permanent closure

8 or mass layoff at a plant, facility, or enterprise, or

9 a natural or other disaster, that results in mass job

10 dislocation, in order to assist dislocated workers in

11 obtaining reemployment as soon as possible, with

12 services including—

13 (A) the establishment of onsite contact

14 with employers and employee representatives—

15 (i) immediately after the State is noti16 fied of a current or projected permanent

17 closure or mass layoff; or

18 (ii) in the case of a disaster, imme19 diately after the State is made aware of

20 mass job dislocation as a result of such

21 disaster;

22 (B) the provision of information and access

23 to available employment and training activities;

24 (C) assistance in establishing a labor-man25 agement committee, voluntarily agreed to by
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1 labor and management, with the ability to de2 vise and implement a strategy for assessing the

3 employment and training needs of dislocated

4 workers and obtaining services to meet such

5 needs;

6 (D) the provision of emergency assistance

7 adapted to the particular closure, layoff, or dis8 aster; and

9 (E) the provision of assistance to the local

10 community in developing a coordinated response

11 and in obtaining access to State economic devel12 opment assistance.

13 (35) SCHOOL DROPOUT.—The term ‘‘school

14 dropout’’ means an individual who is no longer at15 tending any school and who has not received a sec16 ondary school diploma or its recognized equivalent.

17 (36) SECONDARY SCHOOL.—The term ‘‘second18 ary school’’ has the meaning given the term in sec19 tion 14101 of the Elementary and Secondary Edu20 cation Act of 1965 (20 U.S.C. 8801), except that

21 the term does not include education below grade 9.

22 (37) SECRETARY.—

23 (A) TITLES I AND II.—In titles I and II,

24 the term ‘‘Secretary’’ means the Secretary of

25 Education.
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1 (B) TITLE III.—In title III, the term ‘‘Sec2 retary’’ means the Secretary of Labor.

3 (38) STATE.—The term ‘‘State’’ means each of

4 the several States of the United States, the District

5 of Columbia, and the Commonwealth of Puerto Rico.

6 (39) STATE EDUCATIONAL AGENCY.—The term

7 ‘‘State educational agency’’ means the State board

8 of education or other agency or officer primarily re9 sponsible for the State supervision of public elemen10 tary or secondary schools, or, if there is no such

11 agency or officer, an agency or officer designated by

12 the Governor or by State law.

13 (40) STATE PERFORMANCE MEASURE.—In title

14 III, the term ‘‘State performance measure’’ means a

15 performance measure established under section

16 321(a).

17 (41) STATEWIDE PARTNERSHIP.—The term

18 ‘‘statewide partnership’’ means a partnership estab19 lished under section 303.

20 (42) SUPPORTIVE SERVICES.—In title III, the

21 term ‘‘supportive services’’ means services such as

22 transportation, child care, dependent care, housing,

23 and needs-based payments, that are necessary to en24 able an individual to participate in employment and

25 training activities or youth activities.
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1 (43) TRIBALLY CONTROLLED COMMUNITY COL2 LEGE.—The term ‘‘tribally controlled community

3 college’’ means an institution that receives assistance

4 under the Tribally Controlled Community College

5 Assistance Act of 1978 (25 U.S.C. 1801 et seq.) or

6 the Navajo Community College Act (25 U.S.C. 640a

7 et seq.).

8 (44) UNIT OF GENERAL LOCAL GOVERN9 MENT.—In title III, the term ‘‘unit of general local

10 government’’ means any general purpose political

11 subdivision of a State that has the power to levy

12 taxes and spend funds, as well as general corporate

13 and police powers.

14 (45) VETERAN; RELATED DEFINITIONS.—

15 (A) VETERAN.—The term ‘‘veteran’’

16 means an individual who served in the active

17 military, naval, or air service, and who was dis18 charged or released from such service under

19 conditions other than dishonorable.

20 (B) DISABLED VETERAN.—The term ‘‘dis21 abled veteran’’ means—

22 (i) a veteran who is entitled to com23 pensation under laws administered by the

24 Secretary of Veterans Affairs; or
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1 (ii) an individual who was discharged

2 or released from active duty because of

3 service-connected disability.

4 (C) RECENTLY SEPARATED VETERAN.—

5 The term ‘‘recently separated veteran’’ means

6 any veteran who applies for participation under

7 title III within 48 months of the discharge or

8 release from active military, naval, or air serv9 ice.

10 (D) VIETNAM ERA VETERAN.—The term

11 ‘‘Vietnam era veteran’’ means a veteran any

12 part of whose active military, naval, or air serv13 ice occurred between August 5, 1964, and May

14 7, 1975.

15 (46) VOCATIONAL EDUCATION.—The term ‘‘vo16 cational education’’ means organized education

17 that—

18 (A) offers a sequence of courses that pro19 vides individuals with the academic knowledge

20 and skills the individuals need to prepare for

21 further education and for careers in current or

22 emerging employment sectors; and

23 (B) includes competency-based applied

24 learning that contributes to the academic

25 knowledge, higher-order reasoning and problem-
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1 solving skills, work attitudes, general employ2 ability skills, and occupation-specific skills, of

3 an individual.

4 (47) VOCATIONAL REHABILITATION PRO5 GRAM.—The term ‘‘vocational rehabilitation pro6 gram’’ means a program assisted under title I of the

7 Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.).

8 (48) WORKFORCE INVESTMENT ACTIVITY.—The

9 term ‘‘workforce investment activity’’ means an em10 ployment and training activity, a youth activity, and

11 an activity described in section 314.

12 (49) YOUTH.—In paragraph (50) and title III

13 (other than subtitles B and C of such title), the

14 term ‘‘youth’’ means an individual who—

15 (A) is not less than age 14 and not more

16 than age 21;

17 (B) is a low-income individual; and

18 (C) an individual who is 1 or more of the

19 following:

20 (i) Deficient in basic literacy skills.

21 (ii) A school dropout.

22 (iii) Homeless, a runaway, or a foster

23 child.

24 (iv) Pregnant or a parent.

25 (v) An offender.
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1 (vi) An individual who requires addi2 tional assistance to complete an edu3 cational program, or to secure and hold

4 employment.

5 (50) YOUTH ACTIVITY.—The term ‘‘youth activ6 ity’’ means an activity described in section 316, car7 ried out for youth.

8 (51) YOUTH PARTNERSHIP.—The term ‘‘youth

9 partnership’’ means a partnership established under

10 section 308(i).

11 TITLE I—VOCATIONAL, TECHNO12 LOGICAL, AND TECH-PREP

13 EDUCATION

14 SEC. 101. SHORT TITLE.

15 This title may be cited as the ‘‘Carl D. Perkins Voca16 tional and Applied Technology Education Act of 1997’’.

17 SEC. 102. FINDINGS AND PURPOSE.

18 (a) FINDINGS.—Congress finds that—

19 (1) in order to be successful workers, citizens,

20 and learners in the 21st century, individuals will

21 need—

22 (A) a combination of strong basic and ad23 vanced academic skills;

24 (B) computer and other technical skills;

25 (C) theoretical knowledge;
28

•S 1186 IS

1 (D) communications, problem-solving,

2 teamwork, and employability skills; and

3 (E) the ability to acquire additional knowl4 edge and skills throughout a lifetime;

5 (2) students participating in vocational edu6 cation can achieve challenging academic and tech7 nical skills, and may learn better and retain more,

8 when the students learn in context, learn by doing,

9 and have an opportunity to learn and understand

10 how academic, vocational, and technological skills

11 are used outside the classroom;

12 (3)(A) many high school graduates in the Unit13 ed States do not complete a rigorous course of study

14 that prepares the graduates for completing a 2-year

15 or 4-year college degree or for entering high-skill,

16 high-wage careers;

17 (B) adult students are an increasingly diverse

18 group and often enter postsecondary education un19 prepared for academic and technical work; and

20 (C) certain individuals often face great chal21 lenges in acquiring the knowledge and skills needed

22 for successful employment;

23 (4) community colleges, technical colleges, and

24 area vocational education schools are offering adults

25 a gateway to higher education, and access to quality
29

•S 1186 IS

1 certificates and degrees that increase their skills and

2 earnings, by—

3 (A) ensuring that the academic, vocational,

4 and technological skills gained by students ade5 quately prepare the students for the workforce;

6 and

7 (B) enhancing connections with employers

8 and 4-year institutions of higher education;

9 (5) local, State, and national programs sup10 ported under the Carl D. Perkins Vocational and

11 Applied Technology Education Act (20 U.S.C. 2301

12 et seq.) (as such Act was in effect on the day before

13 the date of enactment of this Act) have assisted

14 many students in obtaining technical, academic, and

15 employability skills, and tech-prep education;

16 (6) the Federal Government can assist States

17 and localities by carrying out nationally significant

18 research, program development, demonstration, dis19 semination, evaluation, data collection, professional

20 development, and technical assistance activities that

21 support State and local efforts regarding vocational

22 education; and

23 (7) through a performance partnership with

24 States and localities based on clear programmatic

25 goals, increased State and local flexibility, improved
30

•S 1186 IS

1 accountability, and performance measures, the Fed2 eral Government will provide to States and localities

3 financial assistance for the improvement and expan4 sion of vocational education for students participat5 ing in vocational education.

6 (b) PURPOSE.—The purpose of this title is to make

7 the United States more competitive in the world economy

8 by developing more fully the academic, vocational, and em9 ployability skills of secondary students and postsecondary

10 students who elect to enroll in vocational education pro11 grams, by—

12 (1) building on the efforts of States and local13 ities to develop challenging academic standards;

14 (2) promoting the development of services and

15 activities that integrate academic, vocational, and

16 technological instruction, and that link secondary

17 and postsecondary education for participating voca18 tional education students;

19 (3) increasing State and local flexibility in pro20 viding services and activities designed to develop, im21 plement, and improve vocational education, including

22 tech-prep education; and

23 (4) disseminating national research, and provid24 ing professional development and technical assist-
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•S 1186 IS

1 ance, that will improve vocational education pro2 grams, services, and activities.

3 SEC. 103. VOLUNTARY SELECTION AND PARTICIPATION.

4 No funds made available under this title shall be

5 used—

6 (1) to require any secondary school student to

7 choose or pursue a specific career path or major;

8 and

9 (2) to mandate that any individual participate

10 in a vocational education program under this title.

11 Subtitle A—Vocational Education

12 CHAPTER 1—FEDERAL PROVISIONS

13 SEC. 111. RESERVATIONS AND STATE ALLOTMENT.

14 (a) RESERVATIONS AND STATE ALLOTMENT.—

15 (1) RESERVATIONS.—From the sum appro16 priated under section 171 for each fiscal year, the

17 Secretary shall reserve—

18 (A) 0.2 percent to carry out section 113;

19 (B) 1.75 percent to carry out sections 114

20 and 115, of which—

21 (i) 1.25 percent of the sum shall be

22 available to carry out section 114(b);

23 (ii) 0.25 percent of the sum shall be

24 available to carry out section 114(c); and
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•S 1186 IS

1 (iii) 0.25 percent of the sum shall be

2 available to carry out section 115; and

3 (C) 1.3 percent of the sum shall be used

4 to carry out sections 116, 163, 164, 165, and

5 166, of which not less than 0.65 percent of the

6 sum shall be available to carry out section 116.

7 (2) STATE ALLOTMENT FORMULA.—Subject to

8 paragraphs (3) and (4), from the remainder of the

9 sums appropriated under section 171 and not re10 served under paragraph (1) for a fiscal year, the

11 Secretary shall allot to a State for the fiscal year—

12 (A) an amount that bears the same ratio

13 to 50 percent of the sums being allotted as the

14 product of the population aged 15 to 19 inclu15 sive, in the State in the fiscal year preceding

16 the fiscal year for which the determination is

17 made and the State’s allotment ratio bears to

18 the sum of the corresponding products for all

19 the States;

20 (B) an amount that bears the same ratio

21 to 20 percent of the sums being allotted as the

22 product of the population aged 20 to 24, inclu23 sive, in the State in the fiscal year preceding

24 the fiscal year for which the determination is

25 made and the State’s allotment ratio bears to
33

•S 1186 IS

1 the sum of the corresponding products for all

2 the States;

3 (C) an amount that bears the same ratio

4 to 15 percent of the sums being allotted as the

5 product of the population aged 25 to 65, inclu6 sive, in the State in the fiscal year preceding

7 the fiscal year for which the determination is

8 made and the State’s allotment ratio bears to

9 the sum of the corresponding products for all

10 the States; and

11 (D) an amount that bears the same ratio

12 to 15 percent of the sums being allotted as the

13 amounts allotted to the State under subpara14 graphs (A), (B), and (C) for such years bears

15 to the sum of the amounts allotted to all the

16 States under subparagraphs (A), (B), and (C)

17 for such year.

18 (3) MINIMUM ALLOTMENT.—

19 (A) IN GENERAL.—Notwithstanding any

20 other provision of law and subject to subpara21 graphs (B) and (C), and paragraph (4), no

22 State shall receive for a fiscal year under this

subsection less than 1 23 ⁄2 of 1 percent of the

24 amount appropriated under section 171 and not

25 reserved under paragraph (1) for such fiscal
34

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1 year. Amounts necessary for increasing such

2 payments to States to comply with the preced3 ing sentence shall be obtained by ratably reduc4 ing the amounts to be paid to other States.

5 (B) REQUIREMENT.—Due to the applica6 tion of subparagraph (A), for any fiscal year,

7 no State shall receive more than 150 percent of

8 the amount the State received under this sub9 section for the preceding fiscal year (or in the

10 case of fiscal year 1999 only, under section 101

11 of the Carl D. Perkins Vocational and Applied

12 Technology Education Act, as such section was

13 in effect on the day before the date of enact14 ment of this Act).

15 (C) SPECIAL RULE.—

16 (i) IN GENERAL.—Subject to para17 graph (4), no State, by reason of subpara18 graph (A), shall be allotted for a fiscal

19 year more than the lesser of—

20 (I) 150 percent of the amount

21 that the State received in the preced22 ing fiscal year (or in the case of fiscal

23 year 1999 only, under section 101 of

24 the Carl D. Perkins Vocational and

25 Applied Technology Education Act, as
35

•S 1186 IS

1 such section was in effect on the day

2 before the date of enactment of this

3 Act); and

4 (II) the amount calculated under

5 clause (ii).

6 (ii) AMOUNT.—The amount calculated

7 under this clause shall be determined by

8 multiplying—

9 (I) the number of individuals in

10 the State counted under paragraph

11 (2) in the preceding fiscal year; by

12 (II) 150 percent of the national

13 average per pupil payment made with

14 funds available under this section for

15 that year (or in the case of fiscal year

16 1999, only, under section 101 of the

17 Carl D. Perkins Vocational and Ap18 plied Technology Education Act, as

19 such section was in effect on the day

20 before the date of enactment of this

21 Act).

22 (4) HOLD HARMLESS.—

23 (A) IN GENERAL.—No State shall receive

24 an allotment under this section for a fiscal year

25 that is less than the allotment the State re-
36

•S 1186 IS

1 ceived under part A of title I of the Carl D.

2 Perkins Vocational and Applied Technology

3 Education Act (20 U.S.C. 2311 et seq.) (as

4 such part was in effect on the day before the

5 date of enactment of this Act) for fiscal year

6 1997.

7 (B) RATABLE REDUCTION.—If for any fis8 cal year the amount appropriated for allotments

9 under this section is insufficient to satisfy the

10 provisions of subparagraph (A), the payments

11 to all States under such subparagraph shall be

12 ratably reduced.

13 (b) REALLOTMENT.—If the Secretary determines

14 that any amount of any State’s allotment under subsection

15 (a) for any fiscal year will not be required for such fiscal

16 year for carrying out the activities for which such amount

17 has been allotted, the Secretary shall make such amount

18 available for reallotment. Any such reallotment among

19 other States shall occur on such dates during the same

20 year as the Secretary shall fix, and shall be made on the

21 basis of criteria established by regulation. No funds may

22 be reallotted for any use other than the use for which the

23 funds were appropriated. Any amount reallotted to a State

24 under this subsection for any fiscal year shall remain

25 available for obligation during the succeeding fiscal year
37

•S 1186 IS

1 and shall be deemed to be part of the State’s allotment

2 for the year in which the amount is obligated.

3 (c) ALLOTMENT RATIO.—

4 (1) IN GENERAL.—The allotment ratio for any

5 State shall be 1.00 less the product of—

6 (A) 0.50; and

7 (B) the quotient obtained by dividing the

8 per capita income for the State by the per cap9 ita income for all the States (exclusive of the

10 Commonwealth of Puerto Rico), except that—

11 (i) the allotment ratio in no case shall

12 be more than 0.60 or less than 0.40; and

13 (ii) the allotment ratio for the Com14 monwealth of Puerto Rico shall be 0.60.

15 (2) PROMULGATION.—The allotment ratios

16 shall be promulgated by the Secretary for each fiscal

17 year between October 1 and December 31 of the fis18 cal year preceding the fiscal year for which the de19 termination is made. Allotment ratios shall be com20 puted on the basis of the average of the appropriate

21 per capita incomes for the 3 most recent consecutive

22 fiscal years for which satisfactory data are available.

23 (3) DEFINITION OF PER CAPITA INCOME.—For

24 the purpose of this section, the term ‘‘per capita in25 come’’ means, with respect to a fiscal year, the total
38

•S 1186 IS

1 personal income in the calendar year ending in such

2 year, divided by the population of the area concerned

3 in such year.

4 (4) POPULATION DETERMINATION.—For the

5 purposes of this section, population shall be deter6 mined by the Secretary on the basis of the latest es7 timates available to the Department of Education.

8 SEC. 112. PERFORMANCE MEASURES AND EXPECTED LEV9 ELS OF PERFORMANCE.

10 (a) ESTABLISHMENT OF PERFORMANCE MEAS11 URES.—After consultation with eligible agencies, local

12 educational agencies, eligible institutions, and other inter13 ested parties (including representatives of business and

14 representatives of labor organizations), the Secretary shall

15 establish and publish performance measures described in

16 this subsection to assess the progress of each eligible agen17 cy in achieving the following:

18 (1) Student mastery of academic skills.

19 (2) Student mastery of job readiness skills.

20 (3) Student mastery of vocational skill pro21 ficiencies for students in vocational education pro22 grams, that are necessary for the receipt of a sec23 ondary school diploma or its recognized equivalent,

24 or a secondary school skill certificate.
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•S 1186 IS

1 (4) Receipt of a postsecondary degree or certifi2 cate.

3 (5) Placement in, retention in, and completion

4 of, secondary school education (as determined under

5 State law) and postsecondary education, and place6 ment and retention in employment and in military

7 service, including for the populations described in

8 section 124(c)(16).

9 (6) Participation in and completion of nontradi10 tional vocational education programs.

11 (7) Other performance measures as determined

12 by the Secretary.

13 (b) EXPECTED LEVELS OF PERFORMANCE.—In de14 veloping a State plan, each eligible agency shall negotiate

15 with the Secretary the expected levels of performance for

16 the performance measures described in subsection (a).

17 SEC. 113. ASSISTANCE FOR THE OUTLYING AREAS.

18 (a) IN GENERAL.—From the funds reserved under

19 section 111(a)(1)(A), the Secretary—

20 (1) shall award a grant in the amount of

21 $500,000 to Guam for vocational education and

22 training for the purpose of providing direct edu23 cational services related to vocational education, in24 cluding—
40

•S 1186 IS

1 (A) teacher and counselor training and re2 training;

3 (B) curriculum development; and

4 (C) improving vocational education pro5 grams in secondary schools and institutions of

6 higher education, or improving cooperative edu7 cation programs involving both secondary

8 schools and institutions of higher education;

9 (2) shall award a grant in the amount of

10 $600,000 to the United States Virgin Islands for vo11 cational education for the purpose described in para12 graph (1); and

13 (3) shall award a grant in the amount of

14 $190,000 to each of American Samoa and the Com15 monwealth of the Northern Mariana Islands for vo16 cational education for the purpose described in para17 graph (1).

18 (b) SPECIAL RULE.—

19 (1) IN GENERAL.—From funds reserved under

20 section 111(a)(1)(A) and not awarded under sub21 section (a), the Secretary shall make available the

22 amount awarded to the Republic of the Marshall Is23 lands, the Federated States of Micronesia, and the

24 Republic of Palau under section 101A of the Carl D.

25 Perkins Vocational and Applied Technology Edu-
41

•S 1186 IS

1 cation Act (as such section was in effect on the day

2 before the date of enactment of this Act) to award

3 grants under the succeeding sentence. From the

4 amount made available under the preceding sen5 tence, the Secretary shall award grants, to Guam,

6 American Samoa, the Commonwealth of the North7 ern Mariana Islands, the Republic of the Marshall

8 Islands, the Federated States of Micronesia, or the

9 Republic of Palau for the purpose described in sub10 section (a)(1).

11 (2) AWARD BASIS.—The Secretary shall award

12 grants pursuant to paragraph (1) on a competitive

13 basis and pursuant to recommendations from the

14 Pacific Region Educational Laboratory in Honolulu,

15 Hawaii.

16 (3) TERMINATION OF ELIGIBILITY.—Notwith17 standing any other provision of law, the Republic of

18 the Marshall Islands, the Federated States of Micro19 nesia, and the Republic of Palau shall not receive

20 any funds under this title for any fiscal year that be21 gins after September 30, 2004.

22 (4) ADMINISTRATIVE COSTS.—The Secretary

23 may provide not more than 5 percent of the funds

24 made available for grants under this subsection to

25 pay the administrative costs of the Pacific Region
42

•S 1186 IS

1 Educational Laboratory regarding activities assisted

2 under this subsection.

3 SEC. 114. INDIAN AND HAWAIIAN NATIVE PROGRAMS.

4 (a) DEFINITIONS; AUTHORITY OF SECRETARY.—

5 (1) DEFINITIONS.—For the purpose of this sec6 tion—

7 (A) the term ‘‘Act of April 16, 1934’’

8 means the Act entitled ‘‘An Act authorizing the

9 Secretary of the Interior to arrange with States

10 or territories for the education, medical atten11 tion, relief of distress, and social welfare of In12 dians, and for other purposes’’, enacted April

13 16, 1934 (48 Stat. 596; 25 U.S.C. 452 et seq.);

14 (B) the term ‘‘Bureau funded school’’ has

15 the meaning given the term in section 1146 of

16 the Education Amendments of 1978 (25 U.S.C.

17 2026); and

18 (C) the term ‘‘Hawaiian native’’ means

19 any individual any of whose ancestors were na20 tives, prior to 1778, of the area which now com21 prises the State of Hawaii.

22 (2) AUTHORITY.—From the funds reserved pur23 suant to section 111(a)(1)(B), the Secretary shall

24 award grants and enter into contracts for Indian

25 and Hawaiian native programs in accordance with
43

•S 1186 IS

1 this section, except that such programs shall not in2 clude secondary school programs in Bureau funded

3 schools.

4 (b) INDIAN PROGRAMS.—

5 (1) AUTHORITY.—

6 (A) IN GENERAL.—Except as provided in

7 subparagraph (B), from the funds reserved pur8 suant to section 111(a)(1)(B)(i), the Secretary

9 is directed—

10 (i) upon the request of any Indian

11 tribe, or a tribal organization serving an

12 Indian tribe, which is eligible to contract

13 with the Secretary of the Interior for the

14 administration of programs under the In15 dian Self-Determination Act (25 U.S.C.

16 450 et seq.) or under the Act of April 16,

17 1934; or

18 (ii) upon an application received from

19 a Bureau funded school offering post20 secondary or adult education programs

21 filed at such time and under such condi22 tions as the Secretary may prescribe,

23 to make grants to or enter into contracts with

24 any Indian tribe or tribal organization, or to

25 make a grant to such Bureau funded school, as
44

•S 1186 IS

1 appropriate, to plan, conduct, and administer

2 programs or portions of programs authorized

3 by, and consistent with the purpose of, this

4 title.

5 (B) REQUIREMENTS.—The grants or con6 tracts described in subparagraph (A), shall be

7 subject to the following:

8 (i) TRIBAL ORGANIZATIONS.—Such

9 grants or contracts with any tribal organi10 zation shall be subject to the terms and

11 conditions of section 102 of the Indian

12 Self-Determination Act (25 U.S.C. 450f)

13 and shall be conducted in accordance with

14 the provisions of sections 4, 5, and 6 of the

15 Act of April 16, 1934, which are relevant

16 to the programs administered under this

17 subsection.

18 (ii) BUREAU FUNDED SCHOOLS.—

19 Such grants to Bureau funded schools

20 shall not be subject to the requirements of

21 the Indian Self-Determination Act (25

22 U.S.C. 450f et seq.) or the Act of April 16,

23 1934.

24 (C) APPLICATION.—Any Indian tribe, trib25 al organization, or Bureau funded school eligi-
45

•S 1186 IS

1 ble to receive assistance under this paragraph

2 may apply individually or as part of a consor3 tium with another such Indian tribe, tribal or4 ganization, or Bureau funded school.

5 (D) PERFORMANCE MEASURES AND EVAL6 UATION.—Any Indian tribe, tribal organization,

7 or Bureau funded school that receives assist8 ance under this section shall—

9 (i) establish performance measures

10 and expected level of performance to be

11 achieved by students served under this sec12 tion; and

13 (ii) evaluate the quality and effective14 ness of activities and services provided

15 under this subsection.

16 (E) MINIMUM.—In the case of a Bureau

17 funded school, the minimum amount of a grant

18 awarded or contract entered into under this sec19 tion shall be $35,000.

20 (F) RESTRICTIONS.—The Secretary may

21 not place upon grants awarded or contracts en22 tered into under this paragraph any restrictions

23 relating to programs other than restrictions

24 that apply to grants made to or contracts en25 tered into with States pursuant to allotments
46

•S 1186 IS

1 under section 111(a). The Secretary, in award2 ing grants and entering into contracts under

3 this paragraph, shall ensure that the grants and

4 contracts will improve vocational education pro5 grams, and shall give special consideration to—

6 (i) grants or contracts which involve,

7 coordinate with, or encourage tribal eco8 nomic development plans; and

9 (ii) applications from tribally con10 trolled community colleges that—

11 (I) are accredited or are can12 didates for accreditation by a nation13 ally recognized accreditation organiza14 tion as an institution of postsecondary

15 vocational education; or

16 (II) operate vocational education

17 programs that are accredited or are

18 candidates for accreditation by a na19 tionally recognized accreditation orga20 nization, and issue certificates for

21 completion of vocational education

22 programs.

23 (G) STIPENDS.—

24 (i) IN GENERAL.—Funds received

25 pursuant to grants or contracts described
47

•S 1186 IS

1 in subparagraph (A) may be used to pro2 vide stipends to students who are enrolled

3 in vocational education programs and who

4 have acute economic needs which cannot be

5 met through work-study programs.

6 (ii) AMOUNT.—Stipends described in

7 clause (i) shall not exceed reasonable

8 amounts as prescribed by the Secretary.

9 (2) MATCHING.—If sufficient funding is avail10 able, the Bureau of Indian Affairs shall expend an

11 amount equal to the amount made available under

12 this subsection, relating to programs for Indians, to

13 pay a part of the costs of programs funded under

14 this subsection. During each fiscal year the Bureau

15 of Indian Affairs shall expend no less than the

16 amount expended during the prior fiscal year on vo17 cational education programs, services, and activities

18 administered either directly by, or under contract

19 with, the Bureau of Indian Affairs, except that in no

20 year shall funding for such programs, services, and

21 activities be provided from accounts and programs

22 that support other Indian education programs. The

23 Secretary and the Assistant Secretary of the Interior

24 for Indian Affairs shall prepare jointly a plan for the

25 expenditure of funds made available and for the
48

•S 1186 IS

1 evaluation of programs assisted under this sub2 section. Upon the completion of a joint plan for the

3 expenditure of the funds and the evaluation of the

4 programs, the Secretary shall assume responsibility

5 for the administration of the program, with the as6 sistance and consultation of the Bureau of Indian

7 Affairs.

8 (3) SPECIAL RULE.—Programs funded under

9 this subsection shall be in addition to such other

10 programs, services, and activities as are made avail11 able to eligible Indians under other provisions of this

12 Act.

13 (c) HAWAIIAN NATIVE PROGRAMS.—From the funds

14 reserved pursuant to section 111(a)(1)(B)(ii), the Sec15 retary is directed, to award grants or enter into contracts

16 with organizations primarily serving and representing Ha17 waiian natives which are recognized by the Governor of

18 the State of Hawaii to plan, conduct, and administer pro19 grams, or portions thereof, which are authorized by and

20 consistent with the purpose of this title, for the benefit

21 of Hawaiian natives.

22 SEC. 115. TRIBALLY CONTROLLED POSTSECONDARY VOCA23 TIONAL INSTITUTIONS.

24 (a) IN GENERAL.—It is the purpose of this section

25 to provide grants for the operation and improvement of
49

•S 1186 IS

1 tribally controlled postsecondary vocational institutions to

2 ensure continued and expanded educational opportunities

3 for Indian students, and to allow for the improvement and

4 expansion of the physical resources of such institutions.

5 (b) GRANTS AUTHORIZED.—From the funds reserved

6 pursuant to section 111(a)(1)(B)(iii), the Secretary shall

7 make grants to tribally controlled postsecondary voca8 tional institutions to provide basic support for the voca9 tional education and training of Indian students.

10 (c) ELIGIBLE GRANT RECIPIENTS.—To be eligible

11 for assistance under this section a tribally controlled post12 secondary vocational institution shall—

13 (1) be governed by a board of directors or

14 trustees, a majority of whom are Indians;

15 (2) demonstrate adherence to stated goals, a

16 philosophy, or a plan of operation which fosters indi17 vidual Indian economic and self-sufficiency oppor18 tunity, including programs that are appropriate to

19 stated tribal goals of developing individual entrepre20 neurships and self-sustaining economic infrastruc21 tures on reservations;

22 (3) have been in operation for at least 3 years;

23 (4) hold accreditation with or be a candidate for

24 accreditation by a nationally recognized accrediting
50

•S 1186 IS

1 authority for postsecondary vocational education;

2 and

3 (5) enroll the full-time equivalency of not less

4 than 100 students, of whom a majority are Indians.

5 (d) GRANT REQUIREMENTS.—

6 (1) APPLICATIONS.—Any tribally controlled

7 postsecondary vocational institution that desires to

8 receive a grant under this section shall submit an

9 application to the Secretary. Such application shall

10 include a description of recordkeeping procedures for

11 the expenditure of funds received under this section

12 that will allow the Secretary to audit and monitor

13 programs.

14 (2) NUMBER.—The Secretary shall award not

15 less than 2 grants under this section for each fiscal

16 year.

17 (3) CONSULTATION.—In awarding grants under

18 this section, the Secretary shall, to the extent prac19 ticable, consult with the boards of trustees of, and

20 the tribal governments chartering, the institutions

21 desiring the grants.

22 (4) LIMITATION.—Amounts made available

23 through grants under this section shall not be used

24 in connection with religious worship or sectarian in25 struction.
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•S 1186 IS

1 (e) USES OF GRANTS.—

2 (1) IN GENERAL.—The Secretary shall, subject

3 to the availability of appropriations, provide for each

4 program year to each tribally controlled vocational

5 institution having an application approved by the

6 Secretary, an amount necessary to pay expenses as7 sociated with—

8 (A) the maintenance and operation of the

9 program, including development costs, costs of

10 basic and special instruction (including special

11 programs for individuals with disabilities and

12 academic instruction), materials, student costs,

13 administrative expenses, boarding costs, trans14 portation, student services, daycare and family

15 support programs for students and their fami16 lies (including contributions to the costs of edu17 cation for dependents), and student stipends;

18 (B) capital expenditures, including oper19 ations and maintenance, and minor improve20 ments and repair, and physical plant mainte21 nance costs, for the conduct of programs fund22 ed under this section; and

23 (C) costs associated with repair, upkeep,

24 replacement, and upgrading of the instructional

25 equipment.
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•S 1186 IS

1 (2) ACCOUNTING.—Each institution receiving a

2 grant under this section shall provide annually to

3 the Secretary an accurate and detailed accounting of

4 the institution’s operating and maintenance expenses

5 and such other information concerning costs as the

6 Secretary may reasonably require.

7 (f) EFFECT ON OTHER PROGRAMS.—

8 (1) IN GENERAL.—Except as specifically pro9 vided in this Act, eligibility for assistance under this

10 section shall not preclude any tribally controlled

11 postsecondary vocational institution from receiving

12 Federal financial assistance under any program au13 thorized under the Higher Education Act of 1965

14 (20 U.S.C. 1001 et seq.) or any other applicable

15 program for the benefit of institutions of higher edu16 cation or vocational education.

17 (2) PROHIBITION ON ALTERATION OF GRANT

18 AMOUNT.—The amount of any grant for which trib19 ally controlled postsecondary vocational institutions

20 are eligible under this section shall not be altered be21 cause of funds allocated to any such institution from

22 funds appropriated under the Act of November 2,

23 1921 (commonly known as the ‘‘Snyder Act’’) (42

24 Stat. 208, chapter 115; 25 U.S.C. 13).
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1 (3) PROHIBITION ON CONTRACT DENIAL.—No

2 tribally controlled postsecondary vocational institu3 tion for which an Indian tribe has designated a por4 tion of the funds appropriated for the tribe from

5 funds appropriated under such Act of November 2,

6 1921, may be denied a contract for such portion

7 under the Indian Self-Determination and Education

8 Assistance Act (25 U.S.C. 450b et seq.) (except as

9 provided in that Act), or denied appropriate contract

10 support to administer such portion of the appro11 priated funds.

12 (g) NEEDS ESTIMATE AND REPORT ON FACILITIES

13 AND FACILITIES IMPROVEMENT.—

14 (1) NEEDS ESTIMATE.—The Secretary shall,

15 based on the most accurate data available from the

16 institutions and Indian tribes whose Indian students

17 are served under this section, and in consideration

18 of employment needs, economic development needs,

19 population training needs, and facilities needs, pre20 pare an actual budget needs estimate for each insti21 tution eligible under this section for each subsequent

22 program year, and submit such budget needs esti23 mate to Congress in such a timely manner as will

24 enable the appropriate committees of Congress to

25 consider such needs data for purposes of the unin-
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•S 1186 IS

1 terrupted flow of adequate appropriations to such in2 stitutions. Such data shall take into account the

3 goals and requirements of the Personal Responsibil4 ity and Work Opportunity Reconciliation Act of

5 1996 (Public Law 104–193; 110 Stat. 2105).

6 (2) STUDY OF TRAINING AND HOUSING

7 NEEDS.—

8 (A) IN GENERAL.—The Secretary shall

9 conduct a detailed study of the training, hous10 ing, and immediate facilities needs of each insti11 tution eligible under this section. The study

12 shall include an examination of—

13 (i) training equipment needs;

14 (ii) housing needs of families whose

15 heads of households are students and

16 whose dependents have no alternate source

17 of support while such heads of households

18 are students; and

19 (iii) immediate facilities needs.

20 (B) REPORT.—The Secretary shall report

21 to Congress not later than July 1, 1999, on the

22 results of the study required by subparagraph

23 (A).

24 (C) CONTENTS.—The report required by

25 subparagraph (B) shall include the number,
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•S 1186 IS

1 type, and cost of meeting the needs described

2 in subparagraph (A), and rank each institution

3 by relative need.

4 (D) PRIORITY.—In conducting the study

5 required by subparagraph (A), the Secretary

6 shall give priority to institutions that are receiv7 ing assistance under this section.

8 (3) LONG-TERM STUDY OF FACILITIES.—

9 (A) IN GENERAL.—The Secretary shall

10 provide for the conduct of a long-term study of

11 the facilities of each institution eligible for as12 sistance under this section.

13 (B) CONTENTS.—The study required by

14 subparagraph (A) shall include a 5-year projec15 tion of training facilities, equipment, and hous16 ing needs and shall consider such factors as

17 projected service population, employment, and

18 economic development forecasting, based on the

19 most current and accurate data available from

20 the institutions and Indian tribes affected.

21 (B) SUBMISSION.—The Secretary shall

22 submit to Congress a detailed report on the re23 sults of such study not later than the end of the

24 18-month period beginning on the date of en25 actment of this Act.
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1 (h) DEFINITIONS.—For the purposes of this section:

2 (1) INDIAN; INDIAN TRIBE.—The terms ‘‘In3 dian’’ and ‘‘Indian tribe’’ have the meaning given

4 such terms in section 2 of the Tribally Controlled

5 Community College Assistance Act of 1978 (25

6 U.S.C. 1801).

7 (2) TRIBALLY CONTROLLED POSTSECONDARY

8 VOCATIONAL INSTITUTION.—The term ‘‘tribally con9 trolled postsecondary vocational institution’’ means

10 an institution of higher education that—

11 (A) is formally controlled, or has been for12 mally sanctioned or chartered by the governing

13 body of an Indian tribe or tribes; and

14 (B) offers technical degrees or certificate

15 granting programs.

16 SEC. 116. INCENTIVE GRANTS.

17 (a) IN GENERAL.—The Secretary may make grants

18 to States that exceed—

19 (1) the State performance measures established

20 by the Secretary of Education under this Act; and

21 (2) the State performance measures established

22 under title III.

23 (b) PRIORITY.—In awarding incentive grants under

24 this section, the Secretary shall give priority to those

25 States submitting a State unified plan as described in sec-
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1 tion 501 that is approved by the appropriate Secretaries

2 as described in such section.

3 (c) USE OF FUNDS.—A State that receives an incen4 tive grant under this section shall use the funds made

5 available through the grant to carry out innovative pro6 grams as determined by the State.

7 CHAPTER 2—STATE PROVISIONS

8 SEC. 121. STATE ADMINISTRATION.

9 Each eligible agency shall be responsible for the State

10 administration of activities under this subtitle, including—

11 (1) the development, submission, and implemen12 tation of the State plan;

13 (2) the efficient and effective performance of

14 the eligible agency’s duties under this subtitle; and

15 (3) consultation with other appropriate agen16 cies, groups, and individuals that are involved in the

17 development and implementation of activities as18 sisted under this subtitle, such as employers, par19 ents, students, teachers, labor organizations, State

20 and local elected officials, and local program admin21 istrators.

22 SEC. 122. STATE USE OF FUNDS.

23 (a) RESERVATIONS.—From funds allotted to each

24 State under section 111(a) for each fiscal year, the eligible

25 agency shall reserve—
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1 (1) not more than 14 percent of the funds to

2 carry out section 123;

3 (2) not more than 10 percent of the funds, or

4 $300,000, whichever is greater, of which—

5 (A) $60,000 shall be available to provide

6 technical assistance and advice to local edu7 cational agencies, postsecondary educational in8 stitutions, and other interested parties in the

9 State for gender equity activities; and

10 (B) the remainder may be used to—

11 (i) develop the State plan;

12 (ii) review local applications;

13 (iii) monitor and evaluate program ef14 fectiveness;

15 (iv) provide technical assistance; and

16 (v) assure compliance with all applica17 ble Federal laws, including required serv18 ices and activities for individuals who are

19 members of populations described in sec20 tion 124(c)(16); and

21 (3) 1 percent of the funds, or the amount the

22 State expended under the Carl D. Perkins Voca23 tional and Applied Technology Education Act (20

24 U.S.C. 2301 et seq.) for vocational education pro25 grams for criminal offenders for the fiscal year
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•S 1186 IS

1 1997, whichever is greater, to carry out programs

2 for criminal offenders.

3 (b) REMAINDER.—From funds allotted to each State

4 under section 111(a) for each fiscal year and not reserved

5 under subsection (a), the eligible agency shall determine

6 the portion of the funds that will be available to carry out

7 sections 131 and 132.

8 (c) MATCHING REQUIREMENT.—Each eligible agency

9 receiving funds under this subtitle shall match, from non10 Federal sources and on a dollar-for-dollar basis, the funds

11 received under subsection (a)(2).

12 SEC. 123. STATE LEADERSHIP ACTIVITIES.

13 (a) MANDATORY.—Each eligible agency shall use the

14 funds reserved under section 122(a)(1) to conduct pro15 grams, services, and activities that further the develop16 ment, implementation, and improvement of vocational

17 education within the State and that are integrated, to the

18 maximum extent possible, with challenging State academic

19 standards, including—

20 (1) providing comprehensive professional devel21 opment (including initial teacher preparation) for vo22 cational, academic, guidance, and administrative

23 personnel, that—
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•S 1186 IS

1 (A) will help the teachers and personnel to

2 meet the expected levels of performance estab3 lished under section 112;

4 (B) reflects the eligible agency’s assess5 ment of the eligible agency’s needs for profes6 sional development; and

7 (C) is integrated with the professional de8 velopment activities that the State carries out

9 under title II of the Elementary and Secondary

10 Education Act of 1965 (20 U.S.C. 6001 et

11 seq.);

12 (2) developing and disseminating curricula that

13 are aligned, as appropriate, with challenging State

14 academic standards, and vocational and techno15 logical skills;

16 (3) monitoring and evaluating the quality of,

17 and improvement in, activities conducted with assist18 ance under this subtitle;

19 (4) promoting gender equity in secondary and

20 postsecondary vocational education;

21 (5) supporting tech-prep education activities;

22 (6) improving and expanding the use of tech23 nology in instruction;

24 (7) supporting partnerships among local edu25 cational agencies, institutions of higher education,
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•S 1186 IS

1 adult education providers, and, as appropriate, other

2 entities, such as employers, labor organizations, par3 ents, and local partnerships, to enable students to

4 achieve to challenging State academic standards,

5 and vocational and technological skills; and

6 (8) serving individuals in State institutions,

7 such as State correctional institutions and institu8 tions that serve individuals with disabilities.

9 (b) PERMISSIVE.—Each eligible agency may use the

10 funds reserved under section 122(a)(1) for—

11 (1) improving guidance and counseling pro12 grams that assist students in making informed edu13 cation and vocational decisions;

14 (2) supporting vocational student organizations,

15 especially with respect to efforts to increase the par16 ticipation of students who are members of popu17 lations described in section 124(c)(16);

18 (3) providing vocational education programs for

19 adults and school dropouts to complete their second20 ary school education; and

21 (4) providing assistance to students who have

22 participated in services and activities under this sub23 title in finding an appropriate job and continuing

24 their education.
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•S 1186 IS

1 SEC. 124. STATE PLAN.

2 (a) STATE PLAN.—

3 (1) IN GENERAL.—Each eligible entity desiring

4 assistance under this subtitle for any fiscal year

5 shall prepare and submit to the Secretary a State

6 plan for a 3-year period, together with such annual

7 revisions as the eligible agency determines to be nec8 essary.

9 (2) COORDINATION.—The period required by

10 paragraph (1) shall be coordinated with the period

11 covered by the State plan described in section 304.

12 (3) HEARING PROCESS.—The eligible agency

13 shall conduct public hearings in the State, after ap14 propriate and sufficient notice, for the purpose of af15 fording all segments of the public and interested or16 ganizations and groups (including employers, labor

17 organizations, and parents), an opportunity to

18 present their views and make recommendations re19 garding the State plan. A summary of such rec20 ommendations and the eligible agency’s response to

21 such recommendations shall be included with the

22 State plan.

23 (b) DEVELOPMENT OF PLAN.—The eligible agency

24 shall develop the State plan with representatives of sec25 ondary and postsecondary vocational education, and busi-
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•S 1186 IS

1 ness, in the State and shall also consult the Governor of

2 the State.

3 (c) CONTENTS OF THE PLAN.—The State plan shall

4 include information that—

5 (1) describes the vocational education activities

6 to be assisted that are designed to meet and reach

7 the State performance measures;

8 (2) describes the integration of academic edu9 cation with vocational education, and with techno10 logical education related to vocational education;

11 (3) describes how the eligible agency will

12 disaggregate data relating to students participating

13 in vocational education in order to adequately meas14 ure the progress of the students;

15 (4) describes how the eligible agency will ade16 quately address the needs of students in alternative

17 education programs;

18 (5) describes how the eligible agency will pro19 vide local educational agencies, area vocational edu20 cation schools, and eligible institutions in the State

21 with technical assistance;

22 (6) describes how the eligible agency will en23 courage the participation of the parents of secondary

24 school students who are involved in vocational edu25 cation activities;
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•S 1186 IS

1 (7) identifies how the eligible agency will obtain

2 the active participation of business, labor organiza3 tions, and parents in the development and improve4 ment of vocational education activities carried out by

5 the eligible agency;

6 (8) describes how vocational education is

7 aligned with State and regional employment oppor8 tunities;

9 (9) describes the methods proposed for the joint

10 planning and coordination of programs carried out

11 under this subtitle with other Federal education pro12 grams;

13 (10) describes how funds will be used to pro14 mote gender equity in secondary and postsecondary

15 vocational education;

16 (11) describes how funds will be used to im17 prove and expand the use of technology in instruc18 tion;

19 (12) describes how funds will be used to serve

20 individuals in State correctional institutions;

21 (13) describes how funds will be used effectively

22 to link secondary and postsecondary education;

23 (14) describes how funds will be allocated and

24 used at the secondary and postsecondary level, any

25 consortia that will be formed among secondary
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1 schools and eligible institutions, and how funds will

2 be allocated among the members of the consortia;

3 (15) describes how the eligible agency will en4 sure that the data reported to the eligible agency

5 from local educational agencies and eligible institu6 tions under this subtitle and the data the eligible

7 agency reports to the Secretary are complete, accu8 rate, and reliable;

9 (16) describes how the eligible agency will de10 velop program strategies for populations that in11 clude, at a minimum—

12 (A) low-income individuals, including foster

13 children;

14 (B) individuals with disabilities;

15 (C) single parents and displaced home16 makers; and

17 (D) individuals with multiple barriers to

18 educational enhancement; and

19 (17) contains the description and information

20 specified in paragraphs (8) and (16) of section

21 304(b) concerning postsecondary students and

22 school dropouts.

23 (d) PLAN APPROVAL.—
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1 (1) IN GENERAL.—The Secretary shall approve

2 a State plan, or a revision to an approved State

3 plan, only if the Secretary determines that—

4 (A) the State plan, or revision, respec5 tively, meets the requirements of this section;

6 and

7 (B) the State’s performance measures and

8 expected levels of performance under section

9 112 are sufficiently rigorous to meet the pur10 pose of this title.

11 (2) DISAPPROVAL.—The Secretary shall not fi12 nally disapprove a State plan, except after giving the

13 eligible agency notice and an opportunity for a hear14 ing.

15 (3) PEER REVIEW.—The Secretary shall estab16 lish a peer review process to make recommendations

17 regarding approval of State plans and revisions to

18 State plans.

19 (4) TIMEFRAME.—A State plan shall be deemed

20 approved if the Secretary has not responded to the

21 eligible agency regarding the plan within 90 days of

22 the date the Secretary receives the plan.

23 (e) ELIGIBLE AGENCY REPORT.—

24 (1) IN GENERAL.—The eligible agency shall an25 nually report to the Secretary regarding—
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•S 1186 IS

1 (A) the quality and effectiveness of the

2 programs, services, and activities, assisted

3 under this subtitle, based on the performance

4 measures and expected levels of performance

5 described in section 112; and

6 (B) the progress each population of indi7 viduals described in section 124(c)(16) is mak8 ing toward achieving the expected levels of per9 formance.

10 (2) CONTENTS.—The eligible agency report

11 also—

12 (A) shall include such information, in such

13 form, as the Secretary may reasonably require,

14 in order to ensure the collection of uniform

15 data; and

16 (B) shall be made available to the public.

