Calendar No. 214

105TH CONGRESS

1ST SESSION S. 1186

[Report No. 105–109]

A BILL

To provide for education and training, and for

other purposes.

OCTOBER 15, 1997

Reported with an amendment
II

Calendar No. 214

105TH CONGRESS

1ST SESSION S. 1186

[Report No. 105–109]

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

OCTOBER 15, 1997

Reported under authority of the order of the Senate of October 9, 1997 by

Mr. JEFFORDS, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

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

2 as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

TITLE I—VOCATIONAL, TECHNOLOGICAL, AND TECH-PREP

EDUCATION

Sec. 101. Short title.

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.
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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.

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.
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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

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.
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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.

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

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

3 or older.

4 (2) ADULT EDUCATION.—The term ‘‘adult edu5 cation’’ means services or instruction below the post6 secondary level for individuals—

7 (A) who have attained 16 years of age or

8 who are beyond the age of compulsory school

9 attendance under State law;

10 (B) who are not enrolled in secondary

11 school; and

12 (C) who—

13 (i) lack sufficient mastery of basic

14 educational skills to enable the individuals

15 to function effectively in society;

16 (ii) do not possess a secondary school

17 diploma or its recognized equivalent; or

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

19 write the English language.

20 (3) AREA VOCATIONAL EDUCATION SCHOOL.—

21 The term ‘‘area vocational education school’’

22 means—

23 (A) a specialized public secondary school

24 used exclusively or principally for the provision

25 of vocational education for individuals who seek
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1 to study and prepare for entering the labor

2 market;

3 (B) the department of a public secondary

4 school exclusively or principally used for provid5 ing vocational education in not fewer than 5

6 different occupational fields to individuals who

7 are available for study in preparation for enter8 ing the labor market;

9 (C) a technical institute or vocational

10 school used exclusively or principally for the

11 provision of vocational education to individuals

12 who have completed or left public secondary

13 school and who seek to study and prepare for

14 entering the labor market, if the institute or

15 school admits as regular students both individ16 uals who have completed public secondary

17 school and individuals who have left public sec18 ondary school; or

19 (D) the department or division of a junior

20 college, community college, or university operat21 ing under the policies of the eligible agency and

22 that provides vocational education in not fewer

23 than 5 different occupational fields leading to

24 immediate employment but not necessarily lead25 ing to a baccalaureate degree, if the department
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1 or division admits as regular students both indi2 viduals who have completed public secondary

3 school and individuals who have left public sec4 ondary school.

5 (4) CHIEF ELECTED OFFICIAL.—The term

6 ‘‘chief elected official’’ means the chief elected execu7 tive officer of a unit of general local government in

8 a local area.

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

10 except as provided in section 302, the term ‘‘dis11 advantaged adult’’ means an adult who is a low-in12 come individual.

13 (6) DISLOCATED WORKER.—The term ‘‘dis14 located worker’’ means an individual who—

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

16 who has received a notice of termination or lay17 off, from employment;

18 (ii)(I) is eligible for or has exhausted enti19 tlement to unemployment compensation; or

20 (II) has been employed for a duration suf21 ficient to demonstrate, to the appropriate entity

22 at a one-stop customer service center, attach23 ment to the workforce, but is not eligible for

24 unemployment compensation due to insufficient

25 earnings or having performed services for an
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1 employer that were not covered under a State

2 unemployment compensation law; and

3 (iii) is unlikely to return to a previous in4 dustry or occupation;

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

6 has received a notice of termination or layoff,

7 from employment as a result of any permanent

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

9 facility, or enterprise;

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

11 employer has made a general announcement

12 that such facility will close within 180 days; or

13 (iii) for purposes of eligibility to receive

14 services under title III other than training serv15 ices described in section 315(c)(3), intensive

16 services, or supportive services, is employed at

17 a facility at which the employer has made a

18 general announcement that such facility will

19 close;

20 (C) was self-employed (including employ21 ment as a farmer, a rancher, or a fisherman)

22 but is unemployed as a result of general eco23 nomic conditions in the community in which the

24 individual resides or because of natural disas25 ters; or
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1 (D) is a displaced homemaker.

2 (7) DISPLACED HOMEMAKER.—The term ‘‘dis3 placed homemaker’’ means an individual who has

4 been providing unpaid services to family members in

5 the home and who—

6 (A) has been dependent on the income of

7 another family member but is no longer sup8 ported by that income; and

9 (B) is unemployed or underemployed and

10 is experiencing difficulty in obtaining or up11 grading employment.

12 (8) ECONOMIC DEVELOPMENT AGENCIES.—The

13 term ‘‘economic development agencies’’ includes local

14 planning and zoning commissions or boards, commu15 nity development agencies, and other local agencies

16 and institutions responsible for regulating, promot17 ing, or assisting in local economic development.

18 (9) EDUCATIONAL SERVICE AGENCY.—The

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

20 public multiservice agency authorized by State stat21 ute to develop and manage a service or program,

22 and provide the service or program to a local edu23 cational agency.

24 (10) ELEMENTARY SCHOOL; LOCAL EDU25 CATIONAL AGENCY.—The terms ‘‘elementary school’’
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1 and ‘‘local educational agency’’ have the meanings

2 given the terms in section 14101 of the Elementary

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

4 8801).

5 (11) ELIGIBLE AGENCY.—The term ‘‘eligible

6 agency’’ means—

7 (A) in the case of vocational education ac8 tivities or requirements described in title I—

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

10 a State or an outlying area responsible for

11 administering or setting policy for voca12 tional education in the State or outlying

13 area, respectively, pursuant to the law of

14 the State or outlying area, respectively; or

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

16 is responsible for administering or setting

17 such policy pursuant to the law of the

18 State or outlying area, the individual, en19 tity, or agency in a State or outlying area,

20 respectively, responsible for administering

21 or setting policy for vocational education in

22 the State or outlying area, respectively, on

23 the date of enactment of the Workforce In24 vestment Partnership Act of 1997; and
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1 (B) in the case of adult education and lit2 eracy activities or requirements described in

3 title II—

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

5 a State or an outlying area responsible for

6 administering or setting policy for adult

7 education and literacy in the State or out8 lying area, respectively, pursuant to the

9 law of the State or outlying area, respec10 tively; 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 adult education and

18 literacy in the State or outlying area, re19 spectively, on the date of enactment of the

20 Workforce Investment Partnership Act of

21 1997.

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

23 term ‘‘eligible institution’’ means—

24 (A) an institution of higher education;
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1 (B) a local educational agency providing

2 education at the postsecondary level;

3 (C) an area vocational education school

4 providing education at the postsecondary level;

5 (D) a postsecondary educational institution

6 controlled by the Bureau of Indian Affairs or

7 operated by or on behalf of any Indian tribe

8 that is eligible to contract with the Secretary of

9 the Interior for the administration of programs

10 under the Indian Self-Determination Act or the

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

12 452 et seq.); and

13 (E) a consortium of 2 or more of the enti14 ties described in subparagraphs (A) through

15 (D).

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

17 provider’’—

18 (A) in title II, means—

19 (i) a local educational agency;

20 (ii) a community-based organization;

21 (iii) an institution of higher education;

22 (iv) a public or private nonprofit

23 agency;

24 (v) a consortium of such agencies, or25 ganizations, or institutions; or
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1 (vi) a library; and

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

3 (i) training services (other than on4 the-job training), means a provider who is

5 identified in accordance with section 312;

6 (ii) youth activities, means a provider

7 who is awarded a grant in accordance with

8 section 313; or

9 (iii) other workforce investment activi10 ties, means a public or private entity se11 lected to be responsible for such activities,

12 in accordance with subtitle A of title III,

13 such as a one-stop customer service center

14 operator designated or certified under sec15 tion 311.

16 (14) EMPLOYMENT AND TRAINING ACTIVITY.—

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

18 an activity described in section 314(b)(1) or sub19 section (c)(1) or (d) of section 315, carried out for

20 an adult or dislocated worker.

21 (15) ENGLISH LITERACY PROGRAM.—The term

22 ‘‘English literacy program’’ means a program of in23 struction designed to help individuals of limited

24 English proficiency achieve competence in the Eng25 lish language.
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1 (16) GOVERNOR.—The term ‘‘Governor’’ means

2 the chief executive officer of a State.

3 (17) INDIVIDUAL WITH A DISABILITY.—

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

5 with a disability’’ means an individual with any

6 disability (as defined in section 3 of the Ameri7 cans with Disabilities Act of 1990 (42 U.S.C.

8 12102)).

9 (B) INDIVIDUALS WITH DISABILITIES.—

10 The term ‘‘individuals with disabilities’’ means

11 more than 1 individual with a disability.

12 (18) INDIVIDUAL OF LIMITED ENGLISH PRO13 FICIENCY.—The term ‘‘individual of limited English

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

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

16 or understanding the English language, and—

17 (A) whose native language is a language

18 other than English; or

19 (B) who lives in a family or community en20 vironment where a language other than English

21 is the dominant language.

22 (19) INSTITUTION OF HIGHER EDUCATION.—

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

24 ‘‘institution of higher education’’ has the meaning
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1 given the term in section 1201(a) of the Higher

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

3 (20) LITERACY.—

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

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

6 speak in English, compute, and solve problems,

7 at levels of proficiency necessary to function on

8 the job and in society.

9 (B) WORKPLACE LITERACY PROGRAM.—

10 The term ‘‘workplace literacy program’’ means

11 a program of literacy activities that is offered

12 in the workplace for the purpose of improving

13 the productivity of the workforce through the

14 improvement of literacy skills.

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

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

17 investment area designated under section 307.

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

19 term ‘‘local partnership’’ means a local workforce in20 vestment partnership established under section

21 308(a).

22 (23) LOCAL PERFORMANCE MEASURE.—The

23 term ‘‘local performance measure’’ means a perform24 ance measure established under section 321(b).
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1 (24) LOW-INCOME INDIVIDUAL.—In paragraph

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

3 means an individual who—

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

5 that receives, cash payments under a Federal,

6 State, or local income-based public assistance

7 program;

8 (B) received an income, or is a member of

9 a family that received a total family income, for

10 the 6-month period prior to application for the

11 program involved (exclusive of unemployment

12 compensation, child support payments, pay13 ments described in subparagraph (A), and old14 age and survivors insurance benefits received

15 under section 202 of the Social Security Act

16 (42 U.S.C. 402)) that, in relation to family

17 size, does not exceed the higher of—

18 (i) the poverty line, for an equivalent

19 period; or

20 (ii) 70 percent of the lower living

21 standard income level, for an equivalent

22 period;

23 (C) is a member of a household that re24 ceives (or has been determined within the 6-

25 month period prior to application for the pro-
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1 gram involved to be eligible to receive) food

2 stamps pursuant to the Food Stamp Act of

3 1977 (7 U.S.C. 2011 et seq.);

4 (D) qualifies as a homeless individual, as

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

6 103 of the Stewart B. McKinney Homeless As7 sistance Act (42 U.S.C. 11302);

8 (E) is a foster child on behalf of whom

9 State or local government payments are made;

10 or

11 (F) in cases permitted by regulations of

12 the Secretary of Labor, is an individual with a

13 disability whose own income meets the require14 ments of a program described in subparagraph

15 (A) or of subparagraph (B), but who is a mem16 ber of a family whose income does not meet

17 such requirements.

18 (25) LOWER LIVING STANDARD INCOME

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

20 level’’ means that income level (adjusted for re21 gional, metropolitan, urban, and rural differences

22 and family size) determined annually by the Sec23 retary of Labor based on the most recent lower liv24 ing family budget issued by the Secretary of Labor.
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1 (26) NONTRADITIONAL EMPLOYMENT.—In ti2 tles I and III, the term ‘‘nontraditional employ3 ment’’ refers to occupations or fields of work for

4 which individuals from one gender comprise less

5 than 25 percent of the individuals employed in each

6 such occupation or field of work.

7 (27) ON-THE-JOB TRAINING.—The term ‘‘on8 the-job training’’ means training in the public or pri9 vate sector that is provided to a paid participant

10 while engaged in productive work in a job that—

11 (A) provides knowledge or skills essential

12 to the full and adequate performance of the job;

13 (B) provides reimbursement to employers

14 of up to 50 percent of the wage rate of the par15 ticipant, for the extraordinary costs of provid16 ing the training and additional supervision re17 lated to the training; and

18 (C) is limited in duration as appropriate to

19 the occupation for which the participant is

20 being trained.

21 (28) OUT-OF-SCHOOL YOUTH.—The term ‘‘out22 of-school youth’’ means—

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

24 (B) a youth who has received a secondary

25 school diploma or its equivalent but is basic lit-
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1 eracy skills deficient, unemployed, or under2 employed.

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

4 area’’ means the United States Virgin Islands,

5 Guam, American Samoa, the Commonwealth of the

6 Northern Mariana Islands, the Republic of the Mar7 shall Islands, the Federated States of Micronesia,

8 and the Republic of Palau.

9 (30) PARTICIPANT.—The term ‘‘participant’’,

10 used with respect to an activity carried out under

11 title III, means an individual participating in the ac12 tivity.

13 (31) POSTSECONDARY EDUCATIONAL INSTITU14 TION.—The term ‘‘postsecondary educational institu15 tion’’ means—

16 (A) an institution of higher education that

17 provides not less than a 2-year program of in18 struction that is acceptable for credit toward a

19 bachelor’s degree;

20 (B) a tribally controlled community college;

21 or

22 (C) a nonprofit educational institution of23 fering certificate or apprenticeship programs at

24 the postsecondary level.
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1 (32) POVERTY LINE.—The term ‘‘poverty line’’

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

3 Management and Budget, and revised annually in

4 accordance with section 673(2) of the Community

5 Services Block Grant Act (42 U.S.C. 9902(2))) ap6 plicable to a family of the size involved.

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

8 term ‘‘public assistance’’ means Federal, State, or

9 local government cash payments for which eligibility

10 is determined by a needs or income test.

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

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

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

14 a State, with funds provided by the State under sec15 tion 306(a)(2), in the case of a permanent closure

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

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

18 dislocation, in order to assist dislocated workers in

19 obtaining reemployment as soon as possible, with

20 services including—

21 (A) the establishment of onsite contact

22 with employers and employee representatives—

23 (i) immediately after the State is noti24 fied of a current or projected permanent

25 closure or mass layoff; or
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1 (ii) in the case of a disaster, imme2 diately after the State is made aware of

3 mass job dislocation as a result of such

4 disaster;

5 (B) the provision of information and access

6 to available employment and training activities;

7 (C) assistance in establishing a labor-man8 agement committee, voluntarily agreed to by

9 labor and management, with the ability to de10 vise and implement a strategy for assessing the

11 employment and training needs of dislocated

12 workers and obtaining services to meet such

13 needs;

14 (D) the provision of emergency assistance

15 adapted to the particular closure, layoff, or dis16 aster; and

17 (E) the provision of assistance to the local

18 community in developing a coordinated response

19 and in obtaining access to State economic devel20 opment assistance.

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

22 dropout’’ means an individual who is no longer at23 tending any school and who has not received a sec24 ondary school diploma or its recognized equivalent.
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1 (36) SECONDARY SCHOOL.—The term ‘‘second2 ary school’’ has the meaning given the term in sec3 tion 14101 of the Elementary and Secondary Edu4 cation Act of 1965 (20 U.S.C. 8801), except that

5 the term does not include education below grade 9.

6 (37) SECRETARY.—

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

8 the term ‘‘Secretary’’ means the Secretary of

9 Education.

10 (B) TITLE III.—In title III, the term ‘‘Sec11 retary’’ means the Secretary of Labor.

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

13 the several States of the United States, the District

14 of Columbia, and the Commonwealth of Puerto Rico.

15 (39) STATE EDUCATIONAL AGENCY.—The term

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

17 of education or other agency or officer primarily re18 sponsible for the State supervision of public elemen19 tary or secondary schools, or, if there is no such

20 agency or officer, an agency or officer designated by

21 the Governor or by State law.

22 (40) STATE PERFORMANCE MEASURE.—In title

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

24 performance measure established under section

25 321(a).
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1 (41) STATEWIDE PARTNERSHIP.—The term

2 ‘‘statewide partnership’’ means a partnership estab3 lished under section 303.

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

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

6 transportation, child care, dependent care, housing,

7 and needs-based payments, that are necessary to en8 able an individual to participate in employment and

9 training activities or youth activities.

10 (43) TRIBALLY CONTROLLED COMMUNITY COL11 LEGE.—The term ‘‘tribally controlled community

12 college’’ means an institution that receives assistance

13 under the Tribally Controlled Community College

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

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

16 et seq.).

17 (44) UNIT OF GENERAL LOCAL GOVERN18 MENT.—In title III, the term ‘‘unit of general local

19 government’’ means any general purpose political

20 subdivision of a State that has the power to levy

21 taxes and spend funds, as well as general corporate

22 and police powers.

23 (45) VETERAN; RELATED DEFINITIONS.—

24 (A) VETERAN.—The term ‘‘veteran’’

25 means an individual who served in the active
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1 military, naval, or air service, and who was dis2 charged or released from such service under

3 conditions other than dishonorable.

4 (B) DISABLED VETERAN.—The term ‘‘dis5 abled veteran’’ means—

6 (i) a veteran who is entitled to com7 pensation under laws administered by the

8 Secretary of Veterans Affairs; or

9 (ii) an individual who was discharged

10 or released from active duty because of

11 service-connected disability.

12 (C) RECENTLY SEPARATED VETERAN.—

13 The term ‘‘recently separated veteran’’ means

14 any veteran who applies for participation under

15 title III within 48 months of the discharge or

16 release from active military, naval, or air serv17 ice.

18 (D) VIETNAM ERA VETERAN.—The term

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

20 part of whose active military, naval, or air serv21 ice occurred between August 5, 1964, and May

22 7, 1975.

23 (46) VOCATIONAL EDUCATION.—The term ‘‘vo24 cational education’’ means organized education

25 that—
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1 (A) offers a sequence of courses that pro2 vides individuals with the academic knowledge

3 and skills the individuals need to prepare for

4 further education and for careers in current or

5 emerging employment sectors; and

6 (B) includes competency-based applied

7 learning that contributes to the academic

8 knowledge, higher-order reasoning and problem9 solving skills, work attitudes, general employ10 ability skills, and occupation-specific skills, of

11 an individual.

12 (47) VOCATIONAL REHABILITATION PRO13 GRAM.—The term ‘‘vocational rehabilitation pro14 gram’’ means a program assisted under title I of the

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

16 (48) WORKFORCE INVESTMENT ACTIVITY.—The

17 term ‘‘workforce investment activity’’ means an em18 ployment and training activity, a youth activity, and

19 an activity described in section 314.

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

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

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

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

24 than age 21;

25 (B) is a low-income individual; and
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1 (C) an individual who is 1 or more of the

2 following:

3 (i) Deficient in basic literacy skills.

4 (ii) A school dropout.

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

6 child.

7 (iv) Pregnant or a parent.

8 (v) An offender.

9 (vi) An individual who requires addi10 tional assistance to complete an edu11 cational program, or to secure and hold

12 employment.

13 (50) YOUTH ACTIVITY.—The term ‘‘youth activ14 ity’’ means an activity described in section 316, car15 ried out for youth.

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

17 partnership’’ means a partnership established under

18 section 308(i).

19 TITLE I—VOCATIONAL, TECHNO20 LOGICAL, AND TECH-PREP

21 EDUCATION

22 SEC. 101. SHORT TITLE.

23 This title may be cited as the ‘‘Carl D. Perkins Voca24 tional and Applied Technology Education Act of 1997’’.
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1 SEC. 102. FINDINGS AND PURPOSE.

2 (a) FINDINGS.—Congress finds that—

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

4 and learners in the 21st century, individuals will

5 need—

6 (A) a combination of strong basic and ad7 vanced academic skills;

8 (B) computer and other technical skills;

9 (C) theoretical knowledge;

10 (D) communications, problem-solving,

11 teamwork, and employability skills; and

12 (E) the ability to acquire additional knowl13 edge and skills throughout a lifetime;

14 (2) students participating in vocational edu15 cation can achieve challenging academic and tech16 nical skills, and may learn better and retain more,

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

18 and have an opportunity to learn and understand

19 how academic, vocational, and technological skills

20 are used outside the classroom;

21 (3)(A) many high school graduates in the Unit22 ed States do not complete a rigorous course of study

23 that prepares the graduates for completing a 2-year

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

25 high-wage careers;
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1 (B) adult students are an increasingly diverse

2 group and often enter postsecondary education un3 prepared for academic and technical work; and

4 (C) certain individuals often face great chal5 lenges in acquiring the knowledge and skills needed

6 for successful employment;

7 (4) community colleges, technical colleges, and

8 area vocational education schools are offering adults

9 a gateway to higher education, and access to quality

10 certificates and degrees that increase their skills and

11 earnings, by—

12 (A) ensuring that the academic, vocational,

13 and technological skills gained by students ade14 quately prepare the students for the workforce;

15 and

16 (B) enhancing connections with employers

17 and 4-year institutions of higher education;

18 (5) local, State, and national programs sup19 ported under the Carl D. Perkins Vocational and

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

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

22 the date of enactment of this Act) have assisted

23 many students in obtaining technical, academic, and

24 employability skills, and tech-prep education;
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1 (6) the Federal Government can assist States

2 and localities by carrying out nationally significant

3 research, program development, demonstration, dis4 semination, evaluation, data collection, professional

5 development, and technical assistance activities that

6 support State and local efforts regarding vocational

7 education; and

8 (7) through a performance partnership with

9 States and localities based on clear programmatic

10 goals, increased State and local flexibility, improved

11 accountability, and performance measures, the Fed12 eral Government will provide to States and localities

13 financial assistance for the improvement and expan14 sion of vocational education for students participat15 ing in vocational education.

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

17 the United States more competitive in the world economy

18 by developing more fully the academic, vocational, and em19 ployability skills of secondary students and postsecondary

20 students who elect to enroll in vocational education pro21 grams, by—

22 (1) building on the efforts of States and local23 ities to develop challenging academic standards;

24 (2) promoting the development of services and

25 activities that integrate academic, vocational, and
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1 technological instruction, and that link secondary

2 and postsecondary education for participating voca3 tional education students;

4 (3) increasing State and local flexibility in pro5 viding services and activities designed to develop, im6 plement, and improve vocational education, including

7 tech-prep education; and

8 (4) disseminating national research, and provid9 ing professional development and technical assist10 ance, that will improve vocational education pro11 grams, services, and activities.

12 SEC. 103. VOLUNTARY SELECTION AND PARTICIPATION.

13 No funds made available under this title shall be

14 used—

15 (1) to require any secondary school student to

16 choose or pursue a specific career path or major;

17 and

18 (2) to mandate that any individual participate

19 in a vocational education program under this title.

20 Subtitle A—Vocational Education

21 CHAPTER 1—FEDERAL PROVISIONS

22 SEC. 111. RESERVATIONS AND STATE ALLOTMENT.

23 (a) RESERVATIONS AND STATE ALLOTMENT.—
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1 (1) RESERVATIONS.—From the sum appro2 priated under section 171 for each fiscal year, the

3 Secretary shall reserve—

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

5 (B) 1.75 percent to carry out sections 114

6 and 115, of which—

7 (i) 1.25 percent of the sum shall be

8 available to carry out section 114(b);

9 (ii) 0.25 percent of the sum shall be

10 available to carry out section 114(c); and

11 (iii) 0.25 percent of the sum shall be

12 available to carry out section 115; and

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

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

15 166, of which not less than 0.65 percent of the

16 sum shall be available to carry out section 116.

17 (2) STATE ALLOTMENT FORMULA.—Subject to

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

19 sums appropriated under section 171 and not re20 served under paragraph (1) for a fiscal year, the

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

22 (A) an amount that bears the same ratio

23 to 50 percent of the sums being allotted as the

24 product of the population aged 15 to 19 inclu25 sive, in the State in the fiscal year preceding
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1 the fiscal year for which the determination is

2 made and the State’s allotment ratio bears to

3 the sum of the corresponding products for all

4 the States;

5 (B) an amount that bears the same ratio

6 to 20 percent of the sums being allotted as the

7 product of the population aged 20 to 24, inclu8 sive, in the State in the fiscal year preceding

9 the fiscal year for which the determination is

10 made and the State’s allotment ratio bears to

11 the sum of the corresponding products for all

12 the States;

13 (C) an amount that bears the same ratio

14 to 15 percent of the sums being allotted as the

15 product of the population aged 25 to 65, inclu16 sive, in the State in the fiscal year preceding

17 the fiscal year for which the determination is

18 made and the State’s allotment ratio bears to

19 the sum of the corresponding products for all

20 the States; and

21 (D) an amount that bears the same ratio

22 to 15 percent of the sums being allotted as the

23 amounts allotted to the State under subpara24 graphs (A), (B), and (C) for such years bears

25 to the sum of the amounts allotted to all the
34

•S 1186 RS

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

2 for such year.

3 (3) MINIMUM ALLOTMENT.—

4 (A) IN GENERAL.—Notwithstanding any

5 other provision of law and subject to subpara6 graphs (B) and (C), and paragraph (4), no

7 State shall receive for a fiscal year under this

subsection less than 1 8 ⁄2 of 1 percent of the

9 amount appropriated under section 171 and not

10 reserved under paragraph (1) for such fiscal

11 year. Amounts necessary for increasing such

12 payments to States to comply with the preced13 ing sentence shall be obtained by ratably reduc14 ing the amounts to be paid to other States.

15 (B) REQUIREMENT.—Due to the applica16 tion of subparagraph (A), for any fiscal year,

17 no State shall receive more than 150 percent of

18 the amount the State received under this sub19 section for the preceding fiscal year (or in the

20 case of fiscal year 1999 only, under section 101

21 of the Carl D. Perkins Vocational and Applied

22 Technology Education Act, as such section was

23 in effect on the day before the date of enact24 ment of this Act).

25 (C) SPECIAL RULE.—
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1 (i) IN GENERAL.—Subject to para2 graph (4), no State, by reason of subpara3 graph (A), shall be allotted for a fiscal

4 year more than the lesser of—

5 (I) 150 percent of the amount

6 that the State received in the preced7 ing fiscal year (or in the case of fiscal

8 year 1999 only, under section 101 of

9 the Carl D. Perkins Vocational and

10 Applied Technology Education Act, as

11 such section was in effect on the day

12 before the date of enactment of this

13 Act); and

14 (II) the amount calculated under

15 clause (ii).

16 (ii) AMOUNT.—The amount calculated

17 under this clause shall be determined by

18 multiplying—

19 (I) the number of individuals in

20 the State counted under paragraph

21 (2) in the preceding fiscal year; by

22 (II) 150 percent of the national

23 average per pupil payment made with

24 funds available under this section for

25 that year (or in the case of fiscal year
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•S 1186 RS

1 1999, only, under section 101 of the

2 Carl D. Perkins Vocational and Ap3 plied Technology Education Act, as

4 such section was in effect on the day

5 before the date of enactment of this

6 Act).

7 (4) HOLD HARMLESS.—

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

9 an allotment under this section for a fiscal year

10 that is less than the allotment the State re11 ceived under part A of title I of the Carl D.

12 Perkins Vocational and Applied Technology

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

14 such part was in effect on the day before the

15 date of enactment of this Act) for fiscal year

16 1997.

17 (B) RATABLE REDUCTION.—If for any fis18 cal year the amount appropriated for allotments

19 under this section is insufficient to satisfy the

20 provisions of subparagraph (A), the payments

21 to all States under such subparagraph shall be

22 ratably reduced.

23 (b) REALLOTMENT.—If the Secretary determines

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

25 (a) for any fiscal year will not be required for such fiscal
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1 year for carrying out the activities for which such amount

2 has been allotted, the Secretary shall make such amount

3 available for reallotment. Any such reallotment among

4 other States shall occur on such dates during the same

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

6 basis of criteria established by regulation. No funds may

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

8 funds were appropriated. Any amount reallotted to a State

9 under this subsection for any fiscal year shall remain

10 available for obligation during the succeeding fiscal year

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

12 for the year in which the amount is obligated.

13 (c) ALLOTMENT RATIO.—

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

15 State shall be 1.00 less the product of—

16 (A) 0.50; and

17 (B) the quotient obtained by dividing the

18 per capita income for the State by the per cap19 ita income for all the States (exclusive of the

20 Commonwealth of Puerto Rico), except that—

21 (i) the allotment ratio in no case shall

22 be more than 0.60 or less than 0.40; and

23 (ii) the allotment ratio for the Com24 monwealth of Puerto Rico shall be 0.60.
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•S 1186 RS

1 (2) PROMULGATION.—The allotment ratios

2 shall be promulgated by the Secretary for each fiscal

3 year between October 1 and December 31 of the fis4 cal year preceding the fiscal year for which the de5 termination is made. Allotment ratios shall be com6 puted on the basis of the average of the appropriate

7 per capita incomes for the 3 most recent consecutive

8 fiscal years for which satisfactory data are available.

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

10 the purpose of this section, the term ‘‘per capita in11 come’’ means, with respect to a fiscal year, the total

12 personal income in the calendar year ending in such

13 year, divided by the population of the area concerned

14 in such year.

15 (4) POPULATION DETERMINATION.—For the

16 purposes of this section, population shall be deter17 mined by the Secretary on the basis of the latest es18 timates available to the Department of Education.

19 SEC. 112. PERFORMANCE MEASURES AND EXPECTED LEV20 ELS OF PERFORMANCE.

21 (a) ESTABLISHMENT OF PERFORMANCE MEAS22 URES.—After consultation with eligible agencies, local

23 educational agencies, eligible institutions, and other inter24 ested parties (including representatives of business and

25 representatives of labor organizations), the Secretary shall
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•S 1186 RS

1 establish and publish performance measures described in

2 this subsection to assess the progress of each eligible agen3 cy in achieving the following:

4 (1) Student mastery of academic skills.

5 (2) Student mastery of job readiness skills.

6 (3) Student mastery of vocational skill pro7 ficiencies for students in vocational education pro8 grams, that are necessary for the receipt of a sec9 ondary school diploma or its recognized equivalent,

10 or a secondary school skill certificate.

11 (4) Receipt of a postsecondary degree or certifi12 cate.

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

14 of, secondary school education (as determined under

15 State law) and postsecondary education, and place16 ment and retention in employment and in military

17 service, including for the populations described in

18 section 124(c)(16).

19 (6) Participation in and completion of nontradi20 tional vocational education programs.

21 (7) Other performance measures as determined

22 by the Secretary.

23 (b) EXPECTED LEVELS OF PERFORMANCE.—In de24 veloping a State plan, each eligible agency shall negotiate
40

•S 1186 RS

1 with the Secretary the expected levels of performance for

2 the performance measures described in subsection (a).

3 SEC. 113. ASSISTANCE FOR THE OUTLYING AREAS.

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

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

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

7 $500,000 to Guam for vocational education and

8 training for the purpose of providing direct edu9 cational services related to vocational education, in10 cluding—

11 (A) teacher and counselor training and re12 training;

13 (B) curriculum development; and

14 (C) improving vocational education pro15 grams in secondary schools and institutions of

16 higher education, or improving cooperative edu17 cation programs involving both secondary

18 schools and institutions of higher education;

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

20 $600,000 to the United States Virgin Islands for vo21 cational education for the purpose described in para22 graph (1); and

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

24 $190,000 to each of American Samoa and the Com25 monwealth of the Northern Mariana Islands for vo-
41

•S 1186 RS

1 cational education for the purpose described in para2 graph (1).

3 (b) SPECIAL RULE.—

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

5 section 111(a)(1)(A) and not awarded under sub6 section (a), the Secretary shall make available the

7 amount awarded to the Republic of the Marshall Is8 lands, the Federated States of Micronesia, and the

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

10 Perkins Vocational and Applied Technology Edu11 cation Act (as such section was in effect on the day

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

13 grants under the succeeding sentence. From the

14 amount made available under the preceding sen15 tence, the Secretary shall award grants, to Guam,

16 American Samoa, the Commonwealth of the North17 ern Mariana Islands, the Republic of the Marshall

18 Islands, the Federated States of Micronesia, or the

19 Republic of Palau for the purpose described in sub20 section (a)(1).

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

22 grants pursuant to paragraph (1) on a competitive

23 basis and pursuant to recommendations from the

24 Pacific Region Educational Laboratory in Honolulu,

25 Hawaii.
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1 (3) TERMINATION OF ELIGIBILITY.—Notwith2 standing any other provision of law, the Republic of

3 the Marshall Islands, the Federated States of Micro4 nesia, and the Republic of Palau shall not receive

5 any funds under this title for any fiscal year that be6 gins after September 30, 2004.

7 (4) ADMINISTRATIVE COSTS.—The Secretary

8 may provide not more than 5 percent of the funds

9 made available for grants under this subsection to

10 pay the administrative costs of the Pacific Region

11 Educational Laboratory regarding activities assisted

12 under this subsection.

13 SEC. 114. INDIAN AND HAWAIIAN NATIVE PROGRAMS.

14 (a) DEFINITIONS; AUTHORITY OF SECRETARY.—

15 (1) DEFINITIONS.—For the purpose of this sec16 tion—

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

18 means the Act entitled ‘‘An Act authorizing the

19 Secretary of the Interior to arrange with States

20 or territories for the education, medical atten21 tion, relief of distress, and social welfare of In22 dians, and for other purposes’’, enacted April

23 16, 1934 (48 Stat. 596; 25 U.S.C. 452 et seq.);

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

25 the meaning given the term in section 1146 of
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•S 1186 RS

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

2 2026); and

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

4 any individual any of whose ancestors were na5 tives, prior to 1778, of the area which now com6 prises the State of Hawaii.

7 (2) AUTHORITY.—From the funds reserved pur8 suant to section 111(a)(1)(B), the Secretary shall

9 award grants and enter into contracts for Indian

10 and Hawaiian native programs in accordance with

11 this section, except that such programs shall not in12 clude secondary school programs in Bureau funded

13 schools.

14 (b) INDIAN PROGRAMS.—

15 (1) AUTHORITY.—

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

17 subparagraph (B), from the funds reserved pur18 suant to section 111(a)(1)(B)(i), the Secretary

19 is directed—

20 (i) upon the request of any Indian

21 tribe, or a tribal organization serving an

22 Indian tribe, which is eligible to contract

23 with the Secretary of the Interior for the

24 administration of programs under the In25 dian Self-Determination Act (25 U.S.C.
44

•S 1186 RS

1 450 et seq.) or under the Act of April 16,

2 1934; or

3 (ii) upon an application received from

4 a Bureau funded school offering post5 secondary or adult education programs

6 filed at such time and under such condi7 tions as the Secretary may prescribe,

8 to make grants to or enter into contracts with

9 any Indian tribe or tribal organization, or to

10 make a grant to such Bureau funded school, as

11 appropriate, to plan, conduct, and administer

12 programs or portions of programs authorized

13 by, and consistent with the purpose of, this

14 title.

15 (B) REQUIREMENTS.—The grants or con16 tracts described in subparagraph (A), shall be

17 subject to the following:

18 (i) TRIBAL ORGANIZATIONS.—Such

19 grants or contracts with any tribal organi20 zation shall be subject to the terms and

21 conditions of section 102 of the Indian

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

23 and shall be conducted in accordance with

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

25 Act of April 16, 1934, which are relevant
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•S 1186 RS

1 to the programs administered under this

2 subsection.

3 (ii) BUREAU FUNDED SCHOOLS.—

4 Such grants to Bureau funded schools

5 shall not be subject to the requirements of

6 the Indian Self-Determination Act (25

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

8 1934.

9 (C) APPLICATION.—Any Indian tribe, trib10 al organization, or Bureau funded school eligi11 ble to receive assistance under this paragraph

12 may apply individually or as part of a consor13 tium with another such Indian tribe, tribal or14 ganization, or Bureau funded school.

15 (D) PERFORMANCE MEASURES AND EVAL16 UATION.—Any Indian tribe, tribal organization,

17 or Bureau funded school that receives assist18 ance under this section shall—

19 (i) establish performance measures

20 and expected level of performance to be

21 achieved by students served under this sec22 tion; and

23 (ii) evaluate the quality and effective24 ness of activities and services provided

25 under this subsection.
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1 (E) MINIMUM.—In the case of a Bureau

2 funded school, the minimum amount of a grant

3 awarded or contract entered into under this sec4 tion shall be $35,000.

5 (F) RESTRICTIONS.—The Secretary may

6 not place upon grants awarded or contracts en7 tered into under this paragraph any restrictions

8 relating to programs other than restrictions

9 that apply to grants made to or contracts en10 tered into with States pursuant to allotments

11 under section 111(a). The Secretary, in award12 ing grants and entering into contracts under

13 this paragraph, shall ensure that the grants and

14 contracts will improve vocational education pro15 grams, and shall give special consideration to—

16 (i) grants or contracts which involve,

17 coordinate with, or encourage tribal eco18 nomic development plans; and

19 (ii) applications from tribally con20 trolled community colleges that—

21 (I) are accredited or are can22 didates for accreditation by a nation23 ally recognized accreditation organiza24 tion as an institution of postsecondary

25 vocational education; or
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1 (II) operate vocational education

2 programs that are accredited or are

3 candidates for accreditation by a na4 tionally recognized accreditation orga5 nization, and issue certificates for

6 completion of vocational education

7 programs.

8 (G) STIPENDS.—

9 (i) IN GENERAL.—Funds received

10 pursuant to grants or contracts described

11 in subparagraph (A) may be used to pro12 vide stipends to students who are enrolled

13 in vocational education programs and who

14 have acute economic needs which cannot be

15 met through work-study programs.

16 (ii) AMOUNT.—Stipends described in

17 clause (i) shall not exceed reasonable

18 amounts as prescribed by the Secretary.

19 (2) MATCHING.—If sufficient funding is avail20 able, the Bureau of Indian Affairs shall expend an

21 amount equal to the amount made available under

22 this subsection, relating to programs for Indians, to

23 pay a part of the costs of programs funded under

24 this subsection. During each fiscal year the Bureau

25 of Indian Affairs shall expend no less than the
48

•S 1186 RS

1 amount expended during the prior fiscal year on vo2 cational education programs, services, and activities

3 administered either directly by, or under contract

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

5 year shall funding for such programs, services, and

6 activities be provided from accounts and programs

7 that support other Indian education programs. The

8 Secretary and the Assistant Secretary of the Interior

9 for Indian Affairs shall prepare jointly a plan for the

10 expenditure of funds made available and for the

11 evaluation of programs assisted under this sub12 section. Upon the completion of a joint plan for the

13 expenditure of the funds and the evaluation of the

14 programs, the Secretary shall assume responsibility

15 for the administration of the program, with the as16 sistance and consultation of the Bureau of Indian

17 Affairs.

18 (3) SPECIAL RULE.—Programs funded under

19 this subsection shall be in addition to such other

20 programs, services, and activities as are made avail21 able to eligible Indians under other provisions of this

22 Act.

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

24 reserved pursuant to section 111(a)(1)(B)(ii), the Sec25 retary is directed, to award grants or enter into contracts
49

•S 1186 RS

1 with organizations primarily serving and representing Ha2 waiian natives which are recognized by the Governor of

3 the State of Hawaii to plan, conduct, and administer pro4 grams, or portions thereof, which are authorized by and

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

6 of Hawaiian natives.

7 SEC. 115. TRIBALLY CONTROLLED POSTSECONDARY VOCA8 TIONAL INSTITUTIONS.

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

10 to provide grants for the operation and improvement of

11 tribally controlled postsecondary vocational institutions to

12 ensure continued and expanded educational opportunities

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

14 expansion of the physical resources of such institutions.

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

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

17 make grants to tribally controlled postsecondary voca18 tional institutions to provide basic support for the voca19 tional education and training of Indian students.

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

21 for assistance under this section a tribally controlled post22 secondary vocational institution shall—

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

24 trustees, a majority of whom are Indians;
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1 (2) demonstrate adherence to stated goals, a

2 philosophy, or a plan of operation which fosters indi3 vidual Indian economic and self-sufficiency oppor4 tunity, including programs that are appropriate to

5 stated tribal goals of developing individual entrepre6 neurships and self-sustaining economic infrastruc7 tures on reservations;

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

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

10 accreditation by a nationally recognized accrediting

11 authority for postsecondary vocational education;

12 and

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

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

15 (d) GRANT REQUIREMENTS.—

16 (1) APPLICATIONS.—Any tribally controlled

17 postsecondary vocational institution that desires to

18 receive a grant under this section shall submit an

19 application to the Secretary. Such application shall

20 include a description of recordkeeping procedures for

21 the expenditure of funds received under this section

22 that will allow the Secretary to audit and monitor

23 programs.
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1 (2) NUMBER.—The Secretary shall award not

2 less than 2 grants under this section for each fiscal

3 year.

4 (3) CONSULTATION.—In awarding grants under

5 this section, the Secretary shall, to the extent prac6 ticable, consult with the boards of trustees of, and

7 the tribal governments chartering, the institutions

8 desiring the grants.

9 (4) LIMITATION.—Amounts made available

10 through grants under this section shall not be used

11 in connection with religious worship or sectarian in12 struction.

13 (e) USES OF GRANTS.—

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

15 to the availability of appropriations, provide for each

16 program year to each tribally controlled vocational

17 institution having an application approved by the

18 Secretary, an amount necessary to pay expenses as19 sociated with—

20 (A) the maintenance and operation of the

21 program, including development costs, costs of

22 basic and special instruction (including special

23 programs for individuals with disabilities and

24 academic instruction), materials, student costs,

25 administrative expenses, boarding costs, trans-
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1 portation, student services, daycare and family

2 support programs for students and their fami3 lies (including contributions to the costs of edu4 cation for dependents), and student stipends;

5 (B) capital expenditures, including oper6 ations and maintenance, and minor improve7 ments and repair, and physical plant mainte8 nance costs, for the conduct of programs fund9 ed under this section; and

10 (C) costs associated with repair, upkeep,

11 replacement, and upgrading of the instructional

12 equipment.

13 (2) ACCOUNTING.—Each institution receiving a

14 grant under this section shall provide annually to

15 the Secretary an accurate and detailed accounting of

16 the institution’s operating and maintenance expenses

17 and such other information concerning costs as the

18 Secretary may reasonably require.

19 (f) EFFECT ON OTHER PROGRAMS.—

20 (1) IN GENERAL.—Except as specifically pro21 vided in this Act, eligibility for assistance under this

22 section shall not preclude any tribally controlled

23 postsecondary vocational institution from receiving

24 Federal financial assistance under any program au25 thorized under the Higher Education Act of 1965
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1 (20 U.S.C. 1001 et seq.) or any other applicable

2 program for the benefit of institutions of higher edu3 cation or vocational education.

4 (2) PROHIBITION ON ALTERATION OF GRANT

5 AMOUNT.—The amount of any grant for which trib6 ally controlled postsecondary vocational institutions

7 are eligible under this section shall not be altered be8 cause of funds allocated to any such institution from

9 funds appropriated under the Act of November 2,

10 1921 (commonly known as the ‘‘Snyder Act’’) (42

11 Stat. 208, chapter 115; 25 U.S.C. 13).

12 (3) PROHIBITION ON CONTRACT DENIAL.—No

13 tribally controlled postsecondary vocational institu14 tion for which an Indian tribe has designated a por15 tion of the funds appropriated for the tribe from

16 funds appropriated under such Act of November 2,

17 1921, may be denied a contract for such portion

18 under the Indian Self-Determination and Education

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

20 provided in that Act), or denied appropriate contract

21 support to administer such portion of the appro22 priated funds.

23 (g) NEEDS ESTIMATE AND REPORT ON FACILITIES

24 AND FACILITIES IMPROVEMENT.—
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1 (1) NEEDS ESTIMATE.—The Secretary shall,

2 based on the most accurate data available from the

3 institutions and Indian tribes whose Indian students

4 are served under this section, and in consideration

5 of employment needs, economic development needs,

6 population training needs, and facilities needs, pre7 pare an actual budget needs estimate for each insti8 tution eligible under this section for each subsequent

9 program year, and submit such budget needs esti10 mate to Congress in such a timely manner as will

11 enable the appropriate committees of Congress to

12 consider such needs data for purposes of the unin13 terrupted flow of adequate appropriations to such in14 stitutions. Such data shall take into account the

15 goals and requirements of the Personal Responsibil16 ity and Work Opportunity Reconciliation Act of

17 1996 (Public Law 104–193; 110 Stat. 2105).

18 (2) STUDY OF TRAINING AND HOUSING

19 NEEDS.—

20 (A) IN GENERAL.—The Secretary shall

21 conduct a detailed study of the training, hous22 ing, and immediate facilities needs of each insti23 tution eligible under this section. The study

24 shall include an examination of—

25 (i) training equipment needs;
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1 (ii) housing needs of families whose

2 heads of households are students and

3 whose dependents have no alternate source

4 of support while such heads of households

5 are students; and

6 (iii) immediate facilities needs.

7 (B) REPORT.—The Secretary shall report

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

9 results of the study required by subparagraph

10 (A).

11 (C) CONTENTS.—The report required by

12 subparagraph (B) shall include the number,

13 type, and cost of meeting the needs described in

14 subparagraph (A), and rank each institution by

15 relative need.

16 (D) PRIORITY.—In conducting the study

17 required by subparagraph (A), the Secretary

18 shall give priority to institutions that are receiv19 ing assistance under this section.

20 (3) LONG-TERM STUDY OF FACILITIES.—

21 (A) IN GENERAL.—The Secretary shall

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

23 the facilities of each institution eligible for as24 sistance under this section.
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1 (B) CONTENTS.—The study required by

2 subparagraph (A) shall include a 5-year projec3 tion of training facilities, equipment, and hous4 ing needs and shall consider such factors as

5 projected service population, employment, and

6 economic development forecasting, based on the

7 most current and accurate data available from

8 the institutions and Indian tribes affected.

9 (B) SUBMISSION.—The Secretary shall

10 submit to Congress a detailed report on the re11 sults of such study not later than the end of the

12 18-month period beginning on the date of en13 actment of this Act.

14 (h) DEFINITIONS.—For the purposes of this section:

15 (1) INDIAN; INDIAN TRIBE.—The terms ‘‘In16 dian’’ and ‘‘Indian tribe’’ have the meaning given

17 such terms in section 2 of the Tribally Controlled

18 Community College Assistance Act of 1978 (25

19 U.S.C. 1801).

20 (2) TRIBALLY CONTROLLED POSTSECONDARY

21 VOCATIONAL INSTITUTION.—The term ‘‘tribally con22 trolled postsecondary vocational institution’’ means

23 an institution of higher education that—
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1 (A) is formally controlled, or has been for2 mally sanctioned or chartered by the governing

3 body of an Indian tribe or tribes; and

4 (B) offers technical degrees or certificate

5 granting programs.

6 SEC. 116. 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 title III.

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 CHAPTER 2—STATE PROVISIONS

23 SEC. 121. STATE ADMINISTRATION.

24 Each eligible agency shall be responsible for the State

25 administration of activities under this subtitle, including—
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1 (1) the development, submission, and implemen2 tation of the State plan;

3 (2) the efficient and effective performance of

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

5 (3) consultation with other appropriate agen6 cies, groups, and individuals that are involved in the

7 development and implementation of activities as8 sisted under this subtitle, such as employers, par9 ents, students, teachers, labor organizations, State

10 and local elected officials, and local program admin11 istrators.

12 SEC. 122. STATE USE OF FUNDS.

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

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

15 agency shall reserve—

16 (1) not more than 14 percent of the funds to

17 carry out section 123;

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

19 $300,000, whichever is greater, of which—

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

21 technical assistance and advice to local edu22 cational agencies, postsecondary educational in23 stitutions, and other interested parties in the

24 State for gender equity activities; and

25 (B) the remainder may be used to—
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1 (i) develop the State plan;

2 (ii) review local applications;

3 (iii) monitor and evaluate program ef4 fectiveness;

5 (iv) provide technical assistance; and

6 (v) assure compliance with all applica7 ble Federal laws, including required serv8 ices and activities for individuals who are

9 members of populations described in sec10 tion 124(c)(16); and

11 (3) 1 percent of the funds, or the amount the

12 State expended under the Carl D. Perkins Voca13 tional and Applied Technology Education Act (20

14 U.S.C. 2301 et seq.) for vocational education pro15 grams for criminal offenders for the fiscal year

16 1997, whichever is greater, to carry out programs

17 for criminal offenders.

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

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

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

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

22 sections 131 and 132.

23 (c) MATCHING REQUIREMENT.—Each eligible agency

24 receiving funds under this subtitle shall match, from non-
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1 Federal sources and on a dollar-for-dollar basis, the funds

2 received under subsection (a)(2).

3 SEC. 123. STATE LEADERSHIP ACTIVITIES.

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

5 funds reserved under section 122(a)(1) to conduct pro6 grams, services, and activities that further the develop7 ment, implementation, and improvement of vocational

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

9 maximum extent possible, with challenging State academic

10 standards, including—

11 (1) providing comprehensive professional devel12 opment (including initial teacher preparation) for vo13 cational, academic, guidance, and administrative

14 personnel, that—

15 (A) will help the teachers and personnel to

16 meet the expected levels of performance estab17 lished under section 112;

18 (B) reflects the eligible agency’s assess19 ment of the eligible agency’s needs for profes20 sional development; and

21 (C) is integrated with the professional de22 velopment activities that the State carries out

23 under title II of the Elementary and Secondary

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

25 seq.);
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1 (2) developing and disseminating curricula that

2 are aligned, as appropriate, with challenging State

3 academic standards, and vocational and techno4 logical skills;

5 (3) monitoring and evaluating the quality of,

6 and improvement in, activities conducted with assist7 ance under this subtitle;

8 (4) promoting gender equity in secondary and

9 postsecondary vocational education;

10 (5) supporting tech-prep education activities;

11 (6) improving and expanding the use of tech12 nology in instruction;

13 (7) supporting partnerships among local edu14 cational agencies, institutions of higher education,

15 adult education providers, and, as appropriate, other

16 entities, such as employers, labor organizations, par17 ents, and local partnerships, to enable students to

18 achieve to challenging State academic standards,

19 and vocational and technological skills; and

20 (8) serving individuals in State institutions,

21 such as State correctional institutions and institu22 tions that serve individuals with disabilities.

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

24 funds reserved under section 122(a)(1) for—
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1 (1) improving guidance and counseling pro2 grams that assist students in making informed edu3 cation and vocational decisions;

4 (2) supporting vocational student organizations,

5 especially with respect to efforts to increase the par6 ticipation of students who are members of popu7 lations described in section 124(c)(16);

8 (3) providing vocational education programs for

9 adults and school dropouts to complete their second10 ary school education; and

11 (4) providing assistance to students who have

12 participated in services and activities under this sub13 title in finding an appropriate job and continuing

14 their education.

15 SEC. 124. STATE PLAN.

16 (a) STATE PLAN.—

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

18 assistance under this subtitle for any fiscal year

19 shall prepare and submit to the Secretary a State

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

21 revisions as the eligible agency determines to be nec22 essary.

23 (2) COORDINATION.—The period required by

24 paragraph (1) shall be coordinated with the period

25 covered by the State plan described in section 304.
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1 (3) HEARING PROCESS.—The eligible agency

2 shall conduct public hearings in the State, after ap3 propriate and sufficient notice, for the purpose of af4 fording all segments of the public and interested or5 ganizations and groups (including employers, labor

6 organizations, and parents), an opportunity to

7 present their views and make recommendations re8 garding the State plan. A summary of such rec9 ommendations and the eligible agency’s response to

10 such recommendations shall be included with the

11 State plan.

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

13 shall develop the State plan with representatives of sec14 ondary and postsecondary vocational education, and busi15 ness, in the State and shall also consult the Governor of

16 the State.

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

18 include information that—

19 (1) describes the vocational education activities

20 to be assisted that are designed to meet and reach

21 the State performance measures;

22 (2) describes the integration of academic edu23 cation with vocational education, and with techno24 logical education related to vocational education;
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1 (3) describes how the eligible agency will

2 disaggregate data relating to students participating

3 in vocational education in order to adequately meas4 ure the progress of the students;

5 (4) describes how the eligible agency will ade6 quately address the needs of students in alternative

7 education programs;

8 (5) describes how the eligible agency will pro9 vide local educational agencies, area vocational edu10 cation schools, and eligible institutions in the State

11 with technical assistance;

12 (6) describes how the eligible agency will en13 courage the participation of the parents of secondary

14 school students who are involved in vocational edu15 cation activities;

16 (7) identifies how the eligible agency will obtain

17 the active participation of business, labor organiza18 tions, and parents in the development and improve19 ment of vocational education activities carried out by

20 the eligible agency;

21 (8) describes how vocational education is

22 aligned with State and regional employment oppor23 tunities;

24 (9) describes the methods proposed for the joint

25 planning and coordination of programs carried out
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1 under this subtitle with other Federal education pro2 grams;

3 (10) describes how funds will be used to pro4 mote gender equity in secondary and postsecondary

5 vocational education;

6 (11) describes how funds will be used to im7 prove and expand the use of technology in instruc8 tion;

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

10 individuals in State correctional institutions;

11 (13) describes how funds will be used effectively

12 to link secondary and postsecondary education;

13 (14) describes how funds will be allocated and

14 used at the secondary and postsecondary level, any

15 consortia that will be formed among secondary

16 schools and eligible institutions, and how funds will

17 be allocated among the members of the consortia;

18 (15) describes how the eligible agency will en19 sure that the data reported to the eligible agency

20 from local educational agencies and eligible institu21 tions under this subtitle and the data the eligible

22 agency reports to the Secretary are complete, accu23 rate, and reliable;
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1 (16) describes how the eligible agency will de2 velop program strategies for populations that in3 clude, at a minimum—

4 (A) low-income individuals, including foster

5 children;

6 (B) individuals with disabilities;

7 (C) single parents and displaced home8 makers; and

9 (D) individuals with multiple barriers to

10 educational enhancement; and

11 (17) contains the description and information

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

13 304(b) concerning postsecondary students and

14 school dropouts.

15 (d) PLAN APPROVAL.—

16 (1) IN GENERAL.—The Secretary shall approve

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

18 plan, only if the Secretary determines that—

19 (A) the State plan, or revision, respec20 tively, meets the requirements of this section;

21 and

22 (B) the State’s performance measures and

23 expected levels of performance under section

24 112 are sufficiently rigorous to meet the pur25 pose of this title.
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1 (2) DISAPPROVAL.—The Secretary shall not fi2 nally disapprove a State plan, except after giving the

3 eligible agency notice and an opportunity for a hear4 ing.

5 (3) PEER REVIEW.—The Secretary shall estab6 lish a peer review process to make recommendations

7 regarding approval of State plans and revisions to

8 State plans.

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

10 approved if the Secretary has not responded to the

11 eligible agency regarding the plan within 90 days of

12 the date the Secretary receives the plan.

13 (e) ELIGIBLE AGENCY REPORT.—

14 (1) IN GENERAL.—The eligible agency shall an15 nually report to the Secretary regarding—

16 (A) the quality and effectiveness of the

17 programs, services, and activities, assisted

18 under this subtitle, based on the performance

19 measures and expected levels of performance

20 described in section 112; and

21 (B) the progress each population of indi22 viduals described in section 124(c)(16) is mak23 ing toward achieving the expected levels of per24 formance.
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1 (2) CONTENTS.—The eligible agency report

2 also—

3 (A) shall include such information, in such

4 form, as the Secretary may reasonably require,

5 in order to ensure the collection of uniform

6 data; and

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

8 CHAPTER 3—LOCAL PROVISIONS

9 SEC. 131. DISTRIBUTION FOR SECONDARY SCHOOL VOCA10 TIONAL EDUCATION.

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

12 this section, each eligible agency shall distribute the por13 tion of the funds made available for secondary school voca14 tional education activities under section 122(b) for any fis15 cal year to local educational agencies within the State as

16 follows:

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

18 such portion, each local educational agency shall be

19 allocated an amount that bears the same relation20 ship to such 70 percent as the amount such local

21 educational agency was allocated under section 1124

22 of the Elementary and Secondary Education Act of

23 1965 (20 U.S.C. 6333) for the preceding fiscal year

24 bears to the total amount received under such sec-
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1 tion by all local educational agencies in the State for

2 such year.

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

4 such portion, each local educational agency shall be

5 allocated an amount that bears the same relation6 ship to such 20 percent as the number of students

7 with disabilities who have individualized education

8 programs under section 614(d) of the Individuals

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

10 served by such local educational agency for the pre11 ceding fiscal year bears to the total number of such

12 students served by all local educational agencies in

13 the State for such year.

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

15 portion, each local educational agency shall be allo16 cated an amount that bears the same relationship to

17 such 10 percent as the number of students enrolled

18 in schools and adults enrolled in training programs

19 under the jurisdiction of such local educational agen20 cy for the preceding fiscal year bears to the number

21 of students enrolled in schools and adults enrolled in

22 training programs under the jurisdiction of all local

23 educational agencies in the State for such year.

24 (b) MINIMUM ALLOCATION.—
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), no local educational agency shall receive

3 an allocation under subsection (a) unless the amount

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

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

6 enter into a consortium with other local educational

7 agencies for purposes of meeting the minimum allo8 cation requirement of this paragraph.

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

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

11 which the local educational agency—

12 (A) is located in a rural, sparsely popu13 lated area; and

14 (B) demonstrates that such agency is un15 able to enter into a consortium for purposes of

16 providing services under this section.

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

18 allocated by reason of paragraph (1) or (2) shall be

19 reallocated to local educational agencies that meet

20 the requirements of paragraph (1) or (2) in accord21 ance with the provisions of this section.

22 (c) LIMITED JURISDICTION AGENCIES.—

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

24 subsection (a), no eligible agency receiving assistance

25 under this subtitle shall allocate funds to a local
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1 educational agency that serves only elementary

2 schools, but shall distribute such funds to the local

3 educational agency or regional educational agency

4 that provides secondary school services to secondary

5 school students in the same attendance area.

6 (2) SPECIAL RULE.—The amount to be allo7 cated under paragraph (1) to a local educational

8 agency that has jurisdiction only over secondary

9 schools shall be determined based on the number of

10 students that entered such secondary schools in the

11 previous year from the elementary schools involved.

12 (d) ALLOCATIONS TO AREA VOCATIONAL EDUCATION

13 SCHOOLS AND EDUCATIONAL SERVICE AGENCIES.—

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

15 distribute the portion of funds made available for

16 any fiscal year by such entity for secondary school

17 vocational education activities under section 122(b)

18 to the appropriate area vocational education school

19 or educational service agency in any case in which—

20 (A) the area vocational education school or

21 educational service agency, and the local edu22 cational agency concerned—

23 (i) have formed or will form a consor24 tium for the purpose of receiving funds

25 under this section; or
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1 (ii) have entered into or will enter into

2 a cooperative arrangement for such pur3 pose; and

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

5 or educational service agency serves an approxi6 mately equal or greater proportion of students

7 who are individuals with disabilities or are low8 income than the proportion of such students at9 tending the secondary schools under the juris10 diction of all of the local educational agencies

11 sending students to the area vocational edu12 cation school or the educational service agency;

13 or

14 (ii) the area vocational education school,

15 educational service agency, or local educational

16 agency demonstrates that the vocational edu17 cation school or educational service agency is

18 unable to meet the criterion described in clause

19 (i) due to the lack of interest by students de20 scribed in clause (i) in attending vocational edu21 cation programs in that area vocational edu22 cation school or educational service agency.

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

24 education school or educational service agency meets

25 the requirements of paragraph (1), then—
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1 (A) the amount that will otherwise be dis2 tributed to the local educational agency under

3 this section shall be allocated to the area voca4 tional education school, the educational service

5 agency, and the local educational agency, based

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

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

8 are attending vocational education programs

9 (based, if practicable, on the average enrollment

10 for the prior 3 years); or

11 (B) such amount may be allocated on the

12 basis of an agreement between the local edu13 cational agency and the area vocational edu14 cation school or educational service agency.

15 (3) STATE DETERMINATION.—

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

17 this subsection, the eligible agency may deter18 mine the number of students who are low-in19 come on the basis of—

20 (i) eligibility for—

21 (I) free or reduced-price meals

22 under the National School Lunch Act

23 (7 U.S.C. 1751 et seq.);
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1 (II) assistance under a State pro2 gram funded under part A of title IV

3 of the Social Security Act;

4 (III) benefits under the Food

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

6 seq.); or

7 (IV) services under title I of the

8 Elementary and Secondary Education

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

10 and

11 (ii) another index of economic status,

12 including an estimate of such index, if the

13 eligible agency demonstrates to the satis14 faction of the Secretary that such index is

15 a more representative means of determin16 ing such number.

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

18 use more than 1 factor described in subpara19 graph (A) for purposes of making the deter20 mination described in such subparagraph, the

21 eligible agency shall ensure that the data used

22 is not duplicative.

23 (4) APPEALS PROCEDURE.—The eligible agency

24 shall establish an appeals procedure for resolution of

25 any dispute arising between a local educational
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1 agency and an area vocational education school or

2 an educational service agency with respect to the al3 location procedures described in this section, includ4 ing the decision of a local educational agency to

5 leave a consortium.

6 (5) SPECIAL RULE.—Notwithstanding the pro7 visions of paragraphs (1), (2), (3), and (4), any local

8 educational agency receiving an allocation that is not

9 sufficient to conduct a secondary school vocational

10 education program of sufficient size, scope, and

11 quality to be effective may—

12 (A) form a consortium or enter into a co13 operative agreement with an area vocational

14 education school or educational service agency

15 offering secondary school vocational education

16 programs of sufficient size, scope, and quality

17 to be effective and that are accessible to stu18 dents who are individuals with disabilities or

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

20 educational agency; and

21 (B) transfer such allocation to the area vo22 cational education school or educational service

23 agency.

24 (e) SPECIAL RULE.—Each eligible agency distribut25 ing funds under this section shall treat a secondary school
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1 funded by the Bureau of Indian Affairs within the State

2 as if such school were a local educational agency within

3 the State for the purpose of receiving a distribution under

4 this section.

5 SEC. 132. DISTRIBUTION FOR POSTSECONDARY VOCA6 TIONAL EDUCATION.

7 (a) DISTRIBUTION.—

8 (1) IN GENERAL.—Except as otherwise pro9 vided in this section, each eligible agency shall dis10 tribute the portion of funds made available for post11 secondary vocational education under section 122(b)

12 for any fiscal year to eligible institutions within the

13 State in accordance with paragraph (2).

14 (2) ALLOCATION.—Each eligible institution in

15 the State having an application approved under sec16 tion 134 for a fiscal year shall be allocated an

17 amount that bears the same relationship to the

18 amount of funds made available for postsecondary

19 vocational education under section 122(b) for the

20 fiscal year as the number of Pell Grant recipients

21 and recipients of assistance from the Bureau of In22 dian Affairs enrolled for the preceding fiscal year by

23 such eligible institution in vocational education pro24 grams that do not exceed 2 years in duration bears
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1 to the number of such recipients enrolled in such

2 programs within the State for such fiscal year.

3 (3) MINIMUM ALLOCATION.—

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

5 subparagraph (B), no eligible institution shall

6 receive an allocation under paragraph (2) un7 less the amount allocated to the eligible institu8 tion under paragraph (2) is not less than

9 $65,000.

10 (B) WAIVER.—The eligible agency may

11 waive the application of subparagraph (A) in

12 any case in which the eligible institution is lo13 cated in a rural, sparsely populated area.

14 (C) REALLOCATION.—Any amounts that

15 are not allocated by reason of subparagraph (A)

16 or (B) shall be reallocated to eligible institu17 tions that meet the requirements of subpara18 graph (A) or (B) in accordance with the provi19 sions of this section.

20 (4) DEFINITION OF PELL GRANT RECIPIENT.—

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

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

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

24 1070a).
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1 (b) ALTERNATIVE ALLOCATION.—An eligible agency

2 may allocate funds made available for postsecondary edu3 cation under section 122(b) for a fiscal year using an al4 ternative formula if the eligible agency demonstrates to

5 the Secretary’s satisfaction that—

6 (1) the alternative formula better meets the

7 purpose of this title; and

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

9 does not result in an allocation of funds to the eligi10 ble institutions that serve the highest numbers or

11 percentages of low-income students; and

12 (B) the alternative formula will result in such

13 a distribution.