17 CHAPTER 3—LOCAL PROVISIONS

18 SEC. 131. DISTRIBUTION FOR SECONDARY SCHOOL VOCA19 TIONAL EDUCATION.

20 (a) ALLOCATION.—Except as otherwise provided in

21 this section, each eligible agency shall distribute the por22 tion of the funds made available for secondary school voca23 tional education activities under section 122(b) for any fis24 cal year to local educational agencies within the State as

25 follows:
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•S 1186 IS

1 (1) SEVENTY PERCENT.—From 70 percent of

2 such portion, each local educational agency shall be

3 allocated an amount that bears the same relation4 ship to such 70 percent as the amount such local

5 educational agency was allocated under section 1124

6 of the Elementary and Secondary Education Act of

7 1965 (20 U.S.C. 6333) for the preceding fiscal year

8 bears to the total amount received under such sec9 tion by all local educational agencies in the State for

10 such year.

11 (2) TWENTY PERCENT.—From 20 percent of

12 such portion, each local educational agency shall be

13 allocated an amount that bears the same relation14 ship to such 20 percent as the number of students

15 with disabilities who have individualized education

16 programs under section 614(d) of the Individuals

17 with Disabilities Education Act (20 U.S.C. 1414(d))

18 served by such local educational agency for the pre19 ceding fiscal year bears to the total number of such

20 students served by all local educational agencies in

21 the State for such year.

22 (3) TEN PERCENT.—From 10 percent of such

23 portion, each local educational agency shall be allo24 cated an amount that bears the same relationship to

25 such 10 percent as the number of students enrolled
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•S 1186 IS

1 in schools and adults enrolled in training programs

2 under the jurisdiction of such local educational agen3 cy for the preceding fiscal year bears to the number

4 of students enrolled in schools and adults enrolled in

5 training programs under the jurisdiction of all local

6 educational agencies in the State for such year.

7 (b) MINIMUM ALLOCATION.—

8 (1) IN GENERAL.—Except as provided in para9 graph (2), no local educational agency shall receive

10 an allocation under subsection (a) unless the amount

11 allocated to such agency under subsection (a) is not

12 less than $25,000. A local educational agency may

13 enter into a consortium with other local educational

14 agencies for purposes of meeting the minimum allo15 cation requirement of this paragraph.

16 (2) WAIVER.—The eligible agency may waive

17 the application of paragraph (1) in any case in

18 which the local educational agency—

19 (A) is located in a rural, sparsely popu20 lated area; and

21 (B) demonstrates that such agency is un22 able to enter into a consortium for purposes of

23 providing services under this section.

24 (3) REALLOCATION.—Any amounts that are not

25 allocated by reason of paragraph (1) or (2) shall be
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•S 1186 IS

1 reallocated to local educational agencies that meet

2 the requirements of paragraph (1) or (2) in accord3 ance with the provisions of this section.

4 (c) LIMITED JURISDICTION AGENCIES.—

5 (1) IN GENERAL.—In applying the provisions of

6 subsection (a), no eligible agency receiving assistance

7 under this subtitle shall allocate funds to a local

8 educational agency that serves only elementary

9 schools, but shall distribute such funds to the local

10 educational agency or regional educational agency

11 that provides secondary school services to secondary

12 school students in the same attendance area.

13 (2) SPECIAL RULE.—The amount to be allo14 cated under paragraph (1) to a local educational

15 agency that has jurisdiction only over secondary

16 schools shall be determined based on the number of

17 students that entered such secondary schools in the

18 previous year from the elementary schools involved.

19 (d) ALLOCATIONS TO AREA VOCATIONAL EDUCATION

20 SCHOOLS AND EDUCATIONAL SERVICE AGENCIES.—

21 (1) IN GENERAL.—Each eligible agency shall

22 distribute the portion of funds made available for

23 any fiscal year by such entity for secondary school

24 vocational education activities under section 122(b)
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•S 1186 IS

1 to the appropriate area vocational education school

2 or educational service agency in any case in which—

3 (A) the area vocational education school or

4 educational service agency, and the local edu5 cational agency concerned—

6 (i) have formed or will form a consor7 tium for the purpose of receiving funds

8 under this section; or

9 (ii) have entered into or will enter into

10 a cooperative arrangement for such pur11 pose; and

12 (B)(i) the area vocational education school

13 or educational service agency serves an approxi14 mately equal or greater proportion of students

15 who are individuals with disabilities or are low16 income than the proportion of such students at17 tending the secondary schools under the juris18 diction of all of the local educational agencies

19 sending students to the area vocational edu20 cation school or the educational service agency;

21 or

22 (ii) the area vocational education school,

23 educational service agency, or local educational

24 agency demonstrates that the vocational edu25 cation school or educational service agency is
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•S 1186 IS

1 unable to meet the criterion described in clause

2 (i) due to the lack of interest by students de3 scribed in clause (i) in attending vocational edu4 cation programs in that area vocational edu5 cation school or educational service agency.

6 (2) ALLOCATION BASIS.—If an area vocational

7 education school or educational service agency meets

8 the requirements of paragraph (1), then—

9 (A) the amount that will otherwise be dis10 tributed to the local educational agency under

11 this section shall be allocated to the area voca12 tional education school, the educational service

13 agency, and the local educational agency, based

14 on each school’s or agency’s relative share of

15 students described in paragraph (1)(B)(i) who

16 are attending vocational education programs

17 (based, if practicable, on the average enrollment

18 for the prior 3 years); or

19 (B) such amount may be allocated on the

20 basis of an agreement between the local edu21 cational agency and the area vocational edu22 cation school or educational service agency.

23 (3) STATE DETERMINATION.—

24 (A) IN GENERAL.—For the purposes of

25 this subsection, the eligible agency may deter-
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1 mine the number of students who are low-in2 come on the basis of—

3 (i) eligibility for—

4 (I) free or reduced-price meals

5 under the National School Lunch Act

6 (7 U.S.C. 1751 et seq.);

7 (II) assistance under a State pro8 gram funded under part A of title IV

9 of the Social Security Act;

10 (III) benefits under the Food

11 Stamp Act of 1977 (7 U.S.C. 2011 et

12 seq.); or

13 (IV) services under title I of the

14 Elementary and Secondary Education

15 Act of 1965 (20 U.S.C. 6301 et seq.);

16 and

17 (ii) another index of economic status,

18 including an estimate of such index, if the

19 eligible agency demonstrates to the satis20 faction of the Secretary that such index is

21 a more representative means of determin22 ing such number.

23 (B) DATA.—If an eligible agency elects to

24 use more than 1 factor described in subpara25 graph (A) for purposes of making the deter-
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•S 1186 IS

1 mination described in such subparagraph, the

2 eligible agency shall ensure that the data used

3 is not duplicative.

4 (4) APPEALS PROCEDURE.—The eligible agency

5 shall establish an appeals procedure for resolution of

6 any dispute arising between a local educational

7 agency and an area vocational education school or

8 an educational service agency with respect to the al9 location procedures described in this section, includ10 ing the decision of a local educational agency to

11 leave a consortium.

12 (5) SPECIAL RULE.—Notwithstanding the pro13 visions of paragraphs (1), (2), (3), and (4), any local

14 educational agency receiving an allocation that is not

15 sufficient to conduct a secondary school vocational

16 education program of sufficient size, scope, and

17 quality to be effective may—

18 (A) form a consortium or enter into a co19 operative agreement with an area vocational

20 education school or educational service agency

21 offering secondary school vocational education

22 programs of sufficient size, scope, and quality

23 to be effective and that are accessible to stu24 dents who are individuals with disabilities or
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•S 1186 IS

1 are low-income, and are served by such local

2 educational agency; and

3 (B) transfer such allocation to the area vo4 cational education school or educational service

5 agency.

6 (e) SPECIAL RULE.—Each eligible agency distribut7 ing funds under this section shall treat a secondary school

8 funded by the Bureau of Indian Affairs within the State

9 as if such school were a local educational agency within

10 the State for the purpose of receiving a distribution under

11 this section.

12 SEC. 132. DISTRIBUTION FOR POSTSECONDARY VOCA13 TIONAL EDUCATION.

14 (a) DISTRIBUTION.—

15 (1) IN GENERAL.—Except as otherwise pro16 vided in this section, each eligible agency shall dis17 tribute the portion of funds made available for post18 secondary vocational education under section 122(b)

19 for any fiscal year to eligible institutions within the

20 State in accordance with paragraph (2).

21 (2) ALLOCATION.—Each eligible institution in

22 the State having an application approved under sec23 tion 134 for a fiscal year shall be allocated an

24 amount that bears the same relationship to the

25 amount of funds made available for postsecondary
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•S 1186 IS

1 vocational education under section 122(b) for the

2 fiscal year as the number of Pell Grant recipients

3 and recipients of assistance from the Bureau of In4 dian Affairs enrolled for the preceding fiscal year by

5 such eligible institution in vocational education pro6 grams that do not exceed 2 years in duration bears

7 to the number of such recipients enrolled in such

8 programs within the State for such fiscal year.

9 (3) MINIMUM ALLOCATION.—

10 (A) IN GENERAL.—Except as provided in

11 subparagraph (B), no eligible institution shall

12 receive an allocation under paragraph (2) un13 less the amount allocated to the eligible institu14 tion under paragraph (2) is not less than

15 $65,000.

16 (B) WAIVER.—The eligible agency may

17 waive the application of subparagraph (A) in

18 any case in which the eligible institution is lo19 cated in a rural, sparsely populated area.

20 (C) REALLOCATION.—Any amounts that

21 are not allocated by reason of subparagraph (A)

22 or (B) shall be reallocated to eligible institu23 tions that meet the requirements of subpara24 graph (A) or (B) in accordance with the provi25 sions of this section.
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•S 1186 IS

1 (4) DEFINITION OF PELL GRANT RECIPIENT.—

2 The term ‘‘Pell Grant recipient’’ means a recipient

3 of financial aid under subpart 1 of part A of title

4 IV of the Higher Education Act of 1965 (20 U.S.C.

5 1070a).

6 (b) ALTERNATIVE ALLOCATION.—An eligible agency

7 may allocate funds made available for postsecondary edu8 cation under section 122(b) for a fiscal year using an al9 ternative formula if the eligible agency demonstrates to

10 the Secretary’s satisfaction that—

11 (1) the alternative formula better meets the

12 purpose of this title; and

13 (2)(A) the formula described in subsection (a)

14 does not result in an allocation of funds to the eligi15 ble institutions that serve the highest numbers or

16 percentages of low-income students; and

17 (B) the alternative formula will result in such

18 a distribution.

19 SEC. 133. LOCAL ACTIVITIES.

20 (a) MANDATORY.—Funds made available to a local

21 educational agency or an eligible institution under this

22 subtitle shall be used—

23 (1) to conduct vocational education programs,

24 and technological education programs related to vo25 cational education, that further student achievement;
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•S 1186 IS

1 (2) to provide services and activities that are of

2 sufficient size, scope, and quality to be effective;

3 (3) to integrate academic education with voca4 tional education for students participating in voca5 tional education;

6 (4) to link secondary education (as determined

7 under State law) and postsecondary education, in8 cluding implementing tech-prep programs;

9 (5) to provide professional development activi10 ties to teachers, counselors, and administrators, in11 cluding—

12 (A) inservice and preservice training in

13 state-of-the-art vocational education programs;

14 (B) internship programs that provide busi15 ness experience to teachers; and

16 (C) programs designed to train teachers

17 specifically in the use and application of tech18 nology;

19 (6) to improve or expand the use of technology

20 in vocational instruction, including professional de21 velopment in the use of technology, which may in22 clude distance learning;

23 (7) to expand, improve, and modernize quality

24 vocational education programs;
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•S 1186 IS

1 (8) to provide access to quality vocational edu2 cation programs for students, including students

3 who are members of the populations described in

4 section 124(c)(16);

5 (9) to develop and implement performance man6 agement systems and evaluations; and

7 (10) to promote gender equity in secondary and

8 postsecondary vocational education.

9 (b) PERMISSIVE.—Funds made available to a local

10 educational agency or an eligible institution under this

11 subtitle may be used—

12 (1) to carry out student internships;

13 (2) to provide guidance and counseling for stu14 dents participating in vocational education pro15 grams;

16 (3) to provide vocational education programs

17 for adults and school dropouts to complete their sec18 ondary school education;

19 (4) to acquire and adapt equipment, including

20 instructional aids;

21 (5) to support vocational student organizations;

22 (6) to provide assistance to students who have

23 participated in services and activities under this sub24 title in finding an appropriate job and continuing

25 their education; and
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•S 1186 IS

1 (7) to support other activities that are consist2 ent with the purpose of this title.

3 SEC. 134. LOCAL APPLICATION.

4 (a) IN GENERAL.—Each local educational agency or

5 eligible institution desiring assistance under this subtitle

6 shall submit an application to the eligible agency at such

7 time, in such manner, and accompanied by such informa8 tion as the eligible agency (in consultation with such other

9 educational entities as the eligible agency determines to

10 be appropriate) may require.

11 (b) CONTENTS.—Each application shall, at a mini12 mum—

13 (1) describe how the vocational education activi14 ties will be carried out pertaining to meeting the ex15 pected levels of performance;

16 (2) describe the process that will be used to

17 independently evaluate and continuously improve the

18 performance of the local educational agency or eligi19 ble institution, as appropriate; and

20 (3) describe how the local educational agency or

21 eligible institution, as appropriate, will consult with

22 students, parents, business, labor organizations, and

23 other interested individuals, in carrying out activities

24 under this subtitle.
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1 Subtitle B—Tech-Prep Education

2 SEC. 151. SHORT TITLE.

3 This subtitle may be cited as the ‘‘Tech-Prep Edu4 cation Act’’.

5 SEC. 152. PURPOSES.

6 The purposes of this subtitle are—

7 (1) to provide implementation grants to consor8 tia of local educational agencies, postsecondary edu9 cational institutions, and employers or labor organi10 zations, for the development and operation of pro11 grams designed to provide a tech-prep education

12 program leading to a 2-year associate degree or a 2-

13 year certificate;

14 (2) to provide, in a systematic manner, strong,

15 comprehensive links among secondary schools, post16 secondary educational institutions, and local or re17 gional employers, or labor organizations; and

18 (3) to support the use of contextual, authentic,

19 and applied teaching and curriculum based on each

20 State’s academic, occupational, and employability

21 standards.

22 SEC. 153. DEFINITIONS.

23 (a) In this subtitle:

24 (1) ARTICULATION AGREEMENT.—The term

25 ‘‘articulation agreement’’ means a written commit-
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1 ment to a program designed to provide students with

2 a non duplicative sequence of progressive achieve3 ment leading to degrees or certificates in a tech-prep

4 education program.

5 (2) COMMUNITY COLLEGE.—The term ‘‘commu6 nity college’’—

7 (A) has the meaning provided in section

8 1201(a) of the Higher Education Act of 1965

9 (20 U.S.C. 1141) for an institution which pro10 vides not less than a 2-year program which is

11 acceptable for full credit toward a bachelor’s de12 gree; and

13 (B) includes tribally controlled community

14 colleges.

15 (3) TECH-PREP PROGRAM.—The term ‘‘tech16 prep program’’ means a program of study that—

17 (A) combines at a minimum 2 years of sec18 ondary education (as determined under State

19 law) and a minimum 2 years of postsecondary

20 education in a nonduplicative, sequential course

21 of study;

22 (B) integrates academic and vocational in23 struction, and utilizes work-based and worksite

24 learning where appropriate and available;
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1 (C) provides technical preparation in a ca2 reer field such as engineering technology, ap3 plied science, a mechanical, industrial, or prac4 tical art or trade, agriculture, health occupa5 tions, business, or applied economics;

6 (D) builds student competence in mathe7 matics, science, communications, economics,

8 and workplace skills, through applied, contex9 tual academics, and integrated instruction in a

10 coherent sequence of courses;

11 (E) leads to an associate or a bacca12 laureate degree or a certificate in a specific ca13 reer field; and

14 (F) leads to placement in appropriate em15 ployment or further education.

16 SEC. 154. PROGRAM AUTHORIZED.

17 (a) DISCRETIONARY AMOUNTS.—

18 (1) IN GENERAL.—For any fiscal year for

19 which the amount appropriated under section 158 to

20 carry out this subtitle is equal to or less than

21 $50,000,000, the Secretary shall award grants for

22 tech-prep education programs to consortia of—

23 (A) local educational agencies, intermedi24 ate educational agencies or area vocational edu25 cation schools serving secondary school stu-
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1 dents, or secondary schools funded by the Bu2 reau of Indian Affairs;

3 (B)(i) nonprofit institutions of higher edu4 cation that offer—

5 (I) a 2-year associate degree program,

6 or a 2-year certificate program, and are

7 qualified as institutions of higher education

8 pursuant to section 481(a) of the Higher

9 Education Act of 1965 (20 U.S.C.

10 1088(a)), including institutions receiving

11 assistance under the Tribally Controlled

12 Community College Assistance Act of 1978

13 (25 U.S.C. 1801 et seq.) and tribally con14 trolled postsecondary vocational institu15 tions; or

16 (II) a 2-year apprenticeship program

17 that follows secondary instruction,

18 if such nonprofit institutions of higher edu19 cation are not prohibited from receiving assist20 ance under part B of the Higher Education Act

21 of 1965 (20 U.S.C. 1071 et seq.) pursuant to

22 the provisions of section 435(a)(3) of such Act

23 (20 U.S.C. 1083(a)); or

24 (ii) proprietary institutions of higher edu25 cation which offer a 2-year associate degree
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1 program and which are qualified as institutions

2 of higher education pursuant to section 481(a)

3 of the Higher Education Act of 1965 (20

4 U.S.C. 1088(a)) if such proprietary institutions

5 of higher education are not subject to a default

6 management plan required by the Secretary; or

7 (C) employers or labor organizations.

8 (2) SPECIAL RULE.—A consortium described in

9 paragraph (1) may include 1 or more institutions of

10 higher education that award baccalaureate degrees.

11 (b) STATE GRANTS.—

12 (1) IN GENERAL.—For any fiscal year for

13 which the amount made available under section 158

14 to carry out this subtitle exceeds $50,000,000, the

15 Secretary shall allot such amount among the States

16 in the same manner as funds are allotted to States

17 under paragraphs (2), (3), and (4) of section 111(a).

18 (2) PAYMENTS TO ELIGIBLE AGENCIES.—The

19 Secretary shall make a payment in the amount of a

20 State’s allotment under this paragraph to the eligi21 ble agency that serves the State and has an applica22 tion approved under paragraph (4).

23 (3) AWARD BASIS.—From amounts made avail24 able to each eligible agency under this subsection,

25 the eligible agency shall award grants, on a competi-
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1 tive basis or on the basis of a formula determined

2 by the eligible agency, for tech-prep education pro3 grams to consortia described in subsection (a).

4 (4) STATE APPLICATION.—Each eligible agency

5 desiring assistance under this subtitle shall submit

6 an application to the Secretary at such time, in such

7 manner, and accompanied by such information as

8 the Secretary may require.

9 SEC. 155. TECH-PREP EDUCATION PROGRAMS.

10 (a) GENERAL AUTHORITY.—Each consortium shall

11 use amounts provided through the grant to develop and

12 operate a tech-prep education program.

13 (b) CONTENTS OF PROGRAM.—Any such tech-prep

14 program shall—

15 (1) be carried out under an articulation agree16 ment between the participants in the consortium;

17 (2) consist of at least 2 years of secondary

18 school preceding graduation and 2 years or more of

19 higher education, or an apprenticeship program of at

20 least 2 years following secondary instruction, with a

21 common core of required proficiency in mathematics,

22 science, communications, and technologies designed

23 to lead to an associate or baccalaureate degree or a

24 certificate in a specific career field;
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1 (3) include the development of tech-prep edu2 cation program curricula for both secondary and

3 postsecondary levels that—

4 (A) meets challenging academic standards

5 developed by the State;

6 (B) links secondary schools and 2-year

7 postsecondary institutions, and where possible

8 and practicable, 4-year institutions of higher

9 education through nonduplicative sequences of

10 courses in career fields;

11 (C) uses, where appropriate and available,

12 work-based or worksite learning in conjunction

13 with business and industry; and

14 (D) uses educational technology and dis15 tance learning, as appropriate, to involve all the

16 consortium partners more fully in the develop17 ment and operation of programs.

18 (4) include a professional development program

19 for academic, vocational, and technical teachers

20 that—

21 (A) is designed to train teachers to effec22 tively implement tech-prep education curricula;

23 (B) provides for joint training for teachers

24 from all participants in the consortium;
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1 (C) is designed to ensure that teachers

2 stay current with the needs, expectations, and

3 methods of business and industry;

4 (D) focuses on training postsecondary edu5 cation faculty in the use of contextual and ap6 plied curricula and instruction; and

7 (E) provides training in the use and appli8 cation of technology;

9 (5) include training programs for counselors de10 signed to enable counselors to more effectively—

11 (A) make tech-prep education opportuni12 ties known to students interested in such activi13 ties;

14 (B) ensure that such students successfully

15 complete such programs;

16 (C) ensure that such students are placed in

17 appropriate employment; and

18 (D) stay current with the needs, expecta19 tions, and methods of business and industry;

20 (6) provide equal access to the full range of

21 technical preparation programs to individuals who

22 are members of populations described in section

23 124(c)(16), including the development of tech-prep

24 education program services appropriate to the needs

25 of such individuals; and
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1 (7) provide for preparatory services that assist

2 all participants in such programs.

3 (c) ADDITIONAL AUTHORIZED ACTIVITIES.—Each

4 such tech-prep program may—

5 (1) provide for the acquisition of tech-prep edu6 cation program equipment;

7 (2) as part of the program’s planning activities,

8 acquire technical assistance from State or local enti9 ties that have successfully designed, established and

10 operated tech-prep programs;

11 (3) acquire technical assistance from State or

12 local entities that have designed, established, and op13 erated tech-prep programs that have effectively used

14 educational technology and distance learning in the

15 delivery of curricula and services and in the articula16 tion process; and

17 (4) establish articulation agreements with insti18 tutions of higher education, labor organizations, or

19 businesses located outside of the State served by the

20 consortium, especially with regard to using distance

21 learning and educational technology to provide for

22 the delivery of services and programs.

23 SEC. 156. APPLICATIONS.

24 (a) IN GENERAL.—Each consortium that desires to

25 receive a grant under this subtitle shall submit an applica-
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1 tion to the Secretary or the eligible agency, as appropriate,

2 at such time and in such manner as the Secretary or the

3 eligible agency, as appropriate, shall prescribe.

4 (b) THREE-YEAR PLAN.—Each application submit5 ted under this section shall contain a 3-year plan for the

6 development and implementation of activities under this

7 subtitle.

8 (c) APPROVAL.—The Secretary or the eligible agency,

9 as appropriate, shall approve applications based on the po10 tential of the activities described in the application to cre11 ate an effective tech-prep education program described in

12 section 155.

13 (d) SPECIAL CONSIDERATION.—The Secretary or the

14 eligible agency, as appropriate, shall give special consider15 ation to applications that—

16 (1) provide for effective employment placement

17 activities or the transfer of students to 4-year insti18 tutions of higher education;

19 (2) are developed in consultation with 4-year in20 stitutions of higher education;

21 (3) address effectively the needs of populations

22 described in section 124(c)(16);

23 (4) provide education and training in areas or

24 skills where there are significant workforce short-
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1 ages, including the information technology industry;

2 and

3 (5) demonstrate how tech-prep programs will

4 help students meet high academic and employability

5 competencies.

6 (e) EQUITABLE DISTRIBUTION OF ASSISTANCE.—In

7 awarding grants under this subtitle, the Secretary shall

8 ensure an equitable distribution of assistance among

9 States, and the Secretary or the eligible agency, as appro10 priate, shall ensure an equitable distribution of assistance

11 between urban and rural consortium participants.

12 (f) NOTICE.—

13 (1) IN GENERAL.—In the case of grants to be

14 awarded by the Secretary, each consortium that sub15 mits an application under this section shall provide

16 notice of such submission and a copy of such appli17 cation to the State educational agency and the State

18 agency for higher education of the State in which

19 the consortium is located.

20 (2) NOTIFICATION.—The Secretary shall notify

21 the State educational agency and the State agency

22 for higher education of a State each time a consor23 tium located in the State is selected to receive a

24 grant under this subtitle.
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1 SEC. 157. AUTHORIZATION OF APPROPRIATIONS.

2 There are authorized to be appropriated to carry out

3 this subtitle such sums as may be necessary for each of

4 the fiscal years 1999 through 2004.

5 Subtitle C—General Provisions

6 SEC. 161. ADMINISTRATIVE PROVISIONS.

7 (a) SUPPLEMENT NOT SUPPLANT.—Funds made

8 available under this title for vocational education activities

9 shall supplement, and shall not supplant, other public

10 funds expended to carry out vocational education and

11 tech-prep activities.

12 (b) MAINTENANCE OF EFFORT.—

13 (1) DETERMINATION.—No payments shall be

14 made under this title for any fiscal year to an eligi15 ble agency for vocational education or tech-prep ac16 tivities unless the Secretary determines that the fis17 cal effort per student or the aggregate expenditures

18 of the State for vocational education for the fiscal

19 year preceding the fiscal year for which the deter20 mination is made, equaled or exceeded such effort or

21 expenditures for vocational education for the second

22 fiscal year preceding the fiscal year for which the de23 termination is made.

24 (2) WAIVER.—The Secretary may waive the re25 quirements of this section, with respect to not more

26 than 5 percent of expenditures by any eligible agen-
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1 cy for 1 fiscal year only, on making a determination

2 that such waiver would be equitable due to excep3 tional or uncontrollable circumstances affecting the

4 ability of the applicant to meet such requirements,

5 such as a natural disaster or an unforeseen and pre6 cipitous decline in financial resources. No level of

7 funding permitted under such a waiver may be used

8 as the basis for computing the fiscal effort or aggre9 gate expenditures required under this section for

10 years subsequent to the year covered by such waiver.

11 The fiscal effort or aggregate expenditures for the

12 subsequent years shall be computed on the basis of

13 the level of funding that would, but for such waiver,

14 have been required.

15 (c) REPRESENTATION.—The eligible agency shall

16 provide representation to the statewide partnership.

17 SEC. 162. EVALUATION, IMPROVEMENT, AND ACCOUNT18 ABILITY.

19 (a) LOCAL EVALUATION.—Each eligible agency shall

20 evaluate annually the vocational education and tech-prep

21 activities of each local educational agency or eligible insti22 tution receiving assistance under this title, using the per23 formance measures established under section 112.

24 (b) IMPROVEMENT ACTIVITIES.—If, after reviewing

25 the evaluation, an eligible agency determines that a local
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1 educational agency or eligible institution is not making

2 substantial progress in achieving the purpose of this title,

3 the eligible agency may work jointly with the local edu4 cational agency or eligible institution, respectively, to de5 velop an improvement plan. If, after not more than 2 years

6 of implementation of the improvement plan, the eligible

7 agency determines that the local educational agency or eli8 gible institution, respectively, is not making substantial

9 progress, the eligible agency shall take whatever corrective

10 action the eligible agency deems necessary, which may in11 clude termination of funding or the implementation of al12 ternative service arrangements, consistent with State law.

13 The eligible agency shall take corrective action under the

14 preceding sentence only after the eligible agency has pro15 vided technical assistance to the local educational agency

16 or eligible institution and shall ensure, to the extent prac17 ticable, that any corrective action the eligible agency takes

18 allows for continued services to and activities for individ19 uals served by the local educational agency or eligible in20 stitution, respectively.

21 (c) TECHNICAL ASSISTANCE.—If the Secretary deter22 mines that an eligible agency is not properly implementing

23 the eligible agency’s responsibilities under section 124, or

24 is not making substantial progress in meeting the purpose

25 of this title, based on the performance measures and ex-
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1 pected levels of performance under section 112 included

2 in the eligible agency’s State plan, the Secretary shall

3 work with the eligible agency to implement improvement

4 activities.

5 (d) WITHHOLDING OF FEDERAL FUNDS.—If, after

6 a reasonable time, but not earlier than 1 year after imple7 menting activities described in subsection (c), the Sec8 retary determines that the eligible agency is not making

9 sufficient progress, based on the eligible agency’s perform10 ance measures and expected levels of performance, the

11 Secretary, after notice and opportunity for a hearing, shall

12 withhold from the eligible agency all, or a portion, of the

13 eligible agency’s grant funds under this subtitle. The Sec14 retary may use funds withheld under the preceding sen15 tence to provide, through alternative arrangements, serv16 ices, and activities within the State to meet the purpose

17 of this title.

18 SEC. 163. NATIONAL ACTIVITIES.

19 The Secretary may, directly or through grants, con20 tracts, or cooperative agreements, carry out research, de21 velopment, dissemination, evaluation, capacity-building,

22 and technical assistance activities that carry out the pur23 pose of this title.
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1 SEC. 164. NATIONAL ASSESSMENT OF VOCATIONAL EDU2 CATION PROGRAMS.

3 (a) IN GENERAL.—The Secretary shall conduct a na4 tional assessment of vocational education programs as5 sisted under this title, through studies and analyses con6 ducted independently through competitive awards.

7 (b) INDEPENDENT ADVISORY PANEL.—The Sec8 retary shall appoint an independent advisory panel, con9 sisting of vocational education administrators, educators,

10 researchers, and representatives of labor organizations,

11 business, parents, guidance and counseling professionals,

12 and other relevant groups, to advise the Secretary on the

13 implementation of such assessment, including the issues

14 to be addressed and the methodology of the studies in15 volved, and the findings and recommendations resulting

16 from the assessment. The panel shall submit to the Com17 mittee on Education and the Workforce of the House of

18 Representatives, the Committee on Labor and Human Re19 sources of the Senate, and the Secretary an independent

20 analysis of the findings and recommendations resulting

21 from the assessment. The Federal Advisory Committee

22 Act (5 U.S.C. App.) shall not apply to the panel estab23 lished under this subsection.

24 (c) CONTENTS.—The assessment required under sub25 section (a) shall include descriptions and evaluations of—
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1 (1) the effect of the vocational education pro2 grams assisted under this title on State and tribal

3 administration of vocational education programs and

4 on local vocational education practices, including the

5 capacity of State, tribal, and local vocational edu6 cation systems to address the purpose of this title;

7 (2) expenditures at the Federal, State, tribal,

8 and local levels to address program improvement in

9 vocational education, including the impact of Federal

10 allocation requirements (such as within-State dis11 tribution formulas) on the delivery of services;

12 (3) preparation and qualifications of teachers of

13 vocational and academic curricula in vocational edu14 cation programs, as well as shortages of such teach15 ers;

16 (4) participation in vocational education pro17 grams;

18 (5) academic and employment outcomes of vo19 cational education, including analyses of—

20 (A) the extent and success of integration

21 of academic and vocational curricula; and

22 (B) the degree to which vocational edu23 cation is relevant to subsequent employment or

24 participation in postsecondary education;
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1 (6) employer involvement in, and satisfaction

2 with, vocational education programs; and

3 (7) the effect of performance measures, and

4 other measures of accountability, on the delivery of

5 vocational education services.

6 (d) CONSULTATION.—

7 (1) IN GENERAL.—The Secretary shall consult

8 with the Committee on Education and the Workforce

9 of the House of Representatives and the Committee

10 on Labor and Human Resources of the Senate in

11 the design and implementation of the assessment re12 quired under subsection (a).

13 (2) REPORTS.—The Secretary shall submit to

14 the Committee on Education and the Workforce of

15 the House of Representatives, the Committee on

16 Labor and Human Resources of the Senate, and the

17 Secretary—

18 (A) an interim report regarding the assess19 ment on or before July 1, 2001; and

20 (B) a final report, summarizing all studies

21 and analyses that relate to the assessment and

22 that are completed after the assessment, on or

23 before July 1, 2002.

24 (3) PROHIBITION.—Notwithstanding any other

25 provision of law or regulation, the reports required
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1 by this subsection shall not be subject to any review

2 outside of the Department of Education before their

3 transmittal to the Committee on Education and the

4 Workforce of the House of Representatives, the

5 Committee on Labor and Human Resources of the

6 Senate, and the Secretary, but the President, the

7 Secretary, and the independent advisory panel estab8 lished under subsection (b) may make such addi9 tional recommendations to Congress with respect to

10 the assessment as the President, the Secretary, or

11 the panel determine to be appropriate.

12 SEC. 165. NATIONAL RESEARCH CENTER.

13 (a) GENERAL AUTHORITY.—

14 (1) IN GENERAL.—The Secretary, through

15 grants, contracts, or cooperative agreements, may

16 establish 1 or more national centers in the areas

17 of—

18 (A) applied research and development; and

19 (B) dissemination and training.

20 (2) CONSULTATION.—The Secretary shall con21 sult with the States prior to establishing 1 or more

22 such centers.

23 (3) ELIGIBLE ENTITIES.—Entities eligible to

24 receive funds under this section are institutions of

25 higher education, other public or private nonprofit
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1 organizations or agencies, and consortia of such in2 stitutions, organizations, or agencies.

3 (b) ACTIVITIES.—

4 (1) IN GENERAL.—The national center or cen5 ters shall carry out such activities as the Secretary

6 determines to be appropriate to assist State and

7 local recipients of funds under this title to achieve

8 the purpose of this title, which may include the re9 search and evaluation activities in such areas as—

10 (A) the integration of vocational and aca11 demic instruction, secondary and postsecondary

12 instruction;

13 (B) effective inservice and preservice

14 teacher education that assists vocational edu15 cation systems;

16 (C) performance measures and expected

17 levels of performance that serve to improve vo18 cational education programs and student

19 achievement;

20 (D) effects of economic changes on the

21 kinds of knowledge and skills required for em22 ployment or participation in postsecondary edu23 cation;

24 (E) longitudinal studies of student achieve25 ment; and
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1 (F) dissemination and training activities

2 related to the applied research and demonstra3 tion activities described in this subsection,

4 which may also include—

5 (i) serving as a repository for infor6 mation on vocational and technological

7 skills, State academic standards, and relat8 ed materials; and

9 (ii) developing and maintaining na10 tional networks of educators who facilitate

11 the development of vocational education

12 systems.

13 (2) REPORT.—The center or centers conducting

14 the activities described in paragraph (1) annually

15 shall prepare a report of key research findings of

16 such center or centers and shall submit copies of the

17 report to the Secretary, the Secretary of Labor, and

18 the Secretary of Health and Human Services. The

19 Secretary shall submit that report to the Committee

20 on Education and the Workforce of the House of

21 Representatives, the Committee on Labor and

22 Human Resources of the Senate, the Library of

23 Congress, and each eligible agency.

24 (c) REVIEW.—The Secretary shall—
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1 (1) consult at least annually with the national

2 center or centers and with experts in education to

3 ensure that the activities of the national center or

4 centers meet the needs of vocational education pro5 grams; and

6 (2) undertake an independent review of each

7 award recipient under this section prior to extending

8 an award to such recipient beyond a 5-year period.

9 SEC. 166. DATA SYSTEMS.

10 (a) IN GENERAL.—The Secretary shall maintain a

11 data system to collect information about, and report on,

12 the condition of vocational education and on the effective13 ness of State and local programs, services, and activities

14 carried out under this title in order to provide the Sec15 retary and Congress, as well as Federal, State, local, and

16 tribal agencies, with information relevant to improvement

17 in the quality and effectiveness of vocational education.

18 The Secretary annually shall report to Congress on the

19 Secretary’s analysis of performance data collected each

20 year pursuant to this title.

21 (b) DATA SYSTEM.—In maintaining the data system,

22 the Secretary shall ensure that the data system is compat23 ible with other Federal information systems.

24 (c) ASSESSMENTS.—As a regular part of its assess25 ments, the National Center for Education Statistics shall
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1 collect and report information on vocational education for

2 a nationally representative sample of students. Such as3 sessment may include international comparisons.

4 Subtitle D—Authorization of

5 Appropriations

6 SEC. 171. AUTHORIZATION OF APPROPRIATIONS.

7 There are authorized to be appropriated to carry out

8 subtitle (A), and sections 163, 164, 165, and 166, such

9 sums as may be necessary for each of the fiscal years 1999

10 through 2004.

11 Subtitle E—Repeal

12 SEC. 181. REPEAL.

13 (a) REPEAL.—The Carl D. Perkins Vocational and

14 Applied Technology Education Act (20 U.S.C. 2301 et

15 seq.) is repealed.

16 (b) REFERENCES TO CARL D. PERKINS VOCATIONAL

17 AND APPLIED TECHNOLOGY EDUCATION ACT.—

18 (1) IMMIGRATION AND NATIONALITY ACT.—Sec19 tion 245A(h)(4)(C) of the Immigration and Nation20 ality Act (8 U.S.C. 1255a(h)(4)(C)) is amended by

21 striking ‘‘Vocational Education Act of 1963’’ and in22 serting ‘‘Carl D. Perkins Vocational and Applied

23 Technology Education Act of 1997’’.

24 (2) NATIONAL DEFENSE AUTHORIZATION

25 ACT.—Section 4461 of the National Defense Author-
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1 ization Act for Fiscal Year 1993 (10 U.S.C. 1143

2 note) is amended—

3 (A) by striking paragraph (4); and

4 (B) by redesignating paragraphs (5) and

5 (6) as paragraphs (4) and (5), respectively.

6 (3) ELEMENTARY AND SECONDARY EDUCATION

7 ACT OF 1965.—The Elementary and Secondary Edu8 cation Act of 1965 (20 U.S.C. 6301 et seq.) is

9 amended—

10 (A) in section 1114(b)(2)(C)(v) (20 U.S.C.

11 6314(b)(2)(C)(v)), by striking ‘‘Carl D. Perkins

12 Vocational and Applied Technology Education

13 Act,’’ and inserting ‘‘Carl D. Perkins Voca14 tional and Applied Technology Education Act of

15 1997’’;

16 (B) in section 9115(b)(5) (20 U.S.C.

17 7815(b)(5)), by striking ‘‘Carl D. Perkins Voca18 tional and Applied Technology Education Act’’

19 and inserting ‘‘Carl D. Perkins Vocational and

20 Applied Technology Education Act of 1997’’;

21 (C) in section 14302(a)(2) (20 U.S.C.

22 8852(a)(2))—

23 (i) by striking subparagraph (C); and
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1 (ii) by redesignating subparagraphs

2 (D), (E), and (F) as subparagraphs (C),

3 (D), and (E), respectively; and

4 (D) in the matter preceding subparagraph

5 (A) of section 14307(a)(1) (20 U.S.C.

6 8857(a)(1)), by striking ‘‘Carl D. Perkins Voca7 tional and Applied Technology Education Act’’

8 and inserting ‘‘Carl D. Perkins Vocational and

9 Applied Technology Education Act of 1997’’.

10 (4) EQUITY IN EDUCATIONAL LAND-GRANT STA11 TUS ACT OF 1994.—Section 533(c)(4)(A) of the Eq12 uity in Educational Land-Grant Status Act of 1994

13 (7 U.S.C. 301 note) is amended by striking ‘‘(20

14 U.S.C. 2397h(3)’’ and inserting ‘‘, as such section

15 was in effect on the day preceding the date of enact16 ment of the Carl D. Perkins Vocational and Applied

17 Technology Education Act of 1997’’.

18 (5) IMPROVING AMERICA’S SCHOOLS ACT OF

19 1994.—Section 563 of the Improving America’s

20 Schools Act of 1994 (20 U.S.C. 6301 note) is

21 amended by striking ‘‘the date of enactment of an

22 Act reauthorizing the Carl D. Perkins Vocational

23 and Applied Technology Education Act (20 U.S.C.

24 2301 et seq.)’’ and inserting ‘‘July 1, 1999’’.
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1 (6) INTERNAL REVENUE CODE OF 1986.—Sec2 tion 135(c)(3)(B) of the Internal Revenue Code of

3 1986 (26 U.S.C. 135(c)(3)(B)) is amended—

4 (A) by striking ‘‘subparagraph (C) or (D)

5 of section 521(3) of the Carl D. Perkins Voca6 tional Education Act’’ and inserting ‘‘subpara7 graph (C) or (D) of section 2(3) of the

8 Workforce Investment Partnership Act of

9 1997’’; and

10 (B) by striking ‘‘any State (as defined in

11 section 521(27) of such Act)’’ and inserting

12 ‘‘any State or outlying area (as the terms

13 ‘State’ and ‘outlying area’ are defined in section

14 2 of such Act)’’.

15 (7) APPALACHIAN REGIONAL DEVELOPMENT

16 ACT OF 1965.—Section 214(c) of the Appalachian

17 Regional Development Act of 1965 (40 U.S.C. App.

18 214(c)) (as amended by subsection (c)(5)) is further

19 amended by striking ‘‘Carl D. Perkins Vocational

20 Education Act’’ and inserting ‘‘Carl D. Perkins Vo21 cational and Applied Technology Education Act of

22 1997’’.

23 (8) VOCATIONAL EDUCATION AMENDMENTS OF

24 1968.—Section 104 of the Vocational Education

25 Amendments of 1968 (82 Stat. 1091) is amended by
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1 striking ‘‘section 3 of the Carl D. Perkins Vocational

2 Education Act’’ and inserting ‘‘the Carl D. Perkins

3 Vocational and Applied Technology Education Act of

4 1997’’.

5 (9) OLDER AMERICANS ACT OF 1965.—The

6 Older Americans Act of 1965 (42 U.S.C. 3001 et

7 seq.) is amended—

8 (A) in section 502(b)(1)(N)(i) (42 U.S.C.

9 3056(b)(1)(N)(i)), by striking ‘‘or the Carl D.

10 Perkins Vocational and Applied Technology

11 Education Act (20 U.S.C. 2301 et seq.)’’; and

12 (B) in section 505(d)(2) (42 U.S.C.

13 3056c(d)(2))—

14 (i) by striking ‘‘employment and

15 training programs’’ and inserting

16 ‘‘workforce investment activities’’; and

17 (ii) by striking ‘‘the Carl D. Perkins

18 Vocational and Applied Technology Edu19 cation Act (20 U.S.C. 2301 et seq.)’’ and

20 inserting ‘‘the Carl D. Perkins Vocational

21 and Applied Technology Education Act of

22 1997’’.
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1 TITLE II—ADULT EDUCATION

2 AND LITERACY

3 SEC. 201. SHORT TITLE.

4 This title may be cited as the ‘‘Adult Education and

5 Literacy Act’’.

6 SEC. 202. FINDINGS AND PURPOSE.

7 (a) FINDINGS.—Congress finds that—

8 (1) the National Adult Literacy Survey and

9 other studies have found that more than one-fifth of

10 American adults demonstrate very low literacy skills

11 that make it difficult for the adults to be economi12 cally self-sufficient, much less enter high-skill, high13 wage jobs;

14 (2) data from the National Adult Literacy Sur15 vey shows that adults with very low levels of literacy

16 are 10 times as likely to be poor as adults with high

17 levels of literacy; and

18 (3) our Nation’s well-being is dependent on the

19 knowledge and skills of all of our Nation’s citizens.

20 (b) PURPOSE.—It is the purpose of this title to create

21 a partnership among the Federal Government, States, and

22 localities to help provide for adult education and literacy

23 services so that adults who need such services, will, as ap24 propriate, be able to—
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1 (1) become literate and obtain the knowledge

2 and skills needed to compete in a global economy;

3 (2) complete a secondary school education; and

4 (3) have the education skills necessary to sup5 port the educational development of their children.

6 Subtitle A—Adult Education and

7 Literacy Programs

8 CHAPTER 1—FEDERAL PROVISIONS

9 SEC. 211. RESERVATION; GRANTS TO STATES; ALLOT10 MENTS.

11 (a) RESERVATION OF FUNDS FOR NATIONAL LEAD12 ERSHIP ACTIVITIES.—From the amount appropriated for

13 any fiscal year under section 246, the Secretary shall

14 reserve—

15 (1) 1.5 percent to carry out section 213;

16 (2) 2 percent to carry out section 243; and

17 (3) 1.5 percent to carry out section 245.

18 (b) GRANTS TO STATES.—From the sum appro19 priated under section 246 and not reserved under sub20 section (a) for a fiscal year, the Secretary shall award a

21 grant to each eligible agency having a State plan approved

22 under section 224 in an amount equal to the sum of the

23 initial allotment under subsection (c)(1) and the additional

24 allotment under subsection (c)(2) for the eligible agency
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1 for the fiscal year to enable the eligible agency to carry

2 out the activities assisted under this subtitle.

3 (c) ALLOTMENTS.—

4 (1) INITIAL ALLOTMENTS.—From the sum ap5 propriated under section 246 and not reserved under

6 subsection (a) for a fiscal year, the Secretary first

7 shall allot to each eligible agency having a State

8 plan approved under section 224 the following

9 amounts:

10 (A) $100,000 in the case of an eligible

11 agency serving the United States Virgin Is12 lands, Guam, American Samoa, the Common13 wealth of the Northern Mariana Islands, the

14 Republic of the Marshall Islands, the Federated

15 States of Micronesia, and the Republic of

16 Palau.

17 (B) $250,000, in the case of any other eli18 gible agency.

19 (2) ADDITIONAL ALLOTMENTS.—From the sum

20 appropriated under section 246, not reserved under

21 subsection (a), and not allotted under paragraph (1),

22 for any fiscal year, the Secretary shall allot to each

23 eligible agency an amount that bears the same rela24 tionship to such sum as the number of qualifying

25 adults in the State or outlying area served by the el-
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1 igible agency bears to the number of such adults in

2 all States and outlying areas.

3 (d) QUALIFYING ADULT.—For the purposes of this

4 subsection, the term ‘‘qualifying adult’’ means an adult

5 who—

6 (1) is at least 16 years of age;

7 (2) is beyond the age of compulsory school at8 tendance under the law of the State or outlying

9 area;

10 (3) does not possess a secondary school diploma

11 or its recognized equivalent; and

12 (4) is not enrolled in secondary school.

13 (e) SPECIAL RULE.—

14 (1) IN GENERAL.—From amounts made avail15 able under subsection (c) for the Republic of the

16 Marshall Islands, the Federated States of Microne17 sia, and the Republic of Palau, the Secretary shall

18 award grants to Guam, American Samoa, the Com19 monwealth of the Northern Mariana Islands, the Re20 public of the Marshall Islands, the Federated States

21 of Micronesia, or the Republic of Palau to carry out

22 activities described in this part in accordance with

23 the provisions of this subtitle that the Secretary de24 termines are not inconsistent with this subsection.
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1 (2) AWARD BASIS.—The Secretary shall award

2 grants pursuant to paragraph (1) on a competitive

3 basis and pursuant to recommendations from the

4 Pacific Region Educational Laboratory in Honolulu,

5 Hawaii.

6 (3) TERMINATION OF ELIGIBILITY.—Notwith7 standing any other provision of law, the Republic of

8 the Marshall Islands, the Federated States of Micro9 nesia, and the Republic of Palau shall not receive

10 any funds under this part for any fiscal year that

11 begins after September 30, 2004.

12 (4) ADMINISTRATIVE COSTS.—The Secretary

13 may provide not more than 5 percent of the funds

14 made available for grants under this subsection to

15 pay the administrative costs of the Pacific Region

16 Educational Laboratory regarding activities assisted

17 under this subsection.

18 (f) MAINTENANCE OF EFFORT.—

19 (1) IN GENERAL.—An eligible agency may re20 ceive a grant under this subtitle for any fiscal year

21 only if the Secretary finds that the amount expended

22 by the State for adult education and literacy, in the

23 second fiscal year preceding the fiscal year for which

24 the determination is made, was not less than 90 per25 cent of the amount expended for adult education and
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1 literacy in the third fiscal year preceding the fiscal

2 year for which the determination is made.

3 (2) WAIVER.—The Secretary may waive the re4 quirements of this subsection for 1 fiscal year only

5 if the Secretary determines that such a waiver is eq6 uitable due to exceptional or uncontrollable cir7 cumstances, such as a natural disaster or an unfore8 seen and precipitous decline in the financial re9 sources of the State.

10 (g) REALLOTMENT.—If the Secretary determines

11 that any amount of a State’s allotment under this section

12 for any fiscal year will not be required for carrying out

13 the program for which such amount has been allotted, the

14 Secretary shall make such amount available for reallot15 ment to 1 or more States on the basis that the Secretary

16 determines would best serve the purpose of this title.

17 SEC. 212. PERFORMANCE MEASURES AND EXPECTED

18 LEVELS OF PERFORMANCE.

19 (a) ESTABLISHMENT OF PERFORMANCE MEAS20 URES.—After consultation with eligible agencies, eligible

21 providers, and other interested parties (including rep22 resentatives of business, representatives of labor organiza23 tions, and institutions of higher education), the Secretary

24 shall establish and publish performance measures de25 scribed in this subsection that assess the progress of each
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1 eligible agency in enhancing and developing more fully the

2 literacy skills of the adult population in the State or outly3 ing area. The measures, at a minimum, shall include—

4 (1) demonstrated improvements in literacy skill

5 levels in reading and writing the English language,

6 numeracy, and problem solving;

7 (2) attainment of secondary school diplomas or

8 their recognized equivalent;

9 (3) placement in, retention in, or completion of,

10 postsecondary education, training, or unsubsidized

11 employment; and

12 (4) other performance measures the Secretary

13 determines necessary.

14 (b) EXPECTED LEVELS OF PERFORMANCE.—In de15 veloping a State plan, each eligible agency shall negotiate

16 with the Secretary the expected levels of performance for

17 the performance measures described in subsection (a).

18 SEC. 213. NATIONAL LEADERSHIP ACTIVITIES.

19 (a) AUTHORITY.—From the amount reserved under

20 section 211(a)(1) for any fiscal year, the Secretary may

21 establish a program of national leadership and evaluation

22 activities to enhance the quality of adult education and

23 literacy nationwide.

24 (b) METHOD OF FUNDING.—The Secretary may

25 carry out national leadership and evaluation activities di-
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1 rectly or through grants, contracts, or cooperative

2 agreements.

3 (c) USES OF FUNDS.—Funds made available to carry

4 out this section shall be used for—

5 (1) research, such as estimating the number of

6 adults functioning at the lowest levels of literacy

7 proficiency;

8 (2) demonstration of model and innovative pro9 grams, such as the development of models for basic

10 skill certificates, identification of effective strategies

11 for working with adults with learning disabilities and

12 with individuals with limited English proficiency who

13 are adults, and workplace literacy programs;

14 (3) dissemination, such as dissemination of in15 formation regarding promising practices resulting

16 from federally funded demonstration programs;

17 (4) evaluations and assessments, such as peri18 odic independent evaluations of activities assisted

19 under this subtitle and assessments of the condition

20 and progress of literacy in the United States;

21 (5) efforts to support capacity building at the

22 State and local levels, such as technical assistance in

23 program planning, assessment, evaluation, and mon24 itoring of activities under this subtitle;
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1 (6) data collection, such as improvement of

2 both local and State data systems through technical

3 assistance and development of model performance

4 data collection systems;

5 (7) professional development, such as technical

6 assistance activities to advance effective training

7 practices, identify exemplary professional develop8 ment projects, and disseminate new findings in adult

9 education training;

10 (8) technical assistance, such as endeavors that

11 aid distance learning, and promote and improve the

12 use of technology in the classroom; or

13 (9) other activities designed to enhance the

14 quality of adult education and literacy nationwide.

15 CHAPTER 2—STATE PROVISIONS

16 SEC. 221. STATE ADMINISTRATION.

17 (a) IN GENERAL.—Each eligible agency shall be re18 sponsible for the State administration of activities under

19 this subtitle, including—

20 (1) the development, submission, and implemen21 tation of the State plan;

22 (2) consultation with other appropriate agen23 cies, groups, and individuals that are involved in, or

24 interested in, the development and implementation

25 of activities assisted under this subtitle; and
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1 (3) coordination and nonduplication with other

2 Federal and State education, training, corrections,

3 public housing, and social service programs.

4 (b) STATE-IMPOSED REQUIREMENTS.—Whenever a

5 State imposes any rule or policy relating to the adminis6 tration and operation of activities funded under this sub7 title (including any rule or policy based on State interpre8 tation of any Federal law, regulation, or guideline), the

9 State shall identify the rule or policy as a State-imposed

10 requirement.

11 SEC. 222. STATE DISTRIBUTION OF FUNDS; STATE SHARE.

12 (a) STATE DISTRIBUTION OF FUNDS.—Each eligible

13 agency receiving a grant under this subtitle for a fiscal

14 year—

15 (1) shall use not less than 80 percent of the

16 grant funds to carry out section 225 and to award

17 grants and contracts under section 231 for the fiscal

18 year, of which not more than 10 percent of the sum

19 shall be available to carry out section 225 for the

20 fiscal year;

21 (2) shall use not more than 15 percent of the

22 grant funds to carry out State leadership activities

23 under section 223 for the fiscal year; and

24 (3) shall use not more than 5 percent of the

25 grant funds, or $80,000, whichever is greater, for
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1 administrative expenses of the eligible agency for the

2 fiscal year.

3 (b) STATE SHARE REQUIREMENT.—

4 (1) IN GENERAL.—In order to receive a grant

5 from the Secretary under section 211(b) each eligi6 ble agency shall provide an amount equal to 25 per7 cent of the total amount of funds expended for adult

8 education in the State, except that the Secretary

9 may decrease the amount of funds required under

10 this subsection for an eligible agency serving an out11 lying area.

12 (2) STATE’S SHARE.—An eligible agency’s

13 funds required under paragraph (1) may be in cash

14 or in kind, fairly evaluated, and shall include only

15 non-Federal funds that are used for adult education

16 and literacy activities in a manner that is consistent

17 with the purpose of this subtitle.

18 SEC. 223. STATE LEADERSHIP ACTIVITIES.

19 (a) IN GENERAL.—Each eligible agency shall use

20 funds made available under section 222(a)(2) for 1 or

21 more of the following activities:

22 (1) Professional development and training, in23 cluding training in the use of software and

24 technology.
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1 (2) Developing and disseminating curricula for

2 adult education and literacy activities.

3 (3) Monitoring and evaluating the quality of,

4 and improvement in, services and activities con5 ducted with assistance under this subtitle.

6 (4) Establishing challenging performance meas7 ures and levels of performance for literacy pro8 ficiency in order to assess program quality and im9 provement.

10 (5) Integration of literacy instruction and occu11 pational skill training, and promoting linkages with

12 employers.

13 (6) Linkages with postsecondary institutions.

14 (7) Supporting State or regional networks of

15 literacy resource centers.

16 (8) Other activities of statewide significance

17 that promote the purpose of this subtitle.

18 (b) COLLABORATION.—In carrying out this section,

19 eligible agencies shall collaborate where possible and avoid

20 duplicating efforts in order to maximize the impact of the

21 activities described in subsection (a).

22 SEC. 224. STATE PLAN.

23 (a) 3-YEAR PLANS.—

24 (1) IN GENERAL.—Each eligible agency desiring

25 a grant under this subtitle for any fiscal year shall
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1 submit to, or have on file with, the Secretary a 3-

2 year State plan.

3 (2) COMPREHENSIVE PLAN OR APPLICATION.—

4 The eligible agency may submit the State plan as

5 part of a comprehensive plan or application for Fed6 eral education assistance.

7 (b) PLAN CONTENTS.—In developing the State plan,

8 and any revisions to the State plan, the eligible agency

9 shall include in the State plan or revisions—

10 (1) an objective assessment of the needs of indi11 viduals in the State for adult education and literacy

12 activities, including individuals most in need or

13 hardest to serve, such as educationally disadvan14 taged adults, immigrants, individuals with limited

15 English proficiency, incarcerated individuals, home16 less individuals, recipients of public assistance, and

17 individuals with disabilities;

18 (2) a description of the adult education and lit19 eracy activities that will be carried out with any

20 funds received under this subtitle;

21 (3) a description of how the eligible agency will

22 evaluate annually the effectiveness of the adult edu23 cation and literacy activities based on the perform24 ance measures described in section 212;
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1 (4) a description of how the eligible agency will

2 ensure that the data reported to the eligible agency

3 from eligible providers under this subtitle and the

4 data the eligible agency reports to the Secretary are

5 complete, accurate, and reliable;

6 (5) a description of the performance measures

7 required under section 212(a) and how such per8 formance measures and the expected levels of per9 formance will ensure improvement of adult education

10 and literacy activities in the State or outlying area;

11 (6) an assurance that the funds received under

12 this subtitle will not be expended for any purpose

13 other than for activities under this subtitle;

14 (7) a description of how the eligible agency will

15 fund local activities in accordance with the priorities

16 described in section 242(a);

17 (8) a description of how the eligible agency will

18 determine which eligible providers are eligible for

19 funding in accordance with the preference described

20 in section 242(b);

21 (9) a description of how funds will be used for

22 State leadership activities, which activities may in23 clude professional development and training, instruc24 tional technology, and management technology;
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1 (10) an assurance that the eligible agency will

2 expend the funds under this subtitle only in a man3 ner consistent with fiscal requirement in section 241;

4 (11) a description of the process that will be

5 used for public participation and comment with re6 spect to the State plan;

7 (12) a description of how the eligible agency

8 will develop program strategies for populations that

9 include, at a minimum—

10 (A) low-income students;

11 (B) individuals with disabilities;

12 (C) single parents and displaced home13 makers; and

14 (D) individuals with multiple barriers to

15 educational enhancement;

16 (13) a description of the measures that will be

17 taken by the eligible agency to assure coordination

18 of and avoid duplication among—

19 (A) adult education activities authorized

20 under this subtitle;

21 (B) activities authorized under title III;

22 (C) programs authorized under the Wag23 ner-Peyser Act (29 U.S.C. 49 et seq.), title I of

24 the Rehabilitation Act of 1973 (29 U.S.C. 720

25 et seq.), part A of title IV of the Social Security
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1 Act (42 U.S.C. 601 et seq.), section 6(d) of the

2 Food Stamp Act of 1977 (7 U.S.C. 2015(d)),

3 and title V of the Older Americans Act of 1965

4 (42 U.S.C. 3056 et seq.);

5 (D) a work program authorized under sec6 tion 6(o) of the Food Stamp Act of 1977 (7

7 U.S.C. 2015(o));

8 (E) activities authorized under chapter 2

9 of title II of the Trade Act of 1974 (19 U.S.C.

10 2271 et seq.);

11 (F) activities authorized under chapter 41

12 of title 38, United States Code;

13 (G) activities carried out by the Bureau of

14 Apprenticeship and Training;

15 (H) training activities carried out by the

16 Department of Housing and Urban Develop17 ment; and

18 (I) programs authorized under State un19 employment compensation laws and the Federal

20 unemployment insurance program under titles

21 III, IX, and XII of the Social Security Act (42

22 U.S.C. 501 et seq., 1101 et seq., and 1321 et

23 seq.); and

24 (14) the description and information specified

25 in paragraphs (8) and (16) of section 304(b).
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1 (c) PLAN REVISIONS.—When changes in conditions

2 or other factors require substantial revisions to an ap3 proved State plan, the eligible agency shall submit a revi4 sion to the State plan to the Secretary.

5 (d) CONSULTATION.—The eligible agency shall—

6 (1) submit the State plan, and any revisions to

7 the State plan, to the Governor of the State for re8 view and comment; and

9 (2) ensure that any comments by the Governor

10 regarding the State plan, and any revision to the

11 State plan, are submitted to the Secretary.

12 (e) PLAN APPROVAL.—

13 (1) IN GENERAL.—The Secretary shall approve

14 a State plan, or a revision to an approved State

15 plan, only if the Secretary determines that—

16 (A) the State plan, or revision, respec17 tively, meets the requirements of this section;

18 and

19 (B) the State’s performance measures and

20 expected levels of performance under section

21 212 are sufficiently rigorous to meet the pur22 pose of this title.

23 (2) DISAPPROVAL.—The Secretary shall not fi24 nally disapprove a State plan, except after giving the
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1 eligible agency notice and an opportunity for a

2 hearing.

3 (3) PEER REVIEW.—The Secretary shall estab4 lish a peer review process to make recommendations

5 regarding the approval of State plans and revisions

6 to the State plan.

7 SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND

8 OTHER INSTITUTIONALIZED INDIVIDUALS.

9 (a) PROGRAM AUTHORIZED.—From funds made

10 available under section 222(a)(1) for a fiscal year, each

11 eligible agency shall carry out corrections education or

12 education for other institutionalized individuals.

13 (b) USES OF FUNDS.—The funds described in sub14 section (a) shall be used for the cost of educational pro15 grams for criminal offenders in corrections institutions

16 and for other institutionalized individuals, including aca17 demic programs for—

18 (1) basic education;

19 (2) special education programs as determined

20 by the State;

21 (3) bilingual programs, or English as a second

22 language programs; and

23 (4) secondary school credit programs.

24 (c) DEFINITION OF CRIMINAL OFFENDER.—
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1 (1) CRIMINAL OFFENDER.—The term ‘‘criminal

2 offender’’ means any individual who is charged with

3 or convicted of any criminal offense.

4 (2) CORRECTIONAL INSTITUTION.—The term

5 ‘‘correctional institution’’ means any—

6 (A) prison;

7 (B) jail;

8 (C) reformatory;

9 (D) work farm;

10 (E) detention center; or

11 (F) halfway house, community-based reha12 bilitation center, or any other similar institution

13 designed for the confinement or rehabilitation

14 of criminal offenders.

15 CHAPTER 3—LOCAL PROVISIONS

16 SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE

17 PROVIDERS.

18 (a) GRANTS.—From funds made available under sec19 tion 222(a)(1), each eligible agency shall award multiyear

20 grants or contracts to eligible providers within the State

21 to enable the eligible providers to develop, implement, and

22 improve adult education and literacy activities within the

23 State.

24 (b) SPECIAL RULE.—Each eligible agency receiving

25 funds under this subtitle shall ensure that all eligible pro-
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1 viders have direct and equitable access to apply for grants

2 or contracts under this section.

3 (c) REQUIRED LOCAL ACTIVITIES.—Each eligible

4 provider receiving a grant or contract under this subtitle

5 shall establish programs that provide instruction or serv6 ices, such as—

7 (1) adult education and literacy services; or

8 (2) English literacy programs.

9 SEC. 232. LOCAL APPLICATION.

10 Each eligible provider desiring a grant or contract

11 under this subtitle shall submit an application to the eligi12 ble agency containing such information and assurances as

13 the eligible agency may require, including—

14 (1) a description of how funds awarded under

15 this subtitle will be spent;

16 (2) how the expected levels of performance of

17 the eligible provider with respect to participant re18 cruitment, retention, and performance measures de19 scribed in section 212 will be met and reported to

20 the eligible agency; and

21 (3) a description of any cooperative arrange22 ments the eligible provider has with other agencies,

23 institutions, or organizations for the delivery of

24 adult education and literacy programs.
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1 SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

2 (a) IN GENERAL.—Subject to subsection (b), of the

3 sum that is made available under this subtitle to an eligi4 ble provider—

5 (1) not less than 95 percent shall be expended

6 for carrying out adult education and literacy activi7 ties; and

8 (2) the remaining amount, not to exceed 5 per9 cent, shall be used for planning, administration, per10 sonnel development, and interagency coordination.

11 (b) SPECIAL RULE.—In cases where the cost limits

12 described in subsection (a) are too restrictive to allow for

13 adequate planning, administration, personnel develop14 ment, and interagency coordination, the eligible agency

15 shall negotiate with the eligible provider in order to deter16 mine an adequate level of funds to be used for noninstruc17 tional purposes.

18 CHAPTER 4—GENERAL PROVISIONS

19 SEC. 241. ADMINISTRATIVE PROVISIONS.

20 (a) SUPPLEMENT NOT SUPPLANT.—Funds made

21 available for adult education and literacy activities under

22 this subtitle shall supplement and not supplant other

23 State, or local public funds expended for adult education

24 and literacy activities.

25 (b) REPRESENTATION.—The eligible agency shall

26 provide representation to the statewide partnership.
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1 SEC. 242. PRIORITIES AND PREFERENCES.

2 (a) PRIORITIES.—Each eligible agency and eligible

3 provider receiving assistance under this subtitle shall give

4 priority in using the assistance to adult education and lit5 eracy activities that—

6 (1) are built on a strong foundation of research

7 and effective educational practice;

8 (2) effectively employ advances in technology,

9 as appropriate, including the use of computers;

10 (3) provide learning in real life contexts to en11 sure that an individual has the skills needed to com12 pete in a global economy and exercise the rights and

13 responsibilities of citizenship;

14 (4) are staffed by well-trained instructors, coun15 selors, and administrators;

16 (5) are of sufficient intensity and duration for

17 participants to achieve substantial learning gains,

18 such as by earning a basic skills certificate that re19 flects skills acquisition and has meaning to

20 employers;

21 (6) establish measurable performance levels for

22 participant outcomes, such as levels of literacy

23 achieved and attainment of a secondary school di24 ploma or its recognized equivalent, that are tied to

25 challenging State performance levels for literacy

26 proficiency;
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1 (7) coordinate with other available resources in

2 the community, such as by establishing strong links

3 with elementary schools and secondary schools, post4 secondary institutions, 1-stop customer service cen5 ters, job training programs, and social service

6 agencies;

7 (8) offer flexible schedules and support services

8 (such as child care and transportation) that are nec9 essary to enable individuals, including individuals

10 with disabilities or other special needs, to attend and

11 complete programs; and

12 (9) maintain a high-quality information man13 agement system that has the capacity to report cli14 ent outcomes and to monitor program performance

15 against the State performance measures.

16 (b) PREFERENCES.—In determining which eligible

17 providers will receive funds under this subtitle for a fiscal

18 year, each eligible agency receiving a grant under this sub19 title, in addition to addressing the priorities described in

20 subsection (a), shall—

21 (1) give preference to eligible providers that the

22 eligible agency determines serve local areas with

23 high concentrations of individuals in poverty or with

24 low levels of literacy (including English language

25 proficiency); and
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1 (2) consider—

2 (A) the results, if any, of the evaluations

3 required under section 245(a); and

4 (B) the degree to which the eligible pro5 vider will coordinate with and utilize other lit6 eracy and social services available in the

7 community.

8 SEC. 243. INCENTIVE GRANTS.

9 (a) IN GENERAL.—The Secretary may make grants

10 to States that exceed—

11 (1) the State performance measures established

12 by the Secretary of Education under this Act; and

13 (2) the State performance measures established

14 under title III.

15 (b) PRIORITY.—In awarding incentive grants under

16 this section, the Secretary shall give priority to those

17 States submitting a State unified plan as described in sec18 tion 501 that is approved by the appropriate Secretaries

19 as described in such section.

20 (c) USE OF FUNDS.—A State that receives an incen21 tive grant under this section shall use the funds made

22 available through the grant to carry out innovative pro23 grams as determined by the State.
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1 SEC. 244. EVALUATION, IMPROVEMENT, AND ACCOUNT2 ABILITY.

3 (a) LOCAL EVALUATION.—Each eligible agency shall

4 biennially evaluate the adult education and literacy activi5 ties of each eligible provider that receives a grant or con6 tract under this subtitle, using the performance measures

7 established under section 212.

8 (b) IMPROVEMENT ACTIVITIES.—If, after reviewing

9 the evaluation, an eligible agency determines that an eligi10 ble provider is not making substantial progress in achiev11 ing the purpose of this subtitle, the eligible agency may

12 work jointly with the eligible provider to develop an im13 provement plan. If, after not more than 2 years of imple14 mentation of the improvement plan, the eligible agency de15 termines that the eligible provider is not making substan16 tial progress, the eligible agency shall take whatever cor17 rective action the eligible agency deems necessary, which

18 may include termination of funding or the implementation

19 of alternative service arrangements, consistent with State

20 law. The eligible agency shall take corrective action under

21 the preceding sentence only after the eligible agency has

22 provided technical assistance to the eligible provider and

23 shall ensure, to the extent practicable, that any corrective

24 action the eligible agency takes allows for continued serv25 ices to and activities for the individuals served by the eligi26 ble provider.
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1 (c) STATE REPORT.—

2 (1) IN GENERAL.—The eligible agency shall re3 port annually to the Secretary regarding the quality

4 and effectiveness of the adult education and literacy

5 activities funded through the eligible agency’s grants

6 or contracts under this subtitle, based on the per7 formance measures and expected levels of perform8 ance included in the State plan.

9 (2) INFORMATION.—The eligible agency shall

10 include in the reports such information, in such

11 form, as the Secretary may require in order to en12 sure the collection of uniform national data.

13 (3) AVAILABILITY.—The eligible agency shall

14 make available to the public the annual report under

15 this subsection.

16 (d) TECHNICAL ASSISTANCE.—If the Secretary de17 termines that the eligible agency is not properly imple18 menting the eligible agency’s responsibilities under sub19 section (b), or is not making substantial progress in meet20 ing the purpose of this subtitle, based on the performance

21 measures and expected levels of performance included in

22 the eligible agency’s State plan, the Secretary shall work

23 with the eligible agency to implement improvement

24 activities.
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1 (e) WITHHOLDING OF FEDERAL FUNDS.—If, not

2 earlier than 2 years after implementing activities described

3 in subsection (d), the Secretary determines that the eligi4 ble agency is not making sufficient progress, based on the

5 eligible agency’s performance measures and expected lev6 els of performance, the Secretary, after notice and oppor7 tunity for a hearing, shall withhold from the eligible agen8 cy all, or a portion, of the eligible agency’s grant under

9 this subtitle. The Secretary may use funds withheld under

10 the preceding sentence to provide, through alternative ar11 rangements, services and activities within the State to

12 meet the purpose of this title.

13 SEC. 245. NATIONAL INSTITUTE FOR LITERACY.

14 (a) PURPOSE.—The purpose of this section is to es15 tablish a National Institute for Literacy that—

16 (1) provides national leadership regarding

17 literacy;

18 (2) coordinates literacy services and policy; and

19 (3) is a national resource for adult education

20 and literacy, by providing the best and most current

21 information available and supporting the creation of

22 new ways to offer improved literacy services.

23 (b) ESTABLISHMENT.—

24 (1) IN GENERAL.—There shall be a National

25 Institute for Literacy (in this section referred to as
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1 the ‘‘Institute’’). The Institute shall be administered

2 under the terms of an interagency agreement en3 tered into by the Secretary with the Secretary of

4 Labor and the Secretary of Health and Human

5 Services (in this section referred to as the ‘‘Inter6 agency Group’’). The Secretary may include in the

7 Institute any research and development center, insti8 tute, or clearinghouse established within the Depart9 ment of Education the purpose of which is deter10 mined by the Secretary to be related to the purpose

11 of the Institute.

12 (2) RECOMMENDATIONS.—The Interagency

13 Group shall consider the recommendations of the

14 National Institute for Literacy Advisory Board (in

15 this section referred to as the ‘‘Board’’) established

16 under subsection (e) in planning the goals of the In17 stitute and in the implementation of any programs

18 to achieve the goals. If the Board’s recommendations

19 are not followed, the Interagency Group shall pro20 vide a written explanation to the Board concerning

21 actions the Interagency Group takes that are incon22 sistent with the Board’s recommendations, including

23 the reasons for not following the Board’s rec24 ommendations with respect to the actions. The

25 Board may also request a meeting of the Inter-
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1 agency Group to discuss the Board’s recommenda2 tions.

3 (3) DAILY OPERATIONS.—The daily operations

4 of the Institute shall be administered by the Director

5 of the Institute.

6 (c) DUTIES.—

7 (1) IN GENERAL.—In order to provide leader8 ship for the improvement and expansion of the sys9 tem for delivery of literacy services, the Institute is

10 authorized to—

11 (A) establish a national electronic data

12 base of information that disseminates informa13 tion to the broadest possible audience within

14 the literacy and basic skills field, and that

15 includes—

16 (i) effective practices in the provision

17 of literacy and basic skills instruction, in18 cluding the integration of such instruction

19 with occupational skills training;

20 (ii) public and private literacy and

21 basic skills programs and Federal, State,

22 and local policies affecting the provision of

23 literacy services at the national, State, and

24 local levels;
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1 (iii) opportunities for technical assist2 ance, meetings, conferences, and other op3 portunities that lead to the improvement of

4 literacy and basic skills services; and

5 (iv) a communication network for lit6 eracy programs, providers, social service

7 agencies, and students;

8 (B) coordinate support for the provision of

9 literacy and basic skills services across Federal

10 agencies and at the State and local levels;

11 (C) coordinate the support of research and

12 development on literacy and basic skills for

13 adults across Federal agencies, especially with

14 the Office of Educational Research and Im15 provement in the Department of Education,

16 and carry out basic and applied research and

17 development on topics that are not being inves18 tigated by other organizations or agencies;

19 (D) collect and disseminate information on

20 methods of advancing literacy;

21 (E) provide policy and technical assistance

22 to Federal, State, and local entities for the im23 provement of policy and programs relating to

24 literacy;
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1 (F) fund a network of State or regional

2 adult literacy resource centers to assist State

3 and local public and private nonprofit efforts to

4 improve literacy by—

5 (i) encouraging the coordination of lit6 eracy services; and

7 (ii) serving as a link between the In8 stitute and providers of adult education

9 and literacy activities for the purpose of

10 sharing information, data, research, exper11 tise, and literacy resources; and

12 (G) undertake other activities that lead to

13 the improvement of the Nation’s literacy deliv14 ery system and that complement other such ef15 forts being undertaken by public and private

16 agencies and organizations.

17 (2) GRANTS, CONTRACTS, AND COOPERATIVE

18 AGREEMENTS.—The Institute may award grants to,

19 or enter into contracts or cooperative agreements

20 with, individuals, public or private institutions, agen21 cies, organizations, or consortia of such institutions,

22 agencies, or organizations to carry out the activities

23 of the Institute. Such grants, contracts, or agree24 ments shall be subject to the laws and regulations
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1 that generally apply to grants, contracts, or agree2 ments entered into by Federal agencies.

3 (d) LITERACY LEADERSHIP.—

4 (1) IN GENERAL.—The Institute may, in con5 sultation with the Board, award fellowships, with

6 such stipends and allowances that the Director con7 siders necessary, to outstanding individuals pursuing

8 careers in adult education or literacy in the areas of

9 instruction, management, research, or innovation.

10 (2) FELLOWSHIPS.—Fellowships awarded under

11 this subsection shall be used, under the auspices of

12 the Institute, to engage in research, education, train13 ing, technical assistance, or other activities to ad14 vance the field of adult education or literacy, includ15 ing the training of volunteer literacy providers at the

16 national, State, or local level.

17 (3) INTERNSHIPS.—The Institute, in consulta18 tion with the Board, is authorized to award paid and

19 unpaid internships to individuals seeking to assist in

20 carrying out the Institute’s purpose and to accept

21 assistance from volunteers.

22 (e) NATIONAL INSTITUTE FOR LITERACY ADVISORY

23 BOARD.—

24 (1) ESTABLISHMENT.—
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1 (A) IN GENERAL.—There shall be a Na2 tional Institute for Literacy Advisory Board,

3 which shall consist of 10 individuals appointed

4 by the President with the advice and consent of

5 the Senate.

6 (B) COMPOSITION.—The Board shall com7 prise individuals who are not otherwise officers

8 or employees of the Federal Government and

9 who are representative of such entities as—

10 (i) literacy organizations and provid11 ers of literacy services, including nonprofit

12 providers, providers of English as a second

13 language programs and services, social

14 service organizations, and eligible providers

15 receiving assistance under this subtitle;

16 (ii) businesses that have demonstrated

17 interest in literacy programs;

18 (iii) literacy students, including lit19 eracy students with disabilities;

20 (iv) experts in the area of literacy

21 research;

22 (v) State and local governments;

23 (vi) State Directors of adult edu24 cation; and

25 (vii) labor organizations.
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1 (2) DUTIES.—The Board shall—

2 (A) make recommendations concerning the

3 appointment of the Director and staff of the In4 stitute; and

5 (B) provide independent advice on the op6 eration of the Institute.

7 (3) APPOINTMENTS.—

8 (A) IN GENERAL.—Appointments to the

9 Board made after the date of enactment of the

10 Workforce Investment Partnership Act shall be

11 for 3-year terms, except that the initial terms

12 for members may be established at 1, 2, or 3

13 years in order to establish a rotation in which

1 14 ⁄3 of the members are selected each year.

15 (B) VACANCIES.—Any member appointed

16 to fill a vacancy occurring before the expiration

17 of the term for which the member’s predecessor

18 was appointed shall be appointed only for the

19 remainder of that term. A member may serve

20 after the expiration of that member’s term until

21 a successor has taken office.

22 (4) OFFICERS.—The Chairperson and Vice

23 Chairperson of the Board shall be elected by the

24 members.
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1 (5) MEETINGS.—The Board shall meet at the

2 call of the Chairperson or a majority of its members.

3 (f) GIFTS, BEQUESTS, AND DEVISES.—

4 (1) IN GENERAL.—The Institute may accept,

5 administer, and use gifts or donations of services,

6 money, or property, whether real or personal, tan7 gible or intangible.

8 (2) RULES.—The Board shall establish written

9 rules setting forth the criteria to be used by the In10 stitute in determining whether the acceptance of

11 contributions of services, money, or property whether

12 real or personal, tangible or intangible, would reflect

13 unfavorably upon the ability of the Institute or any

14 employee to carry out its responsibilities or official

15 duties in a fair and objective manner, or would com16 promise the integrity or the appearance of the integ17 rity of its programs or any official involved in those

18 programs.

19 (g) MAILS.—The Board and the Institute may use

20 the United States mails in the same manner and under

21 the same conditions as other departments and agencies of

22 the United States.

23 (h) STAFF.—The Interagency Group, after consider24 ing recommendations made by the Board, shall appoint

25 and fix the pay of a Director.
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1 (i) APPLICABILITY OF CERTAIN CIVIL SERVICE

2 LAWS.—The Director and staff of the Institute may be

3 appointed without regard to the provisions of title 5, Unit4 ed States Code, governing appointments in the competitive

5 service, and may be paid without regard to the provisions

6 of chapter 51 and subchapter III of chapter 53 of that

7 title relating to classification and General Schedule pay

8 rates, except that an individual so appointed may not re9 ceive pay in excess of the annual rate of basic pay payable

10 for level IV of the Executive Schedule.

11 (j) EXPERTS AND CONSULTANTS.—The Institute

12 may procure temporary and intermittent services under

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

14 (k) REPORT.—The Institute shall submit a biennial

15 report to the Interagency Group and Congress.

16 (l) NONDUPLICATION.—The Institute shall not dupli17 cate any functions carried out by the Secretary, the Sec18 retary of Labor, or the Secretary of Health and Human

19 Services under this subtitle. This subsection shall not be

20 construed to prohibit the Secretaries from delegating such

21 functions to the Institute.

22 (m) FUNDING.—Any amounts appropriated to the

23 Secretary, the Secretary of Labor, the Secretary of Health

24 and Human Services, or any other department that par25 ticipates in the Institute for purposes that the Institute
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1 is authorized to perform under this section may be pro2 vided to the Institute for such purposes.

3 SEC. 246. AUTHORIZATION OF APPROPRIATIONS.

4 There are authorized to be appropriated to carry out

5 this title such sums as may be necessary for fiscal year

6 1998 and each of the 3 succeeding fiscal years.

7 Subtitle B—Repeal

8 SEC. 251. REPEAL.

9 (a) REPEAL.—The Adult Education Act (20 U.S.C.

10 1201 et. seq.) is repealed.

11 (b) CONFORMING AMENDMENTS.—

12 (1) REFUGEE EDUCATION ASSISTANCE ACT.—

13 Subsection (b) of section 402 of the Refugee Edu14 cation Assistance Act of 1980 (8 U.S.C. 1522 note)

15 is repealed.

16 (2) ELEMENTARY AND SECONDARY EDUCATION

17 ACT OF 1965.—

18 (A) SECTION 1202 OF ESEA.—Section

19 1202(c)(1) of the Elementary and Secondary

20 Education Act of 1965 (20 U.S.C. 6362(c)(1))

21 is amended by striking ‘‘Adult Education Act’’

22 and inserting ‘‘Workforce Investment Partner23 ship Act of 1997’’.

24 (B) SECTION 1205 OF ESEA.—Section

25 1205(8)(B) of such Act (20 U.S.C. 6365(8)(B))
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1 is amended by striking ‘‘Adult Education Act’’

2 and inserting ‘‘Workforce Investment Partner3 ship Act of 1997’’.

4 (C) SECTION 1206 OF ESEA.—Section

5 1206(a)(1)(A) of such Act (20 U.S.C.

6 6366(a)(1)(A)) is amended by striking ‘‘an

7 adult basic education program under the Adult

8 Education Act’’ and inserting ‘‘adult education

9 and literacy activities under the Workforce In10 vestment Partnership Act of 1997’’.

11 (D) SECTION 3113 OF ESEA.—Section

12 3113(1) of such Act (20 U.S.C. 6813(1)) is

13 amended by striking ‘‘section 312 of the Adult

14 Education Act’’ and inserting ‘‘section 2 of the

15 Workforce Investment Partnership Act of

16 1997’’.

17 (E) SECTION 9161 OF ESEA.—Section

18 9161(2) of such Act (20 U.S.C. 7881(2)) is

19 amended by striking ‘‘section 312(2) of the

20 Adult Education Act’’ and inserting ‘‘section 2

21 of the Workforce Investment Partnership Act of

22 1997’’.

23 (3) OLDER AMERICANS ACT OF 1965.—Section

24 203(b)(8) of the Older Americans Act of 1965 (42

25 U.S.C. 3013(b)(8)) is amended by striking ‘‘Adult
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1 Education Act’’ and inserting ‘‘Workforce Invest2 ment Partnership Act of 1997’’.

3 (4) NATIONAL LITERACY ACT OF 1991.—The

4 National Literacy Act of 1991 (20 U.S.C. 1201

5 note) is repealed.

6 TITLE III—WORKFORCE INVEST7 MENT AND RELATED ACTIVI8 TIES

9 Subtitle A—Workforce Investment

10 Activities

11 CHAPTER 1—ALLOTMENTS TO STATES

12 FOR ADULT EMPLOYMENT AND TRAIN13 ING ACTIVITIES, DISLOCATED WORK14 ER EMPLOYMENT AND TRAINING AC15 TIVITIES, AND YOUTH ACTIVITIES

16 SEC. 301. GENERAL AUTHORIZATION.

17 The Secretary of Labor shall make an allotment to

18 each State that has a State plan approved under section

19 304 and a grant to each outlying area that complies with

20 the requirements of this title, to enable the State or outly21 ing area to assist local areas in providing, through a state22 wide workforce investment system—

23 (1) adult employment and training activities;

24 (2) dislocated worker employment and training

25 activities; and
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1 (3) youth activities, including summer employ2 ment opportunities, tutoring, activities to promote

3 study skills, alternative secondary school services,

4 employment skill training, adult mentoring, and sup5 portive services.

6 SEC. 302. STATE ALLOTMENTS.

7 (a) IN GENERAL.—The Secretary shall—

8 (1) make allotments and grants from the total

9 amount appropriated under section 322(a) for a fis10 cal year in accordance with subsection (b)(1);

11 (2)(A) reserve 20 percent of the amount appro12 priated under section 322(b) for a fiscal year for use

13 under section 366(b)(2), 367(f), and 369; and

14 (B) make allotments and grants from 80 per15 cent of the amount appropriated under section

16 322(b) for a fiscal year in accordance with sub17 section (b)(2); and

18 (3)(A) for each fiscal year in which the amount

19 appropriated under section 322(c) exceeds

20 $1,000,000,000, reserve a portion determined under

21 subsection (b)(3)(A) of the amount appropriated

22 under section 322(c) for use under sections 362 and

23 364; and

24 (B) use the remainder of the amount appro25 priated under section 322(c) for a fiscal year to
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1 make allotments and grants in accordance with sub2 paragraphs (B) and (C) of subsection (b)(3) and

3 make funds available for use under section 361.

4 (b) ALLOTMENT AMONG STATES.—

5 (1) ADULT EMPLOYMENT AND TRAINING AC6 TIVITIES.—

7 (A) OUTLYING AREAS.—

8 (i) IN GENERAL.—From the amount

9 made available under subsection (a)(1) for

10 a fiscal year, the Secretary shall reserve

not more than 1 11 ⁄4 of 1 percent—

12 (I) to provide assistance to the

13 outlying areas to carry out adult em14 ployment and training activities; and

15 (II) for each of the fiscal years

16 1999 through 2003, to carry out the

17 competition described in clause (iii),

18 except that the amount reserved to

19 carry out such clause for any such fis20 cal year shall not exceed the amount

21 reserved for the Freely Associated

22 States for fiscal year 1998, from

23 amounts reserved under section

24 202(a)(1) of the Job Training Part25 nership Act (29 U.S.C. 1602(a)(1))
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1 (as in effect on the day before the

2 date of enactment of this Act).

3 (ii) APPLICATION.—To be eligible to

4 receive a grant under this subparagraph,

5 an outlying area shall submit an applica6 tion to the Secretary at such time, in such

7 manner, and containing such information

8 and assurances as the Secretary may re9 quire.

10 (iii) COMPETITIVE GRANTS.—The Sec11 retary shall use funds described in clause

12 (i)(II) to make grants to outlying areas to

13 carry out adult employment and training

14 activities.

15 (iv) BASIS.—The Secretary shall

16 make grants pursuant to clause (iii) on a

17 competitive basis and pursuant to the rec18 ommendations of experts in the field of

19 employment and training, working through

20 the Pacific Region Educational Laboratory

21 in Honolulu, Hawaii.

22 (v) ASSISTANCE REQUIREMENTS.—

23 Any Freely Associated State that desires

24 to receive a grant made under this sub-
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1 paragraph shall include in the application

2 of the State for assistance—

3 (I) information demonstrating

4 that the State will meet all conditions

5 of the regulations described in clause

6 (ix); and

7 (II) an assurance that, notwith8 standing any other provision of this

9 title, the State will use the amounts

10 made available through such grants

11 only for the direct provision of serv12 ices.

13 (vi) TERMINATION OF ELIGIBILITY.—

14 Notwithstanding any other provision of

15 law, the Freely Associated States shall not

16 receive any funds under this subparagraph

17 for any program year that begins after

18 September 30, 2004.

19 (vii) ADMINISTRATIVE COSTS.—The

20 Secretary may provide not more than 5

21 percent of the amount made available for

22 grants under clause (iii) to pay the admin23 istrative costs of the Pacific Region Edu24 cational Laboratory in Honolulu, Hawaii,
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1 regarding activities assisted under this

2 subparagraph.

3 (viii) ADDITIONAL REQUIREMENT.—

4 The provisions of Public Law 95–134, per5 mitting the consolidation of grants by the

6 outlying areas shall not apply to funds pro7 vided to those areas, including the Freely

8 Associated States, under this subpara9 graph.

10 (ix) REGULATIONS.—The Secretary

11 shall issue regulations specifying require12 ments of this title that apply to outlying

13 areas receiving funds under this subpara14 graph.

15 (x) DEFINITION.—In this subpara16 graph, the term ‘‘Freely Associated

17 States’’ means the Republic of the Mar18 shall Islands, the Federated States of Mi19 cronesia, and the Republic of Palau.

20 (B) STATES.—

21 (i) IN GENERAL.—After determining

22 the amount to be reserved under subpara23 graph (A), the Secretary shall allot the re24 mainder of the amount referred to in sub25 section (a)(1) relating to a fiscal year to
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•S 1186 IS

1 the States pursuant to clause (ii) for adult

2 employment and training activities.

3 (ii) FORMULA.—Subject to clauses

4 (iii) and (iv), of the remainder—

(I) 331 5 ⁄3 percent shall be allotted

6 on the basis of the relative number of

7 unemployed individuals in areas of

8 substantial unemployment in each

9 State as compared to the total num10 ber of unemployed individuals in areas

11 of substantial unemployment in all

12 States;

(II) 331 13 ⁄3 percent shall be allot14 ted on the basis of the relative excess

15 number of unemployed individuals in

16 each State as compared to the total

17 excess number of unemployed individ18 uals in all States; and

(III) 331 19 ⁄3 percent shall be allot20 ted on the basis of the relative num21 ber of disadvantaged adults in each

22 State as compared to the total num23 ber of disadvantaged adults in all

24 States.
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1 (iii) MINIMUM AND MAXIMUM PER2 CENTAGES.—

3 (I) MINIMUM PERCENTAGE.—No

4 State shall receive an allotment per5 centage for a fiscal year that is less

6 than 90 percent of the allotment per7 centage of the State for the preceding

8 fiscal year.

9 (II) MAXIMUM PERCENTAGE.—

10 No State shall receive an allotment

11 percentage for a fiscal year that is

12 more than 130 percent of the allot13 ment percentage of the State for the

14 preceding fiscal year.

15 (iv) SMALL STATE MINIMUM ALLOT16 MENT.—No State shall receive an allot17 ment under this subparagraph that is less

than 1 18 ⁄2 of 1 percent of the remainder de19 scribed in clause (i) for a fiscal year.

20 Amounts necessary for increasing such al21 lotments to States to comply with the pre22 ceding sentence shall be obtained by rat23 ably reducing the allotments to be made to

24 other States under this subparagraph.
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1 (v) DEFINITIONS.—In this subpara2 graph:

3 (I) ALLOTMENT PERCENTAGE.—

4 The term ‘‘allotment percentage’’,

5 used with respect to fiscal year 1999

6 or a subsequent fiscal year, means a

7 percentage of the remainder described

8 in clause (i), received through an al9 lotment made under this subpara10 graph, for the fiscal year. The term,

11 used with respect to fiscal year 1998,

12 means the percentage of the amounts

13 allocated under section 202(b) of the

14 Job Training Partnership Act (29

15 U.S.C. 1602(b)) (as in effect on the

16 day before the date of enactment of

17 this Act) received under such section

18 by service delivery areas in the State

19 involved for fiscal year 1998.

20 (II) AREA OF SUBSTANTIAL UN21 EMPLOYMENT.—The term ‘‘area of

22 substantial unemployment’’ means

23 any area that is of sufficient size and

24 scope to sustain a program of

25 workforce investment activities carried
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•S 1186 IS

1 out under this subtitle and that has

2 an average rate of unemployment of

3 at least 6.5 percent for the most re4 cent 12 months, as determined by the

5 Secretary. For purposes of this sub6 clause, determinations of areas of sub7 stantial unemployment shall be made

8 once each fiscal year.

9 (III) DISADVANTAGED ADULT.—

10 The term ‘‘disadvantaged adult’’

11 means an individual who is not less

12 than age 22 and not more than age

13 72 and is a low-income individual.

14 (IV) EXCESS NUMBER.—The

15 term ‘‘excess number’’ means the

16 number of unemployed individuals in

17 excess of 4.5 percent of the civilian

18 labor force in a State.

19 (2) DISLOCATED WORKER EMPLOYMENT AND

20 TRAINING.—

21 (A) OUTLYING AREAS.—

22 (i) IN GENERAL.—From the amount

23 made available under subsection (a)(2)(B)

24 for a fiscal year, the Secretary shall reserve not more than 1 25 ⁄4 of 1 percent—
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1 (I) to provide assistance to the

2 outlying areas to carry out dislocated

3 worker employment and training ac4 tivities; and

5 (II) for each of the fiscal years

6 1999 through 2003, to carry out the

7 competition described in clause (iii),

8 except that the amount reserved to

9 carry out such clause for any such fis10 cal year shall not exceed the amount

11 reserved for the Freely Associated

12 States for fiscal year 1998, from

13 amounts reserved under section

14 302(b) of the Job Training Partner15 ship Act (29 U.S.C. 1652(b)) (as in

16 effect on the day before the date of

17 enactment of this Act).

18 (ii) APPLICATION.—To be eligible to

19 receive a grant under this subparagraph,

20 an outlying area shall submit an applica21 tion to the Secretary at such time, in such

22 manner, and containing such information

23 and assurances as the Secretary may re24 quire.
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1 (iii) COMPETITIVE GRANTS.—The Sec2 retary shall use funds described in clause

3 (i)(II) to make grants to outlying areas to

4 carry out dislocated worker employment

5 and training activities.

6 (iv) BASIS.—The Secretary shall

7 make grants pursuant to clause (iii) on a

8 competitive basis and pursuant to the rec9 ommendations of experts in the field of

10 employment and training, working through

11 the Pacific Region Educational Laboratory

12 in Honolulu, Hawaii.

13 (v) ASSISTANCE REQUIREMENTS.—

14 Any Freely Associated State that desires

15 to receive a grant made under this sub16 paragraph shall include in the application

17 of the State for assistance—

18 (I) information demonstrating

19 that the State will meet all conditions

20 of the regulations described in clause

21 (ix); and

22 (II) an assurance that, notwith23 standing any other provision of this

24 title, the State will use the amounts

25 made available through such grants
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•S 1186 IS

1 only for the direct provision of serv2 ices.

3 (vi) TERMINATION OF ELIGIBILITY.—

4 Notwithstanding any other provision of

5 law, the Freely Associated States shall not

6 receive any funds under this subparagraph

7 for any program year that begins after

8 September 30, 2004.

9 (vii) ADMINISTRATIVE COSTS.—The

10 Secretary may provide not more than 5

11 percent of the amount made available for

12 grants under clause (iii) to pay the admin13 istrative costs of the Pacific Region Edu14 cational Laboratory in Honolulu, Hawaii,

15 regarding activities assisted under this

16 subparagraph.

17 (viii) ADDITIONAL REQUIREMENT.—

18 The provisions of Public Law 95–134, per19 mitting the consolidation of grants by the

20 outlying areas, shall not apply to funds

21 provided to those areas, including the

22 Freely Associated States, under this sub23 paragraph.

24 (ix) REGULATIONS.—The Secretary

25 shall issue regulations specifying require-
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•S 1186 IS

1 ments of this title that apply to outlying

2 areas receiving funds under this subpara3 graph.

4 (x) DEFINITION.—In this subpara5 graph, the term ‘‘Freely Associated

6 States’’ means the Republic of the Mar7 shall Islands, the Federated States of Mi8 cronesia, and the Republic of Palau.

9 (B) STATES.—

10 (i) IN GENERAL.—After determining

11 the amount to be reserved under subpara12 graph (A), the Secretary shall allot the re13 mainder of the amount referred to in sub14 section (a)(2)(B) relating to a fiscal year

15 to the States pursuant to clause (ii) for

16 dislocated worker employment and training

17 activities.

18 (ii) FORMULA.—Subject to clause

19 (iii), of the remainder—

(I) 331 20 ⁄3 percent shall be allotted

21 on the basis of the relative number of

22 unemployed individuals in each State

23 as compared to the total number of

24 unemployed individuals in all States;
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(II) 331 1 ⁄3 percent shall be allot2 ted on the basis described in para3 graph (1)(B)(ii)(II); and

(III) 331 4 ⁄3 percent shall be allot5 ted on the basis of the relative num6 ber of individuals in each State who

7 have been unemployed for 15 weeks or

8 more as compared to the total number

9 of individuals in all States who have

10 been unemployed for 15 weeks or

11 more.

12 (iii) SMALL STATE MINIMUM ALLOT13 MENT.—

14 (I) IN GENERAL.—Except as pro15 vided in subclause (II), the require16 ments of clauses (iv) and (v) of para17 graph (1)(B) shall apply to allotments

18 made under this subparagraph in the

19 same manner and to the same extent

20 as the requirements apply to allot21 ments made under paragraph (1)(B).

22 (II) EXCEPTION.—For purposes

23 of applying the requirements of those

24 clauses under this subparagraph ref25 erences in those clauses to the re-
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1 mainder described in clause (i) of

2 paragraph (1)(B) shall be considered

3 to be references to the remainder de4 scribed in clause (i) of this subpara5 graph.