14 SEC. 133. LOCAL ACTIVITIES.

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

16 educational agency or an eligible institution under this

17 subtitle shall be used—

18 (1) to conduct vocational education programs,

19 and technological education programs related to vo20 cational education, that further student achievement;

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

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

23 (3) to integrate academic education with voca24 tional education for students participating in voca25 tional education;
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1 (4) to link secondary education (as determined

2 under State law) and postsecondary education, in3 cluding implementing tech-prep programs;

4 (5) to provide professional development activi5 ties to teachers, counselors, and administrators, in6 cluding—

7 (A) inservice and preservice training in

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

9 (B) internship programs that provide busi10 ness experience to teachers; and

11 (C) programs designed to train teachers

12 specifically in the use and application of tech13 nology;

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

15 in vocational instruction, including professional de16 velopment in the use of technology, which may in17 clude distance learning;

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

19 vocational education programs;

20 (8) to provide access to quality vocational edu21 cation programs for students, including students

22 who are members of the populations described in

23 section 124(c)(16);

24 (9) to develop and implement performance man25 agement systems and evaluations; and
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1 (10) to promote gender equity in secondary and

2 postsecondary vocational education.

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

4 educational agency or an eligible institution under this

5 subtitle may be used—

6 (1) to carry out student internships;

7 (2) to provide guidance and counseling for stu8 dents participating in vocational education pro9 grams;

10 (3) to provide vocational education programs

11 for adults and school dropouts to complete their sec12 ondary school education;

13 (4) to acquire and adapt equipment, including

14 instructional aids;

15 (5) to support vocational student organizations;

16 (6) to provide assistance to students who have

17 participated in services and activities under this sub18 title in finding an appropriate job and continuing

19 their education; and

20 (7) to support other activities that are consist21 ent with the purpose of this title.

22 SEC. 134. LOCAL APPLICATION.

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

24 eligible institution desiring assistance under this subtitle

25 shall submit an application to the eligible agency at such
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1 time, in such manner, and accompanied by such informa2 tion as the eligible agency (in consultation with such other

3 educational entities as the eligible agency determines to

4 be appropriate) may require.

5 (b) CONTENTS.—Each application shall, at a mini6 mum—

7 (1) describe how the vocational education activi8 ties will be carried out pertaining to meeting the ex9 pected levels of performance;

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

11 independently evaluate and continuously improve the

12 performance of the local educational agency or eligi13 ble institution, as appropriate; and

14 (3) describe how the local educational agency or

15 eligible institution, as appropriate, will consult with

16 students, parents, business, labor organizations, and

17 other interested individuals, in carrying out activities

18 under this subtitle.

19 Subtitle B—Tech-Prep Education

20 SEC. 151. SHORT TITLE.

21 This subtitle may be cited as the ‘‘Tech-Prep Edu22 cation Act’’.

23 SEC. 152. PURPOSES.

24 The purposes of this subtitle are—
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1 (1) to provide implementation grants to consor2 tia of local educational agencies, postsecondary edu3 cational institutions, and employers or labor organi4 zations, for the development and operation of pro5 grams designed to provide a tech-prep education

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

7 year certificate;

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

9 comprehensive links among secondary schools, post10 secondary educational institutions, and local or re11 gional employers, or labor organizations; and

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

13 and applied teaching and curriculum based on each

14 State’s academic, occupational, and employability

15 standards.

16 SEC. 153. DEFINITIONS.

17 (a) In this subtitle:

18 (1) ARTICULATION AGREEMENT.—The term

19 ‘‘articulation agreement’’ means a written commit20 ment to a program designed to provide students with

21 a non duplicative sequence of progressive achieve22 ment leading to degrees or certificates in a tech-prep

23 education program.

24 (2) COMMUNITY COLLEGE.—The term ‘‘commu25 nity college’’—
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1 (A) has the meaning provided in section

2 1201(a) of the Higher Education Act of 1965

3 (20 U.S.C. 1141) for an institution which pro4 vides not less than a 2-year program which is

5 acceptable for full credit toward a bachelor’s de6 gree; and

7 (B) includes tribally controlled community

8 colleges.

9 (3) TECH-PREP PROGRAM.—The term ‘‘tech10 prep program’’ means a program of study that—

11 (A) combines at a minimum 2 years of sec12 ondary education (as determined under State

13 law) and a minimum 2 years of postsecondary

14 education in a nonduplicative, sequential course

15 of study;

16 (B) integrates academic and vocational in17 struction, and utilizes work-based and worksite

18 learning where appropriate and available;

19 (C) provides technical preparation in a ca20 reer field such as engineering technology, ap21 plied science, a mechanical, industrial, or prac22 tical art or trade, agriculture, health occupa23 tions, business, or applied economics;

24 (D) builds student competence in mathe25 matics, science, communications, economics,
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1 and workplace skills, through applied, contex2 tual academics, and integrated instruction in a

3 coherent sequence of courses;

4 (E) leads to an associate or a bacca5 laureate degree or a certificate in a specific ca6 reer field; and

7 (F) leads to placement in appropriate em8 ployment or further education.

9 SEC. 154. PROGRAM AUTHORIZED.

10 (a) DISCRETIONARY AMOUNTS.—

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

12 which the amount appropriated under section 158 to

13 carry out this subtitle is equal to or less than

14 $50,000,000, the Secretary shall award grants for

15 tech-prep education programs to consortia of—

16 (A) local educational agencies, intermedi17 ate educational agencies or area vocational edu18 cation schools serving secondary school stu19 dents, or secondary schools funded by the Bu20 reau of Indian Affairs;

21 (B)(i) nonprofit institutions of higher edu22 cation that offer—

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

24 or a 2-year certificate program, and are

25 qualified as institutions of higher education
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1 pursuant to section 481(a) of the Higher

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

3 1088(a)), including institutions receiving

4 assistance under the Tribally Controlled

5 Community College Assistance Act of 1978

6 (25 U.S.C. 1801 et seq.) and tribally con7 trolled postsecondary vocational institu8 tions; or

9 (II) a 2-year apprenticeship program

10 that follows secondary instruction,

11 if such nonprofit institutions of higher edu12 cation are not prohibited from receiving assist13 ance under part B of the Higher Education Act

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

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

16 (20 U.S.C. 1083(a)); or

17 (ii) proprietary institutions of higher edu18 cation which offer a 2-year associate degree

19 program and which are qualified as institutions

20 of higher education pursuant to section 481(a)

21 of the Higher Education Act of 1965 (20

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

23 of higher education are not subject to a default

24 management plan required by the Secretary; or

25 (C) employers or labor organizations.
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1 (2) SPECIAL RULE.—A consortium described in

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

3 higher education that award baccalaureate degrees.

4 (b) STATE GRANTS.—

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

6 which the amount made available under section 158

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

8 Secretary shall allot such amount among the States

9 in the same manner as funds are allotted to States

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

11 (2) PAYMENTS TO ELIGIBLE AGENCIES.—The

12 Secretary shall make a payment in the amount of a

13 State’s allotment under this paragraph to the eligi14 ble agency that serves the State and has an applica15 tion approved under paragraph (4).

16 (3) AWARD BASIS.—From amounts made avail17 able to each eligible agency under this subsection,

18 the eligible agency shall award grants, on a competi19 tive basis or on the basis of a formula determined

20 by the eligible agency, for tech-prep education pro21 grams to consortia described in subsection (a).

22 (4) STATE APPLICATION.—Each eligible agency

23 desiring assistance under this subtitle shall submit

24 an application to the Secretary at such time, in such
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1 manner, and accompanied by such information as

2 the Secretary may require.

3 SEC. 155. TECH-PREP EDUCATION PROGRAMS.

4 (a) GENERAL AUTHORITY.—Each consortium shall

5 use amounts provided through the grant to develop and

6 operate a tech-prep education program.

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

8 program shall—

9 (1) be carried out under an articulation agree10 ment between the participants in the consortium;

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

12 school preceding graduation and 2 years or more of

13 higher education, or an apprenticeship program of at

14 least 2 years following secondary instruction, with a

15 common core of required proficiency in mathematics,

16 science, communications, and technologies designed

17 to lead to an associate or baccalaureate degree or a

18 certificate in a specific career field;

19 (3) include the development of tech-prep edu20 cation program curricula for both secondary and

21 postsecondary levels that—

22 (A) meets challenging academic standards

23 developed by the State;

24 (B) links secondary schools and 2-year

25 postsecondary institutions, and where possible
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1 and practicable, 4-year institutions of higher

2 education through nonduplicative sequences of

3 courses in career fields;

4 (C) uses, where appropriate and available,

5 work-based or worksite learning in conjunction

6 with business and industry; and

7 (D) uses educational technology and dis8 tance learning, as appropriate, to involve all the

9 consortium partners more fully in the develop10 ment and operation of programs.

11 (4) include a professional development program

12 for academic, vocational, and technical teachers

13 that—

14 (A) is designed to train teachers to effec15 tively implement tech-prep education curricula;

16 (B) provides for joint training for teachers

17 from all participants in the consortium;

18 (C) is designed to ensure that teachers

19 stay current with the needs, expectations, and

20 methods of business and industry;

21 (D) focuses on training postsecondary edu22 cation faculty in the use of contextual and ap23 plied curricula and instruction; and

24 (E) provides training in the use and appli25 cation of technology;
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1 (5) include training programs for counselors de2 signed to enable counselors to more effectively—

3 (A) make tech-prep education opportuni4 ties known to students interested in such activi5 ties;

6 (B) ensure that such students successfully

7 complete such programs;

8 (C) ensure that such students are placed in

9 appropriate employment; and

10 (D) stay current with the needs, expecta11 tions, and methods of business and industry;

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

13 technical preparation programs to individuals who

14 are members of populations described in section

15 124(c)(16), including the development of tech-prep

16 education program services appropriate to the needs

17 of such individuals; and

18 (7) provide for preparatory services that assist

19 all participants in such programs.

20 (c) ADDITIONAL AUTHORIZED ACTIVITIES.—Each

21 such tech-prep program may—

22 (1) provide for the acquisition of tech-prep edu23 cation program equipment;

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

25 acquire technical assistance from State or local enti-
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1 ties that have successfully designed, established and

2 operated tech-prep programs;

3 (3) acquire technical assistance from State or

4 local entities that have designed, established, and op5 erated tech-prep programs that have effectively used

6 educational technology and distance learning in the

7 delivery of curricula and services and in the articula8 tion process; and

9 (4) establish articulation agreements with insti10 tutions of higher education, labor organizations, or

11 businesses located outside of the State served by the

12 consortium, especially with regard to using distance

13 learning and educational technology to provide for

14 the delivery of services and programs.

15 SEC. 156. APPLICATIONS.

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

17 receive a grant under this subtitle shall submit an applica18 tion to the Secretary or the eligible agency, as appropriate,

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

20 eligible agency, as appropriate, shall prescribe.

21 (b) THREE-YEAR PLAN.—Each application submit22 ted under this section shall contain a 3-year plan for the

23 development and implementation of activities under this

24 subtitle.
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1 (c) APPROVAL.—The Secretary or the eligible agency,

2 as appropriate, shall approve applications based on the po3 tential of the activities described in the application to cre4 ate an effective tech-prep education program described in

5 section 155.

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

7 eligible agency, as appropriate, shall give special consider8 ation to applications that—

9 (1) provide for effective employment placement

10 activities or the transfer of students to 4-year insti11 tutions of higher education;

12 (2) are developed in consultation with 4-year in13 stitutions of higher education;

14 (3) address effectively the needs of populations

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

16 (4) provide education and training in areas or

17 skills where there are significant workforce short18 ages, including the information technology industry;

19 and

20 (5) demonstrate how tech-prep programs will

21 help students meet high academic and employability

22 competencies.

23 (e) EQUITABLE DISTRIBUTION OF ASSISTANCE.—In

24 awarding grants under this subtitle, the Secretary shall

25 ensure an equitable distribution of assistance among
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1 States, and the Secretary or the eligible agency, as appro2 priate, shall ensure an equitable distribution of assistance

3 between urban and rural consortium participants.

4 (f) NOTICE.—

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

6 awarded by the Secretary, each consortium that sub7 mits an application under this section shall provide

8 notice of such submission and a copy of such appli9 cation to the State educational agency and the State

10 agency for higher education of the State in which

11 the consortium is located.

12 (2) NOTIFICATION.—The Secretary shall notify

13 the State educational agency and the State agency

14 for higher education of a State each time a consor15 tium located in the State is selected to receive a

16 grant under this subtitle.

17 SEC. 157. AUTHORIZATION OF APPROPRIATIONS.

18 There are authorized to be appropriated to carry out

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

20 the fiscal years 1999 through 2004.

21 Subtitle C—General Provisions

22 SEC. 161. ADMINISTRATIVE PROVISIONS.

23 (a) SUPPLEMENT NOT SUPPLANT.—Funds made

24 available under this title for vocational education activities

25 shall supplement, and shall not supplant, other public
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1 funds expended to carry out vocational education and

2 tech-prep activities.

3 (b) MAINTENANCE OF EFFORT.—

4 (1) DETERMINATION.—No payments shall be

5 made under this title for any fiscal year to an eligi6 ble agency for vocational education or tech-prep ac7 tivities unless the Secretary determines that the fis8 cal effort per student or the aggregate expenditures

9 of the State for vocational education for the fiscal

10 year preceding the fiscal year for which the deter11 mination is made, equaled or exceeded such effort or

12 expenditures for vocational education for the second

13 fiscal year preceding the fiscal year for which the de14 termination is made.

15 (2) WAIVER.—The Secretary may waive the re16 quirements of this section, with respect to not more

17 than 5 percent of expenditures by any eligible agen18 cy for 1 fiscal year only, on making a determination

19 that such waiver would be equitable due to excep20 tional or uncontrollable circumstances affecting the

21 ability of the applicant to meet such requirements,

22 such as a natural disaster or an unforeseen and pre23 cipitous decline in financial resources. No level of

24 funding permitted under such a waiver may be used

25 as the basis for computing the fiscal effort or aggre-
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1 gate expenditures required under this section for

2 years subsequent to the year covered by such waiver.

3 The fiscal effort or aggregate expenditures for the

4 subsequent years shall be computed on the basis of

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

6 have been required.

7 (c) REPRESENTATION.—The eligible agency shall

8 provide representation to the statewide partnership.

9 SEC. 162. EVALUATION, IMPROVEMENT, AND ACCOUNT10 ABILITY.

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

12 evaluate annually the vocational education and tech-prep

13 activities of each local educational agency or eligible insti14 tution receiving assistance under this title, using the per15 formance measures established under section 112.

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

17 the evaluation, an eligible agency determines that a local

18 educational agency or eligible institution is not making

19 substantial progress in achieving the purpose of this title,

20 the eligible agency may work jointly with the local edu21 cational agency or eligible institution, respectively, to de22 velop an improvement plan. If, after not more than 2 years

23 of implementation of the improvement plan, the eligible

24 agency determines that the local educational agency or eli25 gible institution, respectively, is not making substantial
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1 progress, the eligible agency shall take whatever corrective

2 action the eligible agency deems necessary, which may in3 clude termination of funding or the implementation of al4 ternative service arrangements, consistent with State law.

5 The eligible agency shall take corrective action under the

6 preceding sentence only after the eligible agency has pro7 vided technical assistance to the local educational agency

8 or eligible institution and shall ensure, to the extent prac9 ticable, that any corrective action the eligible agency takes

10 allows for continued services to and activities for individ11 uals served by the local educational agency or eligible in12 stitution, respectively.

13 (c) TECHNICAL ASSISTANCE.—If the Secretary deter14 mines that an eligible agency is not properly implementing

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

16 is not making substantial progress in meeting the purpose

17 of this title, based on the performance measures and ex18 pected levels of performance under section 112 included

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

20 work with the eligible agency to implement improvement

21 activities.

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

23 a reasonable time, but not earlier than 1 year after imple24 menting activities described in subsection (c), the Sec25 retary determines that the eligible agency is not making
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1 sufficient progress, based on the eligible agency’s perform2 ance measures and expected levels of performance, the

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

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

5 eligible agency’s grant funds under this subtitle. The Sec6 retary may use funds withheld under the preceding sen7 tence to provide, through alternative arrangements, serv8 ices, and activities within the State to meet the purpose

9 of this title.

10 SEC. 163. NATIONAL ACTIVITIES.

11 The Secretary may, directly or through grants, con12 tracts, or cooperative agreements, carry out research, de13 velopment, dissemination, evaluation, capacity-building,

14 and technical assistance activities that carry out the pur15 pose of this title.

16 SEC. 164. NATIONAL ASSESSMENT OF VOCATIONAL EDU17 CATION PROGRAMS.

18 (a) IN GENERAL.—The Secretary shall conduct a na19 tional assessment of vocational education programs as20 sisted under this title, through studies and analyses con21 ducted independently through competitive awards.

22 (b) INDEPENDENT ADVISORY PANEL.—The Sec23 retary shall appoint an independent advisory panel, con24 sisting of vocational education administrators, educators,

25 researchers, and representatives of labor organizations,
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1 business, parents, guidance and counseling professionals,

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

3 implementation of such assessment, including the issues

4 to be addressed and the methodology of the studies in5 volved, and the findings and recommendations resulting

6 from the assessment. The panel shall submit to the Com7 mittee on Education and the Workforce of the House of

8 Representatives, the Committee on Labor and Human Re9 sources of the Senate, and the Secretary an independent

10 analysis of the findings and recommendations resulting

11 from the assessment. The Federal Advisory Committee

12 Act (5 U.S.C. App.) shall not apply to the panel estab13 lished under this subsection.

14 (c) CONTENTS.—The assessment required under sub15 section (a) shall include descriptions and evaluations of—

16 (1) the effect of the vocational education pro17 grams assisted under this title on State and tribal

18 administration of vocational education programs and

19 on local vocational education practices, including the

20 capacity of State, tribal, and local vocational edu21 cation systems to address the purpose of this title;

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

23 and local levels to address program improvement in

24 vocational education, including the impact of Federal
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1 allocation requirements (such as within-State dis2 tribution formulas) on the delivery of services;

3 (3) preparation and qualifications of teachers of

4 vocational and academic curricula in vocational edu5 cation programs, as well as shortages of such teach6 ers;

7 (4) participation in vocational education pro8 grams;

9 (5) academic and employment outcomes of vo10 cational education, including analyses of—

11 (A) the extent and success of integration

12 of academic and vocational curricula; and

13 (B) the degree to which vocational edu14 cation is relevant to subsequent employment or

15 participation in postsecondary education;

16 (6) employer involvement in, and satisfaction

17 with, vocational education programs; and

18 (7) the effect of performance measures, and

19 other measures of accountability, on the delivery of

20 vocational education services.

21 (d) CONSULTATION.—

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

23 with the Committee on Education and the Workforce

24 of the House of Representatives and the Committee

25 on Labor and Human Resources of the Senate in
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1 the design and implementation of the assessment re2 quired under subsection (a).

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

4 the Committee on Education and the Workforce of

5 the House of Representatives, the Committee on

6 Labor and Human Resources of the Senate, and the

7 Secretary—

8 (A) an interim report regarding the assess9 ment on or before July 1, 2001; and

10 (B) a final report, summarizing all studies

11 and analyses that relate to the assessment and

12 that are completed after the assessment, on or

13 before July 1, 2002.

14 (3) PROHIBITION.—Notwithstanding any other

15 provision of law or regulation, the reports required

16 by this subsection shall not be subject to any review

17 outside of the Department of Education before their

18 transmittal to the Committee on Education and the

19 Workforce of the House of Representatives, the

20 Committee on Labor and Human Resources of the

21 Senate, and the Secretary, but the President, the

22 Secretary, and the independent advisory panel estab23 lished under subsection (b) may make such addi24 tional recommendations to Congress with respect to
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1 the assessment as the President, the Secretary, or

2 the panel determine to be appropriate.

3 SEC. 165. NATIONAL RESEARCH CENTER.

4 (a) GENERAL AUTHORITY.—

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

6 grants, contracts, or cooperative agreements, may

7 establish 1 or more national centers in the areas

8 of—

9 (A) applied research and development; and

10 (B) dissemination and training.

11 (2) CONSULTATION.—The Secretary shall con12 sult with the States prior to establishing 1 or more

13 such centers.

14 (3) ELIGIBLE ENTITIES.—Entities eligible to

15 receive funds under this section are institutions of

16 higher education, other public or private nonprofit

17 organizations or agencies, and consortia of such in18 stitutions, organizations, or agencies.

19 (b) ACTIVITIES.—

20 (1) IN GENERAL.—The national center or cen21 ters shall carry out such activities as the Secretary

22 determines to be appropriate to assist State and

23 local recipients of funds under this title to achieve

24 the purpose of this title, which may include the re25 search and evaluation activities in such areas as—
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1 (A) the integration of vocational and aca2 demic instruction, secondary and postsecondary

3 instruction;

4 (B) effective inservice and preservice

5 teacher education that assists vocational edu6 cation systems;

7 (C) performance measures and expected

8 levels of performance that serve to improve vo9 cational education programs and student

10 achievement;

11 (D) effects of economic changes on the

12 kinds of knowledge and skills required for em13 ployment or participation in postsecondary edu14 cation;

15 (E) longitudinal studies of student achieve16 ment; and

17 (F) dissemination and training activities

18 related to the applied research and demonstra19 tion activities described in this subsection,

20 which may also include—

21 (i) serving as a repository for infor22 mation on vocational and technological

23 skills, State academic standards, and relat24 ed materials; and
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1 (ii) developing and maintaining na2 tional networks of educators who facilitate

3 the development of vocational education

4 systems.

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

6 the activities described in paragraph (1) annually

7 shall prepare a report of key research findings of

8 such center or centers and shall submit copies of the

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

10 the Secretary of Health and Human Services. The

11 Secretary shall submit that report to the Committee

12 on Education and the Workforce of the House of

13 Representatives, the Committee on Labor and

14 Human Resources of the Senate, the Library of

15 Congress, and each eligible agency.

16 (c) REVIEW.—The Secretary shall—

17 (1) consult at least annually with the national

18 center or centers and with experts in education to

19 ensure that the activities of the national center or

20 centers meet the needs of vocational education pro21 grams; and

22 (2) undertake an independent review of each

23 award recipient under this section prior to extending

24 an award to such recipient beyond a 5-year period.
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1 SEC. 166. DATA SYSTEMS.

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

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

4 the condition of vocational education and on the effective5 ness of State and local programs, services, and activities

6 carried out under this title in order to provide the Sec7 retary and Congress, as well as Federal, State, local, and

8 tribal agencies, with information relevant to improvement

9 in the quality and effectiveness of vocational education.

10 The Secretary annually shall report to Congress on the

11 Secretary’s analysis of performance data collected each

12 year pursuant to this title.

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

14 the Secretary shall ensure that the data system is compat15 ible with other Federal information systems.

16 (c) ASSESSMENTS.—As a regular part of its assess17 ments, the National Center for Education Statistics shall

18 collect and report information on vocational education for

19 a nationally representative sample of students. Such as20 sessment may include international comparisons.

21 Subtitle D—Authorization of

22 Appropriations

23 SEC. 171. AUTHORIZATION OF APPROPRIATIONS.

24 There are authorized to be appropriated to carry out

25 subtitle (A), and sections 163, 164, 165, and 166, such
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1 sums as may be necessary for each of the fiscal years 1999

2 through 2004.

3 Subtitle E—Repeal

4 SEC. 181. REPEAL.

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

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

7 seq.) is repealed.

8 (b) REFERENCES TO CARL D. PERKINS VOCATIONAL

9 AND APPLIED TECHNOLOGY EDUCATION ACT.—

10 (1) IMMIGRATION AND NATIONALITY ACT.—Sec11 tion 245A(h)(4)(C) of the Immigration and Nation12 ality Act (8 U.S.C. 1255a(h)(4)(C)) is amended by

13 striking ‘‘Vocational Education Act of 1963’’ and in14 serting ‘‘Carl D. Perkins Vocational and Applied

15 Technology Education Act of 1997’’.

16 (2) NATIONAL DEFENSE AUTHORIZATION

17 ACT.—Section 4461 of the National Defense Author18 ization Act for Fiscal Year 1993 (10 U.S.C. 1143

19 note) is amended—

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

21 (B) by redesignating paragraphs (5) and

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

23 (3) ELEMENTARY AND SECONDARY EDUCATION

24 ACT OF 1965.—The Elementary and Secondary Edu-
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1 cation Act of 1965 (20 U.S.C. 6301 et seq.) is

2 amended—

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

4 6314(b)(2)(C)(v)), by striking ‘‘Carl D. Perkins

5 Vocational and Applied Technology Education

6 Act,’’ and inserting ‘‘Carl D. Perkins Voca7 tional and Applied Technology Education Act of

8 1997’’;

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

10 7815(b)(5)), by striking ‘‘Carl D. Perkins Voca11 tional and Applied Technology Education Act’’

12 and inserting ‘‘Carl D. Perkins Vocational and

13 Applied Technology Education Act of 1997’’;

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

15 8852(a)(2))—

16 (i) by striking subparagraph (C); and

17 (ii) by redesignating subparagraphs

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

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

20 (D) in the matter preceding subparagraph

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

22 8857(a)(1)), by striking ‘‘Carl D. Perkins Voca23 tional and Applied Technology Education Act’’

24 and inserting ‘‘Carl D. Perkins Vocational and

25 Applied Technology Education Act of 1997’’.
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1 (4) EQUITY IN EDUCATIONAL LAND-GRANT STA2 TUS ACT OF 1994.—Section 533(c)(4)(A) of the Eq3 uity in Educational Land-Grant Status Act of 1994

4 (7 U.S.C. 301 note) is amended by striking ‘‘(20

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

6 was in effect on the day preceding the date of enact7 ment of the Carl D. Perkins Vocational and Applied

8 Technology Education Act of 1997’’.

9 (5) IMPROVING AMERICA’S SCHOOLS ACT OF

10 1994.—Section 563 of the Improving America’s

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

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

13 Act reauthorizing the Carl D. Perkins Vocational

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

15 2301 et seq.)’’ and inserting ‘‘July 1, 1999’’.

16 (6) INTERNAL REVENUE CODE OF 1986.—Sec17 tion 135(c)(3)(B) of the Internal Revenue Code of

18 1986 (26 U.S.C. 135(c)(3)(B)) is amended—

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

20 of section 521(3) of the Carl D. Perkins Voca21 tional Education Act’’ and inserting ‘‘subpara22 graph (C) or (D) of section 2(3) of the

23 Workforce Investment Partnership Act of

24 1997’’; and
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1 (B) by striking ‘‘any State (as defined in

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

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

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

5 2 of such Act)’’.

6 (7) APPALACHIAN REGIONAL DEVELOPMENT

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

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

9 214(c)) (as amended by subsection (c)(5)) is further

10 amended by striking ‘‘Carl D. Perkins Vocational

11 Education Act’’ and inserting ‘‘Carl D. Perkins Vo12 cational and Applied Technology Education Act of

13 1997’’.

14 (8) VOCATIONAL EDUCATION AMENDMENTS OF

15 1968.—Section 104 of the Vocational Education

16 Amendments of 1968 (82 Stat. 1091) is amended by

17 striking ‘‘section 3 of the Carl D. Perkins Vocational

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

19 Vocational and Applied Technology Education Act of

20 1997’’.

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

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

23 seq.) is amended—

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

25 3056(b)(1)(N)(i)), by striking ‘‘or the Carl D.
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1 Perkins Vocational and Applied Technology

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

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

4 3056c(d)(2))—

5 (i) by striking ‘‘employment and

6 training programs’’ and inserting

7 ‘‘workforce investment activities’’; and

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

9 Vocational and Applied Technology Edu10 cation Act (20 U.S.C. 2301 et seq.)’’ and

11 inserting ‘‘the Carl D. Perkins Vocational

12 and Applied Technology Education Act of

13 1997’’.

14 TITLE II—ADULT EDUCATION

15 AND LITERACY

16 SEC. 201. SHORT TITLE.

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

18 Literacy Act’’.

19 SEC. 202. FINDINGS AND PURPOSE.

20 (a) FINDINGS.—Congress finds that—

21 (1) the National Adult Literacy Survey and

22 other studies have found that more than one-fifth of

23 American adults demonstrate very low literacy skills

24 that make it difficult for the adults to be economi-
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1 cally self-sufficient, much less enter high-skill, high2 wage jobs;

3 (2) data from the National Adult Literacy Sur4 vey shows that adults with very low levels of literacy

5 are 10 times as likely to be poor as adults with high

6 levels of literacy; and

7 (3) our Nation’s well-being is dependent on the

8 knowledge and skills of all of our Nation’s citizens.

9 (b) PURPOSE.—It is the purpose of this title to create

10 a partnership among the Federal Government, States, and

11 localities to help provide for adult education and literacy

12 services so that adults who need such services, will, as ap13 propriate, be able to—

14 (1) become literate and obtain the knowledge

15 and skills needed to compete in a global economy;

16 (2) complete a secondary school education; and

17 (3) have the education skills necessary to sup18 port the educational development of their children.

19 Subtitle A—Adult Education and

20 Literacy Programs

21 CHAPTER 1—FEDERAL PROVISIONS

22 SEC. 211. RESERVATION; GRANTS TO STATES; ALLOT23 MENTS.

24 (a) RESERVATION OF FUNDS FOR NATIONAL LEAD25 ERSHIP ACTIVITIES.—From the amount appropriated for
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1 any fiscal year under section 246, the Secretary shall

2 reserve—

3 (1) 1.5 percent to carry out section 213;

4 (2) 2 percent to carry out section 243; and

5 (3) 1.5 percent to carry out section 245.

6 (b) GRANTS TO STATES.—From the sum appro7 priated under section 246 and not reserved under sub8 section (a) for a fiscal year, the Secretary shall award a

9 grant to each eligible agency having a State plan approved

10 under section 224 in an amount equal to the sum of the

11 initial allotment under subsection (c)(1) and the additional

12 allotment under subsection (c)(2) for the eligible agency

13 for the fiscal year to enable the eligible agency to carry

14 out the activities assisted under this subtitle.

15 (c) ALLOTMENTS.—

16 (1) INITIAL ALLOTMENTS.—From the sum ap17 propriated under section 246 and not reserved under

18 subsection (a) for a fiscal year, the Secretary first

19 shall allot to each eligible agency having a State

20 plan approved under section 224 the following

21 amounts:

22 (A) $100,000 in the case of an eligible

23 agency serving the United States Virgin Is24 lands, Guam, American Samoa, the Common25 wealth of the Northern Mariana Islands, the
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1 Republic of the Marshall Islands, the Federated

2 States of Micronesia, and the Republic of

3 Palau.

4 (B) $250,000, in the case of any other eli5 gible agency.

6 (2) ADDITIONAL ALLOTMENTS.—From the sum

7 appropriated under section 246, not reserved under

8 subsection (a), and not allotted under paragraph (1),

9 for any fiscal year, the Secretary shall allot to each

10 eligible agency an amount that bears the same rela11 tionship to such sum as the number of qualifying

12 adults in the State or outlying area served by the el13 igible agency bears to the number of such adults in

14 all States and outlying areas.

15 (d) QUALIFYING ADULT.—For the purposes of this

16 subsection, the term ‘‘qualifying adult’’ means an adult

17 who—

18 (1) is at least 16 years of age;

19 (2) is beyond the age of compulsory school at20 tendance under the law of the State or outlying

21 area;

22 (3) does not possess a secondary school diploma

23 or its recognized equivalent; and

24 (4) is not enrolled in secondary school.

25 (e) SPECIAL RULE.—
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1 (1) IN GENERAL.—From amounts made avail2 able under subsection (c) for the Republic of the

3 Marshall Islands, the Federated States of Microne4 sia, and the Republic of Palau, the Secretary shall

5 award grants to Guam, American Samoa, the Com6 monwealth of the Northern Mariana Islands, the Re7 public of the Marshall Islands, the Federated States

8 of Micronesia, or the Republic of Palau to carry out

9 activities described in this part in accordance with

10 the provisions of this subtitle that the Secretary de11 termines are not inconsistent with this subsection.

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

13 grants pursuant to paragraph (1) on a competitive

14 basis and pursuant to recommendations from the

15 Pacific Region Educational Laboratory in Honolulu,

16 Hawaii.

17 (3) TERMINATION OF ELIGIBILITY.—Notwith18 standing any other provision of law, the Republic of

19 the Marshall Islands, the Federated States of Micro20 nesia, and the Republic of Palau shall not receive

21 any funds under this part for any fiscal year that

22 begins after September 30, 2004.

23 (4) ADMINISTRATIVE COSTS.—The Secretary

24 may provide not more than 5 percent of the funds

25 made available for grants under this subsection to
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1 pay the administrative costs of the Pacific Region

2 Educational Laboratory regarding activities assisted

3 under this subsection.

4 (f) MAINTENANCE OF EFFORT.—

5 (1) IN GENERAL.—An eligible agency may re6 ceive a grant under this subtitle for any fiscal year

7 only if the Secretary finds that the amount expended

8 by the State for adult education and literacy, in the

9 second fiscal year preceding the fiscal year for which

10 the determination is made, was not less than 90 per11 cent of the amount expended for adult education and

12 literacy in the third fiscal year preceding the fiscal

13 year for which the determination is made.

14 (2) WAIVER.—The Secretary may waive the re15 quirements of this subsection for 1 fiscal year only

16 if the Secretary determines that such a waiver is eq17 uitable due to exceptional or uncontrollable cir18 cumstances, such as a natural disaster or an unfore19 seen and precipitous decline in the financial re20 sources of the State.

21 (g) REALLOTMENT.—If the Secretary determines

22 that any amount of a State’s allotment under this section

23 for any fiscal year will not be required for carrying out

24 the program for which such amount has been allotted, the

25 Secretary shall make such amount available for reallot-
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1 ment to 1 or more States on the basis that the Secretary

2 determines would best serve the purpose of this title.

3 SEC. 212. PERFORMANCE MEASURES AND EXPECTED

4 LEVELS OF PERFORMANCE.

5 (a) ESTABLISHMENT OF PERFORMANCE MEAS6 URES.—After consultation with eligible agencies, eligible

7 providers, and other interested parties (including rep8 resentatives of business, representatives of labor organiza9 tions, and institutions of higher education), the Secretary

10 shall establish and publish performance measures de11 scribed in this subsection that assess the progress of each

12 eligible agency in enhancing and developing more fully the

13 literacy skills of the adult population in the State or outly14 ing area. The measures, at a minimum, shall include—

15 (1) demonstrated improvements in literacy skill

16 levels in reading and writing the English language,

17 numeracy, and problem solving;

18 (2) attainment of secondary school diplomas or

19 their recognized equivalent;

20 (3) placement in, retention in, or completion of,

21 postsecondary education, training, or unsubsidized

22 employment; and

23 (4) other performance measures the Secretary

24 determines necessary.
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1 (b) EXPECTED LEVELS OF PERFORMANCE.—In de2 veloping a State plan, each eligible agency shall negotiate

3 with the Secretary the expected levels of performance for

4 the performance measures described in subsection (a).

5 SEC. 213. NATIONAL LEADERSHIP ACTIVITIES.

6 (a) AUTHORITY.—From the amount reserved under

7 section 211(a)(1) for any fiscal year, the Secretary may

8 establish a program of national leadership and evaluation

9 activities to enhance the quality of adult education and

10 literacy nationwide.

11 (b) METHOD OF FUNDING.—The Secretary may

12 carry out national leadership and evaluation activities di13 rectly or through grants, contracts, or cooperative

14 agreements.

15 (c) USES OF FUNDS.—Funds made available to carry

16 out this section shall be used for—

17 (1) research, such as estimating the number of

18 adults functioning at the lowest levels of literacy

19 proficiency;

20 (2) demonstration of model and innovative pro21 grams, such as the development of models for basic

22 skill certificates, identification of effective strategies

23 for working with adults with learning disabilities and

24 with individuals with limited English proficiency who

25 are adults, and workplace literacy programs;
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1 (3) dissemination, such as dissemination of in2 formation regarding promising practices resulting

3 from federally funded demonstration programs;

4 (4) evaluations and assessments, such as peri5 odic independent evaluations of activities assisted

6 under this subtitle and assessments of the condition

7 and progress of literacy in the United States;

8 (5) efforts to support capacity building at the

9 State and local levels, such as technical assistance in

10 program planning, assessment, evaluation, and mon11 itoring of activities under this subtitle;

12 (6) data collection, such as improvement of

13 both local and State data systems through technical

14 assistance and development of model performance

15 data collection systems;

16 (7) professional development, such as technical

17 assistance activities to advance effective training

18 practices, identify exemplary professional develop19 ment projects, and disseminate new findings in adult

20 education training;

21 (8) technical assistance, such as endeavors that

22 aid distance learning, and promote and improve the

23 use of technology in the classroom; or

24 (9) other activities designed to enhance the

25 quality of adult education and literacy nationwide.
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1 CHAPTER 2—STATE PROVISIONS

2 SEC. 221. STATE ADMINISTRATION.

3 (a) IN GENERAL.—Each eligible agency shall be re4 sponsible for the State administration of activities under

5 this subtitle, including—

6 (1) the development, submission, and implemen7 tation of the State plan;

8 (2) consultation with other appropriate agen9 cies, groups, and individuals that are involved in, or

10 interested in, the development and implementation

11 of activities assisted under this subtitle; and

12 (3) coordination and nonduplication with other

13 Federal and State education, training, corrections,

14 public housing, and social service programs.

15 (b) STATE-IMPOSED REQUIREMENTS.—Whenever a

16 State imposes any rule or policy relating to the adminis17 tration and operation of activities funded under this sub18 title (including any rule or policy based on State interpre19 tation of any Federal law, regulation, or guideline), the

20 State shall identify the rule or policy as a State-imposed

21 requirement.

22 SEC. 222. STATE DISTRIBUTION OF FUNDS; STATE SHARE.

23 (a) STATE DISTRIBUTION OF FUNDS.—Each eligible

24 agency receiving a grant under this subtitle for a fiscal

25 year—
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1 (1) shall use not less than 80 percent of the

2 grant funds to carry out section 225 and to award

3 grants and contracts under section 231 for the fiscal

4 year, of which not more than 10 percent of the sum

5 shall be available to carry out section 225 for the

6 fiscal year;

7 (2) shall use not more than 15 percent of the

8 grant funds to carry out State leadership activities

9 under section 223 for the fiscal year; and

10 (3) shall use not more than 5 percent of the

11 grant funds, or $80,000, whichever is greater, for

12 administrative expenses of the eligible agency for the

13 fiscal year.

14 (b) STATE SHARE REQUIREMENT.—

15 (1) IN GENERAL.—In order to receive a grant

16 from the Secretary under section 211(b) each eligi17 ble agency shall provide an amount equal to 25 per18 cent of the total amount of funds expended for adult

19 education in the State, except that the Secretary

20 may decrease the amount of funds required under

21 this subsection for an eligible agency serving an out22 lying area.

23 (2) STATE’S SHARE.—An eligible agency’s

24 funds required under paragraph (1) may be in cash

25 or in kind, fairly evaluated, and shall include only
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1 non-Federal funds that are used for adult education

2 and literacy activities in a manner that is consistent

3 with the purpose of this subtitle.

4 SEC. 223. STATE LEADERSHIP ACTIVITIES.

5 (a) IN GENERAL.—Each eligible agency shall use

6 funds made available under section 222(a)(2) for 1 or

7 more of the following activities:

8 (1) Professional development and training, in9 cluding training in the use of software and

10 technology.

11 (2) Developing and disseminating curricula for

12 adult education and literacy activities.

13 (3) Monitoring and evaluating the quality of,

14 and improvement in, services and activities con15 ducted with assistance under this subtitle.

16 (4) Establishing challenging performance meas17 ures and levels of performance for literacy pro18 ficiency in order to assess program quality and im19 provement.

20 (5) Integration of literacy instruction and occu21 pational skill training, and promoting linkages with

22 employers.

23 (6) Linkages with postsecondary institutions.

24 (7) Supporting State or regional networks of

25 literacy resource centers.
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1 (8) Other activities of statewide significance

2 that promote the purpose of this subtitle.

3 (b) COLLABORATION.—In carrying out this section,

4 eligible agencies shall collaborate where possible and avoid

5 duplicating efforts in order to maximize the impact of the

6 activities described in subsection (a).

7 SEC. 224. STATE PLAN.

8 (a) 3-YEAR PLANS.—

9 (1) IN GENERAL.—Each eligible agency desiring

10 a grant under this subtitle for any fiscal year shall

11 submit to, or have on file with, the Secretary a 3-

12 year State plan.

13 (2) COMPREHENSIVE PLAN OR APPLICATION.—

14 The eligible agency may submit the State plan as

15 part of a comprehensive plan or application for Fed16 eral education assistance.

17 (b) PLAN CONTENTS.—In developing the State plan,

18 and any revisions to the State plan, the eligible agency

19 shall include in the State plan or revisions—

20 (1) an objective assessment of the needs of indi21 viduals in the State for adult education and literacy

22 activities, including individuals most in need or

23 hardest to serve, such as educationally disadvan24 taged adults, immigrants, individuals with limited

25 English proficiency, incarcerated individuals, home-
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1 less individuals, recipients of public assistance, and

2 individuals with disabilities;

3 (2) a description of the adult education and lit4 eracy activities that will be carried out with any

5 funds received under this subtitle;

6 (3) a description of how the eligible agency will

7 evaluate annually the effectiveness of the adult edu8 cation and literacy activities based on the perform9 ance measures described in section 212;

10 (4) a description of how the eligible agency will

11 ensure that the data reported to the eligible agency

12 from eligible providers under this subtitle and the

13 data the eligible agency reports to the Secretary are

14 complete, accurate, and reliable;

15 (5) a description of the performance measures

16 required under section 212(a) and how such per17 formance measures and the expected levels of per18 formance will ensure improvement of adult education

19 and literacy activities in the State or outlying area;

20 (6) an assurance that the funds received under

21 this subtitle will not be expended for any purpose

22 other than for activities under this subtitle;

23 (7) a description of how the eligible agency will

24 fund local activities in accordance with the priorities

25 described in section 242(a);
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1 (8) a description of how the eligible agency will

2 determine which eligible providers are eligible for

3 funding in accordance with the preference described

4 in section 242(b);

5 (9) a description of how funds will be used for

6 State leadership activities, which activities may in7 clude professional development and training, instruc8 tional technology, and management technology;

9 (10) an assurance that the eligible agency will

10 expend the funds under this subtitle only in a man11 ner consistent with fiscal requirement in section 241;

12 (11) a description of the process that will be

13 used for public participation and comment with re14 spect to the State plan;

15 (12) a description of how the eligible agency

16 will develop program strategies for populations that

17 include, at a minimum—

18 (A) low-income students;

19 (B) individuals with disabilities;

20 (C) single parents and displaced home21 makers; and

22 (D) individuals with multiple barriers to

23 educational enhancement;
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1 (13) a description of the measures that will be

2 taken by the eligible agency to assure coordination

3 of and avoid duplication among—

4 (A) adult education activities authorized

5 under this subtitle;

6 (B) activities authorized under title III;

7 (C) programs authorized under the Wag8 ner-Peyser Act (29 U.S.C. 49 et seq.), title I of

9 the Rehabilitation Act of 1973 (29 U.S.C. 720

10 et seq.), part A of title IV of the Social Security

11 Act (42 U.S.C. 601 et seq.), section 6(d) of the

12 Food Stamp Act of 1977 (7 U.S.C. 2015(d)),

13 and title V of the Older Americans Act of 1965

14 (42 U.S.C. 3056 et seq.);

15 (D) a work program authorized under sec16 tion 6(o) of the Food Stamp Act of 1977 (7

17 U.S.C. 2015(o));

18 (E) activities authorized under chapter 2

19 of title II of the Trade Act of 1974 (19 U.S.C.

20 2271 et seq.);

21 (F) activities authorized under chapter 41

22 of title 38, United States Code;

23 (G) activities carried out by the Bureau of

24 Apprenticeship and Training;
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1 (H) training activities carried out by the

2 Department of Housing and Urban Develop3 ment; and

4 (I) programs authorized under State un5 employment compensation laws and the Federal

6 unemployment insurance program under titles

7 III, IX, and XII of the Social Security Act (42

8 U.S.C. 501 et seq., 1101 et seq., and 1321 et

9 seq.); and

10 (14) the description and information specified

11 in paragraphs (8) and (16) of section 304(b).

12 (c) PLAN REVISIONS.—When changes in conditions

13 or other factors require substantial revisions to an ap14 proved State plan, the eligible agency shall submit a revi15 sion to the State plan to the Secretary.

16 (d) CONSULTATION.—The eligible agency shall—

17 (1) submit the State plan, and any revisions to

18 the State plan, to the Governor of the State for re19 view and comment; and

20 (2) ensure that any comments by the Governor

21 regarding the State plan, and any revision to the

22 State plan, are submitted to the Secretary.

23 (e) 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

9 212 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

14 hearing.

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

17 regarding the approval of State plans and revisions

18 to the State plan.

19 SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND

20 OTHER INSTITUTIONALIZED INDIVIDUALS.

21 (a) PROGRAM AUTHORIZED.—From funds made

22 available under section 222(a)(1) for a fiscal year, each

23 eligible agency shall carry out corrections education or

24 education for other institutionalized individuals.
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1 (b) USES OF FUNDS.—The funds described in sub2 section (a) shall be used for the cost of educational pro3 grams for criminal offenders in corrections institutions

4 and for other institutionalized individuals, including aca5 demic programs for—

6 (1) basic education;

7 (2) special education programs as determined

8 by the State;

9 (3) bilingual programs, or English as a second

10 language programs; and

11 (4) secondary school credit programs.

12 (c) DEFINITION OF CRIMINAL OFFENDER.—

13 (1) CRIMINAL OFFENDER.—The term ‘‘criminal

14 offender’’ means any individual who is charged with

15 or convicted of any criminal offense.

16 (2) CORRECTIONAL INSTITUTION.—The term

17 ‘‘correctional institution’’ means any—

18 (A) prison;

19 (B) jail;

20 (C) reformatory;

21 (D) work farm;

22 (E) detention center; or

23 (F) halfway house, community-based reha24 bilitation center, or any other similar institution
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1 designed for the confinement or rehabilitation

2 of criminal offenders.

3 CHAPTER 3—LOCAL PROVISIONS

4 SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE

5 PROVIDERS.

6 (a) GRANTS.—From funds made available under sec7 tion 222(a)(1), each eligible agency shall award multiyear

8 grants or contracts to eligible providers within the State

9 to enable the eligible providers to develop, implement, and

10 improve adult education and literacy activities within the

11 State.

12 (b) SPECIAL RULE.—Each eligible agency receiving

13 funds under this subtitle shall ensure that all eligible pro14 viders have direct and equitable access to apply for grants

15 or contracts under this section.

16 (c) REQUIRED LOCAL ACTIVITIES.—Each eligible

17 provider receiving a grant or contract under this subtitle

18 shall establish programs that provide instruction or serv19 ices, such as—

20 (1) adult education and literacy services; or

21 (2) English literacy programs.

22 SEC. 232. LOCAL APPLICATION.

23 Each eligible provider desiring a grant or contract

24 under this subtitle shall submit an application to the eligi-
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1 ble agency containing such information and assurances as

2 the eligible agency may require, including—

3 (1) a description of how funds awarded under

4 this subtitle will be spent;

5 (2) how the expected levels of performance of

6 the eligible provider with respect to participant re7 cruitment, retention, and performance measures de8 scribed in section 212 will be met and reported to

9 the eligible agency; and

10 (3) a description of any cooperative arrange11 ments the eligible provider has with other agencies,

12 institutions, or organizations for the delivery of

13 adult education and literacy programs.

14 SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

15 (a) IN GENERAL.—Subject to subsection (b), of the

16 sum that is made available under this subtitle to an eligi17 ble provider—

18 (1) not less than 95 percent shall be expended

19 for carrying out adult education and literacy activi20 ties; and

21 (2) the remaining amount, not to exceed 5 per22 cent, shall be used for planning, administration, per23 sonnel development, and interagency coordination.

24 (b) SPECIAL RULE.—In cases where the cost limits

25 described in subsection (a) are too restrictive to allow for
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1 adequate planning, administration, personnel develop2 ment, and interagency coordination, the eligible agency

3 shall negotiate with the eligible provider in order to deter4 mine an adequate level of funds to be used for noninstruc5 tional purposes.

6 CHAPTER 4—GENERAL PROVISIONS

7 SEC. 241. ADMINISTRATIVE PROVISIONS.

8 (a) SUPPLEMENT NOT SUPPLANT.—Funds made

9 available for adult education and literacy activities under

10 this subtitle shall supplement and not supplant other

11 State, or local public funds expended for adult education

12 and literacy activities.

13 (b) REPRESENTATION.—The eligible agency shall

14 provide representation to the statewide partnership.

15 SEC. 242. PRIORITIES AND PREFERENCES.

16 (a) PRIORITIES.—Each eligible agency and eligible

17 provider receiving assistance under this subtitle shall give

18 priority in using the assistance to adult education and lit19 eracy activities that—

20 (1) are built on a strong foundation of research

21 and effective educational practice;

22 (2) effectively employ advances in technology,

23 as appropriate, including the use of computers;

24 (3) provide learning in real life contexts to en25 sure that an individual has the skills needed to com-
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1 pete in a global economy and exercise the rights and

2 responsibilities of citizenship;

3 (4) are staffed by well-trained instructors, coun4 selors, and administrators;

5 (5) are of sufficient intensity and duration for

6 participants to achieve substantial learning gains,

7 such as by earning a basic skills certificate that re8 flects skills acquisition and has meaning to

9 employers;

10 (6) establish measurable performance levels for

11 participant outcomes, such as levels of literacy

12 achieved and attainment of a secondary school di13 ploma or its recognized equivalent, that are tied to

14 challenging State performance levels for literacy

15 proficiency;

16 (7) coordinate with other available resources in

17 the community, such as by establishing strong links

18 with elementary schools and secondary schools, post19 secondary institutions, 1-stop customer service cen20 ters, job training programs, and social service

21 agencies;

22 (8) offer flexible schedules and support services

23 (such as child care and transportation) that are nec24 essary to enable individuals, including individuals
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1 with disabilities or other special needs, to attend and

2 complete programs; and

3 (9) maintain a high-quality information man4 agement system that has the capacity to report cli5 ent outcomes and to monitor program performance

6 against the State performance measures.

7 (b) PREFERENCES.—In determining which eligible

8 providers will receive funds under this subtitle for a fiscal

9 year, each eligible agency receiving a grant under this sub10 title, in addition to addressing the priorities described in

11 subsection (a), shall—

12 (1) give preference to eligible providers that the

13 eligible agency determines serve local areas with

14 high concentrations of individuals in poverty or with

15 low levels of literacy (including English language

16 proficiency); and

17 (2) consider—

18 (A) the results, if any, of the evaluations

19 required under section 245(a); and

20 (B) the degree to which the eligible pro21 vider will coordinate with and utilize other lit22 eracy and social services available in the

23 community.
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1 SEC. 243. INCENTIVE GRANTS.

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

3 to States that exceed—

4 (1) the State performance measures established

5 by the Secretary of Education under this Act; and

6 (2) the State performance measures established

7 under title III.

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

9 this section, the Secretary shall give priority to those

10 States submitting a State unified plan as described in sec11 tion 501 that is approved by the appropriate Secretaries

12 as described in such section.

13 (c) USE OF FUNDS.—A State that receives an incen14 tive grant under this section shall use the funds made

15 available through the grant to carry out innovative pro16 grams as determined by the State.

17 SEC. 244. EVALUATION, IMPROVEMENT, AND ACCOUNT18 ABILITY.

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

20 biennially evaluate the adult education and literacy activi21 ties of each eligible provider that receives a grant or con22 tract under this subtitle, using the performance measures

23 established under section 212.

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

25 the evaluation, an eligible agency determines that an eligi26 ble provider is not making substantial progress in achiev-
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1 ing the purpose of this subtitle, the eligible agency may

2 work jointly with the eligible provider to develop an im3 provement plan. If, after not more than 2 years of imple4 mentation of the improvement plan, the eligible agency de5 termines that the eligible provider is not making substan6 tial progress, the eligible agency shall take whatever cor7 rective action the eligible agency deems necessary, which

8 may include termination of funding or the implementation

9 of alternative service arrangements, consistent with State

10 law. The eligible agency shall take corrective action under

11 the preceding sentence only after the eligible agency has

12 provided technical assistance to the eligible provider and

13 shall ensure, to the extent practicable, that any corrective

14 action the eligible agency takes allows for continued serv15 ices to and activities for the individuals served by the eligi16 ble provider.

17 (c) STATE REPORT.—

18 (1) IN GENERAL.—The eligible agency shall re19 port annually to the Secretary regarding the quality

20 and effectiveness of the adult education and literacy

21 activities funded through the eligible agency’s grants

22 or contracts under this subtitle, based on the per23 formance measures and expected levels of perform24 ance included in the State plan.
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1 (2) INFORMATION.—The eligible agency shall

2 include in the reports such information, in such

3 form, as the Secretary may require in order to en4 sure the collection of uniform national data.

5 (3) AVAILABILITY.—The eligible agency shall

6 make available to the public the annual report under

7 this subsection.

8 (d) TECHNICAL ASSISTANCE.—If the Secretary de9 termines that the eligible agency is not properly imple10 menting the eligible agency’s responsibilities under sub11 section (b), or is not making substantial progress in meet12 ing the purpose of this subtitle, based on the performance

13 measures and expected levels of performance included in

14 the eligible agency’s State plan, the Secretary shall work

15 with the eligible agency to implement improvement

16 activities.

17 (e) WITHHOLDING OF FEDERAL FUNDS.—If, not

18 earlier than 2 years after implementing activities described

19 in subsection (d), the Secretary determines that the eligi20 ble agency is not making sufficient progress, based on the

21 eligible agency’s performance measures and expected lev22 els of performance, the Secretary, after notice and oppor23 tunity for a hearing, shall withhold from the eligible agen24 cy all, or a portion, of the eligible agency’s grant under

25 this subtitle. The Secretary may use funds withheld under
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1 the preceding sentence to provide, through alternative ar2 rangements, services and activities within the State to

3 meet the purpose of this title.

4 SEC. 245. NATIONAL INSTITUTE FOR LITERACY.

5 (a) PURPOSE.—The purpose of this section is to es6 tablish a National Institute for Literacy that—

7 (1) provides national leadership regarding

8 literacy;

9 (2) coordinates literacy services and policy; and

10 (3) is a national resource for adult education

11 and literacy, by providing the best and most current

12 information available and supporting the creation of

13 new ways to offer improved literacy services.

14 (b) ESTABLISHMENT.—

15 (1) IN GENERAL.—There shall be a National

16 Institute for Literacy (in this section referred to as

17 the ‘‘Institute’’). The Institute shall be administered

18 under the terms of an interagency agreement en19 tered into by the Secretary with the Secretary of

20 Labor and the Secretary of Health and Human

21 Services (in this section referred to as the ‘‘Inter22 agency Group’’). The Secretary may include in the

23 Institute any research and development center, insti24 tute, or clearinghouse established within the Depart25 ment of Education the purpose of which is deter-
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•S 1186 RS

1 mined by the Secretary to be related to the purpose

2 of the Institute.

3 (2) RECOMMENDATIONS.—The Interagency

4 Group shall consider the recommendations of the

5 National Institute for Literacy Advisory Board (in

6 this section referred to as the ‘‘Board’’) established

7 under subsection (e) in planning the goals of the In8 stitute and in the implementation of any programs

9 to achieve the goals. If the Board’s recommendations

10 are not followed, the Interagency Group shall pro11 vide a written explanation to the Board concerning

12 actions the Interagency Group takes that are incon13 sistent with the Board’s recommendations, including

14 the reasons for not following the Board’s rec15 ommendations with respect to the actions. The

16 Board may also request a meeting of the Inter17 agency Group to discuss the Board’s recommenda18 tions.

19 (3) DAILY OPERATIONS.—The daily operations

20 of the Institute shall be administered by the Director

21 of the Institute.

22 (c) DUTIES.—

23 (1) IN GENERAL.—In order to provide leader24 ship for the improvement and expansion of the sys-
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1 tem for delivery of literacy services, the Institute is

2 authorized to—

3 (A) establish a national electronic data

4 base of information that disseminates informa5 tion to the broadest possible audience within

6 the literacy and basic skills field, and that

7 includes—

8 (i) effective practices in the provision

9 of literacy and basic skills instruction, in10 cluding the integration of such instruction

11 with occupational skills training;

12 (ii) public and private literacy and

13 basic skills programs and Federal, State,

14 and local policies affecting the provision of

15 literacy services at the national, State, and

16 local levels;

17 (iii) opportunities for technical assist18 ance, meetings, conferences, and other op19 portunities that lead to the improvement of

20 literacy and basic skills services; and

21 (iv) a communication network for lit22 eracy programs, providers, social service

23 agencies, and students;
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1 (B) coordinate support for the provision of

2 literacy and basic skills services across Federal

3 agencies and at the State and local levels;

4 (C) coordinate the support of research and

5 development on literacy and basic skills for

6 adults across Federal agencies, especially with

7 the Office of Educational Research and Im8 provement in the Department of Education,

9 and carry out basic and applied research and

10 development on topics that are not being inves11 tigated by other organizations or agencies;

12 (D) collect and disseminate information on

13 methods of advancing literacy;

14 (E) provide policy and technical assistance

15 to Federal, State, and local entities for the im16 provement of policy and programs relating to

17 literacy;

18 (F) fund a network of State or regional

19 adult literacy resource centers to assist State

20 and local public and private nonprofit efforts to

21 improve literacy by—

22 (i) encouraging the coordination of lit23 eracy services; and

24 (ii) serving as a link between the In25 stitute and providers of adult education
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•S 1186 RS

1 and literacy activities for the purpose of

2 sharing information, data, research, exper3 tise, and literacy resources; and

4 (G) undertake other activities that lead to

5 the improvement of the Nation’s literacy deliv6 ery system and that complement other such ef7 forts being undertaken by public and private

8 agencies and organizations.

9 (2) GRANTS, CONTRACTS, AND COOPERATIVE

10 AGREEMENTS.—The Institute may award grants to,

11 or enter into contracts or cooperative agreements

12 with, individuals, public or private institutions, agen13 cies, organizations, or consortia of such institutions,

14 agencies, or organizations to carry out the activities

15 of the Institute. Such grants, contracts, or agree16 ments shall be subject to the laws and regulations

17 that generally apply to grants, contracts, or agree18 ments entered into by Federal agencies.

19 (d) LITERACY LEADERSHIP.—

20 (1) IN GENERAL.—The Institute may, in con21 sultation with the Board, award fellowships, with

22 such stipends and allowances that the Director con23 siders necessary, to outstanding individuals pursuing

24 careers in adult education or literacy in the areas of

25 instruction, management, research, or innovation.
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1 (2) FELLOWSHIPS.—Fellowships awarded under

2 this subsection shall be used, under the auspices of

3 the Institute, to engage in research, education, train4 ing, technical assistance, or other activities to ad5 vance the field of adult education or literacy, includ6 ing the training of volunteer literacy providers at the

7 national, State, or local level.

8 (3) INTERNSHIPS.—The Institute, in consulta9 tion with the Board, is authorized to award paid and

10 unpaid internships to individuals seeking to assist in

11 carrying out the Institute’s purpose and to accept

12 assistance from volunteers.

13 (e) NATIONAL INSTITUTE FOR LITERACY ADVISORY

14 BOARD.—

15 (1) ESTABLISHMENT.—

16 (A) IN GENERAL.—There shall be a Na17 tional Institute for Literacy Advisory Board,

18 which shall consist of 10 individuals appointed

19 by the President with the advice and consent of

20 the Senate.

21 (B) COMPOSITION.—The Board shall com22 prise individuals who are not otherwise officers

23 or employees of the Federal Government and

24 who are representative of such entities as—
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•S 1186 RS

1 (i) literacy organizations and provid2 ers of literacy services, including nonprofit

3 providers, providers of English as a second

4 language programs and services, social

5 service organizations, and eligible providers

6 receiving assistance under this subtitle;

7 (ii) businesses that have demonstrated

8 interest in literacy programs;

9 (iii) literacy students, including lit10 eracy students with disabilities;

11 (iv) experts in the area of literacy

12 research;

13 (v) State and local governments;

14 (vi) State Directors of adult edu15 cation; and

16 (vii) labor organizations.

17 (2) DUTIES.—The Board shall—

18 (A) make recommendations concerning the

19 appointment of the Director and staff of the In20 stitute; and

21 (B) provide independent advice on the op22 eration of the Institute.

23 (3) APPOINTMENTS.—

24 (A) IN GENERAL.—Appointments to the

25 Board made after the date of enactment of the
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•S 1186 RS

1 Workforce Investment Partnership Act shall be

2 for 3-year terms, except that the initial terms

3 for members may be established at 1, 2, or 3

4 years in order to establish a rotation in which

1 5 ⁄3 of the members are selected each year.

6 (B) VACANCIES.—Any member appointed

7 to fill a vacancy occurring before the expiration

8 of the term for which the member’s predecessor

9 was appointed shall be appointed only for the

10 remainder of that term. A member may serve

11 after the expiration of that member’s term until

12 a successor has taken office.

13 (4) OFFICERS.—The Chairperson and Vice

14 Chairperson of the Board shall be elected by the

15 members.

16 (5) MEETINGS.—The Board shall meet at the

17 call of the Chairperson or a majority of its members.

18 (f) GIFTS, BEQUESTS, AND DEVISES.—

19 (1) IN GENERAL.—The Institute may accept,

20 administer, and use gifts or donations of services,

21 money, or property, whether real or personal, tan22 gible or intangible.

23 (2) RULES.—The Board shall establish written

24 rules setting forth the criteria to be used by the In25 stitute in determining whether the acceptance of
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1 contributions of services, money, or property whether

2 real or personal, tangible or intangible, would reflect

3 unfavorably upon the ability of the Institute or any

4 employee to carry out its responsibilities or official

5 duties in a fair and objective manner, or would com6 promise the integrity or the appearance of the integ7 rity of its programs or any official involved in those

8 programs.

9 (g) MAILS.—The Board and the Institute may use

10 the United States mails in the same manner and under

11 the same conditions as other departments and agencies of

12 the United States.

13 (h) STAFF.—The Interagency Group, after consider14 ing recommendations made by the Board, shall appoint

15 and fix the pay of a Director.

16 (i) APPLICABILITY OF CERTAIN CIVIL SERVICE

17 LAWS.—The Director and staff of the Institute may be

18 appointed without regard to the provisions of title 5, Unit19 ed States Code, governing appointments in the competitive

20 service, and may be paid without regard to the provisions

21 of chapter 51 and subchapter III of chapter 53 of that

22 title relating to classification and General Schedule pay

23 rates, except that an individual so appointed may not re24 ceive pay in excess of the annual rate of basic pay payable

25 for level IV of the Executive Schedule.
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1 (j) EXPERTS AND CONSULTANTS.—The Institute

2 may procure temporary and intermittent services under

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

4 (k) REPORT.—The Institute shall submit a biennial

5 report to the Interagency Group and Congress.

6 (l) NONDUPLICATION.—The Institute shall not dupli7 cate any functions carried out by the Secretary, the Sec8 retary of Labor, or the Secretary of Health and Human

9 Services under this subtitle. This subsection shall not be

10 construed to prohibit the Secretaries from delegating such

11 functions to the Institute.

12 (m) FUNDING.—Any amounts appropriated to the

13 Secretary, the Secretary of Labor, the Secretary of Health

14 and Human Services, or any other department that par15 ticipates in the Institute for purposes that the Institute

16 is authorized to perform under this section may be pro17 vided to the Institute for such purposes.

18 SEC. 246. AUTHORIZATION OF APPROPRIATIONS.

19 There are authorized to be appropriated to carry out

20 this title such sums as may be necessary for fiscal year

21 1998 and each of the 3 succeeding fiscal years.

22 Subtitle B—Repeal

23 SEC. 251. REPEAL.

24 (a) REPEAL.—The Adult Education Act (20 U.S.C.