6 (3) YOUTH ACTIVITIES.—

7 (A) YOUTH OPPORTUNITY GRANTS.—

8 (i) IN GENERAL.—For each fiscal year

9 in which the amount appropriated under

10 section 322(c) exceeds $1,000,000,000, the

11 Secretary shall reserve a portion of the

12 amount to provide youth opportunity

13 grants under section 364 and provide

14 youth activities under section 362.

15 (ii) PORTION.—The portion referred

16 to in clause (i) shall equal, for a fiscal

17 year—

18 (I) except as provided in sub19 clause (II), the difference obtained by

20 subtracting $1,000,000,000 from the

21 amount described in clause (i); and

22 (II) for any fiscal year in which

23 the amount is $1,250,000,000 or

24 greater, $250,000,000.
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1 (iii) YOUTH ACTIVITIES FOR FARM2 WORKERS.—From the portion described in

3 clause (i) for a fiscal year, the Secretary

4 shall make available $10,000,000 to pro5 vide youth activities under section 362.

6 (B) OUTLYING AREAS.—

7 (i) IN GENERAL.—From the amount

8 made available under subsection (a)(3)(B)

9 for a fiscal year, the Secretary shall reserve not more than 1 10 ⁄4 of 1 percent—

11 (I) to provide assistance to the

12 outlying areas to carry out youth ac13 tivities; and

14 (II) for each of the fiscal years

15 1999 through 2003, to carry out the

16 competition described in clause (iii),

17 except that the amount reserved to

18 carry out such clause for any such fis19 cal year shall not exceed the amount

20 reserved for the Freely Associated

21 States for fiscal year 1998, from

22 amounts reserved under sections

23 252(a) and 262(a)(1) of the Job

24 Training Partnership Act (29 U.S.C.

25 and 1631(a) and 1642(a)(1)) (as in
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•S 1186 IS

1 effect on the day before the date of

2 enactment of this Act).

3 (ii) APPLICATION.—To be eligible to

4 receive a grant under this subparagraph,

5 an outlying area shall submit an applica6 tion to the Secretary at such time, in such

7 manner, and containing such information

8 and assurances as the Secretary may re9 quire.

10 (iii) COMPETITIVE GRANTS.—The Sec11 retary shall use funds described in clause

12 (i)(II) to make grants to outlying areas to

13 carry out youth activities.

14 (iv) BASIS.—The Secretary shall

15 make grants pursuant to clause (iii) on a

16 competitive basis and pursuant to the rec17 ommendations of experts in the field of

18 employment and training, working through

19 the Pacific Region Educational Laboratory

20 in Honolulu, Hawaii.

21 (v) ASSISTANCE REQUIREMENTS.—

22 Any Freely Associated State that desires

23 to receive a grant made under this sub24 paragraph shall include in the application

25 of the State for assistance—
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•S 1186 IS

1 (I) information demonstrating

2 that the State will meet all conditions

3 of the regulations described in clause

4 (ix); and

5 (II) an assurance that, notwith6 standing any other provision of this

7 title, the State will use the amounts

8 made available through such grants

9 only for the direct provision of serv10 ices.

11 (vi) TERMINATION OF ELIGIBILITY.—

12 Notwithstanding any other provision of

13 law, the Freely Associated States shall not

14 receive any funds under this subparagraph

15 for any program year that begins after

16 September 30, 2004.

17 (vii) ADMINISTRATIVE COSTS.—The

18 Secretary may provide not more than 5

19 percent of the amount made available for

20 grants under clause (iii) to pay the admin21 istrative costs of the Pacific Region Edu22 cational Laboratory in Honolulu, Hawaii,

23 regarding activities assisted under this

24 subparagraph.
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•S 1186 IS

1 (viii) ADDITIONAL REQUIREMENT.—

2 The provisions of Public Law 95–134, per3 mitting the consolidation of grants by the

4 outlying areas, shall not apply to funds

5 provided to those areas, including the

6 Freely Associated States, under this sub7 paragraph.

8 (ix) REGULATIONS.—The Secretary

9 shall issue regulations specifying require10 ments of this title that apply to outlying

11 areas receiving funds under this subpara12 graph.

13 (x) DEFINITION.—In this subpara14 graph, the term ‘‘Freely Associated

15 States’’ means the Republic of the Mar16 shall Islands, the Federated States of Mi17 cronesia, and the Republic of Palau.

18 (C) STATES.—

19 (i) IN GENERAL.—After determining

20 the amounts to be reserved under subpara21 graph (A) (if any) and subparagraph (B),

22 the Secretary shall—

23 (I) from the amount referred to

24 in subsection (a)(3)(B) relating to a

25 fiscal year, make available
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•S 1186 IS

1 $15,000,000 to provide youth activi2 ties under section 361; and

3 (II) allot the remainder of the

4 amount referred to in subsection

5 (a)(3)(B) relating to a fiscal year to

6 the States pursuant to clause (ii) for

7 youth activities.

8 (ii) FORMULA.—Subject to clause

9 (iii), of the remainder—

(I) 331 10 ⁄3 percent shall be allotted

11 on the basis described in paragraph

12 (1)(B)(ii)(I);

(II) 331 13 ⁄3 percent shall be allot14 ted on the basis described in para15 graph (1)(B)(ii)(II); and

(III) 331 16 ⁄3 percent shall be allot17 ted on the basis of the relative num18 ber of disadvantaged youth in each

19 State as compared to the total num20 ber of disadvantaged youth in all

21 States.

22 (iii) MINIMUM PERCENTAGE; MAXI23 MUM PERCENTAGE; SMALL STATE MINI24 MUM ALLOTMENT.—
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•S 1186 IS

1 (I) IN GENERAL.—Except as pro2 vided in subclause (II), the require3 ments of clauses (iii), (iv), and (v) of

4 paragraph (1)(B) shall apply to allot5 ments made under this subparagraph

6 in the same manner and to the same

7 extent as the requirements apply to

8 allotments made under paragraph

9 (1)(B).

10 (II) EXCEPTIONS.—For purposes

11 of applying the requirements of those

12 clauses under this subparagraph—

13 (aa) references in those

14 clauses to the remainder de15 scribed in clause (i) of paragraph

16 (1)(B) shall be considered to be

17 references to the remainder de18 scribed in clause (i)(II) of this

19 subparagraph; and

20 (bb) the term ‘‘allotment

21 percentage’’, used with respect to

22 fiscal year 1998, means the per23 centage of the amounts allocated

24 under sections 252(b) and 262(b)

25 of the Job Training Partnership
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•S 1186 IS

1 Act (29 U.S.C. 1631(b) and

2 1642(b)) (as in effect on the day

3 before the date of enactment of

4 this Act) received under such sec5 tions by service delivery areas in

6 the State involved for fiscal year

7 1998.

8 (iv) DEFINITION.—In this subpara9 graph, the term ‘‘disadvantaged youth’’

10 means an individual who is not less than

11 age 14 and is not more than age 21 and

12 is a low-income individual.

13 SEC. 303. STATEWIDE PARTNERSHIP.

14 (a) IN GENERAL.—The Governor of a State shall es15 tablish and appoint the members of a statewide partner16 ship to assist in the development of the State plan de17 scribed in section 304 and carry out the functions de18 scribed in subsection (d).

19 (b) MEMBERSHIP.—The statewide partnership shall

20 include—

21 (1) the Governor;

22 (2) representatives, appointed by the Gov23 ernor—

24 (A) a majority of whom—
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•S 1186 IS

1 (i) are representatives of business in

2 the State;

3 (ii) are owners of businesses, chief ex4 ecutives or operating officers of private

5 businesses, and other business executives

6 or employers with optimum policymaking

7 or hiring authority, including members of

8 local partnerships described in section

9 308(c)(2)(A)(i);

10 (iii) represent businesses with employ11 ment opportunities that reflect the employ12 ment opportunities of the State; and

13 (iv) are appointed from among indi14 viduals nominated by State business orga15 nizations and business trade associations;

16 (B) the remainder of whom are individuals

17 who have optimum policymaking authority, in18 cluding—

19 (i) representatives of—

20 (I) chief elected officials (rep21 resenting both cities and counties,

22 where appropriate);

23 (II) labor organizations, who

24 have been nominated by State labor

25 federations;
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•S 1186 IS

1 (III) individuals, and organiza2 tions, that have experience relating to

3 youth activities;

4 (ii) the eligible agency officials respon5 sible for vocational education, including

6 postsecondary vocational education, and

7 for adult education and literacy, and the

8 State officials responsible for postsecond9 ary education (including education in com10 munity colleges); and

11 (iii) the State agency official respon12 sible for vocational rehabilitation, and

13 where applicable, the State agency official

14 responsible for providing vocational reha15 bilitation program activities for the blind;

16 (3) such other State agency officials as the

17 Governor may designate, such as State agency offi18 cials carrying out activities relating to employment

19 and training, economic development, public assist20 ance, veterans, youth, juvenile justice and the em21 ployment service established under the Wagner22 Peyser Act (29 U.S.C. 49 et seq.); and

23 (4) two members of each chamber of the State

24 legislature, appointed by the appropriate presiding

25 officer of the chamber.
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•S 1186 IS

1 (c) CHAIRMAN.—The Governor shall select a chair2 person for the statewide partnership from among the rep3 resentatives described in subsection (b)(2)(A).

4 (d) FUNCTIONS.—In addition to developing the State

5 plan, the statewide partnership shall—

6 (1) advise the Governor on the development of

7 a comprehensive statewide workforce investment sys8 tem;

9 (2) assist the Governor in preparing the annual

10 report to the Secretaries described in section 321(c);

11 (3) assist the Governor in developing the state12 wide labor market information system described in

13 section 15(d) of the Wagner-Peyser Act; and

14 (4) assist in the monitoring and continuous im15 provement of the performance of the statewide

16 workforce investment system, including the evalua17 tion of the effectiveness of workforce investment ac18 tivities carried out under this subtitle in serving the

19 needs of employers seeking skilled employees and in20 dividuals seeking services.

21 (e) AUTHORITY OF GOVERNOR.—

22 (1) AUTHORITY.—The Governor shall have the

23 final authority to determine the contents of and sub24 mit the State plan described in section 304.
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•S 1186 IS

1 (2) PROCESS.—Prior to the date on which the

2 Governor submits a State plan under section 304,

3 the Governor shall—

4 (A) make available copies of a proposed

5 State plan to the public;

6 (B) allow members of the statewide part7 nership and members of the public to submit

8 comments on the proposed State plan to the

9 Governor, not later than the end of the 30-day

10 period beginning on the date on which the pro11 posed State plan is made available; and

12 (C) include with the State plan submitted

13 to the Secretary under section 304 any such

14 comments that represent disagreement with the

15 plan.

16 SEC. 304. STATE PLAN.

17 (a) IN GENERAL.—For a State to be eligible to re18 ceive an allotment under section 302, the Governor of the

19 State shall submit to the Secretary for approval a single

20 comprehensive State plan (referred to in this title as the

21 ‘‘State plan’’) that outlines a 3-year strategy for the state22 wide workforce investment system of the State and that

23 meets the requirements of section 303 and this section.

24 (b) CONTENTS.—The State plan shall include—
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•S 1186 IS

1 (1) a description of the statewide partnership

2 described in section 303 used in developing the plan;

3 (2) a description of State-imposed requirements

4 for the statewide workforce investment system;

5 (3) a description of the State performance

6 measures developed for the workforce investment ac7 tivities to be carried out through the system, that in8 cludes information identifying the State performance

9 measures, established in accordance with section

10 321(a);

11 (4) information describing—

12 (A) the needs of the State with regard to

13 current and projected employment opportuni14 ties;

15 (B) the job skills necessary to obtain the

16 needed employment opportunities;

17 (C) the economic development needs of the

18 State; and

19 (D) the type and availability of workforce

20 investment activities in the State;

21 (5) an identification of local areas designated in

22 the State, including a description of the process used

23 for the designation of such areas, which shall—

24 (A) ensure a linkage between participants

25 in workforce investment activities funded under
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•S 1186 IS

1 this subtitle, and local employment opportuni2 ties;

3 (B) ensure that a significant portion of the

4 population that lives in the local area also

5 works in the same local area;

6 (C) ensure cooperation and coordination of

7 activities between neighboring local areas; and

8 (D) take into consideration State economic

9 development areas;

10 (6) an identification of criteria for the appoint11 ment of members of local partnerships based on the

12 requirements of section 308;

13 (7) the detailed plans required under section 8

14 of the Wagner-Peyser Act;

15 (8) a description of the measures that will be

16 taken by the State to assure coordination of and

17 avoid duplication among—

18 (A) workforce investment activities author19 ized under this subtitle;

20 (B) other activities authorized under this

21 title;

22 (C) activities authorized under title I or II;

23 (D) programs authorized under the Wag24 ner-Peyser Act (29 U.S.C. 49 et seq.), title I of

25 the Rehabilitation Act of 1973 (29 U.S.C. 720
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•S 1186 IS

1 et seq.), part A of title IV of the Social Security

2 Act (42 U.S.C. 601 et seq.), and section 6(d)

3 of the Food Stamp Act of 1977 (7 U.S.C.

4 2015(d)), and activities authorized under title V

5 of the Older Americans Act of 1965 (42 U.S.C.

6 3056 et seq.);

7 (E) work programs authorized under sec8 tion 6(o) of the Food Stamp Act of 1977 (7

9 U.S.C. 2015(o));

10 (F) activities authorized under chapter 2

11 of title II of the Trade Act of 1974 (19 U.S.C.

12 2271 et seq.);

13 (G) activities authorized under chapter 41

14 of title 38, United States Code;

15 (H) activities carried out by the Bureau of

16 Apprenticeship and Training;

17 (I) training activities carried out by the

18 Department of Housing and Urban Develop19 ment; and

20 (J) programs authorized under State un21 employment compensation laws and the Federal

22 unemployment insurance program under titles

23 III, IX, and XII of the Social Security Act (42

24 U.S.C. 501 et seq., 1101 et seq., and 1321 et

25 seq.);
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•S 1186 IS

1 (9) a description of the process used by the

2 State to provide an opportunity for public comment,

3 and input into the development of the State plan,

4 prior to submission of the plan;

5 (10) a description of the process for the public

6 to comment on members of the local partnerships;

7 (11) a description of the length of terms and

8 appointment processes for members of the statewide

9 partnership and local partnerships in the State;

10 (12) information identifying how the State will

11 leverage any funds the State receives under this sub12 title with other private and Federal resources;

13 (13) assurances that the State will provide, in

14 accordance with section 374, for fiscal control and

15 fund accounting procedures that may be necessary

16 to ensure the proper disbursement of, and account17 ing for, funds paid to the State through the allot18 ment made under section 302;

19 (14) if appropriate, a description of a within20 State allocation formula—

21 (A) that is based on factors relating to ex22 cess poverty in local areas or excess unemploy23 ment above the State average in local areas;

24 and
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•S 1186 IS

1 (B) through which the State may distrib2 ute the funds the State receives under this sub3 title for adult employment and training activi4 ties or youth activities to local areas;

5 (15) an assurance that the funds made avail6 able to the State through the allotment made under

7 section 302 will supplement and not supplant other

8 public funds expended to provide activities described

9 in this subtitle;

10 (16) information indicating—

11 (A) how the services of one-stop partners

12 in the State will be provided through the one13 stop customer service system;

14 (B) how the costs of such services and the

15 operating costs of the system will be funded;

16 and

17 (C) how the State will assist in the devel18 opment and implementation of the operating

19 agreement described in section 311(c);

20 (17) information specifying the actions that

21 constitute a conflict of interest prohibited in the

22 State for purposes of section 308(g)(2)(B);

23 (18) a description of a core set of consistently

24 defined data elements for reporting on the activities
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•S 1186 IS

1 carried out through the one-stop customer service

2 system in the State;

3 (19) with respect to employment and training

4 activities funded under this subtitle, information—

5 (A) describing the employment and train6 ing activities that will be carried out with the

7 funds the State receives under this subtitle, and

8 a description of how the State will provide rapid

9 response activities to dislocated workers;

10 (B) describing the State strategy for devel11 opment of a fully operational statewide one-stop

12 customer service system as described in section

13 315(b), including—

14 (i) criteria for use by chief elected of15 ficials and local partnerships, for designat16 ing or certifying one-stop customer service

17 center operators, appointing one-stop part18 ners, and conducting oversight with respect

19 to the one-stop customer service system,

20 for each local area; and

21 (ii) the steps that the State will take

22 over the 3 years covered by the plan to en23 sure that all publicly funded labor ex24 change services described in section

25 315(c)(2) or the Wagner-Peyser Act (29
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•S 1186 IS

1 U.S.C. 49 et seq.), will be available

2 through the one-stop customer service sys3 tem of the State;

4 (C) describing the criteria used by the local

5 partnership in the development of the local plan

6 described in section 309; and

7 (D) describing the procedures the State

8 will use to identify eligible providers of training

9 services, as required under this subtitle; and

10 (20) with respect to youth activities funded

11 under this subtitle, information—

12 (A) describing the youth activities that will

13 be carried out with the funds the State receives

14 under this subtitle;

15 (B) identifying the criteria to be used by

16 the local partnership in awarding grants under

17 section 313 for youth activities;

18 (C) identifying the types of criteria the

19 Governor and local partnerships will use to

20 identify effective and ineffective youth activities

21 and eligible providers of such activities; and

22 (D) describing how the State will coordi23 nate the youth activities carried out in the

24 State under this subtitle with the services pro25 vided by Job Corps centers in the State.
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•S 1186 IS

1 (c) PLAN SUBMISSION AND APPROVAL.—A State

2 plan submitted to the Secretary under this section by a

3 Governor shall be considered to be approved by the Sec4 retary at the end of the 60-day period beginning on the

5 day the Secretary receives the plan, unless the Secretary

6 makes a written determination, during the 60-day period,

7 that—

8 (1) the plan is inconsistent with a specific pro9 vision of this title; or

10 (2) the levels of performance have not been

11 agreed to pursuant to section 321(a)(4).

12 (d) MODIFICATIONS TO INITIAL PLAN.—A State may

13 submit, for approval by the Secretary, substantial modi14 fications to the State plan in accordance with the require15 ments of this section and section 303, as necessary, during

16 the 3-year period of the plan.

17 CHAPTER 2—ALLOCATIONS TO LOCAL

18 WORKFORCE INVESTMENT AREAS

19 SEC. 306. WITHIN STATE ALLOCATIONS.

20 (a) RESERVATIONS FOR STATE ACTIVITIES.—

21 (1) ADULT EMPLOYMENT AND TRAINING AC22 TIVITIES, DISLOCATED WORKER EMPLOYMENT AND

23 TRAINING ACTIVITIES, AND YOUTH ACTIVITIES.—

24 The Governor of a State shall reserve not more than

25 15 percent of each of the amounts allotted to the
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•S 1186 IS

1 State under paragraphs (1)(B), (2)(B), and

2 (3)(C)(ii) of section 302(b) for a fiscal year for

3 statewide workforce investment activities described

4 in subsections (b)(2) and (c) of section 314.

5 (2) STATEWIDE RAPID RESPONSE ACTIVI6 TIES.—The Governor of the State shall reserve not

7 more than 25 percent of the total amount allotted

8 to the State under section 302(b)(2)(B) for a fiscal

9 year for statewide rapid response activities described

10 in section 314(b)(1).

11 (b) WITHIN STATE ALLOCATION.—

12 (1) ALLOCATION.—The Governor of the State

13 shall allocate to the local areas the funds that are

14 allotted to the State under section 302(b) and are

15 not reserved under subsection (a) for the purpose of

16 providing employment and training activities to eligi17 ble participants pursuant to section 315 and youth

18 activities to eligible participants pursuant to section

19 316.

20 (2) METHODS.—The State, acting in accord21 ance with the State plan, and after consulting with

22 chief elected officials in the local areas, shall allo23 cate—

24 (A) the funds that are allotted to the State

25 for adult employment and training activities
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•S 1186 IS

1 under section 302(b)(1)(B) and are not re2 served under subsection (a)(1), in accordance

3 with paragraph (3) or (4);

4 (B) the funds that are allotted to the State

5 for dislocated worker employment and training

6 activities under section 302(b)(2)(B) and are

7 not reserved under paragraph (1) or (2) of sub8 section (a), in accordance with paragraph (3);

9 and

10 (C) the funds that are allotted to the State

11 for youth activities under section

12 302(b)(3)(C)(ii) and are not reserved under

13 subsection (a)(1), in accordance with paragraph

14 (3) or (4).

15 (3) ADULT EMPLOYMENT AND TRAINING AC16 TIVITIES, DISLOCATED WORKER EMPLOYMENT AND

17 TRAINING ACTIVITIES, AND YOUTH ACTIVITIES FOR18 MULA ALLOCATIONS.—

19 (A) ADULT EMPLOYMENT AND TRAINING

20 ACTIVITIES.—In allocating the funds described

21 in paragraph (2)(A) to local areas, a State may

22 allocate—

(i) 331 23 ⁄3 percent of the funds on the

24 basis described in section

25 302(b)(1)(B)(ii)(I);
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•S 1186 IS

(ii) 331 1 ⁄3 percent of the funds on the

2 basis described in section

3 302(b)(1)(B)(ii)(II); and

(iii) 331 4 ⁄3 percent of the funds on the

5 basis described in section

6 302(b)(1)(B)(ii)(III).

7 (B) DISLOCATED WORKER EMPLOYMENT

8 AND TRAINING ACTIVITIES.—In allocating the

9 funds described in paragraph (2)(B) to local

10 areas, a State shall allocate—

(i) 331 11 ⁄3 percent of the funds on the

12 basis described in section

13 302(b)(2)(B)(ii)(I);

(ii) 331 14 ⁄3 percent of the funds on the

15 basis described in section

16 302(b)(2)(B)(ii)(II); and

(iii) 331 17 ⁄3 percent of the funds on the

18 basis described in section

19 302(b)(2)(B)(ii)(III).

20 (C) YOUTH ACTIVITIES.—In allocating the

21 funds described in paragraph (2)(C) to local

22 areas, a State may allocate—

(i) 331 23 ⁄3 percent of the funds on the

24 basis described in section

25 302(b)(3)(C)(ii)(I);
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•S 1186 IS

(ii) 331 1 ⁄3 percent of the funds on the

2 basis described in section

3 302(b)(3)(C)(ii)(II); and

(iii) 331 4 ⁄3 percent of the funds on the

5 basis described in section

6 302(b)(3)(C)(ii)(III).

7 (D) APPLICATION.—For purposes of carry8 ing out subparagraphs (A), (B), and (C), and

9 subparagraphs (A) and (B) of paragraph (4)—

10 (i) references in section 302(b) to a

11 State shall be deemed to be references to

12 a local area; and

13 (ii) references in section 302(b) to all

14 States shall be deemed to be references to

15 all local areas in the State involved.

16 (4) ADULT EMPLOYMENT AND TRAINING AND

17 YOUTH DISCRETIONARY ALLOCATIONS.—

18 (A) ADULT EMPLOYMENT AND TRAINING

19 ACTIVITIES.—In lieu of making the allocation

20 described in paragraph (3)(A), in allocating the

21 funds described in paragraph (2)(A) to local

22 areas, a State may distribute—

23 (i) a portion equal to not less than 70

24 percent of the funds in accordance with

25 paragraph (3)(A); and
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•S 1186 IS

1 (ii) the remaining portion of the funds

2 on the basis of a formula that—

3 (I) takes into consideration fac4 tors relating to excess poverty in local

5 areas or excess unemployment above

6 the State average in local areas; and

7 (II) was developed by the state8 wide partnership and approved by the

9 Secretary as part of the State plan.

10 (B) YOUTH ACTIVITIES.—In lieu of mak11 ing the allocation described in paragraph

12 (3)(C), in allocating the funds described in

13 paragraph (2)(C) to local areas, a State may

14 distribute—

15 (i) a portion equal to not less than 70

16 percent of the funds in accordance with

17 paragraph (3)(C); and

18 (ii) the remaining portion of the funds

19 on the basis of a formula that—

20 (I) takes into consideration fac21 tors relating to excess youth poverty

22 in local areas or excess unemployment

23 above the State average in local areas;

24 and
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•S 1186 IS

1 (II) was developed by the state2 wide partnership and approved by the

3 Secretary as part of the State plan.

4 (5) LIMITATION.—

5 (A) IN GENERAL.—Not more than 15 per6 cent of the amount allocated to a local area for

7 a fiscal year—

8 (i) under paragraph (3)(A) or (4)(A)

9 may be used by the local partnership for

10 the area for the administrative cost of car11 rying out local adult employment and

12 training activities;

13 (ii) under paragraph (3)(B) may be

14 used by the local partnership for the ad15 ministrative cost of carrying out local dis16 located worker employment and training

17 activities; and

18 (iii) under paragraph (3)(C) or (4)(B)

19 may be used by the local partnership for

20 the administrative cost of carrying out

21 local youth activities.

22 (B) REGULATIONS.—The Secretary, after

23 consulting with the Governors, shall develop

24 and issue regulations that define the term ‘‘ad25 ministrative cost’’ for purposes of this title.
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•S 1186 IS

1 (6) TRANSFER AUTHORITY.—A local partner2 ship may transfer, if such a transfer is approved by

3 the Governor, not more than 20 percent of the funds

4 allocated to the local area under paragraph (3)(A) or

5 (4)(A), and 20 percent of the funds allocated to the

6 local area under paragraph (3)(B), for a fiscal year

7 between—

8 (A) adult employment and training activi9 ties; and

10 (B) dislocated worker employment and

11 training activities.

12 (7) FISCAL AUTHORITY.—

13 (A) FISCAL AGENT.—The chief elected of14 ficial in a local area shall serve as the fiscal

15 agent for, and shall be liable for any misuse of,

16 the funds allocated to the local area under this

17 section, unless the chief elected official reaches

18 an agreement with the Governor for the Gov19 ernor to act as the fiscal agent and bear such

20 liability.

21 (B) DISBURSAL.—The fiscal agent shall

22 disburse such funds for workforce investment

23 activities at the direction of the local partner24 ship, pursuant to the requirements of this title,

25 if the direction does not violate a provision of
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•S 1186 IS

1 this Act. The fiscal agent shall disburse funds

2 immediately on receiving such direction from

3 the local partnership.

4 SEC. 307. LOCAL WORKFORCE INVESTMENT AREAS.

5 (a) DESIGNATION OF AREAS.—

6 (1) IN GENERAL.—Except as provided in sub7 section (b) and paragraph (2), the Governor shall

8 designate local workforce investment areas in the

9 State, in accordance with the State plan require10 ments described in section 304(b)(5).

11 (2) AUTOMATIC DESIGNATION.—

12 (A) IN GENERAL.—The Governor of the

13 State shall approve a request for designation as

14 a local area from any unit of general local gov15 ernment with a population of 500,000 or more,

16 if the designation meets the State plan require17 ments described in section 304(b)(5).

18 (B) LARGE COUNTIES.—A county with a

19 population of 500,000 or more may request

20 such designation only with the agreement of the

21 political subdivisions within the county with

22 populations of 200,000 or more.

23 (C) LARGE POLITICAL SUBDIVISIONS.—

24 Single units of general local government with

25 populations of 200,000 or more that are service
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•S 1186 IS

1 delivery areas on the date of enactment of this

2 Act shall have an automatic right to request

3 designation as local areas under this section.

4 (3) PERMANENT DESIGNATION.—Once the

5 boundaries for a local area are determined under

6 this section in accordance with the State plan, the

7 boundaries shall not change except with the approval

8 of the Governor.

9 (b) SMALL STATES.—The Governor of any State de10 termined to be eligible to receive a minimum allotment

11 under paragraph (1), (2), or (3) of section 302(b) for the

12 first year covered by the State plan may designate the

13 State as a single State local area for the purposes of this

14 title. The Governor shall identify the State as a local area

15 under section 304(b)(5), in lieu of designating local areas

16 as described in subparagraphs (A), (B), and (C) of section

17 304(b)(5).

18 SEC. 308. LOCAL WORKFORCE INVESTMENT PARTNER19 SHIPS AND YOUTH PARTNERSHIPS.

20 (a) ESTABLISHMENT OF LOCAL PARTNERSHIP.—

21 There shall be established in each local area of a State,

22 and certified by the Governor of the State, a local

23 workforce investment partnership.

24 (b) ROLE OF LOCAL PARTNERSHIP.—The primary

25 role of the local partnership shall be to set policy for the
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1 portion of the statewide workforce investment system

2 within the local area, including—

3 (1) ensuring that the activities authorized

4 under this subtitle and carried out in the local area

5 meet local performance measures that include high

6 academic and skill measures;

7 (2) ensuring that the activities meet the needs

8 of employers and jobseekers; and

9 (3) ensuring the continuous improvement of the

10 system.

11 (c) MEMBERSHIP OF LOCAL PARTNERSHIP.—

12 (1) STATE CRITERIA.—The Governor of the

13 State shall establish criteria for the appointment of

14 members of the local partnerships for local areas in

15 the State in accordance with the requirements of

16 paragraph (2). Information identifying such criteria

17 shall be included in the State plan, as described in

18 section 304(b)(6).

19 (2) COMPOSITION.—Such criteria shall require,

20 at a minimum, that the membership of each local

21 partnership—

22 (A) shall include—

23 (i) a majority of members who—

24 (I) are representatives of busi25 ness in the local area;
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1 (II) are owners of businesses,

2 chief executives or operating officers

3 of private businesses, and other busi4 ness executives or employers with op5 timum policymaking or hiring author6 ity;

7 (III) represent businesses with

8 employment opportunities that reflect

9 the employment opportunities of the

10 local area; and

11 (IV) are appointed from among

12 individuals nominated by local busi13 ness organizations and business trade

14 associations;

15 (ii) chief officers representing local

16 postsecondary educational institutions, rep17 resentatives of vocational education provid18 ers, and representatives of adult education

19 providers;

20 (iii) chief officers representing labor

21 organizations (for a local area in which

22 such representatives reside), nominated by

23 local labor federations, or (for a local area

24 in which such representatives do not re-
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1 side) other representatives of employees;

2 and

3 (iv) chief officers representing eco4 nomic development agencies, including pri5 vate sector economic development entities;

6 and

7 (B) may include chief officers who have

8 policymaking authority, from one-stop partners

9 who have entered into an operating agreement

10 described in section 311(c) to participate in the

11 one-stop customer service system in the local

12 area; and

13 (C) may include such other individuals or

14 representatives of entities as the chief elected

15 official in the local area may determine to be

16 appropriate.

17 (3) CHAIRPERSON.—The local partnership shall

18 elect a chairperson from among the members of the

19 partnership described in paragraph (2)(A)(i).

20 (d) APPOINTMENT AND CERTIFICATION OF LOCAL

21 PARTNERSHIP.—

22 (1) APPOINTMENT OF LOCAL PARTNERSHIP

23 MEMBERS AND ASSIGNMENT OF RESPONSIBIL24 ITIES.—
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1 (A) IN GENERAL.—The chief elected offi2 cial in a local area is authorized to appoint the

3 members of the local partnership for such area,

4 in accordance with the State criteria established

5 under subsection (c).

6 (B) MULTIPLE UNITS OF LOCAL GOVERN7 MENT IN AREA.—

8 (i) IN GENERAL.—In a case in which

9 a local area includes more than 1 unit of

10 general local government, the chief elected

11 officials of such units may execute an

12 agreement that specifies the respective

13 roles of the individual chief elected offi14 cials—

15 (I) in the appointment of the

16 members of the local partnership from

17 the individuals nominated or rec18 ommended to be such members in ac19 cordance with the criteria established

20 under subsection (c); and

21 (II) in carrying out any other re22 sponsibilities assigned to such officials

23 under this subtitle.

24 (ii) LACK OF AGREEMENT.—If, after

25 a reasonable effort, the chief elected offi-
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1 cials are unable to reach agreement as pro2 vided under clause (i), the Governor may

3 appoint the members of the local partner4 ship from individuals so nominated or rec5 ommended.

6 (2) CERTIFICATION.—

7 (A) IN GENERAL.—The Governor shall an8 nually certify 1 local partnership for each local

9 area in the State.

10 (B) CRITERIA.—Such certification shall be

11 based on criteria established under subsection

12 (c) and, for a second or subsequent certifi13 cation, the extent to which the local partnership

14 has ensured that workforce investment activities

15 carried out in the local area have enabled the

16 local area to meet the local performance meas17 ures required under section 321(b).

18 (C) FAILURE TO ACHIEVE CERTIFI19 CATION.—Failure of a local partnership to

20 achieve certification shall result in reappoint21 ment and certification of another local partner22 ship for the local area pursuant to the process

23 described in paragraph (1) and this paragraph.

24 (3) DECERTIFICATION.—
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1 (A) IN GENERAL.—Notwithstanding para2 graph (2), the Governor may decertify a local

3 partnership at any time for—

4 (i) fraud or abuse; or

5 (ii) failure to carry out the functions

6 specified for the local partnership in para7 graphs (1) through (5) of subsection (e);

8 after providing notice and an opportunity for

9 comment.

10 (B) PLAN.—If the Governor decertifies a

11 local partnership for a local area, the Governor

12 may require that a local partnership be ap13 pointed and certified for the local area pursuant

14 to a plan developed by the Governor in con15 sultation with the chief elected official in the

16 local area and in accordance with the criteria

17 established under subsection (c).

18 (4) EXCEPTION.—Notwithstanding subsection

19 (c) and paragraphs (1) and (2), if a State described

20 in section 307(b) designates the State as a local

21 area in the State plan, the Governor may designate

22 the statewide partnership described in section 303 to

23 carry out any of the functions described in sub24 section (e).
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1 (e) FUNCTIONS OF LOCAL PARTNERSHIP.—The

2 functions of the local partnership shall include—

3 (1) developing and submitting a local plan as

4 described in section 309 in partnership with the ap5 propriate chief elected official;

6 (2) appointing, certifying, or designating one7 stop partners and one-stop customer service center

8 operators, pursuant to the criteria specified in the

9 local plan;

10 (3) conducting oversight with respect to the

11 one-stop customer service system;

12 (4) modifying the list of eligible providers of

13 training services pursuant to subsections (b)(3)(B)

14 and (c)(2)(B) of section 312;

15 (5) setting local performance measures pursu16 ant to section 312(b)(2)(D)(ii);

17 (6) analyzing and identifying—

18 (A) current and projected local employ19 ment opportunities; and

20 (B) the skills necessary to obtain such

21 local employment opportunities;

22 (7) coordinating the workforce investment ac23 tivities carried out in the local area with economic

24 development strategies and developing other em25 ployer linkages with such activities; and
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•S 1186 IS

1 (8) assisting the Governor in developing the

2 statewide labor market information system described

3 in section 15(d) of the Wagner-Peyser Act.

4 (f) SUNSHINE PROVISION.—The local partnership

5 shall make available to the public, on a regular basis,

6 through open meetings, information regarding the activi7 ties of the local partnership, including information regard8 ing membership, the appointment of one-stop partners,

9 the designation and certification of one-stop customer

10 service center operators, and the award of grants to eligi11 ble providers of youth activities.

12 (g) OTHER ACTIVITIES OF LOCAL PARTNERSHIP.—

13 (1) LIMITATION.—

14 (A) IN GENERAL.—Except as provided in

15 subparagraph (B), no local partnership may di16 rectly carry out or enter into a contract for a

17 training service described in section 315(c)(3).

18 (B) WAIVERS.—The Governor of the State

19 in which the local partnership is located may

20 grant to the local partnership a written waiver

21 of the prohibition set forth in subparagraph

22 (A), if the local partnership provides substantial

23 evidence that a private or public entity is not

24 available to provide the training service and

25 that the activity is necessary to provide an em-
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•S 1186 IS

1 ployment opportunity described in the local plan

2 described in section 309.

3 (2) CONFLICT OF INTEREST.—No member of a

4 local partnership may—

5 (A) vote on a matter under consideration

6 by the local partnership—

7 (i) regarding the provision of services

8 by such member (or by an organization

9 that such member represents); or

10 (ii) that would provide direct financial

11 benefit to such member or the immediate

12 family of such member; or

13 (B) engage in any other activity deter14 mined by the Governor to constitute a conflict

15 of interest as specified in the State plan.

16 (h) TECHNICAL ASSISTANCE.—If a local area fails to

17 meet established State or local performance measures, the

18 Governor shall provide technical assistance to the local

19 partnership involved to improve the performance of the

20 local area.

21 (i) YOUTH PARTNERSHIP.—

22 (1) ESTABLISHMENT.—There shall be estab23 lished in each local area of a State, a youth partner24 ship appointed by the local partnership, in coopera25 tion with the chief elected official, in the local area.
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1 (2) MEMBERSHIP.—The membership of each

2 youth partnership—

3 (A) shall include—

4 (i) 1 or more members of the local

5 partnership;

6 (ii) representatives of youth service

7 agencies, including juvenile justice agen8 cies;

9 (iii) representatives of local public

10 housing authorities;

11 (iv) parents of youth seeking assist12 ance under this subtitle;

13 (v) individuals, including former par14 ticipants, and representatives of organiza15 tions, that have experience relating to

16 youth activities; and

17 (vi) representatives of the Job Corps,

18 as appropriate; and

19 (B) may include such other individuals as

20 the chairperson of the local partnership, in co21 operation with the chief elected official, deter22 mines to be appropriate.

23 (3) DUTIES.—The duties of the youth partner24 ship include—
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1 (A) the development of the portions of the

2 local plan relating to youth, as determined by

3 the chairperson of the local partnership;

4 (B) awarding grants to, and conducting

5 oversight with respect to, eligible providers of

6 youth activities, as described in section 313, in

7 the local area;

8 (C) coordinating youth activities in the

9 local area; and

10 (D) other duties determined to be appro11 priate by the chairperson of the local partner12 ship.

13 SEC. 309. LOCAL PLAN.

14 (a) IN GENERAL.—Each local partnership shall de15 velop and submit to the Governor a comprehensive 3-year

16 local plan (referred to in this title as the ‘‘local plan’’),

17 in partnership with the appropriate chief elected official.

18 The local plan shall be consistent with the State plan.

19 (b) CONTENTS.—The local plan shall include—

20 (1) an identification of the needs of the local

21 area with regard to current and projected employ22 ment opportunities;

23 (2) an identification of the job skills necessary

24 to obtain such employment opportunities;
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1 (3) a description of the activities to be used

2 under this subtitle to link local employers and local

3 job seekers;

4 (4) an identification and assessment of the type

5 and availability of adult and dislocated worker em6 ployment and training activities in the local area;

7 (5) an identification of successful eligible pro8 viders of youth activities in the local area;

9 (6) a description of the measures that will be

10 taken by the local area to assure coordination of and

11 avoid duplication among the programs and activities

12 described in section 304(b)(8);

13 (7) a description of the manner in which the

14 local partnership will coordinate activities carried

15 out under this subtitle in the local area with such

16 activities carried out in neighboring local areas;

17 (8) a description of the competitive process to

18 be used to award grants in the local area for activi19 ties carried out under this subtitle;

20 (9) information describing local performance

21 measures for the local area that are based on the

22 performance measures in the State plan;

23 (10) in accordance with the State plan, a de24 scription of the criteria that the chief elected official

25 in the local area and the local partnership will use
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1 to appoint, designate, or certify, and to conduct

2 oversight with respect to, one-stop customer service

3 center systems in the local area; and

4 (11) such other information as the Governor

5 may require.

6 (c) PLAN SUBMISSION AND APPROVAL.—A local plan

7 submitted to the Governor under this section shall be con8 sidered to be approved by the Governor at the end of the

9 60-day period beginning on the day the Governor receives

10 the plan, unless the Governor makes a written determina11 tion during the 60-day period that—

12 (1) entities conducting evaluations conducted

13 under section 321(d) in the local area have found

14 deficiencies in activities carried out under this sub15 title and the local area has not made acceptable

16 progress in implementing corrective measures to ad17 dress the deficiencies; or

18 (2) the plan does not comply with this title.

19 (d) LACK OF AGREEMENT.—If the local partnership

20 and the appropriate chief elected official in the local area

21 cannot agree on the local plan after making a reasonable

22 effort, the Governor may develop the local plan.
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1 CHAPTER 3—WORKFORCE INVESTMENT

2 ACTIVITIES AND PROVIDERS

3 SEC. 311. IDENTIFICATION AND OVERSIGHT OF ONE-STOP

4 PARTNERS AND ONE-STOP CUSTOMER SERV5 ICE CENTER OPERATORS.

6 (a) IN GENERAL.—Consistent with the State plan,

7 the chief elected official and the local partnership may de8 velop and implement operating agreements described in

9 subsection (c) to appoint one-stop partners, may designate

10 or certify one-stop customer service center operators, and

11 may conduct oversight with respect to the one-stop cus12 tomer service system, in the local area.

13 (b) ONE-STOP PARTNERS.—

14 (1) DESIGNATED PARTNERS.—

15 (A) IN GENERAL.—Each entity that car16 ries out a program, services, or activities de17 scribed in subparagraph (B) shall make avail18 able to participants, through a one-stop cus19 tomer service center, the services described in

20 section 315(c)(2) that are applicable to such

21 program, and shall participate in the operation

22 of such center as a party to the agreement de23 scribed in subsection (c).
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1 (B) PROGRAMS; SERVICES; ACTIVITIES.—

2 The programs, services, and activities referred

3 to in subparagraph (A) consist of—

4 (i) core services authorized under this

5 subtitle;

6 (ii) other activities authorized under

7 this title;

8 (iii) activities authorized under title I

9 and title II;

10 (iv) programs authorized under the

11 Wagner-Peyser Act (29 U.S.C. 49 et seq.);

12 (v) programs authorized under title I

13 of the Rehabilitation Act of 1973 (29

14 U.S.C. 729 et seq.);

15 (vi) programs authorized under sec16 tion 403(a)(5) of the Social Security Act

17 (42 U.S.C. 603(a)(5)) (as added by section

18 5001 of the Balanced Budget Act of

19 1997);

20 (vii) programs authorized under title

21 V of the Older Americans Act of 1965 (42

22 U.S.C. 3056 et seq.);

23 (viii) activities authorized under chap24 ter 2 of title II of the Trade Act of 1974

25 (19 U.S.C. 2271 et seq.);
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•S 1186 IS

1 (ix) activities authorized under chap2 ter 41 of title 38, United States Code;

3 (x) activities carried out by the Bu4 reau of Apprenticeship and Training;

5 (xi) training activities carried out by

6 the Department of Housing and Urban

7 Development; and

8 (xii) programs authorized under State

9 unemployment compensation laws and the

10 Federal unemployment insurance program

11 under titles III, IX, and XII of the Social

12 Security Act (42 U.S.C. 501 et seq., 1101

13 et seq., and 1321 et seq.).

14 (2) ADDITIONAL PARTNERS.—

15 (A) IN GENERAL.—In addition to the enti16 ties described in paragraph (1), other entities

17 that carry out human resource programs may

18 make available to participants through a one19 stop customer service center the services de20 scribed in section 315(c)(2) that are applicable

21 to such program, and participate in the oper22 ation of such centers as a party to the agree23 ment described in subsection (c), if the local

24 partnership and chief elected official involved

25 approve such participation.
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•S 1186 IS

1 (B) PROGRAMS.—The programs referred

2 to in subparagraph (A) include—

3 (i) programs authorized under part A

4 of title IV of the Social Security Act;

5 (ii) programs authorized under section

6 6(d)(4) of the Food Stamp Act of 1977 (7

7 U.S.C. 2015(d)(4));

8 (iii) work programs authorized under

9 section 6(o) of the Food Stamp Act of

10 1997 (7 U.S.C. 2015 (o)); and

11 (iv) other appropriate Federal, State,

12 or local programs, including programs in

13 the private sector.

14 (c) OPERATING AGREEMENTS.—

15 (1) IN GENERAL.—The one-stop customer serv16 ice center operator selected pursuant to subsection

17 (d) for a one-stop customer service center shall enter

18 into a written agreement with the local partnership

19 and one-stop partners described in subsection (b)

20 concerning the operation of the center. Such agree21 ment shall be subject to the approval of the chief

22 elected official and the local partnership.

23 (2) CONTENTS.—The written agreement re24 quired under paragraph (1) shall contain—

25 (A) provisions describing—
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1 (i) the services to be provided through

2 the center;

3 (ii) how the costs of such services and

4 the operating costs of the system will be

5 funded,

6 (iii) methods for referral of individuals

7 between the one-stop customer service cen8 ter operators and the one-stop partners,

9 for the appropriate services and activities;

10 (iv) the monitoring and oversight of

11 activities carried out under the agreement;

12 and

13 (v) the duration of the agreement and

14 the procedures for amending the agree15 ment during the term of the agreement;

16 and

17 (B) such other provisions, consistent with

18 the requirements of this title, as the parties to

19 the agreement determine to be appropriate.

20 (d) ONE-STOP CUSTOMER SERVICE CENTER OPERA21 TORS.—

22 (1) IN GENERAL.—To be eligible to receive

23 funds made available under this subtitle to operate

24 a one-stop customer service center, an entity shall—
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•S 1186 IS

1 (A) be designated or certified as a one-stop

2 customer service center operator, as described

3 in subsection (a); and

4 (B) be a public or private entity, or consor5 tium of entities, located in the local area, which

6 entity or consortium may include an institution

7 of higher education (as defined in section 481

8 of the Higher Education Act of 1965 (20

9 U.S.C. 1088), a local employment service office

10 established under the Wagner-Peyser Act (29

11 U.S.C. 49 et seq.), a local government agency,

12 a private for-profit entity, a private nonprofit

13 entity, or other interested entity, of dem14 onstrated effectiveness.

15 (2) EXCEPTION.—Elementary schools and sec16 ondary schools shall not be eligible for designation

17 or certification as one-stop customer service center

18 operators, except that nontraditional secondary

19 schools and area vocational education schools shall

20 be eligible for such designation or certification.

21 (e) ESTABLISHED ONE-STOP CUSTOMER SERVICE

22 SYSTEM.—For a local area in which a one-stop customer

23 service system has been established prior to the date of

24 enactment of this Act, the local partnership, the chief

25 elected official, and the Governor may agree to appoint,
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•S 1186 IS

1 designate, or certify the one-stop partners and one-stop

2 customer service center operators of such system, for pur3 poses of this section.

4 (f) OVERSIGHT.—The local partnership shall conduct

5 oversight with respect to the one-stop customer service

6 center system and may terminate for cause the eligibility

7 of such a partner or operator to provide activities through

8 or operate a one-stop customer service center.

9 SEC. 312. DETERMINATION AND IDENTIFICATION OF ELIGI10 BLE PROVIDERS OF TRAINING SERVICES BY

11 PROGRAM.

12 (a) GENERAL ELIGIBILITY REQUIREMENTS.—

13 (1) IN GENERAL.—Except as provided in sub14 section (e), to be eligible to receive funds made avail15 able under section 306 to provide training services

16 described in section 315(c)(3) (referred to in this

17 title as ‘‘training services’’) and be identified as an

18 eligible provider of such services, a provider of such

19 services shall meet the requirements of this section.

20 (2) PROVIDERS.—To be eligible to receive the

21 funds, the provider shall be—

22 (A) a postsecondary educational institution

23 that—
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•S 1186 IS

1 (i) is eligible to receive Federal funds

2 under title IV of the Higher Education Act

3 of 1965 (20 U.S.C. 1070 et seq.); and

4 (ii) provides a program that leads to

5 an associate degree, baccalaureate degree,

6 or certificate; or

7 (B) another public or private provider of a

8 program.

9 (b) INITIAL DETERMINATION AND IDENTIFICA10 TION.—

11 (1) POSTSECONDARY EDUCATIONAL INSTITU12 TIONS.—To be eligible to receive funds as described

13 in subsection (a), an institution described in sub14 section (a)(2)(A) shall submit an application at such

15 time, in such manner, and containing such informa16 tion as the designated State agency described in sub17 section (f) may require, after consultation with the

18 local partnerships in the State. On submission of the

19 application, the institution shall automatically be ini20 tially eligible to receive such funds for the program

21 described in subsection (a)(2)(A).