25 1201 et. seq.) is repealed.
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1 (b) CONFORMING AMENDMENTS.—

2 (1) REFUGEE EDUCATION ASSISTANCE ACT.—

3 Subsection (b) of section 402 of the Refugee Edu4 cation Assistance Act of 1980 (8 U.S.C. 1522 note)

5 is repealed.

6 (2) ELEMENTARY AND SECONDARY EDUCATION

7 ACT OF 1965.—

8 (A) SECTION 1202 OF ESEA.—Section

9 1202(c)(1) of the Elementary and Secondary

10 Education Act of 1965 (20 U.S.C. 6362(c)(1))

11 is amended by striking ‘‘Adult Education Act’’

12 and inserting ‘‘Workforce Investment Partner13 ship Act of 1997’’.

14 (B) SECTION 1205 OF ESEA.—Section

15 1205(8)(B) of such Act (20 U.S.C. 6365(8)(B))

16 is amended by striking ‘‘Adult Education Act’’

17 and inserting ‘‘Workforce Investment Partner18 ship Act of 1997’’.

19 (C) SECTION 1206 OF ESEA.—Section

20 1206(a)(1)(A) of such Act (20 U.S.C.

21 6366(a)(1)(A)) is amended by striking ‘‘an

22 adult basic education program under the Adult

23 Education Act’’ and inserting ‘‘adult education

24 and literacy activities under the Workforce In25 vestment Partnership Act of 1997’’.
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1 (D) SECTION 3113 OF ESEA.—Section

2 3113(1) of such Act (20 U.S.C. 6813(1)) is

3 amended by striking ‘‘section 312 of the Adult

4 Education Act’’ and inserting ‘‘section 2 of the

5 Workforce Investment Partnership Act of

6 1997’’.

7 (E) SECTION 9161 OF ESEA.—Section

8 9161(2) of such Act (20 U.S.C. 7881(2)) is

9 amended by striking ‘‘section 312(2) of the

10 Adult Education Act’’ and inserting ‘‘section 2

11 of the Workforce Investment Partnership Act of

12 1997’’.

13 (3) OLDER AMERICANS ACT OF 1965.—Section

14 203(b)(8) of the Older Americans Act of 1965 (42

15 U.S.C. 3013(b)(8)) is amended by striking ‘‘Adult

16 Education Act’’ and inserting ‘‘Workforce Invest17 ment Partnership Act of 1997’’.

18 (4) NATIONAL LITERACY ACT OF 1991.—The

19 National Literacy Act of 1991 (20 U.S.C. 1201

20 note) is repealed.
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1 TITLE III—WORKFORCE INVEST2 MENT AND RELATED ACTIVI3 TIES

4 Subtitle A—Workforce Investment

5 Activities

6 CHAPTER 1—ALLOTMENTS TO STATES

7 FOR ADULT EMPLOYMENT AND TRAIN8 ING ACTIVITIES, DISLOCATED WORK9 ER EMPLOYMENT AND TRAINING AC10 TIVITIES, AND YOUTH ACTIVITIES

11 SEC. 301. GENERAL AUTHORIZATION.

12 The Secretary of Labor shall make an allotment to

13 each State that has a State plan approved under section

14 304 and a grant to each outlying area that complies with

15 the requirements of this title, to enable the State or outly16 ing area to assist local areas in providing, through a state17 wide workforce investment system—

18 (1) adult employment and training activities;

19 (2) dislocated worker employment and training

20 activities; and

21 (3) youth activities, including summer employ22 ment opportunities, tutoring, activities to promote

23 study skills, alternative secondary school services,

24 employment skill training, adult mentoring, and sup25 portive services.
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•S 1186 RS

1 SEC. 302. STATE ALLOTMENTS.

2 (a) IN GENERAL.—The Secretary shall—

3 (1) make allotments and grants from the total

4 amount appropriated under section 322(a) for a fis5 cal year in accordance with subsection (b)(1);

6 (2)(A) reserve 20 percent of the amount appro7 priated under section 322(b) for a fiscal year for use

8 under section 366(b)(2), 367(f), and 369; and

9 (B) make allotments and grants from 80 per10 cent of the amount appropriated under section

11 322(b) for a fiscal year in accordance with sub12 section (b)(2); and

13 (3)(A) for each fiscal year in which the amount

14 appropriated under section 322(c) exceeds

15 $1,000,000,000, reserve a portion determined under

16 subsection (b)(3)(A) of the amount appropriated

17 under section 322(c) for use under sections 362 and

18 364; and

19 (B) use the remainder of the amount appro20 priated under section 322(c) for a fiscal year to

21 make allotments and grants in accordance with sub22 paragraphs (B) and (C) of subsection (b)(3) and

23 make funds available for use under section 361.

24 (b) ALLOTMENT AMONG STATES.—

25 (1) ADULT EMPLOYMENT AND TRAINING AC26 TIVITIES.—
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•S 1186 RS

1 (A) OUTLYING AREAS.—

2 (i) IN GENERAL.—From the amount

3 made available under subsection (a)(1) for

4 a fiscal year, the Secretary shall reserve

not more than 1 5 ⁄4 of 1 percent—

6 (I) to provide assistance to the

7 outlying areas to carry out adult em8 ployment and training activities; and

9 (II) for each of the fiscal years

10 1999 through 2003, to carry out the

11 competition described in clause (iii),

12 except that the amount reserved to

13 carry out such clause for any such fis14 cal year shall not exceed the amount

15 reserved for the Freely Associated

16 States for fiscal year 1998, from

17 amounts reserved under section

18 202(a)(1) of the Job Training Part19 nership Act (29 U.S.C. 1602(a)(1))

20 (as in effect on the day before the

21 date of enactment of this Act).

22 (ii) APPLICATION.—To be eligible to

23 receive a grant under this subparagraph,

24 an outlying area shall submit an applica25 tion to the Secretary at such time, in such
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•S 1186 RS

1 manner, and containing such information

2 and assurances as the Secretary may re3 quire.

4 (iii) COMPETITIVE GRANTS.—The Sec5 retary shall use funds described in clause

6 (i)(II) to make grants to outlying areas to

7 carry out adult employment and training

8 activities.

9 (iv) BASIS.—The Secretary shall

10 make grants pursuant to clause (iii) on a

11 competitive basis and pursuant to the rec12 ommendations of experts in the field of

13 employment and training, working through

14 the Pacific Region Educational Laboratory

15 in Honolulu, Hawaii.

16 (v) ASSISTANCE REQUIREMENTS.—

17 Any Freely Associated State that desires

18 to receive a grant made under this sub19 paragraph shall include in the application

20 of the State for assistance—

21 (I) information demonstrating

22 that the State will meet all conditions

23 of the regulations described in clause

24 (ix); and
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1 (II) an assurance that, notwith2 standing any other provision of this

3 title, the State will use the amounts

4 made available through such grants

5 only for the direct provision of serv6 ices.

7 (vi) TERMINATION OF ELIGIBILITY.—

8 Notwithstanding any other provision of

9 law, the Freely Associated States shall not

10 receive any funds under this subparagraph

11 for any program year that begins after

12 September 30, 2004.

13 (vii) ADMINISTRATIVE COSTS.—The

14 Secretary may provide not more than 5

15 percent of the amount made available for

16 grants under clause (iii) to pay the admin17 istrative costs of the Pacific Region Edu18 cational Laboratory in Honolulu, Hawaii,

19 regarding activities assisted under this

20 subparagraph.

21 (viii) ADDITIONAL REQUIREMENT.—

22 The provisions of Public Law 95–134, per23 mitting the consolidation of grants by the

24 outlying areas shall not apply to funds pro25 vided to those areas, including the Freely
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•S 1186 RS

1 Associated States, under this subpara2 graph.

3 (ix) REGULATIONS.—The Secretary

4 shall issue regulations specifying require5 ments of this title that apply to outlying

6 areas receiving funds under this subpara7 graph.

8 (x) DEFINITION.—In this subpara9 graph, the term ‘‘Freely Associated

10 States’’ means the Republic of the Mar11 shall Islands, the Federated States of Mi12 cronesia, and the Republic of Palau.

13 (B) STATES.—

14 (i) IN GENERAL.—After determining

15 the amount to be reserved under subpara16 graph (A), the Secretary shall allot the re17 mainder of the amount referred to in sub18 section (a)(1) relating to a fiscal year to

19 the States pursuant to clause (ii) for adult

20 employment and training activities.

21 (ii) FORMULA.—Subject to clauses

22 (iii) and (iv), of the remainder—

(I) 331 23 ⁄3 percent shall be allotted

24 on the basis of the relative number of

25 unemployed individuals in areas of
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•S 1186 RS

1 substantial unemployment in each

2 State as compared to the total num3 ber of unemployed individuals in areas

4 of substantial unemployment in all

5 States;

(II) 331 6 ⁄3 percent shall be allot7 ted on the basis of the relative excess

8 number of unemployed individuals in

9 each State as compared to the total

10 excess number of unemployed individ11 uals in all States; and

(III) 331 12 ⁄3 percent shall be allot13 ted on the basis of the relative num14 ber of disadvantaged adults in each

15 State as compared to the total num16 ber of disadvantaged adults in all

17 States.

18 (iii) MINIMUM AND MAXIMUM PER19 CENTAGES.—

20 (I) MINIMUM PERCENTAGE.—No

21 State shall receive an allotment per22 centage for a fiscal year that is less

23 than 90 percent of the allotment per24 centage of the State for the preceding

25 fiscal year.
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•S 1186 RS

1 (II) MAXIMUM PERCENTAGE.—

2 No State shall receive an allotment

3 percentage for a fiscal year that is

4 more than 130 percent of the allot5 ment percentage of the State for the

6 preceding fiscal year.

7 (iv) SMALL STATE MINIMUM ALLOT8 MENT.—No State shall receive an allot9 ment under this subparagraph that is less

than 1 10 ⁄2 of 1 percent of the remainder de11 scribed in clause (i) for a fiscal year.

12 Amounts necessary for increasing such al13 lotments to States to comply with the pre14 ceding sentence shall be obtained by rat15 ably reducing the allotments to be made to

16 other States under this subparagraph.

17 (v) DEFINITIONS.—In this subpara18 graph:

19 (I) ALLOTMENT PERCENTAGE.—

20 The term ‘‘allotment percentage’’,

21 used with respect to fiscal year 1999

22 or a subsequent fiscal year, means a

23 percentage of the remainder described

24 in clause (i), received through an al25 lotment made under this subpara-
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•S 1186 RS

1 graph, for the fiscal year. The term,

2 used with respect to fiscal year 1998,

3 means the percentage of the amounts

4 allocated under section 202(b) of the

5 Job Training Partnership Act (29

6 U.S.C. 1602(b)) (as in effect on the

7 day before the date of enactment of

8 this Act) received under such section

9 by service delivery areas in the State

10 involved for fiscal year 1998.

11 (II) AREA OF SUBSTANTIAL UN12 EMPLOYMENT.—The term ‘‘area of

13 substantial unemployment’’ means

14 any area that is of sufficient size and

15 scope to sustain a program of

16 workforce investment activities carried

17 out under this subtitle and that has

18 an average rate of unemployment of

19 at least 6.5 percent for the most re20 cent 12 months, as determined by the

21 Secretary. For purposes of this sub22 clause, determinations of areas of sub23 stantial unemployment shall be made

24 once each fiscal year.
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•S 1186 RS

1 (III) DISADVANTAGED ADULT.—

2 The term ‘‘disadvantaged adult’’

3 means an individual who is not less

4 than age 22 and not more than age

5 72 and is a low-income individual.

6 (IV) EXCESS NUMBER.—The

7 term ‘‘excess number’’ means the

8 number of unemployed individuals in

9 excess of 4.5 percent of the civilian

10 labor force in a State.

11 (2) DISLOCATED WORKER EMPLOYMENT AND

12 TRAINING.—

13 (A) OUTLYING AREAS.—

14 (i) IN GENERAL.—From the amount

15 made available under subsection (a)(2)(B)

16 for a fiscal year, the Secretary shall reserve not more than 1 17 ⁄4 of 1 percent—

18 (I) to provide assistance to the

19 outlying areas to carry out dislocated

20 worker employment and training ac21 tivities; and

22 (II) for each of the fiscal years

23 1999 through 2003, to carry out the

24 competition described in clause (iii),

25 except that the amount reserved to
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•S 1186 RS

1 carry out such clause for any such fis2 cal year shall not exceed the amount

3 reserved for the Freely Associated

4 States for fiscal year 1998, from

5 amounts reserved under section

6 302(b) of the Job Training Partner7 ship Act (29 U.S.C. 1652(b)) (as in

8 effect on the day before the date of

9 enactment of this Act).

10 (ii) APPLICATION.—To be eligible to

11 receive a grant under this subparagraph,

12 an outlying area shall submit an applica13 tion to the Secretary at such time, in such

14 manner, and containing such information

15 and assurances as the Secretary may re16 quire.

17 (iii) COMPETITIVE GRANTS.—The Sec18 retary shall use funds described in clause

19 (i)(II) to make grants to outlying areas to

20 carry out dislocated worker employment

21 and training activities.

22 (iv) BASIS.—The Secretary shall

23 make grants pursuant to clause (iii) on a

24 competitive basis and pursuant to the rec25 ommendations of experts in the field of
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•S 1186 RS

1 employment and training, working through

2 the Pacific Region Educational Laboratory

3 in Honolulu, Hawaii.

4 (v) ASSISTANCE REQUIREMENTS.—

5 Any Freely Associated State that desires

6 to receive a grant made under this sub7 paragraph shall include in the application

8 of the State for assistance—

9 (I) information demonstrating

10 that the State will meet all conditions

11 of the regulations described in clause

12 (ix); and

13 (II) an assurance that, notwith14 standing any other provision of this

15 title, the State will use the amounts

16 made available through such grants

17 only for the direct provision of serv18 ices.

19 (vi) TERMINATION OF ELIGIBILITY.—

20 Notwithstanding any other provision of

21 law, the Freely Associated States shall not

22 receive any funds under this subparagraph

23 for any program year that begins after

24 September 30, 2004.
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•S 1186 RS

1 (vii) ADMINISTRATIVE COSTS.—The

2 Secretary may provide not more than 5

3 percent of the amount made available for

4 grants under clause (iii) to pay the admin5 istrative costs of the Pacific Region Edu6 cational Laboratory in Honolulu, Hawaii,

7 regarding activities assisted under this

8 subparagraph.

9 (viii) ADDITIONAL REQUIREMENT.—

10 The provisions of Public Law 95–134, per11 mitting the consolidation of grants by the

12 outlying areas, shall not apply to funds

13 provided to those areas, including the

14 Freely Associated States, under this sub15 paragraph.

16 (ix) REGULATIONS.—The Secretary

17 shall issue regulations specifying require18 ments of this title that apply to outlying

19 areas receiving funds under this subpara20 graph.

21 (x) DEFINITION.—In this subpara22 graph, the term ‘‘Freely Associated

23 States’’ means the Republic of the Mar24 shall Islands, the Federated States of Mi25 cronesia, and the Republic of Palau.
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•S 1186 RS

1 (B) STATES.—

2 (i) IN GENERAL.—After determining

3 the amount to be reserved under subpara4 graph (A), the Secretary shall allot the re5 mainder of the amount referred to in sub6 section (a)(2)(B) relating to a fiscal year

7 to the States pursuant to clause (ii) for

8 dislocated worker employment and training

9 activities.

10 (ii) FORMULA.—Subject to clause

11 (iii), of the remainder—

(I) 331 12 ⁄3 percent shall be allotted

13 on the basis of the relative number of

14 unemployed individuals in each State

15 as compared to the total number of

16 unemployed individuals in all States;

(II) 331 17 ⁄3 percent shall be allot18 ted on the basis described in para19 graph (1)(B)(ii)(II); and

(III) 331 20 ⁄3 percent shall be allot21 ted on the basis of the relative num22 ber of individuals in each State who

23 have been unemployed for 15 weeks or

24 more as compared to the total number

25 of individuals in all States who have
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•S 1186 RS

1 been unemployed for 15 weeks or

2 more.

3 (iii) SMALL STATE MINIMUM ALLOT4 MENT.—

5 (I) IN GENERAL.—Except as pro6 vided in subclause (II), the require7 ments of clauses (iv) and (v) of para8 graph (1)(B) shall apply to allotments

9 made under this subparagraph in the

10 same manner and to the same extent

11 as the requirements apply to allot12 ments made under paragraph (1)(B).

13 (II) EXCEPTION.—For purposes

14 of applying the requirements of those

15 clauses under this subparagraph ref16 erences in those clauses to the re17 mainder described in clause (i) of

18 paragraph (1)(B) shall be considered

19 to be references to the remainder de20 scribed in clause (i) of this subpara21 graph.

22 (3) YOUTH ACTIVITIES.—

23 (A) YOUTH OPPORTUNITY GRANTS.—

24 (i) IN GENERAL.—For each fiscal year

25 in which the amount appropriated under
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1 section 322(c) exceeds $1,000,000,000, the

2 Secretary shall reserve a portion of the

3 amount to provide youth opportunity

4 grants under section 364 and provide

5 youth activities under section 362.

6 (ii) PORTION.—The portion referred

7 to in clause (i) shall equal, for a fiscal

8 year—

9 (I) except as provided in sub10 clause (II), the difference obtained by

11 subtracting $1,000,000,000 from the

12 amount described in clause (i); and

13 (II) for any fiscal year in which

14 the amount is $1,250,000,000 or

15 greater, $250,000,000.

16 (iii) YOUTH ACTIVITIES FOR FARM17 WORKERS.—From the portion described in

18 clause (i) for a fiscal year, the Secretary

19 shall make available $10,000,000 to pro20 vide youth activities under section 362.

21 (B) OUTLYING AREAS.—

22 (i) IN GENERAL.—From the amount

23 made available under subsection (a)(3)(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 youth ac3 tivities; and

4 (II) for each of the fiscal years

5 1999 through 2003, to carry out the

6 competition described in clause (iii),

7 except that the amount reserved to

8 carry out such clause for any such fis9 cal year shall not exceed the amount

10 reserved for the Freely Associated

11 States for fiscal year 1998, from

12 amounts reserved under sections

13 252(a) and 262(a)(1) of the Job

14 Training Partnership Act (29 U.S.C.

15 and 1631(a) and 1642(a)(1)) (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 youth activities.

5 (iv) BASIS.—The Secretary shall

6 make grants pursuant to clause (iii) on a

7 competitive basis and pursuant to the rec8 ommendations of experts in the field of

9 employment and training, working through

10 the Pacific Region Educational Laboratory

11 in Honolulu, Hawaii.

12 (v) ASSISTANCE REQUIREMENTS.—

13 Any Freely Associated State that desires

14 to receive a grant made under this sub15 paragraph shall include in the application

16 of the State for assistance—

17 (I) information demonstrating

18 that the State will meet all conditions

19 of the regulations described in clause

20 (ix); and

21 (II) an assurance that, notwith22 standing any other provision of this

23 title, the State will use the amounts

24 made available through such grants
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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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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 (C) STATES.—

10 (i) IN GENERAL.—After determining

11 the amounts to be reserved under subpara12 graph (A) (if any) and subparagraph (B),

13 the Secretary shall—

14 (I) from the amount referred to

15 in subsection (a)(3)(B) relating to a

16 fiscal year, make available

17 $15,000,000 to provide youth activi18 ties under section 361; and

19 (II) allot the remainder of the

20 amount referred to in subsection

21 (a)(3)(B) relating to a fiscal year to

22 the States pursuant to clause (ii) for

23 youth activities.

24 (ii) FORMULA.—Subject to clause

25 (iii), of the remainder—
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(I) 331 1 ⁄3 percent shall be allotted

2 on the basis described in paragraph

3 (1)(B)(ii)(I);

(II) 331 4 ⁄3 percent shall be allot5 ted on the basis described in para6 graph (1)(B)(ii)(II); and

(III) 331 7 ⁄3 percent shall be allot8 ted on the basis of the relative num9 ber of disadvantaged youth in each

10 State as compared to the total num11 ber of disadvantaged youth in all

12 States.

13 (iii) MINIMUM PERCENTAGE; MAXI14 MUM PERCENTAGE; SMALL STATE MINI15 MUM ALLOTMENT.—

16 (I) IN GENERAL.—Except as pro17 vided in subclause (II), the require18 ments of clauses (iii), (iv), and (v) of

19 paragraph (1)(B) shall apply to allot20 ments made under this subparagraph

21 in the same manner and to the same

22 extent as the requirements apply to

23 allotments made under paragraph

24 (1)(B).
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1 (II) EXCEPTIONS.—For purposes

2 of applying the requirements of those

3 clauses under this subparagraph—

4 (aa) references in those

5 clauses to the remainder de6 scribed in clause (i) of paragraph

7 (1)(B) shall be considered to be

8 references to the remainder de9 scribed in clause (i)(II) of this

10 subparagraph; and

11 (bb) the term ‘‘allotment

12 percentage’’, used with respect to

13 fiscal year 1998, means the per14 centage of the amounts allocated

15 under sections 252(b) and 262(b)

16 of the Job Training Partnership

17 Act (29 U.S.C. 1631(b) and

18 1642(b)) (as in effect on the day

19 before the date of enactment of

20 this Act) received under such sec21 tions by service delivery areas in

22 the State involved for fiscal year

23 1998.

24 (iv) DEFINITION.—In this subpara25 graph, the term ‘‘disadvantaged youth’’
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1 means an individual who is not less than

2 age 14 and is not more than age 21 and

3 is a low-income individual.

4 SEC. 303. STATEWIDE PARTNERSHIP.

5 (a) IN GENERAL.—The Governor of a State shall es6 tablish and appoint the members of a statewide partner7 ship to assist in the development of the State plan de8 scribed in section 304 and carry out the functions de9 scribed in subsection (d).

10 (b) MEMBERSHIP.—The statewide partnership shall

11 include—

12 (1) the Governor;

13 (2) representatives, appointed by the Gov14 ernor—

15 (A) a majority of whom—

16 (i) are representatives of business in

17 the State;

18 (ii) are owners of businesses, chief ex19 ecutives or operating officers of private

20 businesses, and other business executives

21 or employers with optimum policymaking

22 or hiring authority, including members of

23 local partnerships described in section

24 308(c)(2)(A)(i);
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1 (iii) represent businesses with employ2 ment opportunities that reflect the employ3 ment opportunities of the State; and

4 (iv) are appointed from among indi5 viduals nominated by State business orga6 nizations and business trade associations;

7 (B) the remainder of whom are individuals

8 who have optimum policymaking authority, in9 cluding—

10 (i) representatives of—

11 (I) chief elected officials (rep12 resenting both cities and counties,

13 where appropriate);

14 (II) labor organizations, who

15 have been nominated by State labor

16 federations;

17 (III) individuals, and organiza18 tions, that have experience relating to

19 youth activities;

20 (ii) the eligible agency officials respon21 sible for vocational education, including

22 postsecondary vocational education, and

23 for adult education and literacy, and the

24 State officials responsible for postsecond-
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1 ary education (including education in com2 munity colleges); and

3 (iii) the State agency official respon4 sible for vocational rehabilitation, and

5 where applicable, the State agency official

6 responsible for providing vocational reha7 bilitation program activities for the blind;

8 (3) such other State agency officials as the

9 Governor may designate, such as State agency offi10 cials carrying out activities relating to employment

11 and training, economic development, public assist12 ance, veterans, youth, juvenile justice and the em13 ployment service established under the Wagner14 Peyser Act (29 U.S.C. 49 et seq.); and

15 (4) two members of each chamber of the State

16 legislature, appointed by the appropriate presiding

17 officer of the chamber.

18 (c) CHAIRMAN.—The Governor shall select a chair19 person for the statewide partnership from among the rep20 resentatives described in subsection (b)(2)(A).

21 (d) FUNCTIONS.—In addition to developing the State

22 plan, the statewide partnership shall—

23 (1) advise the Governor on the development of

24 a comprehensive statewide workforce investment sys25 tem;
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1 (2) assist the Governor in preparing the annual

2 report to the Secretaries described in section 321(c);

3 (3) assist the Governor in developing the state4 wide labor market information system described in

5 section 15(d) of the Wagner-Peyser Act; and

6 (4) assist in the monitoring and continuous im7 provement of the performance of the statewide

8 workforce investment system, including the evalua9 tion of the effectiveness of workforce investment ac10 tivities carried out under this subtitle in serving the

11 needs of employers seeking skilled employees and in12 dividuals seeking services.

13 (e) AUTHORITY OF GOVERNOR.—

14 (1) AUTHORITY.—The Governor shall have the

15 final authority to determine the contents of and sub16 mit the State plan described in section 304.

17 (2) PROCESS.—Prior to the date on which the

18 Governor submits a State plan under section 304,

19 the Governor shall—

20 (A) make available copies of a proposed

21 State plan to the public;

22 (B) allow members of the statewide part23 nership and members of the public to submit

24 comments on the proposed State plan to the

25 Governor, not later than the end of the 30-day
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1 period beginning on the date on which the pro2 posed State plan is made available; and

3 (C) include with the State plan submitted

4 to the Secretary under section 304 any such

5 comments that represent disagreement with the

6 plan.

7 SEC. 304. STATE PLAN.

8 (a) IN GENERAL.—For a State to be eligible to re9 ceive an allotment under section 302, the Governor of the

10 State shall submit to the Secretary for approval a single

11 comprehensive State plan (referred to in this title as the

12 ‘‘State plan’’) that outlines a 3-year strategy for the state13 wide workforce investment system of the State and that

14 meets the requirements of section 303 and this section.

15 (b) CONTENTS.—The State plan shall include—

16 (1) a description of the statewide partnership

17 described in section 303 used in developing the plan;

18 (2) a description of State-imposed requirements

19 for the statewide workforce investment system;

20 (3) a description of the State performance

21 measures developed for the workforce investment ac22 tivities to be carried out through the system, that in23 cludes information identifying the State performance

24 measures, established in accordance with section

25 321(a);
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1 (4) information describing—

2 (A) the needs of the State with regard to

3 current and projected employment opportuni4 ties;

5 (B) the job skills necessary to obtain the

6 needed employment opportunities;

7 (C) the economic development needs of the

8 State; and

9 (D) the type and availability of workforce

10 investment activities in the State;

11 (5) an identification of local areas designated in

12 the State, including a description of the process used

13 for the designation of such areas, which shall—

14 (A) ensure a linkage between participants

15 in workforce investment activities funded under

16 this subtitle, and local employment opportuni17 ties;

18 (B) ensure that a significant portion of the

19 population that lives in the local area also

20 works in the same local area;

21 (C) ensure cooperation and coordination of

22 activities between neighboring local areas; and

23 (D) take into consideration State economic

24 development areas;
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1 (6) an identification of criteria for the appoint2 ment of members of local partnerships based on the

3 requirements of section 308;

4 (7) the detailed plans required under section 8

5 of the Wagner-Peyser Act;

6 (8) a description of the measures that will be

7 taken by the State to assure coordination of and

8 avoid duplication among—

9 (A) workforce investment activities author10 ized under this subtitle;

11 (B) other activities authorized under this

12 title;

13 (C) activities authorized under title I or II;

14 (D) programs authorized under the Wag15 ner-Peyser Act (29 U.S.C. 49 et seq.), title I of

16 the Rehabilitation Act of 1973 (29 U.S.C. 720

17 et seq.), part A of title IV of the Social Security

18 Act (42 U.S.C. 601 et seq.), and section 6(d)

19 of the Food Stamp Act of 1977 (7 U.S.C.

20 2015(d)), and activities authorized under title V

21 of the Older Americans Act of 1965 (42 U.S.C.

22 3056 et seq.);

23 (E) work programs authorized under sec24 tion 6(o) of the Food Stamp Act of 1977 (7

25 U.S.C. 2015(o));
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1 (F) activities authorized under chapter 2

2 of title II of the Trade Act of 1974 (19 U.S.C.

3 2271 et seq.);

4 (G) activities authorized under chapter 41

5 of title 38, United States Code;

6 (H) activities carried out by the Bureau of

7 Apprenticeship and Training;

8 (I) training activities carried out by the

9 Department of Housing and Urban Develop10 ment; and

11 (J) programs authorized under State un12 employment compensation laws and the Federal

13 unemployment insurance program under titles

14 III, IX, and XII of the Social Security Act (42

15 U.S.C. 501 et seq., 1101 et seq., and 1321 et

16 seq.);

17 (9) a description of the process used by the

18 State to provide an opportunity for public comment,

19 and input into the development of the State plan,

20 prior to submission of the plan;

21 (10) a description of the process for the public

22 to comment on members of the local partnerships;

23 (11) a description of the length of terms and

24 appointment processes for members of the statewide

25 partnership and local partnerships in the State;
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1 (12) information identifying how the State will

2 leverage any funds the State receives under this sub3 title with other private and Federal resources;

4 (13) assurances that the State will provide, in

5 accordance with section 374, for fiscal control and

6 fund accounting procedures that may be necessary

7 to ensure the proper disbursement of, and account8 ing for, funds paid to the State through the allot9 ment made under section 302;

10 (14) if appropriate, a description of a within11 State allocation formula—

12 (A) that is based on factors relating to ex13 cess poverty in local areas or excess unemploy14 ment above the State average in local areas;

15 and

16 (B) through which the State may distrib17 ute the funds the State receives under this sub18 title for adult employment and training activi19 ties or youth activities to local areas;

20 (15) an assurance that the funds made avail21 able to the State through the allotment made under

22 section 302 will supplement and not supplant other

23 public funds expended to provide activities described

24 in this subtitle;

25 (16) information indicating—
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1 (A) how the services of one-stop partners

2 in the State will be provided through the one3 stop customer service system;

4 (B) how the costs of such services and the

5 operating costs of the system will be funded;

6 and

7 (C) how the State will assist in the devel8 opment and implementation of the operating

9 agreement described in section 311(c);

10 (17) information specifying the actions that

11 constitute a conflict of interest prohibited in the

12 State for purposes of section 308(g)(2)(B);

13 (18) a description of a core set of consistently

14 defined data elements for reporting on the activities

15 carried out through the one-stop customer service

16 system in the State;

17 (19) with respect to employment and training

18 activities funded under this subtitle, information—

19 (A) describing the employment and train20 ing activities that will be carried out with the

21 funds the State receives under this subtitle, and

22 a description of how the State will provide rapid

23 response activities to dislocated workers;

24 (B) describing the State strategy for devel25 opment of a fully operational statewide one-stop
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1 customer service system as described in section

2 315(b), including—

3 (i) criteria for use by chief elected of4 ficials and local partnerships, for designat5 ing or certifying one-stop customer service

6 center operators, appointing one-stop part7 ners, and conducting oversight with respect

8 to the one-stop customer service system,

9 for each local area; and

10 (ii) the steps that the State will take

11 over the 3 years covered by the plan to en12 sure that all publicly funded labor ex13 change services described in section

14 315(c)(2) or the Wagner-Peyser Act (29

15 U.S.C. 49 et seq.), will be available

16 through the one-stop customer service sys17 tem of the State;

18 (C) describing the criteria used by the local

19 partnership in the development of the local plan

20 described in section 309; and

21 (D) describing the procedures the State

22 will use to identify eligible providers of training

23 services, as required under this subtitle; and

24 (20) with respect to youth activities funded

25 under this subtitle, information—
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1 (A) describing the youth activities that will

2 be carried out with the funds the State receives

3 under this subtitle;

4 (B) identifying the criteria to be used by

5 the local partnership in awarding grants under

6 section 313 for youth activities;

7 (C) identifying the types of criteria the

8 Governor and local partnerships will use to

9 identify effective and ineffective youth activities

10 and eligible providers of such activities; and

11 (D) describing how the State will coordi12 nate the youth activities carried out in the

13 State under this subtitle with the services pro14 vided by Job Corps centers in the State.

15 (c) PLAN SUBMISSION AND APPROVAL.—A State

16 plan submitted to the Secretary under this section by a

17 Governor shall be considered to be approved by the Sec18 retary at the end of the 60-day period beginning on the

19 day the Secretary receives the plan, unless the Secretary

20 makes a written determination, during the 60-day period,

21 that—

22 (1) the plan is inconsistent with a specific pro23 vision of this title; or

24 (2) the levels of performance have not been

25 agreed to pursuant to section 321(a)(4).
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1 (d) MODIFICATIONS TO INITIAL PLAN.—A State may

2 submit, for approval by the Secretary, substantial modi3 fications to the State plan in accordance with the require4 ments of this section and section 303, as necessary, during

5 the 3-year period of the plan.

6 CHAPTER 2—ALLOCATIONS TO LOCAL

7 WORKFORCE INVESTMENT AREAS

8 SEC. 306. WITHIN STATE ALLOCATIONS.

9 (a) RESERVATIONS FOR STATE ACTIVITIES.—

10 (1) ADULT EMPLOYMENT AND TRAINING AC11 TIVITIES, DISLOCATED WORKER EMPLOYMENT AND

12 TRAINING ACTIVITIES, AND YOUTH ACTIVITIES.—

13 The Governor of a State shall reserve not more than

14 15 percent of each of the amounts allotted to the

15 State under paragraphs (1)(B), (2)(B), and

16 (3)(C)(ii) of section 302(b) for a fiscal year for

17 statewide workforce investment activities described

18 in subsections (b)(2) and (c) of section 314.

19 (2) STATEWIDE RAPID RESPONSE ACTIVI20 TIES.—The Governor of the State shall reserve not

21 more than 25 percent of the total amount allotted

22 to the State under section 302(b)(2)(B) for a fiscal

23 year for statewide rapid response activities described

24 in section 314(b)(1).

25 (b) WITHIN STATE ALLOCATION.—
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1 (1) ALLOCATION.—The Governor of the State

2 shall allocate to the local areas the funds that are

3 allotted to the State under section 302(b) and are

4 not reserved under subsection (a) for the purpose of

5 providing employment and training activities to eligi6 ble participants pursuant to section 315 and youth

7 activities to eligible participants pursuant to section

8 316.

9 (2) METHODS.—The State, acting in accord10 ance with the State plan, and after consulting with

11 chief elected officials in the local areas, shall allo12 cate—

13 (A) the funds that are allotted to the State

14 for adult employment and training activities

15 under section 302(b)(1)(B) and are not re16 served under subsection (a)(1), in accordance

17 with paragraph (3) or (4);

18 (B) the funds that are allotted to the State

19 for dislocated worker employment and training

20 activities under section 302(b)(2)(B) and are

21 not reserved under paragraph (1) or (2) of sub22 section (a), in accordance with paragraph (3);

23 and

24 (C) the funds that are allotted to the State

25 for youth activities under section
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1 302(b)(3)(C)(ii) and are not reserved under

2 subsection (a)(1), in accordance with paragraph

3 (3) or (4).

4 (3) ADULT EMPLOYMENT AND TRAINING AC5 TIVITIES, DISLOCATED WORKER EMPLOYMENT AND

6 TRAINING ACTIVITIES, AND YOUTH ACTIVITIES FOR7 MULA ALLOCATIONS.—

8 (A) ADULT EMPLOYMENT AND TRAINING

9 ACTIVITIES.—In allocating the funds described

10 in paragraph (2)(A) to local areas, a State may

11 allocate—

(i) 331 12 ⁄3 percent of the funds on the

13 basis described in section

14 302(b)(1)(B)(ii)(I);

(ii) 331 15 ⁄3 percent of the funds on the

16 basis described in section

17 302(b)(1)(B)(ii)(II); and

(iii) 331 18 ⁄3 percent of the funds on the

19 basis described in section

20 302(b)(1)(B)(ii)(III).

21 (B) DISLOCATED WORKER EMPLOYMENT

22 AND TRAINING ACTIVITIES.—In allocating the

23 funds described in paragraph (2)(B) to local

24 areas, a State shall allocate—
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(i) 331 1 ⁄3 percent of the funds on the

2 basis described in section

3 302(b)(2)(B)(ii)(I);

(ii) 331 4 ⁄3 percent of the funds on the

5 basis described in section

6 302(b)(2)(B)(ii)(II); and

(iii) 331 7 ⁄3 percent of the funds on the

8 basis described in section

9 302(b)(2)(B)(ii)(III).

10 (C) YOUTH ACTIVITIES.—In allocating the

11 funds described in paragraph (2)(C) to local

12 areas, a State may allocate—

(i) 331 13 ⁄3 percent of the funds on the

14 basis described in section

15 302(b)(3)(C)(ii)(I);

(ii) 331 16 ⁄3 percent of the funds on the

17 basis described in section

18 302(b)(3)(C)(ii)(II); and

(iii) 331 19 ⁄3 percent of the funds on the

20 basis described in section

21 302(b)(3)(C)(ii)(III).

22 (D) APPLICATION.—For purposes of carry23 ing out subparagraphs (A), (B), and (C), and

24 subparagraphs (A) and (B) of paragraph (4)—
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1 (i) references in section 302(b) to a

2 State shall be deemed to be references to

3 a local area; and

4 (ii) references in section 302(b) to all

5 States shall be deemed to be references to

6 all local areas in the State involved.

7 (4) ADULT EMPLOYMENT AND TRAINING AND

8 YOUTH DISCRETIONARY ALLOCATIONS.—

9 (A) ADULT EMPLOYMENT AND TRAINING

10 ACTIVITIES.—In lieu of making the allocation

11 described in paragraph (3)(A), in allocating the

12 funds described in paragraph (2)(A) to local

13 areas, a State may distribute—

14 (i) a portion equal to not less than 70

15 percent of the funds in accordance with

16 paragraph (3)(A); and

17 (ii) the remaining portion of the funds

18 on the basis of a formula that—

19 (I) takes into consideration fac20 tors relating to excess poverty in local

21 areas or excess unemployment above

22 the State average in local areas; and

23 (II) was developed by the state24 wide partnership and approved by the

25 Secretary as part of the State plan.
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1 (B) YOUTH ACTIVITIES.—In lieu of mak2 ing the allocation described in paragraph

3 (3)(C), in allocating the funds described in

4 paragraph (2)(C) to local areas, a State may

5 distribute—

6 (i) a portion equal to not less than 70

7 percent of the funds in accordance with

8 paragraph (3)(C); and

9 (ii) the remaining portion of the funds

10 on the basis of a formula that—

11 (I) takes into consideration fac12 tors relating to excess youth poverty

13 in local areas or excess unemployment

14 above the State average in local areas;

15 and

16 (II) was developed by the state17 wide partnership and approved by the

18 Secretary as part of the State plan.

19 (5) LIMITATION.—

20 (A) IN GENERAL.—Not more than 15 per21 cent of the amount allocated to a local area for

22 a fiscal year—

23 (i) under paragraph (3)(A) or (4)(A)

24 may be used by the local partnership for

25 the area for the administrative cost of car-
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•S 1186 RS

1 rying out local adult employment and

2 training activities;

3 (ii) under paragraph (3)(B) may be

4 used by the local partnership for the ad5 ministrative cost of carrying out local dis6 located worker employment and training

7 activities; and

8 (iii) under paragraph (3)(C) or (4)(B)

9 may be used by the local partnership for

10 the administrative cost of carrying out

11 local youth activities.

12 (B) REGULATIONS.—The Secretary, after

13 consulting with the Governors, shall develop

14 and issue regulations that define the term ‘‘ad15 ministrative cost’’ for purposes of this title.

16 (6) TRANSFER AUTHORITY.—A local partner17 ship may transfer, if such a transfer is approved by

18 the Governor, not more than 20 percent of the funds

19 allocated to the local area under paragraph (3)(A) or

20 (4)(A), and 20 percent of the funds allocated to the

21 local area under paragraph (3)(B), for a fiscal year

22 between—

23 (A) adult employment and training activi24 ties; and
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1 (B) dislocated worker employment and

2 training activities.

3 (7) FISCAL AUTHORITY.—

4 (A) FISCAL AGENT.—The chief elected of5 ficial in a local area shall serve as the fiscal

6 agent for, and shall be liable for any misuse of,

7 the funds allocated to the local area under this

8 section, unless the chief elected official reaches

9 an agreement with the Governor for the Gov10 ernor to act as the fiscal agent and bear such

11 liability.

12 (B) DISBURSAL.—The fiscal agent shall

13 disburse such funds for workforce investment

14 activities at the direction of the local partner15 ship, pursuant to the requirements of this title,

16 if the direction does not violate a provision of

17 this Act. The fiscal agent shall disburse funds

18 immediately on receiving such direction from

19 the local partnership.

20 SEC. 307. LOCAL WORKFORCE INVESTMENT AREAS.

21 (a) DESIGNATION OF AREAS.—

22 (1) IN GENERAL.—Except as provided in sub23 section (b) and paragraph (2), the Governor shall

24 designate local workforce investment areas in the
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1 State, in accordance with the State plan require2 ments described in section 304(b)(5).

3 (2) AUTOMATIC DESIGNATION.—

4 (A) IN GENERAL.—The Governor of the

5 State shall approve a request for designation as

6 a local area from any unit of general local gov7 ernment with a population of 500,000 or more,

8 if the designation meets the State plan require9 ments described in section 304(b)(5).

10 (B) LARGE COUNTIES.—A county with a

11 population of 500,000 or more may request

12 such designation only with the agreement of the

13 political subdivisions within the county with

14 populations of 200,000 or more.

15 (C) LARGE POLITICAL SUBDIVISIONS.—

16 Single units of general local government with

17 populations of 200,000 or more that are service

18 delivery areas on the date of enactment of this

19 Act shall have an automatic right to request

20 designation as local areas under this section.

21 (3) PERMANENT DESIGNATION.—Once the

22 boundaries for a local area are determined under

23 this section in accordance with the State plan, the

24 boundaries shall not change except with the approval

25 of the Governor.
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1 (b) SMALL STATES.—The Governor of any State de2 termined to be eligible to receive a minimum allotment

3 under paragraph (1), (2), or (3) of section 302(b) for the

4 first year covered by the State plan may designate the

5 State as a single State local area for the purposes of this

6 title. The Governor shall identify the State as a local area

7 under section 304(b)(5), in lieu of designating local areas

8 as described in subparagraphs (A), (B), and (C) of section

9 304(b)(5).

10 SEC. 308. LOCAL WORKFORCE INVESTMENT PARTNER11 SHIPS AND YOUTH PARTNERSHIPS.

12 (a) ESTABLISHMENT OF LOCAL PARTNERSHIP.—

13 There shall be established in each local area of a State,

14 and certified by the Governor of the State, a local

15 workforce investment partnership.

16 (b) ROLE OF LOCAL PARTNERSHIP.—The primary

17 role of the local partnership shall be to set policy for the

18 portion of the statewide workforce investment system

19 within the local area, including—

20 (1) ensuring that the activities authorized

21 under this subtitle and carried out in the local area

22 meet local performance measures that include high

23 academic and skill measures;

24 (2) ensuring that the activities meet the needs

25 of employers and jobseekers; and
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1 (3) ensuring the continuous improvement of the

2 system.

3 (c) MEMBERSHIP OF LOCAL PARTNERSHIP.—

4 (1) STATE CRITERIA.—The Governor of the

5 State shall establish criteria for the appointment of

6 members of the local partnerships for local areas in

7 the State in accordance with the requirements of

8 paragraph (2). Information identifying such criteria

9 shall be included in the State plan, as described in

10 section 304(b)(6).

11 (2) COMPOSITION.—Such criteria shall require,

12 at a minimum, that the membership of each local

13 partnership—

14 (A) shall include—

15 (i) a majority of members who—

16 (I) are representatives of busi17 ness in the local area;

18 (II) are owners of businesses,

19 chief executives or operating officers

20 of private businesses, and other busi21 ness executives or employers with op22 timum policymaking or hiring author23 ity;

24 (III) represent businesses with

25 employment opportunities that reflect
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1 the employment opportunities of the

2 local area; and

3 (IV) are appointed from among

4 individuals nominated by local busi5 ness organizations and business trade

6 associations;

7 (ii) chief officers representing local

8 postsecondary educational institutions, rep9 resentatives of vocational education provid10 ers, and representatives of adult education

11 providers;

12 (iii) chief officers representing labor

13 organizations (for a local area in which

14 such representatives reside), nominated by

15 local labor federations, or (for a local area

16 in which such representatives do not re17 side) other representatives of employees;

18 and

19 (iv) chief officers representing eco20 nomic development agencies, including pri21 vate sector economic development entities;

22 and

23 (B) may include chief officers who have

24 policymaking authority, from one-stop partners

25 who have entered into an operating agreement
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1 described in section 311(c) to participate in the

2 one-stop customer service system in the local

3 area; and

4 (C) may include such other individuals or

5 representatives of entities as the chief elected

6 official in the local area may determine to be

7 appropriate.

8 (3) CHAIRPERSON.—The local partnership shall

9 elect a chairperson from among the members of the

10 partnership described in paragraph (2)(A)(i).

11 (d) APPOINTMENT AND CERTIFICATION OF LOCAL

12 PARTNERSHIP.—

13 (1) APPOINTMENT OF LOCAL PARTNERSHIP

14 MEMBERS AND ASSIGNMENT OF RESPONSIBIL15 ITIES.—

16 (A) IN GENERAL.—The chief elected offi17 cial in a local area is authorized to appoint the

18 members of the local partnership for such area,

19 in accordance with the State criteria established

20 under subsection (c).

21 (B) MULTIPLE UNITS OF LOCAL GOVERN22 MENT IN AREA.—

23 (i) IN GENERAL.—In a case in which

24 a local area includes more than 1 unit of

25 general local government, the chief elected
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1 officials of such units may execute an

2 agreement that specifies the respective

3 roles of the individual chief elected offi4 cials—

5 (I) in the appointment of the

6 members of the local partnership from

7 the individuals nominated or rec8 ommended to be such members in ac9 cordance with the criteria established

10 under subsection (c); and

11 (II) in carrying out any other re12 sponsibilities assigned to such officials

13 under this subtitle.

14 (ii) LACK OF AGREEMENT.—If, after

15 a reasonable effort, the chief elected offi16 cials are unable to reach agreement as pro17 vided under clause (i), the Governor may

18 appoint the members of the local partner19 ship from individuals so nominated or rec20 ommended.

21 (2) CERTIFICATION.—

22 (A) IN GENERAL.—The Governor shall an23 nually certify 1 local partnership for each local

24 area in the State.
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1 (B) CRITERIA.—Such certification shall be

2 based on criteria established under subsection

3 (c) and, for a second or subsequent certifi4 cation, the extent to which the local partnership

5 has ensured that workforce investment activities

6 carried out in the local area have enabled the

7 local area to meet the local performance meas8 ures required under section 321(b).

9 (C) FAILURE TO ACHIEVE CERTIFI10 CATION.—Failure of a local partnership to

11 achieve certification shall result in reappoint12 ment and certification of another local partner13 ship for the local area pursuant to the process

14 described in paragraph (1) and this paragraph.

15 (3) DECERTIFICATION.—

16 (A) IN GENERAL.—Notwithstanding para17 graph (2), the Governor may decertify a local

18 partnership at any time for—

19 (i) fraud or abuse; or

20 (ii) failure to carry out the functions

21 specified for the local partnership in para22 graphs (1) through (5) of subsection (e);

23 after providing notice and an opportunity for

24 comment.
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1 (B) PLAN.—If the Governor decertifies a

2 local partnership for a local area, the Governor

3 may require that a local partnership be ap4 pointed and certified for the local area pursuant

5 to a plan developed by the Governor in con6 sultation with the chief elected official in the

7 local area and in accordance with the criteria

8 established under subsection (c).

9 (4) EXCEPTION.—Notwithstanding subsection

10 (c) and paragraphs (1) and (2), if a State described

11 in section 307(b) designates the State as a local

12 area in the State plan, the Governor may designate

13 the statewide partnership described in section 303 to

14 carry out any of the functions described in sub15 section (e).

16 (e) FUNCTIONS OF LOCAL PARTNERSHIP.—The

17 functions of the local partnership shall include—

18 (1) developing and submitting a local plan as

19 described in section 309 in partnership with the ap20 propriate chief elected official;

21 (2) appointing, certifying, or designating one22 stop partners and one-stop customer service center

23 operators, pursuant to the criteria specified in the

24 local plan;
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1 (3) conducting oversight with respect to the

2 one-stop customer service system;

3 (4) modifying the list of eligible providers of

4 training services pursuant to subsections (b)(3)(B)

5 and (c)(2)(B) of section 312;

6 (5) setting local performance measures pursu7 ant to section 312(b)(2)(D)(ii);

8 (6) analyzing and identifying—

9 (A) current and projected local employ10 ment opportunities; and

11 (B) the skills necessary to obtain such

12 local employment opportunities;

13 (7) coordinating the workforce investment ac14 tivities carried out in the local area with economic

15 development strategies and developing other em16 ployer linkages with such activities; and

17 (8) assisting the Governor in developing the

18 statewide labor market information system described

19 in section 15(d) of the Wagner-Peyser Act.

20 (f) SUNSHINE PROVISION.—The local partnership

21 shall make available to the public, on a regular basis,

22 through open meetings, information regarding the activi23 ties of the local partnership, including information regard24 ing membership, the appointment of one-stop partners,

25 the designation and certification of one-stop customer
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1 service center operators, and the award of grants to eligi2 ble providers of youth activities.

3 (g) OTHER ACTIVITIES OF LOCAL PARTNERSHIP.—

4 (1) LIMITATION.—

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

6 subparagraph (B), no local partnership may di7 rectly carry out or enter into a contract for a

8 training service described in section 315(c)(3).

9 (B) WAIVERS.—The Governor of the State

10 in which the local partnership is located may

11 grant to the local partnership a written waiver

12 of the prohibition set forth in subparagraph

13 (A), if the local partnership provides substantial

14 evidence that a private or public entity is not

15 available to provide the training service and

16 that the activity is necessary to provide an em17 ployment opportunity described in the local plan

18 described in section 309.

19 (2) CONFLICT OF INTEREST.—No member of a

20 local partnership may—

21 (A) vote on a matter under consideration

22 by the local partnership—

23 (i) regarding the provision of services

24 by such member (or by an organization

25 that such member represents); or
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1 (ii) that would provide direct financial

2 benefit to such member or the immediate

3 family of such member; or

4 (B) engage in any other activity deter5 mined by the Governor to constitute a conflict

6 of interest as specified in the State plan.

7 (h) TECHNICAL ASSISTANCE.—If a local area fails to

8 meet established State or local performance measures, the

9 Governor shall provide technical assistance to the local

10 partnership involved to improve the performance of the

11 local area.

12 (i) YOUTH PARTNERSHIP.—

13 (1) ESTABLISHMENT.—There shall be estab14 lished in each local area of a State, a youth partner15 ship appointed by the local partnership, in coopera16 tion with the chief elected official, in the local area.

17 (2) MEMBERSHIP.—The membership of each

18 youth partnership—

19 (A) shall include—

20 (i) 1 or more members of the local

21 partnership;

22 (ii) representatives of youth service

23 agencies, including juvenile justice agen24 cies;
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1 (iii) representatives of local public

2 housing authorities;

3 (iv) parents of youth seeking assist4 ance under this subtitle;

5 (v) individuals, including former par6 ticipants, and representatives of organiza7 tions, that have experience relating to

8 youth activities; and

9 (vi) representatives of the Job Corps,

10 as appropriate; and

11 (B) may include such other individuals as

12 the chairperson of the local partnership, in co13 operation with the chief elected official, deter14 mines to be appropriate.

15 (3) DUTIES.—The duties of the youth partner16 ship include—

17 (A) the development of the portions of the

18 local plan relating to youth, as determined by

19 the chairperson of the local partnership;

20 (B) awarding grants to, and conducting

21 oversight with respect to, eligible providers of

22 youth activities, as described in section 313, in

23 the local area;

24 (C) coordinating youth activities in the

25 local area; and
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1 (D) other duties determined to be appro2 priate by the chairperson of the local partner3 ship.

4 SEC. 309. LOCAL PLAN.

5 (a) IN GENERAL.—Each local partnership shall de6 velop and submit to the Governor a comprehensive 3-year

7 local plan (referred to in this title as the ‘‘local plan’’),

8 in partnership with the appropriate chief elected official.

9 The local plan shall be consistent with the State plan.

10 (b) CONTENTS.—The local plan shall include—

11 (1) an identification of the needs of the local

12 area with regard to current and projected employ13 ment opportunities;

14 (2) an identification of the job skills necessary

15 to obtain such employment opportunities;

16 (3) a description of the activities to be used

17 under this subtitle to link local employers and local

18 job seekers;

19 (4) an identification and assessment of the type

20 and availability of adult and dislocated worker em21 ployment and training activities in the local area;

22 (5) an identification of successful eligible pro23 viders of youth activities in the local area;

24 (6) a description of the measures that will be

25 taken by the local area to assure coordination of and
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1 avoid duplication among the programs and activities

2 described in section 304(b)(8);

3 (7) a description of the manner in which the

4 local partnership will coordinate activities carried

5 out under this subtitle in the local area with such

6 activities carried out in neighboring local areas;

7 (8) a description of the competitive process to

8 be used to award grants in the local area for activi9 ties carried out under this subtitle;

10 (9) information describing local performance

11 measures for the local area that are based on the

12 performance measures in the State plan;

13 (10) in accordance with the State plan, a de14 scription of the criteria that the chief elected official

15 in the local area and the local partnership will use

16 to appoint, designate, or certify, and to conduct

17 oversight with respect to, one-stop customer service

18 center systems in the local area; and

19 (11) such other information as the Governor

20 may require.

21 (c) PLAN SUBMISSION AND APPROVAL.—A local plan

22 submitted to the Governor under this section shall be con23 sidered to be approved by the Governor at the end of the

24 60-day period beginning on the day the Governor receives
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1 the plan, unless the Governor makes a written determina2 tion during the 60-day period that—

3 (1) entities conducting evaluations conducted

4 under section 321(d) in the local area have found

5 deficiencies in activities carried out under this sub6 title and the local area has not made acceptable

7 progress in implementing corrective measures to ad8 dress the deficiencies; or

9 (2) the plan does not comply with this title.

10 (d) LACK OF AGREEMENT.—If the local partnership

11 and the appropriate chief elected official in the local area

12 cannot agree on the local plan after making a reasonable

13 effort, the Governor may develop the local plan.

14 CHAPTER 3—WORKFORCE INVESTMENT

15 ACTIVITIES AND PROVIDERS

16 SEC. 311. IDENTIFICATION AND OVERSIGHT OF ONE-STOP

17 PARTNERS AND ONE-STOP CUSTOMER SERV18 ICE CENTER OPERATORS.

19 (a) IN GENERAL.—Consistent with the State plan,

20 the chief elected official and the local partnership may de21 velop and implement operating agreements described in

22 subsection (c) to appoint one-stop partners, may designate

23 or certify one-stop customer service center operators, and

24 may conduct oversight with respect to the one-stop cus25 tomer service system, in the local area.
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1 (b) ONE-STOP PARTNERS.—

2 (1) DESIGNATED PARTNERS.—

3 (A) IN GENERAL.—Each entity that car4 ries out a program, services, or activities de5 scribed in subparagraph (B) shall make avail6 able to participants, through a one-stop cus7 tomer service center, the services described in

8 section 315(c)(2) that are applicable to such

9 program, and shall participate in the operation

10 of such center as a party to the agreement de11 scribed in subsection (c).

12 (B) PROGRAMS; SERVICES; ACTIVITIES.—

13 The programs, services, and activities referred

14 to in subparagraph (A) consist of—

15 (i) core services authorized under this

16 subtitle;

17 (ii) other activities authorized under

18 this title;

19 (iii) activities authorized under title I

20 and title II;

21 (iv) programs authorized under the

22 Wagner-Peyser Act (29 U.S.C. 49 et seq.);

23 (v) programs authorized under title I

24 of the Rehabilitation Act of 1973 (29

25 U.S.C. 729 et seq.);
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1 (vi) programs authorized under sec2 tion 403(a)(5) of the Social Security Act

3 (42 U.S.C. 603(a)(5)) (as added by section

4 5001 of the Balanced Budget Act of

5 1997);

6 (vii) programs authorized under title

7 V of the Older Americans Act of 1965 (42

8 U.S.C. 3056 et seq.);

9 (viii) activities authorized under chap10 ter 2 of title II of the Trade Act of 1974

11 (19 U.S.C. 2271 et seq.);

12 (ix) activities authorized under chap13 ter 41 of title 38, United States Code;

14 (x) activities carried out by the Bu15 reau of Apprenticeship and Training;

16 (xi) training activities carried out by

17 the Department of Housing and Urban

18 Development; and

19 (xii) programs authorized under State

20 unemployment compensation laws and the

21 Federal unemployment insurance program

22 under titles III, IX, and XII of the Social

23 Security Act (42 U.S.C. 501 et seq., 1101

24 et seq., and 1321 et seq.).

25 (2) ADDITIONAL PARTNERS.—
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1 (A) IN GENERAL.—In addition to the enti2 ties described in paragraph (1), other entities

3 that carry out human resource programs may

4 make available to participants through a one5 stop customer service center the services de6 scribed in section 315(c)(2) that are applicable

7 to such program, and participate in the oper8 ation of such centers as a party to the agree9 ment described in subsection (c), if the local

10 partnership and chief elected official involved

11 approve such participation.

12 (B) PROGRAMS.—The programs referred

13 to in subparagraph (A) include—

14 (i) programs authorized under part A

15 of title IV of the Social Security Act;

16 (ii) programs authorized under section

17 6(d)(4) of the Food Stamp Act of 1977 (7

18 U.S.C. 2015(d)(4));

19 (iii) work programs authorized under

20 section 6(o) of the Food Stamp Act of

21 1997 (7 U.S.C. 2015 (o)); and

22 (iv) other appropriate Federal, State,

23 or local programs, including programs in

24 the private sector.

25 (c) OPERATING AGREEMENTS.—
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1 (1) IN GENERAL.—The one-stop customer serv2 ice center operator selected pursuant to subsection

3 (d) for a one-stop customer service center shall enter

4 into a written agreement with the local partnership

5 and one-stop partners described in subsection (b)

6 concerning the operation of the center. Such agree7 ment shall be subject to the approval of the chief

8 elected official and the local partnership.

9 (2) CONTENTS.—The written agreement re10 quired under paragraph (1) shall contain—

11 (A) provisions describing—

12 (i) the services to be provided through

13 the center;

14 (ii) how the costs of such services and

15 the operating costs of the system will be

16 funded,

17 (iii) methods for referral of individuals

18 between the one-stop customer service cen19 ter operators and the one-stop partners,

20 for the appropriate services and activities;

21 (iv) the monitoring and oversight of

22 activities carried out under the agreement;

23 and

24 (v) the duration of the agreement and

25 the procedures for amending the agree-
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1 ment during the term of the agreement;

2 and

3 (B) such other provisions, consistent with

4 the requirements of this title, as the parties to

5 the agreement determine to be appropriate.

6 (d) ONE-STOP CUSTOMER SERVICE CENTER OPERA7 TORS.—

8 (1) IN GENERAL.—To be eligible to receive

9 funds made available under this subtitle to operate

10 a one-stop customer service center, an entity shall—

11 (A) be designated or certified as a one-stop

12 customer service center operator, as described

13 in subsection (a); and

14 (B) be a public or private entity, or consor15 tium of entities, located in the local area, which

16 entity or consortium may include an institution

17 of higher education (as defined in section 481

18 of the Higher Education Act of 1965 (20

19 U.S.C. 1088), a local employment service office

20 established under the Wagner-Peyser Act (29

21 U.S.C. 49 et seq.), a local government agency,

22 a private for-profit entity, a private nonprofit

23 entity, or other interested entity, of dem24 onstrated effectiveness.
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1 (2) EXCEPTION.—Elementary schools and sec2 ondary schools shall not be eligible for designation

3 or certification as one-stop customer service center

4 operators, except that nontraditional secondary

5 schools and area vocational education schools shall

6 be eligible for such designation or certification.

7 (e) ESTABLISHED ONE-STOP CUSTOMER SERVICE

8 SYSTEM.—For a local area in which a one-stop customer

9 service system has been established prior to the date of

10 enactment of this Act, the local partnership, the chief

11 elected official, and the Governor may agree to appoint,

12 designate, or certify the one-stop partners and one-stop

13 customer service center operators of such system, for pur14 poses of this section.

15 (f) OVERSIGHT.—The local partnership shall conduct

16 oversight with respect to the one-stop customer service

17 center system and may terminate for cause the eligibility

18 of such a partner or operator to provide activities through

19 or operate a one-stop customer service center.

20 SEC. 312. DETERMINATION AND IDENTIFICATION OF ELIGI21 BLE PROVIDERS OF TRAINING SERVICES BY

22 PROGRAM.

23 (a) GENERAL ELIGIBILITY REQUIREMENTS.—

24 (1) IN GENERAL.—Except as provided in sub25 section (e), to be eligible to receive funds made avail-
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1 able under section 306 to provide training services

2 described in section 315(c)(3) (referred to in this

3 title as ‘‘training services’’) and be identified as an

4 eligible provider of such services, a provider of such

5 services shall meet the requirements of this section.

6 (2) PROVIDERS.—To be eligible to receive the

7 funds, the provider shall be—

8 (A) a postsecondary educational institution

9 that—

10 (i) is eligible to receive Federal funds

11 under title IV of the Higher Education Act

12 of 1965 (20 U.S.C. 1070 et seq.); and

13 (ii) provides a program that leads to

14 an associate degree, baccalaureate degree,

15 or certificate; or

16 (B) another public or private provider of a

17 program.

18 (b) INITIAL DETERMINATION AND IDENTIFICA19 TION.—

20 (1) POSTSECONDARY EDUCATIONAL INSTITU21 TIONS.—To be eligible to receive funds as described

22 in subsection (a), an institution described in sub23 section (a)(2)(A) shall submit an application at such

24 time, in such manner, and containing such informa25 tion as the designated State agency described in sub-
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1 section (f) may require, after consultation with the

2 local partnerships in the State. On submission of the

3 application, the institution shall automatically be ini4 tially eligible to receive such funds for the program

5 described in subsection (a)(2)(A).

6 (2) OTHER PROVIDERS.—

7 (A) PROCEDURE.—The Governor, in con8 sultation with the local partnerships in the

9 State, shall establish a procedure for determin10 ing the initial eligibility of providers described

11 in subsection (a)(2)(B) to receive such funds

12 for specified programs. The procedure shall re13 quire a provider of a program to meet minimum

14 acceptable levels of performance based on—

15 (i) performance criteria relating to the

16 rates, percentages, increases, and costs de17 scribed in subparagraph (C) for the pro18 gram, as demonstrated using verifiable

19 program-specific performance information

20 described in subparagraph (C) and submit21 ted to the designated State agency, as re22 quired under subparagraph (C); and

23 (ii) performance criteria relating to

24 any characteristics for which local partner25 ships request the submission of informa-
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1 tion under subparagraph (D) for the pro2 gram, as demonstrated using the informa3 tion submitted.

4 (B) MINIMUM LEVELS.—The Governor

5 shall—

6 (i) consider, in determining such mini7 mum levels—

8 (I) criteria relating to the eco9 nomic, geographic, and demographic

10 factors in the local areas in which the

11 provider provides the program; and

12 (II) the characteristics of the

13 population served by such provider

14 through the program; and

15 (ii) verify the minimum levels of per16 formance by using quarterly records de17 scribed in section 321.

18 (C) APPLICATION.—To be initially eligible

19 to receive funds as described in subsection (a),

20 a provider described in subsection (a)(2)(B)

21 shall submit an application at such time, in

22 such manner, and containing such information

23 as the designated State agency may require, in24 cluding performance information on—
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1 (i) program completion rates for par2 ticipants in the applicable program con3 ducted by the provider;

4 (ii) the percentage of the graduates of

5 the program placed in unsubsidized em6 ployment in an occupation related to the

7 program conducted;

8 (iii) retention rates of the graduates

9 in unsubsidized employment—

10 (I) 6 months after completion of

11 the program; and

12 (II) 12 months after completion

13 of the program;

14 (iv) the wages received by the grad15 uates placed in unsubsidized employment

16 after the completion of participation in the

17 program—

18 (I) on the first day of the em19 ployment;

20 (II) 6 months after the first day

21 of the employment; and

22 (III) 12 months after the first

23 day of the employment;

24 (v) where appropriate, the rates of li25 censure or certification of the graduates,
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1 attainment of academic degrees or equiva2 lents, or attainment of other measures of

3 skill; and

4 (vi) program cost per participant in

5 the program.