22 (2) OTHER PROVIDERS.—

23 (A) PROCEDURE.—The Governor, in con24 sultation with the local partnerships in the

25 State, shall establish a procedure for determin-
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•S 1186 IS

1 ing the initial eligibility of providers described

2 in subsection (a)(2)(B) to receive such funds

3 for specified programs. The procedure shall re4 quire a provider of a program to meet minimum

5 acceptable levels of performance based on—

6 (i) performance criteria relating to the

7 rates, percentages, increases, and costs de8 scribed in subparagraph (C) for the pro9 gram, as demonstrated using verifiable

10 program-specific performance information

11 described in subparagraph (C) and submit12 ted to the designated State agency, as re13 quired under subparagraph (C); and

14 (ii) performance criteria relating to

15 any characteristics for which local partner16 ships request the submission of informa17 tion under subparagraph (D) for the pro18 gram, as demonstrated using the informa19 tion submitted.

20 (B) MINIMUM LEVELS.—The Governor

21 shall—

22 (i) consider, in determining such mini23 mum levels—

24 (I) criteria relating to the eco25 nomic, geographic, and demographic
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•S 1186 IS

1 factors in the local areas in which the

2 provider provides the program; and

3 (II) the characteristics of the

4 population served by such provider

5 through the program; and

6 (ii) verify the minimum levels of per7 formance by using quarterly records de8 scribed in section 321.

9 (C) APPLICATION.—To be initially eligible

10 to receive funds as described in subsection (a),

11 a provider described in subsection (a)(2)(B)

12 shall submit an application at such time, in

13 such manner, and containing such information

14 as the designated State agency may require, in15 cluding performance information on—

16 (i) program completion rates for par17 ticipants in the applicable program con18 ducted by the provider;

19 (ii) the percentage of the graduates of

20 the program placed in unsubsidized em21 ployment in an occupation related to the

22 program conducted;

23 (iii) retention rates of the graduates

24 in unsubsidized employment—
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•S 1186 IS

1 (I) 6 months after completion of

2 the program; and

3 (II) 12 months after completion

4 of the program;

5 (iv) the wages received by the grad6 uates placed in unsubsidized employment

7 after the completion of participation in the

8 program—

9 (I) on the first day of the em10 ployment;

11 (II) 6 months after the first day

12 of the employment; and

13 (III) 12 months after the first

14 day of the employment;

15 (v) where appropriate, the rates of li16 censure or certification of the graduates,

17 attainment of academic degrees or equiva18 lents, or attainment of other measures of

19 skill; and

20 (vi) program cost per participant in

21 the program.

22 (D) ADDITIONAL INFORMATION.—

23 (i) IN GENERAL.—In addition to the

24 performance information described in sub25 paragraph (C), the local partnerships in
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•S 1186 IS

1 the State involved may require that a pro2 vider submit, to the local partnerships and

3 to the designated State agency, other per4 formance information relating to the pro5 gram to be initially identified as an eligible

6 provider of training services, including in7 formation regarding the ability of the pro8 vider to provide continued counseling and

9 support regarding the workplace to the

10 graduates, for not less than 12 months

11 after the graduation involved.

12 (ii) HIGHER LEVELS OF PERFORM13 ANCE ELIGIBILITY.—The local partnership

14 may require higher levels of performance

15 than the minimum levels established under

16 subparagraph (A)(i) for initial eligibility to

17 receive funds as described in subsection

18 (a).

19 (3) LIST OF ELIGIBLE PROVIDERS BY PRO20 GRAM.—

21 (A) IN GENERAL.—The designated State

22 agency, after reviewing the performance infor23 mation described in paragraph (2)(C) and any

24 information required to be submitted under
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•S 1186 IS

1 paragraph (2)(D) and using the procedure de2 scribed in paragraph (2)(B), shall—

3 (i) identify eligible providers of train4 ing services described in subparagraphs

5 (A) and (B) of subsection (a)(2), including

6 identifying the programs of the providers

7 through which the providers may offer the

8 training services; and

9 (ii) compile a list of the eligible pro10 viders, and the programs, accompanied by

11 the performance information described in

12 paragraph (2)(C) and any information re13 quired to be submitted under paragraph

14 (2)(D) for each such provider described in

15 subsection (a)(2)(B).

16 (B) LOCAL MODIFICATION.—The local

17 partnership may modify such list by reducing

18 the number of eligible providers listed, to en19 sure that the eligible providers carry out pro20 grams that provide skills that enable partici21 pants to obtain local employment opportunities.

22 (c) SUBSEQUENT ELIGIBILITY.—

23 (1) INFORMATION AND CRITERIA.—To be eligi24 ble to continue to receive funds as described in sub25 section (a) for a program, a provider shall—
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•S 1186 IS

1 (A) submit the performance information

2 described in subsection (b)(2)(C) and any infor3 mation required to be submitted under sub4 section (b)(2)(D) annually to the designated

5 State agency at such time and in such manner

6 as the designated State agency may require for

7 the program;

8 (B) annually meet the performance criteria

9 described in subclause (I) and (if applicable)

10 subclause (II) of subsection (b)(2)(B)(i) for the

11 program; and

12 (C) annually meet local performance meas13 ures, as demonstrated utilizing quarterly

14 records described in section 321, for the pro15 gram.

16 (2) LIST OF ELIGIBLE PROVIDERS BY PRO17 GRAM.—

18 (A) IN GENERAL.—The designated State

19 agency, after reviewing the performance infor20 mation and any other information submitted

21 under paragraph (1) and using the procedure

22 described in subsection (b)(2)(A), shall identify

23 eligible providers and programs, and compile a

24 list of the providers and programs, as described

25 in subsection (b)(3), accompanied by the per-
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•S 1186 IS

1 formance information and other information for

2 each such provider.

3 (B) LOCAL MODIFICATION.—The local

4 partnership may modify such list by reducing

5 the number of eligible providers listed, to en6 sure that the eligible providers carry out pro7 grams that provide skills that enable partici8 pants to obtain local employment opportunities.

9 (3) AVAILABILITY.—Such list and information

10 shall be made widely available to participants in em11 ployment and training activities funded under this

12 subtitle, and to others, through the one-stop cus13 tomer service system described in section 315(b).

14 (d) ENFORCEMENT.—

15 (1) ACCURACY OF INFORMATION.—If the des16 ignated State agency, after consultation with the

17 local partnership involved, determines that a pro18 vider or individual supplying information on behalf

19 of a provider intentionally supplies inaccurate infor20 mation under this section, the agency shall termi21 nate the eligibility of the eligible provider to receive

22 funds described in subsection (a) for a period of

23 time, but not less than 2 years.

24 (2) COMPLIANCE WITH CRITERIA OR REQUIRE25 MENTS.—If the designated State agency, after con-
218

•S 1186 IS

1 sultation with the local partnership, determines that

2 an eligible provider or a program of training services

3 carried out by an eligible provider fails to meet the

4 required performance criteria and performance

5 measures described in subparagraphs (B) and (C) of

6 subsection (c)(1) or materially violates any provision

7 of this title, including the regulations promulgated

8 to implement this title, the agency may terminate

9 the eligibility of the eligible provider to receive funds

10 described in subsection (a) for such program or take

11 such other action as the agency determines to be ap12 propriate.

13 (3) REPAYMENT.—Any provider whose eligi14 bility is terminated under paragraph (1) or (2) for

15 a program shall be liable for repayment of funds de16 scribed in subsection (a) received for the program

17 during any period of noncompliance described in

18 such paragraph.

19 (4) APPEAL.—The Governor shall establish a

20 procedure for an eligible provider to appeal a deter21 mination by the designated State agency that results

22 in termination of eligibility under this subsection.

23 Such procedure shall provide an opportunity for a

24 hearing and prescribe appropriate time limits to en25 sure prompt resolution of the appeal.
219

•S 1186 IS

1 (e) ON-THE-JOB TRAINING EXCEPTION.—

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

3 training shall not be subject to the requirements of

4 subsections (a) through (d).

5 (2) COLLECTION AND DISSEMINATION OF IN6 FORMATION.—A one-stop customer service center

7 operator in a local area shall collect such perform8 ance information from on-the-job training providers

9 as the Governor may require, and disseminate such

10 information through the one-stop customer service

11 system.

12 (f) ADMINISTRATION.—The Governor shall designate

13 a State agency to collect and disseminate the performance

14 information described in subsection (b)(2)(C) and any in15 formation required to be submitted under subsection

16 (b)(2)(D) and carry out other duties described in this sec17 tion.

18 SEC. 313. IDENTIFICATION OF ELIGIBLE PROVIDERS OF

19 YOUTH ACTIVITIES.

20 The youth partnership is authorized to award grants

21 on a competitive basis, based on the criteria contained in

22 the State plan and local plan, to providers of youth activi23 ties, and conduct oversight with respect to such providers,

24 in the local area.
220

•S 1186 IS

1 SEC. 314. STATEWIDE WORKFORCE INVESTMENT ACTIVI2 TIES.

3 (a) IN GENERAL.—Funds reserved by a Governor for

4 a State—

5 (1) under section 306(a)(2) shall be used to

6 carry out the statewide rapid response activities de7 scribed in subsection (b)(1); and

8 (2) under section 306(a)(1)—

9 (A) shall be used to carry out the state10 wide workforce investment activities described

11 in subsection (b)(2); and

12 (B) may be used to carry out any of the

13 statewide workforce investment activities de14 scribed in subsection (c),

15 regardless of whether the funds were allotted to the

16 State under paragraph (1), (2), or (3) of section

17 302(b).

18 (b) REQUIRED STATEWIDE WORKFORCE INVEST19 MENT ACTIVITIES.—

20 (1) STATEWIDE RAPID RESPONSE ACTIVI21 TIES.—A State shall use funds reserved under sec22 tion 306(a)(2) to carry out statewide rapid response

23 activities, which shall include—

24 (A) provision of rapid response activities,

25 carried out in local areas by the State, working
221

•S 1186 IS

1 in conjunction with the local partnership and

2 the chief elected official in the local area; and

3 (B) provision of additional assistance to

4 local areas that experience disasters, mass lay5 offs or plant closings, or other events that pre6 cipitate substantial increases in the number of

7 unemployed individuals, carried out in the local

8 areas by the State, working in conjunction with

9 the local partnership and the chief elected offi10 cial in the local areas.

11 (2) OTHER REQUIRED STATEWIDE WORKFORCE

12 INVESTMENT ACTIVITIES.—A State shall use funds

13 reserved under section 306(a)(1) to carry out other

14 statewide workforce investment activities, which

15 shall include—

16 (A) disseminating the list of eligible pro17 viders of training services, including eligible

18 providers of nontraditional training services,

19 and the performance information as described

20 in subsections (b) and (c) of section 312 and a

21 list of eligible providers of youth activities de22 scribed in section 313;

23 (B) conducting evaluations, under section

24 321(d), of activities authorized in this section,

25 section 315, and section 316, in coordination
222

•S 1186 IS

1 with the activities carried out under section

2 368;

3 (C) provision of incentive grants to local

4 areas for regional cooperation among local part5 nerships, for local coordination and nonduplica6 tion of activities carried out under this Act, and

7 for comparative performance by local areas on

8 the local performance measures described in

9 section 321(b);

10 (D) providing technical assistance to local

11 areas that fail to meet local performance meas12 ures;

13 (E) assisting in the establishment and op14 eration of a one-stop customer service system;

15 and

16 (F) operation of a fiscal and management

17 accountability information system under section

18 321(e).

19 (c) ALLOWABLE STATEWIDE WORKFORCE INVEST20 MENT ACTIVITIES.—

21 (1) IN GENERAL.—A State may use funds re22 served under section 306(a)(1) to carry out addi23 tional statewide workforce investment activities,

24 which may include—
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•S 1186 IS

1 (A) subject to paragraph (2), administra2 tion by the State of the workforce investment

3 activities carried out under this subtitle;

4 (B) identification and implementation of

5 incumbent worker training programs, which

6 may include the establishment and implementa7 tion of an employer loan program;

8 (C) carrying out other activities authorized

9 in section 315 that the State determines to be

10 necessary to assist local areas in carrying out

11 activities described in subsection (c) or (d) of

12 section 315 through the statewide workforce in13 vestment system; and

14 (D) carrying out, on a statewide basis, ac15 tivities described in section 316.

16 (2) LIMITATION.—Of the reserved funds de17 scribed in paragraph (1)(A), a portion, equal to not

18 more than 5 percent of the total amount allotted to

19 the State under paragraphs (1), (2), and (3) of sec20 tion 302(b) for the fiscal year involved, may be used

21 for the administration of the workforce investment

22 activities carried out under this subtitle. Funds

23 made available from the portion may be used for the

24 administration of any of the workforce investment

25 activities, regardless of whether the funds were allot-
224

•S 1186 IS

1 ted to the State under paragraph (1), (2), or (3) of

2 section 302(b).

3 SEC. 315. LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.

4 (a) IN GENERAL.—Funds received by a local area

5 under paragraph (3)(A) or (4)(A), as appropriate, of sec6 tion 306(b), and funds received by the local area under

7 section 306(b)(3)(B)—

8 (1) shall be used to carry out employment and

9 training activities described in subsection (c) for

10 adults or dislocated workers, as appropriate; and

11 (2) may be used to carry out employment and

12 training activities described in subsection (d) for

13 adults or dislocated workers, as appropriate.

14 (b) ESTABLISHMENT OF ONE-STOP CUSTOMER

15 SERVICE SYSTEM.—

16 (1) IN GENERAL.—There shall be established in

17 a State that receives an allotment under section 302

18 a one-stop customer service system, which—

19 (A) shall provide the core services de20 scribed in subsection (c)(2);

21 (B) shall provide access to training services

22 as described in subsection (c)(3);

23 (C) shall provide access to the activities (if

24 any) carried out under subsection (d); and
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•S 1186 IS

1 (D) shall provide access to the information

2 described in section 15 of the Wagner-Peyser

3 Act and all job search, placement, recruitment,

4 and other labor exchange services authorized

5 under the Wagner-Peyser Act (29 U.S.C. 49 et

6 seq.).

7 (2) ONE-STOP DELIVERY.—At a minimum, the

8 one-stop customer service system—

9 (A) shall make each of the services de10 scribed in paragraph (1) accessible at not less

11 than 1 physical customer service center in each

12 local area of the State; and

13 (B) may also make services described in

14 paragraph (1) available—

15 (i) through a network of customer

16 service centers that can provide 1 or more

17 of the services described in paragraph (1)

18 to such individuals; and

19 (ii) through a network of eligible one20 stop partners—

21 (I) in which each partner pro22 vides 1 or more of the services to such

23 individuals and is accessible at a cus24 tomer service center that consists of a

25 physical location or an electronically
226

•S 1186 IS

1 or technologically linked access point;

2 and

3 (II) that assures individuals that

4 information on the availability of core

5 services will be available regardless of

6 where the individuals initially enter

7 the statewide workforce investment

8 system, including information made

9 available through an access point de10 scribed in subclause (I).

11 (c) REQUIRED LOCAL ACTIVITIES.—

12 (1) IN GENERAL.—Funds received by a local

13 area under paragraph (3)(A) or (4)(A), as appro14 priate, of section 306(b), and funds received by the

15 local area under section 306(b)(3)(B) shall be

16 used—

17 (A) to establish a one-stop customer serv18 ice center described in subsection (b);

19 (B) to provide the core services described

20 in paragraph (2) to participants described in

21 such paragraph through the one-stop customer

22 service system; and

23 (C) to provide training services described

24 in paragraph (3) to participants described in

25 such paragraph.
227

•S 1186 IS

1 (2) CORE SERVICES.—Funds received by a local

2 area as described in paragraph (1) shall be used to

3 provide core services, which shall be available to all

4 individuals seeking assistance through a one-stop

5 customer service system and shall, at a minimum,

6 include—

7 (A) determinations of whether the individ8 uals are eligible to receive activities under this

9 subtitle;

10 (B) outreach, intake (which may include

11 worker profiling), and orientation to the infor12 mation and other services available through the

13 one-stop customer service system;

14 (C) initial assessment of skill levels, apti15 tudes, abilities, and supportive service needs;

16 (D) case management assistance, as appro17 priate;

18 (E) job search and placement assistance;

19 (F) provision of information regarding—

20 (i) local, State, and, if appropriate, re21 gional or national, employment opportuni22 ties; and

23 (ii) job skills necessary to obtain the

24 employment opportunities;
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•S 1186 IS

1 (G) provision of performance information

2 on eligible providers of training services as de3 scribed in section 312, provided by program,

4 and eligible providers of youth activities as de5 scribed in section 313, eligible providers of

6 adult education as described in title II, eligible

7 providers of postsecondary vocational education

8 activities and vocational education activities

9 available to school dropouts as described in title

10 I, and eligible providers of vocational rehabilita11 tion program activities as described in title I of

12 the Rehabilitation Act of 1973;

13 (H) provision of performance information

14 on the activities carried out by one-stop part15 ners, as appropriate;

16 (I) provision of information regarding how

17 the local area is performing on the local per18 formance measures described in section 321(b),

19 and any additional performance information

20 provided to the one-stop customer service center

21 by the local partnership;

22 (J) provision of accurate information relat23 ing to the availability of supportive services, in24 cluding child care and transportation, available
229

•S 1186 IS

1 in the local area, and referral to such services,

2 as appropriate;

3 (K) provision of information regarding fil4 ing claims for unemployment compensation;

5 (L) assistance in establishing eligibility

6 for—

7 (i) welfare-to-work activities author8 ized under section 403(a)(5) of the Social

9 Security Act (as added by section 5001 of

10 the Balanced Budget Act of 1997) avail11 able in the local area; and

12 (ii) programs of financial aid assist13 ance for training and education programs

14 that are not funded under this Act and are

15 available in the local area; and

16 (M) followup services, including counseling

17 regarding the workplace, for participants in

18 workforce investment activities who are placed

19 in unsubsidized employment, for not less than

20 12 months after the completion of such partici21 pation, as appropriate.

22 (3) REQUIRED TRAINING SERVICES.—

23 (A) ELIGIBLE PARTICIPANTS.—Funds re24 ceived by a local area as described in paragraph
230

•S 1186 IS

1 (1) shall be used to provide training services to

2 individuals—

3 (i) who are adults (including dis4 located workers);

5 (ii) who seek the services;

6 (iii)(I) who are unable to obtain em7 ployment through the core services; or

8 (II) who are employed and who are

9 determined by a one-stop customer service

10 center operator to be in need of such train11 ing services in order to gain or retain em12 ployment that allows for self-sufficiency;

13 (iv) who after an interview, evalua14 tion, or assessment, and case management,

15 have been determined by a one-stop cus16 tomer service center operator or one-stop

17 partner, as appropriate, to be in need of

18 training services and to have the skills and

19 qualifications, to successfully participate in

20 the selected program of training services;

21 (v) who select programs of training

22 services that are directly linked to the em23 ployment opportunities in the local area in24 volved or in another area in which the
231

•S 1186 IS

1 adults receiving such services are willing to

2 relocate;

3 (vi) who meet the requirements of

4 subparagraph (B); and

5 (vii) who are determined to be eligible

6 in accordance with the priority system, if

7 any, in effect under subparagraph (D).

8 (B) QUALIFICATION.—

9 (i) REQUIREMENT.—Except as pro10 vided in clause (ii), provision of such train11 ing services shall be limited to individuals

12 who—

13 (I) are unable to obtain other

14 grant assistance for such services, in15 cluding Federal Pell Grants estab16 lished under title IV of the Higher

17 Education Act of 1965 (20 U.S.C.

18 1070 et seq.); or

19 (II) who require assistance be20 yond the assistance made available

21 under other grant assistance pro22 grams, including Federal Pell Grants.

23 (ii) REIMBURSEMENTS.—Training

24 services may be provided under this para25 graph to an individual who otherwise meets
232

•S 1186 IS

1 the requirements of this paragraph while

2 an application for a Federal Pell Grant is

3 pending, except that if such individual is

4 subsequently awarded a Federal Pell

5 Grant, appropriate reimbursement shall be

6 made to the local area from such Federal

7 Pell Grant.

8 (C) TRAINING SERVICES.—Training serv9 ices may include—

10 (i) employment skill training;

11 (ii) on-the-job training;

12 (iii) job readiness training; and

13 (iv) adult education services when pro14 vided in combination with services de15 scribed in clause (i), (ii), or (iii).

16 (D) PRIORITY.—In the event that funds

17 are limited within a local area for adult employ18 ment and training activities, priority shall be

19 given to disadvantaged adults for receipt of

20 training services provided under this paragraph.

21 The appropriate local partnership and the Gov22 ernor shall direct the one-stop customer service

23 center operator in the local area with regard to

24 making determinations related to such priority.
233

•S 1186 IS

1 (E) DELIVERY OF SERVICES.—Training

2 services provided under this paragraph shall be

3 provided—

4 (i) except as provided in section

5 312(e), through eligible providers of such

6 services identified in accordance with sec7 tion 312; and

8 (ii) in accordance with subparagraph

9 (F).

10 (F) CONSUMER CHOICE REQUIREMENTS.—

11 (i) IN GENERAL.—Training services

12 provided under this paragraph shall be

13 provided in a manner that maximizes

14 consumer choice in the selection of an eli15 gible provider of such services.

16 (ii) ELIGIBLE PROVIDERS.—Each

17 local partnership, through one-stop cus18 tomer service centers, shall make avail19 able—

20 (I) the list of eligible providers

21 required under subsection (b)(3) or

22 (c)(2) of section 312, with a descrip23 tion of the programs through which

24 the providers may offer the training
234

•S 1186 IS

1 services, and a list of the names of

2 on-the-job training providers; and

3 (II) the performance information

4 on eligible providers of training serv5 ices as described in section 312.

6 (iii) EMPLOYMENT INFORMATION.—

7 Each local partnership, through one-stop

8 customer service centers, shall make avail9 able—

10 (I) information regarding local,

11 State, and, if appropriate, regional or

12 national, employment opportunities;

13 and

14 (II) information regarding the

15 job skills necessary to obtain the em16 ployment opportunities.

17 (iv) INDIVIDUAL TRAINING AC18 COUNTS.—An individual who is eligible

19 pursuant to subparagraph (A) and seeks

20 training services may select, in consulta21 tion with a case manager, an eligible pro22 vider of training services from the lists of

23 providers described in clause (ii)(I). Upon

24 such selection, the operator of the one-stop

25 customer service center shall, to the extent
235

•S 1186 IS

1 practicable, refer such individual to the eli2 gible provider of training services, and ar3 range for payment for such services

4 through an individual training account.

5 (d) PERMISSIBLE LOCAL ACTIVITIES.—

6 (1) DISCRETIONARY ONE-STOP DELIVERY AC7 TIVITIES.—Funds received by a local area under

8 paragraph (3)(A) or (4)(A), as appropriate, of sec9 tion 306(b), and funds received by the local area

10 under section 306(b)(3)(B) may be used to provide,

11 through one-stop delivery described in subsection

12 (b)(2)—

13 (A) intensive employment-related services

14 for participants in training services;

15 (B) customized screening and referral of

16 qualified participants in training services to em17 ployment; and

18 (C) customized employment-related serv19 ices to employers.

20 (2) SUPPORTIVE SERVICES.—Funds received by

21 the local area as described in paragraph (1) may be

22 used to provide supportive services to participants—

23 (A) who are participating in activities de24 scribed in this section or youth activities under

25 this subtitle; and
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•S 1186 IS

1 (B) who are unable to obtain such support2 ive services through other programs providing

3 such services.

4 (3) NEEDS-RELATED PAYMENTS.—

5 (A) IN GENERAL.—Funds received by the

6 local area under section 306(b)(3)(B) may be

7 used to provide needs-related payments to dis8 located workers who do not qualify for, or have

9 exhausted, unemployment compensation, for the

10 purpose of enabling such individuals to partici11 pate in training services.

12 (B) ADDITIONAL ELIGIBILITY REQUIRE13 MENTS.—In addition to the requirements con14 tained in subparagraph (A), a dislocated worker

15 who has ceased to qualify for unemployment

16 compensation may be eligible to receive needs17 related payments under this paragraph only if

18 such worker was enrolled in the training serv19 ices—

20 (i) by the end of the 13th week of the

21 worker’s unemployment compensation ben22 efits period for the most recent layoff that

23 resulted in a determination of the worker’s

24 eligibility for employment and training ac-
237

•S 1186 IS

1 tivities for dislocated workers under this

2 subtitle; or

3 (ii) if later, by the end of the 13th

4 week after the worker is informed that a

5 short-term layoff will exceed 6 months.

6 (C) LEVEL OF PAYMENTS.—The level of a

7 needs-related payment made to a dislocated

8 worker under this paragraph shall not exceed

9 the greater of—

10 (i) the applicable level of unemploy11 ment compensation; or

12 (ii) if such worker did not qualify for

13 unemployment compensation, an amount

14 equal to the poverty line, for an equivalent

15 period, which amount shall be adjusted to

16 reflect changes in total family income.

17 SEC. 316. LOCAL YOUTH ACTIVITIES.

18 (a) PURPOSES.—The purposes of this section are—

19 (1) to provide effective and comprehensive ac20 tivities to youth seeking assistance in achieving aca21 demic and employment success;

22 (2) to ensure continuous contact for youth with

23 committed adults;

24 (3) to provide opportunities for training to

25 youth;
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•S 1186 IS

1 (4) to provide continued support services for

2 youth;

3 (5) to provide incentives for recognition and

4 achievement to youth; and

5 (6) to provide opportunities for youth in activi6 ties related to leadership, development, decisionmak7 ing, citizenship, and community service.

8 (b) REQUIRED ELEMENTS.—Funds received by a

9 local area under paragraph (3)(C) or (4)(B) of section

10 306(b) shall be used to carry out, for youth who seek the

11 activities, activities that—

12 (1) consist of the provision of—

13 (A) tutoring, study skills training, and in14 struction, leading to completion of secondary

15 school, including dropout prevention strategies;

16 (B) alternative secondary school services;

17 (C) summer employment opportunities and

18 other paid and unpaid work experiences, includ19 ing internships;

20 (D) employment skill training, as appro21 priate;

22 (E) community service and leadership de23 velopment opportunities;

24 (F) services described in section 315(c)(2);

25 (G) supportive services;
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•S 1186 IS

1 (H) adult mentoring for the period of par2 ticipation and a subsequent period, for a total

3 of not less than 12 months; and

4 (I) followup services for not less than 12

5 months after the completion of participation, as

6 appropriate;

7 (2) provide—

8 (A) preparation for postsecondary edu9 cational opportunities, in appropriate cases;

10 (B) strong linkages between academic and

11 occupational learning; and

12 (C) preparation for unsubsidized employ13 ment opportunities, in appropriate cases; and

14 (3) involve parents, participants, and other

15 members of the community with experience relating

16 to youth in the design and implementation of the ac17 tivities.

18 (c) PRIORITY.—At a minimum, 50 percent of the

19 funds described in subsection (b) shall be used to provide

20 youth activities to out-of-school youth.

21 (d) PROHIBITIONS.—

22 (1) NO LOCAL EDUCATION CURRICULUM.—No

23 funds described in subsection (b) shall be used to de24 velop or implement local school system education

25 curricula.
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•S 1186 IS

1 (2) NONDUPLICATION.—No funds described in

2 subsection (b) shall be used to carry out activities

3 that duplicate federally funded activities available to

4 youth in the local area.

5 (3) NONINTERFERENCE AND NONREPLACE6 MENT OF REGULAR ACADEMIC REQUIREMENTS.—No

7 funds described in subsection (b) shall be used to

8 provide an activity for youth who are not school

9 dropouts if participation in the activity would inter10 fere with or replace the regular academic require11 ments of the youth.

12 CHAPTER 4—GENERAL PROVISIONS

13 SEC. 321. ACCOUNTABILITY.

14 (a) PURPOSE.—The purpose of this section is to pro15 vide comprehensive performance measures to assess the

16 progress of States and local areas (including eligible pro17 viders and programs of activities authorized under this

18 subtitle that are made available in the States and local

19 areas), in assisting both employers and jobseekers in meet20 ing their employment needs, in order to ensure an ade21 quate return on the investment of Federal funds for the

22 activities.

23 (b) STATE PERFORMANCE MEASURES.—

24 (1) IN GENERAL.—To be eligible to receive an

25 allotment under section 302, a State shall establish,
241

•S 1186 IS

1 and identify in the State plan, State performance

2 measures. Each State performance measure shall

3 consist of an indicator of performance, referred to in

4 paragraph (2) or (3), and a performance level, re5 ferred to in paragraph (4).

6 (2) CORE INDICATORS OF PERFORMANCE.—The

7 State performance measures shall contain indicators

8 of performance, including, at a minimum—

9 (A) core indicators of performance for

10 adults, including dislocated workers, participat11 ing in activities that are training services, which

12 indicators consist of—

13 (i) placement in unsubsidized employ14 ment related to the training received

15 through the activities;

16 (ii) retention in unsubsidized employ17 ment related to the training received

18 through the activities—

19 (I) 6 months after completion of

20 participation in the activities; and

21 (II) 12 months after completion

22 of participation;

23 (iii) wages received by such partici24 pants who are placed in unsubsidized em25 ployment related to the training received
242

•S 1186 IS

1 through the activities after completion of

2 participation—

3 (I) on the first day of the em4 ployment;

5 (II) 6 months after the first day

6 of the employment; and

7 (III) 12 months after the first

8 day of the employment; and

9 (iv) percentage of wage replacement

10 for dislocated workers placed in

11 unsubsidized employment related to the

12 training received through the activities;

13 (B) core indicators of performance for

14 adults, including dislocated workers, participat15 ing in activities that are core services, which in16 dicators consist of the indicators described in

17 clauses (i) through (iv) of subparagraph (A);

18 and

19 (C) core indicators of performance for

20 youth participating in youth activities under

21 section 316, that consist of—

22 (i) attainment of secondary school di23 plomas or their recognized equivalents;

24 (ii) attainment of job readiness and

25 employment skills;
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•S 1186 IS

1 (iii) placement in, retention in, and

2 completion of postsecondary education, ad3 vanced training, or an apprenticeship;

4 (iv) placement in unsubsidized em5 ployment related to the training received

6 through the activities;

7 (v) retention in unsubsidized employ8 ment related to the training received

9 through the activities—

10 (I) 6 months after completion of

11 participation in the activities; and

12 (II) 12 months after completion

13 of participation; and

14 (vi) wages received by such partici15 pants who are placed in unsubsidized em16 ployment related to the training received

17 through the activities, after completion of

18 participation—

19 (I) on the first day of the em20 ployment;

21 (II) 6 months after the first day

22 of the employment; and

23 (III) 12 months after the first

24 day of the employment.
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•S 1186 IS

1 (3) CUSTOMER SATISFACTION INDICATOR.—The

2 State performance measures shall contain an indica3 tor of performance with respect to customer satisfac4 tion of employers and participants, which may be

5 measured through surveys conducted after the con6 clusion of participation in workforce investment ac7 tivities.

8 (4) STATE LEVELS OF PERFORMANCE.—In

9 order to ensure an adequate return on the invest10 ment of Federal funds in workforce investment ac11 tivities, the Secretary and each Governor shall reach

12 agreement on the levels of performance expected to

13 be achieved by the State, on the State performance

14 measures established pursuant to this subsection. In

15 reaching the agreement, the Secretary and Governor

16 shall establish a level of performance for each indica17 tor of performance described in paragraph (2) or

18 (3). Such agreement shall take into account—

19 (A) how the levels compare with the levels

20 established by other States, taking into consid21 eration the specific circumstances, including

22 economic circumstances, of each State; and

23 (B) the extent to which such levels pro24 mote continuous improvement in performance
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•S 1186 IS

1 by such State and ensure an adequate return

2 on the investment of Federal funds.

3 (5) POPULATIONS.—In developing the State

4 performance measures, a State shall develop and

5 identify in the State plan State performance meas6 ures for populations that include, at a minimum—

7 (A) disadvantaged adults;

8 (B) dislocated workers;

9 (C) out-of-school youth; and

10 (D) individuals with disabilities.

11 (b) LOCAL PERFORMANCE MEASURES.—

12 (1) IN GENERAL.—Each Governor shall nego13 tiate and reach agreement with the local partnership

14 and the chief elected official in each local area on

15 local performance measures. Each local performance

16 measure shall consist of an indicator of performance

17 referred to in paragraph (2) or (3) of subsection (a),

18 and a performance level referred to in paragraph

19 (2).

20 (2) PERFORMANCE LEVELS.—Based on the ex21 pected levels of performance established pursuant to

22 subsection (a)(4), the Governor shall negotiate and

23 reach agreement with the local partnership and the

24 chief elected official in each local area regarding the
246

•S 1186 IS

1 levels of performance expected to be achieved for the

2 local area on the indicators of performance.

3 (3) POPULATIONS.—In negotiating and reach4 ing agreement on the local performance measures,

5 the Governor, local partnership, and chief elected of6 ficial, shall negotiate and reach agreement on local

7 performance measures for populations that include,

8 at a minimum, the populations described in sub9 section (a)(5). The local partnership shall identify

10 these local performance measures in the local plan.

11 (c) REPORT.—

12 (1) IN GENERAL.—Each State that receives an

13 allotment under section 302 shall annually prepare

14 and submit to the Secretary a report on the progress

15 of the State in achieving State performance meas16 ures. The annual report shall also include informa17 tion regarding the progress of local areas in achiev18 ing local performance measures. The report shall

19 also include information on the status of State eval20 uations of workforce investment activities described

21 in subsection (d).

22 (2) ADDITIONAL INFORMATION.—In preparing

23 such report, the State shall include, at a minimum,

24 information relating to—
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1 (A) the performance of graduates of pro2 grams of training services as compared to

3 former enrollees in the programs, with the re4 spect to the core indicators described in sub5 section (a)(2)(A);

6 (B) the educational attainment of such

7 graduates and former enrollees;

8 (C) the cost of the workforce investment

9 activities relative to the impact of the activities

10 on the performance of graduates on the core in11 dicators; and

12 (D) the performance of welfare recipients,

13 veterans, individuals with disabilities, and dis14 placed homemakers with respect to the core in15 dicators described in subparagraphs (A) and

16 (B) of subsection (a)(2).

17 (3) INFORMATION DISSEMINATION.—The Sec18 retary shall make the information contained in such

19 reports available to Congress, the Library of Con20 gress, and the public through publication and other

21 appropriate methods, and shall disseminate State-by22 State comparisons of the information that take into

23 consideration the specific circumstances, including

24 economic circumstances, of the States.
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1 (4) DEFINITION.—In this subsection, the term

2 ‘‘welfare recipient’’ means a person receiving pay3 ments described in section 2(24)(A).

4 (d) EVALUATION OF STATE PROGRAMS.—

5 (1) WORKFORCE INVESTMENT ACTIVITIES.—

6 Using funds reserved under section 306(a)(1), a

7 State shall conduct ongoing evaluations of workforce

8 investment activities carried out in the State under

9 this subtitle.

10 (2) CRITERIA FOR LONGITUDINAL STUDIES.—

11 The evaluations shall include longitudinal studies of

12 the workforce investment activities. Evaluation cri13 teria for purposes of the longitudinal studies shall be

14 developed in conjunction with statewide partnerships

15 and local partnerships. The criteria shall measure

16 the relationship between the level of public funding

17 for the activities and the degree to which the activi18 ties promote employment and wage gains. Such lon19 gitudinal studies shall be conducted by an evaluator

20 who is unaffiliated with the statewide partnership or

21 the local partnership and shall include measures that

22 reflect the State performance measures.

23 (3) ADDITIONAL STUDIES.—The State shall

24 also fund evaluation studies of the workforce invest25 ment activities. The evaluation studies shall provide
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1 ongoing analysis to statewide partnerships and local

2 partnerships to promote efficiency and effectiveness

3 in improving employability outcomes for jobseekers

4 and competitiveness for employers. Such evaluation

5 studies shall be designed in conjunction with state6 wide partnerships and local partnerships, and shall

7 include analysis of customer feedback, and outcome

8 and process measures.

9 (e) FISCAL AND MANAGEMENT ACCOUNTABILITY IN10 FORMATION SYSTEMS.—

11 (1) IN GENERAL.—Using funds reserved under

12 section 306(a)(1), the Governor shall operate a fiscal

13 and management accountability information system,

14 based on guidelines established by the Secretary in

15 consultation with the Governors and other appro16 priate parties. Such guidelines shall promote the ef17 ficient collection and use of fiscal and management

18 information for reporting and monitoring the use of

19 funds made available to the State under this subtitle

20 for workforce investment activities and for use by

21 the State in preparing the annual report described

22 in subsection (c). In measuring the progress of the

23 State on State and local performance measures, a

24 State shall utilize quarterly wage records available

25 through the unemployment insurance system.
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1 (2) CONFIDENTIALITY.—In carrying out the re2 quirements of this Act, the State shall comply with

3 section 444 of the General Education Provisions Act

4 (20 U.S.C. 1232g) (as added by the Family Edu5 cational Rights and Privacy Act of 1974).

6 (f) SANCTIONS.—

7 (1) DETERMINATION.—If a State fails to meet

8 2 or more State performance measures described in

9 this section for each of the 3 years covered by a

10 State plan, the Secretary shall determine whether

11 the failure is attributable to—

12 (A) adult employment and training activi13 ties;

14 (B) dislocated worker employment and

15 training activities; or

16 (C) youth activities.

17 (2) TECHNICAL ASSISTANCE OR REDUCTION OF

18 ALLOTMENTS.—The Secretary—

19 (A) may provide technical assistance to the

20 State to improve the level of performance of the

21 State, in accordance with section 366(b); and

22 (B) shall, on finding that a State fails to

23 meet 2 or more State performance measures for

24 2 consecutive years, reduce, by not more than

25 5 percent, the allotment made under section
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1 302 for the category of activities to which the

2 failure is attributable.

3 (3) FUNDS RESULTING FROM REDUCED ALLOT4 MENTS.—The Secretary may use an amount re5 tained as a result of a reduction in an allotment

6 made under paragraph (2)(B) to award an incentive

7 grant under section 365 or to provide technical as8 sistance in accordance with section 366.

9 (g) INCENTIVE GRANTS.—The Secretary may make

10 incentive grants under section 365 to States that exceed

11 the State performance measures.

12 (h) DEFINITIONS.—In this section:

13 (1) FORMER ENROLLEE.—The term ‘‘former

14 enrollee’’ means an individual who has been selected

15 for and has enrolled in a program of workforce in16 vestment activities, but left the program before com17 pleting the requirements of the program.

18 (2) GRADUATE.—The term ‘‘graduate’’ means

19 an individual who has been selected for and has en20 rolled in a program of workforce investment activi21 ties and has completed the requirements of such pro22 gram.

23 (i) OTHER TERMS.—The Secretary, in consultation

24 with the Governors, local partnerships, and other appro25 priate entities, shall issue regulations that identify and de-
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1 fine other terms used in this title, in order to promote

2 uniformity in the implementation of this Act.

3 SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

4 (a) ADULT EMPLOYMENT AND TRAINING ACTIVI5 TIES.—There are authorized to be appropriated to carry

6 out the activities described in section 302(a)(1) under this

7 subtitle, such sums as may be necessary for each of fiscal

8 years 1999 through 2003.

9 (b) DISLOCATED WORKER EMPLOYMENT AND

10 TRAINING ACTIVITIES.—There are authorized to be ap11 propriated to carry out the activities described in section

12 302(a)(2) under this subtitle, such sums as may be nec13 essary for each of fiscal years 1999 through 2003.

14 (c) YOUTH ACTIVITIES.—There are authorized to be

15 appropriated to carry out the activities described in section

16 302(a)(3) under this subtitle, such sums as may be nec17 essary for each of fiscal years 1999 through 2003.

18 Subtitle B—Job Corps

19 SEC. 331. PURPOSES.

20 The purposes of this subtitle are—

21 (1) to maintain a national Job Corps program,

22 carried out in partnership with States and commu23 nities, to assist eligible youth who need and can ben24 efit from an intensive program, operated in a group

25 setting in residential and nonresidential centers, to
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1 become more responsible, employable, and productive

2 citizens;

3 (2) to set forth standards and procedures for

4 selecting individuals as enrollees in the Job Corps;

5 (3) to authorize the establishment of Job Corps

6 centers in which enrollees will participate in inten7 sive programs of activities described in this subtitle;

8 and

9 (4) to prescribe various other powers, duties,

10 and responsibilities incident to the operation and

11 continuing development of the Job Corps.

12 SEC. 332. DEFINITIONS.

13 In this subtitle:

14 (1) APPLICABLE LOCAL PARTNERSHIP.—The

15 term ‘‘applicable local partnership’’ means a local

16 partnership—

17 (A) that provides information for a Job

18 Corps center on local employment opportunities

19 and the job skills needed to obtain the opportu20 nities; and

21 (B) that serves communities in which the

22 graduates of the Job Corps center seek employ23 ment.

24 (2) APPLICABLE ONE-STOP CUSTOMER SERVICE

25 CENTER.—The term ‘‘applicable one-stop customer
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1 service center’’ means a one-stop customer service

2 center that provides services, such as referral, in3 take, recruitment, and placement, to a Job Corps

4 center.

5 (3) ENROLLEE.—The term ‘‘enrollee’’ means

6 an individual who has voluntarily applied for, been

7 selected for, and enrolled in the Job Corps program,

8 and remains with the program, but has not yet be9 come a graduate.

10 (4) FORMER ENROLLEE.—The term ‘‘former

11 enrollee’’ means an individual who has voluntarily

12 applied for, been selected for, and enrolled in the

13 Job Corps program, but left the program before

14 completing the requirements of a vocational training

15 program, or receiving a secondary school diploma or

16 recognized equivalent, as a result of participation in

17 the Job Corps program.

18 (5) GRADUATE.—The term ‘‘graduate’’ means

19 an individual who has voluntarily applied for, been

20 selected for, and enrolled in the Job Corps program

21 and has completed the requirements of a vocational

22 training program, or received a secondary school di23 ploma or recognized equivalent, as a result of par24 ticipation in the Job Corps program.
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1 (6) JOB CORPS.—The term ‘‘Job Corps’’ means

2 the Job Corps described in section 333.

3 (7) JOB CORPS CENTER.—The term ‘‘Job Corps

4 center’’ means a center described in section 333.

5 (8) OPERATOR.—The term ‘‘operator’’ means

6 an entity selected under this subtitle to operate a

7 Job Corps center.

8 (9) REGION.—The term ‘‘region’’ means an

9 area served by a regional office of the Employment

10 and Training Administration.

11 (10) SERVICE PROVIDER.—The term ‘‘service

12 provider’’ means an entity selected under this sub13 title to provide services described in this subtitle to

14 a Job Corps center.

15 SEC. 333. ESTABLISHMENT.

16 There shall be established in the Department of

17 Labor a Job Corps program, to carry out activities de18 scribed in this subtitle for individuals enrolled in a Job

19 Corps and assigned to a center.

20 SEC. 334. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

21 To be eligible to become an enrollee, an individual

22 shall be—

23 (1) not less than age 16 and not more than age

24 21 on the date of enrollment, except that—
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1 (A) not more than 20 percent of the indi2 viduals enrolled in the Job Corps may be not

3 less than age 22 and not more than age 24 on

4 the date of enrollment; and

5 (B) either such maximum age limitation

6 may be waived by the Secretary, in accordance

7 with regulations of the Secretary, in the case of

8 an individual with a disability; and

9 (2) a low-income individual; and

10 (3) an individual who is 1 or more of the follow11 ing:

12 (A) Basic skills deficient.

13 (B) A school dropout.

14 (C) Homeless, a runaway, or a foster child.

15 (D) A parent.

16 (E) An individual who requires additional

17 education, vocational training, or intensive

18 counseling and related assistance, in order to

19 participate successfully in regular schoolwork or

20 to secure and hold employment.

21 SEC. 335. RECRUITMENT, SCREENING, SELECTION, AND AS22 SIGNMENT OF ENROLLEES.

23 (a) STANDARDS AND PROCEDURES.—

24 (1) IN GENERAL.—The Secretary shall pre25 scribe specific standards and procedures for the re-
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1 cruitment, screening, and selection of eligible appli2 cants for the Job Corps, after considering rec3 ommendations from the Governors, local partner4 ships, and other interested parties.

5 (2) METHODS.—In prescribing standards and

6 procedures under paragraph (1), the Secretary, at a

7 minimum, shall—

8 (A) prescribe procedures for informing en9 rollees that drug tests will be administered to

10 the enrollees and the results received within 45

11 days after the enrollees enroll in the Job Corps;

12 (B) establish standards for recruitment of

13 Job Corps applicants;

14 (C) establish standards and procedures

15 for—

16 (i) determining, for each applicant,

17 whether the educational and vocational

18 needs of the applicant can best be met

19 through the Job Corps program or an al20 ternative program in the community in

21 which the applicant resides; and

22 (ii) obtaining from each applicant per23 tinent data relating to background, needs,

24 and interests for determining eligibility

25 and potential assignment;
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1 (D) where appropriate, take measures to

2 improve the professional capability of the indi3 viduals conducting screening of the applicants;

4 and

5 (E) assure that an appropriate number of

6 enrollees are from rural areas.

7 (3) IMPLEMENTATION.—To the extent prac8 ticable, the standards and procedures shall be imple9 mented through arrangements with—

10 (A) applicable one-stop customer service

11 centers;

12 (B) community action agencies, business

13 organizations, and labor organizations; and

14 (C) agencies and individuals that have con15 tact with youth over substantial periods of time

16 and are able to offer reliable information about

17 the needs and problems of the youth.

18 (4) CONSULTATION.—The standards and proce19 dures shall provide for necessary consultation with

20 individuals and organizations, including court, pro21 bation, parole, law enforcement, education, welfare,

22 and medical authorities and advisers.

23 (5) REIMBURSEMENT.—The Secretary is au24 thorized to enter into contracts with and make pay25 ments to individuals and organizations for the cost
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1 of conducting recruitment, screening, and selection

2 of eligible applicants for the Job Corps, as provided

3 for in this section. The Secretary shall make no pay4 ment to any individual or organization solely as com5 pensation for referring the names of applicants for

6 the Job Corps.

7 (b) SPECIAL LIMITATIONS ON SELECTION.—

8 (1) IN GENERAL.—No individual shall be se9 lected as an enrollee unless the individual or organi10 zation implementing the standards and procedures

11 determines that—

12 (A) there is a reasonable expectation that

13 the individual considered for selection can par14 ticipate successfully in group situations and ac15 tivities, and is not likely to engage in behavior

16 that would prevent other enrollees from receiv17 ing the benefit of the Job Corps program or be

18 incompatible with the maintenance of sound

19 discipline and satisfactory relationships between

20 the Job Corps center to which the individual

21 might be assigned and communities surround22 ing the Job Corps center;

23 (B) the individual manifests a basic under24 standing of both the rules to which the individ-
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1 ual will be subject and of the consequences of

2 failure to observe the rules; and

3 (C) the individual has passed a background

4 check conducted in accordance with procedures

5 established by the Secretary.

6 (2) INDIVIDUALS ON PROBATION, PAROLE, OR

7 SUPERVISED RELEASE.—An individual on probation,

8 parole, or supervised release may be selected as an

9 enrollee only if release from the supervision of the

10 probation or parole official involved is satisfactory to

11 the official and the Secretary and does not violate

12 applicable laws (including regulations). No individual

13 shall be denied a position in the Job Corps solely on

14 the basis of individual contact with the criminal jus15 tice system.