6 (D) ADDITIONAL INFORMATION.—

7 (i) IN GENERAL.—In addition to the

8 performance information described in sub9 paragraph (C), the local partnerships in

10 the State involved may require that a pro11 vider submit, to the local partnerships and

12 to the designated State agency, other per13 formance information relating to the pro14 gram to be initially identified as an eligible

15 provider of training services, including in16 formation regarding the ability of the pro17 vider to provide continued counseling and

18 support regarding the workplace to the

19 graduates, for not less than 12 months

20 after the graduation involved.

21 (ii) HIGHER LEVELS OF PERFORM22 ANCE ELIGIBILITY.—The local partnership

23 may require higher levels of performance

24 than the minimum levels established under

25 subparagraph (A)(i) for initial eligibility to
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•S 1186 RS

1 receive funds as described in subsection

2 (a).

3 (3) LIST OF ELIGIBLE PROVIDERS BY PRO4 GRAM.—

5 (A) IN GENERAL.—The designated State

6 agency, after reviewing the performance infor7 mation described in paragraph (2)(C) and any

8 information required to be submitted under

9 paragraph (2)(D) and using the procedure de10 scribed in paragraph (2)(B), shall—

11 (i) identify eligible providers of train12 ing services described in subparagraphs

13 (A) and (B) of subsection (a)(2), including

14 identifying the programs of the providers

15 through which the providers may offer the

16 training services; and

17 (ii) compile a list of the eligible pro18 viders, and the programs, accompanied by

19 the performance information described in

20 paragraph (2)(C) and any information re21 quired to be submitted under paragraph

22 (2)(D) for each such provider described in

23 subsection (a)(2)(B).

24 (B) LOCAL MODIFICATION.—The local

25 partnership may modify such list by reducing
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1 the number of eligible providers listed, to en2 sure that the eligible providers carry out pro3 grams that provide skills that enable partici4 pants to obtain local employment opportunities.

5 (c) SUBSEQUENT ELIGIBILITY.—

6 (1) INFORMATION AND CRITERIA.—To be eligi7 ble to continue to receive funds as described in sub8 section (a) for a program, a provider shall—

9 (A) submit the performance information

10 described in subsection (b)(2)(C) and any infor11 mation required to be submitted under sub12 section (b)(2)(D) annually to the designated

13 State agency at such time and in such manner

14 as the designated State agency may require for

15 the program;

16 (B) annually meet the performance criteria

17 described in subclause (I) and (if applicable)

18 subclause (II) of subsection (b)(2)(B)(i) for the

19 program; and

20 (C) annually meet local performance meas21 ures, as demonstrated utilizing quarterly

22 records described in section 321, for the pro23 gram.

24 (2) LIST OF ELIGIBLE PROVIDERS BY PRO25 GRAM.—
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•S 1186 RS

1 (A) IN GENERAL.—The designated State

2 agency, after reviewing the performance infor3 mation and any other information submitted

4 under paragraph (1) and using the procedure

5 described in subsection (b)(2)(A), shall identify

6 eligible providers and programs, and compile a

7 list of the providers and programs, as described

8 in subsection (b)(3), accompanied by the per9 formance information and other information for

10 each such provider.

11 (B) LOCAL MODIFICATION.—The local

12 partnership may modify such list by reducing

13 the number of eligible providers listed, to en14 sure that the eligible providers carry out pro15 grams that provide skills that enable partici16 pants to obtain local employment opportunities.

17 (3) AVAILABILITY.—Such list and information

18 shall be made widely available to participants in em19 ployment and training activities funded under this

20 subtitle, and to others, through the one-stop cus21 tomer service system described in section 315(b).

22 (d) ENFORCEMENT.—

23 (1) ACCURACY OF INFORMATION.—If the des24 ignated State agency, after consultation with the

25 local partnership involved, determines that a pro-
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1 vider or individual supplying information on behalf

2 of a provider intentionally supplies inaccurate infor3 mation under this section, the agency shall termi4 nate the eligibility of the eligible provider to receive

5 funds described in subsection (a) for a period of

6 time, but not less than 2 years.

7 (2) COMPLIANCE WITH CRITERIA OR REQUIRE8 MENTS.—If the designated State agency, after con9 sultation with the local partnership, determines that

10 an eligible provider or a program of training services

11 carried out by an eligible provider fails to meet the

12 required performance criteria and performance

13 measures described in subparagraphs (B) and (C) of

14 subsection (c)(1) or materially violates any provision

15 of this title, including the regulations promulgated

16 to implement this title, the agency may terminate

17 the eligibility of the eligible provider to receive funds

18 described in subsection (a) for such program or take

19 such other action as the agency determines to be ap20 propriate.

21 (3) REPAYMENT.—Any provider whose eligi22 bility is terminated under paragraph (1) or (2) for

23 a program shall be liable for repayment of funds de24 scribed in subsection (a) received for the program
219

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1 during any period of noncompliance described in

2 such paragraph.

3 (4) APPEAL.—The Governor shall establish a

4 procedure for an eligible provider to appeal a deter5 mination by the designated State agency that results

6 in termination of eligibility under this subsection.

7 Such procedure shall provide an opportunity for a

8 hearing and prescribe appropriate time limits to en9 sure prompt resolution of the appeal.

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

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

12 training shall not be subject to the requirements of

13 subsections (a) through (d).

14 (2) COLLECTION AND DISSEMINATION OF IN15 FORMATION.—A one-stop customer service center

16 operator in a local area shall collect such perform17 ance information from on-the-job training providers

18 as the Governor may require, and disseminate such

19 information through the one-stop customer service

20 system.

21 (f) ADMINISTRATION.—The Governor shall designate

22 a State agency to collect and disseminate the performance

23 information described in subsection (b)(2)(C) and any in24 formation required to be submitted under subsection
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•S 1186 RS

1 (b)(2)(D) and carry out other duties described in this sec2 tion.

3 SEC. 313. IDENTIFICATION OF ELIGIBLE PROVIDERS OF

4 YOUTH ACTIVITIES.

5 The youth partnership is authorized to award grants

6 on a competitive basis, based on the criteria contained in

7 the State plan and local plan, to providers of youth activi8 ties, and conduct oversight with respect to such providers,

9 in the local area.

10 SEC. 314. STATEWIDE WORKFORCE INVESTMENT ACTIVI11 TIES.

12 (a) IN GENERAL.—Funds reserved by a Governor for

13 a State—

14 (1) under section 306(a)(2) shall be used to

15 carry out the statewide rapid response activities de16 scribed in subsection (b)(1); and

17 (2) under section 306(a)(1)—

18 (A) shall be used to carry out the state19 wide workforce investment activities described

20 in subsection (b)(2); and

21 (B) may be used to carry out any of the

22 statewide workforce investment activities de23 scribed in subsection (c),
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•S 1186 RS

1 regardless of whether the funds were allotted to the

2 State under paragraph (1), (2), or (3) of section

3 302(b).

4 (b) REQUIRED STATEWIDE WORKFORCE INVEST5 MENT ACTIVITIES.—

6 (1) STATEWIDE RAPID RESPONSE ACTIVI7 TIES.—A State shall use funds reserved under sec8 tion 306(a)(2) to carry out statewide rapid response

9 activities, which shall include—

10 (A) provision of rapid response activities,

11 carried out in local areas by the State, working

12 in conjunction with the local partnership and

13 the chief elected official in the local area; and

14 (B) provision of additional assistance to

15 local areas that experience disasters, mass lay16 offs or plant closings, or other events that pre17 cipitate substantial increases in the number of

18 unemployed individuals, carried out in the local

19 areas by the State, working in conjunction with

20 the local partnership and the chief elected offi21 cial in the local areas.

22 (2) OTHER REQUIRED STATEWIDE WORKFORCE

23 INVESTMENT ACTIVITIES.—A State shall use funds

24 reserved under section 306(a)(1) to carry out other
222

•S 1186 RS

1 statewide workforce investment activities, which

2 shall include—

3 (A) disseminating the list of eligible pro4 viders of training services, including eligible

5 providers of nontraditional training services,

6 and the performance information as described

7 in subsections (b) and (c) of section 312 and a

8 list of eligible providers of youth activities de9 scribed in section 313;

10 (B) conducting evaluations, under section

11 321(d), of activities authorized in this section,

12 section 315, and section 316, in coordination

13 with the activities carried out under section

14 368;

15 (C) provision of incentive grants to local

16 areas for regional cooperation among local part17 nerships, for local coordination and nonduplica18 tion of activities carried out under this Act, and

19 for comparative performance by local areas on

20 the local performance measures described in

21 section 321(b);

22 (D) providing technical assistance to local

23 areas that fail to meet local performance meas24 ures;
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•S 1186 RS

1 (E) assisting in the establishment and op2 eration of a one-stop customer service system;

3 and

4 (F) operation of a fiscal and management

5 accountability information system under section

6 321(e).

7 (c) ALLOWABLE STATEWIDE WORKFORCE INVEST8 MENT ACTIVITIES.—

9 (1) IN GENERAL.—A State may use funds re10 served under section 306(a)(1) to carry out addi11 tional statewide workforce investment activities,

12 which may include—

13 (A) subject to paragraph (2), administra14 tion by the State of the workforce investment

15 activities carried out under this subtitle;

16 (B) identification and implementation of

17 incumbent worker training programs, which

18 may include the establishment and implementa19 tion of an employer loan program;

20 (C) carrying out other activities authorized

21 in section 315 that the State determines to be

22 necessary to assist local areas in carrying out

23 activities described in subsection (c) or (d) of

24 section 315 through the statewide workforce in25 vestment system; and
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•S 1186 RS

1 (D) carrying out, on a statewide basis, ac2 tivities described in section 316.

3 (2) LIMITATION.—Of the reserved funds de4 scribed in paragraph (1)(A), a portion, equal to not

5 more than 5 percent of the total amount allotted to

6 the State under paragraphs (1), (2), and (3) of sec7 tion 302(b) for the fiscal year involved, may be used

8 for the administration of the workforce investment

9 activities carried out under this subtitle. Funds

10 made available from the portion may be used for the

11 administration of any of the workforce investment

12 activities, regardless of whether the funds were allot13 ted to the State under paragraph (1), (2), or (3) of

14 section 302(b).

15 SEC. 315. LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.

16 (a) IN GENERAL.—Funds received by a local area

17 under paragraph (3)(A) or (4)(A), as appropriate, of sec18 tion 306(b), and funds received by the local area under

19 section 306(b)(3)(B)—

20 (1) shall be used to carry out employment and

21 training activities described in subsection (c) for

22 adults or dislocated workers, as appropriate; and

23 (2) may be used to carry out employment and

24 training activities described in subsection (d) for

25 adults or dislocated workers, as appropriate.
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1 (b) ESTABLISHMENT OF ONE-STOP CUSTOMER

2 SERVICE SYSTEM.—

3 (1) IN GENERAL.—There shall be established in

4 a State that receives an allotment under section 302

5 a one-stop customer service system, which—

6 (A) shall provide the core services de7 scribed in subsection (c)(2);

8 (B) shall provide access to training services

9 as described in subsection (c)(3);

10 (C) shall provide access to the activities (if

11 any) carried out under subsection (d); and

12 (D) shall provide access to the information

13 described in section 15 of the Wagner-Peyser

14 Act and all job search, placement, recruitment,

15 and other labor exchange services authorized

16 under the Wagner-Peyser Act (29 U.S.C. 49 et

17 seq.).

18 (2) ONE-STOP DELIVERY.—At a minimum, the

19 one-stop customer service system—

20 (A) shall make each of the services de21 scribed in paragraph (1) accessible at not less

22 than 1 physical customer service center in each

23 local area of the State; and

24 (B) may also make services described in

25 paragraph (1) available—
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•S 1186 RS

1 (i) through a network of customer

2 service centers that can provide 1 or more

3 of the services described in paragraph (1)

4 to such individuals; and

5 (ii) through a network of eligible one6 stop partners—

7 (I) in which each partner pro8 vides 1 or more of the services to such

9 individuals and is accessible at a cus10 tomer service center that consists of a

11 physical location or an electronically

12 or technologically linked access point;

13 and

14 (II) that assures individuals that

15 information on the availability of core

16 services will be available regardless of

17 where the individuals initially enter

18 the statewide workforce investment

19 system, including information made

20 available through an access point de21 scribed in subclause (I).

22 (c) REQUIRED LOCAL ACTIVITIES.—

23 (1) IN GENERAL.—Funds received by a local

24 area under paragraph (3)(A) or (4)(A), as appro25 priate, of section 306(b), and funds received by the
227

•S 1186 RS

1 local area under section 306(b)(3)(B) shall be

2 used—

3 (A) to establish a one-stop customer serv4 ice center described in subsection (b);

5 (B) to provide the core services described

6 in paragraph (2) to participants described in

7 such paragraph through the one-stop customer

8 service system; and

9 (C) to provide training services described

10 in paragraph (3) to participants described in

11 such paragraph.

12 (2) CORE SERVICES.—Funds received by a local

13 area as described in paragraph (1) shall be used to

14 provide core services, which shall be available to all

15 individuals seeking assistance through a one-stop

16 customer service system and shall, at a minimum,

17 include—

18 (A) determinations of whether the individ19 uals are eligible to receive activities under this

20 subtitle;

21 (B) outreach, intake (which may include

22 worker profiling), and orientation to the infor23 mation and other services available through the

24 one-stop customer service system;
228

•S 1186 RS

1 (C) initial assessment of skill levels, apti2 tudes, abilities, and supportive service needs;

3 (D) case management assistance, as appro4 priate;

5 (E) job search and placement assistance;

6 (F) provision of information regarding—

7 (i) local, State, and, if appropriate, re8 gional or national, employment opportuni9 ties; and

10 (ii) job skills necessary to obtain the

11 employment opportunities;

12 (G) provision of performance information

13 on eligible providers of training services as de14 scribed in section 312, provided by program,

15 and eligible providers of youth activities as de16 scribed in section 313, eligible providers of

17 adult education as described in title II, eligible

18 providers of postsecondary vocational education

19 activities and vocational education activities

20 available to school dropouts as described in title

21 I, and eligible providers of vocational rehabilita22 tion program activities as described in title I of

23 the Rehabilitation Act of 1973;
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•S 1186 RS

1 (H) provision of performance information

2 on the activities carried out by one-stop part3 ners, as appropriate;

4 (I) provision of information regarding how

5 the local area is performing on the local per6 formance measures described in section 321(b),

7 and any additional performance information

8 provided to the one-stop customer service center

9 by the local partnership;

10 (J) provision of accurate information relat11 ing to the availability of supportive services, in12 cluding child care and transportation, available

13 in the local area, and referral to such services,

14 as appropriate;

15 (K) provision of information regarding fil16 ing claims for unemployment compensation;

17 (L) assistance in establishing eligibility

18 for—

19 (i) welfare-to-work activities author20 ized under section 403(a)(5) of the Social

21 Security Act (as added by section 5001 of

22 the Balanced Budget Act of 1997) avail23 able in the local area; and

24 (ii) programs of financial aid assist25 ance for training and education programs
230

•S 1186 RS

1 that are not funded under this Act and are

2 available in the local area; and

3 (M) followup services, including counseling

4 regarding the workplace, for participants in

5 workforce investment activities who are placed

6 in unsubsidized employment, for not less than

7 12 months after the completion of such partici8 pation, as appropriate.

9 (3) REQUIRED TRAINING SERVICES.—

10 (A) ELIGIBLE PARTICIPANTS.—Funds re11 ceived by a local area as described in paragraph

12 (1) shall be used to provide training services to

13 individuals—

14 (i) who are adults (including dis15 located workers);

16 (ii) who seek the services;

17 (iii)(I) who are unable to obtain em18 ployment through the core services; or

19 (II) who are employed and who are

20 determined by a one-stop customer service

21 center operator to be in need of such train22 ing services in order to gain or retain em23 ployment that allows for self-sufficiency;

24 (iv) who after an interview, evalua25 tion, or assessment, and case management,
231

•S 1186 RS

1 have been determined by a one-stop cus2 tomer service center operator or one-stop

3 partner, as appropriate, to be in need of

4 training services and to have the skills and

5 qualifications, to successfully participate in

6 the selected program of training services;

7 (v) who select programs of training

8 services that are directly linked to the em9 ployment opportunities in the local area in10 volved or in another area in which the

11 adults receiving such services are willing to

12 relocate;

13 (vi) who meet the requirements of

14 subparagraph (B); and

15 (vii) who are determined to be eligible

16 in accordance with the priority system, if

17 any, in effect under subparagraph (D).

18 (B) QUALIFICATION.—

19 (i) REQUIREMENT.—Except as pro20 vided in clause (ii), provision of such train21 ing services shall be limited to individuals

22 who—

23 (I) are unable to obtain other

24 grant assistance for such services, in25 cluding Federal Pell Grants estab-
232

•S 1186 RS

1 lished under title IV of the Higher

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

3 1070 et seq.); or

4 (II) who require assistance be5 yond the assistance made available

6 under other grant assistance pro7 grams, including Federal Pell Grants.

8 (ii) REIMBURSEMENTS.—Training

9 services may be provided under this para10 graph to an individual who otherwise meets

11 the requirements of this paragraph while

12 an application for a Federal Pell Grant is

13 pending, except that if such individual is

14 subsequently awarded a Federal Pell

15 Grant, appropriate reimbursement shall be

16 made to the local area from such Federal

17 Pell Grant.

18 (C) TRAINING SERVICES.—Training serv19 ices may include—

20 (i) employment skill training;

21 (ii) on-the-job training;

22 (iii) job readiness training; and

23 (iv) adult education services when pro24 vided in combination with services de25 scribed in clause (i), (ii), or (iii).
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•S 1186 RS

1 (D) PRIORITY.—In the event that funds

2 are limited within a local area for adult employ3 ment and training activities, priority shall be

4 given to disadvantaged adults for receipt of

5 training services provided under this paragraph.

6 The appropriate local partnership and the Gov7 ernor shall direct the one-stop customer service

8 center operator in the local area with regard to

9 making determinations related to such priority.

10 (E) DELIVERY OF SERVICES.—Training

11 services provided under this paragraph shall be

12 provided—

13 (i) except as provided in section

14 312(e), through eligible providers of such

15 services identified in accordance with sec16 tion 312; and

17 (ii) in accordance with subparagraph

18 (F).

19 (F) CONSUMER CHOICE REQUIREMENTS.—

20 (i) IN GENERAL.—Training services

21 provided under this paragraph shall be

22 provided in a manner that maximizes

23 consumer choice in the selection of an eli24 gible provider of such services.
234

•S 1186 RS

1 (ii) ELIGIBLE PROVIDERS.—Each

2 local partnership, through one-stop cus3 tomer service centers, shall make avail4 able—

5 (I) the list of eligible providers

6 required under subsection (b)(3) or

7 (c)(2) of section 312, with a descrip8 tion of the programs through which

9 the providers may offer the training

10 services, and a list of the names of

11 on-the-job training providers; and

12 (II) the performance information

13 on eligible providers of training serv14 ices as described in section 312.

15 (iii) EMPLOYMENT INFORMATION.—

16 Each local partnership, through one-stop

17 customer service centers, shall make avail18 able—

19 (I) information regarding local,

20 State, and, if appropriate, regional or

21 national, employment opportunities;

22 and

23 (II) information regarding the

24 job skills necessary to obtain the em25 ployment opportunities.
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•S 1186 RS

1 (iv) INDIVIDUAL TRAINING AC2 COUNTS.—An individual who is eligible

3 pursuant to subparagraph (A) and seeks

4 training services may select, in consulta5 tion with a case manager, an eligible pro6 vider of training services from the lists of

7 providers described in clause (ii)(I). Upon

8 such selection, the operator of the one-stop

9 customer service center shall, to the extent

10 practicable, refer such individual to the eli11 gible provider of training services, and ar12 range for payment for such services

13 through an individual training account.

14 (d) PERMISSIBLE LOCAL ACTIVITIES.—

15 (1) DISCRETIONARY ONE-STOP DELIVERY AC16 TIVITIES.—Funds received by a local area under

17 paragraph (3)(A) or (4)(A), as appropriate, of sec18 tion 306(b), and funds received by the local area

19 under section 306(b)(3)(B) may be used to provide,

20 through one-stop delivery described in subsection

21 (b)(2)—

22 (A) intensive employment-related services

23 for participants in training services;
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•S 1186 RS

1 (B) customized screening and referral of

2 qualified participants in training services to em3 ployment; and

4 (C) customized employment-related serv5 ices to employers.

6 (2) SUPPORTIVE SERVICES.—Funds received by

7 the local area as described in paragraph (1) may be

8 used to provide supportive services to participants—

9 (A) who are participating in activities de10 scribed in this section or youth activities under

11 this subtitle; and

12 (B) who are unable to obtain such support13 ive services through other programs providing

14 such services.

15 (3) NEEDS-RELATED PAYMENTS.—

16 (A) IN GENERAL.—Funds received by the

17 local area under section 306(b)(3)(B) may be

18 used to provide needs-related payments to dis19 located workers who do not qualify for, or have

20 exhausted, unemployment compensation, for the

21 purpose of enabling such individuals to partici22 pate in training services.

23 (B) ADDITIONAL ELIGIBILITY REQUIRE24 MENTS.—In addition to the requirements con25 tained in subparagraph (A), a dislocated worker
237

•S 1186 RS

1 who has ceased to qualify for unemployment

2 compensation may be eligible to receive needs3 related payments under this paragraph only if

4 such worker was enrolled in the training serv5 ices—

6 (i) by the end of the 13th week of the

7 worker’s unemployment compensation ben8 efits period for the most recent layoff that

9 resulted in a determination of the worker’s

10 eligibility for employment and training ac11 tivities for dislocated workers under this

12 subtitle; or

13 (ii) if later, by the end of the 13th

14 week after the worker is informed that a

15 short-term layoff will exceed 6 months.

16 (C) LEVEL OF PAYMENTS.—The level of a

17 needs-related payment made to a dislocated

18 worker under this paragraph shall not exceed

19 the greater of—

20 (i) the applicable level of unemploy21 ment compensation; or

22 (ii) if such worker did not qualify for

23 unemployment compensation, an amount

24 equal to the poverty line, for an equivalent
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•S 1186 RS

1 period, which amount shall be adjusted to

2 reflect changes in total family income.

3 SEC. 316. LOCAL YOUTH ACTIVITIES.

4 (a) PURPOSES.—The purposes of this section are—

5 (1) to provide effective and comprehensive ac6 tivities to youth seeking assistance in achieving aca7 demic and employment success;

8 (2) to ensure continuous contact for youth with

9 committed adults;

10 (3) to provide opportunities for training to

11 youth;

12 (4) to provide continued support services for

13 youth;

14 (5) to provide incentives for recognition and

15 achievement to youth; and

16 (6) to provide opportunities for youth in activi17 ties related to leadership, development, decisionmak18 ing, citizenship, and community service.

19 (b) REQUIRED ELEMENTS.—Funds received by a

20 local area under paragraph (3)(C) or (4)(B) of section

21 306(b) shall be used to carry out, for youth who seek the

22 activities, activities that—

23 (1) consist of the provision of—
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•S 1186 RS

1 (A) tutoring, study skills training, and in2 struction, leading to completion of secondary

3 school, including dropout prevention strategies;

4 (B) alternative secondary school services;

5 (C) summer employment opportunities and

6 other paid and unpaid work experiences, includ7 ing internships;

8 (D) employment skill training, as appro9 priate;

10 (E) community service and leadership de11 velopment opportunities;

12 (F) services described in section 315(c)(2);

13 (G) supportive services;

14 (H) adult mentoring for the period of par15 ticipation and a subsequent period, for a total

16 of not less than 12 months; and

17 (I) followup services for not less than 12

18 months after the completion of participation, as

19 appropriate;

20 (2) provide—

21 (A) preparation for postsecondary edu22 cational opportunities, in appropriate cases;

23 (B) strong linkages between academic and

24 occupational learning; and
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•S 1186 RS

1 (C) preparation for unsubsidized employ2 ment opportunities, in appropriate cases; and

3 (3) involve parents, participants, and other

4 members of the community with experience relating

5 to youth in the design and implementation of the ac6 tivities.

7 (c) PRIORITY.—At a minimum, 50 percent of the

8 funds described in subsection (b) shall be used to provide

9 youth activities to out-of-school youth.

10 (d) PROHIBITIONS.—

11 (1) NO LOCAL EDUCATION CURRICULUM.—No

12 funds described in subsection (b) shall be used to de13 velop or implement local school system education

14 curricula.

15 (2) NONDUPLICATION.—No funds described in

16 subsection (b) shall be used to carry out activities

17 that duplicate federally funded activities available to

18 youth in the local area.

19 (3) NONINTERFERENCE AND NONREPLACE20 MENT OF REGULAR ACADEMIC REQUIREMENTS.—No

21 funds described in subsection (b) shall be used to

22 provide an activity for youth who are not school

23 dropouts if participation in the activity would inter24 fere with or replace the regular academic require25 ments of the youth.
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•S 1186 RS

1 CHAPTER 4—GENERAL PROVISIONS

2 SEC. 321. ACCOUNTABILITY.

3 (a) PURPOSE.—The purpose of this section is to pro4 vide comprehensive performance measures to assess the

5 progress of States and local areas (including eligible pro6 viders and programs of activities authorized under this

7 subtitle that are made available in the States and local

8 areas), in assisting both employers and jobseekers in meet9 ing their employment needs, in order to ensure an ade10 quate return on the investment of Federal funds for the

11 activities.

12 (b) STATE PERFORMANCE MEASURES.—

13 (1) IN GENERAL.—To be eligible to receive an

14 allotment under section 302, a State shall establish,

15 and identify in the State plan, State performance

16 measures. Each State performance measure shall

17 consist of an indicator of performance, referred to in

18 paragraph (2) or (3), and a performance level, re19 ferred to in paragraph (4).

20 (2) CORE INDICATORS OF PERFORMANCE.—The

21 State performance measures shall contain indicators

22 of performance, including, at a minimum—

23 (A) core indicators of performance for

24 adults, including dislocated workers, participat-
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•S 1186 RS

1 ing in activities that are training services, which

2 indicators consist of—

3 (i) placement in unsubsidized employ4 ment related to the training received

5 through the activities;

6 (ii) retention in unsubsidized employ7 ment related to the training received

8 through the activities—

9 (I) 6 months after completion of

10 participation in the activities; and

11 (II) 12 months after completion

12 of participation;

13 (iii) wages received by such partici14 pants who are placed in unsubsidized em15 ployment related to the training received

16 through the activities after completion of

17 participation—

18 (I) on the first day of the em19 ployment;

20 (II) 6 months after the first day

21 of the employment; and

22 (III) 12 months after the first

23 day of the employment; and

24 (iv) percentage of wage replacement

25 for dislocated workers placed in
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•S 1186 RS

1 unsubsidized employment related to the

2 training received through the activities;

3 (B) core indicators of performance for

4 adults, including dislocated workers, participat5 ing in activities that are core services, which in6 dicators consist of the indicators described in

7 clauses (i) through (iv) of subparagraph (A);

8 and

9 (C) core indicators of performance for

10 youth participating in youth activities under

11 section 316, that consist of—

12 (i) attainment of secondary school di13 plomas or their recognized equivalents;

14 (ii) attainment of job readiness and

15 employment skills;

16 (iii) placement in, retention in, and

17 completion of postsecondary education, ad18 vanced training, or an apprenticeship;

19 (iv) placement in unsubsidized em20 ployment related to the training received

21 through the activities;

22 (v) retention in unsubsidized employ23 ment related to the training received

24 through the activities—
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•S 1186 RS

1 (I) 6 months after completion of

2 participation in the activities; and

3 (II) 12 months after completion

4 of participation; and

5 (vi) wages received by such partici6 pants who are placed in unsubsidized em7 ployment related to the training received

8 through the activities, after completion of

9 participation—

10 (I) on the first day of the em11 ployment;

12 (II) 6 months after the first day

13 of the employment; and

14 (III) 12 months after the first

15 day of the employment.

16 (3) CUSTOMER SATISFACTION INDICATOR.—The

17 State performance measures shall contain an indica18 tor of performance with respect to customer satisfac19 tion of employers and participants, which may be

20 measured through surveys conducted after the con21 clusion of participation in workforce investment ac22 tivities.

23 (4) STATE LEVELS OF PERFORMANCE.—In

24 order to ensure an adequate return on the invest25 ment of Federal funds in workforce investment ac-
245

•S 1186 RS

1 tivities, the Secretary and each Governor shall reach

2 agreement on the levels of performance expected to

3 be achieved by the State, on the State performance

4 measures established pursuant to this subsection. In

5 reaching the agreement, the Secretary and Governor

6 shall establish a level of performance for each indica7 tor of performance described in paragraph (2) or

8 (3). Such agreement shall take into account—

9 (A) how the levels compare with the levels

10 established by other States, taking into consid11 eration the specific circumstances, including

12 economic circumstances, of each State; and

13 (B) the extent to which such levels pro14 mote continuous improvement in performance

15 by such State and ensure an adequate return

16 on the investment of Federal funds.

17 (5) POPULATIONS.—In developing the State

18 performance measures, a State shall develop and

19 identify in the State plan State performance meas20 ures for populations that include, at a minimum—

21 (A) disadvantaged adults;

22 (B) dislocated workers;

23 (C) out-of-school youth; and

24 (D) individuals with disabilities.

25 (b) LOCAL PERFORMANCE MEASURES.—
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•S 1186 RS

1 (1) IN GENERAL.—Each Governor shall nego2 tiate and reach agreement with the local partnership

3 and the chief elected official in each local area on

4 local performance measures. Each local performance

5 measure shall consist of an indicator of performance

6 referred to in paragraph (2) or (3) of subsection (a),

7 and a performance level referred to in paragraph

8 (2).

9 (2) PERFORMANCE LEVELS.—Based on the ex10 pected levels of performance established pursuant to

11 subsection (a)(4), the Governor shall negotiate and

12 reach agreement with the local partnership and the

13 chief elected official in each local area regarding the

14 levels of performance expected to be achieved for the

15 local area on the indicators of performance.

16 (3) POPULATIONS.—In negotiating and reach17 ing agreement on the local performance measures,

18 the Governor, local partnership, and chief elected of19 ficial, shall negotiate and reach agreement on local

20 performance measures for populations that include,

21 at a minimum, the populations described in sub22 section (a)(5). The local partnership shall identify

23 these local performance measures in the local plan.

24 (c) REPORT.—
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1 (1) IN GENERAL.—Each State that receives an

2 allotment under section 302 shall annually prepare

3 and submit to the Secretary a report on the progress

4 of the State in achieving State performance meas5 ures. The annual report shall also include informa6 tion regarding the progress of local areas in achiev7 ing local performance measures. The report shall

8 also include information on the status of State eval9 uations of workforce investment activities described

10 in subsection (d).

11 (2) ADDITIONAL INFORMATION.—In preparing

12 such report, the State shall include, at a minimum,

13 information relating to—

14 (A) the performance of graduates of pro15 grams of training services as compared to

16 former enrollees in the programs, with the re17 spect to the core indicators described in sub18 section (a)(2)(A);

19 (B) the educational attainment of such

20 graduates and former enrollees;

21 (C) the cost of the workforce investment

22 activities relative to the impact of the activities

23 on the performance of graduates on the core in24 dicators; and
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1 (D) the performance of welfare recipients,

2 veterans, individuals with disabilities, and dis3 placed homemakers with respect to the core in4 dicators described in subparagraphs (A) and

5 (B) of subsection (a)(2).

6 (3) INFORMATION DISSEMINATION.—The Sec7 retary shall make the information contained in such

8 reports available to Congress, the Library of Con9 gress, and the public through publication and other

10 appropriate methods, and shall disseminate State-by11 State comparisons of the information that take into

12 consideration the specific circumstances, including

13 economic circumstances, of the States.

14 (4) DEFINITION.—In this subsection, the term

15 ‘‘welfare recipient’’ means a person receiving pay16 ments described in section 2(24)(A).

17 (d) EVALUATION OF STATE PROGRAMS.—

18 (1) WORKFORCE INVESTMENT ACTIVITIES.—

19 Using funds reserved under section 306(a)(1), a

20 State shall conduct ongoing evaluations of workforce

21 investment activities carried out in the State under

22 this subtitle.

23 (2) CRITERIA FOR LONGITUDINAL STUDIES.—

24 The evaluations shall include longitudinal studies of

25 the workforce investment activities. Evaluation cri-
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1 teria for purposes of the longitudinal studies shall be

2 developed in conjunction with statewide partnerships

3 and local partnerships. The criteria shall measure

4 the relationship between the level of public funding

5 for the activities and the degree to which the activi6 ties promote employment and wage gains. Such lon7 gitudinal studies shall be conducted by an evaluator

8 who is unaffiliated with the statewide partnership or

9 the local partnership and shall include measures that

10 reflect the State performance measures.

11 (3) ADDITIONAL STUDIES.—The State shall

12 also fund evaluation studies of the workforce invest13 ment activities. The evaluation studies shall provide

14 ongoing analysis to statewide partnerships and local

15 partnerships to promote efficiency and effectiveness

16 in improving employability outcomes for jobseekers

17 and competitiveness for employers. Such evaluation

18 studies shall be designed in conjunction with state19 wide partnerships and local partnerships, and shall

20 include analysis of customer feedback, and outcome

21 and process measures.

22 (e) FISCAL AND MANAGEMENT ACCOUNTABILITY IN23 FORMATION SYSTEMS.—

24 (1) IN GENERAL.—Using funds reserved under

25 section 306(a)(1), the Governor shall operate a fiscal
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1 and management accountability information system,

2 based on guidelines established by the Secretary in

3 consultation with the Governors and other appro4 priate parties. Such guidelines shall promote the ef5 ficient collection and use of fiscal and management

6 information for reporting and monitoring the use of

7 funds made available to the State under this subtitle

8 for workforce investment activities and for use by

9 the State in preparing the annual report described

10 in subsection (c). In measuring the progress of the

11 State on State and local performance measures, a

12 State shall utilize quarterly wage records available

13 through the unemployment insurance system.

14 (2) CONFIDENTIALITY.—In carrying out the re15 quirements of this Act, the State shall comply with

16 section 444 of the General Education Provisions Act

17 (20 U.S.C. 1232g) (as added by the Family Edu18 cational Rights and Privacy Act of 1974).

19 (f) SANCTIONS.—

20 (1) DETERMINATION.—If a State fails to meet

21 2 or more State performance measures described in

22 this section for each of the 3 years covered by a

23 State plan, the Secretary shall determine whether

24 the failure is attributable to—
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1 (A) adult employment and training activi2 ties;

3 (B) dislocated worker employment and

4 training activities; or

5 (C) youth activities.

6 (2) TECHNICAL ASSISTANCE OR REDUCTION OF

7 ALLOTMENTS.—The Secretary—

8 (A) may provide technical assistance to the

9 State to improve the level of performance of the

10 State, in accordance with section 366(b); and

11 (B) shall, on finding that a State fails to

12 meet 2 or more State performance measures for

13 2 consecutive years, reduce, by not more than

14 5 percent, the allotment made under section

15 302 for the category of activities to which the

16 failure is attributable.

17 (3) FUNDS RESULTING FROM REDUCED ALLOT18 MENTS.—The Secretary may use an amount re19 tained as a result of a reduction in an allotment

20 made under paragraph (2)(B) to award an incentive

21 grant under section 365 or to provide technical as22 sistance in accordance with section 366.

23 (g) INCENTIVE GRANTS.—The Secretary may make

24 incentive grants under section 365 to States that exceed

25 the State performance measures.
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1 (h) DEFINITIONS.—In this section:

2 (1) FORMER ENROLLEE.—The term ‘‘former

3 enrollee’’ means an individual who has been selected

4 for and has enrolled in a program of workforce in5 vestment activities, but left the program before com6 pleting the requirements of the program.

7 (2) GRADUATE.—The term ‘‘graduate’’ means

8 an individual who has been selected for and has en9 rolled in a program of workforce investment activi10 ties and has completed the requirements of such pro11 gram.

12 (i) OTHER TERMS.—The Secretary, in consultation

13 with the Governors, local partnerships, and other appro14 priate entities, shall issue regulations that identify and de15 fine other terms used in this title, in order to promote

16 uniformity in the implementation of this Act.

17 SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

18 (a) ADULT EMPLOYMENT AND TRAINING ACTIVI19 TIES.—There are authorized to be appropriated to carry

20 out the activities described in section 302(a)(1) under this

21 subtitle, such sums as may be necessary for each of fiscal

22 years 1999 through 2003.

23 (b) DISLOCATED WORKER EMPLOYMENT AND

24 TRAINING ACTIVITIES.—There are authorized to be ap25 propriated to carry out the activities described in section
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1 302(a)(2) under this subtitle, such sums as may be nec2 essary for each of fiscal years 1999 through 2003.

3 (c) YOUTH ACTIVITIES.—There are authorized to be

4 appropriated to carry out the activities described in section

5 302(a)(3) under this subtitle, such sums as may be nec6 essary for each of fiscal years 1999 through 2003.

7 Subtitle B—Job Corps

8 SEC. 331. PURPOSES.

9 The purposes of this subtitle are—

10 (1) to maintain a national Job Corps program,

11 carried out in partnership with States and commu12 nities, to assist eligible youth who need and can ben13 efit from an intensive program, operated in a group

14 setting in residential and nonresidential centers, to

15 become more responsible, employable, and productive

16 citizens;

17 (2) to set forth standards and procedures for

18 selecting individuals as enrollees in the Job Corps;

19 (3) to authorize the establishment of Job Corps

20 centers in which enrollees will participate in inten21 sive programs of activities described in this subtitle;

22 and

23 (4) to prescribe various other powers, duties,

24 and responsibilities incident to the operation and

25 continuing development of the Job Corps.
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1 SEC. 332. DEFINITIONS.

2 In this subtitle:

3 (1) APPLICABLE LOCAL PARTNERSHIP.—The

4 term ‘‘applicable local partnership’’ means a local

5 partnership—

6 (A) that provides information for a Job

7 Corps center on local employment opportunities

8 and the job skills needed to obtain the opportu9 nities; and

10 (B) that serves communities in which the

11 graduates of the Job Corps center seek employ12 ment.

13 (2) APPLICABLE ONE-STOP CUSTOMER SERVICE

14 CENTER.—The term ‘‘applicable one-stop customer

15 service center’’ means a one-stop customer service

16 center that provides services, such as referral, in17 take, recruitment, and placement, to a Job Corps

18 center.

19 (3) ENROLLEE.—The term ‘‘enrollee’’ means

20 an individual who has voluntarily applied for, been

21 selected for, and enrolled in the Job Corps program,

22 and remains with the program, but has not yet be23 come a graduate.

24 (4) FORMER ENROLLEE.—The term ‘‘former

25 enrollee’’ means an individual who has voluntarily

26 applied for, been selected for, and enrolled in the
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1 Job Corps program, but left the program before

2 completing the requirements of a vocational training

3 program, or receiving a secondary school diploma or

4 recognized equivalent, as a result of participation in

5 the Job Corps program.

6 (5) GRADUATE.—The term ‘‘graduate’’ means

7 an individual who has voluntarily applied for, been

8 selected for, and enrolled in the Job Corps program

9 and has completed the requirements of a vocational

10 training program, or received a secondary school di11 ploma or recognized equivalent, as a result of par12 ticipation in the Job Corps program.

13 (6) JOB CORPS.—The term ‘‘Job Corps’’ means

14 the Job Corps described in section 333.

15 (7) JOB CORPS CENTER.—The term ‘‘Job Corps

16 center’’ means a center described in section 333.

17 (8) OPERATOR.—The term ‘‘operator’’ means

18 an entity selected under this subtitle to operate a

19 Job Corps center.

20 (9) REGION.—The term ‘‘region’’ means an

21 area served by a regional office of the Employment

22 and Training Administration.

23 (10) SERVICE PROVIDER.—The term ‘‘service

24 provider’’ means an entity selected under this sub-
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1 title to provide services described in this subtitle to

2 a Job Corps center.

3 SEC. 333. ESTABLISHMENT.

4 There shall be established in the Department of

5 Labor a Job Corps program, to carry out activities de6 scribed in this subtitle for individuals enrolled in a Job

7 Corps and assigned to a center.

8 SEC. 334. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

9 To be eligible to become an enrollee, an individual

10 shall be—

11 (1) not less than age 16 and not more than age

12 21 on the date of enrollment, except that—

13 (A) not more than 20 percent of the indi14 viduals enrolled in the Job Corps may be not

15 less than age 22 and not more than age 24 on

16 the date of enrollment; and

17 (B) either such maximum age limitation

18 may be waived by the Secretary, in accordance

19 with regulations of the Secretary, in the case of

20 an individual with a disability; and

21 (2) a low-income individual; and

22 (3) an individual who is 1 or more of the follow23 ing:

24 (A) Basic skills deficient.

25 (B) A school dropout.
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1 (C) Homeless, a runaway, or a foster child.

2 (D) A parent.

3 (E) An individual who requires additional

4 education, vocational training, or intensive

5 counseling and related assistance, in order to

6 participate successfully in regular schoolwork or

7 to secure and hold employment.

8 SEC. 335. RECRUITMENT, SCREENING, SELECTION, AND AS9 SIGNMENT OF ENROLLEES.

10 (a) STANDARDS AND PROCEDURES.—

11 (1) IN GENERAL.—The Secretary shall pre12 scribe specific standards and procedures for the re13 cruitment, screening, and selection of eligible appli14 cants for the Job Corps, after considering rec15 ommendations from the Governors, local partner16 ships, and other interested parties.

17 (2) METHODS.—In prescribing standards and

18 procedures under paragraph (1), the Secretary, at a

19 minimum, shall—

20 (A) prescribe procedures for informing en21 rollees that drug tests will be administered to

22 the enrollees and the results received within 45

23 days after the enrollees enroll in the Job Corps;

24 (B) establish standards for recruitment of

25 Job Corps applicants;
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1 (C) establish standards and procedures

2 for—

3 (i) determining, for each applicant,

4 whether the educational and vocational

5 needs of the applicant can best be met

6 through the Job Corps program or an al7 ternative program in the community in

8 which the applicant resides; and

9 (ii) obtaining from each applicant per10 tinent data relating to background, needs,

11 and interests for determining eligibility

12 and potential assignment;

13 (D) where appropriate, take measures to

14 improve the professional capability of the indi15 viduals conducting screening of the applicants;

16 and

17 (E) assure that an appropriate number of

18 enrollees are from rural areas.

19 (3) IMPLEMENTATION.—To the extent prac20 ticable, the standards and procedures shall be imple21 mented through arrangements with—

22 (A) applicable one-stop customer service

23 centers;

24 (B) community action agencies, business

25 organizations, and labor organizations; and
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1 (C) agencies and individuals that have con2 tact with youth over substantial periods of time

3 and are able to offer reliable information about

4 the needs and problems of the youth.

5 (4) CONSULTATION.—The standards and proce6 dures shall provide for necessary consultation with

7 individuals and organizations, including court, pro8 bation, parole, law enforcement, education, welfare,

9 and medical authorities and advisers.

10 (5) REIMBURSEMENT.—The Secretary is au11 thorized to enter into contracts with and make pay12 ments to individuals and organizations for the cost

13 of conducting recruitment, screening, and selection

14 of eligible applicants for the Job Corps, as provided

15 for in this section. The Secretary shall make no pay16 ment to any individual or organization solely as com17 pensation for referring the names of applicants for

18 the Job Corps.

19 (b) SPECIAL LIMITATIONS ON SELECTION.—

20 (1) IN GENERAL.—No individual shall be se21 lected as an enrollee unless the individual or organi22 zation implementing the standards and procedures

23 determines that—

24 (A) there is a reasonable expectation that

25 the individual considered for selection can par-
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1 ticipate successfully in group situations and ac2 tivities, and is not likely to engage in behavior

3 that would prevent other enrollees from receiv4 ing the benefit of the Job Corps program or be

5 incompatible with the maintenance of sound

6 discipline and satisfactory relationships between

7 the Job Corps center to which the individual

8 might be assigned and communities surround9 ing the Job Corps center;

10 (B) the individual manifests a basic under11 standing of both the rules to which the individ12 ual will be subject and of the consequences of

13 failure to observe the rules; and

14 (C) the individual has passed a background

15 check conducted in accordance with procedures

16 established by the Secretary.

17 (2) INDIVIDUALS ON PROBATION, PAROLE, OR

18 SUPERVISED RELEASE.—An individual on probation,

19 parole, or supervised release may be selected as an

20 enrollee only if release from the supervision of the

21 probation or parole official involved is satisfactory to

22 the official and the Secretary and does not violate

23 applicable laws (including regulations). No individual

24 shall be denied a position in the Job Corps solely on
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1 the basis of individual contact with the criminal jus2 tice system.

3 (c) ASSIGNMENT PLAN.—

4 (1) IN GENERAL.—Every 2 years, the Secretary

5 shall develop and implement an assignment plan for

6 assigning enrollees to Job Corps centers. In develop7 ing the plan, the Secretary shall, based on the analy8 sis described in paragraph (2), establish targets, ap9 plicable to each Job Corps center, for—

10 (A) the maximum attainable percentage of

11 enrollees at the Job Corps center that reside in

12 the State in which the center is located; and

13 (B) the maximum attainable percentage of

14 enrollees at the Job Corps center that reside in

15 the region in which the center is located, and in

16 surrounding regions.

17 (2) ANALYSIS.—In order to develop the plan

18 described in paragraph (1), the Secretary shall,

19 every 2 years, analyze, for the Job Corps center—

20 (A) the size of the population of individ21 uals eligible to participate in Job Corps in the

22 State and region in which the Job Corps center

23 is located, and in surrounding regions;
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1 (B) the relative demand for participation

2 in the Job Corps in the State and region, and

3 in surrounding regions; and

4 (C) the capacity and utilization of the Job

5 Corps center, including services provided

6 through the center.

7 (d) ASSIGNMENT OF INDIVIDUAL ENROLLEES.—

8 (1) IN GENERAL.—After an individual has been

9 selected for the Job Corps in accordance with the

10 standards and procedures of the Secretary under

11 subsection (a), the enrollee shall be assigned to the

12 Job Corps center that is closest to the home of the

13 enrollee, except that the Secretary may waive this

14 requirement if—

15 (A) the enrollee chooses a vocational train16 ing program, or requires English as a second

17 language program, that is not available at such

18 center;

19 (B) the enrollee is an individual with a dis20 ability and may be better served at another cen21 ter;

22 (C) the enrollee would be unduly delayed in

23 participating in the Job Corps program because

24 the closest center is operating at full capacity;

25 or
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1 (D) the parent or guardian of the enrollee

2 requests assignment of the enrollee to another

3 Job Corps center due to circumstances in the

4 community of the enrollee that would impair

5 prospects for successful participation in the Job

6 Corps program.

7 (2) ENROLLEES WHO ARE YOUNGER THAN

8 18.—An enrollee who is younger than 18 shall not

9 be assigned to a Job Corps center other than the

10 center closest to the home of the enrollee pursuant

11 to paragraph (1) if the parent or guardian of the en12 rollee objects to the assignment.

13 SEC. 336. ENROLLMENT.

14 (a) RELATIONSHIP BETWEEN ENROLLMENT AND

15 MILITARY OBLIGATIONS.—Enrollment in the Job Corps

16 shall not relieve any individual of obligations under the

17 Military Selective Service Act (50 U.S.C. App. 451 et

18 seq.).

19 (b) PERIOD OF ENROLLMENT.—No individual may

20 be enrolled in the Job Corps for more than 2 years, ex21 cept—

22 (1) in a case in which completion of an ad23 vanced career training program under section 338(b)

24 would require an individual to participate in the Job

25 Corps for not more than 1 additional year; or
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1 (2) as the Secretary may authorize in a special

2 case.

3 SEC. 337. JOB CORPS CENTERS.

4 (a) OPERATORS AND SERVICE PROVIDERS.—

5 (1) ELIGIBLE ENTITIES.—

6 (A) OPERATORS.—The Secretary shall

7 enter into an agreement with a Federal, State,

8 or local agency, such as individuals participat9 ing in a statewide partnership or in a local

10 partnership or an agency that operates or wish11 es to develop an area vocational education

12 school facility or residential vocational school,

13 or with a private organization, for the operation

14 of each Job Corps center.

15 (B) PROVIDERS.—The Secretary may

16 enter into an agreement with a local entity to

17 provide activities described in this subtitle to

18 the Job Corps center.

19 (2) SELECTION PROCESS.—

20 (A) COMPETITIVE BASIS.—Except as pro21 vided in subsections (c) and (d) of section 303

22 of the Federal Property and Administrative

23 Services Act of 1949 (41 U.S.C. 253), the Sec24 retary shall select on a competitive basis an en25 tity to operate a Job Corps center and entities
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1 to provide activities described in this subtitle to

2 the Job Corps center. In developing a solicita3 tion for an operator or service provider, the

4 Secretary shall consult with the Governor for

5 the State in which the center is located, the in6 dustry council for the Job Corps center (if es7 tablished), and the applicable local partnership

8 regarding the contents of such solicitation, in9 cluding elements that will promote the consist10 ency of the activities carried out through the

11 center with the objectives set forth in the State

12 plan or in a local plan.

13 (B) RECOMMENDATIONS AND CONSIDER14 ATIONS.—

15 (i) OPERATORS.—In selecting an en16 tity to operate a Job Corps center, the

17 Secretary shall consider—

18 (I) the ability of the entity to co19 ordinate the activities carried out

20 through the Job Corps center with ac21 tivities carried out under the appro22 priate State plan and local plans;

23 (II) the degree to which the voca24 tional training that the entity pro25 poses for the center reflects local em-
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1 ployment opportunities in the local

2 areas in which enrollees at the center

3 intend to seek employment;

4 (III) the degree to which the en5 tity is familiar with the surrounding

6 communities, applicable one-stop cen7 ters, and the State and region in

8 which the center is located; and

9 (IV) the past performance of the

10 entity, if any, relating to operating or

11 providing activities described in this

12 subtitle to a Job Corps center.

13 (ii) PROVIDERS.—In selecting a serv14 ice provider for a Job Corps center, the

15 Secretary shall consider the factors de16 scribed in subclauses (I) through (IV) of

17 clause (i), as appropriate.

18 (b) CHARACTER AND ACTIVITIES.—Job Corps cen19 ters may be residential or nonresidential in character, and

20 shall be designed and operated so as to provide enrollees,

21 in a well-supervised setting, with access to activities de22 scribed in this subtitle. In any year, no more than 20 per23 cent of the individuals enrolled in the Job Corps may be

24 nonresidential participants in the Job Corps.

25 (c) CIVILIAN CONSERVATION CENTERS.—
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1 (1) IN GENERAL.—The Job Corps centers may

2 include Civilian Conservation Centers operated

3 under agreements with the Secretary of Agriculture

4 or the Secretary of the Interior, located primarily in

5 rural areas, which shall provide, in addition to other

6 vocational training and assistance, programs of work

7 experience to conserve, develop, or manage public

8 natural resources or public recreational areas or to

9 develop community projects in the public interest.

10 (2) SELECTION PROCESS.—The Secretary may

11 select an entity to operate a Civilian Conservation

12 Center on a competitive basis, as provided in sub13 section (a), if the center fails to meet such national

14 performance standards as the Secretary shall estab15 lish.

16 (d) INDIAN TRIBES.—

17 (1) GENERAL AUTHORITY.—The Secretary may

18 enter into agreements with Indian tribes to operate

19 Job Corps centers for Indians.

20 (2) DEFINITIONS.—In this subsection, the

21 terms ‘‘Indian’’ and ‘‘Indian tribe’’, have the mean22 ings given such terms in subsections (d) and (e), re23 spectively, of section 4 of the Indian Self-Determina24 tion and Education Assistance Act (25 U.S.C.

25 450b).
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1 SEC. 338. PROGRAM ACTIVITIES.

2 (a) ACTIVITIES PROVIDED BY JOB CORPS CEN3 TERS.—

4 (1) IN GENERAL.—Each Job Corps center shall

5 provide enrollees with an intensive, well organized,

6 and fully supervised program of education, voca7 tional training, work experience, recreational activi8 ties, and counseling. Each Job Corps center shall

9 provide enrollees assigned to the center with access

10 to core services described in subtitle A.

11 (2) RELATIONSHIP TO OPPORTUNITIES.—

12 (A) IN GENERAL.—The activities provided

13 under this subsection shall provide work-based

14 learning throughout the enrollment of the en15 rollees and assist the enrollees in obtaining

16 meaningful unsubsidized employment, partici17 pating in secondary education or postsecondary

18 education programs, enrolling in other suitable

19 vocational training programs, or satisfying

20 Armed Forces requirements, on completion of

21 their enrollment.

22 (B) LINK TO EMPLOYMENT OPPORTUNI23 TIES.—The vocational training provided shall

24 be linked to the employment opportunities in

25 the local area in which the enrollee intends to

26 seek employment after graduation.
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1 (b) ADVANCED CAREER TRAINING PROGRAMS.—

2 (1) IN GENERAL.—The Secretary may arrange

3 for programs of advanced career training for se4 lected enrollees in which the enrollees may continue

5 to participate for a period of not to exceed 1 year

6 in addition to the period of participation to which

7 the enrollees would otherwise be limited. The ad8 vanced career training may be provided through the

9 eligible providers of training services identified by

10 the State involved under section 312.

11 (2) BENEFITS.—

12 (A) IN GENERAL.—During the period of

13 participation in an advanced career training

14 program, an enrollee shall be eligible for full

15 Job Corps benefits, or a monthly stipend equal

16 to the average value of the residential support,

17 food, allowances, and other benefits provided to

18 enrollees assigned to residential Job Corps cen19 ters.

20 (B) CALCULATION.—The total amount for

21 which an enrollee shall be eligible under sub22 paragraph (A) shall be reduced by the amount

23 of any scholarship or other educational grant

24 assistance received by such enrollee for ad25 vanced career training.
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1 (3) DEMONSTRATION.—Each year, any opera2 tor seeking to enroll additional enrollees in an ad3 vanced career training program shall demonstrate

4 that participants in such program have achieved a

5 reasonable rate of completion and placement in

6 training-related jobs before the operator may carry

7 out such additional enrollment.

8 (c) CONTINUED SERVICES.—The Secretary shall also

9 provide continued services to graduates, including provid10 ing counseling regarding the workplace for 12 months

11 after the date of graduation of the graduates. In selecting

12 a provider for such services, the Secretary shall give prior13 ity to one-stop partners.

14 SEC. 339. COUNSELING AND JOB PLACEMENT.

15 (a) COUNSELING AND TESTING.—The Secretary

16 shall arrange for counseling and testing for each enrollee

17 at regular intervals to measure progress in the education

18 and vocational training programs carried out through the

19 Job Corps.

20 (b) PLACEMENT.—The Secretary shall arrange for

21 counseling and testing for enrollees prior to their sched22 uled graduations to determine their capabilities and, based

23 on their capabilities, shall make every effort to arrange

24 to place the enrollees in jobs in the vocations for which

25 the enrollees are trained or to assist the enrollees in ob-
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1 taining further activities described in this subtitle. In ar2 ranging for the placement of graduates in jobs, the Sec3 retary shall utilize the one-stop customer service system

4 to the fullest extent possible.

5 (c) STATUS AND PROGRESS.—The Secretary shall de6 termine the status and progress of enrollees scheduled for

7 graduation and make every effort to assure that their

8 needs for further activities described in this subtitle are

9 met.

10 SEC. 340. SUPPORT.

11 (a) PERSONAL ALLOWANCES.—The Secretary shall

12 provide enrollees assigned to Job Corps centers with such

13 personal allowances as the Secretary may determine to be

14 necessary or appropriate to meet the needs of the enroll15 ees.

16 (b) READJUSTMENT ALLOWANCES.—The Secretary

17 shall arrange for a readjustment allowance to be paid to

18 eligible former enrollees and graduates. The Secretary

19 shall arrange for the allowance to be paid at the one-stop

20 customer service center nearest to the home of such a

21 former enrollee or graduate who is returning home, or at

22 the one-stop customer service center nearest to the loca23 tion where the former enrollee or graduate has indicated

24 an intent to seek employment. If the Secretary uses any

25 organization, in lieu of a one-stop customer service center,
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1 to provide placement services under this Act, the Secretary

2 shall arrange for that organization to pay the readjust3 ment allowance.

4 SEC. 341. OPERATING PLAN.

5 (a) IN GENERAL.—The provisions of the contract be6 tween the Secretary and an entity selected to operate a

7 Job Corps center shall, at a minimum, serve as an operat8 ing plan for the Job Corps center.

9 (b) ADDITIONAL INFORMATION.—The Secretary may

10 require the operator, in order to remain eligible to operate

11 the Job Corps center, to submit such additional informa12 tion as the Secretary may require, which shall be consid13 ered part of the operating plan.

14 (c) AVAILABILITY.—The Secretary shall make the op15 erating plan described in subsections (a) and (b), exclud16 ing any proprietary information, available to the public.

17 SEC. 342. STANDARDS OF CONDUCT.

18 (a) PROVISION AND ENFORCEMENT.—The Secretary

19 shall provide, and directors of Job Corps centers shall

20 stringently enforce, standards of conduct within the cen21 ters. Such standards of conduct shall include provisions

22 forbidding the actions described in subsection (b)(2)(A).

23 (b) DISCIPLINARY MEASURES.—

24 (1) IN GENERAL.—To promote the proper

25 moral and disciplinary conditions in the Job Corps,
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1 the directors of Job Corps centers shall take appro2 priate disciplinary measures against enrollees. If

3 such a director determines that an enrollee has com4 mitted a violation of the standards of conduct, the

5 director shall dismiss the enrollee from the Job

6 Corps if the director determines that the retention

7 of the enrollee in the Job Corps will jeopardize the

8 enforcement of such standards or diminish the op9 portunities of other enrollees.

10 (2) ZERO TOLERANCE POLICY AND DRUG TEST11 ING.—

12 (A) GUIDELINES.—The Secretary shall

13 adopt guidelines establishing a zero tolerance

14 policy for an act of violence, for use, sale, or

15 possession of a controlled substance, for abuse

16 of alcohol, or for other illegal or disruptive ac17 tivity.

18 (B) DRUG TESTING.—The Secretary shall

19 require drug testing of all enrollees for con20 trolled substances in accordance with proce21 dures prescribed by the Secretary under section

22 335(a).

23 (C) DEFINITIONS.—In this paragraph:

24 (i) CONTROLLED SUBSTANCE.—The

25 term ‘‘controlled substance’’ has the mean-
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1 ing given the term in section 102 of the

2 Controlled Substances Act (21 U.S.C.

3 802).

4 (ii) ZERO TOLERANCE POLICY.—The

5 term ‘‘zero tolerance policy’’ means a pol6 icy under which an enrollee shall be auto7 matically dismissed from the Job Corps

8 after a determination by the director that

9 the enrollee has carried out an action de10 scribed in subparagraph (A).

11 (c) APPEAL.—A disciplinary measure taken by a di12 rector under this section shall be subject to expeditious

13 appeal in accordance with procedures established by the

14 Secretary.

15 SEC. 343. COMMUNITY PARTICIPATION.

16 (a) BUSINESS AND COMMUNITY LIAISON.—Each Job

17 Corps center shall have a Business and Community Liai18 son (referred to in this Act as a ‘‘Liaison’’), designated

19 by the director of the center.

20 (b) RESPONSIBILITIES.—The responsibilities of the

21 Liaison shall include—

22 (1) establishing and developing relationships

23 and networks with—

24 (A) local and (in the case of rural or re25 mote sites) distant employers; and
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1 (B) applicable one-stop customer service

2 centers and applicable local partnerships,

3 for the purpose of providing job opportunities for

4 Job Corps graduates; and

5 (2) establishing and developing relationships

6 with members of the community in which the Job

7 Corps center is located, informing members of the

8 community about the projects of the Job Corps cen9 ter and changes in the rules, procedures, or activities

10 of the center that may affect the community, and

11 planning events of mutual interest to the community

12 and the Job Corps center.

13 (c) NEW CENTERS.—The Liaison for a Job Corps

14 center that is not yet operating shall establish and develop

15 the relationships and networks described in subsection (b)

16 at least 3 months prior to the date on which the center

17 accepts the first enrollee at the center.

18 SEC. 344. INDUSTRY COUNCILS.

19 (a) IN GENERAL.—Each Job Corps center shall have

20 an industry council, appointed by the director of the center

21 after consultation with the Liaison, in accordance with

22 procedures established by the Secretary.

23 (b) INDUSTRY COUNCIL COMPOSITION.—

24 (1) IN GENERAL.—An industry council shall be

25 comprised of—
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1 (A) a majority of members who shall be

2 local and (in the case of rural or remote sites)

3 distant owners of business concerns, chief ex4 ecutives or chief operating officers of non5 governmental employers, or other private sector

6 employers, who—

7 (i) have substantial management, hir8 ing, or policy responsibility; and

9 (ii) who represent businesses with em10 ployment opportunities that reflect the em11 ployment opportunities of the applicable

12 local area; and

13 (B) representatives of labor organizations

14 (where present) and representatives of employ15 ees.

16 (2) LOCAL PARTNERSHIP.—The industry coun17 cil may include members of the applicable local part18 nerships who meet the requirements described in

19 paragraph (1).

20 (c) RESPONSIBILITIES.—The responsibilities of the

21 industry council shall be—

22 (1) to work closely with all applicable local part23 nerships in order to determine, and recommend to

24 the Secretary, appropriate vocational training for the

25 center;
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1 (2) to review all the relevant labor market in2 formation to—

3 (A) determine the employment opportuni4 ties in the local areas in which the enrollees in5 tend to seek employment after graduation;

6 (B) determine the skills and education that

7 are necessary to obtain the employment oppor8 tunities; and

9 (C) recommend to the Secretary the type

10 of vocational training that should be imple11 mented at the center to enable the enrollees to

12 obtain the employment opportunities; and

13 (3) to meet at least once every 6 months to re14 evaluate the labor market information, and other rel15 evant information, to determine, and recommend to

16 the Secretary, any necessary changes in the voca17 tional training provided at the center.

18 (d) NEW CENTERS.—The industry council for a Job

19 Corps center that is not yet operating shall carry out the

20 responsibilities described in subsection (c) at least 3

21 months prior to the date on which the center accepts the

22 first enrollee at the center.

23 SEC. 345. ADVISORY COMMITTEES.

24 The Secretary may establish and use advisory com25 mittees in connection with the operation of the Job Corps
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1 program, and the operation of Job Corps centers, when2 ever the Secretary determines that the availability of out3 side advice and counsel on a regular basis would be of

4 substantial benefit in identifying and overcoming prob5 lems, in planning program or center development, or in

6 strengthening relationships between the Job Corps and

7 agencies, institutions, or groups engaged in related activi8 ties.

9 SEC. 346. EXPERIMENTAL, RESEARCH, AND DEMONSTRA10 TION PROJECTS.

11 The Secretary may carry out experimental, research,

12 or demonstration projects relating to carrying out the Job

13 Corps program and may waive any provision of this sub14 title that the Secretary finds would prevent the Secretary

15 from carrying out the projects.

16 SEC. 347. APPLICATION OF PROVISIONS OF FEDERAL LAW.

17 (a) ENROLLEES NOT CONSIDERED TO BE FEDERAL

18 EMPLOYEES.—

19 (1) IN GENERAL.—Except as otherwise pro20 vided in this subsection and in section 8143(a) of

21 title 5, United States Code, enrollees shall not be

22 considered to be Federal employees and shall not be

23 subject to the provisions of law relating to Federal

24 employment, including such provisions regarding

25 hours of work, rates of compensation, leave, unem-
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1 ployment compensation, and Federal employee bene2 fits.