16 (c) ASSIGNMENT PLAN.—

17 (1) IN GENERAL.—Every 2 years, the Secretary

18 shall develop and implement an assignment plan for

19 assigning enrollees to Job Corps centers. In develop20 ing the plan, the Secretary shall, based on the analy21 sis described in paragraph (2), establish targets, ap22 plicable to each Job Corps center, for—

23 (A) the maximum attainable percentage of

24 enrollees at the Job Corps center that reside in

25 the State in which the center is located; and
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1 (B) the maximum attainable percentage of

2 enrollees at the Job Corps center that reside in

3 the region in which the center is located, and in

4 surrounding regions.

5 (2) ANALYSIS.—In order to develop the plan

6 described in paragraph (1), the Secretary shall,

7 every 2 years, analyze, for the Job Corps center—

8 (A) the size of the population of individ9 uals eligible to participate in Job Corps in the

10 State and region in which the Job Corps center

11 is located, and in surrounding regions;

12 (B) the relative demand for participation

13 in the Job Corps in the State and region, and

14 in surrounding regions; and

15 (C) the capacity and utilization of the Job

16 Corps center, including services provided

17 through the center.

18 (d) ASSIGNMENT OF INDIVIDUAL ENROLLEES.—

19 (1) IN GENERAL.—After an individual has been

20 selected for the Job Corps in accordance with the

21 standards and procedures of the Secretary under

22 subsection (a), the enrollee shall be assigned to the

23 Job Corps center that is closest to the home of the

24 enrollee, except that the Secretary may waive this

25 requirement if—
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1 (A) the enrollee chooses a vocational train2 ing program, or requires English as a second

3 language program, that is not available at such

4 center;

5 (B) the enrollee is an individual with a dis6 ability and may be better served at another cen7 ter;

8 (C) the enrollee would be unduly delayed in

9 participating in the Job Corps program because

10 the closest center is operating at full capacity;

11 or

12 (D) the parent or guardian of the enrollee

13 requests assignment of the enrollee to another

14 Job Corps center due to circumstances in the

15 community of the enrollee that would impair

16 prospects for successful participation in the Job

17 Corps program.

18 (2) ENROLLEES WHO ARE YOUNGER THAN

19 18.—An enrollee who is younger than 18 shall not

20 be assigned to a Job Corps center other than the

21 center closest to the home of the enrollee pursuant

22 to paragraph (1) if the parent or guardian of the en23 rollee objects to the assignment.
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1 SEC. 336. ENROLLMENT.

2 (a) RELATIONSHIP BETWEEN ENROLLMENT AND

3 MILITARY OBLIGATIONS.—Enrollment in the Job Corps

4 shall not relieve any individual of obligations under the

5 Military Selective Service Act (50 U.S.C. App. 451 et

6 seq.).

7 (b) PERIOD OF ENROLLMENT.—No individual may

8 be enrolled in the Job Corps for more than 2 years, ex9 cept—

10 (1) in a case in which completion of an ad11 vanced career training program under section 338(b)

12 would require an individual to participate in the Job

13 Corps for not more than 1 additional year; or

14 (2) as the Secretary may authorize in a special

15 case.

16 SEC. 337. JOB CORPS CENTERS.

17 (a) OPERATORS AND SERVICE PROVIDERS.—

18 (1) ELIGIBLE ENTITIES.—

19 (A) OPERATORS.—The Secretary shall

20 enter into an agreement with a Federal, State,

21 or local agency, such as individuals participat22 ing in a statewide partnership or in a local

23 partnership or an agency that operates or wish24 es to develop an area vocational education

25 school facility or residential vocational school,
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•S 1186 IS

1 or with a private organization, for the operation

2 of each Job Corps center.

3 (B) PROVIDERS.—The Secretary may

4 enter into an agreement with a local entity to

5 provide activities described in this subtitle to

6 the Job Corps center.

7 (2) SELECTION PROCESS.—

8 (A) COMPETITIVE BASIS.—Except as pro9 vided in subsections (c) and (d) of section 303

10 of the Federal Property and Administrative

11 Services Act of 1949 (41 U.S.C. 253), the Sec12 retary shall select on a competitive basis an en13 tity to operate a Job Corps center and entities

14 to provide activities described in this subtitle to

15 the Job Corps center. In developing a solicita16 tion for an operator or service provider, the

17 Secretary shall consult with the Governor for

18 the State in which the center is located, the in19 dustry council for the Job Corps center (if es20 tablished), and the applicable local partnership

21 regarding the contents of such solicitation, in22 cluding elements that will promote the consist23 ency of the activities carried out through the

24 center with the objectives set forth in the State

25 plan or in a local plan.
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1 (B) RECOMMENDATIONS AND CONSIDER2 ATIONS.—

3 (i) OPERATORS.—In selecting an en4 tity to operate a Job Corps center, the

5 Secretary shall consider—

6 (I) the ability of the entity to co7 ordinate the activities carried out

8 through the Job Corps center with ac9 tivities carried out under the appro10 priate State plan and local plans;

11 (II) the degree to which the voca12 tional training that the entity pro13 poses for the center reflects local em14 ployment opportunities in the local

15 areas in which enrollees at the center

16 intend to seek employment;

17 (III) the degree to which the en18 tity is familiar with the surrounding

19 communities, applicable one-stop cen20 ters, and the State and region in

21 which the center is located; and

22 (IV) the past performance of the

23 entity, if any, relating to operating or

24 providing activities described in this

25 subtitle to a Job Corps center.
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1 (ii) PROVIDERS.—In selecting a serv2 ice provider for a Job Corps center, the

3 Secretary shall consider the factors de4 scribed in subclauses (I) through (IV) of

5 clause (i), as appropriate.

6 (b) CHARACTER AND ACTIVITIES.—Job Corps cen7 ters may be residential or nonresidential in character, and

8 shall be designed and operated so as to provide enrollees,

9 in a well-supervised setting, with access to activities de10 scribed in this subtitle. In any year, no more than 20 per11 cent of the individuals enrolled in the Job Corps may be

12 nonresidential participants in the Job Corps.

13 (c) CIVILIAN CONSERVATION CENTERS.—

14 (1) IN GENERAL.—The Job Corps centers may

15 include Civilian Conservation Centers operated

16 under agreements with the Secretary of Agriculture

17 or the Secretary of the Interior, located primarily in

18 rural areas, which shall provide, in addition to other

19 vocational training and assistance, programs of work

20 experience to conserve, develop, or manage public

21 natural resources or public recreational areas or to

22 develop community projects in the public interest.

23 (2) SELECTION PROCESS.—The Secretary may

24 select an entity to operate a Civilian Conservation

25 Center on a competitive basis, as provided in sub-
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1 section (a), if the center fails to meet such national

2 performance standards as the Secretary shall estab3 lish.

4 (d) INDIAN TRIBES.—

5 (1) GENERAL AUTHORITY.—The Secretary may

6 enter into agreements with Indian tribes to operate

7 Job Corps centers for Indians.

8 (2) DEFINITIONS.—In this subsection, the

9 terms ‘‘Indian’’ and ‘‘Indian tribe’’, have the mean10 ings given such terms in subsections (d) and (e), re11 spectively, of section 4 of the Indian Self-Determina12 tion and Education Assistance Act (25 U.S.C.

13 450b).

14 SEC. 338. PROGRAM ACTIVITIES.

15 (a) ACTIVITIES PROVIDED BY JOB CORPS CEN16 TERS.—

17 (1) IN GENERAL.—Each Job Corps center shall

18 provide enrollees with an intensive, well organized,

19 and fully supervised program of education, voca20 tional training, work experience, recreational activi21 ties, and counseling. Each Job Corps center shall

22 provide enrollees assigned to the center with access

23 to core services described in subtitle A.

24 (2) RELATIONSHIP TO OPPORTUNITIES.—
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1 (A) IN GENERAL.—The activities provided

2 under this subsection shall provide work-based

3 learning throughout the enrollment of the en4 rollees and assist the enrollees in obtaining

5 meaningful unsubsidized employment, partici6 pating in secondary education or postsecondary

7 education programs, enrolling in other suitable

8 vocational training programs, or satisfying

9 Armed Forces requirements, on completion of

10 their enrollment.

11 (B) LINK TO EMPLOYMENT OPPORTUNI12 TIES.—The vocational training provided shall

13 be linked to the employment opportunities in

14 the local area in which the enrollee intends to

15 seek employment after graduation.

16 (b) ADVANCED CAREER TRAINING PROGRAMS.—

17 (1) IN GENERAL.—The Secretary may arrange

18 for programs of advanced career training for se19 lected enrollees in which the enrollees may continue

20 to participate for a period of not to exceed 1 year

21 in addition to the period of participation to which

22 the enrollees would otherwise be limited. The ad23 vanced career training may be provided through the

24 eligible providers of training services identified by

25 the State involved under section 312.
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•S 1186 IS

1 (2) BENEFITS.—

2 (A) IN GENERAL.—During the period of

3 participation in an advanced career training

4 program, an enrollee shall be eligible for full

5 Job Corps benefits, or a monthly stipend equal

6 to the average value of the residential support,

7 food, allowances, and other benefits provided to

8 enrollees assigned to residential Job Corps cen9 ters.

10 (B) CALCULATION.—The total amount for

11 which an enrollee shall be eligible under sub12 paragraph (A) shall be reduced by the amount

13 of any scholarship or other educational grant

14 assistance received by such enrollee for ad15 vanced career training.

16 (3) DEMONSTRATION.—Each year, any opera17 tor seeking to enroll additional enrollees in an ad18 vanced career training program shall demonstrate

19 that participants in such program have achieved a

20 reasonable rate of completion and placement in

21 training-related jobs before the operator may carry

22 out such additional enrollment.

23 (c) CONTINUED SERVICES.—The Secretary shall also

24 provide continued services to graduates, including provid25 ing counseling regarding the workplace for 12 months
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1 after the date of graduation of the graduates. In selecting

2 a provider for such services, the Secretary shall give prior3 ity to one-stop partners.

4 SEC. 339. COUNSELING AND JOB PLACEMENT.

5 (a) COUNSELING AND TESTING.—The Secretary

6 shall arrange for counseling and testing for each enrollee

7 at regular intervals to measure progress in the education

8 and vocational training programs carried out through the

9 Job Corps.

10 (b) PLACEMENT.—The Secretary shall arrange for

11 counseling and testing for enrollees prior to their sched12 uled graduations to determine their capabilities and, based

13 on their capabilities, shall make every effort to arrange

14 to place the enrollees in jobs in the vocations for which

15 the enrollees are trained or to assist the enrollees in ob16 taining further activities described in this subtitle. In ar17 ranging for the placement of graduates in jobs, the Sec18 retary shall utilize the one-stop customer service system

19 to the fullest extent possible.

20 (c) STATUS AND PROGRESS.—The Secretary shall de21 termine the status and progress of enrollees scheduled for

22 graduation and make every effort to assure that their

23 needs for further activities described in this subtitle are

24 met.
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1 SEC. 340. SUPPORT.

2 (a) PERSONAL ALLOWANCES.—The Secretary shall

3 provide enrollees assigned to Job Corps centers with such

4 personal allowances as the Secretary may determine to be

5 necessary or appropriate to meet the needs of the enroll6 ees.

7 (b) READJUSTMENT ALLOWANCES.—The Secretary

8 shall arrange for a readjustment allowance to be paid to

9 eligible former enrollees and graduates. The Secretary

10 shall arrange for the allowance to be paid at the one-stop

11 customer service center nearest to the home of such a

12 former enrollee or graduate who is returning home, or at

13 the one-stop customer service center nearest to the loca14 tion where the former enrollee or graduate has indicated

15 an intent to seek employment. If the Secretary uses any

16 organization, in lieu of a one-stop customer service center,

17 to provide placement services under this Act, the Secretary

18 shall arrange for that organization to pay the readjust19 ment allowance.

20 SEC. 341. OPERATING PLAN.

21 (a) IN GENERAL.—The provisions of the contract be22 tween the Secretary and an entity selected to operate a

23 Job Corps center shall, at a minimum, serve as an operat24 ing plan for the Job Corps center.

25 (b) ADDITIONAL INFORMATION.—The Secretary may

26 require the operator, in order to remain eligible to operate
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1 the Job Corps center, to submit such additional informa2 tion as the Secretary may require, which shall be consid3 ered part of the operating plan.

4 (c) AVAILABILITY.—The Secretary shall make the op5 erating plan described in subsections (a) and (b), exclud6 ing any proprietary information, available to the public.

7 SEC. 342. STANDARDS OF CONDUCT.

8 (a) PROVISION AND ENFORCEMENT.—The Secretary

9 shall provide, and directors of Job Corps centers shall

10 stringently enforce, standards of conduct within the cen11 ters. Such standards of conduct shall include provisions

12 forbidding the actions described in subsection (b)(2)(A).

13 (b) DISCIPLINARY MEASURES.—

14 (1) IN GENERAL.—To promote the proper

15 moral and disciplinary conditions in the Job Corps,

16 the directors of Job Corps centers shall take appro17 priate disciplinary measures against enrollees. If

18 such a director determines that an enrollee has com19 mitted a violation of the standards of conduct, the

20 director shall dismiss the enrollee from the Job

21 Corps if the director determines that the retention

22 of the enrollee in the Job Corps will jeopardize the

23 enforcement of such standards or diminish the op24 portunities of other enrollees.
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1 (2) ZERO TOLERANCE POLICY AND DRUG TEST2 ING.—

3 (A) GUIDELINES.—The Secretary shall

4 adopt guidelines establishing a zero tolerance

5 policy for an act of violence, for use, sale, or

6 possession of a controlled substance, for abuse

7 of alcohol, or for other illegal or disruptive ac8 tivity.

9 (B) DRUG TESTING.—The Secretary shall

10 require drug testing of all enrollees for con11 trolled substances in accordance with proce12 dures prescribed by the Secretary under section

13 335(a).

14 (C) DEFINITIONS.—In this paragraph:

15 (i) CONTROLLED SUBSTANCE.—The

16 term ‘‘controlled substance’’ has the mean17 ing given the term in section 102 of the

18 Controlled Substances Act (21 U.S.C.

19 802).

20 (ii) ZERO TOLERANCE POLICY.—The

21 term ‘‘zero tolerance policy’’ means a pol22 icy under which an enrollee shall be auto23 matically dismissed from the Job Corps

24 after a determination by the director that
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1 the enrollee has carried out an action de2 scribed in subparagraph (A).

3 (c) APPEAL.—A disciplinary measure taken by a di4 rector under this section shall be subject to expeditious

5 appeal in accordance with procedures established by the

6 Secretary.

7 SEC. 343. COMMUNITY PARTICIPATION.

8 (a) BUSINESS AND COMMUNITY LIAISON.—Each Job

9 Corps center shall have a Business and Community Liai10 son (referred to in this Act as a ‘‘Liaison’’), designated

11 by the director of the center.

12 (b) RESPONSIBILITIES.—The responsibilities of the

13 Liaison shall include—

14 (1) establishing and developing relationships

15 and networks with—

16 (A) local and (in the case of rural or re17 mote sites) distant employers; and

18 (B) applicable one-stop customer service

19 centers and applicable local partnerships,

20 for the purpose of providing job opportunities for

21 Job Corps graduates; and

22 (2) establishing and developing relationships

23 with members of the community in which the Job

24 Corps center is located, informing members of the

25 community about the projects of the Job Corps cen-
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1 ter and changes in the rules, procedures, or activities

2 of the center that may affect the community, and

3 planning events of mutual interest to the community

4 and the Job Corps center.

5 (c) NEW CENTERS.—The Liaison for a Job Corps

6 center that is not yet operating shall establish and develop

7 the relationships and networks described in subsection (b)

8 at least 3 months prior to the date on which the center

9 accepts the first enrollee at the center.

10 SEC. 344. INDUSTRY COUNCILS.

11 (a) IN GENERAL.—Each Job Corps center shall have

12 an industry council, appointed by the director of the center

13 after consultation with the Liaison, in accordance with

14 procedures established by the Secretary.

15 (b) INDUSTRY COUNCIL COMPOSITION.—

16 (1) IN GENERAL.—An industry council shall be

17 comprised of—

18 (A) a majority of members who shall be

19 local and (in the case of rural or remote sites)

20 distant owners of business concerns, chief ex21 ecutives or chief operating officers of non22 governmental employers, or other private sector

23 employers, who—

24 (i) have substantial management, hir25 ing, or policy responsibility; and
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1 (ii) who represent businesses with em2 ployment opportunities that reflect the em3 ployment opportunities of the applicable

4 local area; and

5 (B) representatives of labor organizations

6 (where present) and representatives of employ7 ees.

8 (2) LOCAL PARTNERSHIP.—The industry coun9 cil may include members of the applicable local part10 nerships who meet the requirements described in

11 paragraph (1).

12 (c) RESPONSIBILITIES.—The responsibilities of the

13 industry council shall be—

14 (1) to work closely with all applicable local part15 nerships in order to determine, and recommend to

16 the Secretary, appropriate vocational training for the

17 center;

18 (2) to review all the relevant labor market in19 formation to—

20 (A) determine the employment opportuni21 ties in the local areas in which the enrollees in22 tend to seek employment after graduation;

23 (B) determine the skills and education that

24 are necessary to obtain the employment oppor25 tunities; and
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1 (C) recommend to the Secretary the type

2 of vocational training that should be imple3 mented at the center to enable the enrollees to

4 obtain the employment opportunities; and

5 (3) to meet at least once every 6 months to re6 evaluate the labor market information, and other rel7 evant information, to determine, and recommend to

8 the Secretary, any necessary changes in the voca9 tional training provided at the center.

10 (d) NEW CENTERS.—The industry council for a Job

11 Corps center that is not yet operating shall carry out the

12 responsibilities described in subsection (c) at least 3

13 months prior to the date on which the center accepts the

14 first enrollee at the center.

15 SEC. 345. ADVISORY COMMITTEES.

16 The Secretary may establish and use advisory com17 mittees in connection with the operation of the Job Corps

18 program, and the operation of Job Corps centers, when19 ever the Secretary determines that the availability of out20 side advice and counsel on a regular basis would be of

21 substantial benefit in identifying and overcoming prob22 lems, in planning program or center development, or in

23 strengthening relationships between the Job Corps and

24 agencies, institutions, or groups engaged in related activi25 ties.
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1 SEC. 346. EXPERIMENTAL, RESEARCH, AND DEMONSTRA2 TION PROJECTS.

3 The Secretary may carry out experimental, research,

4 or demonstration projects relating to carrying out the Job

5 Corps program and may waive any provision of this sub6 title that the Secretary finds would prevent the Secretary

7 from carrying out the projects.

8 SEC. 347. APPLICATION OF PROVISIONS OF FEDERAL LAW.

9 (a) ENROLLEES NOT CONSIDERED TO BE FEDERAL

10 EMPLOYEES.—

11 (1) IN GENERAL.—Except as otherwise pro12 vided in this subsection and in section 8143(a) of

13 title 5, United States Code, enrollees shall not be

14 considered to be Federal employees and shall not be

15 subject to the provisions of law relating to Federal

16 employment, including such provisions regarding

17 hours of work, rates of compensation, leave, unem18 ployment compensation, and Federal employee bene19 fits.

20 (2) PROVISIONS RELATING TO TAXES AND SO21 CIAL SECURITY BENEFITS.—For purposes of the In22 ternal Revenue Code of 1986 and title II of the So23 cial Security Act (42 U.S.C. 401 et seq.), enrollees

24 shall be deemed to be employees of the United

25 States and any service performed by an individual as
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1 an enrollee shall be deemed to be performed in the

2 employ of the United States.

3 (3) PROVISIONS RELATING TO COMPENSATION

4 TO FEDERAL EMPLOYEES FOR WORK INJURIES.—

5 For purposes of subchapter I of chapter 81 of title

6 5, United States Code (relating to compensation to

7 Federal employees for work injuries), enrollees shall

8 be deemed to be civil employees of the Government

9 of the United States within the meaning of the term

10 ‘‘employee’’ as defined in section 8101 of title 5,

11 United States Code, and the provisions of such sub12 chapter shall apply as specified in section 8143(a) of

13 title 5, United States Code.

14 (4) FEDERAL TORT CLAIMS PROVISIONS.—For

15 purposes of the Federal tort claims provisions in

16 title 28, United States Code, enrollees shall be con17 sidered to be employees of the Government.

18 (b) ADJUSTMENTS AND SETTLEMENTS.—Whenever

19 the Secretary finds a claim for damages to a person or

20 property resulting from the operation of the Job Corps

21 to be a proper charge against the United States, and the

22 claim is not cognizable under section 2672 of title 28,

23 United States Code, the Secretary may adjust and settle

24 the claim in an amount not exceeding $1,500.
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1 (c) PERSONNEL OF THE UNIFORMED SERVICES.—

2 Personnel of the uniformed services who are detailed or

3 assigned to duty in the performance of agreements made

4 by the Secretary for the support of the Job Corps shall

5 not be counted in computing strength under any law limit6 ing the strength of such services or in computing the per7 centage authorized by law for any grade in such services.

8 SEC. 348. SPECIAL PROVISIONS.

9 (a) ENROLLMENT.—The Secretary shall ensure that

10 women and men have an equal opportunity to participate

11 in the Job Corps program, consistent with section 335.

12 (b) STUDIES, EVALUATIONS, PROPOSALS, AND

13 DATA.—The Secretary shall assure that all studies, eval14 uations, proposals, and data produced or developed with

15 Federal funds in the course of carrying out the Job Corps

16 program shall become the property of the United States.

17 (c) TRANSFER OF PROPERTY.—

18 (1) IN GENERAL.—Notwithstanding title II of

19 the Federal Property and Administrative Services

20 Act of 1949 (40 U.S.C. 481 et seq.) and any other

21 provision of law, the Secretary and the Secretary of

22 Education shall receive priority by the Secretary of

23 Defense for the direct transfer, on a nonreimburs24 able basis, of the property described in paragraph
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1 (2) for use in carrying out programs under this Act

2 or under any other Act.

3 (2) PROPERTY.—The property described in this

4 paragraph is real and personal property under the

5 control of the Department of Defense that is not

6 used by such Department, including property that

7 the Secretary of Defense determines is in excess of

8 current and projected requirements of such Depart9 ment.

10 (d) GROSS RECEIPTS.—Transactions conducted by a

11 private for-profit or nonprofit entity that is an operator

12 or service provider for a Job Corps center shall not be

13 considered to be generating gross receipts. Such an opera14 tor or service provider shall not be liable, directly or indi15 rectly, to any State or subdivision of a State (nor to any

16 person acting on behalf of such a State or subdivision)

17 for any gross receipts taxes, business privilege taxes meas18 ured by gross receipts, or any similar taxes imposed on,

19 or measured by, gross receipts in connection with any pay20 ments made to or by such entity for operating or providing

21 services to a Job Corps center. Such an operator or service

22 provider shall not be liable to any State or subdivision of

23 a State to collect or pay any sales, excise, use, or similar

24 tax imposed on the sale to or use by such operator or serv25 ice provider of any property, service, or other item in con-
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1 nection with the operation of or provision of services to

2 a Job Corps center.

3 (e) MANAGEMENT FEE.—The Secretary shall provide

4 each operator and (in an appropriate case, as determined

5 by the Secretary) service provider with an equitable and

6 negotiated management fee of not less than 1 percent of

7 the amount of the funding provided under the appropriate

8 agreement specified in section 337.

9 (f) DONATIONS.—The Secretary may accept on be10 half of the Job Corps or individual Job Corps centers

11 charitable donations of cash or other assistance, including

12 equipment and materials, if such donations are available

13 for appropriate use for the purposes set forth in this sub14 title.

15 (g) SALE OF PROPERTY.—Notwithstanding any other

16 provision of law, if the Administrator of General Services

17 sells a Job Corps center facility, the Administrator shall

18 transfer the proceeds from the sale to the Secretary, who

19 shall use the proceeds to carry out the Job Corps program.

20 SEC. 349. MANAGEMENT INFORMATION.

21 (a) FINANCIAL MANAGEMENT INFORMATION SYS22 TEM.—

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

24 procedures to ensure that each operator, and each
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1 service provider, maintains a financial management

2 information system that will provide—

3 (A) accurate, complete, and current disclo4 sures of the costs of Job Corps operations; and

5 (B) sufficient data for the effective evalua6 tion of activities carried out through the Job

7 Corps program.

8 (2) ACCOUNTS.—Each operator and service

9 provider shall maintain funds received under this

10 subtitle in accounts in a manner that ensures timely

11 and accurate reporting as required by the Secretary.

12 (3) FISCAL RESPONSIBILITY.—Operators shall

13 remain fiscally responsible and control costs, regard14 less of whether the funds made available for Job

15 Corps centers are incrementally increased or de16 creased between fiscal years.

17 (b) AUDIT.—

18 (1) ACCESS.—The Secretary, the Inspector

19 General of the Department of Labor, the Comptrol20 ler General of the United States, and any of their

21 duly authorized representatives, shall have access to

22 any books, documents, papers, and records of the

23 operators and service providers described in sub24 section (a) that are pertinent to the Job Corps pro25 gram, for purposes of conducting surveys, audits,
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1 and evaluations of the operators and service provid2 ers.

3 (2) SURVEYS, AUDITS, AND EVALUATIONS.—

4 The Secretary shall survey, audit, or evaluate, or ar5 range for the survey, audit, or evaluation of, the op6 erators and service providers, using Federal auditors

7 or independent public accountants. The Secretary

8 shall conduct such surveys, audits, or evaluations

9 not less often than once every 3 years.

10 (c) INFORMATION ON CORE PERFORMANCE MEAS11 URES.—

12 (1) ESTABLISHMENT.—The Secretary shall,

13 with continuity and consistency from year to year,

14 establish core performance measures, and expected

15 performance levels on the performance measures, for

16 Job Corps centers and the Job Corps program, re17 lating to—

18 (A) the number of graduates and the rate

19 of such graduation, analyzed by type of voca20 tional training received through the Job Corps

21 program and by whether the vocational training

22 was provided by a local or national service pro23 vider;

24 (B) the number of graduates who entered

25 unsubsidized employment related to the voca-
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1 tional training received through the Job Corps

2 program and the number who entered

3 unsubsidized employment not related to the vo4 cational training received, analyzed by whether

5 the vocational training was provided by a local

6 or national service provider and by whether the

7 placement in the employment was conducted by

8 a local or national service provider;

9 (C) the average wage received by graduates

10 who entered unsubsidized employment related

11 to the vocational training received through the

12 Job Corps program and the average wage re13 ceived by graduates who entered unsubsidized

14 employment unrelated to the vocational training

15 received;

16 (D) the average wage received by grad17 uates placed in unsubsidized employment after

18 completion of the Job Corps program—

19 (i) on the first day of the employment;

20 (ii) 6 months after the first day of the

21 employment; and

22 (iii) 12 months after the first day of

23 the employment,

24 analyzed by type of vocational training received

25 through the Job Corps program;
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1 (E) the number of graduates who entered

2 unsubsidized employment and were retained in

3 the unsubsidized employment—

4 (i) 6 months after completion of the

5 Job Corps program; and

6 (ii) 12 months after completion of the

7 Job Corps program;

8 (F) the number of graduates who entered

9 unsubsidized employment—

10 (i) for 32 hours per week or more;

11 (ii) for not less than 20 but less than

12 32 hours per week; and

13 (iii) for less than 20 hours per week;

14 (G) the number of graduates who entered

15 postsecondary education or advanced training

16 programs, including registered apprenticeship

17 programs, as appropriate; and

18 (H) the number of graduates who attained

19 job readiness and employment skills.

20 (2) PERFORMANCE OF RECRUITERS.—The Sec21 retary shall also establish performance measures,

22 and expected performance levels on the performance

23 measures, for local and national recruitment service

24 providers serving the Job Corps program. The per25 formance measures shall relate to the number of en-
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1 rollees retained in the Job Corps program for 30

2 days and for 60 days after initial placement in the

3 program.

4 (3) REPORT.—The Secretary shall collect, and

5 annually submit a report to the appropriate commit6 tees of Congress containing, information on the per7 formance of each Job Corps center, and the Job

8 Corps program, on the core performance measures,

9 as compared to the expected performance level for

10 each performance measure. The report shall also

11 contain information on the performance of the serv12 ice providers described in paragraph (2) on the per13 formance measures established under such para14 graph, as compared to the expected performance lev15 els for the performance measures.

16 (d) ADDITIONAL INFORMATION.—The Secretary shall

17 also collect, and submit in the report described in sub18 section (c), information on the performance of each Job

19 Corps center, and the Job Corps program, regarding—

20 (1) the number of enrollees served;

21 (2) the average level of learning gains for grad22 uates and former enrollees;

23 (3) the number of former enrollees and grad24 uates who entered the Armed Forces;
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1 (4) the number of former enrollees who entered

2 postsecondary education;

3 (5) the number of former enrollees who entered

4 unsubsidized employment related to the vocational

5 training received through the Job Corps program

6 and the number who entered unsubsidized employ7 ment not related to the vocational training received;

8 (6) the number of former enrollees and grad9 uates who obtained a secondary school diploma or its

10 recognized equivalent;

11 (7) the number and percentage of dropouts

12 from the Job Corps program including the number

13 dismissed under the zero tolerance policy described

14 in section 342(b); and

15 (8) any additional information required by Sec16 retary.

17 (e) METHODS.—The Secretary may, to collect the in18 formation described in subsections (c) and (d), use meth19 ods described in subtitle A.

20 (f) PERFORMANCE ASSESSMENTS AND IMPROVE21 MENTS.—

22 (1) ASSESSMENTS.—The Secretary shall con23 duct an annual assessment of the performance of

24 each Job Corps center. Based on the assessment, the
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1 Secretary shall take measures to continuously im2 prove the performance of the Job Corps program.

3 (2) PERFORMANCE IMPROVEMENT PLANS.—

4 With respect to a Job Corps center that fails to

5 meet the expected levels of performance relating to

6 the core performance measures specified in sub7 section (c), the Secretary shall develop and imple8 ment a performance improvement plan. Such a plan

9 shall require action including—

10 (A) providing technical assistance to the

11 center;

12 (B) changing the vocational training of13 fered at the center;

14 (C) changing the management staff of the

15 center;

16 (D) replacing the operator of the center;

17 (E) reducing the capacity of the center;

18 (F) relocating the center; or

19 (G) closing the center.

20 (3) ADDITIONAL PERFORMANCE IMPROVEMENT

21 PLANS.—In addition to the performance improve22 ment plans required under paragraph (2), the Sec23 retary may develop and implement additional per24 formance improvement plans. Such a plan shall re25 quire improvements, including the actions described
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1 in paragraph (2), for a Job Corps center that fails

2 to meet criteria established by the Secretary other

3 than the expected levels of performance described in

4 paragraph (2).

5 SEC. 350. GENERAL PROVISIONS.

6 The Secretary is authorized to—

7 (1) disseminate, with regard to the provisions of

8 section 3204 of title 39, United States Code, data

9 and information in such forms as the Secretary shall

10 determine to be appropriate, to public agencies, pri11 vate organizations, and the general public;

12 (2) subject to section 347(b), collect or com13 promise all obligations to or held by the Secretary

14 and exercise all legal or equitable rights accruing to

15 the Secretary in connection with the payment of ob16 ligations until such time as such obligations may be

17 referred to the Attorney General for suit or collec18 tion; and

19 (3) expend funds made available for purposes of

20 this subtitle—

21 (A) for printing and binding, in accordance

22 with applicable law (including regulation); and

23 (B) without regard to any other law (in24 cluding regulation), for rent of buildings and

25 space in buildings and for repair, alteration,
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1 and improvement of buildings and space in

2 buildings rented by the Secretary, except that

3 the Secretary shall not expend funds under the

4 authority of this subparagraph—

5 (i) except when necessary to obtain an

6 item, service, or facility, that is required in

7 the proper administration of this subtitle,

8 and that otherwise could not be obtained,

9 or could not be obtained in the quantity or

10 quality needed, or at the time, in the form,

11 or under the conditions in which the item,

12 service, or facility is needed; and

13 (ii) prior to having given written noti14 fication to the Administrator of General

15 Services (if the expenditure would affect an

16 activity that otherwise would be under the

17 jurisdiction of the General Services Admin18 istration) of the intention of the Secretary

19 to make the expenditure, and the reasons

20 and justifications for the expenditure.

21 SEC. 351. AUTHORIZATION OF APPROPRIATIONS.

22 There are authorized to be appropriated to carry out

23 this subtitle such sums as may be necessary for each of

24 the fiscal years 1999 through 2003.
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1 Subtitle C—National Programs

2 SEC. 361. NATIVE AMERICAN PROGRAMS.

3 (a) PURPOSE AND POLICY.—

4 (1) PURPOSE.—The purpose of this section is

5 to support workforce investment activities and sup6 plemental services for Indian and Native Hawaiian

7 individuals in order—

8 (A) to develop more fully the academic, oc9 cupational, and literacy skills of such individ10 uals;

11 (B) to make such individuals more com12 petitive in the workforce; and

13 (C) to promote the economic and social de14 velopment of Indian and Native Hawaiian com15 munities in accordance with the goals and val16 ues of such communities.

17 (2) INDIAN POLICY.—All programs assisted

18 under this section shall be administered in a manner

19 consistent with the principles of the Indian Self-De20 termination and Education Assistance Act (25

21 U.S.C. 450 et seq.) and the government-to-govern22 ment relationship between the Federal Government

23 and Indian tribal governments.

24 (b) DEFINITIONS.—In this section:
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1 (1) INDIAN, INDIAN TRIBE, AND TRIBAL ORGA2 NIZATION.—The terms ‘‘Indian’’, ‘‘Indian tribe’’,

3 and ‘‘tribal organization’’ have the meanings given

4 such terms in subsections (d), (e), and (l), respec5 tively, of section 4 of the Indian Self-Determination

6 and Education Assistance Act (25 U.S.C. 450b).

7 (2) NATIVE HAWAIIAN AND NATIVE HAWAIIAN

8 ORGANIZATION.—The terms ‘‘Native Hawaiian’’ and

9 ‘‘Native Hawaiian organization’’ have the meanings

10 given such terms in paragraphs (1) and (3), respec11 tively, of section 9212 of the Native Hawaiian Edu12 cation Act (20 U.S.C. 7912).

13 (c) PROGRAMS AUTHORIZED.—The Secretary shall

14 make grants to, or enter into contracts or cooperative

15 agreements with, Indian tribes, tribal organizations, In16 dian-controlled organizations serving Indians, or Native

17 Hawaiian organizations to carry out the authorized activi18 ties described in subsection (d).

19 (d) AUTHORIZED ACTIVITIES.—

20 (1) IN GENERAL.—Funds made available under

21 this section shall be used to carry out the activities

22 described in paragraph (2) that—

23 (A) are consistent with this section; and
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1 (B) are necessary to meet the needs of In2 dians or Native Hawaiians preparing to enter,

3 reenter, or retain unsubsidized employment.

4 (2) WORKFORCE INVESTMENT ACTIVITIES AND

5 SUPPLEMENTAL SERVICES.—

6 (A) IN GENERAL.—Funds made available

7 under this section shall be used for—

8 (i) building a comprehensive facility to

9 be utilized by American Samoans residing

10 in Hawaii for the co-location of federally

11 funded and State funded workforce invest12 ment activities;

13 (ii) comprehensive workforce invest14 ment activities for Indians or Native Ha15 waiians; or

16 (iii) supplemental services for Indian

17 or Native Hawaiian youth on or near In18 dian reservations and in Oklahoma, Alas19 ka, or Hawaii.

20 (B) SPECIAL RULE.—Notwithstanding any

21 other provision of this section, individuals who

22 were eligible to participate in programs under

23 section 401 of the Job Training Partnership

24 Act (29 U.S.C. 1671) (as such section was in

25 effect on the day before the date of enactment
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1 of this Act) shall be eligible to participate in an

2 activity assisted under subparagraph (A)(i).

3 (e) PROGRAM PLAN.—In order to receive a grant or

4 enter into a contract or cooperative agreement under this

5 section an entity described in subsection (c) shall submit

6 to the Secretary a plan that describes a 2-year strategy

7 for meeting the needs of Indian or Native Hawaiian indi8 viduals, as appropriate, in the area served by such entity.

9 Such plan shall—

10 (1) be consistent with the purpose of this sec11 tion;

12 (2) identify the population to be served;

13 (3) identify the education and employment

14 needs of the population to be served and the manner

15 in which the activities to be provided will strengthen

16 the ability of the individuals served to obtain or re17 tain unsubsidized employment;

18 (4) describe the activities to be provided and

19 the manner in which such activities are to be inte20 grated with other appropriate activities; and

21 (5) describe, after the entity submitting the

22 plan consults with the Secretary, the performance

23 measures to be used to assess the performance of

24 entities in carrying out the activities assisted under

25 this section.
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1 (f) CONSOLIDATION OF FUNDS.—Each entity receiv2 ing assistance under this section may consolidate such as3 sistance with assistance received from related programs in

4 accordance with the provisions of the Indian Employment,

5 Training and Related Services Demonstration Act of 1992

6 (25 U.S.C. 3401 et seq.).

7 (g) NONDUPLICATIVE AND NONEXCLUSIVE SERV8 ICES.—Nothing in this section shall be construed—

9 (1) to limit the eligibility of any entity de10 scribed in subsection (c) to participate in any activ11 ity offered by a State or local entity under this Act;

12 or

13 (2) to preclude or discourage any agreement,

14 between any entity described in subsection (c) and

15 any State or local entity, to facilitate the provision

16 of services by such entity or to the population served

17 by such entity.

18 (h) ADMINISTRATIVE PROVISIONS.—

19 (1) ORGANIZATIONAL UNIT ESTABLISHED.—

20 The Secretary shall designate a single organizational

21 unit within the Department of Labor that shall have

22 primary responsibility for the administration of the

23 activities authorized under this section.

24 (2) REGULATIONS.—The Secretary shall con25 sult with the entities described in subsection (c) in—
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1 (A) establishing regulations to carry out

2 this section, including performance measures

3 for entities receiving assistance under such sub4 section, taking into account the economic cir5 cumstances of such entities; and

6 (B) developing a funding distribution plan

7 that takes into consideration previous levels of

8 funding (prior to the date of enactment of this

9 Act) to such entities.

10 (3) WAIVERS.—

11 (A) IN GENERAL.—With respect to an en12 tity described in subsection (c), the Secretary,

13 notwithstanding any other provision of law,

14 may, pursuant to a request submitted by such

15 entity that meets the requirements established

16 under paragraph (2), waive any of the statutory

17 or regulatory requirements of this title that are

18 inconsistent with the specific needs of the enti19 ties described in such subsection, except that

20 the Secretary may not waive requirements relat21 ing to wage and labor standards, worker rights,

22 participation and protection of participants,

23 grievance procedures, and judicial review.

24 (B) REQUEST AND APPROVAL.—An entity

25 described in subsection (c) that requests a waiv-
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1 er under subparagraph (A) shall submit a plan

2 to the Secretary to improve the program of

3 workforce investment activities carried out by

4 the entity, which plan shall meet the require5 ments established by the Secretary and shall be

6 generally consistent with the requirements of

7 section 379(i)(3).

8 (4) ADVISORY COUNCIL.—

9 (A) IN GENERAL.—The Secretary shall es10 tablish a Native American Employment and

11 Training Council to facilitate the consultation

12 described in paragraph (2).

13 (B) COMPOSITION.—The Council shall be

14 composed of individuals, appointed by the Sec15 retary, who are representatives of the entities

16 described in subsection (c).

17 (C) DUTIES.—The Council shall advise the

18 Secretary on all aspects of the operation and

19 administration of the programs assisted under

20 this section, including the selection of the indi21 vidual appointed as the head of the unit estab22 lished under paragraph (1).

23 (D) PERSONNEL MATTERS.—
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1 (i) COMPENSATION OF MEMBERS.—

2 Members of the Council shall serve without

3 compensation.

4 (ii) TRAVEL EXPENSES.—The mem5 bers of the Council shall be allowed travel

6 expenses, including per diem in lieu of sub7 sistence, at rates authorized for employees

8 of agencies under subchapter I of chapter

9 57 of title 5, United States Code, while

10 away from their homes or regular places of

11 business in the performance of services for

12 the Council.

13 (iii) ADMINISTRATIVE SUPPORT.—The

14 Secretary shall provide the Council with

15 such administrative support as may be nec16 essary to perform the functions of the

17 Council.

18 (E) CHAIRPERSON.—The Council shall se19 lect a chairperson from among its members.

20 (F) MEETINGS.—The Council shall meet

21 not less than twice each year.

22 (G) APPLICATION.—Section 14 of the Fed23 eral Advisory Committee Act (5 U.S.C. App.)

24 shall not apply to the Council.
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1 (5) TECHNICAL ASSISTANCE.—The Secretary,

2 acting through the unit established under paragraph

3 (1), is authorized to provide technical assistance to

4 entities described in subsection (c) that receive as5 sistance under this section to enable such entities to

6 improve the activities authorized under this section

7 that are provided by such entities.

8 SEC. 362. MIGRANT AND SEASONAL FARMWORKER PRO9 GRAMS.

10 (a) IN GENERAL.—Every 2 years, the Secretary

11 shall, on a competitive basis, make grants to, or enter into

12 contracts with, eligible entities to carry out the activities

13 described in subsection (d).

14 (b) ELIGIBLE ENTITIES.—To be eligible to receive a

15 grant or enter into a contract under this section, an entity

16 shall have an understanding of the problems of eligible mi17 grant and seasonal farmworkers (including dependents),

18 a familiarity with the area to be served, and the ability

19 to demonstrate a capacity to administer effectively a diver20 sified program of workforce investment activities (includ21 ing youth activities) and related assistance for eligible mi22 grant and seasonal farmworkers.

23 (c) PROGRAM PLAN.—

24 (1) IN GENERAL.—To be eligible to receive a

25 grant or enter into a contract under this section, an
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1 entity described in subsection (b) shall submit to the

2 Secretary a plan that describes a 2-year strategy for

3 meeting the needs of eligible migrant and seasonal

4 farmworkers in the area to be served by such entity.

5 (2) ADMINISTRATION.—Grants and contracts

6 awarded under this section shall be centrally admin7 istered by the Department of Labor and competi8 tively awarded by the Secretary using procedures

9 consistent with standard Federal Government com10 petitive procurement policies.

11 (3) COMPETITION.—

12 (A) IN GENERAL.—The competition for

13 grants made and contracts entered into under

14 this section shall be conducted every 2 years.

15 (B) EXCEPTION.—Notwithstanding sub16 paragraph (A), if a recipient of such a grant or

17 contract has performed satisfactorily under the

18 terms of the grant agreement or contract, the

19 Secretary may waive the requirement for such

20 competition for such recipient upon receipt

21 from the recipient of a satisfactory 2-year plan

22 described in paragraph (1) for the succeeding

23 2-year grant or contract period.

24 (4) CONTENTS.—Such plan shall—
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1 (A) identify the education and employment

2 needs of the eligible migrant and seasonal farm3 workers to be served and the manner in which

4 the workforce investment activities (including

5 youth activities) to be carried out will strength6 en the ability of the eligible migrant and sea7 sonal farmworkers to obtain or retain

8 unsubsidized employment or stabilize their

9 unsubsidized employment;

10 (B) describe the related assistance, includ11 ing supportive services, to be provided and the

12 manner in which such assistance and services

13 are to be integrated and coordinated with other

14 appropriate services; and

15 (C) describe, after consultation with the

16 Secretary, the performance measures to be used

17 to assess the performance of such entity in car18 rying out the activities assisted under this sec19 tion.

20 (d) AUTHORIZED ACTIVITIES.—Funds made avail21 able under this section shall be used to carry out workforce

22 investment activities (including youth activities) and pro23 vide related assistance for eligible migrant and seasonal

24 farmworkers, which may include employment, training,

25 educational assistance, literacy assistance, an English lan-
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1 guage program, worker safety training, supportive serv2 ices, dropout prevention activities, follow-up services for

3 those individuals placed in employment, self-employment

4 and related business enterprise development education as

5 needed by eligible migrant and seasonal farmworkers and

6 identified pursuant to the plan required by subsection (c),

7 and technical assistance relating to capacity enhancement

8 in such areas as management information technology.

9 (e) CONSULTATION WITH GOVERNORS AND LOCAL

10 PARTNERSHIPS.—In making grants and entering into con11 tracts under this section, the Secretary shall consult with

12 the Governors and local partnerships of the States in

13 which the eligible entities will carry out the activities de14 scribed in subsection (d).

15 (f) REGULATIONS.—The Secretary shall consult with

16 eligible migrant and seasonal farmworkers groups and

17 States in establishing regulations to carry out this section,

18 including performance measures for eligible entities that

19 take into account the economic circumstances and demo20 graphics of eligible migrant and seasonal farmworkers.

21 (g) DEFINITIONS.—In this section:

22 (1) DISADVANTAGED.—The term ‘‘disadvan23 taged’’, used with respect to a farmworker, means a

24 farmworker whose income, for 12 consecutive

25 months out of the 24 months prior to application for
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1 the program involved, does not exceed the higher

2 of—

3 (A) the poverty line (as defined in section

4 334(a)(2)(B)) for an equivalent period; or

5 (B) 70 percent of the lower living standard

6 income level, for an equivalent period.

7 (2) ELIGIBLE MIGRANT AND SEASONAL FARM8 WORKERS.—The term ‘‘eligible migrant and seasonal

9 farmworkers’’ means individuals who are eligible mi10 grant farmworkers or are eligible seasonal farm11 workers.

12 (3) ELIGIBLE MIGRANT FARMWORKER.—The

13 term ‘‘eligible migrant farmworker’’ means—

14 (A) an eligible seasonal farmworker de15 scribed in paragraph (4)(A) whose agricultural

16 labor requires travel to a job site such that the

17 farmworker is unable to return to a permanent

18 place of residence within the same day; and

19 (B) a dependent of the farmworker de20 scribed in subparagraph (A).

21 (4) ELIGIBLE SEASONAL FARMWORKER.—The

22 term ‘‘eligible seasonal farmworker’’ means—

23 (A) a disadvantaged person who, for 12

24 consecutive months out of the 24 months prior

25 to application for the program involved, has
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1 been primarily employed in agricultural labor

2 that is characterized by chronic unemployment

3 or underemployment; and

4 (B) a dependent of the person described in

5 subparagraph (A).

6 SEC. 363. VETERANS’ WORKFORCE INVESTMENT PRO7 GRAMS.

8 (a) AUTHORIZATION.—

9 (1) IN GENERAL.—The Secretary shall conduct,

10 directly or through grants or contracts, programs to

11 meet the needs for workforce investment activities of

12 service-connected disabled veterans, Vietnam era vet13 erans, and recently separated veterans.

14 (2) CONDUCT OF PROGRAMS.—Programs sup15 ported under this section may be conducted through

16 grants and contracts with public agencies and pri17 vate nonprofit organizations, including recipients of

18 Federal assistance under other provisions of this

19 title, that the Secretary determines have an under20 standing of the unemployment problems of veterans

21 described in paragraph (1), familiarity with the area

22 to be served, and the capability to administer effec23 tively a program of workforce investment activities

24 for such veterans.
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1 (3) REQUIRED ACTIVITIES.—Programs sup2 ported under this section shall include—

3 (A) activities to enhance services provided

4 to veterans by other providers of workforce in5 vestment activities funded by Federal, State, or

6 local government;

7 (B) activities to provide workforce invest8 ment activities to such veterans that are not

9 adequately provided by other public providers of

10 workforce investment activities; and

11 (C) outreach and public information activi12 ties to develop and promote maximum job and

13 job training opportunities for such veterans and

14 to inform such veterans about employment, job

15 training, on-the-job training and educational

16 opportunities under this title, under title 38,

17 United States Code, and under other provisions

18 of law, which activities shall be coordinated with

19 activities provided through the one-stop cus20 tomer service centers.