3 (2) PROVISIONS RELATING TO TAXES AND SO4 CIAL SECURITY BENEFITS.—For purposes of the In5 ternal Revenue Code of 1986 and title II of the So6 cial Security Act (42 U.S.C. 401 et seq.), enrollees

7 shall be deemed to be employees of the United

8 States and any service performed by an individual as

9 an enrollee shall be deemed to be performed in the

10 employ of the United States.

11 (3) PROVISIONS RELATING TO COMPENSATION

12 TO FEDERAL EMPLOYEES FOR WORK INJURIES.—

13 For purposes of subchapter I of chapter 81 of title

14 5, United States Code (relating to compensation to

15 Federal employees for work injuries), enrollees shall

16 be deemed to be civil employees of the Government

17 of the United States within the meaning of the term

18 ‘‘employee’’ as defined in section 8101 of title 5,

19 United States Code, and the provisions of such sub20 chapter shall apply as specified in section 8143(a) of

21 title 5, United States Code.

22 (4) FEDERAL TORT CLAIMS PROVISIONS.—For

23 purposes of the Federal tort claims provisions in

24 title 28, United States Code, enrollees shall be con25 sidered to be employees of the Government.
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1 (b) ADJUSTMENTS AND SETTLEMENTS.—Whenever

2 the Secretary finds a claim for damages to a person or

3 property resulting from the operation of the Job Corps

4 to be a proper charge against the United States, and the

5 claim is not cognizable under section 2672 of title 28,

6 United States Code, the Secretary may adjust and settle

7 the claim in an amount not exceeding $1,500.

8 (c) PERSONNEL OF THE UNIFORMED SERVICES.—

9 Personnel of the uniformed services who are detailed or

10 assigned to duty in the performance of agreements made

11 by the Secretary for the support of the Job Corps shall

12 not be counted in computing strength under any law limit13 ing the strength of such services or in computing the per14 centage authorized by law for any grade in such services.

15 SEC. 348. SPECIAL PROVISIONS.

16 (a) ENROLLMENT.—The Secretary shall ensure that

17 women and men have an equal opportunity to participate

18 in the Job Corps program, consistent with section 335.

19 (b) STUDIES, EVALUATIONS, PROPOSALS, AND

20 DATA.—The Secretary shall assure that all studies, eval21 uations, proposals, and data produced or developed with

22 Federal funds in the course of carrying out the Job Corps

23 program shall become the property of the United States.

24 (c) TRANSFER OF PROPERTY.—
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1 (1) IN GENERAL.—Notwithstanding title II of

2 the Federal Property and Administrative Services

3 Act of 1949 (40 U.S.C. 481 et seq.) and any other

4 provision of law, the Secretary and the Secretary of

5 Education shall receive priority by the Secretary of

6 Defense for the direct transfer, on a nonreimburs7 able basis, of the property described in paragraph

8 (2) for use in carrying out programs under this Act

9 or under any other Act.

10 (2) PROPERTY.—The property described in this

11 paragraph is real and personal property under the

12 control of the Department of Defense that is not

13 used by such Department, including property that

14 the Secretary of Defense determines is in excess of

15 current and projected requirements of such Depart16 ment.

17 (d) GROSS RECEIPTS.—Transactions conducted by a

18 private for-profit or nonprofit entity that is an operator

19 or service provider for a Job Corps center shall not be

20 considered to be generating gross receipts. Such an opera21 tor or service provider shall not be liable, directly or indi22 rectly, to any State or subdivision of a State (nor to any

23 person acting on behalf of such a State or subdivision)

24 for any gross receipts taxes, business privilege taxes meas25 ured by gross receipts, or any similar taxes imposed on,
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1 or measured by, gross receipts in connection with any pay2 ments made to or by such entity for operating or providing

3 services to a Job Corps center. Such an operator or service

4 provider shall not be liable to any State or subdivision of

5 a State to collect or pay any sales, excise, use, or similar

6 tax imposed on the sale to or use by such operator or serv7 ice provider of any property, service, or other item in con8 nection with the operation of or provision of services to

9 a Job Corps center.

10 (e) MANAGEMENT FEE.—The Secretary shall provide

11 each operator and (in an appropriate case, as determined

12 by the Secretary) service provider with an equitable and

13 negotiated management fee of not less than 1 percent of

14 the amount of the funding provided under the appropriate

15 agreement specified in section 337.

16 (f) DONATIONS.—The Secretary may accept on be17 half of the Job Corps or individual Job Corps centers

18 charitable donations of cash or other assistance, including

19 equipment and materials, if such donations are available

20 for appropriate use for the purposes set forth in this sub21 title.

22 (g) SALE OF PROPERTY.—Notwithstanding any other

23 provision of law, if the Administrator of General Services

24 sells a Job Corps center facility, the Administrator shall
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1 transfer the proceeds from the sale to the Secretary, who

2 shall use the proceeds to carry out the Job Corps program.

3 SEC. 349. MANAGEMENT INFORMATION.

4 (a) FINANCIAL MANAGEMENT INFORMATION SYS5 TEM.—

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

7 procedures to ensure that each operator, and each

8 service provider, maintains a financial management

9 information system that will provide—

10 (A) accurate, complete, and current disclo11 sures of the costs of Job Corps operations; and

12 (B) sufficient data for the effective evalua13 tion of activities carried out through the Job

14 Corps program.

15 (2) ACCOUNTS.—Each operator and service

16 provider shall maintain funds received under this

17 subtitle in accounts in a manner that ensures timely

18 and accurate reporting as required by the Secretary.

19 (3) FISCAL RESPONSIBILITY.—Operators shall

20 remain fiscally responsible and control costs, regard21 less of whether the funds made available for Job

22 Corps centers are incrementally increased or de23 creased between fiscal years.

24 (b) AUDIT.—
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1 (1) ACCESS.—The Secretary, the Inspector

2 General of the Department of Labor, the Comptrol3 ler General of the United States, and any of their

4 duly authorized representatives, shall have access to

5 any books, documents, papers, and records of the

6 operators and service providers described in sub7 section (a) that are pertinent to the Job Corps pro8 gram, for purposes of conducting surveys, audits,

9 and evaluations of the operators and service provid10 ers.

11 (2) SURVEYS, AUDITS, AND EVALUATIONS.—

12 The Secretary shall survey, audit, or evaluate, or ar13 range for the survey, audit, or evaluation of, the op14 erators and service providers, using Federal auditors

15 or independent public accountants. The Secretary

16 shall conduct such surveys, audits, or evaluations

17 not less often than once every 3 years.

18 (c) INFORMATION ON CORE PERFORMANCE MEAS19 URES.—

20 (1) ESTABLISHMENT.—The Secretary shall,

21 with continuity and consistency from year to year,

22 establish core performance measures, and expected

23 performance levels on the performance measures, for

24 Job Corps centers and the Job Corps program, re25 lating to—
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1 (A) the number of graduates and the rate

2 of such graduation, analyzed by type of voca3 tional training received through the Job Corps

4 program and by whether the vocational training

5 was provided by a local or national service pro6 vider;

7 (B) the number of graduates who entered

8 unsubsidized employment related to the voca9 tional training received through the Job Corps

10 program and the number who entered

11 unsubsidized employment not related to the vo12 cational training received, analyzed by whether

13 the vocational training was provided by a local

14 or national service provider and by whether the

15 placement in the employment was conducted by

16 a local or national service provider;

17 (C) the average wage received by graduates

18 who entered unsubsidized employment related

19 to the vocational training received through the

20 Job Corps program and the average wage re21 ceived by graduates who entered unsubsidized

22 employment unrelated to the vocational training

23 received;
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1 (D) the average wage received by grad2 uates placed in unsubsidized employment after

3 completion of the Job Corps program—

4 (i) on the first day of the employment;

5 (ii) 6 months after the first day of the

6 employment; and

7 (iii) 12 months after the first day of

8 the employment,

9 analyzed by type of vocational training received

10 through the Job Corps program;

11 (E) the number of graduates who entered

12 unsubsidized employment and were retained in

13 the unsubsidized employment—

14 (i) 6 months after completion of the

15 Job Corps program; and

16 (ii) 12 months after completion of the

17 Job Corps program;

18 (F) the number of graduates who entered

19 unsubsidized employment—

20 (i) for 32 hours per week or more;

21 (ii) for not less than 20 but less than

22 32 hours per week; and

23 (iii) for less than 20 hours per week;

24 (G) the number of graduates who entered

25 postsecondary education or advanced training
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1 programs, including registered apprenticeship

2 programs, as appropriate; and

3 (H) the number of graduates who attained

4 job readiness and employment skills.

5 (2) PERFORMANCE OF RECRUITERS.—The Sec6 retary shall also establish performance measures,

7 and expected performance levels on the performance

8 measures, for local and national recruitment service

9 providers serving the Job Corps program. The per10 formance measures shall relate to the number of en11 rollees retained in the Job Corps program for 30

12 days and for 60 days after initial placement in the

13 program.

14 (3) REPORT.—The Secretary shall collect, and

15 annually submit a report to the appropriate commit16 tees of Congress containing, information on the per17 formance of each Job Corps center, and the Job

18 Corps program, on the core performance measures,

19 as compared to the expected performance level for

20 each performance measure. The report shall also

21 contain information on the performance of the serv22 ice providers described in paragraph (2) on the per23 formance measures established under such para24 graph, as compared to the expected performance lev25 els for the performance measures.
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1 (d) ADDITIONAL INFORMATION.—The Secretary shall

2 also collect, and submit in the report described in sub3 section (c), information on the performance of each Job

4 Corps center, and the Job Corps program, regarding—

5 (1) the number of enrollees served;

6 (2) the average level of learning gains for grad7 uates and former enrollees;

8 (3) the number of former enrollees and grad9 uates who entered the Armed Forces;

10 (4) the number of former enrollees who entered

11 postsecondary education;

12 (5) the number of former enrollees who entered

13 unsubsidized employment related to the vocational

14 training received through the Job Corps program

15 and the number who entered unsubsidized employ16 ment not related to the vocational training received;

17 (6) the number of former enrollees and grad18 uates who obtained a secondary school diploma or its

19 recognized equivalent;

20 (7) the number and percentage of dropouts

21 from the Job Corps program including the number

22 dismissed under the zero tolerance policy described

23 in section 342(b); and

24 (8) any additional information required by Sec25 retary.
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1 (e) METHODS.—The Secretary may, to collect the in2 formation described in subsections (c) and (d), use meth3 ods described in subtitle A.

4 (f) PERFORMANCE ASSESSMENTS AND IMPROVE5 MENTS.—

6 (1) ASSESSMENTS.—The Secretary shall con7 duct an annual assessment of the performance of

8 each Job Corps center. Based on the assessment, the

9 Secretary shall take measures to continuously im10 prove the performance of the Job Corps program.

11 (2) PERFORMANCE IMPROVEMENT PLANS.—

12 With respect to a Job Corps center that fails to

13 meet the expected levels of performance relating to

14 the core performance measures specified in sub15 section (c), the Secretary shall develop and imple16 ment a performance improvement plan. Such a plan

17 shall require action including—

18 (A) providing technical assistance to the

19 center;

20 (B) changing the vocational training of21 fered at the center;

22 (C) changing the management staff of the

23 center;

24 (D) replacing the operator of the center;

25 (E) reducing the capacity of the center;
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1 (F) relocating the center; or

2 (G) closing the center.

3 (3) ADDITIONAL PERFORMANCE IMPROVEMENT

4 PLANS.—In addition to the performance improve5 ment plans required under paragraph (2), the Sec6 retary may develop and implement additional per7 formance improvement plans. Such a plan shall re8 quire improvements, including the actions described

9 in paragraph (2), for a Job Corps center that fails

10 to meet criteria established by the Secretary other

11 than the expected levels of performance described in

12 paragraph (2).

13 SEC. 350. GENERAL PROVISIONS.

14 The Secretary is authorized to—

15 (1) disseminate, with regard to the provisions of

16 section 3204 of title 39, United States Code, data

17 and information in such forms as the Secretary shall

18 determine to be appropriate, to public agencies, pri19 vate organizations, and the general public;

20 (2) subject to section 347(b), collect or com21 promise all obligations to or held by the Secretary

22 and exercise all legal or equitable rights accruing to

23 the Secretary in connection with the payment of ob24 ligations until such time as such obligations may be
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1 referred to the Attorney General for suit or collec2 tion; and

3 (3) expend funds made available for purposes of

4 this subtitle—

5 (A) for printing and binding, in accordance

6 with applicable law (including regulation); and

7 (B) without regard to any other law (in8 cluding regulation), for rent of buildings and

9 space in buildings and for repair, alteration,

10 and improvement of buildings and space in

11 buildings rented by the Secretary, except that

12 the Secretary shall not expend funds under the

13 authority of this subparagraph—

14 (i) except when necessary to obtain an

15 item, service, or facility, that is required in

16 the proper administration of this subtitle,

17 and that otherwise could not be obtained,

18 or could not be obtained in the quantity or

19 quality needed, or at the time, in the form,

20 or under the conditions in which the item,

21 service, or facility is needed; and

22 (ii) prior to having given written noti23 fication to the Administrator of General

24 Services (if the expenditure would affect an

25 activity that otherwise would be under the
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1 jurisdiction of the General Services Admin2 istration) of the intention of the Secretary

3 to make the expenditure, and the reasons

4 and justifications for the expenditure.

5 SEC. 351. AUTHORIZATION OF APPROPRIATIONS.

6 There are authorized to be appropriated to carry out

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

8 the fiscal years 1999 through 2003.

9 Subtitle C—National Programs

10 SEC. 361. NATIVE AMERICAN PROGRAMS.

11 (a) PURPOSE AND POLICY.—

12 (1) PURPOSE.—The purpose of this section is

13 to support workforce investment activities and sup14 plemental services for Indian and Native Hawaiian

15 individuals in order—

16 (A) to develop more fully the academic, oc17 cupational, and literacy skills of such individ18 uals;

19 (B) to make such individuals more com20 petitive in the workforce; and

21 (C) to promote the economic and social de22 velopment of Indian and Native Hawaiian com23 munities in accordance with the goals and val24 ues of such communities.
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1 (2) INDIAN POLICY.—All programs assisted

2 under this section shall be administered in a manner

3 consistent with the principles of the Indian Self-De4 termination and Education Assistance Act (25

5 U.S.C. 450 et seq.) and the government-to-govern6 ment relationship between the Federal Government

7 and Indian tribal governments.

8 (b) DEFINITIONS.—In this section:

9 (1) INDIAN, INDIAN TRIBE, AND TRIBAL ORGA10 NIZATION.—The terms ‘‘Indian’’, ‘‘Indian tribe’’,

11 and ‘‘tribal organization’’ have the meanings given

12 such terms in subsections (d), (e), and (l), respec13 tively, of section 4 of the Indian Self-Determination

14 and Education Assistance Act (25 U.S.C. 450b).

15 (2) NATIVE HAWAIIAN AND NATIVE HAWAIIAN

16 ORGANIZATION.—The terms ‘‘Native Hawaiian’’ and

17 ‘‘Native Hawaiian organization’’ have the meanings

18 given such terms in paragraphs (1) and (3), respec19 tively, of section 9212 of the Native Hawaiian Edu20 cation Act (20 U.S.C. 7912).

21 (c) PROGRAMS AUTHORIZED.—The Secretary shall

22 make grants to, or enter into contracts or cooperative

23 agreements with, Indian tribes, tribal organizations, In24 dian-controlled organizations serving Indians, or Native
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1 Hawaiian organizations to carry out the authorized activi2 ties described in subsection (d).

3 (d) AUTHORIZED ACTIVITIES.—

4 (1) IN GENERAL.—Funds made available under

5 this section shall be used to carry out the activities

6 described in paragraph (2) that—

7 (A) are consistent with this section; and

8 (B) are necessary to meet the needs of In9 dians or Native Hawaiians preparing to enter,

10 reenter, or retain unsubsidized employment.

11 (2) WORKFORCE INVESTMENT ACTIVITIES AND

12 SUPPLEMENTAL SERVICES.—

13 (A) IN GENERAL.—Funds made available

14 under this section shall be used for—

15 (i) building a comprehensive facility to

16 be utilized by American Samoans residing

17 in Hawaii for the co-location of federally

18 funded and State funded workforce invest19 ment activities;

20 (ii) comprehensive workforce invest21 ment activities for Indians or Native Ha22 waiians; or

23 (iii) supplemental services for Indian

24 or Native Hawaiian youth on or near In-
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1 dian reservations and in Oklahoma, Alas2 ka, or Hawaii.

3 (B) SPECIAL RULE.—Notwithstanding any

4 other provision of this section, individuals who

5 were eligible to participate in programs under

6 section 401 of the Job Training Partnership

7 Act (29 U.S.C. 1671) (as such section was in

8 effect on the day before the date of enactment

9 of this Act) shall be eligible to participate in an

10 activity assisted under subparagraph (A)(i).

11 (e) PROGRAM PLAN.—In order to receive a grant or

12 enter into a contract or cooperative agreement under this

13 section an entity described in subsection (c) shall submit

14 to the Secretary a plan that describes a 2-year strategy

15 for meeting the needs of Indian or Native Hawaiian indi16 viduals, as appropriate, in the area served by such entity.

17 Such plan shall—

18 (1) be consistent with the purpose of this sec19 tion;

20 (2) identify the population to be served;

21 (3) identify the education and employment

22 needs of the population to be served and the manner

23 in which the activities to be provided will strengthen

24 the ability of the individuals served to obtain or re25 tain unsubsidized employment;
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1 (4) describe the activities to be provided and

2 the manner in which such activities are to be inte3 grated with other appropriate activities; and

4 (5) describe, after the entity submitting the

5 plan consults with the Secretary, the performance

6 measures to be used to assess the performance of

7 entities in carrying out the activities assisted under

8 this section.

9 (f) CONSOLIDATION OF FUNDS.—Each entity receiv10 ing assistance under this section may consolidate such as11 sistance with assistance received from related programs in

12 accordance with the provisions of the Indian Employment,

13 Training and Related Services Demonstration Act of 1992

14 (25 U.S.C. 3401 et seq.).

15 (g) NONDUPLICATIVE AND NONEXCLUSIVE SERV16 ICES.—Nothing in this section shall be construed—

17 (1) to limit the eligibility of any entity de18 scribed in subsection (c) to participate in any activ19 ity offered by a State or local entity under this Act;

20 or

21 (2) to preclude or discourage any agreement,

22 between any entity described in subsection (c) and

23 any State or local entity, to facilitate the provision

24 of services by such entity or to the population served

25 by such entity.
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1 (h) ADMINISTRATIVE PROVISIONS.—

2 (1) ORGANIZATIONAL UNIT ESTABLISHED.—

3 The Secretary shall designate a single organizational

4 unit within the Department of Labor that shall have

5 primary responsibility for the administration of the

6 activities authorized under this section.

7 (2) REGULATIONS.—The Secretary shall con8 sult with the entities described in subsection (c) in—

9 (A) establishing regulations to carry out

10 this section, including performance measures

11 for entities receiving assistance under such sub12 section, taking into account the economic cir13 cumstances of such entities; and

14 (B) developing a funding distribution plan

15 that takes into consideration previous levels of

16 funding (prior to the date of enactment of this

17 Act) to such entities.

18 (3) WAIVERS.—

19 (A) IN GENERAL.—With respect to an en20 tity described in subsection (c), the Secretary,

21 notwithstanding any other provision of law,

22 may, pursuant to a request submitted by such

23 entity that meets the requirements established

24 under paragraph (2), waive any of the statutory

25 or regulatory requirements of this title that are
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1 inconsistent with the specific needs of the enti2 ties described in such subsection, except that

3 the Secretary may not waive requirements relat4 ing to wage and labor standards, worker rights,

5 participation and protection of participants,

6 grievance procedures, and judicial review.

7 (B) REQUEST AND APPROVAL.—An entity

8 described in subsection (c) that requests a waiv9 er under subparagraph (A) shall submit a plan

10 to the Secretary to improve the program of

11 workforce investment activities carried out by

12 the entity, which plan shall meet the require13 ments established by the Secretary and shall be

14 generally consistent with the requirements of

15 section 379(i)(3).

16 (4) ADVISORY COUNCIL.—

17 (A) IN GENERAL.—The Secretary shall es18 tablish a Native American Employment and

19 Training Council to facilitate the consultation

20 described in paragraph (2).

21 (B) COMPOSITION.—The Council shall be

22 composed of individuals, appointed by the Sec23 retary, who are representatives of the entities

24 described in subsection (c).
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1 (C) DUTIES.—The Council shall advise the

2 Secretary on all aspects of the operation and

3 administration of the programs assisted under

4 this section, including the selection of the indi5 vidual appointed as the head of the unit estab6 lished under paragraph (1).

7 (D) PERSONNEL MATTERS.—

8 (i) COMPENSATION OF MEMBERS.—

9 Members of the Council shall serve without

10 compensation.

11 (ii) TRAVEL EXPENSES.—The mem12 bers of the Council shall be allowed travel

13 expenses, including per diem in lieu of sub14 sistence, at rates authorized for employees

15 of agencies under subchapter I of chapter

16 57 of title 5, United States Code, while

17 away from their homes or regular places of

18 business in the performance of services for

19 the Council.

20 (iii) ADMINISTRATIVE SUPPORT.—The

21 Secretary shall provide the Council with

22 such administrative support as may be nec23 essary to perform the functions of the

24 Council.
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1 (E) CHAIRPERSON.—The Council shall se2 lect a chairperson from among its members.

3 (F) MEETINGS.—The Council shall meet

4 not less than twice each year.

5 (G) APPLICATION.—Section 14 of the Fed6 eral Advisory Committee Act (5 U.S.C. App.)

7 shall not apply to the Council.

8 (5) TECHNICAL ASSISTANCE.—The Secretary,

9 acting through the unit established under paragraph

10 (1), is authorized to provide technical assistance to

11 entities described in subsection (c) that receive as12 sistance under this section to enable such entities to

13 improve the activities authorized under this section

14 that are provided by such entities.

15 SEC. 362. MIGRANT AND SEASONAL FARMWORKER PRO16 GRAMS.

17 (a) IN GENERAL.—Every 2 years, the Secretary

18 shall, on a competitive basis, make grants to, or enter into

19 contracts with, eligible entities to carry out the activities

20 described in subsection (d).

21 (b) ELIGIBLE ENTITIES.—To be eligible to receive a

22 grant or enter into a contract under this section, an entity

23 shall have an understanding of the problems of eligible mi24 grant and seasonal farmworkers (including dependents),

25 a familiarity with the area to be served, and the ability
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1 to demonstrate a capacity to administer effectively a diver2 sified program of workforce investment activities (includ3 ing youth activities) and related assistance for eligible mi4 grant and seasonal farmworkers.

5 (c) PROGRAM PLAN.—

6 (1) IN GENERAL.—To be eligible to receive a

7 grant or enter into a contract under this section, an

8 entity described in subsection (b) shall submit to the

9 Secretary a plan that describes a 2-year strategy for

10 meeting the needs of eligible migrant and seasonal

11 farmworkers in the area to be served by such entity.

12 (2) ADMINISTRATION.—Grants and contracts

13 awarded under this section shall be centrally admin14 istered by the Department of Labor and competi15 tively awarded by the Secretary using procedures

16 consistent with standard Federal Government com17 petitive procurement policies.

18 (3) COMPETITION.—

19 (A) IN GENERAL.—The competition for

20 grants made and contracts entered into under

21 this section shall be conducted every 2 years.

22 (B) EXCEPTION.—Notwithstanding sub23 paragraph (A), if a recipient of such a grant or

24 contract has performed satisfactorily under the

25 terms of the grant agreement or contract, the
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1 Secretary may waive the requirement for such

2 competition for such recipient upon receipt

3 from the recipient of a satisfactory 2-year plan

4 described in paragraph (1) for the succeeding

5 2-year grant or contract period.

6 (4) CONTENTS.—Such plan shall—

7 (A) identify the education and employment

8 needs of the eligible migrant and seasonal farm9 workers to be served and the manner in which

10 the workforce investment activities (including

11 youth activities) to be carried out will strength12 en the ability of the eligible migrant and sea13 sonal farmworkers to obtain or retain

14 unsubsidized employment or stabilize their

15 unsubsidized employment;

16 (B) describe the related assistance, includ17 ing supportive services, to be provided and the

18 manner in which such assistance and services

19 are to be integrated and coordinated with other

20 appropriate services; and

21 (C) describe, after consultation with the

22 Secretary, the performance measures to be used

23 to assess the performance of such entity in car24 rying out the activities assisted under this sec25 tion.
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1 (d) AUTHORIZED ACTIVITIES.—Funds made avail2 able under this section shall be used to carry out workforce

3 investment activities (including youth activities) and pro4 vide related assistance for eligible migrant and seasonal

5 farmworkers, which may include employment, training,

6 educational assistance, literacy assistance, an English lan7 guage program, worker safety training, supportive serv8 ices, dropout prevention activities, follow-up services for

9 those individuals placed in employment, self-employment

10 and related business enterprise development education as

11 needed by eligible migrant and seasonal farmworkers and

12 identified pursuant to the plan required by subsection (c),

13 and technical assistance relating to capacity enhancement

14 in such areas as management information technology.

15 (e) CONSULTATION WITH GOVERNORS AND LOCAL

16 PARTNERSHIPS.—In making grants and entering into con17 tracts under this section, the Secretary shall consult with

18 the Governors and local partnerships of the States in

19 which the eligible entities will carry out the activities de20 scribed in subsection (d).

21 (f) REGULATIONS.—The Secretary shall consult with

22 eligible migrant and seasonal farmworkers groups and

23 States in establishing regulations to carry out this section,

24 including performance measures for eligible entities that
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1 take into account the economic circumstances and demo2 graphics of eligible migrant and seasonal farmworkers.

3 (g) DEFINITIONS.—In this section:

4 (1) DISADVANTAGED.—The term ‘‘disadvan5 taged’’, used with respect to a farmworker, means a

6 farmworker whose income, for 12 consecutive

7 months out of the 24 months prior to application for

8 the program involved, does not exceed the higher

9 of—

10 (A) the poverty line (as defined in section

11 334(a)(2)(B)) for an equivalent period; or

12 (B) 70 percent of the lower living standard

13 income level, for an equivalent period.

14 (2) ELIGIBLE MIGRANT AND SEASONAL FARM15 WORKERS.—The term ‘‘eligible migrant and seasonal

16 farmworkers’’ means individuals who are eligible mi17 grant farmworkers or are eligible seasonal farm18 workers.

19 (3) ELIGIBLE MIGRANT FARMWORKER.—The

20 term ‘‘eligible migrant farmworker’’ means—

21 (A) an eligible seasonal farmworker de22 scribed in paragraph (4)(A) whose agricultural

23 labor requires travel to a job site such that the

24 farmworker is unable to return to a permanent

25 place of residence within the same day; and
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1 (B) a dependent of the farmworker de2 scribed in subparagraph (A).

3 (4) ELIGIBLE SEASONAL FARMWORKER.—The

4 term ‘‘eligible seasonal farmworker’’ means—

5 (A) a disadvantaged person who, for 12

6 consecutive months out of the 24 months prior

7 to application for the program involved, has

8 been primarily employed in agricultural labor

9 that is characterized by chronic unemployment

10 or underemployment; and

11 (B) a dependent of the person described in

12 subparagraph (A).

13 SEC. 363. VETERANS’ WORKFORCE INVESTMENT PRO14 GRAMS.

15 (a) AUTHORIZATION.—

16 (1) IN GENERAL.—The Secretary shall conduct,

17 directly or through grants or contracts, programs to

18 meet the needs for workforce investment activities of

19 service-connected disabled veterans, Vietnam era vet20 erans, and recently separated veterans.

21 (2) CONDUCT OF PROGRAMS.—Programs sup22 ported under this section may be conducted through

23 grants and contracts with public agencies and pri24 vate nonprofit organizations, including recipients of

25 Federal assistance under other provisions of this
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1 title, that the Secretary determines have an under2 standing of the unemployment problems of veterans

3 described in paragraph (1), familiarity with the area

4 to be served, and the capability to administer effec5 tively a program of workforce investment activities

6 for such veterans.

7 (3) REQUIRED ACTIVITIES.—Programs sup8 ported under this section shall include—

9 (A) activities to enhance services provided

10 to veterans by other providers of workforce in11 vestment activities funded by Federal, State, or

12 local government;

13 (B) activities to provide workforce invest14 ment activities to such veterans that are not

15 adequately provided by other public providers of

16 workforce investment activities; and

17 (C) outreach and public information activi18 ties to develop and promote maximum job and

19 job training opportunities for such veterans and

20 to inform such veterans about employment, job

21 training, on-the-job training and educational

22 opportunities under this title, under title 38,

23 United States Code, and under other provisions

24 of law, which activities shall be coordinated with
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1 activities provided through the one-stop cus2 tomer service centers.

3 (b) ADMINISTRATION OF PROGRAMS.—

4 (1) IN GENERAL.—The Secretary shall admin5 ister programs supported under this section through

6 the Assistant Secretary for Veterans’ Employment

7 and Training.

8 (2) ADDITIONAL RESPONSIBILITIES.—In carry9 ing out responsibilities under this section, the Assist10 ant Secretary for Veterans’ Employment and Train11 ing shall—

12 (A) be responsible for the awarding of

13 grants and contracts and the distribution of

14 funds under this section and for the establish15 ment of appropriate fiscal controls, accountabil16 ity, and program performance measures for re17 cipients of grants and contracts under this sec18 tion; and

19 (B) consult with the Secretary of Veterans

20 Affairs and take steps to ensure that programs

21 supported under this section are coordinated, to

22 the maximum extent feasible, with related pro23 grams and activities conducted under title 38,

24 United States Code, including programs and ac25 tivities conducted under subchapter II of chap-
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1 ter 77 of such title, chapters 30, 31, 32, and

2 34 of such title, and sections 1712A, 1720A,

3 3687, and 4103A of such title.

4 SEC. 364. YOUTH OPPORTUNITY GRANTS.

5 (a) GRANTS.—

6 (1) IN GENERAL.—Using funds made available

7 under section 302(b)(3)(A), the Secretary shall

8 make grants to eligible local partnerships to provide

9 activities described in subsection (b) for youth to in10 crease the long-term employment of eligible youth

11 who live in empowerment zones, enterprise commu12 nities, and high poverty areas and who seek assist13 ance.

14 (2) GRANT PERIOD.—The Secretary may make

15 a grant under this section for a 1-year period, and

16 may renew the grant for each of the 4 succeeding

17 years.

18 (3) GRANT AWARDS.—The minimum amount

19 that may be made available to a grant recipient for

20 the first year of a grant made under this section

21 shall be $10,000,000.

22 (b) USE OF FUNDS.—

23 (1) IN GENERAL.—A local partnership that re24 ceives a grant under this section shall use the funds

25 made available through the grant to provide activi-
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1 ties that meet the requirements of section 316, ex2 cept as provided in paragraph (2), as well as youth

3 development activities such as activities relating to

4 leadership development, citizenship, and community

5 service, and recreation activities.

6 (2) INTENSIVE PLACEMENT AND FOLLOWUP

7 SERVICES.—In providing activities under this sec8 tion, a local partnership shall provide—

9 (A) intensive placement services; and

10 (B) followup services for not less than 24

11 months after the completion of participation in

12 the other activities described in this subsection,

13 as appropriate.

14 (c) ELIGIBLE LOCAL PARTNERSHIPS.—To be eligible

15 to receive a grant under this section, a local partnership—

16 (1) shall serve a community that—

17 (A) has a population of at least 50,000;

18 and

19 (B) has been designated as an

20 empowerment zone or an enterprise community

21 under section 1391 of the Internal Revenue

22 Code of 1986; or

23 (2) in a State without a zone or community de24 scribed in paragraph (1)(B), shall serve a commu-
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1 nity that has been designated as a high poverty area

2 by the Governor of the State.

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

4 under this section, a local partnership shall submit an ap5 plication to the Secretary at such time, in such manner,

6 and containing such information as the Secretary may re7 quire, including—

8 (1) a description of the activities that the local

9 partnership will provide under this section to youth

10 in the community described in subsection (c);

11 (2) a description of the performance measures

12 negotiated under subsection (e), and the manner in

13 which the local partnerships will carry out the activi14 ties to meet the performance measures;

15 (3) a description of the manner in which the ac16 tivities will be linked to activities described in section

17 316; and

18 (4) a description of the community support, in19 cluding financial support through leveraging addi20 tional public and private resources, for the activities.

21 (e) PERFORMANCE MEASURES.—

22 (1) IN GENERAL.—The Secretary shall nego23 tiate and reach agreement with the local partnership

24 on performance measures that will be used to evalu25 ate the performance of the local partnership in car-
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1 rying out the activities described in subsection (b).

2 Each local performance measure shall consist of an

3 indicator of performance referred to in paragraph

4 (2) or (3) of section 321(a), and a performance level

5 referred to in paragraph (2).

6 (2) PERFORMANCE LEVELS.—The Secretary

7 shall negotiate and reach agreement with the local

8 partnership regarding the levels of performance ex9 pected to be achieved for the local partnership on

10 the indicators of performance.

11 SEC. 365. INCENTIVE GRANTS.

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

13 to States that exceed—

14 (1) the State performance measures established

15 by the Secretary of Education under this Act; and

16 (2) the State performance measures established

17 under this title.

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

19 this section, the Secretary shall give priority to those

20 States submitting a State unified plan as described in sec21 tion 501 that is approved by the appropriate Secretaries

22 as described in such section.

23 (c) USE OF FUNDS.—A State that receives an incen24 tive grant under this section shall use the funds made
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1 available through the grant to carry out innovative pro2 grams as determined by the State.

3 SEC. 366. TECHNICAL ASSISTANCE.

4 (a) TRANSITION ASSISTANCE.—The Secretary shall

5 provide technical assistance to assist States in making

6 transitions from carrying out activities under provisions

7 described in section 391 to carrying out activities under

8 this title.

9 (b) PERFORMANCE IMPROVEMENT.—

10 (1) GENERAL ASSISTANCE.—

11 (A) AUTHORITY.—The Secretary—

12 (i) shall provide technical assistance

13 to States that do not meet a State per14 formance measure described in section

15 321(a) for a program year; and

16 (ii) may provide technical assistance

17 to other States, local areas, and grant re18 cipients under sections 361 and 362 to

19 promote the continuous improvement of

20 the programs and activities authorized

21 under this title.

22 (B) FORM OF ASSISTANCE.—In carrying

23 out this paragraph on behalf of a State, or

24 grant recipient under section 361 or 362, the

25 Secretary, after consultation with the State or
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1 grant recipient, may award grants and enter

2 into contracts and cooperative agreements.

3 (C) LIMITATION.—Grants or contracts

4 awarded under this paragraph that are for

5 amounts in excess of $50,000 shall only be

6 awarded on a competitive basis.

7 (2) DISLOCATED WORKER TECHNICAL ASSIST8 ANCE.—

9 (A) AUTHORITY.—Of the amounts avail10 able pursuant to section 302(a)(2), the Sec11 retary shall reserve not more than 5 percent of

12 such amounts to provide technical assistance to

13 States that do not meet the State performance

14 measures described in section 321(a) with re15 spect to employment and training activities for

16 dislocated workers. Using such reserved funds,

17 the Secretary may provide such assistance to

18 other States, local areas, business and labor or19 ganizations, and other entities involved in pro20 viding assistance to dislocated workers, to pro21 mote the continuous improvement of assistance

22 provided to dislocated workers, under this title.

23 (B) TRAINING.—Amounts reserved under

24 this paragraph may be used to provide for the

25 training of staff, including specialists, who pro-
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1 vide rapid response services. Such training shall

2 include instruction in proven methods of pro3 moting, establishing, and assisting labor-man4 agement committees. Such projects shall be ad5 ministered through the dislocated worker office

6 described in section 369(b).

7 SEC. 367. DEMONSTRATION, PILOT, MULTISERVICE, RE8 SEARCH, AND MULTISTATE PROJECTS.

9 (a) STRATEGIC PLAN.—

10 (1) IN GENERAL.—After consultation with

11 States, localities, and other interested parties, the

12 Secretary shall, every 2 years, publish in the Federal

13 Register, a plan that describes the demonstration

14 and pilot (including dislocated worker demonstration

15 and pilot), multiservice, research, and multistate

16 project priorities of the Department of Labor con17 cerning employment and training for the 5-year pe18 riod following the submission of the plan. Copies of

19 the plan shall be transmitted to the appropriate

20 committees of Congress.

21 (2) LIMITATION.—With respect to a plan pub22 lished under paragraph (1), the Secretary shall en23 sure that research projects (referred to in subsection

24 (d)) are considered for incorporation into the plan

25 only after projects referred to in subsections (b), (c),
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1 and (e) have been considered and incorporated into

2 the plan, and are funded only as funds remain to

3 permit the funding of such research projects.

4 (3) FACTORS.—The plan published under para5 graph (1) shall contain strategies to address national

6 employment and training problems and take into ac7 count factors such as—

8 (A) the availability of existing research (as

9 of the date of the publication);

10 (B) the need to ensure results that have

11 interstate validity;

12 (C) the benefits of economies of scale and

13 the efficiency of proposed projects; and

14 (D) the likelihood that the results of the

15 projects will be useful to policymakers and

16 stakeholders in addressing employment and

17 training problems.

18 (b) DEMONSTRATION AND PILOT PROJECTS.—

19 (1) IN GENERAL.—Under a plan published

20 under subsection (a), the Secretary shall, through

21 grants or contracts, carry out demonstration and

22 pilot projects for the purpose of developing and im23 plementing techniques and approaches, and dem24 onstrating the effectiveness of specialized methods,

25 in addressing employment and training needs. Such
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1 projects shall include the provision of direct services

2 to individuals to enhance employment opportunities

3 and an evaluation component.

4 (2) LIMITATIONS.—

5 (A) COMPETITIVE AWARDS.—Grants or

6 contracts awarded for carrying out demonstra7 tion and pilot projects under this subsection

8 shall be awarded only on a competitive basis,

9 except that a noncompetitive award may be

10 made in the case of a project that is funded

11 jointly with other public or private sector enti12 ties that provide a substantial portion of the

13 funding for the project.

14 (B) ELIGIBLE ENTITIES.—Grants or con15 tracts may be awarded under this subsection

16 only to—

17 (i) entities with recognized expertise

18 in—

19 (I) conducting national dem20 onstration projects;

21 (II) utilizing state-of-the-art

22 demonstration methods; and

23 (III) conducting evaluations of

24 employment and training projects; or
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1 (ii) State and local entities with exper2 tise in operating or overseeing employment

3 and training programs.

4 (C) TIME LIMITS.—The Secretary shall es5 tablish appropriate time limits for carrying out

6 demonstration and pilot projects under this

7 subsection.

8 (c) MULTISERVICE PROJECTS.—

9 (1) IN GENERAL.—Under a plan published

10 under subsection (a), the Secretary shall, through

11 grants or contracts, carry out multiservice

12 projects—

13 (A) that will test an array of approaches to

14 the provision of employment and training serv15 ices to a variety of targeted populations;

16 (B) in which the entity carrying out the

17 project, in conjunction with employers, orga18 nized labor, and other groups such as the dis19 ability community, will design, develop, and test

20 various training approaches in order to deter21 mine effective practices; and

22 (C) that will assist in the development and

23 replication of effective service delivery strategies

24 for targeted populations for the national em25 ployment and training system as a whole.
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1 (2) LIMITATIONS.—

2 (A) COMPETITIVE AWARDS.—Grants or

3 contracts awarded for carrying out multiservice

4 projects under this subsection shall be awarded

5 only on a competitive basis.

6 (B) TIME LIMITS.—A grant or contract

7 shall not be awarded under this subsection to

8 the same organization for more than 3 consecu9 tive years unless such grant or contract is com10 petitively reevaluated within such period.

11 (d) RESEARCH.—

12 (1) IN GENERAL.—Under a plan published

13 under subsection (a), the Secretary shall, through

14 grants or contracts, carry out research projects that

15 will contribute to the solution of employment and

16 training problems in the United States.

17 (2) LIMITATIONS.—

18 (A) COMPETITIVE AWARDS.—Grants or

19 contracts awarded for carrying out research

20 projects under this subsection in amounts that

21 exceed $50,000 shall be awarded only on a com22 petitive basis, except that a noncompetitive

23 award may be made in the case of a project

24 that is funded jointly with other public or pri-
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1 vate sector entities that provide a substantial

2 portion of the funding for the project.

3 (B) ELIGIBLE ENTITIES.—Grants or con4 tracts shall be awarded under this subsection

5 only to entities with nationally recognized ex6 pertise in the methods, techniques, and knowl7 edge of the social sciences.

8 (C) TIME LIMITS.—The Secretary shall es9 tablish appropriate time limits for the duration

10 of research projects funded under this sub11 section.

12 (e) MULTISTATE PROJECTS.—

13 (1) IN GENERAL.—

14 (A) AUTHORITY.—Under a plan published

15 under subsection (a), the Secretary may,

16 through grants or contracts, carry out

17 multistate projects that require demonstrated

18 expertise that is available at the national level

19 to effectively disseminate best practices and

20 models for implementing employment and train21 ing services, address the specialized employment

22 and training needs of particular service popu23 lations, or address industrywide skill shortages.

24 (B) DESIGN OF GRANTS.—Grants or con25 tracts awarded under this subsection shall be
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1 designed to obtain information relating to the

2 provision of services under different economic

3 conditions or to various demographic groups in

4 order to provide guidance at the national and

5 State levels about how best to administer spe6 cific employment and training services.

7 (2) LIMITATIONS.—

8 (A) COMPETITIVE AWARDS.—Grants or

9 contracts awarded for carrying out multistate

10 projects under this subsection shall be awarded

11 only on a competitive basis.

12 (B) TIME LIMITS.—A grant or contract

13 shall not be awarded under this subsection to

14 the same organization for more than 3 consecu15 tive years unless such grant or contract is com16 petitively reevaluated within such period.

17 (f) DISLOCATED WORKER PROJECTS.—Of the

18 amount made available pursuant to section 302(a)(2)(A)

19 for any program year, the Secretary shall use not more

20 than 5 percent of such amount to carry out demonstration

21 and pilot projects, multiservice projects, and multistate

22 projects, relating to the employment and training needs

23 of dislocated workers. Of the requirements of this section,

24 such projects shall be subject only to the provisions relat25 ing to review and evaluation of applications under sub-
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1 section (g). Such projects may include demonstration and

2 pilot projects relating to promoting self-employment, pro3 moting job creation, averting dislocations, assisting dis4 located farmers, assisting dislocated fishermen, and pro5 moting public works. Such projects shall be administered

6 through the dislocated worker office described in section

7 369(b).

8 (g) PEER REVIEW.—The Secretary shall utilize a

9 peer review process to—

10 (1) review and evaluate all applications for

11 grants and contracts in amounts that exceed

12 $100,000 that are submitted under this section; and

13 (2) review and designate exemplary and promis14 ing programs under this section.

15 SEC. 368. EVALUATIONS.

16 (a) PROGRAMS AND ACTIVITIES CARRIED UNDER

17 THIS TITLE.—For the purpose of improving the manage18 ment and effectiveness of programs and activities carried

19 out under this title, the Secretary shall provide for the

20 continuing evaluation of the programs and activities. Such

21 evaluations shall address—

22 (1) the general effectiveness of such programs

23 and activities in relation to their cost;

24 (2) the effectiveness of the performance meas25 ures relating to such programs and activities;
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1 (3) the effectiveness of the structure and mech2 anisms for delivery of services through such pro3 grams and activities;

4 (4) the impact of the programs and activities on

5 the community and participants involved;

6 (5) the impact of such programs and activities

7 on related programs and activities;

8 (6) the extent to which such programs and ac9 tivities meet the needs of various demographic

10 groups; and

11 (7) such other factors as may be appropriate.

12 (b) OTHER PROGRAMS AND ACTIVITIES.—The Sec13 retary may conduct evaluations of other federally funded

14 employment-related programs and activities, including

15 programs and activities administered under—

16 (1) the Wagner-Peyser Act (29 U.S.C. 49 et

17 seq.);

18 (2) the Act of August 16, 1937 (commonly

19 known as the ‘‘National Apprenticeship Act’’; 50

20 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.);

21 (3) the Older Americans Act of 1965 (42

22 U.S.C. 3001 et seq.);

23 (4) chapter 2 of title II of the Trade Act of

24 1974 (19 U.S.C. 2271 et seq.); and
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1 (5) the Federal unemployment insurance pro2 gram under titles III, IX, and XII of the Social Se3 curity Act (42 U.S.C. 501 et seq., 1101 et seq., and

4 1321 et seq.).

5 (c) TECHNIQUES.—Evaluations conducted under this

6 section shall utilize appropriate methodology and research

7 designs, which may include the use of control groups cho8 sen by scientific random assignment methodologies. Such

9 an evaluation shall be conducted by a person not imme10 diately involved in the administration of the program or

11 activity being evaluated.

12 (d) REPORTS.—The entity carrying out an evaluation

13 described in subsection (a), (b), or (c) shall prepare and

14 submit to the Secretary a draft report and a final report

15 containing the results of the evaluation.

16 (e) REPORTS TO CONGRESS.—Not later than 30 days

17 after the completion of such a draft report, the Secretary

18 shall transmit the draft report to the appropriate commit19 tees of Congress. Not later than 60 days after the comple20 tion of such a final report, the Secretary shall transmit

21 the final report to the appropriate committees of Con22 gress.

23 SEC. 369. NATIONAL EMERGENCY GRANTS.

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

25 award national emergency grants in a timely manner—
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1 (1) to an entity described in subsection (c) to

2 provide employment and training assistance to work3 ers affected by major economic dislocations, such as

4 plant closures, mass layoffs, or closures and realign5 ments of military installations;

6 (2) to provide assistance to the Governor of any

7 State within the boundaries of which is an area that

8 has suffered an emergency or a major disaster as

9 defined in paragraphs (1) and (2), respectively, of

10 section 102 of The Robert T. Stafford Disaster Re11 lief and Emergency Assistance Act (42 U.S.C. 5122

12 (1) and (2)) (referred to in this section as the ‘‘dis13 aster area’’) to provide disaster relief employment in

14 the area; and

15 (3) to provide additional assistance to a State

16 or local partnership for eligible dislocated workers in

17 a case in which the State or local partnership has

18 expended the funds provided under this section to

19 carry out activities described in paragraphs (1) and

20 (2) and can demonstrate the need for additional

21 funds to provide appropriate services for such work22 ers, in accordance with requirements prescribed by

23 the Secretary.

24 (b) ADMINISTRATION.—The Secretary shall designate

25 a dislocated worker office to coordinate the functions of
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1 the Secretary under this title relating to national emer2 gency grants.

3 (c) EMPLOYMENT AND TRAINING ASSISTANCE RE4 QUIREMENTS.—

5 (1) APPLICATION.—To be eligible to receive a

6 grant under subsection (a)(1), an entity shall submit

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

8 manner, and containing such information as the Sec9 retary may require.

10 (2) ELIGIBLE ENTITY.—In this subsection, the

11 term ‘‘entity’’ means a State, a local partnership, an

12 entity described in section 361(c), an employer or

13 employer association, a labor organization, and an

14 entity determined to be eligible by the Governor of

15 the State involved.

16 (d) DISASTER RELIEF EMPLOYMENT ASSISTANCE

17 REQUIREMENTS.—

18 (1) IN GENERAL.—Funds made available under

19 subsection (a)(2)—

20 (A) shall be used to provide disaster relief

21 employment on projects that provide food,

22 clothing, shelter, and other humanitarian assist23 ance for disaster victims, and projects regard24 ing demolition, cleaning, repair, renovation, and

25 reconstruction of damaged and destroyed struc-
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1 tures, facilities, and lands located within the

2 disaster area;

3 (B) may be expended through public and

4 private agencies and organizations engaged in

5 such projects; and

6 (C) may be expended to provide the serv7 ices authorized under section 315(c).

8 (2) ELIGIBILITY.—An individual shall be eligi9 ble to be offered disaster relief employment under

10 subsection (a)(2) if such individual is a dislocated

11 worker, is a long-term unemployed individual, or is

12 temporarily or permanently laid off as a consequence

13 of the disaster.

14 (3) LIMITATIONS ON DISASTER RELIEF EM15 PLOYMENT.—No individual shall be employed under

16 subsection (a)(2) for more than 6 months for work

17 related to recovery from a single natural disaster.

18 SEC. 370. AUTHORIZATION OF APPROPRIATIONS.

19 (a) IN GENERAL.—

20 (1) NATIVE AMERICAN PROGRAMS; MIGRANT

21 AND SEASONAL FARMWORKER PROGRAMS; VETER22 ANS’ EMPLOYMENT PROGRAMS.—Subject to sub23 section (b)(1), there are authorized to be appro24 priated to carry out sections 361 through 363 such
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1 sums as may be necessary for each of the fiscal

2 years 1999 through 2003.

3 (2) INCENTIVE GRANTS; TECHNICAL ASSIST4 ANCE; DEMONSTRATION AND PILOT PROJECTS;

5 EVALUATIONS.—Subject to subsection (b)(2), there

6 are authorized to be appropriated to carry out sec7 tions 365 through 368, such sums as may be nec8 essary for each of fiscal years 1999 through 2003.

9 (b) RESERVATIONS.—

10 (1) NATIVE AMERICAN PROGRAMS; MIGRANT

11 AND SEASONAL FARMWORKER PROGRAMS; VETER12 ANS’ EMPLOYMENT PROGRAMS.—Of the amount ap13 propriated under subsection (a)(1) for a fiscal year,

14 the Secretary shall—

15 (A) reserve not less than $55,000,000 for

16 carrying out section 361;

17 (B) reserve not less than $70,000,000 for

18 carrying out section 362; and

19 (C) reserve not less than $7,300,000 for

20 carrying out section 363.

21 (2) INCENTIVE GRANTS; TECHNICAL ASSIST22 ANCE; DEMONSTRATION AND PILOT PROJECTS;

23 EVALUATIONS.—Of the amount appropriated under

24 subsection (a)(2) for a fiscal year, the Secretary

25 shall—
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1 (A) reserve 36.8 percent for carrying out

2 section 365;

3 (B) reserve 25 percent for carrying out

4 section 366 (other than section 366(b)(2));

5 (C) reserve 24.2 percent of a carrying out

6 section 367 (other than 367(f)); and

7 (D) reserve 14 percent for carrying out

8 section 368.

9 Subtitle D—Administration

10 SEC. 371. REQUIREMENTS AND RESTRICTIONS.

11 (a) BENEFITS.—

12 (1) WAGES.—

13 (A) IN GENERAL.—Individuals in on-the14 job training or individuals employed in pro15 grams and activities carried out under this title

16 shall be compensated at the same rates, includ17 ing periodic increases, as trainees or employees

18 who are similarly situated in similar occupa19 tions by the same employer and who have simi20 lar skills. Such rates shall be in accordance with

21 applicable law, but in no event less than the

22 higher of the rate specified in section 6(a)(1) of

23 the Fair Labor Standards Act of 1938 (29

24 U.S.C. 206(a)(1)) or the applicable State or

25 local minimum wage law.
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1 (B) CONSTRUCTION.—The reference in

2 subparagraph (A) to section 6(a)(1) of the Fair

3 Labor Standards Act of 1938—

4 (i) shall be deemed to be a reference

5 to section 6(c) of that Act (29 U.S.C.

6 206(c)) for individuals in the Common7 wealth of Puerto Rico;

8 (ii) shall be deemed to be a reference

9 to section 6(a)(3) (29 U.S.C. 206(a)(3)) of

10 that Act for individuals in American

11 Samoa; and

12 (iii) shall not be applicable for individ13 uals in other territorial jurisdictions in

14 which section 6 of the Fair Labor Stand15 ards Act of 1938 (29 U.S.C. 206) does not

16 apply.

17 (2) TREATMENT OF ALLOWANCES, EARNINGS,

18 AND PAYMENTS.—Allowances, earnings, and pay19 ments to individuals participating in programs and

20 activities carried out under this title shall not be

21 considered to be income for the purposes of deter22 mining eligibility for, and the amount of income

23 transfer and in-kind aid furnished under, any Fed24 eral or federally assisted program based on need,
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1 other than as provided under the Social Security Act

2 (42 U.S.C. 301 et seq.).

3 (b) LABOR STANDARDS.—

4 (1) DISPLACEMENT.—

5 (A) PROHIBITION.—A participant in a pro6 gram or activity authorized under this title (re7 ferred to in this subsection as a ‘‘specified ac8 tivity’’) shall not displace (including a partial

9 displacement, such as a reduction in the hours

10 of nonovertime work, wages, or employment

11 benefits) any currently employed employee (as

12 of the date of the participation).

13 (B) PROHIBITION ON IMPAIRMENT OF

14 CONTRACTS.—A specified activity shall not im15 pair an existing contract for services or collec16 tive bargaining agreement, and no such activity

17 that would be inconsistent with the terms of a

18 collective bargaining agreement shall be under19 taken without the written concurrence of the

20 labor organization and employer concerned.

21 (2) OTHER PROHIBITIONS.—A participant in a

22 specified activity shall not be employed in a job—

23 (A) when any other individual is on layoff

24 from the same or any substantially equivalent

25 job with the participating employer;
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1 (B) when the employer has terminated the

2 employment of any regular employee or other3 wise reduced the workforce of the employer with

4 the intention of filling the vacancy so created

5 with the participant; or

6 (C) that is created in a promotional line

7 that will infringe in any way on the promotional

8 opportunities of currently employed individuals

9 (as of the date of the participation).

10 (3) HEALTH AND SAFETY.—Health and safety

11 standards established under Federal and State law

12 otherwise applicable to working conditions of em13 ployees shall be equally applicable to working condi14 tions of participants engaged in specified activities.

15 To the extent that a State workers’ compensation

16 law applies, workers’ compensation shall be provided

17 to participants on the same basis as the compensa18 tion is provided to other individuals in the State in

19 similar employment.

20 (4) EMPLOYMENT CONDITIONS.—Individuals in

21 on-the-job training or individuals employed in pro22 grams and activities carried out under this title,

23 shall be provided benefits and working conditions at

24 the same level and to the same extent as other train-
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1 ees or employees working a similar length of time

2 and doing the same type of work.

3 (5) OPPORTUNITY TO SUBMIT COMMENTS.—

4 Consistent with sections 303(d)(2) and 309(c), inter5 ested members of the public shall be provided an op6 portunity to submit comments with respect to pro7 grams and activities proposed to be funded under

8 subtitle A.

9 (c) GRIEVANCE PROCEDURE.—

10 (1) IN GENERAL.—Each State receiving an al11 lotment under section 302 and each grant recipient

12 under section 361 or 362 shall establish and main13 tain a procedure for grievances or complaints alleg14 ing violations of the requirements of this title from

15 participants and other interested or affected parties.

16 Such procedure shall include an opportunity for a

17 hearing and be completed within 60 days after the

18 date of the filing of the grievance or complaint.

19 (2) INVESTIGATION.—

20 (A) IN GENERAL.—The Secretary shall in21 vestigate an allegation of a violation described

22 in paragraph (1) if—

23 (i) a decision relating to such violation

24 has not been reached within 60 days after

25 the date of the filing of the grievance or
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1 complaint and either party appeals the de2 cision to the Secretary; or

3 (ii) a decision relating to such viola4 tion has been reached within 60 days after

5 the date of the filing and the party to

6 which such decision is adverse appeals the

7 decision to the Secretary.

8 (B) ADDITIONAL REQUIREMENT.—The

9 Secretary shall make a final determination re10 lating to an appeal made under subparagraph

11 (A) no later than 120 days after the date of

12 such appeal.

13 (3) REMEDIES.—Remedies that may be im14 posed under this subsection for a violation of any re15 quirement of this title shall be limited—

16 (A) to suspension or termination of pay17 ments under this title to a person that has vio18 lated any requirement of this title;

19 (B) to prohibition of placement of a partic20 ipant with an employer that has violated any

21 requirement of this title;

22 (C) where applicable, to reinstatement of

23 an employee, payment of lost wages and bene24 fits, and reestablishment of other relevant
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1 terms, conditions and privileges of employment;

2 and

3 (D) where appropriate, to other equitable

4 relief.

5 (4) CONSTRUCTION.—Nothing in paragraph (3)

6 shall be construed to prohibit a grievant or com7 plainant from pursuing a remedy authorized under

8 another Federal, State, or local law for a violation

9 of this title.

10 (d) RELOCATION.—

11 (1) PROHIBITION ON USE OF FUNDS TO EN12 COURAGE OR INDUCE RELOCATION.—No funds pro13 vided under this title shall be used, or proposed for

14 use, to encourage or induce the relocation of a busi15 ness or part of a business if such relocation would

16 result in a loss of employment for any employee of

17 such business at the original location and such origi18 nal location is within the United States.

19 (2) PROHIBITION ON USE OF FUNDS FOR CUS20 TOMIZED OR SKILL TRAINING AND RELATED ACTIVI21 TIES AFTER RELOCATION.—No funds provided

22 under this title for an employment and training ac23 tivity shall be used for customized or skill training,

24 on-the-job training, or company-specific assessments

25 of job applicants or employees, for any business or
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1 part of a business that has relocated, until the date

2 that is 120 days after the date on which such busi3 ness commences operations at the new location, if

4 the relocation of such business or part of a business

5 results in a loss of employment for any employee of

6 such business at the original location and such origi7 nal location is within the United States.

8 (3) REPAYMENT.—If the Secretary determines

9 that a violation of paragraph (1) or (2) has oc10 curred, the Secretary shall require the State that

11 has violated such paragraph to repay to the United

12 States an amount equal to the amount expended in

13 violation of such paragraph.

14 (e) LIMITATION ON USE OF FUNDS.—No funds avail15 able under this title shall be used for employment generat16 ing activities, economic development activities, activities

17 for the capitalization of businesses, investment in contract

18 bidding resource centers, or similar activities. No funds

19 available under subtitle A shall be used for foreign travel.

20 SEC. 372. PROMPT ALLOCATION OF FUNDS.

21 (a) ALLOTMENTS AND ALLOCATIONS BASED ON LAT22 EST AVAILABLE DATA.—All allotments and allocations

23 under section 302, 306, or 366 shall be based on the latest

24 available data and estimates satisfactory to the Secretary.

25 All data relating to disadvantaged adults, disadvantaged
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1 youth, and low-income individuals shall be based on the

2 most recent satisfactory data from the Bureau of the Cen3 sus.

4 (b) PUBLICATION IN FEDERAL REGISTER RELATING

5 TO FORMULA FUNDS.—Whenever the Secretary allots

6 funds required to be allotted under section 302 or 366,

7 the Secretary shall publish in a timely fashion in the Fed8 eral Register the proposed amount to be distributed to

9 each recipient of the funds.

10 (c) REQUIREMENT FOR FUNDS DISTRIBUTED BY

11 FORMULA.—All funds required to be allotted or allocated

12 under section 302, 306, or 366 shall be allotted or allo13 cated within 45 days after the date of enactment of the

14 Act appropriating the funds, except that, if such funds are

15 appropriated in advance as authorized by section 379(g),

16 such funds shall be allotted or allocated not later than the

17 March 31 preceding the program year for which such

18 funds are to be available for obligation.

19 (d) AVAILABILITY OF FUNDS.—Funds shall be made

20 available under section 306 to the chief elected official for

21 a local area not later than 30 days after the date the funds

22 are made available to the Governor involved, under section

23 302, or 7 days after the date the local plan for the area

24 is approved, whichever is later.
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1 SEC. 373. MONITORING.

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

3 monitor all recipients of financial assistance under this

4 title to determine whether the recipients are complying

5 with the provisions of this title, including the regulations

6 issued under this title.

7 (b) INVESTIGATIONS.—The Secretary may inves8 tigate any matter the Secretary determines to be necessary

9 to determine the compliance of the recipients with this

10 title, including the regulations issued under this title. The

11 investigations authorized by this subsection may include

12 examining records (including making certified copies of

13 the records), questioning employees, and entering any

14 premises or onto any site in which any part of a program

15 or activity of such a recipient is conducted or in which

16 any of the records of the recipient are kept.

17 (c) ADDITIONAL REQUIREMENT.—For the purpose of

18 any investigation or hearing conducted under this title by

19 the Secretary, the provisions of section 9 of the Federal

20 Trade Commission Act (15 U.S.C. 49) (relating to the at21 tendance of witnesses and the production of documents)

22 apply to the Secretary, in the same manner and to the

23 same extent as the provisions apply to the Federal Trade

24 Commission.
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1 SEC. 374. FISCAL CONTROLS; SANCTIONS.

2 (a) ESTABLISHMENT OF FISCAL CONTROLS BY

3 STATES.—

4 (1) IN GENERAL.—Each State shall establish

5 such fiscal control and fund accounting procedures

6 as may be necessary to assure the proper disbursal

7 of, and accounting for, Federal funds allocated to

8 local areas under subtitle A. Such procedures shall

9 ensure that all financial transactions carried out

10 under subtitle A are conducted and records main11 tained in accordance with generally accepted ac12 counting principles applicable in each State.

13 (2) REGULATIONS.—The Secretary shall pre14 scribe regulations establishing uniform cost prin15 ciples that are substantially equivalent to such prin16 ciples generally applicable to recipients of Federal

17 grant funds, and are consistent with appropriate cir18 culars of the Office of Management and Budget. At

19 a minimum, such regulations shall provide that—

20 (A) to be allowable, costs incurred under

21 this title shall—

22 (i) be necessary and reasonable for

23 proper and efficient administration of the

24 programs and activities carried out under

25 this title;
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1 (ii) except for the administrative

2 funds described in section 314(c)(2), be al3 locable to the programs and activities car4 ried out under this title; and

5 (iii) not be a general expense required

6 to carry out the overall responsibilities of

7 State or local governments; and

8 (B) procurement transactions between

9 local partnerships and such governments shall

10 be conducted only on a cost-reimbursable basis.

11 (3) PROCUREMENT STANDARDS.—Each Gov12 ernor, in accordance with minimum requirements es13 tablished by the Secretary (after consultation with

14 the Governors) in regulations, shall prescribe and

15 implement procurement standards to ensure fiscal

16 accountability and prevent fraud and abuse in pro17 grams and activities carried out under this title.

18 (4) MONITORING.—The Governor shall conduct

19 onsite monitoring of each local area within the State

20 to ensure compliance with the procurement stand21 ards prescribed pursuant to paragraph (3).

22 (5) ACTION BY GOVERNOR.—If the Governor

23 determines that a local area is not in compliance

24 with the procurement standards prescribed pursuant

25 to paragraph (3), the Governor shall—
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1 (A) require corrective action to secure

2 prompt compliance; and

3 (B) impose the sanctions provided under

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

5 required corrective action.

6 (6) CERTIFICATION.—The Governor shall, every

7 3 years, certify to the Secretary that—

8 (A) the State has implemented the pro9 curement standards prescribed under paragraph

10 (3);

11 (B) the State has monitored local areas to

12 ensure compliance with the procurement stand13 ards as required under paragraph (4); and

14 (C) the State has taken appropriate action

15 to secure compliance pursuant to paragraph

16 (5).

17 (7) ACTION BY THE SECRETARY.—If the Sec18 retary determines that the Governor has not fulfilled

19 the requirements of this subsection, the Secretary

20 shall—

21 (A) require corrective action to secure

22 prompt compliance; and

23 (B) impose the sanctions provided under

24 subsection (f) in the event of failure of the Gov-
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1 ernor to take the required appropriate action to

2 secure compliance.

3 (b) SUBSTANTIAL VIOLATION.—

4 (1) ACTION BY GOVERNOR.—If, as a result of

5 a financial or compliance audit or otherwise, the

6 Governor determines that there is a substantial vio7 lation of a specific provision of this title, including

8 regulations issued under this title, and corrective ac9 tion has not been taken, the Governor shall impose

10 a reorganization plan, which may include—

11 (A) decertifying the local partnership in12 volved in accordance with section 308(c)(3);

13 (B) prohibiting the use of providers who

14 have been identified as eligible providers of

15 workforce investment activities under chapter 3

16 of subtitle A;

17 (C) selecting an alternative entity to ad18 minister a program or activity for the local area

19 involved;

20 (D) merging the local area into 1 or more

21 other local areas; or

22 (E) making such other changes as the Sec23 retary or Governor determines to be necessary

24 to secure compliance.
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1 (2) APPEAL.—The action taken by the Gov2 ernor pursuant to paragraph (1) may be appealed to

3 the Secretary, who shall make a final decision on the

4 appeal not later than 60 days after the receipt of the

5 appeal.