21 (b) ADMINISTRATION OF PROGRAMS.—

22 (1) IN GENERAL.—The Secretary shall admin23 ister programs supported under this section through

24 the Assistant Secretary for Veterans’ Employment

25 and Training.
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1 (2) ADDITIONAL RESPONSIBILITIES.—In carry2 ing out responsibilities under this section, the Assist3 ant Secretary for Veterans’ Employment and Train4 ing shall—

5 (A) be responsible for the awarding of

6 grants and contracts and the distribution of

7 funds under this section and for the establish8 ment of appropriate fiscal controls, accountabil9 ity, and program performance measures for re10 cipients of grants and contracts under this sec11 tion; and

12 (B) consult with the Secretary of Veterans

13 Affairs and take steps to ensure that programs

14 supported under this section are coordinated, to

15 the maximum extent feasible, with related pro16 grams and activities conducted under title 38,

17 United States Code, including programs and ac18 tivities conducted under subchapter II of chap19 ter 77 of such title, chapters 30, 31, 32, and

20 34 of such title, and sections 1712A, 1720A,

21 3687, and 4103A of such title.

22 SEC. 364. YOUTH OPPORTUNITY GRANTS.

23 (a) GRANTS.—

24 (1) IN GENERAL.—Using funds made available

25 under section 302(b)(3)(A), the Secretary shall
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1 make grants to eligible local partnerships to provide

2 activities described in subsection (b) for youth to in3 crease the long-term employment of eligible youth

4 who live in empowerment zones, enterprise commu5 nities, and high poverty areas and who seek assist6 ance.

7 (2) GRANT PERIOD.—The Secretary may make

8 a grant under this section for a 1-year period, and

9 may renew the grant for each of the 4 succeeding

10 years.

11 (3) GRANT AWARDS.—The minimum amount

12 that may be made available to a grant recipient for

13 the first year of a grant made under this section

14 shall be $10,000,000.

15 (b) USE OF FUNDS.—

16 (1) IN GENERAL.—A local partnership that re17 ceives a grant under this section shall use the funds

18 made available through the grant to provide activi19 ties that meet the requirements of section 316, ex20 cept as provided in paragraph (2), as well as youth

21 development activities such as activities relating to

22 leadership development, citizenship, and community

23 service, and recreation activities.
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1 (2) INTENSIVE PLACEMENT AND FOLLOWUP

2 SERVICES.—In providing activities under this sec3 tion, a local partnership shall provide—

4 (A) intensive placement services; and

5 (B) followup services for not less than 24

6 months after the completion of participation in

7 the other activities described in this subsection,

8 as appropriate.

9 (c) ELIGIBLE LOCAL PARTNERSHIPS.—To be eligible

10 to receive a grant under this section, a local partnership—

11 (1) shall serve a community that—

12 (A) has a population of at least 50,000;

13 and

14 (B) has been designated as an

15 empowerment zone or an enterprise community

16 under section 1391 of the Internal Revenue

17 Code of 1986; or

18 (2) in a State without a zone or community de19 scribed in paragraph (1)(B), shall serve a commu20 nity that has been designated as a high poverty area

21 by the Governor of the State.

22 (d) APPLICATION.—To be eligible to receive a grant

23 under this section, a local partnership shall submit an ap24 plication to the Secretary at such time, in such manner,
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1 and containing such information as the Secretary may re2 quire, including—

3 (1) a description of the activities that the local

4 partnership will provide under this section to youth

5 in the community described in subsection (c);

6 (2) a description of the performance measures

7 negotiated under subsection (e), and the manner in

8 which the local partnerships will carry out the activi9 ties to meet the performance measures;

10 (3) a description of the manner in which the ac11 tivities will be linked to activities described in section

12 316; and

13 (4) a description of the community support, in14 cluding financial support through leveraging addi15 tional public and private resources, for the activities.

16 (e) PERFORMANCE MEASURES.—

17 (1) IN GENERAL.—The Secretary shall nego18 tiate and reach agreement with the local partnership

19 on performance measures that will be used to evalu20 ate the performance of the local partnership in car21 rying out the activities described in subsection (b).

22 Each local performance measure shall consist of an

23 indicator of performance referred to in paragraph

24 (2) or (3) of section 321(a), and a performance level

25 referred to in paragraph (2).
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1 (2) PERFORMANCE LEVELS.—The Secretary

2 shall negotiate and reach agreement with the local

3 partnership regarding the levels of performance ex4 pected to be achieved for the local partnership on

5 the indicators of performance.

6 SEC. 365. INCENTIVE GRANTS.

7 (a) IN GENERAL.—The Secretary may make grants

8 to States that exceed—

9 (1) the State performance measures established

10 by the Secretary of Education under this Act; and

11 (2) the State performance measures established

12 under this title.

13 (b) PRIORITY.—In awarding incentive grants under

14 this section, the Secretary shall give priority to those

15 States submitting a State unified plan as described in sec16 tion 501 that is approved by the appropriate Secretaries

17 as described in such section.

18 (c) USE OF FUNDS.—A State that receives an incen19 tive grant under this section shall use the funds made

20 available through the grant to carry out innovative pro21 grams as determined by the State.

22 SEC. 366. TECHNICAL ASSISTANCE.

23 (a) TRANSITION ASSISTANCE.—The Secretary shall

24 provide technical assistance to assist States in making

25 transitions from carrying out activities under provisions
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1 described in section 391 to carrying out activities under

2 this title.

3 (b) PERFORMANCE IMPROVEMENT.—

4 (1) GENERAL ASSISTANCE.—

5 (A) AUTHORITY.—The Secretary—

6 (i) shall provide technical assistance

7 to States that do not meet a State per8 formance measure described in section

9 321(a) for a program year; and

10 (ii) may provide technical assistance

11 to other States, local areas, and grant re12 cipients under sections 361 and 362 to

13 promote the continuous improvement of

14 the programs and activities authorized

15 under this title.

16 (B) FORM OF ASSISTANCE.—In carrying

17 out this paragraph on behalf of a State, or

18 grant recipient under section 361 or 362, the

19 Secretary, after consultation with the State or

20 grant recipient, may award grants and enter

21 into contracts and cooperative agreements.

22 (C) LIMITATION.—Grants or contracts

23 awarded under this paragraph that are for

24 amounts in excess of $50,000 shall only be

25 awarded on a competitive basis.
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1 (2) DISLOCATED WORKER TECHNICAL ASSIST2 ANCE.—

3 (A) AUTHORITY.—Of the amounts avail4 able pursuant to section 302(a)(2), the Sec5 retary shall reserve not more than 5 percent of

6 such amounts to provide technical assistance to

7 States that do not meet the State performance

8 measures described in section 321(a) with re9 spect to employment and training activities for

10 dislocated workers. Using such reserved funds,

11 the Secretary may provide such assistance to

12 other States, local areas, business and labor or13 ganizations, and other entities involved in pro14 viding assistance to dislocated workers, to pro15 mote the continuous improvement of assistance

16 provided to dislocated workers, under this title.

17 (B) TRAINING.—Amounts reserved under

18 this paragraph may be used to provide for the

19 training of staff, including specialists, who pro20 vide rapid response services. Such training shall

21 include instruction in proven methods of pro22 moting, establishing, and assisting labor-man23 agement committees. Such projects shall be ad24 ministered through the dislocated worker office

25 described in section 369(b).
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1 SEC. 367. DEMONSTRATION, PILOT, MULTISERVICE, RE2 SEARCH, AND MULTISTATE PROJECTS.

3 (a) STRATEGIC PLAN.—

4 (1) IN GENERAL.—After consultation with

5 States, localities, and other interested parties, the

6 Secretary shall, every 2 years, publish in the Federal

7 Register, a plan that describes the demonstration

8 and pilot (including dislocated worker demonstration

9 and pilot), multiservice, research, and multistate

10 project priorities of the Department of Labor con11 cerning employment and training for the 5-year pe12 riod following the submission of the plan. Copies of

13 the plan shall be transmitted to the appropriate

14 committees of Congress.

15 (2) LIMITATION.—With respect to a plan pub16 lished under paragraph (1), the Secretary shall en17 sure that research projects (referred to in subsection

18 (d)) are considered for incorporation into the plan

19 only after projects referred to in subsections (b), (c),

20 and (e) have been considered and incorporated into

21 the plan, and are funded only as funds remain to

22 permit the funding of such research projects.

23 (3) FACTORS.—The plan published under para24 graph (1) shall contain strategies to address national

25 employment and training problems and take into ac26 count factors such as—
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1 (A) the availability of existing research (as

2 of the date of the publication);

3 (B) the need to ensure results that have

4 interstate validity;

5 (C) the benefits of economies of scale and

6 the efficiency of proposed projects; and

7 (D) the likelihood that the results of the

8 projects will be useful to policymakers and

9 stakeholders in addressing employment and

10 training problems.

11 (b) DEMONSTRATION AND PILOT PROJECTS.—

12 (1) IN GENERAL.—Under a plan published

13 under subsection (a), the Secretary shall, through

14 grants or contracts, carry out demonstration and

15 pilot projects for the purpose of developing and im16 plementing techniques and approaches, and dem17 onstrating the effectiveness of specialized methods,

18 in addressing employment and training needs. Such

19 projects shall include the provision of direct services

20 to individuals to enhance employment opportunities

21 and an evaluation component.

22 (2) LIMITATIONS.—

23 (A) COMPETITIVE AWARDS.—Grants or

24 contracts awarded for carrying out demonstra25 tion and pilot projects under this subsection
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1 shall be awarded only on a competitive basis,

2 except that a noncompetitive award may be

3 made in the case of a project that is funded

4 jointly with other public or private sector enti5 ties that provide a substantial portion of the

6 funding for the project.

7 (B) ELIGIBLE ENTITIES.—Grants or con8 tracts may be awarded under this subsection

9 only to—

10 (i) entities with recognized expertise

11 in—

12 (I) conducting national dem13 onstration projects;

14 (II) utilizing state-of-the-art

15 demonstration methods; and

16 (III) conducting evaluations of

17 employment and training projects; or

18 (ii) State and local entities with exper19 tise in operating or overseeing employment

20 and training programs.

21 (C) TIME LIMITS.—The Secretary shall es22 tablish appropriate time limits for carrying out

23 demonstration and pilot projects under this

24 subsection.

25 (c) MULTISERVICE PROJECTS.—
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1 (1) IN GENERAL.—Under a plan published

2 under subsection (a), the Secretary shall, through

3 grants or contracts, carry out multiservice

4 projects—

5 (A) that will test an array of approaches to

6 the provision of employment and training serv7 ices to a variety of targeted populations;

8 (B) in which the entity carrying out the

9 project, in conjunction with employers, orga10 nized labor, and other groups such as the dis11 ability community, will design, develop, and test

12 various training approaches in order to deter13 mine effective practices; and

14 (C) that will assist in the development and

15 replication of effective service delivery strategies

16 for targeted populations for the national em17 ployment and training system as a whole.

18 (2) LIMITATIONS.—

19 (A) COMPETITIVE AWARDS.—Grants or

20 contracts awarded for carrying out multiservice

21 projects under this subsection shall be awarded

22 only on a competitive basis.

23 (B) TIME LIMITS.—A grant or contract

24 shall not be awarded under this subsection to

25 the same organization for more than 3 consecu-
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1 tive years unless such grant or contract is com2 petitively reevaluated within such period.

3 (d) RESEARCH.—

4 (1) IN GENERAL.—Under a plan published

5 under subsection (a), the Secretary shall, through

6 grants or contracts, carry out research projects that

7 will contribute to the solution of employment and

8 training problems in the United States.

9 (2) LIMITATIONS.—

10 (A) COMPETITIVE AWARDS.—Grants or

11 contracts awarded for carrying out research

12 projects under this subsection in amounts that

13 exceed $50,000 shall be awarded only on a com14 petitive basis, except that a noncompetitive

15 award may be made in the case of a project

16 that is funded jointly with other public or pri17 vate sector entities that provide a substantial

18 portion of the funding for the project.

19 (B) ELIGIBLE ENTITIES.—Grants or con20 tracts shall be awarded under this subsection

21 only to entities with nationally recognized ex22 pertise in the methods, techniques, and knowl23 edge of the social sciences.

24 (C) TIME LIMITS.—The Secretary shall es25 tablish appropriate time limits for the duration
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1 of research projects funded under this sub2 section.

3 (e) MULTISTATE PROJECTS.—

4 (1) IN GENERAL.—

5 (A) AUTHORITY.—Under a plan published

6 under subsection (a), the Secretary may,

7 through grants or contracts, carry out

8 multistate projects that require demonstrated

9 expertise that is available at the national level

10 to effectively disseminate best practices and

11 models for implementing employment and train12 ing services, address the specialized employment

13 and training needs of particular service popu14 lations, or address industrywide skill shortages.

15 (B) DESIGN OF GRANTS.—Grants or con16 tracts awarded under this subsection shall be

17 designed to obtain information relating to the

18 provision of services under different economic

19 conditions or to various demographic groups in

20 order to provide guidance at the national and

21 State levels about how best to administer spe22 cific employment and training services.

23 (2) LIMITATIONS.—

24 (A) COMPETITIVE AWARDS.—Grants or

25 contracts awarded for carrying out multistate
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1 projects under this subsection shall be awarded

2 only on a competitive basis.

3 (B) TIME LIMITS.—A grant or contract

4 shall not be awarded under this subsection to

5 the same organization for more than 3 consecu6 tive years unless such grant or contract is com7 petitively reevaluated within such period.

8 (f) DISLOCATED WORKER PROJECTS.—Of the

9 amount made available pursuant to section 302(a)(2)(A)

10 for any program year, the Secretary shall use not more

11 than 5 percent of such amount to carry out demonstration

12 and pilot projects, multiservice projects, and multistate

13 projects, relating to the employment and training needs

14 of dislocated workers. Of the requirements of this section,

15 such projects shall be subject only to the provisions relat16 ing to review and evaluation of applications under sub17 section (g). Such projects may include demonstration and

18 pilot projects relating to promoting self-employment, pro19 moting job creation, averting dislocations, assisting dis20 located farmers, assisting dislocated fishermen, and pro21 moting public works. Such projects shall be administered

22 through the dislocated worker office described in section

23 369(b).

24 (g) PEER REVIEW.—The Secretary shall utilize a

25 peer review process to—
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1 (1) review and evaluate all applications for

2 grants and contracts in amounts that exceed

3 $100,000 that are submitted under this section; and

4 (2) review and designate exemplary and promis5 ing programs under this section.

6 SEC. 368. EVALUATIONS.

7 (a) PROGRAMS AND ACTIVITIES CARRIED UNDER

8 THIS TITLE.—For the purpose of improving the manage9 ment and effectiveness of programs and activities carried

10 out under this title, the Secretary shall provide for the

11 continuing evaluation of the programs and activities. Such

12 evaluations shall address—

13 (1) the general effectiveness of such programs

14 and activities in relation to their cost;

15 (2) the effectiveness of the performance meas16 ures relating to such programs and activities;

17 (3) the effectiveness of the structure and mech18 anisms for delivery of services through such pro19 grams and activities;

20 (4) the impact of the programs and activities on

21 the community and participants involved;

22 (5) the impact of such programs and activities

23 on related programs and activities;
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1 (6) the extent to which such programs and ac2 tivities meet the needs of various demographic

3 groups; and

4 (7) such other factors as may be appropriate.

5 (b) OTHER PROGRAMS AND ACTIVITIES.—The Sec6 retary may conduct evaluations of other federally funded

7 employment-related programs and activities, including

8 programs and activities administered under—

9 (1) the Wagner-Peyser Act (29 U.S.C. 49 et

10 seq.);

11 (2) the Act of August 16, 1937 (commonly

12 known as the ‘‘National Apprenticeship Act’’; 50

13 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.);

14 (3) the Older Americans Act of 1965 (42

15 U.S.C. 3001 et seq.);

16 (4) chapter 2 of title II of the Trade Act of

17 1974 (19 U.S.C. 2271 et seq.); and

18 (5) the Federal unemployment insurance pro19 gram under titles III, IX, and XII of the Social Se20 curity Act (42 U.S.C. 501 et seq., 1101 et seq., and

21 1321 et seq.).

22 (c) TECHNIQUES.—Evaluations conducted under this

23 section shall utilize appropriate methodology and research

24 designs, which may include the use of control groups cho25 sen by scientific random assignment methodologies. Such
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1 an evaluation shall be conducted by a person not imme2 diately involved in the administration of the program or

3 activity being evaluated.

4 (d) REPORTS.—The entity carrying out an evaluation

5 described in subsection (a), (b), or (c) shall prepare and

6 submit to the Secretary a draft report and a final report

7 containing the results of the evaluation.

8 (e) REPORTS TO CONGRESS.—Not later than 30 days

9 after the completion of such a draft report, the Secretary

10 shall transmit the draft report to the appropriate commit11 tees of Congress. Not later than 60 days after the comple12 tion of such a final report, the Secretary shall transmit

13 the final report to the appropriate committees of Con14 gress.

15 SEC. 369. NATIONAL EMERGENCY GRANTS.

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

17 award national emergency grants in a timely manner—

18 (1) to an entity described in subsection (c) to

19 provide employment and training assistance to work20 ers affected by major economic dislocations, such as

21 plant closures, mass layoffs, or closures and realign22 ments of military installations;

23 (2) to provide assistance to the Governor of any

24 State within the boundaries of which is an area that

25 has suffered an emergency or a major disaster as
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1 defined in paragraphs (1) and (2), respectively, of

2 section 102 of The Robert T. Stafford Disaster Re3 lief and Emergency Assistance Act (42 U.S.C. 5122

4 (1) and (2)) (referred to in this section as the ‘‘dis5 aster area’’) to provide disaster relief employment in

6 the area; and

7 (3) to provide additional assistance to a State

8 or local partnership for eligible dislocated workers in

9 a case in which the State or local partnership has

10 expended the funds provided under this section to

11 carry out activities described in paragraphs (1) and

12 (2) and can demonstrate the need for additional

13 funds to provide appropriate services for such work14 ers, in accordance with requirements prescribed by

15 the Secretary.

16 (b) ADMINISTRATION.—The Secretary shall designate

17 a dislocated worker office to coordinate the functions of

18 the Secretary under this title relating to national emer19 gency grants.

20 (c) EMPLOYMENT AND TRAINING ASSISTANCE RE21 QUIREMENTS.—

22 (1) APPLICATION.—To be eligible to receive a

23 grant under subsection (a)(1), an entity shall submit

24 an application to the Secretary at such time, in such
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1 manner, and containing such information as the Sec2 retary may require.

3 (2) ELIGIBLE ENTITY.—In this subsection, the

4 term ‘‘entity’’ means a State, a local partnership, an

5 entity described in section 361(c), an employer or

6 employer association, a labor organization, and an

7 entity determined to be eligible by the Governor of

8 the State involved.

9 (d) DISASTER RELIEF EMPLOYMENT ASSISTANCE

10 REQUIREMENTS.—

11 (1) IN GENERAL.—Funds made available under

12 subsection (a)(2)—

13 (A) shall be used to provide disaster relief

14 employment on projects that provide food,

15 clothing, shelter, and other humanitarian assist16 ance for disaster victims, and projects regard17 ing demolition, cleaning, repair, renovation, and

18 reconstruction of damaged and destroyed struc19 tures, facilities, and lands located within the

20 disaster area;

21 (B) may be expended through public and

22 private agencies and organizations engaged in

23 such projects; and

24 (C) may be expended to provide the serv25 ices authorized under section 315(c).
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1 (2) ELIGIBILITY.—An individual shall be eligi2 ble to be offered disaster relief employment under

3 subsection (a)(2) if such individual is a dislocated

4 worker, is a long-term unemployed individual, or is

5 temporarily or permanently laid off as a consequence

6 of the disaster.

7 (3) LIMITATIONS ON DISASTER RELIEF EM8 PLOYMENT.—No individual shall be employed under

9 subsection (a)(2) for more than 6 months for work

10 related to recovery from a single natural disaster.

11 SEC. 370. AUTHORIZATION OF APPROPRIATIONS.

12 (a) IN GENERAL.—

13 (1) NATIVE AMERICAN PROGRAMS; MIGRANT

14 AND SEASONAL FARMWORKER PROGRAMS; VETER15 ANS’ EMPLOYMENT PROGRAMS.—Subject to sub16 section (b)(1), there are authorized to be appro17 priated to carry out sections 361 through 363 such

18 sums as may be necessary for each of the fiscal

19 years 1999 through 2003.

20 (2) INCENTIVE GRANTS; TECHNICAL ASSIST21 ANCE; DEMONSTRATION AND PILOT PROJECTS;

22 EVALUATIONS.—Subject to subsection (b)(2), there

23 are authorized to be appropriated to carry out sec24 tions 365 through 368, such sums as may be nec25 essary for each of fiscal years 1999 through 2003.
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1 (b) RESERVATIONS.—

2 (1) NATIVE AMERICAN PROGRAMS; MIGRANT

3 AND SEASONAL FARMWORKER PROGRAMS; VETER4 ANS’ EMPLOYMENT PROGRAMS.—Of the amount ap5 propriated under subsection (a)(1) for a fiscal year,

6 the Secretary shall—

7 (A) reserve not less than $55,000,000 for

8 carrying out section 361;

9 (B) reserve not less than $70,000,000 for

10 carrying out section 362; and

11 (C) reserve not less than $7,300,000 for

12 carrying out section 363.

13 (2) INCENTIVE GRANTS; TECHNICAL ASSIST14 ANCE; DEMONSTRATION AND PILOT PROJECTS;

15 EVALUATIONS.—Of the amount appropriated under

16 subsection (a)(2) for a fiscal year, the Secretary

17 shall—

18 (A) reserve 36.8 percent for carrying out

19 section 365;

20 (B) reserve 25 percent for carrying out

21 section 366 (other than section 366(b)(2));

22 (C) reserve 24.2 percent of a carrying out

23 section 367 (other than 367(f)); and

24 (D) reserve 14 percent for carrying out

25 section 368.
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1 Subtitle D—Administration

2 SEC. 371. REQUIREMENTS AND RESTRICTIONS.

3 (a) BENEFITS.—

4 (1) WAGES.—

5 (A) IN GENERAL.—Individuals in on-the6 job training or individuals employed in pro7 grams and activities carried out under this title

8 shall be compensated at the same rates, includ9 ing periodic increases, as trainees or employees

10 who are similarly situated in similar occupa11 tions by the same employer and who have simi12 lar skills. Such rates shall be in accordance with

13 applicable law, but in no event less than the

14 higher of the rate specified in section 6(a)(1) of

15 the Fair Labor Standards Act of 1938 (29

16 U.S.C. 206(a)(1)) or the applicable State or

17 local minimum wage law.

18 (B) CONSTRUCTION.—The reference in

19 subparagraph (A) to section 6(a)(1) of the Fair

20 Labor Standards Act of 1938—

21 (i) shall be deemed to be a reference

22 to section 6(c) of that Act (29 U.S.C.

23 206(c)) for individuals in the Common24 wealth of Puerto Rico;
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•S 1186 IS

1 (ii) shall be deemed to be a reference

2 to section 6(a)(3) (29 U.S.C. 206(a)(3)) of

3 that Act for individuals in American

4 Samoa; and

5 (iii) shall not be applicable for individ6 uals in other territorial jurisdictions in

7 which section 6 of the Fair Labor Stand8 ards Act of 1938 (29 U.S.C. 206) does not

9 apply.

10 (2) TREATMENT OF ALLOWANCES, EARNINGS,

11 AND PAYMENTS.—Allowances, earnings, and pay12 ments to individuals participating in programs and

13 activities carried out under this title shall not be

14 considered to be income for the purposes of deter15 mining eligibility for, and the amount of income

16 transfer and in-kind aid furnished under, any Fed17 eral or federally assisted program based on need,

18 other than as provided under the Social Security Act

19 (42 U.S.C. 301 et seq.).

20 (b) LABOR STANDARDS.—

21 (1) DISPLACEMENT.—

22 (A) PROHIBITION.—A participant in a pro23 gram or activity authorized under this title (re24 ferred to in this subsection as a ‘‘specified ac25 tivity’’) shall not displace (including a partial
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•S 1186 IS

1 displacement, such as a reduction in the hours

2 of nonovertime work, wages, or employment

3 benefits) any currently employed employee (as

4 of the date of the participation).

5 (B) PROHIBITION ON IMPAIRMENT OF

6 CONTRACTS.—A specified activity shall not im7 pair an existing contract for services or collec8 tive bargaining agreement, and no such activity

9 that would be inconsistent with the terms of a

10 collective bargaining agreement shall be under11 taken without the written concurrence of the

12 labor organization and employer concerned.

13 (2) OTHER PROHIBITIONS.—A participant in a

14 specified activity shall not be employed in a job—

15 (A) when any other individual is on layoff

16 from the same or any substantially equivalent

17 job with the participating employer;

18 (B) when the employer has terminated the

19 employment of any regular employee or other20 wise reduced the workforce of the employer with

21 the intention of filling the vacancy so created

22 with the participant; or

23 (C) that is created in a promotional line

24 that will infringe in any way on the promotional
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•S 1186 IS

1 opportunities of currently employed individuals

2 (as of the date of the participation).

3 (3) HEALTH AND SAFETY.—Health and safety

4 standards established under Federal and State law

5 otherwise applicable to working conditions of em6 ployees shall be equally applicable to working condi7 tions of participants engaged in specified activities.

8 To the extent that a State workers’ compensation

9 law applies, workers’ compensation shall be provided

10 to participants on the same basis as the compensa11 tion is provided to other individuals in the State in

12 similar employment.

13 (4) EMPLOYMENT CONDITIONS.—Individuals in

14 on-the-job training or individuals employed in pro15 grams and activities carried out under this title,

16 shall be provided benefits and working conditions at

17 the same level and to the same extent as other train18 ees or employees working a similar length of time

19 and doing the same type of work.

20 (5) OPPORTUNITY TO SUBMIT COMMENTS.—

21 Consistent with sections 303(d)(2) and 309(c), inter22 ested members of the public shall be provided an op23 portunity to submit comments with respect to pro24 grams and activities proposed to be funded under

25 subtitle A.
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•S 1186 IS

1 (c) GRIEVANCE PROCEDURE.—

2 (1) IN GENERAL.—Each State receiving an al3 lotment under section 302 and each grant recipient

4 under section 361 or 362 shall establish and main5 tain a procedure for grievances or complaints alleg6 ing violations of the requirements of this title from

7 participants and other interested or affected parties.

8 Such procedure shall include an opportunity for a

9 hearing and be completed within 60 days after the

10 date of the filing of the grievance or complaint.

11 (2) INVESTIGATION.—

12 (A) IN GENERAL.—The Secretary shall in13 vestigate an allegation of a violation described

14 in paragraph (1) if—

15 (i) a decision relating to such violation

16 has not been reached within 60 days after

17 the date of the filing of the grievance or

18 complaint and either party appeals the de19 cision to the Secretary; or

20 (ii) a decision relating to such viola21 tion has been reached within 60 days after

22 the date of the filing and the party to

23 which such decision is adverse appeals the

24 decision to the Secretary.
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•S 1186 IS

1 (B) ADDITIONAL REQUIREMENT.—The

2 Secretary shall make a final determination re3 lating to an appeal made under subparagraph

4 (A) no later than 120 days after the date of

5 such appeal.

6 (3) REMEDIES.—Remedies that may be im7 posed under this subsection for a violation of any re8 quirement of this title shall be limited—

9 (A) to suspension or termination of pay10 ments under this title to a person that has vio11 lated any requirement of this title;

12 (B) to prohibition of placement of a partic13 ipant with an employer that has violated any

14 requirement of this title;

15 (C) where applicable, to reinstatement of

16 an employee, payment of lost wages and bene17 fits, and reestablishment of other relevant

18 terms, conditions and privileges of employment;

19 and

20 (D) where appropriate, to other equitable

21 relief.

22 (4) CONSTRUCTION.—Nothing in paragraph (3)

23 shall be construed to prohibit a grievant or com24 plainant from pursuing a remedy authorized under
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•S 1186 IS

1 another Federal, State, or local law for a violation

2 of this title.

3 (d) RELOCATION.—

4 (1) PROHIBITION ON USE OF FUNDS TO EN5 COURAGE OR INDUCE RELOCATION.—No funds pro6 vided under this title shall be used, or proposed for

7 use, to encourage or induce the relocation of a busi8 ness or part of a business if such relocation would

9 result in a loss of employment for any employee of

10 such business at the original location and such origi11 nal location is within the United States.

12 (2) PROHIBITION ON USE OF FUNDS FOR CUS13 TOMIZED OR SKILL TRAINING AND RELATED ACTIVI14 TIES AFTER RELOCATION.—No funds provided

15 under this title for an employment and training ac16 tivity shall be used for customized or skill training,

17 on-the-job training, or company-specific assessments

18 of job applicants or employees, for any business or

19 part of a business that has relocated, until the date

20 that is 120 days after the date on which such busi21 ness commences operations at the new location, if

22 the relocation of such business or part of a business

23 results in a loss of employment for any employee of

24 such business at the original location and such origi25 nal location is within the United States.
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•S 1186 IS

1 (3) REPAYMENT.—If the Secretary determines

2 that a violation of paragraph (1) or (2) has oc3 curred, the Secretary shall require the State that

4 has violated such paragraph to repay to the United

5 States an amount equal to the amount expended in

6 violation of such paragraph.

7 (e) LIMITATION ON USE OF FUNDS.—No funds avail8 able under this title shall be used for employment generat9 ing activities, economic development activities, activities

10 for the capitalization of businesses, investment in contract

11 bidding resource centers, or similar activities. No funds

12 available under subtitle A shall be used for foreign travel.

13 SEC. 372. PROMPT ALLOCATION OF FUNDS.

14 (a) ALLOTMENTS AND ALLOCATIONS BASED ON LAT15 EST AVAILABLE DATA.—All allotments and allocations

16 under section 302, 306, or 366 shall be based on the latest

17 available data and estimates satisfactory to the Secretary.

18 All data relating to disadvantaged adults, disadvantaged

19 youth, and low-income individuals shall be based on the

20 most recent satisfactory data from the Bureau of the Cen21 sus.

22 (b) PUBLICATION IN FEDERAL REGISTER RELATING

23 TO FORMULA FUNDS.—Whenever the Secretary allots

24 funds required to be allotted under section 302 or 366,

25 the Secretary shall publish in a timely fashion in the Fed-
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•S 1186 IS

1 eral Register the proposed amount to be distributed to

2 each recipient of the funds.

3 (c) REQUIREMENT FOR FUNDS DISTRIBUTED BY

4 FORMULA.—All funds required to be allotted or allocated

5 under section 302, 306, or 366 shall be allotted or allo6 cated within 45 days after the date of enactment of the

7 Act appropriating the funds, except that, if such funds are

8 appropriated in advance as authorized by section 379(g),

9 such funds shall be allotted or allocated not later than the

10 March 31 preceding the program year for which such

11 funds are to be available for obligation.

12 (d) AVAILABILITY OF FUNDS.—Funds shall be made

13 available under section 306 to the chief elected official for

14 a local area not later than 30 days after the date the funds

15 are made available to the Governor involved, under section

16 302, or 7 days after the date the local plan for the area

17 is approved, whichever is later.

18 SEC. 373. MONITORING.

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

20 monitor all recipients of financial assistance under this

21 title to determine whether the recipients are complying

22 with the provisions of this title, including the regulations

23 issued under this title.

24 (b) INVESTIGATIONS.—The Secretary may inves25 tigate any matter the Secretary determines to be necessary
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•S 1186 IS

1 to determine the compliance of the recipients with this

2 title, including the regulations issued under this title. The

3 investigations authorized by this subsection may include

4 examining records (including making certified copies of

5 the records), questioning employees, and entering any

6 premises or onto any site in which any part of a program

7 or activity of such a recipient is conducted or in which

8 any of the records of the recipient are kept.

9 (c) ADDITIONAL REQUIREMENT.—For the purpose of

10 any investigation or hearing conducted under this title by

11 the Secretary, the provisions of section 9 of the Federal

12 Trade Commission Act (15 U.S.C. 49) (relating to the at13 tendance of witnesses and the production of documents)

14 apply to the Secretary, in the same manner and to the

15 same extent as the provisions apply to the Federal Trade

16 Commission.

17 SEC. 374. FISCAL CONTROLS; SANCTIONS.

18 (a) ESTABLISHMENT OF FISCAL CONTROLS BY

19 STATES.—

20 (1) IN GENERAL.—Each State shall establish

21 such fiscal control and fund accounting procedures

22 as may be necessary to assure the proper disbursal

23 of, and accounting for, Federal funds allocated to

24 local areas under subtitle A. Such procedures shall

25 ensure that all financial transactions carried out
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•S 1186 IS

1 under subtitle A are conducted and records main2 tained in accordance with generally accepted ac3 counting principles applicable in each State.

4 (2) REGULATIONS.—The Secretary shall pre5 scribe regulations establishing uniform cost prin6 ciples that are substantially equivalent to such prin7 ciples generally applicable to recipients of Federal

8 grant funds, and are consistent with appropriate cir9 culars of the Office of Management and Budget. At

10 a minimum, such regulations shall provide that—

11 (A) to be allowable, costs incurred under

12 this title shall—

13 (i) be necessary and reasonable for

14 proper and efficient administration of the

15 programs and activities carried out under

16 this title;

17 (ii) except for the administrative

18 funds described in section 314(c)(2), be al19 locable to the programs and activities car20 ried out under this title; and

21 (iii) not be a general expense required

22 to carry out the overall responsibilities of

23 State or local governments; and
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•S 1186 IS

1 (B) procurement transactions between

2 local partnerships and such governments shall

3 be conducted only on a cost-reimbursable basis.

4 (3) PROCUREMENT STANDARDS.—Each Gov5 ernor, in accordance with minimum requirements es6 tablished by the Secretary (after consultation with

7 the Governors) in regulations, shall prescribe and

8 implement procurement standards to ensure fiscal

9 accountability and prevent fraud and abuse in pro10 grams and activities carried out under this title.

11 (4) MONITORING.—The Governor shall conduct

12 onsite monitoring of each local area within the State

13 to ensure compliance with the procurement stand14 ards prescribed pursuant to paragraph (3).

15 (5) ACTION BY GOVERNOR.—If the Governor

16 determines that a local area is not in compliance

17 with the procurement standards prescribed pursuant

18 to paragraph (3), the Governor shall—

19 (A) require corrective action to secure

20 prompt compliance; and

21 (B) impose the sanctions provided under

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

23 required corrective action.

24 (6) CERTIFICATION.—The Governor shall, every

25 3 years, certify to the Secretary that—
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•S 1186 IS

1 (A) the State has implemented the pro2 curement standards prescribed under paragraph

3 (3);

4 (B) the State has monitored local areas to

5 ensure compliance with the procurement stand6 ards as required under paragraph (4); and

7 (C) the State has taken appropriate action

8 to secure compliance pursuant to paragraph

9 (5).

10 (7) ACTION BY THE SECRETARY.—If the Sec11 retary determines that the Governor has not fulfilled

12 the requirements of this subsection, the Secretary

13 shall—

14 (A) require corrective action to secure

15 prompt compliance; and

16 (B) impose the sanctions provided under

17 subsection (f) in the event of failure of the Gov18 ernor to take the required appropriate action to

19 secure compliance.

20 (b) SUBSTANTIAL VIOLATION.—

21 (1) ACTION BY GOVERNOR.—If, as a result of

22 a financial or compliance audit or otherwise, the

23 Governor determines that there is a substantial vio24 lation of a specific provision of this title, including

25 regulations issued under this title, and corrective ac-
341

•S 1186 IS

1 tion has not been taken, the Governor shall impose

2 a reorganization plan, which may include—

3 (A) decertifying the local partnership in4 volved in accordance with section 308(c)(3);

5 (B) prohibiting the use of providers who

6 have been identified as eligible providers of

7 workforce investment activities under chapter 3

8 of subtitle A;

9 (C) selecting an alternative entity to ad10 minister a program or activity for the local area

11 involved;

12 (D) merging the local area into 1 or more

13 other local areas; or

14 (E) making such other changes as the Sec15 retary or Governor determines to be necessary

16 to secure compliance.

17 (2) APPEAL.—The action taken by the Gov18 ernor pursuant to paragraph (1) may be appealed to

19 the Secretary, who shall make a final decision on the

20 appeal not later than 60 days after the receipt of the

21 appeal.

22 (3) ACTION BY SECRETARY.—If the Governor

23 fails to take promptly the action required under

24 paragraph (1), the Secretary shall take such action.
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•S 1186 IS

1 (c) ACCESS BY COMPTROLLER GENERAL.—For the

2 purpose of evaluating and reviewing programs and activi3 ties established or provided for by this title, the Comptrol4 ler General shall have access to and the right to copy any

5 books, accounts, records, correspondence, or other docu6 ments pertinent to such programs and activities that are

7 in the possession, custody, or control of a State, a local

8 partnership, any recipient of funds under this title, or any

9 subgrantee or contractor of such a recipient.

10 (d) REPAYMENT OF CERTAIN AMOUNTS TO THE

11 UNITED STATES.—

12 (1) IN GENERAL.—Every recipient of funds

13 under this title shall repay to the United States

14 amounts found not to have been expended in accord15 ance with this title.

16 (2) OFFSET OF REPAYMENT.—If the Secretary

17 determines that a State has expended funds made

18 available under this title in a manner contrary to the

19 requirements of this title, the Secretary may offset

20 repayment of such expenditures against any other

21 amount to which the State is or may be entitled, ex22 cept as provided under subsection (e)(1).

23 (3) REPAYMENT FROM DEDUCTION BY

24 STATE.—If the Secretary requires a State to repay

25 funds as a result of a determination that a local
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•S 1186 IS

1 area of the State has expended funds contrary to

2 the requirements of this title, the Governor of the

3 State may use an amount deducted under paragraph

4 (4) to repay the funds, except as provided under

5 subsection (e)(1).

6 (4) DEDUCTION BY STATE.—The Governor may

7 deduct an amount equal to the misexpenditure de8 scribed in paragraph (3) from subsequent program

9 year allocations to the local area from funds re10 served for the administrative costs of the local pro11 grams involved, as appropriate.

12 (5) LIMITATIONS.—A deduction made by a

13 State as described in paragraph (4) shall not be

14 made until such time as the Governor has taken ap15 propriate corrective action to ensure full compliance

16 within such local area with regard to appropriate ex17 penditures of funds under this title.

18 (e) REPAYMENT OF AMOUNTS.—

19 (1) IN GENERAL.—Each recipient of funds

20 under this title shall be liable to repay the amounts

21 described in subsection (d)(1), from funds other

22 than funds received under this title, upon a deter23 mination by the Secretary that the misexpenditure

24 of funds was due to willful disregard of the require25 ments of this title, gross negligence, failure to ob-
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•S 1186 IS

1 serve accepted standards of administration, or a pat2 tern of misexpenditure as described in paragraphs

3 (2) and (3) of subsection (d). No such determination

4 shall be made under this subsection or subsection

5 (d) until notice and opportunity for a fair hearing

6 has been given to the recipient.

7 (2) FACTORS IN IMPOSING SANCTIONS.—In de8 termining whether to impose any sanction author9 ized by this section against a recipient for violations

10 by a subgrantee or contractor of such recipient

11 under this title (including the regulations issued

12 under this title), the Secretary shall first determine

13 whether such recipient has adequately demonstrated

14 that the recipient has—

15 (A) established and adhered to an appro16 priate system for the award and monitoring of

17 grants and contracts with subgrantees and con18 tractors that contains acceptable standards for

19 ensuring accountability;

20 (B) entered into a written grant agreement

21 or contract with such subgrantee or contractor

22 that established clear goals and obligations in

23 unambiguous terms;

24 (C) acted with due diligence to monitor the

25 implementation of the grant agreement or con-
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•S 1186 IS

1 tract, including the carrying out of the appro2 priate monitoring activities (including audits) at

3 reasonable intervals; and

4 (D) taken prompt and appropriate correc5 tive action upon becoming aware of any evi6 dence of a violation of this title, including regu7 lations issued under this title, by such sub8 grantee or contractor.

9 (3) WAIVER.—If the Secretary determines that

10 the recipient has demonstrated substantial compli11 ance with the requirements of paragraph (2), the

12 Secretary may waive the imposition of sanctions au13 thorized by this section upon such recipient. The

14 Secretary is authorized to impose any sanction con15 sistent with the provisions of this title and any ap16 plicable Federal or State law directly against any

17 subgrantee or contractor for violation of this title,

18 including regulations issued under this title.

19 (f) IMMEDIATE TERMINATION OR SUSPENSION OF

20 ASSISTANCE IN EMERGENCY SITUATIONS.—In emergency

21 situations, if the Secretary determines it is necessary to

22 protect the integrity of the funds or ensure the proper op23 eration of the program or activity involved, the Secretary

24 may immediately terminate or suspend financial assist25 ance, in whole or in part, to the recipient if the recipient
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•S 1186 IS

1 is given prompt notice and the opportunity for a subse2 quent hearing within 30 days after such termination or

3 suspension. The Secretary shall not delegate any of the

4 functions or authority specified in this subsection, other

5 than to an officer whose appointment is required to be

6 made by and with the advice and consent of the Senate.

7 (g) DISCRIMINATION AGAINST PARTICIPANTS.—If

8 the Secretary determines that any recipient of funds under

9 this title has discharged or in any other manner discrimi10 nated in violation of section 378 against, a participant or

11 any other individual in connection with the administration

12 of the program or activity involved, or any individual be13 cause such individual has filed any complaint or instituted

14 or caused to be instituted any proceeding under or related

15 to this title, or has testified or is about to testify in any

16 such proceeding or investigation under or related to this

17 title, or otherwise unlawfully denied to any individual a

18 benefit to which that individual is entitled under the provi19 sions of this title, including regulations issued under this

20 title, the Secretary shall, within 30 days after the date

21 of the determination, take such action or order such cor22 rective measures, as may be necessary, with respect to the

23 recipient or the aggrieved individual.
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•S 1186 IS

1 (h) REMEDIES.—The remedies described in this sec2 tion shall not be construed to be the exclusive remedies

3 available for violations described in this section.

4 SEC. 375. REPORTS; RECORDKEEPING; INVESTIGATIONS.

5 (a) REPORTS.—

6 (1) IN GENERAL.—Recipients of funds under

7 this title shall keep records that are sufficient to

8 permit the preparation of reports required by this

9 title and to permit the tracing of funds to a level of

10 expenditure adequate to ensure that the funds have

11 not been spent unlawfully.

12 (2) SUBMISSION TO THE SECRETARY.—Every

13 such recipient shall maintain such records and sub14 mit such reports, in such form and containing such

15 information, as the Secretary may require regarding

16 the performance of programs and activities carried

17 out under this title. Such records and reports shall

18 be submitted to the Secretary but shall not be re19 quired to be submitted more than once each quarter

20 unless specifically requested by Congress or a com21 mittee of Congress.

22 (3) MAINTENANCE OF STANDARDIZED

23 RECORDS.—In order to allow for the preparation of

24 the reports required under subsection (c), such re25 cipients shall maintain standardized records for all
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•S 1186 IS

1 individual participants and provide to the Secretary

2 a sufficient number of such records to provide for an

3 adequate analysis of the records.

4 (4) AVAILABILITY TO THE PUBLIC.—

5 (A) IN GENERAL.—Except as provided in

6 subparagraph (B), records maintained by such

7 recipients pursuant to this subsection shall be

8 made available to the public upon request.

9 (B) EXCEPTION.—Subparagraph (A) shall

10 not apply to—

11 (i) information, the disclosure of

12 which would constitute a clearly unwar13 ranted invasion of personal privacy; and

14 (ii) trade secrets, or commercial or fi15 nancial information, that is obtained from

16 a person and privileged or confidential.

17 (C) FEES TO RECOVER COSTS.—Such re18 cipients may charge fees sufficient to recover

19 costs applicable to the processing of requests

20 for records under subparagraph (A).

21 (b) INVESTIGATIONS OF USE OF FUNDS.—

22 (1) IN GENERAL.—

23 (A) SECRETARY.—In order to evaluate

24 compliance with the provisions of this title, the

25 Secretary shall conduct, in several States, in
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•S 1186 IS

1 each fiscal year, investigations of the use of

2 funds received by recipients under this title.

3 (B) COMPTROLLER GENERAL OF THE

4 UNITED STATES.—In order to ensure compli5 ance with the provisions of this title, the Comp6 troller General of the United States may con7 duct investigations of the use of funds received

8 under this title by any recipient.

9 (2) PROHIBITION.—In conducting any inves10 tigation under this title, the Secretary or the Comp11 troller General of the United States may not request

12 the compilation of any information that the recipient

13 is not otherwise required to compile and that is not

14 readily available to such recipient.

15 (3) AUDITS.—

16 (A) IN GENERAL.—In carrying out any

17 audit under this title (other than any initial

18 audit survey or any audit investigating possible

19 criminal or fraudulent conduct), either directly

20 or through grant or contract, the Secretary, the

21 Inspector General of the Department of Labor,

22 or the Comptroller General of the United States

23 shall furnish to the State, recipient, or other

24 entity to be audited, advance notification of the

25 overall objectives and purposes of the audit, and
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•S 1186 IS

1 any extensive recordkeeping or data require2 ments to be met, not later than 14 days (or as

3 soon as practicable), prior to the commence4 ment of the audit.

5 (B) NOTIFICATION REQUIREMENT.—If the

6 scope, objectives, or purposes of the audit

7 change substantially during the course of the

8 audit, the entity being audited shall be notified

9 of the change as soon as practicable.

10 (C) ADDITIONAL REQUIREMENT.—The re11 ports on the results of such audits shall cite the

12 law, regulation, policy, or other criteria applica13 ble to any finding contained in the reports.

14 (D) RULE OF CONSTRUCTION.—Nothing

15 contained in this title shall be construed so as

16 to be inconsistent with the Inspector General

17 Act of 1978 (5 U.S.C. App.) or government au18 diting standards issued by the Comptroller Gen19 eral of the United States.

20 (c) ACCESSIBILITY OF REPORTS.—Each State, each

21 local partnership, and each recipient (other than a sub22 recipient, subgrantee, or contractor of a recipient) receiv23 ing funds under this title shall—
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•S 1186 IS

1 (1) make readily accessible such reports con2 cerning its operations and expenditures as shall be

3 prescribed by the Secretary;

4 (2) prescribe and maintain comparable manage5 ment information systems, in accordance with guide6 lines that shall be prescribed by the Secretary, de7 signed to facilitate the uniform compilation, cross

8 tabulation, and analysis of programmatic, partici9 pant, and financial data, on statewide, local area,

10 and other appropriate bases, necessary for reporting,

11 monitoring, and evaluating purposes, including data

12 necessary to comply with section 378; and

13 (3) monitor the performance of providers in

14 complying with the terms of grants, contracts, or

15 other agreements made pursuant to this title.

16 (d) INFORMATION TO BE INCLUDED IN REPORTS.—

17 (1) IN GENERAL.—The reports required in sub18 section (c) shall include information regarding pro19 grams and activities carried out under this title per20 taining to—

21 (A) the relevant demographic characteris22 tics (including race, ethnicity, sex, and age) and

23 other related information regarding partici24 pants;
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•S 1186 IS

1 (B) the programs and activities in which

2 participants are enrolled, and the length of time

3 that participants are engaged in such programs

4 and activities;

5 (C) outcomes of the programs and activi6 ties for participants, including the occupations

7 of participants, and placement for participants

8 in nontraditional employment;

9 (D) specified costs of the programs and ac10 tivities; and

11 (E) information necessary to prepare re12 ports to comply with section 378.