6 (3) ACTION BY SECRETARY.—If the Governor

7 fails to take promptly the action required under

8 paragraph (1), the Secretary shall take such action.

9 (c) ACCESS BY COMPTROLLER GENERAL.—For the

10 purpose of evaluating and reviewing programs and activi11 ties established or provided for by this title, the Comptrol12 ler General shall have access to and the right to copy any

13 books, accounts, records, correspondence, or other docu14 ments pertinent to such programs and activities that are

15 in the possession, custody, or control of a State, a local

16 partnership, any recipient of funds under this title, or any

17 subgrantee or contractor of such a recipient.

18 (d) REPAYMENT OF CERTAIN AMOUNTS TO THE

19 UNITED STATES.—

20 (1) IN GENERAL.—Every recipient of funds

21 under this title shall repay to the United States

22 amounts found not to have been expended in accord23 ance with this title.

24 (2) OFFSET OF REPAYMENT.—If the Secretary

25 determines that a State has expended funds made
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1 available under this title in a manner contrary to the

2 requirements of this title, the Secretary may offset

3 repayment of such expenditures against any other

4 amount to which the State is or may be entitled, ex5 cept as provided under subsection (e)(1).

6 (3) REPAYMENT FROM DEDUCTION BY

7 STATE.—If the Secretary requires a State to repay

8 funds as a result of a determination that a localarea

9 of the State has expended funds contrary to the re10 quirements of this title, the Governor of the State

11 may use an amount deducted under paragraph (4)

12 to repay the funds, except as provided under sub13 section (e)(1).

14 (4) DEDUCTION BY STATE.—The Governor may

15 deduct an amount equal to the misexpenditure de16 scribed in paragraph (3) from subsequent program

17 year allocations to the local area from funds re18 served for the administrative costs of the local pro19 grams involved, as appropriate.

20 (5) LIMITATIONS.—A deduction made by a

21 State as described in paragraph (4) shall not be

22 made until such time as the Governor has taken ap23 propriate corrective action to ensure full compliance

24 within such local area with regard to appropriate ex25 penditures of funds under this title.
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1 (e) REPAYMENT OF AMOUNTS.—

2 (1) IN GENERAL.—Each recipient of funds

3 under this title shall be liable to repay the amounts

4 described in subsection (d)(1), from funds other

5 than funds received under this title, upon a deter6 mination by the Secretary that the misexpenditure

7 of funds was due to willful disregard of the require8 ments of this title, gross negligence, failure to ob9 serve accepted standards of administration, or a pat10 tern of misexpenditure as described in paragraphs

11 (2) and (3) of subsection (d). No such determination

12 shall be made under this subsection or subsection

13 (d) until notice and opportunity for a fair hearing

14 has been given to the recipient.

15 (2) FACTORS IN IMPOSING SANCTIONS.—In de16 termining whether to impose any sanction author17 ized by this section against a recipient for violations

18 by a subgrantee or contractor of such recipient

19 under this title (including the regulations issued

20 under this title), the Secretary shall first determine

21 whether such recipient has adequately demonstrated

22 that the recipient has—

23 (A) established and adhered to an appro24 priate system for the award and monitoring of

25 grants and contracts with subgrantees and con-
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•S 1186 RS

1 tractors that contains acceptable standards for

2 ensuring accountability;

3 (B) entered into a written grant agreement

4 or contract with such subgrantee or contractor

5 that established clear goals and obligations in

6 unambiguous terms;

7 (C) acted with due diligence to monitor the

8 implementation of the grant agreement or con9 tract, including the carrying out of the appro10 priate monitoring activities (including audits) at

11 reasonable intervals; and

12 (D) taken prompt and appropriate correc13 tive action upon becoming aware of any evi14 dence of a violation of this title, including regu15 lations issued under this title, by such sub16 grantee or contractor.

17 (3) WAIVER.—If the Secretary determines that

18 the recipient has demonstrated substantial compli19 ance with the requirements of paragraph (2), the

20 Secretary may waive the imposition of sanctions au21 thorized by this section upon such recipient. The

22 Secretary is authorized to impose any sanction con23 sistent with the provisions of this title and any ap24 plicable Federal or State law directly against any
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•S 1186 RS

1 subgrantee or contractor for violation of this title,

2 including regulations issued under this title.

3 (f) IMMEDIATE TERMINATION OR SUSPENSION OF

4 ASSISTANCE IN EMERGENCY SITUATIONS.—In emergency

5 situations, if the Secretary determines it is necessary to

6 protect the integrity of the funds or ensure the proper op7 eration of the program or activity involved, the Secretary

8 may immediately terminate or suspend financial assist9 ance, in whole or in part, to the recipient if the recipient

10 is given prompt notice and the opportunity for a subse11 quent hearing within 30 days after such termination or

12 suspension. The Secretary shall not delegate any of the

13 functions or authority specified in this subsection, other

14 than to an officer whose appointment is required to be

15 made by and with the advice and consent of the Senate.

16 (g) DISCRIMINATION AGAINST PARTICIPANTS.—If

17 the Secretary determines that any recipient of funds under

18 this title has discharged or in any other manner discrimi19 nated in violation of section 378 against, a participant or

20 any other individual in connection with the administration

21 of the program or activity involved, or any individual be22 cause such individual has filed any complaint or instituted

23 or caused to be instituted any proceeding under or related

24 to this title, or has testified or is about to testify in any

25 such proceeding or investigation under or related to this
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•S 1186 RS

1 title, or otherwise unlawfully denied to any individual a

2 benefit to which that individual is entitled under the provi3 sions of this title, including regulations issued under this

4 title, the Secretary shall, within 30 days after the date

5 of the determination, take such action or order such cor6 rective measures, as may be necessary, with respect to the

7 recipient or the aggrieved individual.

8 (h) REMEDIES.—The remedies described in this sec9 tion shall not be construed to be the exclusive remedies

10 available for violations described in this section.

11 SEC. 375. REPORTS; RECORDKEEPING; INVESTIGATIONS.

12 (a) REPORTS.—

13 (1) IN GENERAL.—Recipients of funds under

14 this title shall keep records that are sufficient to

15 permit the preparation of reports required by this

16 title and to permit the tracing of funds to a level of

17 expenditure adequate to ensure that the funds have

18 not been spent unlawfully.

19 (2) SUBMISSION TO THE SECRETARY.—Every

20 such recipient shall maintain such records and sub21 mit such reports, in such form and containing such

22 information, as the Secretary may require regarding

23 the performance of programs and activities carried

24 out under this title. Such records and reports shall

25 be submitted to the Secretary but shall not be re-
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•S 1186 RS

1 quired to be submitted more than once each quarter

2 unless specifically requested by Congress or a com3 mittee of Congress.

4 (3) MAINTENANCE OF STANDARDIZED

5 RECORDS.—In order to allow for the preparation of

6 the reports required under subsection (c), such re7 cipients shall maintain standardized records for all

8 individual participants and provide to the Secretary

9 a sufficient number of such records to provide for an

10 adequate analysis of the records.

11 (4) AVAILABILITY TO THE PUBLIC.—

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

13 subparagraph (B), records maintained by such

14 recipients pursuant to this subsection shall be

15 made available to the public upon request.

16 (B) EXCEPTION.—Subparagraph (A) shall

17 not apply to—

18 (i) information, the disclosure of

19 which would constitute a clearly unwar20 ranted invasion of personal privacy; and

21 (ii) trade secrets, or commercial or fi22 nancial information, that is obtained from

23 a person and privileged or confidential.

24 (C) FEES TO RECOVER COSTS.—Such re25 cipients may charge fees sufficient to recover
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•S 1186 RS

1 costs applicable to the processing of requests

2 for records under subparagraph (A).

3 (b) INVESTIGATIONS OF USE OF FUNDS.—

4 (1) IN GENERAL.—

5 (A) SECRETARY.—In order to evaluate

6 compliance with the provisions of this title, the

7 Secretary shall conduct, in several States, in

8 each fiscal year, investigations of the use of

9 funds received by recipients under this title.

10 (B) COMPTROLLER GENERAL OF THE

11 UNITED STATES.—In order to ensure compli12 ance with the provisions of this title, the Comp13 troller General of the United States may con14 duct investigations of the use of funds received

15 under this title by any recipient.

16 (2) PROHIBITION.—In conducting any inves17 tigation under this title, the Secretary or the Comp18 troller General of the United States may not request

19 the compilation of any information that the recipient

20 is not otherwise required to compile and that is not

21 readily available to such recipient.

22 (3) AUDITS.—

23 (A) IN GENERAL.—In carrying out any

24 audit under this title (other than any initial

25 audit survey or any audit investigating possible
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1 criminal or fraudulent conduct), either directly

2 or through grant or contract, the Secretary, the

3 Inspector General of the Department of Labor,

4 or the Comptroller General of the United States

5 shall furnish to the State, recipient, or other

6 entity to be audited, advance notification of the

7 overall objectives and purposes of the audit, and

8 any extensive recordkeeping or data require9 ments to be met, not later than 14 days (or as

10 soon as practicable), prior to the commence11 ment of the audit.

12 (B) NOTIFICATION REQUIREMENT.—If the

13 scope, objectives, or purposes of the audit

14 change substantially during the course of the

15 audit, the entity being audited shall be notified

16 of the change as soon as practicable.

17 (C) ADDITIONAL REQUIREMENT.—The re18 ports on the results of such audits shall cite the

19 law, regulation, policy, or other criteria applica20 ble to any finding contained in the reports.

21 (D) RULE OF CONSTRUCTION.—Nothing

22 contained in this title shall be construed so as

23 to be inconsistent with the Inspector General

24 Act of 1978 (5 U.S.C. App.) or government au-
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•S 1186 RS

1 diting standards issued by the Comptroller Gen2 eral of the United States.

3 (c) ACCESSIBILITY OF REPORTS.—Each State, each

4 local partnership, and each recipient (other than a sub5 recipient, subgrantee, or contractor of a recipient) receiv6 ing funds under this title shall—

7 (1) make readily accessible such reports con8 cerning its operations and expenditures as shall be

9 prescribed by the Secretary;

10 (2) prescribe and maintain comparable manage11 ment information systems, in accordance with guide12 lines that shall be prescribed by the Secretary, de13 signed to facilitate the uniform compilation, cross

14 tabulation, and analysis of programmatic, partici15 pant, and financial data, on statewide, local area,

16 and other appropriate bases, necessary for reporting,

17 monitoring, and evaluating purposes, including data

18 necessary to comply with section 378; and

19 (3) monitor the performance of providers in

20 complying with the terms of grants, contracts, or

21 other agreements made pursuant to this title.

22 (d) INFORMATION TO BE INCLUDED IN REPORTS.—

23 (1) IN GENERAL.—The reports required in sub24 section (c) shall include information regarding pro-
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1 grams and activities carried out under this title per2 taining to—

3 (A) the relevant demographic characteris4 tics (including race, ethnicity, sex, and age) and

5 other related information regarding partici6 pants;

7 (B) the programs and activities in which

8 participants are enrolled, and the length of time

9 that participants are engaged in such programs

10 and activities;

11 (C) outcomes of the programs and activi12 ties for participants, including the occupations

13 of participants, and placement for participants

14 in nontraditional employment;

15 (D) specified costs of the programs and ac16 tivities; and

17 (E) information necessary to prepare re18 ports to comply with section 378.

19 (2) ADDITIONAL REQUIREMENT.—The Sec20 retary shall ensure that all elements of the informa21 tion required for the reports described in paragraph

22 (1) are defined and reported uniformly.

23 (e) RETENTION OF RECORDS.—The Governor of a

24 State that receives funds under this title shall ensure that

25 requirements are established for retention of all records
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1 of the State pertinent to all grants awarded, and contracts

2 and agreements entered into, under this title, including

3 financial, statistical, property, and participant records and

4 supporting documentation. For funds allotted to a State

5 under this title for any program year, the State shall re6 tain the records for 2 subsequent program years. The

7 State shall retain records for nonexpendable property that

8 is used to carry out this title for a period of 3 years after

9 final disposition of the property.

10 (f) QUARTERLY FINANCIAL REPORTS.—

11 (1) IN GENERAL.—Each local partnership in

12 the State shall submit quarterly financial reports to

13 the Governor with respect to programs and activities

14 carried out under this title. Such reports shall in15 clude information identifying all program and activ16 ity costs by cost category in accordance with gen17 erally accepted accounting principles and by year of

18 the appropriation involved.

19 (2) ADDITIONAL REQUIREMENT.—Each State

20 shall submit to the Secretary, on a quarterly basis,

21 a summary of the reports submitted to the Governor

22 pursuant to paragraph (1).

23 (g) MAINTENANCE OF ADDITIONAL RECORDS.—

24 Each State and local partnership shall maintain records
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1 with respect to programs and activities carried out under

2 this title that identify—

3 (1) any income or profits earned, including such

4 income or profits earned by subrecipients; and

5 (2) any costs incurred (such as stand-in costs)

6 that are otherwise allowable except for funding limi7 tations.

8 (h) COST CATEGORIES.—In requiring entities to

9 maintain records of costs by category under this title, the

10 Secretary shall require only that the costs be categorized

11 as administrative or programmatic costs.

12 SEC. 376. ADMINISTRATIVE ADJUDICATION.

13 (a) IN GENERAL.—Whenever any applicant for finan14 cial assistance under this title is dissatisfied because the

15 Secretary has made a determination not to award financial

16 assistance in whole or in part to such applicant, the appli17 cant may request a hearing before an administrative law

18 judge of the Department of Labor. A similar hearing may

19 also be requested by any recipient for whom a corrective

20 action has been required or a sanction has been imposed

21 by the Secretary under section 374. Except to the extent

22 provided for in section 371(c) or 378, all other disputes

23 arising under this title relating to the manner in which

24 the recipient carries out a program or activity under this

25 title shall be adjudicated under grievance procedures es-
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1 tablished by the recipient or under applicable law other

2 than this title.

3 (b) APPEAL.—The decision of the administrative law

4 judge shall constitute final action by the Secretary unless,

5 within 20 days after receipt of the decision of the adminis6 trative law judge, a party dissatisfied with the decision or

7 any part of the decision has filed exceptions with the Sec8 retary specifically identifying the procedure, fact, law, or

9 policy to which exception is taken. Any exception not spe10 cifically urged shall be deemed to have been waived. After

11 the 20-day period the decision of the administrative law

12 judge shall become the final decision of the Secretary un13 less the Secretary, within 30 days after such filing, has

14 notified the parties that the case involved has been accept15 ed for review.

16 (c) TIME LIMIT.—Any case accepted for review by

17 the Secretary under subsection (b) shall be decided within

18 180 days after such acceptance. If the case is not decided

19 within the 180-day period, the decision of the administra20 tive law judge shall become the final decision of the Sec21 retary at the end of the 180-day period.

22 (d) ADDITIONAL REQUIREMENT.—The provisions of

23 section 377 shall apply to any final action of the Secretary

24 under this section.
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1 SEC. 377. JUDICIAL REVIEW.

2 (a) REVIEW.—

3 (1) PETITION.—With respect to any final order

4 by the Secretary under section 376 by which the

5 Secretary awards, declines to award, or only condi6 tionally awards, financial assistance under this title,

7 or any final order of the Secretary under section 376

8 with respect to a corrective action or sanction im9 posed under section 374, any party to a proceeding

10 which resulted in such final order may obtain review

11 of such final order in the United States Court of Ap12 peals having jurisdiction over the applicant or recipi13 ent of funds involved, by filing a review petition

14 within 30 days after the date of issuance of such

15 final order.

16 (2) ACTION ON PETITION.—The clerk of the

17 court shall transmit a copy of the review petition to

18 the Secretary who shall file the record on which the

19 final order was entered as provided in section 2112

20 of title 28, United States Code. The filing of a re21 view petition shall not stay the order of the Sec22 retary, unless the court orders a stay. Petitions filed

23 under this subsection shall be heard expeditiously, if

24 possible within 10 days after the date of filing of a

25 reply to the petition.
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1 (3) STANDARD AND SCOPE OF REVIEW.—No

2 objection to the order of the Secretary shall be con3 sidered by the court unless the objection was specifi4 cally urged, in a timely manner, before the Sec5 retary. The review shall be limited to questions of

6 law and the findings of fact of the Secretary shall

7 be conclusive if supported by substantial evidence.

8 (b) JUDGMENT.—The court shall have jurisdiction to

9 make and enter a decree affirming, modifying, or setting

10 aside the order of the Secretary in whole or in part. The

11 judgment of the court regarding the order shall be final,

12 subject to certiorari review by the Supreme Court as pro13 vided in section 1254(1) of title 28, United States Code.

14 SEC. 378. NONDISCRIMINATION.

15 (a) PROHIBITED DISCRIMINATION.—

16 (1) PROHIBITION ON DISCRIMINATION IN FED17 ERAL PROGRAMS AND ACTIVITIES.—For the purpose

18 of applying the prohibitions against discrimination

19 on the basis of age under the Age Discrimination

20 Act of 1975 (42 U.S.C. 6101 et seq.), on the basis

21 of disability under section 504 of the Rehabilitation

22 Act of 1973 (29 U.S.C. 794), on the basis of sex

23 under title IX of the Education Amendments of

24 1972 (20 U.S.C. 1681 et seq.), or on the basis of

25 race, color, or national origin under title VI of the
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1 Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.),

2 programs and activities funded in whole or in part

3 under this title shall be considered to be programs

4 and activities receiving Federal financial assistance,

5 and education programs and activities receiving Fed6 eral financial assistance.

7 (2) PROHIBITION OF DISCRIMINATION REGARD8 ING PARTICIPATION, BENEFITS, AND EMPLOY9 MENT.—No individual shall be excluded from par10 ticipation in, denied the benefits of, subjected to dis11 crimination under, or denied employment in the ad12 ministration of or in connection with, any such pro13 gram or activity because of race, color, religion, sex,

14 national origin, age, disability, or political affiliation

15 or belief.

16 (3) PROHIBITION ON ASSISTANCE FOR FACILI17 TIES FOR SECTARIAN INSTRUCTION OR RELIGIOUS

18 WORSHIP.—Participants shall not be employed under

19 this title to carry out the construction, operation, or

20 maintenance of any part of any facility that is used

21 or to be used for sectarian instruction or as a place

22 for religious worship.

23 (4) PROHIBITION ON DISCRIMINATION ON BASIS

24 OF PARTICIPANT STATUS.—No person may discrimi25 nate against an individual who is a participant in a
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1 program or activity that receives funds under this

2 title, with respect to the terms and conditions affect3 ing, or rights provided to, the individual, solely be4 cause of the status of the individual as a participant,

5 in carrying out any endeavor that involves—

6 (A) participants in programs and activities

7 that receive funding under this title; and

8 (B) persons who receive no assistance

9 under this title.

10 (5) PROHIBITION ON DISCRIMINATION AGAINST

11 CERTAIN NONCITIZENS.—Participation in programs

12 and activities or receiving funds under this title shall

13 be available to citizens and nationals of the United

14 States, lawfully admitted permanent resident aliens,

15 refugees, asylees, and parolees, other aliens lawfully

16 present in the United States, and other individuals

17 authorized by the Attorney General to work in the

18 United States.

19 (b) ACTION OF SECRETARY.—Whenever the Sec20 retary finds that a State or other recipient of funds under

21 this title has failed to comply with a provision of law re22 ferred to in subsection (a)(1), or with paragraph (2), (3),

23 (4), or (5) of subsection (a), including an applicable regu24 lation prescribed to carry out such provision or paragraph,

25 the Secretary shall notify such State or recipient and shall
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1 request that the State or recipient comply. If within a rea2 sonable period of time, not to exceed 60 days, the State

3 or recipient fails or refuses to comply, the Secretary

4 may—

5 (1) refer the matter to the Attorney General

6 with a recommendation that an appropriate civil ac7 tion be instituted;

8 (2) exercise the powers and functions provided

9 to the head of a Federal department or agency

10 under the Age Discrimination Act of 1975, title V

11 of the Rehabilitation Act of 1973 (29 U.S.C. 791 et

12 seq.), title IX of the Education Amendments of

13 1972, or title VI of the Civil Rights Act of 1964, as

14 may be applicable; or

15 (3) take such other action as may be provided

16 by law.

17 (c) ACTION OF ATTORNEY GENERAL.—When a mat18 ter is referred to the Attorney General pursuant to sub19 section (b)(1), or whenever the Attorney General has rea20 son to believe that a State or other recipient of funds

21 under this title is engaged in a pattern or practice of dis22 crimination in violation of a provision of law referred to

23 in subsection (a)(1) or in violation of paragraph (2), (3),

24 (4), or (5) of subsection (a), the Attorney General may

25 bring a civil action in any appropriate district court of the
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1 United States for such relief as may be appropriate, in2 cluding injunctive relief.

3 (d) JOB CORPS MEMBERS.—For purposes of this sec4 tion, Job Corps members shall be considered as the ulti5 mate beneficiaries of an education program or activity re6 ceiving Federal financial assistance.

7 SEC. 379. ADMINISTRATIVE PROVISIONS.

8 (a) IN GENERAL.—The Secretary may, in accordance

9 with chapter 5 of title 5, United States Code, prescribe

10 rules and regulations to carry out this title to the extent

11 necessary to implement, administer, and ensure compli12 ance with the requirements of this title. Such rules and

13 regulations may include provisions making adjustments

14 authorized by section 6504 of title 31, United States Code.

15 All such rules and regulations shall be published in the

16 Federal Register at least 30 days prior to their effective

17 dates. Copies of each such rule or regulation shall be

18 transmitted to the appropriate committees of Congress on

19 the date of such publication and shall contain, with respect

20 to each material provision of such rule or regulation, a

21 citation to the particular substantive section of law that

22 is the basis for the provision.

23 (b) ACQUISITION OF CERTAIN PROPERTY AND SERV24 ICES.—The Secretary is authorized, in carrying out this

25 title, to accept, purchase, or lease in the name of the De-
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1 partment of Labor, and employ or dispose of in further2 ance of the purposes of this title, any money or property,

3 real, personal, or mixed, tangible or intangible, received

4 by gift, devise, bequest, or otherwise, and to accept vol5 untary and uncompensated services notwithstanding the

6 provisions of section 1342 of title 31, United States Code.

7 (c) AUTHORITY TO ENTER INTO CERTAIN AGREE8 MENTS AND TO MAKE CERTAIN EXPENDITURES.—The

9 Secretary may make such grants, enter into such con10 tracts or agreements, establish such procedures, and make

11 such payments, in installments and in advance or by way

12 of reimbursement, or otherwise allocate or expend such

13 funds under this title, as may be necessary to carry out

14 this title, including making expenditures for construction,

15 repairs, and capital improvements, and including making

16 necessary adjustments in payments on account of over17 payments or underpayments.

18 (d) ANNUAL REPORT.—The Secretary shall prepare

19 and submit to Congress an annual report regarding the

20 programs and activities carried out under this title. The

21 Secretary shall include in such report—

22 (1) a summary of the achievements, failures,

23 and problems of the programs and activities in meet24 ing the objectives of this title;
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1 (2) a summary of major findings from research,

2 evaluations, pilot projects, and experiments con3 ducted under this title in the fiscal year prior to the

4 submission of the report;

5 (3) recommendations for modifications in the

6 programs and activities based on analysis of such

7 findings; and

8 (4) such other recommendations for legislative

9 or administrative action as the Secretary determines

10 to be appropriate.

11 (e) UTILIZATION OF SERVICES AND FACILITIES.—

12 The Secretary is authorized, in carrying out this title,

13 under the same procedures as are applicable under sub14 section (c) or to the extent permitted by law other than

15 this title, to accept and use the services and facilities of

16 departments, agencies, and establishments of the United

17 States. The Secretary is also authorized, in carrying out

18 this title, to accept and use the services and facilities of

19 the agencies of any State or political subdivision of a

20 State, with the consent of the State or political subdivi21 sion.

22 (f) OBLIGATIONAL AUTHORITY.—Notwithstanding

23 any other provision of this title, the Secretary shall have

24 no authority to enter into contracts, grant agreements, or

25 other financial assistance agreements under this title ex-
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1 cept to such extent and in such amounts as are provided

2 in advance in appropriations Acts.

3 (g) PROGRAM YEAR.—

4 (1) IN GENERAL.—Appropriations for any fiscal

5 year for programs and activities carried out under

6 this title shall be available for obligation only on the

7 basis of a program year. The program year shall

8 begin on July 1 in the fiscal year for which the ap9 propriation is made.

10 (2) AVAILABILITY.—Funds obligated for any

11 program year for a program or activity carried out

12 under this title may be expended by each State re13 ceiving such funds during that program year and the

14 2 succeeding program years. Funds received by local

15 areas from States under this title during a program

16 year may be expended during that program year and

17 the succeeding program year. No amount of the

18 funds described in this paragraph shall be

19 deobligated on account of a rate of expenditure that

20 is consistent with a State plan, an operating plan

21 described in section 341, or a plan, grant agreement,

22 contract, application, or other agreement described

23 in subtitle C, as appropriate.

24 (h) ENFORCEMENT OF MILITARY SELECTIVE SERV25 ICE ACT.—The Secretary shall ensure that each individual
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1 participating in any program or activity established under

2 this title, or receiving any assistance or benefit under this

3 title, has not violated section 3 of the Military Selective

4 Service Act (50 U.S.C. App. 453) by not presenting and

5 submitting to registration as required pursuant to such

6 section. The Director of the Selective Service System shall

7 cooperate with the Secretary to enable the Secretary to

8 carry out this subsection.

9 (i) WAIVERS.—

10 (1) SPECIAL RULE.—With respect to a State

11 that has been granted a waiver under the provisions

12 relating to training and employment services of the

13 Department of Labor in title I of the Departments

14 of Labor, Health and Human Services, and Edu15 cation, and Related Agencies Appropriations Act,

16 1997 (Public Law 104–208; 110 Stat. 3009–234),

17 the authority provided under such waiver shall con18 tinue in effect and apply, and include a waiver of the

19 related provisions of subtitle A and this subtitle, for

20 the duration of the initial waiver.

21 (2) GENERAL AUTHORITY.—Notwithstanding

22 any other provision of law, the Secretary may waive

23 for a State, or a local area in a State, pursuant to

24 a request submitted by the Governor of the State (in
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1 consultation with appropriate local elected officials)

2 that meets the requirements of paragraph (3)—

3 (A) any of the statutory or regulatory re4 quirements of subtitle A or this subtitle (except

5 for requirements relating to wage and labor

6 standards, worker rights, participation and pro7 tection of participants, grievance procedures

8 and judicial review, nondiscrimination, alloca9 tion of funds to local areas, eligibility of provid10 ers or participants, and the establishment and

11 functions of local areas); and

12 (B) any of the statutory or regulatory re13 quirements of sections 8 through 10 of the

14 Wagner-Peyser Act (29 U.S.C. 49g through

15 49i) (excluding requirements relating to the

16 provision of services to unemployment insurance

17 claimants (including veterans) but including re18 porting requirements relating to such provision

19 of services, and excluding requirements relating

20 to universal access to basic labor exchange serv21 ices without cost to jobseekers).

22 (3) REQUESTS.—A Governor requesting a waiv23 er under paragraph (2) shall submit a plan to the

24 Secretary to improve the statewide workforce invest25 ment system that—
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1 (A) identifies the statutory or regulatory

2 requirements that are requested to be waived

3 and the goals that the State or local area in the

4 State, as appropriate, intends to achieve as a

5 result of the waiver;

6 (B) describes the actions that the State or

7 local area, as appropriate, has undertaken to

8 remove State or local statutory or regulatory

9 barriers;

10 (C) describes the goals of the waiver and

11 the expected programmatic outcomes if the re12 quest is granted;

13 (D) describes the individuals impacted by

14 the waiver; and

15 (E) describes the process used to monitor

16 the progress in implementing such a waiver,

17 and the process by which notice and an oppor18 tunity to comment on such request has been

19 provided to the organizations identified in sec20 tion 308(b)(2).

21 (4) CONDITIONS.—Not later than 90 days after

22 the date of the original submission of a request for

23 a waiver under paragraph (2), the Secretary shall

24 provide a waiver under this subsection if and only to

25 the extent that—
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1 (A) the Secretary determines that the re2 quirements requested to be waived impede the

3 ability of the State or local area, as appro4 priate, to implement the plan described in para5 graph (3); and

6 (B) the State has executed a memorandum

7 of understanding with the Secretary requiring

8 such State to meet, or ensure that the local

9 area meets, agreed-upon outcomes and to im10 plement other appropriate measures to ensure

11 accountability.

12 SEC. 380. STATE LEGISLATIVE AUTHORITY.

13 (a) AUTHORITY OF STATE LEGISLATURE.—Nothing

14 in this title shall be interpreted to preclude the enactment

15 of State legislation providing for the implementation, con16 sistent with the provisions of this title, of the activities

17 assisted under this title. Any funds received by a State

18 under this title shall be subject to appropriation by the

19 State legislature, consistent with the terms and conditions

20 required under this title.

21 (b) INTERSTATE COMPACTS AND COOPERATIVE

22 AGREEMENTS.—In the event that compliance with provi23 sions of this title would be enhanced by compacts and co24 operative agreements between States, the consent of Con25 gress is given to States to enter into such compacts and
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1 agreements to facilitate such compliance, subject to the

2 approval of the Secretary.

3 Subtitle E—Repeals and

4 Conforming Amendments

5 SEC. 391. REPEALS.

6 (a) GENERAL IMMEDIATE REPEALS.—The following

7 provisions are repealed:

8 (1) Section 204 of the Immigration Reform and

9 Control Act of 1986 (8 U.S.C. 1255a note).

10 (2) Title II of Public Law 95–250 (92 Stat.

11 172).

12 (3) The Displaced Homemakers Self-Sufficiency

13 Assistance Act (29 U.S.C. 2301 et seq.).

14 (4) Section 211 of the Appalachian Regional

15 Development Act of 1965 (40 U.S.C. App. 211).

16 (5) Subtitle C of title VII of the Stewart B.

17 McKinney Homeless Assistance Act (42 U.S.C.

18 11441 et seq.), except section 738 of such title (42

19 U.S.C. 11448).

20 (6) Subchapter I of chapter 421 of title 49,

21 United States Code.

22 (b) SUBSEQUENT REPEALS.—The following provi23 sions are repealed:

24 (1) The Job Training Partnership Act (29

25 U.S.C. 1501 et seq.).
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1 (2) Title VII of the Stewart B. McKinney

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

3 except subtitle B and section 738 of such title (42

4 U.S.C. 11431 et seq. and 11448).

5 SEC. 392. CONFORMING AMENDMENTS.

6 (a) PREPARATION.—After consultation with the ap7 propriate committees of Congress and the Director of the

8 Office of Management and Budget, the Secretary shall

9 prepare recommended legislation containing technical and

10 conforming amendments to reflect the changes made by

11 this subtitle.

12 (b) SUBMISSION TO CONGRESS.—Not later than 6

13 months after the date of enactment of this Act, the Sec14 retary shall submit to Congress the recommended legisla15 tion referred to under paragraph (1).

16 SEC. 393. EFFECTIVE DATES.

17 (a) IMMEDIATE REPEALS.—The repeals made by sec18 tion 391(a) shall take effect on the date of the enactment

19 of this Act.

20 (b) SUBSEQUENT REPEALS.—The repeals made by

21 section 391(b) shall take effect on July 1, 1999.
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1 TITLE IV—WORKFORCE INVEST2 MENT-RELATED ACTIVITIES

3 Subtitle A—Wagner-Peyser Act

4 SEC. 401. DEFINITIONS.

5 Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a)

6 is amended—

7 (1) in paragraph (1)—

8 (A) by striking ‘‘or officials’’; and

9 (B) by striking ‘‘Job Training Partnership

10 Act’’ and inserting ‘‘Workforce Investment

11 Partnership Act of 1997’’;

12 (2) by striking paragraphs (2) and (4);

13 (3) by redesignating paragraphs (3) and (5) as

14 paragraphs (5) and (6), respectively;

15 (4) by inserting after paragraph (1) the follow16 ing:

17 ‘‘(2) the term ‘local workforce investment area’

18 means a local workforce investment area designated

19 under section 307 of the Workforce Investment

20 Partnership Act of 1997;

21 ‘‘(3) the term ‘local workforce investment part22 nership’ means a local workforce investment partner23 ship established under section 308 of the Workforce

24 Investment Partnership Act of 1997;
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1 ‘‘(4) the term ‘one-stop customer service sys2 tem’ means a one-stop customer service system es3 tablished under section 315(b) of the Workforce In4 vestment Partnership Act of 1997;’’; and

5 (5) in paragraph (5) (as redesignated in para6 graph (3)), by striking the semicolon and inserting

7 ‘‘; and’’.

8 SEC. 402. FUNCTIONS.

9 (a) IN GENERAL.—Section 3(a) of the Wagner10 Peyser Act (29 U.S.C. 49b(a)) is amended to read as fol11 lows:

12 ‘‘(a) The Secretary shall—

13 ‘‘(1) assist in the coordination and development

14 of a nationwide system of public labor exchange

15 services, provided as part of the one-stop customer

16 service systems of the States;

17 ‘‘(2) assist in the development of continuous

18 improvement models for such nationwide system that

19 ensure private sector satisfaction with the system

20 and meet the demands of jobseekers relating to the

21 system; and

22 ‘‘(3) ensure, for individuals otherwise eligible to

23 receive unemployment compensation, the provision of

24 reemployment services and other activities in which
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1 the individuals are required to participate to receive

2 the compensation.’’.

3 (b) CONFORMING AMENDMENTS.—Section 508(b)(1)

4 of the Unemployment Compensation Amendments of 1976

5 (42 U.S.C. 603a(b)(1)) is amended—

6 (1) by striking ‘‘the third sentence of section

7 3(a)’’ and inserting ‘‘section 3(b)’’; and

8 (2) by striking ‘‘49b(a)’’ and inserting

9 ‘‘49b(b))’’.

10 SEC. 403. DESIGNATION OF STATE AGENCIES.

11 Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c)

12 is amended—

13 (1) by striking ‘‘, through its legislature,’’ and

14 inserting ‘‘, pursuant to State statute,’’;

15 (2) by inserting after ‘‘the provisions of this Act

16 and’’ the following: ‘‘, in accordance with such State

17 statute, the Governor shall’’; and

18 (3) by striking ‘‘United States Employment

19 Service’’ and inserting ‘‘Secretary’’.

20 SEC. 404. APPROPRIATIONS.

21 Section 5(c) of the Wagner-Peyser Act (29 U.S.C.

22 49d(c)) is amended by striking paragraph (3).

23 SEC. 405. DISPOSITION OF ALLOTTED FUNDS.

24 Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f)

25 is amended—
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1 (1) in subsection (b)(2), by striking ‘‘private in2 dustry council’’ and inserting ‘‘local workforce in3 vestment partnership’’;

4 (2) in subsection (c)(2), by striking ‘‘any pro5 gram under’’ and all that follows and inserting ‘‘any

6 workforce investment activity carried out under the

7 Workforce Investment Partnership Act of 1997.’’;

8 (3) in subsection (d)—

9 (A) by striking ‘‘United States Employ10 ment Service’’ and inserting ‘‘Secretary’’; and

11 (B) by striking ‘‘Job Training Partnership

12 Act’’ and inserting ‘‘Workforce Investment

13 Partnership Act of 1997’’; and

14 (4) by adding at the end the following:

15 ‘‘(e) All job search, placement, recruitment, labor

16 market information, and other labor exchange services au17 thorized under subsection (a) shall be provided as part of

18 the one-stop customer service system established by the

19 State.’’.

20 SEC. 406. STATE PLANS.

21 Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g)

22 is amended—

23 (1) in subsection (a) to read as follows:

24 ‘‘(a) Any State desiring to receive assistance under

25 this Act shall submit to the Secretary, as part of the State
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1 plan submitted under section 304 of the Workforce Invest2 ment Partnership Act of 1997, detailed plans for carrying

3 out the provisions of this Act within such State.’’;

4 (2) by striking subsections (b), (c), and (e);

5 (3) by redesignating subsection (d) as sub6 section (b); and

7 (4) by adding at the end the following:

8 ‘‘(c) The part of the State plan described in sub9 section (a) shall include the information described in para10 graphs (8) and (16) of section 304(b) of the Workforce

11 Investment Partnership Act of 1997.’’.

12 SEC. 407. REPEAL OF FEDERAL ADVISORY COUNCIL.

13 Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j)

14 is hereby repealed.

15 SEC. 408. REGULATIONS.

16 Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k)

17 is amended by striking ‘‘The Director, with the approval

18 of the Secretary of Labor,’’ and inserting ‘‘The Sec19 retary’’.

20 SEC. 409. LABOR MARKET INFORMATION.

21 The Wagner-Peyser Act is amended—

22 (1) by redesignating section 15 (29 U.S.C. 49

23 note) as section 16; and

24 (2) by inserting after section 14 (29 U.S.C.

25 49l–1) the following:
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1 ‘‘SEC. 15. LABOR MARKET INFORMATION.

2 ‘‘(a) SYSTEM CONTENT.—

3 ‘‘(1) IN GENERAL.—The Secretary, in accord4 ance with the provisions of this section, shall oversee

5 the development, maintenance, and continuous im6 provement of a system of labor market information

7 that includes—

8 ‘‘(A) statistical data from cooperative sta9 tistical survey and projection programs and

10 data from administrative reporting systems

11 that, taken together, enumerate, estimate, and

12 project the employment opportunities at the na13 tional, State, and local levels in a timely man14 ner, including data on—

15 ‘‘(i) employment and unemployment

16 status of the national, State, and local

17 populations, as such data are developed by

18 the Bureau of Labor Statistics and other

19 sources;

20 ‘‘(ii) industrial distribution of occupa21 tions, as well as current and projected em22 ployment opportunities and skill trends by

23 occupation and industry, with particular

24 attention paid to State and local employ25 ment opportunities;
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1 ‘‘(iii) data on the incidence of, indus2 trial and geographical location of, and

3 number of workers displaced by, perma4 nent layoffs and plant closings; and

5 ‘‘(iv) employee information maintained

6 in a longitudinal manner and collected (as

7 of the date of enactment of the Workforce

8 Investment Partnership Act of 1997) by

9 States;

10 ‘‘(B) State and local employment informa11 tion, and other appropriate statistical data re12 lated to labor market dynamics (compiled for

13 States and localities with technical assistance

14 provided by the Secretary), which shall—

15 ‘‘(i) be current and comprehensive, as

16 of the date used;

17 ‘‘(ii) assist individuals to make in18 formed choices relating to employment and

19 training; and

20 ‘‘(iii) assist employers to locate, iden21 tify skill traits of, and train individuals

22 who are seeking employment and training;

23 ‘‘(C) technical standards (which the Sec24 retary shall make publicly available) for data

25 and information described in subparagraphs (A)
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1 and (B) that, at a minimum, meet the criteria

2 of chapter 35 of title 44, United States Code;

3 ‘‘(D) procedures to ensure compatibility

4 and additivity of the data and information de5 scribed in subparagraphs (A) and (B) from na6 tional, State, and local levels;

7 ‘‘(E) procedures to support standardization

8 and aggregation of data from administrative re9 porting systems described in subparagraph (A)

10 of employment-related programs;

11 ‘‘(F) analysis of data and information de12 scribed in subparagraphs (A) and (B) for uses

13 such as State and local policymaking;

14 ‘‘(G) wide dissemination of such data, in15 formation, and analysis, training for users of

16 the data, information, and analysis, and vol17 untary technical standards for dissemination

18 mechanisms; and

19 ‘‘(H) programs of—

20 ‘‘(i) research and demonstration; and

21 ‘‘(ii) technical assistance for States

22 and localities.

23 ‘‘(2) INFORMATION TO BE CONFIDENTIAL.—
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1 ‘‘(A) IN GENERAL.—No officer or em2 ployee of the Federal Government or agent of

3 the Federal Government may—

4 ‘‘(i) use any submission that is fur5 nished for exclusively statistical purposes

6 under the provisions of this section for any

7 purpose other than the statistical purposes

8 for which the submission is furnished;

9 ‘‘(ii) make any publication or media

10 transmittal of the data contained in the

11 submission described in clause (i) that per12 mits information concerning individual

13 subjects to be reasonably inferred by either

14 direct or indirect means; or

15 ‘‘(iii) permit anyone other than a

16 sworn officer, employee, or agent of any

17 Federal department or agency, or a con18 tractor (including an employee of a con19 tractor) of such department or agency, to

20 examine an individual submission described

21 in clause (i);

22 without the consent of the individual, agency, or

23 other person who is the subject of the submis24 sion or provides that submission.
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1 ‘‘(B) IMMUNITY FROM LEGAL PROCESS.—

2 Any submission (including any data derived

3 from the submission) that is collected and re4 tained by a Federal department or agency, or

5 an officer, employee, agent, or contractor of

6 such a department or agency, for exclusively

7 statistical purposes under this section shall be

8 immune from the legal process and shall not,

9 without the consent of the individual, agency, or

10 other person who is the subject of the submis11 sion or provides that submission, be admitted

12 as evidence or used for any purpose in any ac13 tion, suit, or other judicial or administrative

14 proceeding.

15 ‘‘(C) CONSTRUCTION.—Nothing in this

16 section shall be construed to provide immunity

17 from the legal process for such submission (in18 cluding any data derived from the submission)

19 if the submission is in the possession of any

20 person, agency, or entity other than the Federal

21 Government or an officer, employee, agent, or

22 contractor of the Federal Government, or if the

23 submission is independently collected, retained,

24 or produced for purposes other than the pur25 poses of this Act.
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1 ‘‘(b) SYSTEM RESPONSIBILITIES.—

2 ‘‘(1) IN GENERAL.—The labor market informa3 tion system shall be planned, administered, overseen,

4 and evaluated through a cooperative governance

5 structure involving the Federal Government and

6 States.

7 ‘‘(2) DUTIES.—The Secretary, with respect to

8 data collection, analysis, and dissemination of labor

9 market information for the system, shall carry out

10 the following duties:

11 ‘‘(A) Assign responsibilities within the De12 partment of Labor for elements of the system

13 described in subsection (a) to ensure that all

14 statistical and administrative data collected is

15 consistent with appropriate Bureau of Labor

16 Statistics standards and definitions.

17 ‘‘(B) Actively seek the cooperation of other

18 Federal agencies to establish and maintain

19 mechanisms for ensuring complementarity and

20 nonduplication in the development and oper21 ation of statistical and administrative data col22 lection activities.

23 ‘‘(C) Eliminate gaps and duplication in

24 statistical undertakings, with the systemization

25 of wage surveys as an early priority.
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1 ‘‘(D) In collaboration with the Bureau of

2 Labor Statistics and States, develop and main3 tain the elements of the system described in

4 subsection (a), including the development of

5 consistent definitions for use by the States in

6 collecting the data and information described in

7 subparagraphs (A) and (B), of subsection

8 (a)(1) and the development of the annual plan

9 under subsection (c).

10 ‘‘(E) Establish procedures for the system

11 to ensure that—

12 ‘‘(i) such data and information are

13 timely;

14 ‘‘(ii) administrative records for the

15 system are consistent in order to facilitate

16 aggregation of such data and information;

17 ‘‘(iii) paperwork and reporting for the

18 system are reduced to a minimum; and

19 ‘‘(iv) States and localities are fully in20 volved in the maintenance and continuous

21 improvement of the system at the State

22 and local levels.

23 ‘‘(c) ANNUAL PLAN.—The Secretary, with the assist24 ance of the States and the Bureau of Labor Statistics,

25 and with the assistance of other appropriate Federal agen-
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1 cies, shall prepare an annual plan which shall be the mech2 anism for achieving cooperative management of the na3 tionwide labor market information system described in

4 subsection (a) and the statewide labor market information

5 systems that comprise the nationwide system. The plan

6 shall—

7 ‘‘(1)(A) describe the elements of the system de8 scribed in subsection (a), including standards, defini9 tions, formats, collection methodologies, and other

10 necessary system elements, for use in collecting data

11 and information described in subparagraphs (A) and

12 (B) of subsection (a)(1); and

13 ‘‘(B) include assurances that—

14 ‘‘(i) the data will be timely and detailed;

15 ‘‘(ii) administrative records will be stand16 ardized to facilitate the aggregation of the data

17 from local areas to State and national levels

18 and to support the creation of new statistical

19 series from program records; and

20 ‘‘(iii) paperwork and reporting require21 ments for employers and individuals will be re22 duced;

23 ‘‘(2) include a report on the results of an an24 nual consumer satisfaction review concerning the

25 performance of the system, including the perform-
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1 ance of the system in addressing the needs of Con2 gress, States, localities, employers, jobseekers, and

3 other consumers;

4 ‘‘(3) evaluate the performance of the system

5 and recommend needed improvements, taking into

6 consideration the results of the consumer satisfac7 tion review, with particular attention paid to the im8 provements needed at the State and local levels;

9 ‘‘(4) describe annual priorities, and priorities

10 over 5 years, for the system;

11 ‘‘(5) describe current (as of the date of the sub12 mission of the plan) spending and spending needs to

13 carry out activities under this section, including the

14 costs to States and localities of meeting the require15 ments of subsection (d)(2); and

16 ‘‘(6) describe the involvement of States in the

17 development of the plan, through formal consulta18 tions conducted by the Secretary in cooperation with

19 representatives of the Governors of every State, and

20 with representatives of local partnerships, pursuant

21 to a process established by the Secretary in coopera22 tion with the States.

23 ‘‘(d) STATE RESPONSIBILITIES.—
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1 ‘‘(1) DESIGNATION OF STATE AGENCY.—In

2 order to receive Federal financial assistance under

3 this section, the Governor of a State—

4 ‘‘(A) shall designate a single State agency

5 to be responsible for the management of the

6 portions of the system described in subsection

7 (a) that comprise a statewide labor market in8 formation system; and

9 ‘‘(B) shall establish a process for the over10 sight of such system.

11 ‘‘(2) DUTIES.—In order to receive Federal fi12 nancial assistance under this section, the State agen13 cy shall—

14 ‘‘(A) consult with State and local employ15 ers, participants, and local partnerships about

16 the labor market relevance of the data to be col17 lected and disseminated through the statewide

18 labor market information system;

19 ‘‘(B) consult with State educational agen20 cies and local educational agencies concerning

21 providing labor market information in order to

22 meet the needs of secondary school and post23 secondary school students who seek such infor24 mation;
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1 ‘‘(C) collect and disseminate for the sys2 tem, on behalf of the State and localities in the

3 State, the information and data described in

4 subparagraphs (A) and (B) of subsection

5 (a)(1);

6 ‘‘(D) maintain and continuously improve

7 the statewide labor market information system

8 in accordance with this section;

9 ‘‘(E) perform contract and grant respon10 sibilities for data collection, analysis, and dis11 semination for such system;

12 ‘‘(F) conduct such other data collection,

13 analysis, and dissemination activities as will en14 sure an effective statewide labor market infor15 mation system;

16 ‘‘(G) actively seek the participation of

17 other State and local agencies in data collec18 tion, analysis, and dissemination activities in

19 order to ensure complementarity, compatibility,

20 and usefulness of data;

21 ‘‘(H) participate in the development of the

22 annual plan described in subsection (c); and

23 ‘‘(I) utilize the quarterly records described

24 in section 321(e)(1) and section 312 to assist
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1 the State and other States in measuring State

2 progress on State performance measures.

3 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in

4 this section shall be construed as limiting the ability

5 of a State agency to conduct additional data collec6 tion, analysis, and dissemination activities with

7 State funds or with Federal funds from sources

8 other than this section.

9 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There

10 are authorized to be appropriated to carry out this section

11 such sums as may be necessary for each of fiscal years

12 1999 through 2003.

13 ‘‘(f) DEFINITIONS.—In this section, the terms ‘local

14 area’ and ‘local partnership’ have the meanings given the

15 terms in section 2 of the Workforce Investment Partner16 ship Act of 1997.’’.

17 SEC. 410. TECHNICAL AMENDMENTS.

18 Sections 3(b), 6(b)(1), and 7(d) of the Wagner

19 Peyser Act (29 U.S.C. 49b(b), 49e(b)(1), and 49f(d)) are

20 amended by striking ‘‘Secretary of Labor’’ and inserting

21 ‘‘Secretary’’.
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1 Subtitle B—Linkages With Other

2 Programs

3 SEC. 421. TRADE ACT OF 1974.

4 Section 241 of the Trade Act of 1974 (19 U.S.C.

5 2313) is amended by adding at the end the following:

6 ‘‘(d) To be eligible to receive funds under this section,

7 a State shall submit to the Secretary an application that

8 includes the description and information described in

9 paragraphs (8) and (16) of section 304(b) of the

10 Workforce Investment Partnership Act of 1997.’’.

11 SEC. 422. NATIONAL APPRENTICESHIP ACT.

12 The Act of August 16, 1937 (commonly known as

13 the ‘‘National Apprenticeship Act’’; 50 Stat. 664, chapter

14 663; 29 U.S.C. 50 et seq.) is amended by inserting after

15 section 3 the following:

16 ‘‘SEC. 3A. COORDINATION AND NONDUPLICATION.

17 ‘‘In carrying out this Act, the Secretary of Labor

18 shall require that an appropriate administrative entity in

19 each State enter into an agreement with the Secretary re20 garding the implementation of this Act that includes the

21 description and information described in paragraphs (8)

22 and (16) of section 304(b) of the Workforce Investment

23 Partnership Act of 1997.’’.
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1 SEC. 423. VETERANS’ EMPLOYMENT PROGRAMS.

2 Chapter 41 of title 38, United States Code, is amend3 ed by adding at the end the following:

4 ‘‘§ 4110B. Coordination and nonduplication

5 ‘‘In carrying out this chapter, the Secretary shall re6 quire that an appropriate administrative entity in each

7 State enter into an agreement with the Secretary regard8 ing the implementation of this Act that includes the de9 scription and information described in paragraphs (8) and

10 (16) of section 304(b) of the Workforce Investment Part11 nership Act of 1997.’’.

12 SEC. 424. OLDER AMERICANS ACT OF 1965.

13 Section 502(b)(1) of the Older Americans Act of

14 1965 (42 U.S.C. 3056(b)(1)) is amended—

15 (1) in subparagraph (O), by striking ‘‘; and’’

16 and inserting a semicolon;

17 (2) in subparagraph (P), by striking the period

18 and inserting ‘‘; and’’; and

19 (3) by adding at the end the following subpara20 graph:

21 ‘‘(Q) will provide to the Secretary the descrip22 tion and information described in paragraphs (8)

23 and (16) of section 304(b) of the Workforce Invest24 ment Partnership Act of 1997.’’.
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1 TITLE V—GENERAL PROVISIONS

2 SEC. 501. STATE UNIFIED PLANS.

3 (a) PURPOSE.—The purpose of this section is to per4 mit and encourage the submission of State unified plans,

5 to assure coordination of and to avoid duplication between

6 the activities carried out through the one-stop customer

7 service systems.

8 (b) DEFINITIONS.—In this section:

9 (1) APPROPRIATE SECRETARY.—The term ‘‘ap10 propriate Secretary’’ means the head of the Federal

11 agency with authority to carry out a system pro12 gram.

13 (2) APPROPRIATE STATE AGENCY.—The term

14 ‘‘appropriate State agency’’—

15 (A) used with respect to a system program

16 authorized under title I or II, means an eligible

17 agency; and

18 (B) used with respect to another system

19 program, means a State agency with authority

20 to carry out the system program, as specified

21 by the Governor of the State.

22 (3) SYSTEM PROGRAM.—The term ‘‘system pro23 gram’’ means a program of activities, carried out

24 through the one-stop customer service system, that

25 are—
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1 (A) activities authorized under title I or II;

2 (B) workforce investment activities author3 ized under subtitle A of title III;

4 (C) other activities authorized under title

5 III;

6 (D) programs authorized under section

7 6(d) of the Food Stamp Act of 1977 (7 U.S.C.

8 2015(d));

9 (E) work programs authorized under sec10 tion 6(o) of the Food Stamp Act of 1977 (7

11 U.S.C. 2015(o));

12 (F) activities authorized under chapter 2

13 of title II of the Trade Act of 1974 (19 U.S.C.

14 2271 et seq.);

15 (G) programs authorized under the Wag16 ner-Peyser Act (29 U.S.C. 49 et seq.);

17 (H) activities carried out by the Bureau of

18 Apprenticeship and Training;

19 (I) programs authorized under title I of

20 the Rehabilitation Act of 1973 (29 U.S.C. 720

21 et seq.);

22 (J) activities authorized under chapter 41

23 of title 38, United States Code;

24 (K) programs authorized under State un25 employment compensation laws and the Federal
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1 unemployment insurance program under titles

2 III, IX, and XII of the Social Security Act (42

3 U.S.C. 501 et seq., 1101 et seq., and 1321 et

4 seq.).

5 (L) programs authorized under part A of

6 title IV of the Social Security Act (42 U.S.C.

7 601 et seq.);

8 (M) programs authorized under title V of

9 the Older Americans Act of 1965 (42 U.S.C.

10 3056 et seq.); or

11 (N) training activities carried out by the

12 Department of Housing and Urban Develop13 ment.

14 (c) STATE UNIFIED PLAN.—A State may develop

15 and submit to the appropriate Secretaries a State unified

16 plan for 2 or more of the system programs.

17 (d) CONTENTS.—

18 (1) PLANNING PROVISIONS.—

19 (A) IN GENERAL.—In a State that elects

20 to develop a State unified plan, the plan shall

21 contain planning provisions, which shall be de22 veloped in a manner that substantially reflects

23 the planning requirements of the provisions of

24 the Federal statutes authorizing the system

25 programs.
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1 (B) PLANNING REQUIREMENTS.—In sub2 paragraph (A), the term ‘‘planning require3 ments’’, used with respect to a system program,

4 means such requirements as the appropriate

5 Secretary shall by regulation specify for the sys6 tem program.

7 (2) INFORMATION PROVISIONS.—In addition to

8 the planning provisions required to be included pur9 suant to paragraph (1), the plan shall include the

10 following:

11 (A) A description of the process used for

12 developing the State unified plan.

13 (B) A description of the process used to

14 consult the chief elected officials in the State

15 about the State unified plan.

16 (C) A description of the accountability sys17 tem of the State for activities carried out

18 through the one-stop customer service system.

19 (D) A description of how the one-stop cus20 tomer service system will provide the services

21 identified in the State unified plan through

22 such system.

23 (E) An assurance that the funds appro24 priated under Federal law to carry out the ac25 tivities identified in the State unified plan will
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1 be used to supplement and not supplant other

2 Federal, State, and local public funds expended

3 to carry out the activities for eligible individ4 uals.

5 (e) DEVELOPMENT.—

6 (1) PLANNING PROVISIONS.—The provisions of

7 the plan described in subsection (d)(1) shall be de8 veloped by the statewide partnership. The portion of

9 the State unified plan relating to a system program

10 may be modified, as appropriate, with the agreement

11 of the Governor and the head of the appropriate

12 State agency with authority to carry out the system

13 program. The Governor and the head of the appro14 priate State agency shall have the final authority to

15 determine the content of the portion of the State

16 unified plan that relates to the system program.

17 (2) INFORMATION PROVISIONS.—The provisions

18 of the plan described in subsection (d)(2) shall be

19 developed by the statewide partnership, which shall

20 have the final authority to determine the content of

21 the provisions.

22 (f) SUBMISSION.—After the heads of the appropriate

23 State agencies approve the portions of the State unified

24 plan that relate to their system programs, the State uni-
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1 fied plan shall be submitted to the appropriate Secretaries

2 by—

3 (1) the Governor; and

4 (2) an eligible agency, in the case of a plan con5 taining a portion relating to the system program of

6 the eligible agency.

7 (g) APPROVAL BY THE APPROPRIATE SECRETAR8 IES.—

9 (1) JURISDICTION.—Each of the appropriate

10 Secretaries shall have the authority to approve the

11 portion of the State unified plan relating to the sys12 tem program for which the Secretary has authority.

13 On the approval of the Secretary, the portion of the

14 plan relating to the system program shall be imple15 mented by the State pursuant to the State unified

16 plan.

17 (2) APPROVAL.—A portion of a State unified

18 plan submitted to an appropriate Secretary under

19 this section shall be considered to be approved by

20 the appropriate Secretary at the end of the 60-day

21 period beginning on the day the appropriate Sec22 retary receives the portion, unless the Secretary

23 makes a written determination, during the 60-day

24 period, that the portion does not substantially reflect
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1 the planning requirements of the appropriate Fed2 eral statutes authorizing the system programs.

3 SEC. 502. TRANSITION PROVISIONS.

4 (a) IN GENERAL.—The Secretary of Education or the

5 Secretary of Labor, as appropriate, shall take such steps

6 as such Secretary determines to be appropriate to provide

7 for the orderly transition to the authority of this Act from

8 any authority under provisions of law to be repealed under

9 subtitle E of title I, subtitle B of title II, or subtitle E

10 of title III, or any related authority.

11 (b) EXTENDED TRANSITION PERIOD.—

12 (1) IN GENERAL.—If, on or before July 1,

13 1999, a State has enacted a State statute that pro14 vides for the establishment or conduct of 3 or more

15 of the programs, projects, or activities described in

16 subparagraphs (A) through (E) of paragraph (2),

17 the State shall not be required to comply with provi18 sions of this Act that conflict the provisions of with

19 such State statute relating to such programs,

20 projects, or activities for the period ending 3 years

21 after the effective date specified in section 503(a).

22 After such 3-year period, the Secretary of Education

23 or the Secretary of Labor, as appropriate, shall

24 allow a State to continue operating under such State
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1 statute if the State is meeting the State performance

2 measures of the State.

3 (2) PROGRAMS, PROJECTS, AND ACTIVITIES DE4 SCRIBED.—The programs, projects, and activities

5 described in this paragraph are the following:

6 (A) Establishment of statewide partner7 ships or substate partnerships, including local

8 and regional partnerships.

9 (B) Reorganization or consolidation of

10 State agencies with responsibility for workforce

11 investment activities.

12 (C) Reorganization or consolidation of

13 workforce investment activities.

14 (D) Restructuring of local delivery systems

15 for workforce investment activities.

16 (E) Development or restructuring of State

17 accountability or oversight systems for

18 workforce investment systems to focus on per19 formance.

20 SEC. 503. EFFECTIVE DATE.

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

22 this Act, this Act takes effect on July 1, 1999.

23 (b) EARLY IMPLEMENTATION.—At the option of a

24 State, the Governor of the State and the chief official of

25 the eligible agencies in the State may use funds made
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1 available under a provision of law described in section

2 502(a), or any related authority to implement this Act at

3 any time prior to July 1, 1999.

4 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

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

8 follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

TITLE I—VOCATIONAL, TECHNOLOGICAL, AND TECH-PREP

EDUCATION

Sec. 101. Short title.

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.
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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.

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.
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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

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.
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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.

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.
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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—

9 (A) who have attained 16 years of age or

10 who are beyond the age of compulsory school at11 tendance under State law;

12 (B) who are not enrolled in secondary

13 school; and

14 (C) who—

15 (i) lack sufficient mastery of basic edu16 cational skills to enable the individuals to

17 function effectively in society;

18 (ii) do not possess a secondary school

19 diploma or its recognized equivalent; or

20 (iii) are unable to speak, read, or write

21 the English language.
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1 (3) AREA VOCATIONAL EDUCATION SCHOOL.—

2 The term ‘‘area vocational education school’’ means—

3 (A) a specialized public secondary school

4 used exclusively or principally for the provision

5 of vocational education for individuals who seek

6 to study and prepare for entering the labor mar7 ket;

8 (B) the department of a public secondary

9 school exclusively or principally used for provid10 ing vocational education in not fewer than 5 dif11 ferent occupational fields to individuals who are

12 available for study in preparation for entering

13 the labor market;

14 (C) a technical institute or vocational school

15 used exclusively or principally for the provision

16 of vocational education to individuals who have

17 completed or left public secondary school and

18 who seek to study and prepare for entering the

19 labor market, if the institute or school admits as

20 regular students both individuals who have com21 pleted public secondary school and individuals

22 who have left public secondary school; or

23 (D) the department or division of a junior

24 college, community college, or university operat25 ing under the policies of the eligible agency and
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•S 1186 RS

1 that provides vocational education in not fewer

2 than 5 different occupational fields leading to

3 immediate employment but not necessarily lead4 ing to a baccalaureate degree, if the department

5 or division admits as regular students both indi6 viduals who have completed public secondary

7 school and individuals who have left public sec8 ondary school.

9 (4) CHIEF ELECTED OFFICIAL.—The term ‘‘chief

10 elected official’’ means the chief elected executive offi11 cer of a unit of general local government in a local

12 area.

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

14 except as provided in section 302, the term ‘‘dis15 advantaged adult’’ means an adult who is a low-in16 come individual.

17 (6) DISLOCATED WORKER.—The term ‘‘dislocated

18 worker’’ means an individual who—

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

20 who has received a notice of termination or lay21 off, from employment;

22 (ii)(I) is eligible for or has exhausted enti23 tlement to unemployment compensation; or

24 (II) has been employed for a duration suffi25 cient to demonstrate, to the appropriate entity at
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•S 1186 RS

1 a one-stop customer service center, attachment to

2 the workforce, but is not eligible for unemploy3 ment compensation due to insufficient earnings

4 or having performed services for an employer

5 that were not covered under a State unemploy6 ment compensation law; and

7 (iii) is unlikely to return to a previous in8 dustry or occupation;

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

10 has received a notice of termination or layoff,

11 from employment as a result of any permanent

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

13 facility, or enterprise;

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

15 employer has made a general announcement that

16 such facility will close within 180 days; or

17 (iii) for purposes of eligibility to receive

18 services under title III other than training serv19 ices described in section 315(c)(3), intensive serv20 ices, or supportive services, is employed at a fa21 cility at which the employer has made a general

22 announcement that such facility will close;

23 (C) was self-employed (including employ24 ment as a farmer, a rancher, or a fisherman) but

25 is unemployed as a result of general economic
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•S 1186 RS

1 conditions in the community in which the indi2 vidual resides or because of natural disasters; or

3 (D) is a displaced homemaker.

4 (7) DISPLACED HOMEMAKER.—The term ‘‘dis5 placed homemaker’’ means an individual who has

6 been providing unpaid services to family members in

7 the home and who—

8 (A) has been dependent on the income of an9 other family member but is no longer supported

10 by that income; and

11 (B) is unemployed or underemployed and is

12 experiencing difficulty in obtaining or upgrad13 ing employment.

14 (8) ECONOMIC DEVELOPMENT AGENCIES.—The

15 term ‘‘economic development agencies’’ includes local

16 planning and zoning commissions or boards, commu17 nity development agencies, and other local agencies

18 and institutions responsible for regulating, promot19 ing, or assisting in local economic development.

20 (9) EDUCATIONAL SERVICE AGENCY.—The term

21 ‘‘educational service agency’’ means a regional public

22 multiservice agency authorized by State statute to de23 velop and manage a service or program, and provide

24 the service or program to a local educational agency.
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1 (10) ELEMENTARY SCHOOL; LOCAL EDUCATIONAL

2 AGENCY.—The terms ‘‘elementary school’’ and ‘‘local

3 educational agency’’ have the meanings given the

4 terms in section 14101 of the Elementary and Sec5 ondary Education Act of 1965 (20 U.S.C. 8801).

6 (11) ELIGIBLE AGENCY.—The term ‘‘eligible

7 agency’’ means—

8 (A) in the case of vocational education ac9 tivities or requirements described in title I—

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

11 a State or an outlying area responsible for

12 administering or setting policy for voca13 tional education in the State or outlying

14 area, respectively, pursuant to the law of

15 the State or outlying area, respectively; or

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

17 is responsible for administering or setting

18 such policy pursuant to the law of the State

19 or outlying area, the individual, entity, or

20 agency in a State or outlying area, respec21 tively, responsible for administering or set22 ting policy for vocational education in the

23 State or outlying area, respectively, on the

24 date of enactment of the Workforce Invest25 ment Partnership Act of 1997; and
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•S 1186 RS

1 (B) in the case of adult education and lit2 eracy activities or requirements described in title

3 II—

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

5 a State or an outlying area responsible for

6 administering or setting policy for adult

7 education and literacy in the State or out8 lying area, respectively, pursuant to the law

9 of the State or outlying area, respectively;

10 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 State

14 or outlying area, the individual, entity, or

15 agency in a State or outlying area, respec16 tively, responsible for administering or set17 ting policy for adult education and literacy

18 in the State or outlying area, respectively,

19 on the date of enactment of the Workforce

20 Investment Partnership Act of 1997.

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

22 term ‘‘eligible institution’’ means—

23 (A) an institution of higher education;

24 (B) a local educational agency providing

25 education at the postsecondary level;
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1 (C) an area vocational education school

2 providing education at the postsecondary level;

3 (D) a postsecondary educational institution

4 controlled by the Bureau of Indian Affairs or op5 erated by or on behalf of any Indian tribe that

6 is eligible to contract with the Secretary of the

7 Interior for the administration of programs

8 under the Indian Self-Determination Act or the

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

10 452 et seq.); and

11 (E) a consortium of 2 or more of the enti12 ties described in subparagraphs (A) through (D).

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

14 provider’’—

15 (A) in title II, means—

16 (i) a local educational agency;

17 (ii) a community-based organization;

18 (iii) an institution of higher education;

19 (iv) a public or private nonprofit

20 agency;

21 (v) a consortium of such agencies, or22 ganizations, or institutions; or

23 (vi) a library; and

24 (B) in title III, used with respect to—
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•S 1186 RS

1 (i) training services (other than on-the2 job training), means a provider who is

3 identified in accordance with section 312;

4 (ii) youth activities, means a provider

5 who is awarded a grant in accordance with

6 section 313; or

7 (iii) other workforce investment activi8 ties, means a public or private entity se9 lected to be responsible for such activities, in

10 accordance with subtitle A of title III, such

11 as a one-stop customer service center opera12 tor designated or certified under section

13 311.

14 (14) EMPLOYMENT AND TRAINING ACTIVITY.—

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

16 an activity described in section 314(b)(1) or sub17 section (c)(1) or (d) of section 315, carried out for an

18 adult or dislocated worker.

19 (15) ENGLISH LITERACY PROGRAM.—The term

20 ‘‘English literacy program’’ means a program of in21 struction designed to help individuals of limited Eng22 lish proficiency achieve competence in the English

23 language.

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

25 the chief executive officer of a State.
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•S 1186 RS

1 (17) INDIVIDUAL WITH A DISABILITY.—

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

3 with a disability’’ means an individual with

4 any disability (as defined in section 3 of the

5 Americans with Disabilities Act of 1990 (42

6 U.S.C. 12102)).

7 (B) INDIVIDUALS WITH DISABILITIES.—The

8 term ‘‘individuals with disabilities’’ means more

9 than 1 individual with a disability.

10 (18) INDIVIDUAL OF LIMITED ENGLISH PRO11 FICIENCY.—The term ‘‘individual of limited English

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

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

14 or understanding the English language, and—

15 (A) whose native language is a language

16 other than English; or

17 (B) who lives in a family or community en18 vironment where a language other than English

19 is the dominant language.

20 (19) INSTITUTION OF HIGHER EDUCATION.—Ex21 cept for purposes of subtitle B of title I, the term ‘‘in22 stitution of higher education’’ has the meaning given

23 the term in section 1201(a) of the Higher Education

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

25 (20) LITERACY.—
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•S 1186 RS

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

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

3 speak in English, compute, and solve problems,

4 at levels of proficiency necessary to function on

5 the job and in society.

6 (B) WORKPLACE LITERACY PROGRAM.—The

7 term ‘‘workplace literacy program’’ means a pro8 gram of literacy activities that is offered in the

9 workplace for the purpose of improving the pro10 ductivity of the workforce through the improve11 ment of literacy skills.

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

13 III, the term ‘‘local area’’ means a local workforce in14 vestment area designated under section 307.

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

16 term ‘‘local partnership’’ means a local workforce in17 vestment partnership established under section 308(a).

18 (23) LOCAL PERFORMANCE MEASURE.—The term

19 ‘‘local performance measure’’ means a performance

20 measure established under section 321(b).

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

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

23 means an individual who—

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

25 that receives, cash payments under a Federal,
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•S 1186 RS

1 State, or local income-based public assistance

2 program;

3 (B) received an income, or is a member of

4 a family that received a total family income, for

5 the 6-month period prior to application for the

6 program involved (exclusive of unemployment

7 compensation, child support payments, payments

8 described in subparagraph (A), and old-age and

9 survivors insurance benefits received under sec10 tion 202 of the Social Security Act (42 U.S.C.

11 402)) that, in relation to family size, does not

12 exceed the higher of—

13 (i) the poverty line, for an equivalent

14 period; or

15 (ii) 70 percent of the lower living

16 standard income level, for an equivalent pe17 riod;

18 (C) is a member of a household that receives

19 (or has been determined within the 6-month pe20 riod prior to application for the program in21 volved to be eligible to receive) food stamps pur22 suant to the Food Stamp Act of 1977 (7 U.S.C.

23 2011 et seq.);

24 (D) qualifies as a homeless individual, as

25 defined in subsections (a) and (c) of section 103
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•S 1186 RS

1 of the Stewart B. McKinney Homeless Assistance

2 Act (42 U.S.C. 11302);

3 (E) is a foster child on behalf of whom

4 State or local government payments are made; or

5 (F) in cases permitted by regulations of the

6 Secretary of Labor, is an individual with a dis7 ability whose own income meets the requirements

8 of a program described in subparagraph (A) or

9 of subparagraph (B), but who is a member of a

10 family whose income does not meet such require11 ments.

12 (25) LOWER LIVING STANDARD INCOME LEVEL.—

13 The term ‘‘lower living standard income level’’ means

14 that income level (adjusted for regional, metropolitan,

15 urban, and rural differences and family size) deter16 mined annually by the Secretary of Labor based on

17 the most recent lower living family budget issued by

18 the Secretary of Labor.

19 (26) NONTRADITIONAL EMPLOYMENT.—In titles I

20 and III, the term ‘‘nontraditional employment’’ refers

21 to occupations or fields of work for which individuals

22 from one gender comprise less than 25 percent of the

23 individuals employed in each such occupation or field

24 of work.
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•S 1186 RS

1 (27) ON-THE-JOB TRAINING.—The term ‘‘on-the2 job training’’ means training in the public or private

3 sector that is provided to a paid participant while

4 engaged in productive work in a job that—

5 (A) provides knowledge or skills essential to

6 the full and adequate performance of the job;

7 (B) provides reimbursement to employers of

8 up to 50 percent of the wage rate of the partici9 pant, for the extraordinary costs of providing the

10 training and additional supervision related to

11 the training; and

12 (C) is limited in duration as appropriate to

13 the occupation for which the participant is being

14 trained.

15 (28) OUT-OF-SCHOOL YOUTH.—The term ‘‘out-of16 school youth’’ means—

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

18 (B) a youth who has received a secondary

19 school diploma or its equivalent but is basic lit20 eracy skills deficient, unemployed, or under21 employed.

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

23 area’’ means the United States Virgin Islands, Guam,

24 American Samoa, the Commonwealth of the Northern

25 Mariana Islands, the Republic of the Marshall Is-
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•S 1186 RS

1 lands, the Federated States of Micronesia, and the Re2 public of Palau.

3 (30) PARTICIPANT.—The term ‘‘participant’’,

4 used with respect to an activity carried out under

5 title III, means an individual participating in the

6 activity.

7 (31) POSTSECONDARY EDUCATIONAL INSTITU8 TION.—The term ‘‘postsecondary educational institu9 tion’’ means—

10 (A) an institution of higher education that

11 provides not less than a 2-year program of in12 struction that is acceptable for credit toward a

13 bachelor’s degree;

14 (B) a tribally controlled community college;

15 or

16 (C) a nonprofit educational institution of17 fering certificate or apprenticeship programs at

18 the postsecondary level.

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

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

21 Management and Budget, and revised annually in ac22 cordance with section 673(2) of the Community Serv23 ices Block Grant Act (42 U.S.C. 9902(2))) applicable

24 to a family of the size involved.
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1 (33) PUBLIC ASSISTANCE.—In title III, the term

2 ‘‘public assistance’’ means Federal, State, or local

3 government cash payments for which eligibility is de4 termined by a needs or income test.

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

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

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

8 State, with funds provided by the State under section

9 306(a)(2), in the case of a permanent closure or mass

10 layoff at a plant, facility, or enterprise, or a natural

11 or other disaster, that results in mass job dislocation,

12 in order to assist dislocated workers in obtaining re13 employment as soon as possible, with services includ14 ing—

15 (A) the establishment of onsite contact with

16 employers and employee representatives—

17 (i) immediately after the State is noti18 fied of a current or projected permanent clo19 sure or mass layoff; or

20 (ii) in the case of a disaster, imme21 diately after the State is made aware of

22 mass job dislocation as a result of such dis23 aster;

24 (B) the provision of information and access

25 to available employment and training activities;
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•S 1186 RS

1 (C) assistance in establishing a labor-man2 agement committee, voluntarily agreed to by

3 labor and management, with the ability to devise

4 and implement a strategy for assessing the em5 ployment and training needs of dislocated work6 ers and obtaining services to meet such needs;

7 (D) the provision of emergency assistance

8 adapted to the particular closure, layoff, or dis9 aster; and

10 (E) the provision of assistance to the local

11 community in developing a coordinated response

12 and in obtaining access to State economic devel13 opment assistance.

14 (35) SCHOOL DROPOUT.—The term ‘‘school drop15 out’’ means an individual who is no longer attending

16 any school and who has not received a secondary

17 school diploma or its recognized equivalent.

18 (36) SECONDARY SCHOOL.—The term ‘‘secondary

19 school’’ has the meaning given the term in section

20 14101 of the Elementary and Secondary Education

21 Act of 1965 (20 U.S.C. 8801), except that the term

22 does not include education below grade 9.

23 (37) SECRETARY.—
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•S 1186 RS

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

2 the term ‘‘Secretary’’ means the Secretary of

3 Education.

4 (B) TITLE III.—In title III, the term ‘‘Sec5 retary’’ means the Secretary of Labor.

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

7 the several States of the United States, the District of

8 Columbia, and the Commonwealth of Puerto Rico.

9 (39) STATE EDUCATIONAL AGENCY.—The term

10 ‘‘State educational agency’’ means the State board of

11 education or other agency or officer primarily respon12 sible for the State supervision of public elementary or

13 secondary schools, or, if there is no such agency or of14 ficer, an agency or officer designated by the Governor

15 or by State law.

16 (40) STATE PERFORMANCE MEASURE.—In title

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

18 performance measure established under section

19 321(a).

20 (41) STATEWIDE PARTNERSHIP.—The term

21 ‘‘statewide partnership’’ means a partnership estab22 lished under section 303.

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

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

25 transportation, child care, dependent care, housing,
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•S 1186 RS

1 and needs-based payments, that are necessary to en2 able an individual to participate in employment and

3 training activities or youth activities.

4 (43) TRIBALLY CONTROLLED COMMUNITY COL5 LEGE.—The term ‘‘tribally controlled community col6 lege’’ means an institution that receives assistance

7 under the Tribally Controlled Community College As8 sistance Act of 1978 (25 U.S.C. 1801 et seq.) or the

9 Navajo Community College Act (25 U.S.C. 640a et

10 seq.).

11 (44) UNIT OF GENERAL LOCAL GOVERNMENT.—

12 In title III, the term ‘‘unit of general local govern13 ment’’ means any general purpose political subdivi14 sion of a State that has the power to levy taxes and

15 spend funds, as well as general corporate and police

16 powers.

17 (45) VETERAN; RELATED DEFINITIONS.—

18 (A) VETERAN.—The term ‘‘veteran’’ means

19 an individual who served in the active military,

20 naval, or air service, and who was discharged or

21 released from such service under conditions other

22 than dishonorable.

23 (B) DISABLED VETERAN.—The term ‘‘dis24 abled veteran’’ means—
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1 (i) a veteran who is entitled to com2 pensation under laws administered by the

3 Secretary of Veterans Affairs; or

4 (ii) an individual who was discharged

5 or released from active duty because of serv6 ice-connected disability.

7 (C) RECENTLY SEPARATED VETERAN.—The

8 term ‘‘recently separated veteran’’ means any

9 veteran who applies for participation under title

10 III within 48 months of the discharge or release

11 from active military, naval, or air service.

12 (D) VIETNAM ERA VETERAN.—The term

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

14 part of whose active military, naval, or air serv15 ice occurred between August 5, 1964, and May 7,

16 1975.

17 (46) VOCATIONAL EDUCATION.—The term ‘‘voca18 tional education’’ means organized education that—

19 (A) offers a sequence of courses that provides

20 individuals with the academic knowledge and

21 skills the individuals need to prepare for further

22 education and for careers in current or emerging

23 employment sectors; and

24 (B) includes competency-based applied

25 learning that contributes to the academic knowl-
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•S 1186 RS

1 edge, higher-order reasoning and problem-solving

2 skills, work attitudes, general employability

3 skills, and occupation-specific skills, of an indi4 vidual.

5 (47) VOCATIONAL REHABILITATION PROGRAM.—

6 The term ‘‘vocational rehabilitation program’’ means

7 a program assisted under title I of the Rehabilitation

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

9 (48) WORKFORCE INVESTMENT ACTIVITY.—The

10 term ‘‘workforce investment activity’’ means an em11 ployment and training activity, a youth activity, and

12 an activity described in section 314.

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

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

15 ‘‘youth’’ means an individual who—

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

17 than age 21;

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

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

20 following:

21 (i) Deficient in basic literacy skills.

22 (ii) A school dropout.

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

24 child.

25 (iv) Pregnant or a parent.
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1 (v) An offender.

2 (vi) An individual who requires addi3 tional assistance to complete an educational

4 program, or to secure and hold 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;
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1 (D) communications, problem-solving, team2 work, 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 are

11 used outside the classroom;

12 (3)(A) many high school graduates in the United

13 States do not complete a rigorous course of study that

14 prepares the graduates for completing a 2-year or 4-

15 year college degree or for entering high-skill, high16 wage careers;

17 (B) adult students are an increasingly diverse

18 group and often enter postsecondary education unpre19 pared 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
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•S 1186 RS

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 Ap11 plied Technology Education Act (20 U.S.C. 2301 et

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

13 date of enactment of this Act) have assisted many stu14 dents in obtaining technical, academic, and employ15 ability 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
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•S 1186 RS

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 the

7 United States more competitive in the world economy by

8 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 localities

13 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 and

17 postsecondary education for participating vocational

18 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 assistance,
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•S 1186 RS

1 that will improve vocational education programs,

2 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; and

8 (2) to mandate that any individual participate

9 in a vocational education program under this title.

10 Subtitle A—Vocational Education

11 CHAPTER 1—FEDERAL PROVISIONS

12 SEC. 111. RESERVATIONS AND STATE ALLOTMENT.

13 (a) RESERVATIONS AND STATE ALLOTMENT.—

14 (1) RESERVATIONS.—From the sum appro15 priated under section 171 for each fiscal year, the

16 Secretary shall reserve—

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

18 (B) 1.75 percent to carry out sections 114

19 and 115, of which—

20 (i) 1.25 percent of the sum shall be

21 available to carry out section 114(b);

22 (ii) 0.25 percent of the sum shall be

23 available to carry out section 114(c); and

24 (iii) 0.25 percent of the sum shall be

25 available to carry out section 115; and
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•S 1186 RS

1 (C) 1.3 percent of the sum shall be used to

2 carry out sections 116, 163, 164, 165, and 166,

3 of which not less than 0.65 percent of the sum

4 shall be available to carry out section 116.

5 (2) STATE ALLOTMENT FORMULA.—Subject to

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

7 sums appropriated under section 171 and not re8 served under paragraph (1) for a fiscal year, the Sec9 retary shall allot to a State for the fiscal year—

10 (A) an amount that bears the same ratio to

11 50 percent of the sums being allotted as the prod12 uct of the population aged 15 to 19 inclusive, in

13 the State in the fiscal year preceding the fiscal

14 year for which the determination is made and

15 the State’s allotment ratio bears to the sum of

16 the corresponding products for all the States;

17 (B) an amount that bears the same ratio to

18 20 percent of the sums being allotted as the prod19 uct of the population aged 20 to 24, inclusive, in

20 the State in the fiscal year preceding the fiscal

21 year for which the determination is made and

22 the State’s allotment ratio bears to the sum of

23 the corresponding products for all the States;

24 (C) an amount that bears the same ratio to

25 15 percent of the sums being allotted as the prod-
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•S 1186 RS

1 uct of the population aged 25 to 65, inclusive, in

2 the State in the fiscal year preceding the fiscal

3 year for which the determination is made and

4 the State’s allotment ratio bears to the sum of

5 the corresponding products for all the States; and

6 (D) an amount that bears the same ratio to

7 15 percent of the sums being allotted as the

8 amounts allotted to the State under subpara9 graphs (A), (B), and (C) for such years bears to

10 the sum of the amounts allotted to all the States

11 under subparagraphs (A), (B), and (C) for such

12 year.

13 (3) MINIMUM ALLOTMENT.—

14 (A) IN GENERAL.—Notwithstanding any

15 other provision of law and subject to subpara16 graphs (B) and (C), and paragraph (4), no State

17 shall receive for a fiscal year under this subsection less than 1 18 ⁄2 of 1 percent of the amount

19 appropriated under section 171 and not reserved

20 under paragraph (1) for such fiscal year.

21 Amounts necessary for increasing such payments

22 to States to comply with the preceding sentence

23 shall be obtained by ratably reducing the

24 amounts to be paid to other States.
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1 (B) REQUIREMENT.—Due to the applica2 tion of subparagraph (A), for any fiscal year, no

3 State shall receive more than 150 percent of the

4 amount the State received under this subsection

5 for the preceding fiscal year (or in the case of

6 fiscal year 1999 only, under section 101 of the

7 Carl D. Perkins Vocational and Applied Tech8 nology Education Act, as such section was in ef9 fect on the day before the date of enactment of

10 this Act).

11 (C) SPECIAL RULE.—

12 (i) IN GENERAL.—Subject to para13 graph (4), no State, by reason of subpara14 graph (A), shall be allotted for a fiscal year

15 more than the lesser of—

16 (I) 150 percent of the amount that

17 the State received in the preceding fis18 cal year (or in the case of fiscal year

19 1999 only, under section 101 of the

20 Carl D. Perkins Vocational and Ap21 plied Technology Education Act, as

22 such section was in effect on the day

23 before the date of enactment of this

24 Act); and
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1 (II) the amount calculated under

2 clause (ii).

3 (ii) AMOUNT.—The amount calculated

4 under this clause shall be determined by

5 multiplying—

6 (I) the number of individuals in

7 the State counted under paragraph (2)

8 in the preceding fiscal year; by

9 (II) 150 percent of the national

10 average per pupil payment made with

11 funds available under this section for

12 that year (or in the case of fiscal year

13 1999, only, under section 101 of the

14 Carl D. Perkins Vocational and Ap15 plied Technology Education Act, as

16 such section was in effect on the day

17 before the date of enactment of this

18 Act).

19 (4) HOLD HARMLESS.—

20 (A) IN GENERAL.—No State shall receive an

21 allotment under this section for a fiscal year that

22 is less than the allotment the State received

23 under part A of title I of the Carl D. Perkins Vo24 cational and Applied Technology Education Act

25 (20 U.S.C. 2311 et seq.) (as such part was in ef-
432

•S 1186 RS

1 fect on the day before the date of enactment of

2 this Act) for fiscal year 1997.

3 (B) RATABLE REDUCTION.—If for any fis4 cal year the amount appropriated for allotments

5 under this section is insufficient to satisfy the

6 provisions of subparagraph (A), the payments to

7 all States under such subparagraph shall be rat8 ably reduced.

9 (b) REALLOTMENT.—If the Secretary determines that

10 any amount of any State’s allotment under subsection (a)

11 for any fiscal year will not be required for such fiscal year

12 for carrying out the activities for which such amount has

13 been allotted, the Secretary shall make such amount avail14 able for reallotment. Any such reallotment among other

15 States shall occur on such dates during the same year as

16 the Secretary shall fix, and shall be made on the basis of

17 criteria established by regulation. No funds may be reallot18 ted for any use other than the use for which the funds were

19 appropriated. Any amount reallotted to a State under this

20 subsection for any fiscal year shall remain available for ob21 ligation during the succeeding fiscal year and shall be

22 deemed to be part of the State’s allotment for the year in

23 which the amount is obligated.

24 (c) ALLOTMENT RATIO.—
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•S 1186 RS

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

2 State shall be 1.00 less the product of—

3 (A) 0.50; and

4 (B) the quotient obtained by dividing the

5 per capita income for the State by the per capita

6 income for all the States (exclusive of the Com7 monwealth of Puerto Rico), except that—

8 (i) the allotment ratio in no case shall

9 be more than 0.60 or less than 0.40; and

10 (ii) the allotment ratio for the Com11 monwealth of Puerto Rico shall be 0.60.

12 (2) PROMULGATION.—The allotment ratios shall

13 be promulgated by the Secretary for each fiscal year

14 between October 1 and December 31 of the fiscal year

15 preceding the fiscal year for which the determination

16 is made. Allotment ratios shall be computed on the

17 basis of the average of the appropriate per capita in18 comes for the 3 most recent consecutive fiscal years for

19 which satisfactory data are available.

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

21 the purpose of this section, the term ‘‘per capita in22 come’’ means, with respect to a fiscal year, the total

23 personal income in the calendar year ending in such

24 year, divided by the population of the area concerned

25 in such year.
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1 (4) POPULATION DETERMINATION.—For the pur2 poses of this section, population shall be determined

3 by the Secretary on the basis of the latest estimates

4 available to the Department of Education.

5 SEC. 112. PERFORMANCE MEASURES AND EXPECTED LEV6 ELS OF PERFORMANCE.

7 (a) ESTABLISHMENT OF PERFORMANCE MEASURES.—

8 After consultation with eligible agencies, local educational

9 agencies, eligible institutions, and other interested parties

10 (including representatives of business and representatives of

11 labor organizations), the Secretary shall establish and pub12 lish performance measures described in this subsection to

13 assess the progress of each eligible agency in achieving the

14 following:

15 (1) Student mastery of academic skills.

16 (2) Student mastery of job readiness skills.

17 (3) Student mastery of vocational skill proficien18 cies for students in vocational education programs,

19 that are necessary for the receipt of a secondary

20 school diploma or its recognized equivalent, or a sec21 ondary school skill certificate.

22 (4) Receipt of a postsecondary degree or certifi23 cate.

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

25 of, secondary school education (as determined under
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•S 1186 RS

1 State law) and postsecondary education, and place2 ment and retention in employment and in military

3 service, including for the populations described in sec4 tion 124(c)(16).

5 (6) Participation in and completion of nontradi6 tional vocational education programs.

7 (7) Other performance measures as determined

8 by the Secretary.

9 (b) EXPECTED LEVELS OF PERFORMANCE.—In devel10 oping a State plan, each eligible agency shall negotiate with

11 the Secretary the expected levels of performance for the per12 formance measures described in subsection (a).

13 SEC. 113. ASSISTANCE FOR THE OUTLYING AREAS.

14 (a) IN GENERAL.—From the funds reserved under sec15 tion 111(a)(1)(A), the Secretary—

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

17 $500,000 to Guam for vocational education and

18 training for the purpose of providing direct edu19 cational services related to vocational education, in20 cluding—

21 (A) teacher and counselor training and re22 training;

23 (B) curriculum development; and

24 (C) improving vocational education pro25 grams in secondary schools and institutions of
436

•S 1186 RS

1 higher education, or improving cooperative edu2 cation programs involving both secondary schools

3 and institutions of higher education;

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

5 $600,000 to the United States Virgin Islands for vo6 cational education for the purpose described in para7 graph (1); and

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

9 $190,000 to each of American Samoa and the Com10 monwealth of the Northern Mariana Islands for voca11 tional education for the purpose described in para12 graph (1).

13 (b) SPECIAL RULE.—

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

15 section 111(a)(1)(A) and not awarded under sub16 section (a), the Secretary shall make available the

17 amount awarded to the Republic of the Marshall Is18 lands, the Federated States of Micronesia, and the Re19 public of Palau under section 101A of the Carl D.

20 Perkins Vocational and Applied Technology Edu21 cation Act (as such section was in effect on the day

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

23 grants under the succeeding sentence. From the

24 amount made available under the preceding sentence,

25 the Secretary shall award grants, to Guam, American
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•S 1186 RS

1 Samoa, the Commonwealth of the Northern Mariana

2 Islands, the Republic of the Marshall Islands, the Fed3 erated States of Micronesia, or the Republic of Palau

4 for the purpose described in subsection (a)(1).

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

6 grants pursuant to paragraph (1) on a competitive

7 basis and pursuant to recommendations from the Pa8 cific Region Educational Laboratory in Honolulu,

9 Hawaii.

10 (3) TERMINATION OF ELIGIBILITY.—Notwith11 standing any other provision of law, the Republic of

12 the Marshall Islands, the Federated States of Microne13 sia, and the Republic of Palau shall not receive any

14 funds under this title for any fiscal year that begins

15 after September 30, 2004.

16 (4) ADMINISTRATIVE COSTS.—The Secretary

17 may provide not more than 5 percent of the funds

18 made available for grants under this subsection to

19 pay the administrative costs of the Pacific Region

20 Educational Laboratory regarding activities assisted

21 under this subsection.

22 SEC. 114. INDIAN AND HAWAIIAN NATIVE PROGRAMS.

23 (a) DEFINITIONS; AUTHORITY OF SECRETARY.—

24 (1) DEFINITIONS.—For the purpose of this sec25 tion—
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•S 1186 RS

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

2 the Act entitled ‘‘An Act authorizing the Sec3 retary of the Interior to arrange with States or

4 territories for the education, medical attention,

5 relief of distress, and social welfare of Indians,

6 and for other purposes’’, enacted April 16, 1934

7 (48 Stat. 596; 25 U.S.C. 452 et seq.);

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

9 the meaning given the term in section 1146 of

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

11 2026); and

12 (C) the term ‘‘Hawaiian native’’ means any

13 individual any of whose ancestors were natives,

14 prior to 1778, of the area which now comprises

15 the State of Hawaii.

16 (2) AUTHORITY.—From the funds reserved pur17 suant to section 111(a)(1)(B), the Secretary shall

18 award grants and enter into contracts for Indian and

19 Hawaiian native programs in accordance with this

20 section, except that such programs shall not include

21 secondary school programs in Bureau funded schools.

22 (b) INDIAN PROGRAMS.—

23 (1) AUTHORITY.—

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

25 subparagraph (B), from the funds reserved pur-
439

•S 1186 RS

1 suant to section 111(a)(1)(B)(i), the Secretary is

2 directed—

3 (i) upon the request of any Indian

4 tribe, or a tribal organization serving an

5 Indian tribe, which is eligible to contract

6 with the Secretary of the Interior for the ad7 ministration of programs under the Indian

8 Self-Determination Act (25 U.S.C. 450 et

9 seq.) or under the Act of April 16, 1934; or

10 (ii) upon an application received from

11 a Bureau funded school offering postsecond12 ary or adult education programs filed at

13 such time and under such conditions as the

14 Secretary may prescribe,

15 to make grants to or enter into contracts with

16 any Indian tribe or tribal organization, or to

17 make a grant to such Bureau funded school, as

18 appropriate, to plan, conduct, and administer

19 programs or portions of programs authorized by,

20 and consistent with the purpose of, this title.

21 (B) REQUIREMENTS.—The grants or con22 tracts described in subparagraph (A), shall be

23 subject to the following:

24 (i) TRIBAL ORGANIZATIONS.—Such

25 grants or contracts with any tribal organi-
440

•S 1186 RS

1 zation shall be subject to the terms and con2 ditions of section 102 of the Indian Self-De3 termination Act (25 U.S.C. 450f) and shall

4 be conducted in accordance with the provi5 sions of sections 4, 5, and 6 of the Act of

6 April 16, 1934, which are relevant to the

7 programs administered under this sub8 section.

9 (ii) BUREAU FUNDED SCHOOLS.—Such

10 grants to Bureau funded schools shall not be

11 subject to the requirements of the Indian

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

13 seq.) or the Act of April 16, 1934.

14 (C) APPLICATION.—Any Indian tribe, tribal

15 organization, or Bureau funded school eligible to

16 receive assistance under this paragraph may

17 apply individually or as part of a consortium

18 with another such Indian tribe, tribal organiza19 tion, or Bureau funded school.

20 (D) PERFORMANCE MEASURES AND EVAL21 UATION.—Any Indian tribe, tribal organization,

22 or Bureau funded school that receives assistance

23 under this section shall—
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•S 1186 RS

1 (i) establish performance measures and

2 expected level of performance to be achieved

3 by students served under this section; and

4 (ii) evaluate the quality and effective5 ness of activities and services provided

6 under this subsection.

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

8 funded school, the minimum amount of a grant

9 awarded or contract entered into under this sec10 tion shall be $35,000.

11 (F) RESTRICTIONS.—The Secretary may

12 not place upon grants awarded or contracts en13 tered into under this paragraph any restrictions

14 relating to programs other than restrictions that

15 apply to grants made to or contracts entered into

16 with States pursuant to allotments under section

17 111(a). The Secretary, in awarding grants and

18 entering into contracts under this paragraph,

19 shall ensure that the grants and contracts will

20 improve vocational education programs, and

21 shall give special consideration to—

22 (i) grants or contracts which involve,

23 coordinate with, or encourage tribal eco24 nomic development plans; and
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•S 1186 RS

1 (ii) applications from tribally con2 trolled community colleges that—

3 (I) are accredited or are can4 didates for accreditation by a nation5 ally recognized accreditation organiza6 tion as an institution of postsecondary

7 vocational education; or

8 (II) operate vocational education

9 programs that are accredited or are

10 candidates for accreditation by a na11 tionally recognized accreditation orga12 nization, and issue certificates for com13 pletion of vocational education pro14 grams.

15 (G) STIPENDS.—

16 (i) IN GENERAL.—Funds received pur17 suant to grants or contracts described in

18 subparagraph (A) may be used to provide

19 stipends to students who are enrolled in vo20 cational education programs and who have

21 acute economic needs which cannot be met

22 through work-study programs.

23 (ii) AMOUNT.—Stipends described in

24 clause (i) shall not exceed reasonable

25 amounts as prescribed by the Secretary.
443

•S 1186 RS

1 (2) MATCHING.—If sufficient funding is avail2 able, the Bureau of Indian Affairs shall expend an

3 amount equal to the amount made available under

4 this subsection, relating to programs for Indians, to

5 pay a part of the costs of programs funded under this

6 subsection. During each fiscal year the Bureau of In7 dian Affairs shall expend no less than the amount ex8 pended during the prior fiscal year on vocational

9 education programs, services, and activities adminis10 tered either directly by, or under contract with, the

11 Bureau of Indian Affairs, except that in no year shall

12 funding for such programs, services, and activities be

13 provided from accounts and programs that support

14 other Indian education programs. The Secretary and

15 the Assistant Secretary of the Interior for Indian Af16 fairs shall prepare jointly a plan for the expenditure

17 of funds made available and for the evaluation of pro18 grams assisted under this subsection. Upon the com19 pletion of a joint plan for the expenditure of the funds

20 and the evaluation of the programs, the Secretary

21 shall assume responsibility for the administration of

22 the program, with the assistance and consultation of

23 the Bureau of Indian Affairs.

24 (3) SPECIAL RULE.—Programs funded under

25 this subsection shall be in addition to such other pro-
444

•S 1186 RS

1 grams, services, and activities as are made available

2 to eligible Indians under other provisions of this Act.

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

4 reserved pursuant to section 111(a)(1)(B)(ii), the Secretary

5 is directed, to award grants or enter into contracts with

6 organizations primarily serving and representing Hawai7 ian natives which are recognized by the Governor of the

8 State of Hawaii to plan, conduct, and administer pro9 grams, or portions thereof, which are authorized by and

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

11 Hawaiian natives.

12 SEC. 115. TRIBALLY CONTROLLED POSTSECONDARY VOCA13 TIONAL INSTITUTIONS.

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

15 provide grants for the operation and improvement of trib16 ally controlled postsecondary vocational institutions to en17 sure continued and expanded educational opportunities for

18 Indian students, and to allow for the improvement and ex19 pansion of the physical resources of such institutions.

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

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

22 make grants to tribally controlled postsecondary vocational

23 institutions to provide basic support for the vocational edu24 cation and training of Indian students.
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•S 1186 RS

1 (c) ELIGIBLE GRANT RECIPIENTS.—To be eligible for

2 assistance under this section a tribally controlled post3 secondary vocational institution shall—

4 (1) be governed by a board of directors or trust5 ees, a majority of whom are Indians;

6 (2) demonstrate adherence to stated goals, a phi7 losophy, or a plan of operation which fosters individ8 ual Indian economic and self-sufficiency opportunity,

9 including programs that are appropriate to stated

10 tribal goals of developing individual entrepreneur11 ships and self-sustaining economic infrastructures on

12 reservations;

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

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

15 accreditation by a nationally recognized accrediting

16 authority for postsecondary vocational education; and

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

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

19 (d) GRANT REQUIREMENTS.—

20 (1) APPLICATIONS.—Any tribally controlled

21 postsecondary vocational institution that desires to

22 receive a grant under this section shall submit an ap23 plication to the Secretary. Such application shall in24 clude a description of recordkeeping procedures for the

25 expenditure of funds received under this section that
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•S 1186 RS

1 will allow the Secretary to audit and monitor pro2 grams.

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

4 less than 2 grants under this section for each fiscal

5 year.

6 (3) CONSULTATION.—In awarding grants under

7 this section, the Secretary shall, to the extent prac8 ticable, consult with the boards of trustees of, and the

9 tribal governments chartering, the institutions desir10 ing the grants.

11 (4) LIMITATION.—Amounts made available

12 through grants under this section shall not be used in

13 connection with religious worship or sectarian in14 struction.

15 (e) USES OF GRANTS.—

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

17 the availability of appropriations, provide for each

18 program year to each tribally controlled vocational

19 institution having an application approved by the

20 Secretary, an amount necessary to pay expenses asso21 ciated with—

22 (A) the maintenance and operation of the

23 program, including development costs, costs of

24 basic and special instruction (including special

25 programs for individuals with disabilities and
447

•S 1186 RS

1 academic instruction), materials, student costs,

2 administrative expenses, boarding costs, trans3 portation, student services, daycare and family

4 support programs for students and their families

5 (including contributions to the costs of education

6 for dependents), and student stipends;

7 (B) capital expenditures, including oper8 ations and maintenance, and minor improve9 ments and repair, and physical plant mainte10 nance costs, for the conduct of programs funded

11 under this section; and

12 (C) costs associated with repair, upkeep, re13 placement, and upgrading of the instructional

14 equipment.

15 (2) ACCOUNTING.—Each institution receiving a

16 grant under this section shall provide annually to the

17 Secretary an accurate and detailed accounting of the

18 institution’s operating and maintenance expenses and

19 such other information concerning costs as the Sec20 retary may reasonably require.

21 (f) EFFECT ON OTHER PROGRAMS.—

22 (1) IN GENERAL.—Except as specifically pro23 vided in this Act, eligibility for assistance under this

24 section shall not preclude any tribally controlled post25 secondary vocational institution from receiving Fed-
448

•S 1186 RS

1 eral financial assistance under any program author2 ized under the Higher Education Act of 1965 (20

3 U.S.C. 1001 et seq.) or any other applicable program

4 for the benefit of institutions of higher education or

5 vocational education.

6 (2) PROHIBITION ON ALTERATION OF GRANT

7 AMOUNT.—The amount of any grant for which trib8 ally controlled postsecondary vocational institutions

9 are eligible under this section shall not be altered be10 cause of funds allocated to any such institution from

11 funds appropriated under the Act of November 2,

12 1921 (commonly known as the ‘‘Snyder Act’’) (42

13 Stat. 208, chapter 115; 25 U.S.C. 13).

14 (3) PROHIBITION ON CONTRACT DENIAL.—No

15 tribally controlled postsecondary vocational institu16 tion for which an Indian tribe has designated a por17 tion of the funds appropriated for the tribe from

18 funds appropriated under such Act of November 2,

19 1921, may be denied a contract for such portion

20 under the Indian Self-Determination and Education

21 Assistance Act (25 U.S.C. 450b et seq.) (except as pro22 vided in that Act), or denied appropriate contract

23 support to administer such portion of the appro24 priated funds.
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•S 1186 RS

1 (g) NEEDS ESTIMATE AND REPORT ON FACILITIES

2 AND FACILITIES IMPROVEMENT.—

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

4 based on the most accurate data available from the

5 institutions and Indian tribes whose Indian students

6 are served under this section, and in consideration of

7 employment needs, economic development needs, pop8 ulation training needs, and facilities needs, prepare

9 an actual budget needs estimate for each institution

10 eligible under this section for each subsequent pro11 gram year, and submit such budget needs estimate to

12 Congress in such a timely manner as will enable the

13 appropriate committees of Congress to consider such

14 needs data for purposes of the uninterrupted flow of

15 adequate appropriations to such institutions. Such

16 data shall take into account the goals and require17 ments of the Personal Responsibility and Work Op18 portunity Reconciliation Act of 1996 (Public Law

19 104–193; 110 Stat. 2105).

20 (2) STUDY OF TRAINING AND HOUSING NEEDS.—

21 (A) IN GENERAL.—The Secretary shall con22 duct a detailed study of the training, housing,

23 and immediate facilities needs of each institu24 tion eligible under this section. The study shall

25 include an examination of—
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•S 1186 RS

1 (i) training equipment needs;

2 (ii) housing needs of families whose

3 heads of households are students and whose

4 dependents have no alternate source of sup5 port while such heads of households are stu6 dents; and

7 (iii) immediate facilities needs.

8 (B) REPORT.—The Secretary shall report to

9 Congress not later than July 1, 1999, on the re10 sults of the study required by subparagraph (A).

11 (C) CONTENTS.—The report required by

12 subparagraph (B) shall include the number,

13 type, and cost of meeting the needs described in

14 subparagraph (A), and rank each institution by

15 relative need.

16 (D) PRIORITY.—In conducting the study re17 quired by subparagraph (A), the Secretary shall

18 give priority to institutions that are receiving

19 assistance under this section.

20 (3) LONG-TERM STUDY OF FACILITIES.—

21 (A) IN GENERAL.—The Secretary shall pro22 vide for the conduct of a long-term study of the

23 facilities of each institution eligible for assist24 ance under this section.
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•S 1186 RS

1 (B) CONTENTS.—The study required by

2 subparagraph (A) shall include a 5-year projec3 tion of training facilities, equipment, and hous4 ing needs and shall consider such factors as pro5 jected service population, employment, and eco6 nomic development forecasting, based on the most

7 current and accurate data available from the in8 stitutions and Indian tribes affected.

9 (B) SUBMISSION.—The Secretary shall sub10 mit to Congress a detailed report on the results

11 of such study not later than the end of the 18-

12 month period beginning on the date of enactment

13 of this Act.

14 (h) DEFINITIONS.—For the purposes of this section:

15 (1) INDIAN; INDIAN TRIBE.—The terms ‘‘Indian’’

16 and ‘‘Indian tribe’’ have the meaning given such

17 terms in section 2 of the Tribally Controlled Commu18 nity College Assistance Act of 1978 (25 U.S.C. 1801).

19 (2) TRIBALLY CONTROLLED POSTSECONDARY VO20 CATIONAL INSTITUTION.—The term ‘‘tribally con21 trolled postsecondary vocational institution’’ means

22 an institution of higher education that—

23 (A) is formally controlled, or has been for24 mally sanctioned or chartered by the governing

25 body of an Indian tribe or tribes; and
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•S 1186 RS

1 (B) offers technical degrees or certificate

2 granting programs.

3 SEC. 116. INCENTIVE GRANTS.

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

5 States that exceed—

6 (1) the State performance measures established

7 by the Secretary of Education under this Act; and

8 (2) the State performance measures established

9 under title III.

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

11 this section, the Secretary shall give priority to those States

12 submitting a State unified plan as described in section 501

13 that is approved by the appropriate Secretaries as described

14 in such section.

15 (c) USE OF FUNDS.—A State that receives an incen16 tive grant under this section shall use the funds made avail17 able through the grant to carry out innovative programs

18 as determined by the State.

19 CHAPTER 2—STATE PROVISIONS

20 SEC. 121. STATE ADMINISTRATION.

21 Each eligible agency shall be responsible for the State

22 administration of activities under this subtitle, including—

23 (1) the development, submission, and implemen24 tation of the State plan;
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•S 1186 RS

1 (2) the efficient and effective performance of the

2 eligible agency’s duties under this subtitle; and

3 (3) consultation with other appropriate agencies,

4 groups, and individuals that are involved in the de5 velopment and implementation of activities assisted

6 under this subtitle, such as employers, parents, stu7 dents, teachers, labor organizations, State and local

8 elected officials, and local program administrators.

9 SEC. 122. STATE USE OF FUNDS.

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

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

12 agency shall reserve—

13 (1) not more than 14 percent of the funds to

14 carry out section 123;

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

16 $300,000, whichever is greater, of which—

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

18 technical assistance and advice to local edu19 cational agencies, postsecondary educational in20 stitutions, and other interested parties in the

21 State for gender equity activities; and

22 (B) the remainder may be used to—

23 (i) develop the State plan;

24 (ii) review local applications;
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•S 1186 RS

1 (iii) monitor and evaluate program ef2 fectiveness;

3 (iv) provide technical assistance; and

4 (v) assure compliance with all applica5 ble Federal laws, including required services

6 and activities for individuals who are mem7 bers of populations described in section

8 124(c)(16); and

9 (3) 1 percent of the funds, or the amount the

10 State expended under the Carl D. Perkins Vocational

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

12 2301 et seq.) for vocational education programs for

13 criminal offenders for the fiscal year 1997, whichever

14 is greater, to carry out programs for criminal offend15 ers.

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

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

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

19 portion of the funds that will be available to carry out sec20 tions 131 and 132.

21 (c) MATCHING REQUIREMENT.—Each eligible agency

22 receiving funds under this subtitle shall match, from non23 Federal sources and on a dollar-for-dollar basis, the funds

24 received under subsection (a)(2).
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•S 1186 RS

1 SEC. 123. STATE LEADERSHIP ACTIVITIES.

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

3 funds reserved under section 122(a)(1) to conduct programs,

4 services, and activities that further the development, imple5 mentation, and improvement of vocational education with6 in the State and that are integrated, to the maximum extent

7 possible, with challenging State academic standards, in8 cluding—

9 (1) providing comprehensive professional devel10 opment (including initial teacher preparation) for vo11 cational, academic, guidance, and administrative per12 sonnel, that—

13 (A) will help the teachers and personnel to

14 meet the expected levels of performance estab15 lished under section 112;

16 (B) reflects the eligible agency’s assessment

17 of the eligible agency’s needs for professional de18 velopment; and

19 (C) is integrated with the professional devel20 opment activities that the State carries out

21 under title II of the Elementary and Secondary

22 Education Act of 1965 (20 U.S.C. 6001 et seq.);

23 (2) developing and disseminating curricula that

24 are aligned, as appropriate, with challenging State

25 academic standards, and vocational and technological

26 skills;
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•S 1186 RS

1 (3) monitoring and evaluating the quality of,

2 and improvement in, activities conducted with assist3 ance under this subtitle;

4 (4) promoting gender equity in secondary and

5 postsecondary vocational education;

6 (5) supporting tech-prep education activities;

7 (6) improving and expanding the use of tech8 nology in instruction;

9 (7) supporting partnerships among local edu10 cational agencies, institutions of higher education,

11 adult education providers, and, as appropriate, other

12 entities, such as employers, labor organizations, par13 ents, and local partnerships, to enable students to

14 achieve to challenging State academic standards, and

15 vocational and technological skills; and

16 (8) serving individuals in State institutions,

17 such as State correctional institutions and institu18 tions that serve individuals with disabilities.

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

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

21 (1) improving guidance and counseling pro22 grams that assist students in making informed edu23 cation and vocational decisions;

24 (2) supporting vocational student organizations,

25 especially with respect to efforts to increase the par-
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1 ticipation of students who are members of populations

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

3 (3) providing vocational education programs for

4 adults and school dropouts to complete their second5 ary school education; and

6 (4) providing assistance to students who have

7 participated in services and activities under this sub8 title in finding an appropriate job and continuing

9 their education.

10 SEC. 124. STATE PLAN.

11 (a) STATE PLAN.—

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

13 assistance under this subtitle for any fiscal year shall

14 prepare and submit to the Secretary a State plan for

15 a 3-year period, together with such annual revisions

16 as the eligible agency determines to be necessary.

17 (2) COORDINATION.—The period required by

18 paragraph (1) shall be coordinated with the period

19 covered by the State plan described in section 304.

20 (3) HEARING PROCESS.—The eligible agency

21 shall conduct public hearings in the State, after ap22 propriate and sufficient notice, for the purpose of af23 fording all segments of the public and interested orga24 nizations and groups (including employers, labor or25 ganizations, and parents), an opportunity to present
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1 their views and make recommendations regarding the

2 State plan. A summary of such recommendations and

3 the eligible agency’s response to such recommenda4 tions shall be included with the State plan.

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

6 shall develop the State plan with representatives of second7 ary and postsecondary vocational education, and business,

8 in the State and shall also consult the Governor of the State.

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

10 include information that—

11 (1) describes the vocational education activities

12 to be assisted that are designed to meet and reach the

13 State performance measures;

14 (2) describes the integration of academic edu15 cation with vocational education, and with techno16 logical education related to vocational education;

17 (3) describes how the eligible agency will

18 disaggregate data relating to students participating

19 in vocational education in order to adequately meas20 ure the progress of the students;

21 (4) describes how the eligible agency will ade22 quately address the needs of students in alternative

23 education programs;

24 (5) describes how the eligible agency will provide

25 local educational agencies, area vocational education
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1 schools, and eligible institutions in the State with

2 technical assistance;

3 (6) describes how the eligible agency will encour4 age the participation of the parents of secondary

5 school students who are involved in vocational edu6 cation activities;

7 (7) identifies how the eligible agency will obtain

8 the active participation of business, labor organiza9 tions, and parents in the development and improve10 ment of vocational education activities carried out by

11 the eligible agency;

12 (8) describes how vocational education is aligned

13 with State and regional employment opportunities;

14 (9) describes the methods proposed for the joint

15 planning and coordination of programs carried out

16 under this subtitle with other Federal education pro17 grams;

18 (10) describes how funds will be used to promote

19 gender equity in secondary and postsecondary voca20 tional education;

21 (11) describes how funds will be used to improve

22 and expand the use of technology in instruction;

23 (12) describes how funds will be used to serve in24 dividuals in State correctional institutions;
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1 (13) describes how funds will be used effectively

2 to link secondary and postsecondary education;

3 (14) describes how funds will be allocated and

4 used at the secondary and postsecondary level, any

5 consortia that will be formed among secondary schools

6 and eligible institutions, and how funds will be allo7 cated among the members of the consortia;

8 (15) describes how the eligible agency will ensure

9 that the data reported to the eligible agency from local

10 educational agencies and eligible institutions under

11 this subtitle and the data the eligible agency reports

12 to the Secretary are complete, accurate, and reliable;

13 (16) describes how the eligible agency will de14 velop program strategies for populations that include,

15 at a minimum—

16 (A) low-income individuals, including foster

17 children;

18 (B) individuals with disabilities;

19 (C) single parents and displaced home20 makers; and

21 (D) individuals with multiple barriers to

22 educational enhancement; and

23 (17) contains the description and information

24 specified in paragraphs (8) and (16) of section 304(b)
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1 concerning the provision of services only for post2 secondary students and school dropouts.

3 (d) PLAN APPROVAL.—

4 (1) IN GENERAL.—The Secretary shall approve a

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

6 only if the Secretary determines that—

7 (A) the State plan, or revision, respectively,

8 meets the requirements of this section; and

9 (B) the State’s performance measures and

10 expected levels of performance under section 112

11 are sufficiently rigorous to meet the purpose of

12 this title.

13 (2) DISAPPROVAL.—The Secretary shall not fi14 nally disapprove a State plan, except after giving the

15 eligible agency notice and an opportunity for a hear16 ing.

17 (3) PEER REVIEW.—The Secretary shall establish

18 a peer review process to make recommendations re19 garding approval of State plans and revisions to

20 State plans.

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

22 approved if the Secretary has not responded to the eli23 gible agency regarding the plan within 90 days of the

24 date the Secretary receives the plan.

25 (e) ELIGIBLE AGENCY REPORT.—
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1 (1) IN GENERAL.—The eligible agency shall an2 nually report to the Secretary regarding—

3 (A) the quality and effectiveness of the pro4 grams, services, and activities, assisted under

5 this subtitle, based on the performance measures

6 and expected levels of performance described in

7 section 112; and

8 (B) the progress each population of individ9 uals described in section 124(c)(16) is making

10 toward achieving the expected levels of perform11 ance.

12 (2) CONTENTS.—The eligible agency report

13 also—

14 (A) shall include such information, in such

15 form, as the Secretary may reasonably require,

16 in order to ensure the collection of uniform data;

17 and

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

19 CHAPTER 3—LOCAL PROVISIONS

20 SEC. 131. DISTRIBUTION FOR SECONDARY SCHOOL VOCA21 TIONAL EDUCATION.

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

23 this section, each eligible agency shall distribute the portion

24 of the funds made available for secondary school vocational
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1 education activities under section 122(b) for any fiscal year

2 to local educational agencies within the State as follows:

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

4 such portion, each local educational agency shall be

5 allocated an amount that bears the same relationship

6 to such 70 percent as the amount such local edu7 cational agency was allocated under section 1124 of

8 the Elementary and Secondary Education Act of

9 1965 (20 U.S.C. 6333) for the preceding fiscal year

10 bears to the total amount received under such section

11 by all local educational agencies in the State for such

12 year.

13 (2) TWENTY PERCENT.—From 20 percent of such

14 portion, each local educational agency shall be allo15 cated an amount that bears the same relationship to

16 such 20 percent as the number of students with dis17 abilities who have individualized education programs

18 under section 614(d) of the Individuals With Disabil19 ities Education Act (20 U.S.C. 1414(d)) served by

20 such local educational agency for the preceding fiscal

21 year bears to the total number of such students served

22 by all local educational agencies in the State for such

23 year.

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

25 portion, each local educational agency shall be allo-
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1 cated an amount that bears the same relationship to

2 such 10 percent as the number of students enrolled in

3 schools and adults enrolled in training programs

4 under the jurisdiction of such local educational agen5 cy for the preceding fiscal year bears to the number

6 of students enrolled in schools and adults enrolled in

7 training programs under the jurisdiction of all local

8 educational agencies in the State for such year.

9 (b) MINIMUM ALLOCATION.—

10 (1) IN GENERAL.—Except as provided in para11 graph (2), no local educational agency shall receive

12 an allocation under subsection (a) unless the amount

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

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

15 enter into a consortium with other local educational

16 agencies for purposes of meeting the minimum alloca17 tion requirement of this paragraph.

18 (2) WAIVER.—The eligible agency may waive the

19 application of paragraph (1) in any case in which

20 the local educational agency—

21 (A) is located in a rural, sparsely populated

22 area; and

23 (B) demonstrates that such agency is unable

24 to enter into a consortium for purposes of pro25 viding services under this section.
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1 (3) REALLOCATION.—Any amounts that are not

2 allocated by reason of paragraph (1) or (2) shall be

3 reallocated to local educational agencies that meet the

4 requirements of paragraph (1) or (2) in accordance

5 with the provisions of this section.

6 (c) LIMITED JURISDICTION AGENCIES.—

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

8 subsection (a), no eligible agency receiving assistance

9 under this subtitle shall allocate funds to a local edu10 cational agency that serves only elementary schools,

11 but shall distribute such funds to the local educational

12 agency or regional educational agency that provides

13 secondary school services to secondary school students

14 in the same attendance area.

15 (2) SPECIAL RULE.—The amount to be allocated

16 under paragraph (1) to a local educational agency

17 that has jurisdiction only over secondary schools shall

18 be determined based on the number of students that

19 entered such secondary schools in the previous year

20 from the elementary schools involved.

21 (d) ALLOCATIONS TO AREA VOCATIONAL EDUCATION

22 SCHOOLS AND EDUCATIONAL SERVICE AGENCIES.—

23 (1) IN GENERAL.—Each eligible agency shall dis24 tribute the portion of funds made available for any

25 fiscal year by such entity for secondary school voca-
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•S 1186 RS

1 tional education activities under section 122(b) to the

2 appropriate area vocational education school or edu3 cational service agency in any case in which—

4 (A) the area vocational education school or

5 educational service agency, and the local edu6 cational agency concerned—

7 (i) have formed or will form a consor8 tium for the purpose of receiving funds

9 under this section; or

10 (ii) have entered into or will enter into

11 a cooperative arrangement for such purpose;

12 and

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

14 or educational service agency serves an approxi15 mately equal or greater proportion of students

16 who are individuals with disabilities or are low17 income than the proportion of such students at18 tending the secondary schools under the jurisdic19 tion of all of the local educational agencies send20 ing students to the area vocational education

21 school or the educational service agency; 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 un-
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•S 1186 RS

1 able to meet the criterion described in clause (i)

2 due to the lack of interest by students described

3 in clause (i) in attending vocational education

4 programs in that area vocational education

5 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 stu15 dents described in paragraph (1)(B)(i) who are

16 attending vocational education programs (based,

17 if practicable, on the average enrollment for the

18 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 this

25 subsection, the eligible agency may determine the
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1 number of students who are low-income on the

2 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 satisfac20 tion of the Secretary that such index is a

21 more representative means of determining

22 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 determina-
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•S 1186 RS

1 tion described in such subparagraph, the eligible

2 agency shall ensure that the data used is not du3 plicative.

4 (4) APPEALS PROCEDURE.—The eligible agency

5 shall establish an appeals procedure for resolution of

6 any dispute arising between a local educational agen7 cy and an area vocational education school or an

8 educational service agency with respect to the alloca9 tion procedures described in this section, including

10 the decision of a local educational agency to leave a

11 consortium.

12 (5) SPECIAL RULE.—Notwithstanding the provi13 sions 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 qual17 ity to be effective may—

18 (A) form a consortium or enter into a coop19 erative agreement with an area vocational edu20 cation school or educational service agency offer21 ing secondary school vocational education pro22 grams of sufficient size, scope, and quality to be

23 effective and that are accessible to students who

24 are individuals with disabilities or are low-in-
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•S 1186 RS

1 come, and are served by such local educational

2 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 distributing

7 funds under this section shall treat a secondary school fund8 ed by the Bureau of Indian Affairs within the State as if

9 such school were a local educational agency within the State

10 for the purpose of receiving a distribution under this sec11 tion.

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

14 (a) DISTRIBUTION.—

15 (1) IN GENERAL.—Except as otherwise provided

16 in this section, each eligible agency shall distribute

17 the portion of funds made available for postsecondary

18 vocational education under section 122(b) for any fis19 cal year to eligible institutions within the State in

20 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 vo-
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•S 1186 RS

1 cational education under section 122(b) for the fiscal

2 year as the number of Pell Grant recipients and re3 cipients of assistance from the Bureau of Indian Af4 fairs enrolled for the preceding fiscal year by such eli5 gible institution in vocational education programs

6 that do not exceed 2 years in duration bears to the

7 number of such recipients enrolled in such programs

8 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) unless

13 the amount allocated to the eligible institution

14 under paragraph (2) is not less than $65,000.

15 (B) WAIVER.—The eligible agency may

16 waive the application of subparagraph (A) in

17 any case in which the eligible institution is lo18 cated in a rural, sparsely populated area.

19 (C) REALLOCATION.—Any amounts that are

20 not allocated by reason of subparagraph (A) or

21 (B) shall be reallocated to eligible institutions

22 that meet the requirements of subparagraph (A)

23 or (B) in accordance with the provisions of this

24 section.
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1 (4) DEFINITION OF PELL GRANT RECIPIENT.—

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

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

4 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 alter9 native formula if the eligible agency demonstrates to the

10 Secretary’s satisfaction that—

11 (1) the alternative formula better meets the pur12 pose of this title; and

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

14 does not result in an allocation of funds to the eligible

15 institutions that serve the highest numbers or percent16 ages of low-income students; and

17 (B) the alternative formula will result in such a

18 distribution.

19 SEC. 133. LOCAL ACTIVITIES.

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

21 educational agency or an eligible institution under this sub22 title shall be used—

23 (1) to conduct vocational education programs,

24 and technological education programs related to voca25 tional education, that further student achievement;
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•S 1186 RS

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 activities

10 to teachers, counselors, and administrators, includ11 ing—

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 spe17 cifically 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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1 (8) to provide access to quality vocational edu2 cation programs for students, including students who

3 are members of the populations described in section

4 124(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 sub11 title 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 for

17 adults and school dropouts to complete their second18 ary 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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1 (7) to support other activities that are consistent

2 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 be

10 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 inde17 pendently evaluate and continuously improve the per18 formance of the local educational agency or eligible

19 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 pro12 gram leading to a 2-year associate degree or a 2-year

13 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 ‘‘ar25 ticulation agreement’’ means a written commitment
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•S 1186 RS

1 to a program designed to provide students with a non

2 duplicative sequence of progressive achievement lead3 ing to degrees or certificates in a tech-prep education

4 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 (20

9 U.S.C. 1141) for an institution which provides

10 not less than a 2-year program which is accept11 able for full credit toward a bachelor’s degree;

12 and

13 (B) includes tribally controlled community

14 colleges.

15 (3) TECH-PREP PROGRAM.—The term ‘‘tech-prep

16 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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•S 1186 RS

1 (C) provides technical preparation in a ca2 reer field such as engineering technology, applied

3 science, a mechanical, industrial, or practical

4 art or trade, agriculture, health occupations,

5 business, or applied economics;

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

8 workplace skills, through applied, contextual aca9 demics, and integrated instruction in a coherent

10 sequence of courses;

11 (E) leads to an associate or a baccalaureate

12 degree or a certificate in a specific career field;

13 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 which

19 the amount appropriated under section 157 to carry

20 out this subtitle is equal to or less than $50,000,000,

21 the Secretary shall award grants for tech-prep edu22 cation programs to consortia of—

23 (A) local educational agencies, intermediate

24 educational agencies or area vocational edu25 cation schools serving secondary school students,
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•S 1186 RS

1 or secondary schools funded by the Bureau of In2 dian 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. 1088(a)),

10 including institutions receiving assistance

11 under the Tribally Controlled Community

12 College Assistance Act of 1978 (25 U.S.C.

13 1801 et seq.) and tribally controlled post14 secondary vocational institutions; or

15 (II) a 2-year apprenticeship program

16 that follows secondary instruction,

17 if such nonprofit institutions of higher education

18 are not prohibited from receiving assistance

19 under part B of the Higher Education Act of

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

21 provisions of section 435(a)(3) of such Act (20

22 U.S.C. 1083(a)); or

23 (ii) proprietary institutions of higher edu24 cation which offer a 2-year associate degree pro25 gram and which are qualified as institutions of
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1 higher education pursuant to section 481(a) of

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

3 1088(a)) if such proprietary institutions of high4 er education are not subject to a default manage5 ment plan required by the Secretary; or

6 (C) employers or labor organizations.

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

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

9 higher education that award baccalaureate degrees.

10 (b) STATE GRANTS.—

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

12 the amount made available under section 157 to carry

13 out this subtitle exceeds $50,000,000, the Secretary

14 shall allot such amount among the States in the same

15 manner as funds are allotted to States under para16 graphs (2), (3), and (4) of section 111(a).

17 (2) PAYMENTS TO ELIGIBLE AGENCIES.—The

18 Secretary shall make a payment in the amount of a

19 State’s allotment under this paragraph to the eligible

20 agency that serves the State and has an application

21 approved under paragraph (4).

22 (3) AWARD BASIS.—From amounts made avail23 able to each eligible agency under this subsection, the

24 eligible agency shall award grants, on a competitive

25 basis or on the basis of a formula determined by the
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•S 1186 RS

1 eligible agency, for tech-prep education programs to

2 consortia described in subsection (a).

3 (4) STATE APPLICATION.—Each eligible agency

4 desiring assistance under this subtitle shall submit an

5 application to the Secretary at such time, in such

6 manner, and accompanied by such information as the

7 Secretary may require.

8 SEC. 155. TECH-PREP EDUCATION PROGRAMS.

9 (a) GENERAL AUTHORITY.—Each consortium shall use

10 amounts provided through the grant to develop and operate

11 a tech-prep education program.

12 (b) CONTENTS OF PROGRAM.—Any such tech-prep pro13 gram shall—

14 (1) be carried out under an articulation agree15 ment between the participants in the consortium;

16 (2) consist of at least 2 years of secondary school

17 preceding graduation and 2 years or more of higher

18 education, or an apprenticeship program of at least

19 2 years following secondary instruction, with a com20 mon core of required proficiency in mathematics,

21 science, communications, and technologies designed to

22 lead to an associate or baccalaureate degree or a cer23 tificate 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 post7 secondary institutions, and where possible and

8 practicable, 4-year institutions of higher edu9 cation 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 stay

2 current with the needs, expectations, and meth3 ods 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 opportunities

12 known to students interested in such activities;

13 (B) ensure that such students successfully

14 complete such programs;

15 (C) ensure that such students are placed in

16 appropriate employment; and

17 (D) stay current with the needs, expecta18 tions, and methods of business and industry;

19 (6) provide equal access to the full range of tech20 nical preparation programs to individuals who are

21 members of populations described in section

22 124(c)(16), including the development of tech-prep

23 education program services appropriate to the needs

24 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 the

22 delivery of services and programs.

23 SEC. 156. APPLICATIONS.

24 (a) IN GENERAL.—Each consortium that desires to re25 ceive a grant under this subtitle shall submit an application
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1 to the Secretary or the eligible agency, as appropriate, at

2 such time and in such manner as the Secretary or the eligi3 ble agency, as appropriate, shall prescribe.

4 (b) THREE-YEAR PLAN.—Each application submitted

5 under this section shall contain a 3-year plan for the devel6 opment and implementation of activities under this sub7 title.

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 create

11 an effective tech-prep education program described in sec12 tion 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 institu18 tions 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 shortages,

25 including the information technology industry; and
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1 (5) demonstrate how tech-prep programs will

2 help students meet high academic and employability

3 competencies.

4 (e) EQUITABLE DISTRIBUTION OF ASSISTANCE.—In

5 awarding grants under this subtitle, the Secretary shall en6 sure an equitable distribution of assistance among States,

7 and the Secretary or the eligible agency, as appropriate,

8 shall ensure an equitable distribution of assistance between

9 urban and rural consortium participants.

10 (f) NOTICE.—

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

12 awarded by the Secretary, each consortium that sub13 mits an application under this section shall provide

14 notice of such submission and a copy of such applica15 tion to the State educational agency and the State

16 agency for higher education of the State in which the

17 consortium is located.

18 (2) NOTIFICATION.—The Secretary shall notify

19 the State educational agency and the State agency for

20 higher education of a State each time a consortium

21 located in the State is selected to receive a grant

22 under this subtitle.
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1 SEC. 157. AUTHORIZATION OF APPROPRIATIONS.

2 There is authorized to be appropriated to carry out

3 this subtitle such sums as may be necessary for fiscal year

4 1999 and each of the 5 succeeding fiscal years.

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 funds

10 expended to carry out vocational education and tech-prep

11 activities.