13 (2) ADDITIONAL REQUIREMENT.—The Sec14 retary shall ensure that all elements of the informa15 tion required for the reports described in paragraph

16 (1) are defined and reported uniformly.

17 (e) RETENTION OF RECORDS.—The Governor of a

18 State that receives funds under this title shall ensure that

19 requirements are established for retention of all records

20 of the State pertinent to all grants awarded, and contracts

21 and agreements entered into, under this title, including

22 financial, statistical, property, and participant records and

23 supporting documentation. For funds allotted to a State

24 under this title for any program year, the State shall re25 tain the records for 2 subsequent program years. The
353

•S 1186 IS

1 State shall retain records for nonexpendable property that

2 is used to carry out this title for a period of 3 years after

3 final disposition of the property.

4 (f) QUARTERLY FINANCIAL REPORTS.—

5 (1) IN GENERAL.—Each local partnership in

6 the State shall submit quarterly financial reports to

7 the Governor with respect to programs and activities

8 carried out under this title. Such reports shall in9 clude information identifying all program and activ10 ity costs by cost category in accordance with gen11 erally accepted accounting principles and by year of

12 the appropriation involved.

13 (2) ADDITIONAL REQUIREMENT.—Each State

14 shall submit to the Secretary, on a quarterly basis,

15 a summary of the reports submitted to the Governor

16 pursuant to paragraph (1).

17 (g) MAINTENANCE OF ADDITIONAL RECORDS.—

18 Each State and local partnership shall maintain records

19 with respect to programs and activities carried out under

20 this title that identify—

21 (1) any income or profits earned, including such

22 income or profits earned by subrecipients; and

23 (2) any costs incurred (such as stand-in costs)

24 that are otherwise allowable except for funding limi25 tations.
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1 (h) COST CATEGORIES.—In requiring entities to

2 maintain records of costs by category under this title, the

3 Secretary shall require only that the costs be categorized

4 as administrative or programmatic costs.

5 SEC. 376. ADMINISTRATIVE ADJUDICATION.

6 (a) IN GENERAL.—Whenever any applicant for finan7 cial assistance under this title is dissatisfied because the

8 Secretary has made a determination not to award financial

9 assistance in whole or in part to such applicant, the appli10 cant may request a hearing before an administrative law

11 judge of the Department of Labor. A similar hearing may

12 also be requested by any recipient for whom a corrective

13 action has been required or a sanction has been imposed

14 by the Secretary under section 374. Except to the extent

15 provided for in section 371(c) or 378, all other disputes

16 arising under this title relating to the manner in which

17 the recipient carries out a program or activity under this

18 title shall be adjudicated under grievance procedures es19 tablished by the recipient or under applicable law other

20 than this title.

21 (b) APPEAL.—The decision of the administrative law

22 judge shall constitute final action by the Secretary unless,

23 within 20 days after receipt of the decision of the adminis24 trative law judge, a party dissatisfied with the decision or

25 any part of the decision has filed exceptions with the Sec-
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•S 1186 IS

1 retary specifically identifying the procedure, fact, law, or

2 policy to which exception is taken. Any exception not spe3 cifically urged shall be deemed to have been waived. After

4 the 20-day period the decision of the administrative law

5 judge shall become the final decision of the Secretary un6 less the Secretary, within 30 days after such filing, has

7 notified the parties that the case involved has been accept8 ed for review.

9 (c) TIME LIMIT.—Any case accepted for review by

10 the Secretary under subsection (b) shall be decided within

11 180 days after such acceptance. If the case is not decided

12 within the 180-day period, the decision of the administra13 tive law judge shall become the final decision of the Sec14 retary at the end of the 180-day period.

15 (d) ADDITIONAL REQUIREMENT.—The provisions of

16 section 377 shall apply to any final action of the Secretary

17 under this section.

18 SEC. 377. JUDICIAL REVIEW.

19 (a) REVIEW.—

20 (1) PETITION.—With respect to any final order

21 by the Secretary under section 376 by which the

22 Secretary awards, declines to award, or only condi23 tionally awards, financial assistance under this title,

24 or any final order of the Secretary under section 376

25 with respect to a corrective action or sanction im-
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1 posed under section 374, any party to a proceeding

2 which resulted in such final order may obtain review

3 of such final order in the United States Court of Ap4 peals having jurisdiction over the applicant or recipi5 ent of funds involved, by filing a review petition

6 within 30 days after the date of issuance of such

7 final order.

8 (2) ACTION ON PETITION.—The clerk of the

9 court shall transmit a copy of the review petition to

10 the Secretary who shall file the record on which the

11 final order was entered as provided in section 2112

12 of title 28, United States Code. The filing of a re13 view petition shall not stay the order of the Sec14 retary, unless the court orders a stay. Petitions filed

15 under this subsection shall be heard expeditiously, if

16 possible within 10 days after the date of filing of a

17 reply to the petition.

18 (3) STANDARD AND SCOPE OF REVIEW.—No

19 objection to the order of the Secretary shall be con20 sidered by the court unless the objection was specifi21 cally urged, in a timely manner, before the Sec22 retary. The review shall be limited to questions of

23 law and the findings of fact of the Secretary shall

24 be conclusive if supported by substantial evidence.
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1 (b) JUDGMENT.—The court shall have jurisdiction to

2 make and enter a decree affirming, modifying, or setting

3 aside the order of the Secretary in whole or in part. The

4 judgment of the court regarding the order shall be final,

5 subject to certiorari review by the Supreme Court as pro6 vided in section 1254(1) of title 28, United States Code.

7 SEC. 378. NONDISCRIMINATION.

8 (a) PROHIBITED DISCRIMINATION.—

9 (1) PROHIBITION ON DISCRIMINATION IN FED10 ERAL PROGRAMS AND ACTIVITIES.—For the purpose

11 of applying the prohibitions against discrimination

12 on the basis of age under the Age Discrimination

13 Act of 1975 (42 U.S.C. 6101 et seq.), on the basis

14 of disability under section 504 of the Rehabilitation

15 Act of 1973 (29 U.S.C. 794), on the basis of sex

16 under title IX of the Education Amendments of

17 1972 (20 U.S.C. 1681 et seq.), or on the basis of

18 race, color, or national origin under title VI of the

19 Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.),

20 programs and activities funded in whole or in part

21 under this title shall be considered to be programs

22 and activities receiving Federal financial assistance,

23 and education programs and activities receiving Fed24 eral financial assistance.
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1 (2) PROHIBITION OF DISCRIMINATION REGARD2 ING PARTICIPATION, BENEFITS, AND EMPLOY3 MENT.—No individual shall be excluded from par4 ticipation in, denied the benefits of, subjected to dis5 crimination under, or denied employment in the ad6 ministration of or in connection with, any such pro7 gram or activity because of race, color, religion, sex,

8 national origin, age, disability, or political affiliation

9 or belief.

10 (3) PROHIBITION ON ASSISTANCE FOR FACILI11 TIES FOR SECTARIAN INSTRUCTION OR RELIGIOUS

12 WORSHIP.—Participants shall not be employed under

13 this title to carry out the construction, operation, or

14 maintenance of any part of any facility that is used

15 or to be used for sectarian instruction or as a place

16 for religious worship.

17 (4) PROHIBITION ON DISCRIMINATION ON BASIS

18 OF PARTICIPANT STATUS.—No person may discrimi19 nate against an individual who is a participant in a

20 program or activity that receives funds under this

21 title, with respect to the terms and conditions affect22 ing, or rights provided to, the individual, solely be23 cause of the status of the individual as a participant,

24 in carrying out any endeavor that involves—
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•S 1186 IS

1 (A) participants in programs and activities

2 that receive funding under this title; and

3 (B) persons who receive no assistance

4 under this title.

5 (5) PROHIBITION ON DISCRIMINATION AGAINST

6 CERTAIN NONCITIZENS.—Participation in programs

7 and activities or receiving funds under this title shall

8 be available to citizens and nationals of the United

9 States, lawfully admitted permanent resident aliens,

10 refugees, asylees, and parolees, other aliens lawfully

11 present in the United States, and other individuals

12 authorized by the Attorney General to work in the

13 United States.

14 (b) ACTION OF SECRETARY.—Whenever the Sec15 retary finds that a State or other recipient of funds under

16 this title has failed to comply with a provision of law re17 ferred to in subsection (a)(1), or with paragraph (2), (3),

18 (4), or (5) of subsection (a), including an applicable regu19 lation prescribed to carry out such provision or paragraph,

20 the Secretary shall notify such State or recipient and shall

21 request that the State or recipient comply. If within a rea22 sonable period of time, not to exceed 60 days, the State

23 or recipient fails or refuses to comply, the Secretary

24 may—
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•S 1186 IS

1 (1) refer the matter to the Attorney General

2 with a recommendation that an appropriate civil ac3 tion be instituted;

4 (2) exercise the powers and functions provided

5 to the head of a Federal department or agency

6 under the Age Discrimination Act of 1975, title V

7 of the Rehabilitation Act of 1973 (29 U.S.C. 791 et

8 seq.), title IX of the Education Amendments of

9 1972, or title VI of the Civil Rights Act of 1964, as

10 may be applicable; or

11 (3) take such other action as may be provided

12 by law.

13 (c) ACTION OF ATTORNEY GENERAL.—When a mat14 ter is referred to the Attorney General pursuant to sub15 section (b)(1), or whenever the Attorney General has rea16 son to believe that a State or other recipient of funds

17 under this title is engaged in a pattern or practice of dis18 crimination in violation of a provision of law referred to

19 in subsection (a)(1) or in violation of paragraph (2), (3),

20 (4), or (5) of subsection (a), the Attorney General may

21 bring a civil action in any appropriate district court of the

22 United States for such relief as may be appropriate, in23 cluding injunctive relief.

24 (d) JOB CORPS MEMBERS.—For purposes of this sec25 tion, Job Corps members shall be considered as the ulti-
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1 mate beneficiaries of an education program or activity re2 ceiving Federal financial assistance.

3 SEC. 379. ADMINISTRATIVE PROVISIONS.

4 (a) IN GENERAL.—The Secretary may, in accordance

5 with chapter 5 of title 5, United States Code, prescribe

6 rules and regulations to carry out this title to the extent

7 necessary to implement, administer, and ensure compli8 ance with the requirements of this title. Such rules and

9 regulations may include provisions making adjustments

10 authorized by section 6504 of title 31, United States Code.

11 All such rules and regulations shall be published in the

12 Federal Register at least 30 days prior to their effective

13 dates. Copies of each such rule or regulation shall be

14 transmitted to the appropriate committees of Congress on

15 the date of such publication and shall contain, with respect

16 to each material provision of such rule or regulation, a

17 citation to the particular substantive section of law that

18 is the basis for the provision.

19 (b) ACQUISITION OF CERTAIN PROPERTY AND SERV20 ICES.—The Secretary is authorized, in carrying out this

21 title, to accept, purchase, or lease in the name of the De22 partment of Labor, and employ or dispose of in further23 ance of the purposes of this title, any money or property,

24 real, personal, or mixed, tangible or intangible, received

25 by gift, devise, bequest, or otherwise, and to accept vol-
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1 untary and uncompensated services notwithstanding the

2 provisions of section 1342 of title 31, United States Code.

3 (c) AUTHORITY TO ENTER INTO CERTAIN AGREE4 MENTS AND TO MAKE CERTAIN EXPENDITURES.—The

5 Secretary may make such grants, enter into such con6 tracts or agreements, establish such procedures, and make

7 such payments, in installments and in advance or by way

8 of reimbursement, or otherwise allocate or expend such

9 funds under this title, as may be necessary to carry out

10 this title, including making expenditures for construction,

11 repairs, and capital improvements, and including making

12 necessary adjustments in payments on account of over13 payments or underpayments.

14 (d) ANNUAL REPORT.—The Secretary shall prepare

15 and submit to Congress an annual report regarding the

16 programs and activities carried out under this title. The

17 Secretary shall include in such report—

18 (1) a summary of the achievements, failures,

19 and problems of the programs and activities in meet20 ing the objectives of this title;

21 (2) a summary of major findings from research,

22 evaluations, pilot projects, and experiments con23 ducted under this title in the fiscal year prior to the

24 submission of the report;
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•S 1186 IS

1 (3) recommendations for modifications in the

2 programs and activities based on analysis of such

3 findings; and

4 (4) such other recommendations for legislative

5 or administrative action as the Secretary determines

6 to be appropriate.

7 (e) UTILIZATION OF SERVICES AND FACILITIES.—

8 The Secretary is authorized, in carrying out this title,

9 under the same procedures as are applicable under sub10 section (c) or to the extent permitted by law other than

11 this title, to accept and use the services and facilities of

12 departments, agencies, and establishments of the United

13 States. The Secretary is also authorized, in carrying out

14 this title, to accept and use the services and facilities of

15 the agencies of any State or political subdivision of a

16 State, with the consent of the State or political subdivi17 sion.

18 (f) OBLIGATIONAL AUTHORITY.—Notwithstanding

19 any other provision of this title, the Secretary shall have

20 no authority to enter into contracts, grant agreements, or

21 other financial assistance agreements under this title ex22 cept to such extent and in such amounts as are provided

23 in advance in appropriations Acts.

24 (g) PROGRAM YEAR.—
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1 (1) IN GENERAL.—Appropriations for any fiscal

2 year for programs and activities carried out under

3 this title shall be available for obligation only on the

4 basis of a program year. The program year shall

5 begin on July 1 in the fiscal year for which the ap6 propriation is made.

7 (2) AVAILABILITY.—Funds obligated for any

8 program year for a program or activity carried out

9 under this title may be expended by each State re10 ceiving such funds during that program year and the

11 2 succeeding program years. Funds received by local

12 areas from States under this title during a program

13 year may be expended during that program year and

14 the succeeding program year. No amount of the

15 funds described in this paragraph shall be

16 deobligated on account of a rate of expenditure that

17 is consistent with a State plan, an operating plan

18 described in section 341, or a plan, grant agreement,

19 contract, application, or other agreement described

20 in subtitle C, as appropriate.

21 (h) ENFORCEMENT OF MILITARY SELECTIVE SERV22 ICE ACT.—The Secretary shall ensure that each individual

23 participating in any program or activity established under

24 this title, or receiving any assistance or benefit under this

25 title, has not violated section 3 of the Military Selective
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•S 1186 IS

1 Service Act (50 U.S.C. App. 453) by not presenting and

2 submitting to registration as required pursuant to such

3 section. The Director of the Selective Service System shall

4 cooperate with the Secretary to enable the Secretary to

5 carry out this subsection.

6 (i) WAIVERS.—

7 (1) SPECIAL RULE.—With respect to a State

8 that has been granted a waiver under the provisions

9 relating to training and employment services of the

10 Department of Labor in title I of the Departments

11 of Labor, Health and Human Services, and Edu12 cation, and Related Agencies Appropriations Act,

13 1997 (Public Law 104–208; 110 Stat. 3009–234),

14 the authority provided under such waiver shall con15 tinue in effect and apply, and include a waiver of the

16 related provisions of subtitle A and this subtitle, for

17 the duration of the initial waiver.

18 (2) GENERAL AUTHORITY.—Notwithstanding

19 any other provision of law, the Secretary may waive

20 for a State, or a local area in a State, pursuant to

21 a request submitted by the Governor of the State (in

22 consultation with appropriate local elected officials)

23 that meets the requirements of paragraph (3)—

24 (A) any of the statutory or regulatory re25 quirements of subtitle A or this subtitle (except
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•S 1186 IS

1 for requirements relating to wage and labor

2 standards, worker rights, participation and pro3 tection of participants, grievance procedures

4 and judicial review, nondiscrimination, alloca5 tion of funds to local areas, eligibility of provid6 ers or participants, and the establishment and

7 functions of local areas); and

8 (B) any of the statutory or regulatory re9 quirements of sections 8 through 10 of the

10 Wagner-Peyser Act (29 U.S.C. 49g through

11 49i) (excluding requirements relating to the

12 provision of services to unemployment insurance

13 claimants (including veterans) but including re14 porting requirements relating to such provision

15 of services, and excluding requirements relating

16 to universal access to basic labor exchange serv17 ices without cost to jobseekers).

18 (3) REQUESTS.—A Governor requesting a waiv19 er under paragraph (2) shall submit a plan to the

20 Secretary to improve the statewide workforce invest21 ment system that—

22 (A) identifies the statutory or regulatory

23 requirements that are requested to be waived

24 and the goals that the State or local area in the
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•S 1186 IS

1 State, as appropriate, intends to achieve as a

2 result of the waiver;

3 (B) describes the actions that the State or

4 local area, as appropriate, has undertaken to

5 remove State or local statutory or regulatory

6 barriers;

7 (C) describes the goals of the waiver and

8 the expected programmatic outcomes if the re9 quest is granted;

10 (D) describes the individuals impacted by

11 the waiver; and

12 (E) describes the process used to monitor

13 the progress in implementing such a waiver,

14 and the process by which notice and an oppor15 tunity to comment on such request has been

16 provided to the organizations identified in sec17 tion 308(b)(2).

18 (4) CONDITIONS.—Not later than 90 days after

19 the date of the original submission of a request for

20 a waiver under paragraph (2), the Secretary shall

21 provide a waiver under this subsection if and only to

22 the extent that—

23 (A) the Secretary determines that the re24 quirements requested to be waived impede the

25 ability of the State or local area, as appro-
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•S 1186 IS

1 priate, to implement the plan described in para2 graph (3); and

3 (B) the State has executed a memorandum

4 of understanding with the Secretary requiring

5 such State to meet, or ensure that the local

6 area meets, agreed-upon outcomes and to im7 plement other appropriate measures to ensure

8 accountability.

9 SEC. 380. STATE LEGISLATIVE AUTHORITY.

10 (a) AUTHORITY OF STATE LEGISLATURE.—Nothing

11 in this title shall be interpreted to preclude the enactment

12 of State legislation providing for the implementation, con13 sistent with the provisions of this title, of the activities

14 assisted under this title. Any funds received by a State

15 under this title shall be subject to appropriation by the

16 State legislature, consistent with the terms and conditions

17 required under this title.

18 (b) INTERSTATE COMPACTS AND COOPERATIVE

19 AGREEMENTS.—In the event that compliance with provi20 sions of this title would be enhanced by compacts and co21 operative agreements between States, the consent of Con22 gress is given to States to enter into such compacts and

23 agreements to facilitate such compliance, subject to the

24 approval of the Secretary.
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1 Subtitle E—Repeals and

2 Conforming Amendments

3 SEC. 391. REPEALS.

4 (a) GENERAL IMMEDIATE REPEALS.—The following

5 provisions are repealed:

6 (1) Section 204 of the Immigration Reform and

7 Control Act of 1986 (8 U.S.C. 1255a note).

8 (2) Title II of Public Law 95–250 (92 Stat.

9 172).

10 (3) The Displaced Homemakers Self-Sufficiency

11 Assistance Act (29 U.S.C. 2301 et seq.).

12 (4) Section 211 of the Appalachian Regional

13 Development Act of 1965 (40 U.S.C. App. 211).

14 (5) Subtitle C of title VII of the Stewart B.

15 McKinney Homeless Assistance Act (42 U.S.C.

16 11441 et seq.), except section 738 of such title (42

17 U.S.C. 11448).

18 (6) Subchapter I of chapter 421 of title 49,

19 United States Code.

20 (b) SUBSEQUENT REPEALS.—The following provi21 sions are repealed:

22 (1) The Job Training Partnership Act (29

23 U.S.C. 1501 et seq.).

24 (2) Title VII of the Stewart B. McKinney

25 Homeless Assistance Act (42 U.S.C. 11421 et seq.),
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1 except subtitle B and section 738 of such title (42

2 U.S.C. 11431 et seq. and 11448).

3 SEC. 392. CONFORMING AMENDMENTS.

4 (a) PREPARATION.—After consultation with the ap5 propriate committees of Congress and the Director of the

6 Office of Management and Budget, the Secretary shall

7 prepare recommended legislation containing technical and

8 conforming amendments to reflect the changes made by

9 this subtitle.

10 (b) SUBMISSION TO CONGRESS.—Not later than 6

11 months after the date of enactment of this Act, the Sec12 retary shall submit to Congress the recommended legisla13 tion referred to under paragraph (1).

14 SEC. 393. EFFECTIVE DATES.

15 (a) IMMEDIATE REPEALS.—The repeals made by sec16 tion 391(a) shall take effect on the date of the enactment

17 of this Act.

18 (b) SUBSEQUENT REPEALS.—The repeals made by

19 section 391(b) shall take effect on July 1, 1999.

20 TITLE IV—WORKFORCE INVEST21 MENT-RELATED ACTIVITIES

22 Subtitle A—Wagner-Peyser Act

23 SEC. 401. DEFINITIONS.

24 Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a)

25 is amended—
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1 (1) in paragraph (1)—

2 (A) by striking ‘‘or officials’’; and

3 (B) by striking ‘‘Job Training Partnership

4 Act’’ and inserting ‘‘Workforce Investment

5 Partnership Act of 1997’’;

6 (2) by striking paragraphs (2) and (4);

7 (3) by redesignating paragraphs (3) and (5) as

8 paragraphs (5) and (6), respectively;

9 (4) by inserting after paragraph (1) the follow10 ing:

11 ‘‘(2) the term ‘local workforce investment area’

12 means a local workforce investment area designated

13 under section 307 of the Workforce Investment

14 Partnership Act of 1997;

15 ‘‘(3) the term ‘local workforce investment part16 nership’ means a local workforce investment partner17 ship established under section 308 of the Workforce

18 Investment Partnership Act of 1997;

19 ‘‘(4) the term ‘one-stop customer service sys20 tem’ means a one-stop customer service system es21 tablished under section 315(b) of the Workforce In22 vestment Partnership Act of 1997;’’; and

23 (5) in paragraph (5) (as redesignated in para24 graph (3)), by striking the semicolon and inserting

25 ‘‘; and’’.
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1 SEC. 402. FUNCTIONS.

2 (a) IN GENERAL.—Section 3(a) of the Wagner3 Peyser Act (29 U.S.C. 49b(a)) is amended to read as fol4 lows:

5 ‘‘(a) The Secretary shall—

6 ‘‘(1) assist in the coordination and development

7 of a nationwide system of public labor exchange

8 services, provided as part of the one-stop customer

9 service systems of the States;

10 ‘‘(2) assist in the development of continuous

11 improvement models for such nationwide system that

12 ensure private sector satisfaction with the system

13 and meet the demands of jobseekers relating to the

14 system; and

15 ‘‘(3) ensure, for individuals otherwise eligible to

16 receive unemployment compensation, the provision of

17 reemployment services and other activities in which

18 the individuals are required to participate to receive

19 the compensation.’’.

20 (b) CONFORMING AMENDMENTS.—Section 508(b)(1)

21 of the Unemployment Compensation Amendments of 1976

22 (42 U.S.C. 603a(b)(1)) is amended—

23 (1) by striking ‘‘the third sentence of section

24 3(a)’’ and inserting ‘‘section 3(b)’’; and

25 (2) by striking ‘‘49b(a)’’ and inserting

26 ‘‘49b(b))’’.
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1 SEC. 403. DESIGNATION OF STATE AGENCIES.

2 Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c)

3 is amended—

4 (1) by striking ‘‘, through its legislature,’’ and

5 inserting ‘‘, pursuant to State statute,’’;

6 (2) by inserting after ‘‘the provisions of this Act

7 and’’ the following: ‘‘, in accordance with such State

8 statute, the Governor shall’’; and

9 (3) by striking ‘‘United States Employment

10 Service’’ and inserting ‘‘Secretary’’.

11 SEC. 404. APPROPRIATIONS.

12 Section 5(c) of the Wagner-Peyser Act (29 U.S.C.

13 49d(c)) is amended by striking paragraph (3).

14 SEC. 405. DISPOSITION OF ALLOTTED FUNDS.

15 Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f)

16 is amended—

17 (1) in subsection (b)(2), by striking ‘‘private in18 dustry council’’ and inserting ‘‘local workforce in19 vestment partnership’’;

20 (2) in subsection (c)(2), by striking ‘‘any pro21 gram under’’ and all that follows and inserting ‘‘any

22 workforce investment activity carried out under the

23 Workforce Investment Partnership Act of 1997.’’;

24 (3) in subsection (d)—

25 (A) by striking ‘‘United States Employ26 ment Service’’ and inserting ‘‘Secretary’’; and
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1 (B) by striking ‘‘Job Training Partnership

2 Act’’ and inserting ‘‘Workforce Investment

3 Partnership Act of 1997’’; and

4 (4) by adding at the end the following:

5 ‘‘(e) All job search, placement, recruitment, labor

6 market information, and other labor exchange services au7 thorized under subsection (a) shall be provided as part of

8 the one-stop customer service system established by the

9 State.’’.

10 SEC. 406. STATE PLANS.

11 Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g)

12 is amended—

13 (1) in subsection (a) to read as follows:

14 ‘‘(a) Any State desiring to receive assistance under

15 this Act shall submit to the Secretary, as part of the State

16 plan submitted under section 304 of the Workforce Invest17 ment Partnership Act of 1997, detailed plans for carrying

18 out the provisions of this Act within such State.’’;

19 (2) by striking subsections (b), (c), and (e);

20 (3) by redesignating subsection (d) as sub21 section (b); and

22 (4) by adding at the end the following:

23 ‘‘(c) The part of the State plan described in sub24 section (a) shall include the information described in para-
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•S 1186 IS

1 graphs (8) and (16) of section 304(b) of the Workforce

2 Investment Partnership Act of 1997.’’.

3 SEC. 407. REPEAL OF FEDERAL ADVISORY COUNCIL.

4 Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j)

5 is hereby repealed.

6 SEC. 408. REGULATIONS.

7 Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k)

8 is amended by striking ‘‘The Director, with the approval

9 of the Secretary of Labor,’’ and inserting ‘‘The Sec10 retary’’.

11 SEC. 409. LABOR MARKET INFORMATION.

12 The Wagner-Peyser Act is amended—

13 (1) by redesignating section 15 (29 U.S.C. 49

14 note) as section 16; and

15 (2) by inserting after section 14 (29 U.S.C.

16 49l–1) the following:

17 ‘‘SEC. 15. LABOR MARKET INFORMATION.

18 ‘‘(a) SYSTEM CONTENT.—

19 ‘‘(1) IN GENERAL.—The Secretary, in accord20 ance with the provisions of this section, shall oversee

21 the development, maintenance, and continuous im22 provement of a system of labor market information

23 that includes—

24 ‘‘(A) statistical data from cooperative sta25 tistical survey and projection programs and
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1 data from administrative reporting systems

2 that, taken together, enumerate, estimate, and

3 project the employment opportunities at the na4 tional, State, and local levels in a timely man5 ner, including data on—

6 ‘‘(i) employment and unemployment

7 status of the national, State, and local

8 populations, as such data are developed by

9 the Bureau of Labor Statistics and other

10 sources;

11 ‘‘(ii) industrial distribution of occupa12 tions, as well as current and projected em13 ployment opportunities and skill trends by

14 occupation and industry, with particular

15 attention paid to State and local employ16 ment opportunities;

17 ‘‘(iii) data on the incidence of, indus18 trial and geographical location of, and

19 number of workers displaced by, perma20 nent layoffs and plant closings; and

21 ‘‘(iv) employee information maintained

22 in a longitudinal manner and collected (as

23 of the date of enactment of the Workforce

24 Investment Partnership Act of 1997) by

25 States;
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1 ‘‘(B) State and local employment informa2 tion, and other appropriate statistical data re3 lated to labor market dynamics (compiled for

4 States and localities with technical assistance

5 provided by the Secretary), which shall—

6 ‘‘(i) be current and comprehensive, as

7 of the date used;

8 ‘‘(ii) assist individuals to make in9 formed choices relating to employment and

10 training; and

11 ‘‘(iii) assist employers to locate, iden12 tify skill traits of, and train individuals

13 who are seeking employment and training;

14 ‘‘(C) technical standards (which the Sec15 retary shall make publicly available) for data

16 and information described in subparagraphs (A)

17 and (B) that, at a minimum, meet the criteria

18 of chapter 35 of title 44, United States Code;

19 ‘‘(D) procedures to ensure compatibility

20 and additivity of the data and information de21 scribed in subparagraphs (A) and (B) from na22 tional, State, and local levels;

23 ‘‘(E) procedures to support standardization

24 and aggregation of data from administrative re-
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1 porting systems described in subparagraph (A)

2 of employment-related programs;

3 ‘‘(F) analysis of data and information de4 scribed in subparagraphs (A) and (B) for uses

5 such as State and local policymaking;

6 ‘‘(G) wide dissemination of such data, in7 formation, and analysis, training for users of

8 the data, information, and analysis, and vol9 untary technical standards for dissemination

10 mechanisms; and

11 ‘‘(H) programs of—

12 ‘‘(i) research and demonstration; and

13 ‘‘(ii) technical assistance for States

14 and localities.

15 ‘‘(2) INFORMATION TO BE CONFIDENTIAL.—

16 ‘‘(A) IN GENERAL.—No officer or em17 ployee of the Federal Government or agent of

18 the Federal Government may—

19 ‘‘(i) use any submission that is fur20 nished for exclusively statistical purposes

21 under the provisions of this section for any

22 purpose other than the statistical purposes

23 for which the submission is furnished;

24 ‘‘(ii) make any publication or media

25 transmittal of the data contained in the
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1 submission described in clause (i) that per2 mits information concerning individual

3 subjects to be reasonably inferred by either

4 direct or indirect means; or

5 ‘‘(iii) permit anyone other than a

6 sworn officer, employee, or agent of any

7 Federal department or agency, or a con8 tractor (including an employee of a con9 tractor) of such department or agency, to

10 examine an individual submission described

11 in clause (i);

12 without the consent of the individual, agency, or

13 other person who is the subject of the submis14 sion or provides that submission.

15 ‘‘(B) IMMUNITY FROM LEGAL PROCESS.—

16 Any submission (including any data derived

17 from the submission) that is collected and re18 tained by a Federal department or agency, or

19 an officer, employee, agent, or contractor of

20 such a department or agency, for exclusively

21 statistical purposes under this section shall be

22 immune from the legal process and shall not,

23 without the consent of the individual, agency, or

24 other person who is the subject of the submis25 sion or provides that submission, be admitted
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1 as evidence or used for any purpose in any ac2 tion, suit, or other judicial or administrative

3 proceeding.

4 ‘‘(C) CONSTRUCTION.—Nothing in this

5 section shall be construed to provide immunity

6 from the legal process for such submission (in7 cluding any data derived from the submission)

8 if the submission is in the possession of any

9 person, agency, or entity other than the Federal

10 Government or an officer, employee, agent, or

11 contractor of the Federal Government, or if the

12 submission is independently collected, retained,

13 or produced for purposes other than the pur14 poses of this Act.

15 ‘‘(b) SYSTEM RESPONSIBILITIES.—

16 ‘‘(1) IN GENERAL.—The labor market informa17 tion system shall be planned, administered, overseen,

18 and evaluated through a cooperative governance

19 structure involving the Federal Government and

20 States.

21 ‘‘(2) DUTIES.—The Secretary, with respect to

22 data collection, analysis, and dissemination of labor

23 market information for the system, shall carry out

24 the following duties:
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1 ‘‘(A) Assign responsibilities within the De2 partment of Labor for elements of the system

3 described in subsection (a) to ensure that all

4 statistical and administrative data collected is

5 consistent with appropriate Bureau of Labor

6 Statistics standards and definitions.

7 ‘‘(B) Actively seek the cooperation of other

8 Federal agencies to establish and maintain

9 mechanisms for ensuring complementarity and

10 nonduplication in the development and oper11 ation of statistical and administrative data col12 lection activities.

13 ‘‘(C) Eliminate gaps and duplication in

14 statistical undertakings, with the systemization

15 of wage surveys as an early priority.

16 ‘‘(D) In collaboration with the Bureau of

17 Labor Statistics and States, develop and main18 tain the elements of the system described in

19 subsection (a), including the development of

20 consistent definitions for use by the States in

21 collecting the data and information described in

22 subparagraphs (A) and (B), of subsection

23 (a)(1) and the development of the annual plan

24 under subsection (c).
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1 ‘‘(E) Establish procedures for the system

2 to ensure that—

3 ‘‘(i) such data and information are

4 timely;

5 ‘‘(ii) administrative records for the

6 system are consistent in order to facilitate

7 aggregation of such data and information;

8 ‘‘(iii) paperwork and reporting for the

9 system are reduced to a minimum; and

10 ‘‘(iv) States and localities are fully in11 volved in the maintenance and continuous

12 improvement of the system at the State

13 and local levels.

14 ‘‘(c) ANNUAL PLAN.—The Secretary, with the assist15 ance of the States and the Bureau of Labor Statistics,

16 and with the assistance of other appropriate Federal agen17 cies, shall prepare an annual plan which shall be the mech18 anism for achieving cooperative management of the na19 tionwide labor market information system described in

20 subsection (a) and the statewide labor market information

21 systems that comprise the nationwide system. The plan

22 shall—

23 ‘‘(1)(A) describe the elements of the system de24 scribed in subsection (a), including standards, defini25 tions, formats, collection methodologies, and other
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1 necessary system elements, for use in collecting data

2 and information described in subparagraphs (A) and

3 (B) of subsection (a)(1); and

4 ‘‘(B) include assurances that—

5 ‘‘(i) the data will be timely and detailed;

6 ‘‘(ii) administrative records will be stand7 ardized to facilitate the aggregation of the data

8 from local areas to State and national levels

9 and to support the creation of new statistical

10 series from program records; and

11 ‘‘(iii) paperwork and reporting require12 ments for employers and individuals will be re13 duced;

14 ‘‘(2) include a report on the results of an an15 nual consumer satisfaction review concerning the

16 performance of the system, including the perform17 ance of the system in addressing the needs of Con18 gress, States, localities, employers, jobseekers, and

19 other consumers;

20 ‘‘(3) evaluate the performance of the system

21 and recommend needed improvements, taking into

22 consideration the results of the consumer satisfac23 tion review, with particular attention paid to the im24 provements needed at the State and local levels;
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1 ‘‘(4) describe annual priorities, and priorities

2 over 5 years, for the system;

3 ‘‘(5) describe current (as of the date of the sub4 mission of the plan) spending and spending needs to

5 carry out activities under this section, including the

6 costs to States and localities of meeting the require7 ments of subsection (d)(2); and

8 ‘‘(6) describe the involvement of States in the

9 development of the plan, through formal consulta10 tions conducted by the Secretary in cooperation with

11 representatives of the Governors of every State, and

12 with representatives of local partnerships, pursuant

13 to a process established by the Secretary in coopera14 tion with the States.

15 ‘‘(d) STATE RESPONSIBILITIES.—

16 ‘‘(1) DESIGNATION OF STATE AGENCY.—In

17 order to receive Federal financial assistance under

18 this section, the Governor of a State—

19 ‘‘(A) shall designate a single State agency

20 to be responsible for the management of the

21 portions of the system described in subsection

22 (a) that comprise a statewide labor market in23 formation system; and

24 ‘‘(B) shall establish a process for the over25 sight of such system.
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1 ‘‘(2) DUTIES.—In order to receive Federal fi2 nancial assistance under this section, the State agen3 cy shall—

4 ‘‘(A) consult with State and local employ5 ers, participants, and local partnerships about

6 the labor market relevance of the data to be col7 lected and disseminated through the statewide

8 labor market information system;

9 ‘‘(B) consult with State educational agen10 cies and local educational agencies concerning

11 providing labor market information in order to

12 meet the needs of secondary school and post13 secondary school students who seek such infor14 mation;

15 ‘‘(C) collect and disseminate for the sys16 tem, on behalf of the State and localities in the

17 State, the information and data described in

18 subparagraphs (A) and (B) of subsection

19 (a)(1);

20 ‘‘(D) maintain and continuously improve

21 the statewide labor market information system

22 in accordance with this section;

23 ‘‘(E) perform contract and grant respon24 sibilities for data collection, analysis, and dis25 semination for such system;
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1 ‘‘(F) conduct such other data collection,

2 analysis, and dissemination activities as will en3 sure an effective statewide labor market infor4 mation system;

5 ‘‘(G) actively seek the participation of

6 other State and local agencies in data collec7 tion, analysis, and dissemination activities in

8 order to ensure complementarity, compatibility,

9 and usefulness of data;

10 ‘‘(H) participate in the development of the

11 annual plan described in subsection (c); and

12 ‘‘(I) utilize the quarterly records described

13 in section 321(e)(1) and section 312 to assist

14 the State and other States in measuring State

15 progress on State performance measures.

16 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in

17 this section shall be construed as limiting the ability

18 of a State agency to conduct additional data collec19 tion, analysis, and dissemination activities with

20 State funds or with Federal funds from sources

21 other than this section.

22 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There

23 are authorized to be appropriated to carry out this section

24 such sums as may be necessary for each of fiscal years

25 1999 through 2003.
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1 ‘‘(f) DEFINITIONS.—In this section, the terms ‘local

2 area’ and ‘local partnership’ have the meanings given the

3 terms in section 2 of the Workforce Investment Partner4 ship Act of 1997.’’.

5 SEC. 410. TECHNICAL AMENDMENTS.

6 Sections 3(b), 6(b)(1), and 7(d) of the Wagner

7 Peyser Act (29 U.S.C. 49b(b), 49e(b)(1), and 49f(d)) are

8 amended by striking ‘‘Secretary of Labor’’ and inserting

9 ‘‘Secretary’’.

10 Subtitle B—Linkages With Other

11 Programs

12 SEC. 421. TRADE ACT OF 1974.

13 Section 241 of the Trade Act of 1974 (19 U.S.C.

14 2313) is amended by adding at the end the following:

15 ‘‘(d) To be eligible to receive funds under this section,

16 a State shall submit to the Secretary an application that

17 includes the description and information described in

18 paragraphs (8) and (16) of section 304(b) of the

19 Workforce Investment Partnership Act of 1997.’’.

20 SEC. 422. NATIONAL APPRENTICESHIP ACT.

21 The Act of August 16, 1937 (commonly known as

22 the ‘‘National Apprenticeship Act’’; 50 Stat. 664, chapter

23 663; 29 U.S.C. 50 et seq.) is amended by inserting after

24 section 3 the following:
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1 ‘‘SEC. 3A. COORDINATION AND NONDUPLICATION.

2 ‘‘In carrying out this Act, the Secretary of Labor

3 shall require that an appropriate administrative entity in

4 each State enter into an agreement with the Secretary re5 garding the implementation of this Act that includes the

6 description and information described in paragraphs (8)

7 and (16) of section 304(b) of the Workforce Investment

8 Partnership Act of 1997.’’.

9 SEC. 423. VETERANS’ EMPLOYMENT PROGRAMS.

10 Chapter 41 of title 38, United States Code, is amend11 ed by adding at the end the following:

12 ‘‘§ 4110B. Coordination and nonduplication

13 ‘‘In carrying out this chapter, the Secretary shall re14 quire that an appropriate administrative entity in each

15 State enter into an agreement with the Secretary regard16 ing the implementation of this Act that includes the de17 scription and information described in paragraphs (8) and

18 (16) of section 304(b) of the Workforce Investment Part19 nership Act of 1997.’’.

20 SEC. 424. OLDER AMERICANS ACT OF 1965.

21 Section 502(b)(1) of the Older Americans Act of

22 1965 (42 U.S.C. 3056(b)(1)) is amended—

23 (1) in subparagraph (O), by striking ‘‘; and’’

24 and inserting a semicolon;

25 (2) in subparagraph (P), by striking the period

26 and inserting ‘‘; and’’; and
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1 (3) by adding at the end the following subpara2 graph:

3 ‘‘(Q) will provide to the Secretary the descrip4 tion and information described in paragraphs (8)

5 and (16) of section 304(b) of the Workforce Invest6 ment Partnership Act of 1997.’’.

7 TITLE V—GENERAL PROVISIONS

8 SEC. 501. STATE UNIFIED PLANS.

9 (a) PURPOSE.—The purpose of this section is to per10 mit and encourage the submission of State unified plans,

11 to assure coordination of and to avoid duplication between

12 the activities carried out through the one-stop customer

13 service systems.

14 (b) DEFINITIONS.—In this section:

15 (1) APPROPRIATE SECRETARY.—The term ‘‘ap16 propriate Secretary’’ means the head of the Federal

17 agency with authority to carry out a system pro18 gram.

19 (2) APPROPRIATE STATE AGENCY.—The term

20 ‘‘appropriate State agency’’—

21 (A) used with respect to a system program

22 authorized under title I or II, means an eligible

23 agency; and

24 (B) used with respect to another system

25 program, means a State agency with authority
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1 to carry out the system program, as specified

2 by the Governor of the State.

3 (3) SYSTEM PROGRAM.—The term ‘‘system pro4 gram’’ means a program of activities, carried out

5 through the one-stop customer service system, that

6 are—

7 (A) activities authorized under title I or II;

8 (B) workforce investment activities author9 ized under subtitle A of title III;

10 (C) other activities authorized under title

11 III;

12 (D) programs authorized under section

13 6(d) of the Food Stamp Act of 1977 (7 U.S.C.

14 2015(d));

15 (E) work programs authorized under sec16 tion 6(o) of the Food Stamp Act of 1977 (7

17 U.S.C. 2015(o));

18 (F) activities authorized under chapter 2

19 of title II of the Trade Act of 1974 (19 U.S.C.

20 2271 et seq.);

21 (G) programs authorized under the Wag22 ner-Peyser Act (29 U.S.C. 49 et seq.);

23 (H) activities carried out by the Bureau of

24 Apprenticeship and Training;
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1 (I) programs authorized under title I of

2 the Rehabilitation Act of 1973 (29 U.S.C. 720

3 et seq.);

4 (J) activities authorized under chapter 41

5 of title 38, United States Code;

6 (K) programs authorized under State un7 employment compensation laws and the Federal

8 unemployment insurance program under titles

9 III, IX, and XII of the Social Security Act (42

10 U.S.C. 501 et seq., 1101 et seq., and 1321 et

11 seq.).

12 (L) programs authorized under part A of

13 title IV of the Social Security Act (42 U.S.C.

14 601 et seq.);

15 (M) programs authorized under title V of

16 the Older Americans Act of 1965 (42 U.S.C.

17 3056 et seq.); or

18 (N) training activities carried out by the

19 Department of Housing and Urban Develop20 ment.

21 (c) STATE UNIFIED PLAN.—A State may develop

22 and submit to the appropriate Secretaries a State unified

23 plan for 2 or more of the system programs.

24 (d) CONTENTS.—

25 (1) PLANNING PROVISIONS.—
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1 (A) IN GENERAL.—In a State that elects

2 to develop a State unified plan, the plan shall

3 contain planning provisions, which shall be de4 veloped in a manner that substantially reflects

5 the planning requirements of the provisions of

6 the Federal statutes authorizing the system

7 programs.

8 (B) PLANNING REQUIREMENTS.—In sub9 paragraph (A), the term ‘‘planning require10 ments’’, used with respect to a system program,

11 means such requirements as the appropriate

12 Secretary shall by regulation specify for the sys13 tem program.

14 (2) INFORMATION PROVISIONS.—In addition to

15 the planning provisions required to be included pur16 suant to paragraph (1), the plan shall include the

17 following:

18 (A) A description of the process used for

19 developing the State unified plan.

20 (B) A description of the process used to

21 consult the chief elected officials in the State

22 about the State unified plan.

23 (C) A description of the accountability sys24 tem of the State for activities carried out

25 through the one-stop customer service system.
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1 (D) A description of how the one-stop cus2 tomer service system will provide the services

3 identified in the State unified plan through

4 such system.

5 (E) An assurance that the funds appro6 priated under Federal law to carry out the ac7 tivities identified in the State unified plan will

8 be used to supplement and not supplant other

9 Federal, State, and local public funds expended

10 to carry out the activities for eligible individ11 uals.

12 (e) DEVELOPMENT.—

13 (1) PLANNING PROVISIONS.—The provisions of

14 the plan described in subsection (d)(1) shall be de15 veloped by the statewide partnership. The portion of

16 the State unified plan relating to a system program

17 may be modified, as appropriate, with the agreement

18 of the Governor and the head of the appropriate

19 State agency with authority to carry out the system

20 program. The Governor and the head of the appro21 priate State agency shall have the final authority to

22 determine the content of the portion of the State

23 unified plan that relates to the system program.

24 (2) INFORMATION PROVISIONS.—The provisions

25 of the plan described in subsection (d)(2) shall be
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1 developed by the statewide partnership, which shall

2 have the final authority to determine the content of

3 the provisions.

4 (f) SUBMISSION.—After the heads of the appropriate

5 State agencies approve the portions of the State unified

6 plan that relate to their system programs, the State uni7 fied plan shall be submitted to the appropriate Secretaries

8 by—

9 (1) the Governor; and

10 (2) an eligible agency, in the case of a plan con11 taining a portion relating to the system program of

12 the eligible agency.

13 (g) APPROVAL BY THE APPROPRIATE SECRETAR14 IES.—

15 (1) JURISDICTION.—Each of the appropriate

16 Secretaries shall have the authority to approve the

17 portion of the State unified plan relating to the sys18 tem program for which the Secretary has authority.

19 On the approval of the Secretary, the portion of the

20 plan relating to the system program shall be imple21 mented by the State pursuant to the State unified

22 plan.

23 (2) APPROVAL.—A portion of a State unified

24 plan submitted to an appropriate Secretary under

25 this section shall be considered to be approved by
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1 the appropriate Secretary at the end of the 60-day

2 period beginning on the day the appropriate Sec3 retary receives the portion, unless the Secretary

4 makes a written determination, during the 60-day

5 period, that the portion does not substantially reflect

6 the planning requirements of the appropriate Fed7 eral statutes authorizing the system programs.

8 SEC. 502. TRANSITION PROVISIONS.

9 (a) IN GENERAL.—The Secretary of Education or the

10 Secretary of Labor, as appropriate, shall take such steps

11 as such Secretary determines to be appropriate to provide

12 for the orderly transition to the authority of this Act from

13 any authority under provisions of law to be repealed under

14 subtitle E of title I, subtitle B of title II, or subtitle E

15 of title III, or any related authority.

16 (b) EXTENDED TRANSITION PERIOD.—

17 (1) IN GENERAL.—If, on or before July 1,

18 1999, a State has enacted a State statute that pro19 vides for the establishment or conduct of 3 or more

20 of the programs, projects, or activities described in

21 subparagraphs (A) through (E) of paragraph (2),

22 the State shall not be required to comply with provi23 sions of this Act that conflict the provisions of with

24 such State statute relating to such programs,

25 projects, or activities for the period ending 3 years
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1 after the effective date specified in section 503(a).

2 After such 3-year period, the Secretary of Education

3 or the Secretary of Labor, as appropriate, shall

4 allow a State to continue operating under such State

5 statute if the State is meeting the State performance

6 measures of the State.

7 (2) PROGRAMS, PROJECTS, AND ACTIVITIES DE8 SCRIBED.—The programs, projects, and activities

9 described in this paragraph are the following:

10 (A) Establishment of statewide partner11 ships or substate partnerships, including local

12 and regional partnerships.

13 (B) Reorganization or consolidation of

14 State agencies with responsibility for workforce

15 investment activities.

16 (C) Reorganization or consolidation of

17 workforce investment activities.

18 (D) Restructuring of local delivery systems

19 for workforce investment activities.

20 (E) Development or restructuring of State

21 accountability or oversight systems for

22 workforce investment systems to focus on per23 formance.
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1 SEC. 503. EFFECTIVE DATE.

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

3 this Act, this Act takes effect on July 1, 1999.

4 (b) EARLY IMPLEMENTATION.—At the option of a

5 State, the Governor of the State and the chief official of

6 the eligible agencies in the State may use funds made

7 available under a provision of law described in section

8 502(a), or any related authority to implement this Act at

9 any time prior to July 1, 1999.

Æ