12 (b) MAINTENANCE OF EFFORT.—

13 (1) DETERMINATION.—No payments shall be

14 made under this title for any fiscal year to an eligible

15 agency for vocational education or tech-prep activities

16 unless the Secretary determines that the fiscal effort

17 per student or the aggregate expenditures of the State

18 for vocational education for the fiscal year preceding

19 the fiscal year for which the determination is made,

20 equaled or exceeded such effort or expenditures for vo21 cational education for the second fiscal year preceding

22 the fiscal year for which the determination is made.

23 (2) WAIVER.—The Secretary may waive the re24 quirements of this section, with respect to not more

25 than 5 percent of expenditures by any eligible agency

26 for 1 fiscal year only, on making a determination
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1 that such waiver would be equitable due to excep2 tional or uncontrollable circumstances affecting the

3 ability of the applicant to meet such requirements,

4 such as a natural disaster or an unforeseen and pre5 cipitous decline in financial resources. No level of

6 funding permitted under such a waiver may be used

7 as the basis for computing the fiscal effort or aggre8 gate expenditures required under this section for years

9 subsequent to the year covered by such waiver. The

10 fiscal effort or aggregate expenditures for the subse11 quent years shall be computed on the basis of the level

12 of funding that would, but for such waiver, have been

13 required.

14 (c) REPRESENTATION.—The eligible agency shall pro15 vide representation to the statewide partnership.

16 SEC. 162. EVALUATION, IMPROVEMENT, AND ACCOUNTABIL17 ITY.

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

19 evaluate annually the vocational education and tech-prep

20 activities of each local educational agency or eligible insti21 tution receiving assistance under this title, using the per22 formance measures established under section 112.

23 (b) IMPROVEMENT ACTIVITIES.—If, after reviewing the

24 evaluation, an eligible agency determines that a local edu25 cational agency or eligible institution is not making sub-
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1 stantial progress in achieving the purpose of this title, the

2 eligible agency may work jointly with the local educational

3 agency or eligible institution, respectively, to develop an

4 improvement plan. If, after not more than 2 years of imple5 mentation of the improvement plan, the eligible agency de6 termines that the local educational agency or eligible insti7 tution, respectively, is not making substantial progress, the

8 eligible agency shall take whatever corrective action the eli9 gible agency deems necessary, which may include termi10 nation of funding or the implementation of alternative serv11 ice arrangements, consistent with State law. The eligible

12 agency shall take corrective action under the preceding sen13 tence only after the eligible agency has provided technical

14 assistance to the local educational agency or eligible institu15 tion and shall ensure, to the extent practicable, that any

16 corrective action the eligible agency takes allows for contin17 ued services to and activities for individuals served by the

18 local educational agency or eligible institution, respectively.

19 (c) TECHNICAL ASSISTANCE.—If the Secretary deter20 mines that an eligible agency is not properly implementing

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

22 is not making substantial progress in meeting the purpose

23 of this title, based on the performance measures and ex24 pected levels of performance under section 112 included in

25 the eligible agency’s State plan, the Secretary shall work
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1 with the eligible agency to implement improvement activi2 ties.

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

4 reasonable time, but not earlier than 1 year after imple5 menting activities described in subsection (c), the Secretary

6 determines that the eligible agency is not making sufficient

7 progress, based on the eligible agency’s performance meas8 ures and expected levels of performance, the Secretary, after

9 notice and opportunity for a hearing, shall withhold from

10 the eligible agency all, or a portion, of the eligible agency’s

11 grant funds under this subtitle. The Secretary may use

12 funds withheld under the preceding sentence to provide,

13 through alternative arrangements, services, and activities

14 within the State to meet the purpose of this title.

15 SEC. 163. NATIONAL ACTIVITIES.

16 The Secretary may, directly or through grants, con17 tracts, or cooperative agreements, carry out research, devel18 opment, dissemination, evaluation, capacity-building, and

19 technical assistance activities that carry out the purpose of

20 this title.

21 SEC. 164. NATIONAL ASSESSMENT OF VOCATIONAL EDU22 CATION PROGRAMS.

23 (a) IN GENERAL.—The Secretary shall conduct a na24 tional assessment of vocational education programs assisted
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1 under this title, through studies and analyses conducted

2 independently through competitive awards.

3 (b) INDEPENDENT ADVISORY PANEL.—The Secretary

4 shall appoint an independent advisory panel, consisting of

5 vocational education administrators, educators, researchers,

6 and representatives of labor organizations, business, par7 ents, guidance and counseling professionals, and other rel8 evant groups, to advise the Secretary on the implementation

9 of such assessment, including the issues to be addressed and

10 the methodology of the studies involved, and the findings

11 and recommendations resulting from the assessment. The

12 panel shall submit to the Committee on Education and the

13 Workforce of the House of Representatives, the Committee

14 on Labor and Human Resources of the Senate, and the Sec15 retary an independent analysis of the findings and rec16 ommendations resulting from the assessment. The Federal

17 Advisory Committee Act (5 U.S.C. App.) shall not apply

18 to the panel established under this subsection.

19 (c) CONTENTS.—The assessment required under sub20 section (a) shall include descriptions and evaluations of—

21 (1) the effect of the vocational education pro22 grams assisted under this title on State and tribal ad23 ministration of vocational education programs and

24 on local vocational education practices, including the
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1 capacity of State, tribal, and local vocational edu2 cation systems to address the purpose of this title;

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

4 and local levels to address program improvement in

5 vocational education, including the impact of Federal

6 allocation requirements (such as within-State dis7 tribution formulas) on the delivery of services;

8 (3) preparation and qualifications of teachers of

9 vocational and academic curricula in vocational edu10 cation programs, as well as shortages of such teachers;

11 (4) participation in vocational education pro12 grams;

13 (5) academic and employment outcomes of voca14 tional education, including analyses of—

15 (A) the extent and success of integration of

16 academic and vocational curricula; and

17 (B) the degree to which vocational edu18 cation is relevant to subsequent employment or

19 participation in postsecondary education;

20 (6) employer involvement in, and satisfaction

21 with, vocational education programs; and

22 (7) the effect of performance measures, and other

23 measures of accountability, on the delivery of voca24 tional education services.

25 (d) CONSULTATION.—
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1 (1) IN GENERAL.—The Secretary shall consult

2 with the Committee on Education and the Workforce

3 of the House of Representatives and the Committee on

4 Labor and Human Resources of the Senate in the de5 sign and implementation of the assessment required

6 under subsection (a).

7 (2) REPORTS.—The Secretary shall submit to the

8 Committee on Education and the Workforce of the

9 House of Representatives, the Committee on Labor

10 and Human Resources of the Senate, and the Sec11 retary—

12 (A) an interim report regarding the assess13 ment on or before July 1, 2001; and

14 (B) a final report, summarizing all studies

15 and analyses that relate to the assessment and

16 that are completed after the assessment, on or be17 fore July 1, 2002.

18 (3) PROHIBITION.—Notwithstanding any other

19 provision of law or regulation, the reports required by

20 this subsection shall not be subject to any review out21 side of the Department of Education before their

22 transmittal to the Committee on Education and the

23 Workforce of the House of Representatives, the Com24 mittee on Labor and Human Resources of the Senate,

25 and the Secretary, but the President, the Secretary,
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1 and the independent advisory panel established under

2 subsection (b) may make such additional rec3 ommendations to Congress with respect to the assess4 ment as the President, the Secretary, or the panel de5 termine to be appropriate.

6 SEC. 165. NATIONAL RESEARCH CENTER.

7 (a) GENERAL AUTHORITY.—

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

9 grants, contracts, or cooperative agreements, may es10 tablish 1 or more national centers in the areas of—

11 (A) applied research and development; and

12 (B) dissemination and training.

13 (2) CONSULTATION.—The Secretary shall consult

14 with the States prior to establishing 1 or more such

15 centers.

16 (3) ELIGIBLE ENTITIES.—Entities eligible to re17 ceive funds under this section are institutions of high18 er education, other public or private nonprofit orga19 nizations or agencies, and consortia of such institu20 tions, organizations, or agencies.

21 (b) ACTIVITIES.—

22 (1) IN GENERAL.—The national center or centers

23 shall carry out such activities as the Secretary deter24 mines to be appropriate to assist State and local re25 cipients of funds under this title to achieve the pur-
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1 pose of this title, which may include the research and

2 evaluation activities in such areas as—

3 (A) the integration of vocational and aca4 demic instruction, secondary and postsecondary

5 instruction;

6 (B) effective inservice and preservice teacher

7 education that assists vocational education sys8 tems;

9 (C) performance measures and expected lev10 els of performance that serve to improve voca11 tional education programs and student achieve12 ment;

13 (D) effects of economic changes on the kinds

14 of knowledge and skills required for employment

15 or participation in postsecondary education;

16 (E) longitudinal studies of student achieve17 ment; and

18 (F) dissemination and training activities

19 related to the applied research and demonstra20 tion activities described in this subsection, which

21 may also include—

22 (i) serving as a repository for informa23 tion on vocational and technological skills,

24 State academic standards, and related ma25 terials; and
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1 (ii) developing and maintaining na2 tional networks of educators who facilitate

3 the development of vocational education sys4 tems.

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

6 the activities described in paragraph (1) annually

7 shall prepare a report of key research findings of such

8 center or centers and shall submit copies of the report

9 to the Secretary, the Secretary of Labor, and the Sec10 retary of Health and Human Services. The Secretary

11 shall submit that report to the Committee on Edu12 cation and the Workforce of the House of Representa13 tives, the Committee on Labor and Human Resources

14 of the Senate, the Library of Congress, and each eligi15 ble agency.

16 (c) REVIEW.—The Secretary shall—

17 (1) consult at least annually with the national

18 center or centers and with experts in education to en19 sure that the activities of the national center or cen20 ters meet the needs of vocational education programs;

21 and

22 (2) undertake an independent review of each

23 award recipient under this section prior to extending

24 an award to such recipient beyond a 5-year period.
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1 SEC. 166. DATA SYSTEMS.

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

3 data system to collect information about, and report on, the

4 condition of vocational education and on the effectiveness

5 of State and local programs, services, and activities carried

6 out under this title in order to provide the Secretary and

7 Congress, as well as Federal, State, local, and tribal agen8 cies, with information relevant to improvement in the qual9 ity and effectiveness of vocational education. The Secretary

10 annually shall report to Congress on the Secretary’s analy11 sis of performance data collected each year pursuant to this

12 title.

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

14 the Secretary shall ensure that the data system is compat15 ible with other Federal information systems.

16 (c) ASSESSMENTS.—As a regular part of its assess17 ments, the National Center for Education Statistics shall

18 collect and report information on vocational education for

19 a nationally representative sample of students. Such assess20 ment may include international comparisons.

21 Subtitle D—Authorization of

22 Appropriations

23 SEC. 171. AUTHORIZATION OF APPROPRIATIONS.

24 There is authorized to be appropriated to carry out

25 subtitle (A), and sections 163, 164, 165, and 166, such sums
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1 as may be necessary for fiscal year 1999 and each of the

2 5 succeeding fiscal years.

3 Subtitle E—Repeal

4 SEC. 181. REPEAL.

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

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

7 is repealed.

8 (b) REFERENCES TO CARL D. PERKINS VOCATIONAL

9 AND APPLIED TECHNOLOGY EDUCATION ACT.—

10 (1) IMMIGRATION AND NATIONALITY ACT.—Sec11 tion 245A(h)(4)(C) of the Immigration and National12 ity Act (8 U.S.C. 1255a(h)(4)(C)) is amended by

13 striking ‘‘Vocational Education Act of 1963’’ and in14 serting ‘‘Carl D. Perkins Vocational and Applied

15 Technology Education Act of 1997’’.

16 (2) NATIONAL DEFENSE AUTHORIZATION ACT.—

17 Section 4461 of the National Defense Authorization

18 Act for Fiscal Year 1993 (10 U.S.C. 1143 note) is

19 amended—

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

21 (B) by redesignating paragraphs (5) and

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

23 (3) ELEMENTARY AND SECONDARY EDUCATION

24 ACT OF 1965.—The Elementary and Secondary Edu-
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1 cation Act of 1965 (20 U.S.C. 6301 et seq.) is amend2 ed—

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

4 6314(b)(2)(C)(v)), by striking ‘‘Carl D. Perkins

5 Vocational and Applied Technology Education

6 Act,’’ and inserting ‘‘Carl D. Perkins Vocational

7 and Applied Technology Education Act of 1997’’;

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

9 7815(b)(5)), by striking ‘‘Carl D. Perkins Voca10 tional and Applied Technology Education Act’’

11 and inserting ‘‘Carl D. Perkins Vocational and

12 Applied Technology Education Act of 1997’’;

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

14 8852(a)(2))—

15 (i) by striking subparagraph (C); and

16 (ii) by redesignating subparagraphs

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

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

19 (D) in the matter preceding subparagraph

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

21 8857(a)(1)), by striking ‘‘Carl D. Perkins Voca22 tional and Applied Technology Education Act’’

23 and inserting ‘‘Carl D. Perkins Vocational and

24 Applied Technology Education Act of 1997’’.
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1 (4) EQUITY IN EDUCATIONAL LAND-GRANT STA2 TUS ACT OF 1994.—Section 533(c)(4)(A) of the Equity

3 in Educational Land-Grant Status Act of 1994 (7

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

5 2397h(3)’’ and inserting ‘‘, as such section was in ef6 fect on the day preceding the date of enactment of the

7 Carl D. Perkins Vocational and Applied Technology

8 Education Act of 1997’’.

9 (5) IMPROVING AMERICA’S SCHOOLS ACT OF

10 1994.—Section 563 of the Improving America’s

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

12 by striking ‘‘the date of enactment of an Act reauthor13 izing the Carl D. Perkins Vocational and Applied

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

15 and inserting ‘‘July 1, 1999’’.

16 (6) INTERNAL REVENUE CODE OF 1986.—Section

17 135(c)(3)(B) of the Internal Revenue Code of 1986 (26

18 U.S.C. 135(c)(3)(B)) is amended—

19 (A) by striking ‘‘subparagraph (C) or (D) of

20 section 521(3) of the Carl D. Perkins Vocational

21 Education Act’’ and inserting ‘‘subparagraph

22 (C) or (D) of section 2(3) of the Workforce In23 vestment Partnership Act of 1997’’; and

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

25 section 521(27) of such Act)’’ and inserting ‘‘any
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1 State or outlying area (as the terms ‘State’ and

2 ‘outlying area’ are defined in section 2 of such

3 Act)’’.

4 (7) APPALACHIAN REGIONAL DEVELOPMENT ACT

5 OF 1965.—Section 214(c) of the Appalachian Regional

6 Development Act of 1965 (40 U.S.C. App. 214(c)) (as

7 amended by subsection (c)(5)) is further amended by

8 striking ‘‘Carl D. Perkins Vocational Education Act’’

9 and inserting ‘‘Carl D. Perkins Vocational and Ap10 plied Technology Education Act of 1997’’.

11 (8) VOCATIONAL EDUCATION AMENDMENTS OF

12 1968.—Section 104 of the Vocational Education

13 Amendments of 1968 (82 Stat. 1091) is amended by

14 striking ‘‘section 3 of the Carl D. Perkins Vocational

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

16 Vocational and Applied Technology Education Act of

17 1997’’.

18 (9) OLDER AMERICANS ACT OF 1965.—The Older

19 Americans Act of 1965 (42 U.S.C. 3001 et seq.) is

20 amended—

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

22 3056(b)(1)(N)(i)), by striking ‘‘or the Carl D.

23 Perkins Vocational and Applied Technology

24 Education Act (20 U.S.C. 2301 et seq.)’’; and
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1 (B) in section 505(d)(2) (42 U.S.C.

2 3056c(d)(2))—

3 (i) by striking ‘‘employment and train4 ing programs’’ and inserting ‘‘workforce in5 vestment activities’’; and

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

7 Vocational and Applied Technology Edu8 cation Act (20 U.S.C. 2301 et seq.)’’ and in9 serting ‘‘the Carl D. Perkins Vocational and

10 Applied Technology Education Act of

11 1997’’.

12 TITLE II—ADULT EDUCATION

13 AND LITERACY

14 SEC. 201. SHORT TITLE.

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

16 Literacy Act’’.

17 SEC. 202. FINDINGS AND PURPOSE.

18 (a) FINDINGS.—Congress finds that—

19 (1) the National Adult Literacy Survey and

20 other studies have found that more than one-fifth of

21 American adults demonstrate very low literacy skills

22 that make it difficult for the adults to be economically

23 self-sufficient, much less enter high-skill, high-wage

24 jobs;
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1 (2) data from the National Adult Literacy Sur2 vey show that adults with very low levels of literacy

3 are 10 times as likely to be poor as adults with high

4 levels of literacy; and

5 (3) our Nation’s well-being is dependent on the

6 knowledge and skills of all of our Nation’s citizens.

7 (b) PURPOSE.—It is the purpose of this title to create

8 a partnership among the Federal Government, States, and

9 localities to help provide for adult education and literacy

10 services so that adults who need such services, will, as ap11 propriate, be able to—

12 (1) become literate and obtain the knowledge and

13 skills needed to compete in a global economy;

14 (2) complete a secondary school education; and

15 (3) have the education skills necessary to support

16 the educational development of their children.

17 Subtitle A—Adult Education and

18 Literacy Programs

19 CHAPTER 1—FEDERAL PROVISIONS

20 SEC. 211. RESERVATION; GRANTS TO STATES; ALLOTMENTS.

21 (a) RESERVATION OF FUNDS FOR NATIONAL LEADER22 SHIP ACTIVITIES.—From the amount appropriated for any

23 fiscal year under section 246, the Secretary shall reserve—

24 (1) 1.5 percent to carry out section 213;

25 (2) 2 percent to carry out section 243; and
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1 (3) 1.5 percent to carry out section 245.

2 (b) GRANTS TO STATES.—From the sum appropriated

3 under section 246 and not reserved under subsection (a) for

4 a fiscal year, the Secretary shall award a grant to each

5 eligible agency having a State plan approved under section

6 224 in an amount equal to the sum of the initial allotment

7 under subsection (c)(1) and the additional allotment under

8 subsection (c)(2) for the eligible agency for the fiscal year

9 to enable the eligible agency to carry out the activities as10 sisted under this subtitle.

11 (c) ALLOTMENTS.—

12 (1) INITIAL ALLOTMENTS.—From the sum ap13 propriated under section 246 and not reserved under

14 subsection (a) for a fiscal year, the Secretary first

15 shall allot to each eligible agency having a State plan

16 approved under section 224 the following amounts:

17 (A) $100,000 in the case of an eligible agen18 cy serving the United States Virgin Islands,

19 Guam, American Samoa, the Commonwealth of

20 the Northern Mariana Islands, the Republic of

21 the Marshall Islands, the Federated States of Mi22 cronesia, and the Republic of Palau.

23 (B) $250,000, in the case of any other eligi24 ble agency.
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1 (2) ADDITIONAL ALLOTMENTS.—From the sum

2 appropriated under section 246, not reserved under

3 subsection (a), and not allotted under paragraph (1),

4 for any fiscal year, the Secretary shall allot to each

5 eligible agency an amount that bears the same rela6 tionship to such sum as the number of qualifying

7 adults in the State or outlying area served by the eli8 gible agency bears to the number of such adults in all

9 States and outlying areas.

10 (d) QUALIFYING ADULT.—For the purposes of this sub11 section, the term ‘‘qualifying adult’’ means an adult who—

12 (1) is at least 16 years of age;

13 (2) is beyond the age of compulsory school at14 tendance under the law of the State or outlying area;

15 (3) does not possess a secondary school diploma

16 or its recognized equivalent; and

17 (4) is not enrolled in secondary school.

18 (e) SPECIAL RULE.—

19 (1) IN GENERAL.—From amounts made avail20 able under subsection (c) for the Republic of the Mar21 shall Islands, the Federated States of Micronesia, and

22 the Republic of Palau, the Secretary shall award

23 grants to Guam, American Samoa, the Common24 wealth of the Northern Mariana Islands, the Republic

25 of the Marshall Islands, the Federated States of Mi-
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1 cronesia, or the Republic of Palau to carry out activi2 ties described in this part in accordance with the pro3 visions of this subtitle that the Secretary determines

4 are not inconsistent with this subsection.

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

6 grants pursuant to paragraph (1) on a competitive

7 basis and pursuant to recommendations from the Pa8 cific Region Educational Laboratory in Honolulu,

9 Hawaii.

10 (3) TERMINATION OF ELIGIBILITY.—Notwith11 standing any other provision of law, the Republic of

12 the Marshall Islands, the Federated States of Microne13 sia, and the Republic of Palau shall not receive any

14 funds under this part for any fiscal year that begins

15 after September 30, 2004.

16 (4) ADMINISTRATIVE COSTS.—The Secretary

17 may provide not more than 5 percent of the funds

18 made available for grants under this subsection to

19 pay the administrative costs of the Pacific Region

20 Educational Laboratory regarding activities assisted

21 under this subsection.

22 (f) MAINTENANCE OF EFFORT.—

23 (1) IN GENERAL.—An eligible agency may re24 ceive a grant under this subtitle for any fiscal year

25 only if the Secretary finds that the amount expended
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1 by the State for adult education and literacy, in the

2 second fiscal year preceding the fiscal year for which

3 the determination is made, was not less than 90 per4 cent of the amount expended for adult education and

5 literacy in the third fiscal year preceding the fiscal

6 year for which the determination is made.

7 (2) WAIVER.—The Secretary may waive the re8 quirements of this subsection for 1 fiscal year only if

9 the Secretary determines that such a waiver is equi10 table due to exceptional or uncontrollable cir11 cumstances, such as a natural disaster or an unfore12 seen and precipitous decline in the financial resources

13 of the State.

14 (g) REALLOTMENT.—If the Secretary determines that

15 any amount of a State’s allotment under this section for

16 any fiscal year will not be required for carrying out the

17 program for which such amount has been allotted, the Sec18 retary shall make such amount available for reallotment to

19 1 or more States on the basis that the Secretary determines

20 would best serve the purpose of this title.

21 SEC. 212. PERFORMANCE MEASURES AND EXPECTED

22 LEVELS OF PERFORMANCE.

23 (a) ESTABLISHMENT OF PERFORMANCE MEASURES.—

24 After consultation with eligible agencies, eligible providers,

25 and other interested parties (including representatives of
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1 business, representatives of labor organizations, and insti2 tutions of higher education), the Secretary shall establish

3 and publish performance measures described in this sub4 section that assess the progress of each eligible agency in

5 enhancing and developing more fully the literacy skills of

6 the adult population in the State or outlying area. The

7 measures, at a minimum, shall include—

8 (1) demonstrated improvements in literacy skill

9 levels in reading and writing the English language,

10 numeracy, and problem solving;

11 (2) attainment of secondary school diplomas or

12 their recognized equivalent;

13 (3) placement in, retention in, or completion of,

14 postsecondary education, training, or unsubsidized

15 employment; and

16 (4) other performance measures the Secretary de17 termines necessary.

18 (b) EXPECTED LEVELS OF PERFORMANCE.—In devel19 oping a State plan, each eligible agency shall negotiate with

20 the Secretary the expected levels of performance for the per21 formance measures described in subsection (a).

22 SEC. 213. NATIONAL LEADERSHIP ACTIVITIES.

23 (a) AUTHORITY.—From the amount reserved under

24 section 211(a)(1) for any fiscal year, the Secretary may es25 tablish a program of national leadership and evaluation ac-
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1 tivities to enhance the quality of adult education and lit2 eracy nationwide.

3 (b) METHOD OF FUNDING.—The Secretary may carry

4 out national leadership and evaluation activities directly

5 or through grants, contracts, or cooperative agreements.

6 (c) USES OF FUNDS.—Funds made available to carry

7 out this section shall be used for—

8 (1) research, such as estimating the number of

9 adults functioning at the lowest levels of literacy pro10 ficiency;

11 (2) demonstration of model and innovative pro12 grams, such as the development of models for basic

13 skill certificates, identification of effective strategies

14 for working with adults with learning disabilities and

15 with individuals with limited English proficiency

16 who are adults, and workplace literacy programs;

17 (3) dissemination, such as dissemination of in18 formation regarding promising practices resulting

19 from federally funded demonstration programs;

20 (4) evaluations and assessments, such as periodic

21 independent evaluations of activities assisted under

22 this subtitle and assessments of the condition and

23 progress of literacy in the United States;

24 (5) efforts to support capacity building at the

25 State and local levels, such as technical assistance in
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1 program planning, assessment, evaluation, and mon2 itoring of activities under this subtitle;

3 (6) data collection, such as improvement of both

4 local and State data systems through technical assist5 ance and development of model performance data col6 lection systems;

7 (7) professional development, such as technical

8 assistance activities to advance effective training

9 practices, identify exemplary professional develop10 ment projects, and disseminate new findings in adult

11 education training;

12 (8) technical assistance, such as endeavors that

13 aid distance learning, and promote and improve the

14 use of technology in the classroom; or

15 (9) other activities designed to enhance the qual16 ity of adult education and literacy nationwide.

17 CHAPTER 2—STATE PROVISIONS

18 SEC. 221. STATE ADMINISTRATION.

19 (a) IN GENERAL.—Each eligible agency shall be re20 sponsible for the State administration of activities under

21 this subtitle, including—

22 (1) the development, submission, and implemen23 tation of the State plan;

24 (2) consultation with other appropriate agencies,

25 groups, and individuals that are involved in, or in-
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1 terested in, the development and implementation of

2 activities assisted under this subtitle; and

3 (3) coordination and nonduplication with other

4 Federal and State education, training, corrections,

5 public housing, and social service programs.

6 (b) STATE-IMPOSED REQUIREMENTS.—Whenever a

7 State imposes any rule or policy relating to the administra8 tion and operation of activities funded under this subtitle

9 (including any rule or policy based on State interpretation

10 of any Federal law, regulation, or guideline), the State shall

11 identify the rule or policy as a State-imposed requirement.

12 SEC. 222. STATE DISTRIBUTION OF FUNDS; STATE SHARE.

13 (a) STATE DISTRIBUTION OF FUNDS.—Each eligible

14 agency receiving a grant under this subtitle for a fiscal

15 year—

16 (1) shall use not less than 80 percent of the grant

17 funds to carry out section 225 and to award grants

18 and contracts under section 231 for the fiscal year, of

19 which not more than 10 percent of the 80 percent

20 shall be available to carry out section 225 for the fis21 cal year;

22 (2) shall use not more than 15 percent of the

23 grant funds to carry out State leadership activities

24 under section 223 for the fiscal year; and
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1 (3) shall use not more than 5 percent of the

2 grant funds, or $80,000, whichever is greater, for ad3 ministrative expenses of the eligible agency for the fis4 cal year.

5 (b) STATE SHARE REQUIREMENT.—

6 (1) IN GENERAL.—In order to receive a grant

7 from the Secretary under section 211(b) each eligible

8 agency shall provide an amount equal to 25 percent

9 of the total amount of funds expended for adult edu10 cation in the State or outlying area, except that the

11 Secretary may decrease the amount of funds required

12 under this subsection for an eligible agency serving an

13 outlying area.

14 (2) STATE’S SHARE.—An eligible agency’s funds

15 required under paragraph (1) may be in cash or in

16 kind, fairly evaluated, and shall include only non17 Federal funds that are used for adult education and

18 literacy activities in a manner that is consistent with

19 the purpose of this subtitle.

20 SEC. 223. STATE LEADERSHIP ACTIVITIES.

21 (a) IN GENERAL.—Each eligible agency shall use funds

22 made available under section 222(a)(2) for 1 or more of

23 the following activities:
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1 (1) Professional development and training, in2 cluding training in the use of software and

3 technology.

4 (2) Developing and disseminating curricula for

5 adult education and literacy activities.

6 (3) Monitoring and evaluating the quality of,

7 and improvement in, services and activities conducted

8 with assistance under this subtitle.

9 (4) Establishing challenging performance meas10 ures and levels of performance for literacy proficiency

11 in order to assess program quality and improvement.

12 (5) Integration of literacy instruction and occu13 pational skill training, and promoting linkages with

14 employers.

15 (6) Linkages with postsecondary institutions.

16 (7) Supporting State or regional networks of lit17 eracy resource centers.

18 (8) Other activities of statewide significance that

19 promote the purpose of this subtitle.

20 (b) COLLABORATION.—In carrying out this section, el21 igible agencies shall collaborate where possible and avoid

22 duplicating efforts in order to maximize the impact of the

23 activities described in subsection (a).

24 SEC. 224. STATE PLAN.

25 (a) 3-YEAR PLANS.—
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1 (1) IN GENERAL.—Each eligible agency desiring

2 a grant under this subtitle for any fiscal year shall

3 submit to, or have on file with, the Secretary a 3-year

4 State plan.

5 (2) COMPREHENSIVE PLAN OR APPLICATION.—

6 The eligible agency may submit the State plan as

7 part of a comprehensive plan or application for Fed8 eral education assistance.

9 (b) PLAN CONTENTS.—In developing the State plan,

10 and any revisions to the State plan, the eligible agency shall

11 include in the State plan or revisions—

12 (1) an objective assessment of the needs of indi13 viduals in the State for adult education and literacy

14 activities, including individuals most in need or

15 hardest to serve, such as educationally disadvantaged

16 adults, immigrants, individuals with limited English

17 proficiency, incarcerated individuals, homeless indi18 viduals, recipients of public assistance, and individ19 uals with disabilities;

20 (2) a description of the adult education and lit21 eracy activities that will be carried out with any

22 funds received under this subtitle;

23 (3) a description of how the eligible agency will

24 evaluate annually the effectiveness of the adult edu-
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1 cation and literacy activities based on the perform2 ance measures described in section 212;

3 (4) a description of how the eligible agency will

4 ensure that the data reported to the eligible agency

5 from eligible providers under this subtitle and the

6 data the eligible agency reports to the Secretary are

7 complete, accurate, and reliable;

8 (5) a description of the performance measures re9 quired under section 212(a) and how such perform10 ance measures and the expected levels of performance

11 will ensure improvement of adult education and lit12 eracy activities in the State or outlying area;

13 (6) an assurance that the funds received under

14 this subtitle will not be expended for any purpose

15 other than for activities under this subtitle;

16 (7) a description of how the eligible agency will

17 fund local activities in accordance with the priorities

18 described in section 242(a);

19 (8) a description of how the eligible agency will

20 determine which eligible providers are eligible for

21 funding in accordance with the preferences described

22 in section 242(b);

23 (9) a description of how funds will be used for

24 State leadership activities, which activities may in-
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1 clude professional development and training, instruc2 tional technology, and management technology;

3 (10) an assurance that the eligible agency will

4 expend the funds under this subtitle only in a manner

5 consistent with fiscal requirement in section 241;

6 (11) a description of the process that will be used

7 for public participation and comment with respect to

8 the State plan;

9 (12) a description of how the eligible agency will

10 develop program strategies for populations that in11 clude, at a minimum—

12 (A) low-income students;

13 (B) individuals with disabilities;

14 (C) single parents and displaced home15 makers; and

16 (D) individuals with multiple barriers to

17 educational enhancement;

18 (13) a description of the measures that will be

19 taken by the eligible agency to assure coordination of

20 and avoid duplication among—

21 (A) adult education activities authorized

22 under this subtitle;

23 (B) activities authorized under title III;

24 (C) programs authorized under the Wagner25 Peyser Act (29 U.S.C. 49 et seq.), title I of the
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1 Rehabilitation Act of 1973 (29 U.S.C. 720 et

2 seq.), part A of title IV of the Social Security

3 Act (42 U.S.C. 601 et seq.), section 6(d) of the

4 Food Stamp Act of 1977 (7 U.S.C. 2015(d)), and

5 title V of the Older Americans Act of 1965 (42

6 U.S.C. 3056 et seq.);

7 (D) a work program authorized under sec8 tion 6(o) of the Food Stamp Act of 1977 (7

9 U.S.C. 2015(o));

10 (E) activities authorized under chapter 2 of

11 title II of the Trade Act of 1974 (19 U.S.C. 2271

12 et seq.);

13 (F) activities authorized under chapter 41

14 of title 38, United States Code;

15 (G) activities carried out by the Bureau of

16 Apprenticeship and Training;

17 (H) training activities carried out by the

18 Department of Housing and Urban Develop19 ment; and

20 (I) programs authorized under State unem21 ployment 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.); and
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1 (14) the description and information specified in

2 paragraphs (8) and (16) of section 304(b).

3 (c) PLAN REVISIONS.—When changes in conditions or

4 other factors require substantial revisions to an approved

5 State plan, the eligible agency shall submit a revision to

6 the State plan to the Secretary.

7 (d) CONSULTATION.—The eligible agency shall—

8 (1) submit the State plan, and any revisions to

9 the State plan, to the Governor of the State for review

10 and comment; and

11 (2) ensure that any comments by the Governor

12 regarding the State plan, and any revision to the

13 State plan, are submitted to the Secretary.

14 (e) PLAN APPROVAL.—

15 (1) IN GENERAL.—The Secretary shall approve a

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

17 only if the Secretary determines that—

18 (A) the State plan, or revision, respectively,

19 meets the requirements of this section; and

20 (B) the State’s performance measures and

21 expected levels of performance under section 212

22 are sufficiently rigorous to meet the purpose of

23 this title.

24 (2) DISAPPROVAL.—The Secretary shall not fi25 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 establish

4 a peer review process to make recommendations re5 garding the approval of State plans and revisions to

6 the State plan.

7 SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND

8 OTHER INSTITUTIONALIZED INDIVIDUALS.

9 (a) PROGRAM AUTHORIZED.—From funds made avail10 able under section 222(a)(1) for a fiscal year, each eligible

11 agency shall carry out corrections education or education

12 for other institutionalized individuals.

13 (b) USES OF FUNDS.—The funds described in sub14 section (a) shall be used for the cost of educational programs

15 for criminal offenders in corrections institutions and for

16 other institutionalized individuals, including academic

17 programs for—

18 (1) basic education;

19 (2) special education programs as determined by

20 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 of

14 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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•S 1186 RS

1 viders have direct and equitable access to apply for grants

2 or contracts under this section.

3 (c) REQUIRED LOCAL ACTIVITIES.—Each eligible pro4 vider receiving a grant or contract under this subtitle shall

5 establish programs that provide instruction or services that

6 meet the purpose described in section 202(b), 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 the

17 eligible provider with respect to participant recruit18 ment, retention, and performance measures described

19 in section 212, will be met and reported to the eligible

20 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 adult

24 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 sum

3 that is made available under this subtitle to an eligible

4 provider—

5 (1) not less than 95 percent shall be expended for

6 carrying out adult education and literacy activities;

7 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 de12 scribed in subsection (a) are too restrictive to allow for ade13 quate planning, administration, personnel development,

14 and interagency coordination, the eligible provider shall ne15 gotiate with the eligible agency in order to determine an

16 adequate level of funds to be used for noninstructional pur17 poses.

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 State

23 or local public funds expended for adult education and lit24 eracy activities.

25 (b) REPRESENTATION.—The eligible agency shall pro26 vide 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, as

9 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 client

14 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 high

23 concentrations of individuals in poverty or with low

24 levels of literacy (including English language pro25 ficiency); and
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•S 1186 RS

1 (2) consider—

2 (A) the results, if any, of the evaluations re3 quired under section 244(a); and

4 (B) the degree to which the eligible provider

5 will coordinate with and utilize other literacy

6 and social services available in the community.

7 SEC. 243. INCENTIVE GRANTS.

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

9 States that exceed—

10 (1) the State performance measures established

11 by the Secretary of Education under this Act; and

12 (2) the State performance measures established

13 under title III.

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

15 this section, the Secretary shall give priority to those States

16 submitting a State unified plan as described in section 501

17 that is approved by the appropriate Secretaries as described

18 in such section.

19 (c) USE OF FUNDS.—A State that receives an incen20 tive grant under this section shall use the funds made avail21 able through the grant to carry out innovative programs

22 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 the

9 evaluation, an eligible agency determines that an eligible

10 provider is not making substantial progress in achieving

11 the purpose of this subtitle, the eligible agency may work

12 jointly with the eligible provider to develop an improvement

13 plan. If, after not more than 2 years of implementation of

14 the improvement plan, the eligible agency determines that

15 the eligible provider is not making substantial progress, the

16 eligible agency shall take whatever corrective action the eli17 gible agency deems necessary, which may include termi18 nation of funding or the implementation of alternative serv19 ice arrangements, consistent with State law. The eligible

20 agency shall take corrective action under the preceding sen21 tence only after the eligible agency has provided technical

22 assistance to the eligible provider and shall ensure, to the

23 extent practicable, that any corrective action the eligible

24 agency takes allows for continued services to and activities

25 for the individuals served by the eligible provider.

26 (c) STATE REPORT.—
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1 (1) IN GENERAL.—The eligible agency shall re2 port annually to the Secretary regarding the quality

3 and effectiveness of the adult education and literacy

4 activities funded through the eligible agency’s grants

5 or contracts under this subtitle, based on the perform6 ance measures and expected levels of performance in7 cluded in the State plan.

8 (2) INFORMATION.—The eligible agency shall in9 clude in the reports such information, in such form,

10 as the Secretary may require in order to ensure the

11 collection of uniform national data.

12 (3) AVAILABILITY.—The eligible agency shall

13 make available to the public the annual report under

14 this subsection.

15 (d) TECHNICAL ASSISTANCE.—If the Secretary deter16 mines that the eligible agency is not properly implementing

17 the eligible agency’s responsibilities under subsection (b), or

18 is not making substantial progress in meeting the purpose

19 of this subtitle, based on the performance measures and ex20 pected levels of performance included in the eligible agency’s

21 State plan, the Secretary shall work with the eligible agency

22 to implement improvement activities.

23 (e) WITHHOLDING OF FEDERAL FUNDS.—If, not ear24 lier than 2 years after implementing activities described in

25 subsection (d), the Secretary determines that the eligible
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•S 1186 RS

1 agency is not making sufficient progress, based on the eligi2 ble agency’s performance measures and expected levels of

3 performance, the Secretary, after notice and opportunity for

4 a hearing, shall withhold from the eligible agency all, or

5 a portion, of the eligible agency’s grant under this subtitle.

6 The Secretary may use funds withheld under the preceding

7 sentence to provide, through alternative arrangements, serv8 ices and activities within the State to meet the purpose of

9 this title.

10 SEC. 245. NATIONAL INSTITUTE FOR LITERACY.

11 (a) PURPOSE.—The purpose of this section is to estab12 lish a National Institute for Literacy that—

13 (1) provides national leadership regarding

14 literacy;

15 (2) coordinates literacy services and policy; and

16 (3) is a national resource for adult education

17 and literacy, by providing the best and most current

18 information available and supporting the creation of

19 new ways to offer improved literacy services.

20 (b) ESTABLISHMENT.—

21 (1) IN GENERAL.—There shall be a National In22 stitute for Literacy (in this section referred to as the

23 ‘‘Institute’’). The Institute shall be administered

24 under the terms of an interagency agreement entered

25 into by the Secretary with the Secretary of Labor and
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•S 1186 RS

1 the Secretary of Health and Human Services (in this

2 section referred to as the ‘‘Interagency Group’’). The

3 Secretary may include in the Institute any research

4 and development center, institute, or clearinghouse es5 tablished within the Department of Education the

6 purpose of which is determined by the Secretary to be

7 related to the purpose of the Institute.

8 (2) RECOMMENDATIONS.—The Interagency

9 Group shall consider the recommendations of the Na10 tional Institute for Literacy Advisory Board (in this

11 section referred to as the ‘‘Board’’) established under

12 subsection (e) in planning the goals of the Institute

13 and in the implementation of any programs to

14 achieve the goals. If the Board’s recommendations are

15 not followed, the Interagency Group shall provide a

16 written explanation to the Board concerning actions

17 the Interagency Group takes that are inconsistent

18 with the Board’s recommendations, including the rea19 sons for not following the Board’s recommendations

20 with respect to the actions. The Board may also re21 quest a meeting of the Interagency Group to discuss

22 the Board’s recommendations.

23 (3) DAILY OPERATIONS.—The daily operations of

24 the Institute shall be administered by the Director of

25 the Institute.
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•S 1186 RS

1 (c) DUTIES.—

2 (1) IN GENERAL.—In order to provide leadership

3 for the improvement and expansion of the system for

4 delivery of literacy services, the Institute is authorized

5 to—

6 (A) establish a national electronic data base

7 of information that disseminates information to

8 the broadest possible audience within the literacy

9 and basic skills field, and that includes—

10 (i) effective practices in the provision

11 of literacy and basic skills instruction, in12 cluding the integration of such instruction

13 with occupational skills training;

14 (ii) public and private literacy and

15 basic skills programs and Federal, State,

16 and local policies affecting the provision of

17 literacy services at the national, State, and

18 local levels;

19 (iii) opportunities for technical assist20 ance, meetings, conferences, and other op21 portunities that lead to the improvement of

22 literacy and basic skills services; and

23 (iv) a communication network for lit24 eracy programs, providers, social service

25 agencies, and students;
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•S 1186 RS

1 (B) coordinate support for the provision of

2 literacy and basic skills services across Federal

3 agencies and at the State and local levels;

4 (C) coordinate the support of research and

5 development on literacy and basic skills for

6 adults across Federal agencies, especially with

7 the Office of Educational Research and Improve8 ment in the Department of Education, and carry

9 out basic and applied research and development

10 on topics that are not being investigated by other

11 organizations or agencies;

12 (D) collect and disseminate information on

13 methods of advancing literacy;

14 (E) provide policy and technical assistance

15 to Federal, State, and local entities for the im16 provement of policy and programs relating to

17 literacy;

18 (F) fund a network of State or regional

19 adult literacy resource centers to assist State and

20 local public and private nonprofit efforts to im21 prove literacy by—

22 (i) encouraging the coordination of lit23 eracy services; and

24 (ii) serving as a link between the Insti25 tute and providers of adult education and
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•S 1186 RS

1 literacy activities for the purpose of sharing

2 information, data, research, expertise, and

3 literacy resources; and

4 (G) undertake other activities that lead to

5 the improvement of the Nation’s literacy delivery

6 system and that complement other such efforts

7 being undertaken by public and private agencies

8 and organizations.

9 (2) GRANTS, CONTRACTS, AND COOPERATIVE

10 AGREEMENTS.—The Institute may award grants to,

11 or enter into contracts or cooperative agreements

12 with, individuals, public or private institutions,

13 agencies, organizations, or consortia of such institu14 tions, agencies, or organizations to carry out the ac15 tivities of the Institute. Such grants, contracts, or

16 agreements shall be subject to the laws and regula17 tions that generally apply to grants, contracts, or

18 agreements entered into by Federal agencies.

19 (d) LITERACY LEADERSHIP.—

20 (1) IN GENERAL.—The Institute may, in con21 sultation with the Board, award fellowships, with

22 such stipends and allowances that the Director con23 siders necessary, to outstanding individuals pursuing

24 careers in adult education or literacy in the areas of

25 instruction, management, research, or innovation.
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1 (2) FELLOWSHIPS.—Fellowships awarded under

2 this subsection shall be used, under the auspices of the

3 Institute, to engage in research, education, training,

4 technical assistance, or other activities to advance the

5 field of adult education or literacy, including the

6 training of volunteer literacy providers at the na7 tional, State, or local level.

8 (3) INTERNSHIPS.—The Institute, in consulta9 tion with the Board, is authorized to award paid and

10 unpaid internships to individuals seeking to assist in

11 carrying out the Institute’s purpose and to accept as12 sistance from volunteers.

13 (e) NATIONAL INSTITUTE FOR LITERACY ADVISORY

14 BOARD.—

15 (1) ESTABLISHMENT.—

16 (A) IN GENERAL.—There shall be a Na17 tional Institute for Literacy Advisory Board,

18 which shall consist of 10 individuals appointed

19 by the President with the advice and consent of

20 the Senate.

21 (B) COMPOSITION.—The Board shall com22 prise individuals who are not otherwise officers

23 or employees of the Federal Government and who

24 are representative of such entities as—
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•S 1186 RS

1 (i) literacy organizations and provid2 ers of literacy services, including nonprofit

3 providers, providers of English as a second

4 language programs and services, social serv5 ice organizations, and eligible providers re6 ceiving assistance under this subtitle;

7 (ii) businesses that have demonstrated

8 interest in literacy programs;

9 (iii) literacy students, including lit10 eracy students with disabilities;

11 (iv) experts in the area of literacy

12 research;

13 (v) State and local governments;

14 (vi) State Directors of adult education;

15 and

16 (vii) labor organizations.

17 (2) DUTIES.—The Board shall—

18 (A) make recommendations concerning the

19 appointment of the Director and staff of the In20 stitute; and

21 (B) provide independent advice on the oper22 ation of the Institute.

23 (3) APPOINTMENTS.—

24 (A) IN GENERAL.—Appointments to the

25 Board made after the date of enactment of the
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•S 1186 RS

1 Workforce Investment Partnership Act shall be

2 for 3-year terms, except that the initial terms for

3 members may be established at 1, 2, or 3 years

in order to establish a rotation in which 1 4 ⁄3 of

5 the members are selected each year.

6 (B) VACANCIES.—Any member appointed to

7 fill a vacancy occurring before the expiration of

8 the term for which the member’s predecessor was

9 appointed shall be appointed only for the re10 mainder of that term. A member may serve after

11 the expiration of that member’s term until a suc12 cessor has taken office.

13 (4) OFFICERS.—The Chairperson and Vice

14 Chairperson of the Board shall be elected by the mem15 bers.

16 (5) MEETINGS.—The Board shall meet at the call

17 of the Chairperson or a majority of its members.

18 (f) GIFTS, BEQUESTS, AND DEVISES.—

19 (1) IN GENERAL.—The Institute may accept, ad20 minister, and use gifts or donations of services,

21 money, or property, whether real or personal, tangible

22 or intangible.

23 (2) RULES.—The Board shall establish written

24 rules setting forth the criteria to be used by the Insti25 tute in determining whether the acceptance of con-
536

•S 1186 RS

1 tributions of services, money, or property whether real

2 or personal, tangible or intangible, would reflect unfa3 vorably upon the ability of the Institute or any em4 ployee to carry out its responsibilities or official du5 ties in a fair and objective manner, or would com6 promise the integrity or the appearance of the integ7 rity of its programs or any official involved in those

8 programs.

9 (g) MAILS.—The Board and the Institute may use the

10 United States mails in the same manner and under the

11 same conditions as other departments and agencies of the

12 United States.

13 (h) STAFF.—The Interagency Group, after considering

14 recommendations made by the Board, shall appoint and fix

15 the pay of a Director.

16 (i) APPLICABILITY OF CERTAIN CIVIL SERVICE

17 LAWS.—The Director and staff of the Institute may be ap18 pointed without regard to the provisions of title 5, United

19 States Code, governing appointments in the competitive

20 service, and may be paid without regard to the provisions

21 of chapter 51 and subchapter III of chapter 53 of that title

22 relating to classification and General Schedule pay rates,

23 except that an individual so appointed may not receive pay

24 in excess of the annual rate of basic pay payable for level

25 IV of the Executive Schedule.
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•S 1186 RS

1 (j) EXPERTS AND CONSULTANTS.—The Institute may

2 procure temporary and intermittent services under section

3 3109(b) of title 5, United States Code.

4 (k) REPORT.—The Institute shall submit a biennial re5 port to the Interagency Group and Congress.

6 (l) NONDUPLICATION.—The Institute shall not dupli7 cate any functions carried out by the Secretary, the Sec8 retary of Labor, or the Secretary of Health and Human

9 Services under this subtitle. This subsection shall not be

10 construed to prohibit the Secretaries from delegating such

11 functions to the Institute.

12 (m) FUNDING.—Any amounts appropriated to the Sec13 retary, the Secretary of Labor, the Secretary of Health and

14 Human Services, or any other department that participates

15 in the Institute for purposes that the Institute is authorized

16 to perform under this section may be provided to the Insti17 tute for such purposes.

18 SEC. 246. AUTHORIZATION OF APPROPRIATIONS.

19 There is authorized to be appropriated to carry out

20 this title such sums as may be necessary for fiscal year 1999

21 and each of the 5 succeeding fiscal years.

22 Subtitle B—Repeal

23 SEC. 251. REPEAL.

24 (a) REPEAL.—The Adult Education Act (20 U.S.C.

25 1201 et. seq.) is repealed.
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•S 1186 RS

1 (b) CONFORMING AMENDMENTS.—

2 (1) REFUGEE EDUCATION ASSISTANCE ACT.—

3 Subsection (b) of section 402 of the Refugee Education

4 Assistance Act of 1980 (8 U.S.C. 1522 note) is re5 pealed.

6 (2) ELEMENTARY AND SECONDARY EDUCATION

7 ACT OF 1965.—

8 (A) SECTION 1202 OF ESEA.—Section

9 1202(c)(1) of the Elementary and Secondary

10 Education Act of 1965 (20 U.S.C. 6362(c)(1)) is

11 amended by striking ‘‘Adult Education Act’’ and

12 inserting ‘‘Workforce Investment Partnership Act

13 of 1997’’.

14 (B) SECTION 1205 OF ESEA.—Section

15 1205(8)(B) of such Act (20 U.S.C. 6365(8)(B)) is

16 amended by striking ‘‘Adult Education Act’’ and

17 inserting ‘‘Workforce Investment Partnership Act

18 of 1997’’.

19 (C) SECTION 1206 OF ESEA.—Section

20 1206(a)(1)(A) of such Act (20 U.S.C.

21 6366(a)(1)(A)) is amended by striking ‘‘an adult

22 basic education program under the Adult Edu23 cation Act’’ and inserting ‘‘adult education and

24 literacy activities under the Workforce Invest25 ment Partnership Act of 1997’’.
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•S 1186 RS

1 (D) SECTION 3113 OF ESEA.—Section

2 3113(1) of such Act (20 U.S.C. 6813(1)) is

3 amended by striking ‘‘section 312 of the Adult

4 Education Act’’ and inserting ‘‘section 2 of the

5 Workforce Investment Partnership Act of 1997’’.

6 (E) SECTION 9161 OF ESEA.—Section

7 9161(2) of such Act (20 U.S.C. 7881(2)) is

8 amended by striking ‘‘section 312(2) of the Adult

9 Education Act’’ and inserting ‘‘section 2 of the

10 Workforce Investment Partnership Act of 1997’’.

11 (3) OLDER AMERICANS ACT OF 1965.—Section

12 203(b)(8) of the Older Americans Act of 1965 (42

13 U.S.C. 3013(b)(8)) is amended by striking ‘‘Adult

14 Education Act’’ and inserting ‘‘Workforce Investment

15 Partnership Act of 1997’’.

16 (4) NATIONAL LITERACY ACT OF 1991.—The Na17 tional Literacy Act of 1991 (20 U.S.C. 1201 note) is

18 repealed.
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•S 1186 RS

1 TITLE III—WORKFORCE INVEST2 MENT AND RELATED ACTIVI3 TIES

4 Subtitle A—Workforce Investment

5 Activities

6 CHAPTER 1—ALLOTMENTS TO STATES

7 FOR ADULT EMPLOYMENT AND TRAIN8 ING ACTIVITIES, DISLOCATED WORK9 ER EMPLOYMENT AND TRAINING AC10 TIVITIES, AND YOUTH ACTIVITIES

11 SEC. 301. GENERAL AUTHORIZATION.

12 The Secretary of Labor shall make an allotment to

13 each State that has a State plan approved under section

14 304 and a grant to each outlying area that complies with

15 the requirements of this title, to enable the State or outlying

16 area to assist local areas in providing, through a statewide

17 workforce investment system—

18 (1) adult employment and training activities;

19 (2) dislocated worker employment and training

20 activities; and

21 (3) youth activities, including summer employ22 ment opportunities, tutoring, activities to promote

23 study skills, alternative secondary school services, em24 ployment skill training, adult mentoring, and sup25 portive services.
541

•S 1186 RS

1 SEC. 302. STATE ALLOTMENTS.

2 (a) IN GENERAL.—The Secretary shall—

3 (1) make allotments and grants from the total

4 amount appropriated under section 322(a) for a fis5 cal year in accordance with subsection (b)(1);

6 (2)(A) reserve 20 percent of the amount appro7 priated under section 322(b) for a fiscal year for use

8 under sections 366(b)(2), 367(f), and 369; and

9 (B) make allotments and grants from 80 percent

10 of the amount appropriated under section 322(b) for

11 a fiscal year in accordance with subsection (b)(2);

12 and

13 (3)(A) for each fiscal year in which the amount

14 appropriated under section 322(c) exceeds

15 $1,000,000,000, reserve a portion determined under

16 subsection (b)(3)(A) of the amount appropriated

17 under section 322(c) for use under sections 362 and

18 364; and

19 (B) use the remainder of the amount appro20 priated under section 322(c) for a fiscal year to make

21 allotments and grants in accordance with subpara22 graphs (B) and (C) of subsection (b)(3) and make

23 funds available for use under section 361.

24 (b) ALLOTMENT AMONG STATES.—

25 (1) ADULT EMPLOYMENT AND TRAINING ACTIVI26 TIES.—
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•S 1186 RS

1 (A) OUTLYING AREAS.—

2 (i) IN GENERAL.—From the amount

3 made available under subsection (a)(1) for a

4 fiscal year, the Secretary shall reserve not

more than 1 5 ⁄4 of 1 percent—

6 (I) to provide assistance to the

7 outlying areas to carry out adult em8 ployment and training activities; and

9 (II) for each of the fiscal years

10 1999 through 2004, to carry out the

11 competition described in clause (iii),

12 except that the amount reserved to

13 carry out such clause for any such fis14 cal year shall not exceed the amount

15 reserved for the Freely Associated

16 States for fiscal year 1998, from

17 amounts reserved under section

18 202(a)(1) of the Job Training Partner19 ship Act (29 U.S.C. 1602(a)(1)) (as in

20 effect on the day before the date of en21 actment of this Act).

22 (ii) APPLICATION.—To be eligible to

23 receive a grant under this subparagraph, an

24 outlying area shall submit an application

25 to the Secretary at such time, in such man-
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•S 1186 RS

1 ner, and containing such information and

2 assurances as the Secretary may require.

3 (iii) COMPETITIVE GRANTS.—The Sec4 retary shall use funds described in clause

5 (i)(II) to make grants to outlying areas to

6 carry out adult employment and training

7 activities.

8 (iv) BASIS.—The Secretary shall make

9 grants pursuant to clause (iii) on a com10 petitive basis and pursuant to the rec11 ommendations of experts in the field of em12 ployment and training, working through the

13 Pacific Region Educational Laboratory in

14 Honolulu, Hawaii.

15 (v) ASSISTANCE REQUIREMENTS.—Any

16 Freely Associated State that desires to re17 ceive a grant made under this subpara18 graph shall include in the application of the

19 State for assistance—

20 (I) information demonstrating

21 that the State will meet all conditions

22 of the regulations described in clause

23 (ix); and

24 (II) an assurance that, notwith25 standing any other provision of this
544

•S 1186 RS

1 title, the State will use the amounts

2 made available through such grants

3 only for the direct provision of services.

4 (vi) TERMINATION OF ELIGIBILITY.—

5 Notwithstanding any other provision of law,

6 the Freely Associated States shall not re7 ceive any funds under this subparagraph

8 for any program year that begins after Sep9 tember 30, 2004.

10 (vii) ADMINISTRATIVE COSTS.—The

11 Secretary may provide not more than 5

12 percent of the amount made available for

13 grants under clause (iii) to pay the admin14 istrative costs of the Pacific Region Edu15 cational Laboratory in Honolulu, Hawaii,

16 regarding activities assisted under this sub17 paragraph.

18 (viii) ADDITIONAL REQUIREMENT.—

19 The provisions of Public Law 95–134, per20 mitting the consolidation of grants by the

21 outlying areas, shall not apply to funds

22 provided to those areas, including the Free23 ly Associated States, under this subpara24 graph.
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•S 1186 RS

1 (ix) REGULATIONS.—The Secretary

2 shall issue regulations specifying require3 ments of this title that apply to outlying

4 areas receiving funds under this subpara5 graph.

6 (B) STATES.—

7 (i) IN GENERAL.—After determining

8 the amount to be reserved under subpara9 graph (A), the Secretary shall allot the re10 mainder of the amount referred to in sub11 section (a)(1) for a fiscal year to the States

12 pursuant to clause (ii) for adult employ13 ment and training activities.

14 (ii) FORMULA.—Subject to clauses (iii)

15 and (iv), of the remainder—

(I) 331 16 ⁄3 percent shall be allotted

17 on the basis of the relative number of

18 unemployed individuals in areas of

19 substantial unemployment in each

20 State, compared to the total number of

21 unemployed individuals in areas of

22 substantial unemployment in all

23 States;

(II) 331 24 ⁄3 percent shall be allotted

25 on the basis of the relative excess num-
546

•S 1186 RS

1 ber of unemployed individuals in each

2 State, compared to the total excess

3 number of unemployed individuals in

4 all States; and

(III) 331 5 ⁄3 percent shall be allotted

6 on the basis of the relative number of

7 disadvantaged adults in each State,

8 compared to the total number of dis9 advantaged adults in all States.

10 (iii) MINIMUM AND MAXIMUM PER11 CENTAGES.—

12 (I) MINIMUM PERCENTAGE.—No

13 State shall receive an allotment per14 centage for a fiscal year that is less

15 than 90 percent of the allotment per16 centage of the State for the preceding

17 fiscal year.

18 (II) MAXIMUM PERCENTAGE.—No

19 State shall receive an allotment per20 centage for a fiscal year that is more

21 than 130 percent of the allotment per22 centage of the State for the preceding

23 fiscal year.

24 (iv) SMALL STATE MINIMUM ALLOT25 MENT.—No State shall receive an allotment
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•S 1186 RS

1 under this subparagraph that is less than

1 2 ⁄2 of 1 percent of the remainder described

3 in clause (i) for a fiscal year. Amounts nec4 essary for increasing such allotments to

5 States to comply with the preceding sen6 tence shall be obtained by ratably reducing

7 the allotments to be made to other States

8 under this subparagraph.

9 (v) DEFINITIONS.—In this subpara10 graph:

11 (I) ALLOTMENT PERCENTAGE.—

12 The term ‘‘allotment percentage’’, used

13 with respect to fiscal year 1999 or a

14 subsequent fiscal year, means a per15 centage of the remainder described in

16 clause (i), received through an allot17 ment made under this subparagraph,

18 for the fiscal year. The term, used with

19 respect to fiscal year 1998, means the

20 percentage of the amounts allocated

21 under section 202(b) of the Job Train22 ing Partnership Act (29 U.S.C.

23 1602(b)) (as in effect on the day before

24 the date of enactment of this Act) re25 ceived under such section by service de-
548

•S 1186 RS

1 livery areas in the State involved for

2 fiscal year 1998.

3 (II) AREA OF SUBSTANTIAL UN4 EMPLOYMENT.—The term ‘‘area of sub5 stantial unemployment’’ means any

6 area that is of sufficient size and scope

7 to sustain a program of workforce in8 vestment activities carried out under

9 this subtitle and that has an average

10 rate of unemployment of at least 6.5

11 percent for the most recent 12 months,

12 as determined by the Secretary. For

13 purposes of this subclause, determina14 tions of areas of substantial unemploy15 ment shall be made once each fiscal

16 year.

17 (III) DISADVANTAGED ADULT.—

18 The term ‘‘disadvantaged adult’’ means

19 an individual who is not less than age

20 22 and not more than age 72 and is a

21 low-income individual.

22 (IV) EXCESS NUMBER.—The term

23 ‘‘excess number’’ means the number of

24 unemployed individuals in excess of
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•S 1186 RS

1 4.5 percent of the civilian labor force

2 in a State.

3 (2) DISLOCATED WORKER EMPLOYMENT AND

4 TRAINING.—

5 (A) OUTLYING AREAS.—

6 (i) IN GENERAL.—From the amount

7 made available under subsection (a)(2)(B)

8 for a fiscal year, the Secretary shall reserve

not more than 1 9 ⁄4 of 1 percent—

10 (I) to provide assistance to the

11 outlying areas to carry out dislocated

12 worker employment and training ac13 tivities; and

14 (II) for each of the fiscal years

15 1999 through 2004, 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 section 302(b)

23 of the Job Training Partnership Act

24 (29 U.S.C. 1652(b)) (as in effect on the
550

•S 1186 RS

1 day before the date of enactment of this

2 Act).

3 (ii) APPLICATION.—To be eligible to

4 receive a grant under this subparagraph, an

5 outlying area shall submit an application

6 to the Secretary at such time, in such man7 ner, and containing such information and

8 assurances as the Secretary may require.

9 (iii) COMPETITIVE GRANTS.—The Sec10 retary shall use funds described in clause

11 (i)(II) to make grants to outlying areas to

12 carry out dislocated worker employment

13 and training activities.

14 (iv) BASIS.—The Secretary shall make

15 grants pursuant to clause (iii) on a com16 petitive basis and pursuant to the rec17 ommendations of experts in the field of em18 ployment and training, working through the

19 Pacific Region Educational Laboratory in

20 Honolulu, Hawaii.

21 (v) ASSISTANCE REQUIREMENTS.—Any

22 Freely Associated State that desires to re23 ceive a grant made under this subpara24 graph shall include in the application of the

25 State for assistance—
551

•S 1186 RS

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 services.

10 (vi) TERMINATION OF ELIGIBILITY.—

11 Notwithstanding any other provision of law,

12 the Freely Associated States shall not re13 ceive any funds under this subparagraph

14 for any program year that begins after Sep15 tember 30, 2004.

16 (vii) ADMINISTRATIVE COSTS.—The

17 Secretary may provide not more than 5

18 percent of the amount made available for

19 grants under clause (iii) to pay the admin20 istrative costs of the Pacific Region Edu21 cational Laboratory in Honolulu, Hawaii,

22 regarding activities assisted under this sub23 paragraph.

24 (viii) ADDITIONAL REQUIREMENT.—

25 The provisions of Public Law 95–134, per-
552

•S 1186 RS

1 mitting the consolidation of grants by the

2 outlying areas, shall not apply to funds

3 provided to those areas, including the Free4 ly Associated States, under this subpara5 graph.

6 (ix) REGULATIONS.—The Secretary

7 shall issue regulations specifying require8 ments of this title that apply to outlying

9 areas receiving funds under this subpara10 graph.

11 (B) STATES.—

12 (i) IN GENERAL.—After determining

13 the amount to be reserved under subpara14 graph (A), the Secretary shall allot the re15 mainder of the amount referred to in sub16 section (a)(2)(B) for a fiscal year to the

17 States pursuant to clause (ii) for dislocated

18 worker employment and training activities.

19 (ii) FORMULA.—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 compared to the total number of unem24 ployed individuals in all States;
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•S 1186 RS

(II) 331 1 ⁄3 percent shall be allotted

2 on the basis described in paragraph

3 (1)(B)(ii)(II); and

(III) 331 4 ⁄3 percent shall be allotted

5 on the basis of the relative number of

6 individuals in each State who have

7 been unemployed for 15 weeks or more,

8 compared to the total number of indi9 viduals in all States who have been un10 employed for 15 weeks or more.

11 (3) YOUTH ACTIVITIES.—

12 (A) YOUTH OPPORTUNITY GRANTS.—

13 (i) IN GENERAL.—For each fiscal year

14 in which the amount appropriated under

15 section 322(c) exceeds $1,000,000,000, the

16 Secretary shall reserve a portion of the

17 amount to provide youth opportunity

18 grants under section 364 and provide youth

19 activities under section 362.

20 (ii) PORTION.—The portion referred to

21 in clause (i) shall equal, for a fiscal year—

22 (I) except as provided in sub23 clause (II), the difference obtained by

24 subtracting $1,000,000,000 from the

25 amount described in clause (i); and
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•S 1186 RS

1 (II) for any fiscal year in which

2 the amount is $1,250,000,000 or great3 er, $250,000,000.

4 (iii) YOUTH ACTIVITIES FOR FARM5 WORKERS.—From the portion described in

6 clause (i) for a fiscal year, the Secretary

7 shall make available $10,000,000 to provide

8 youth activities under section 362.

9 (B) OUTLYING AREAS.—

10 (i) IN GENERAL.—From the amount

11 made available under subsection (a)(3)(B)

12 for a fiscal year, the Secretary shall reserve

not more than 1 13 ⁄4 of 1 percent—

14 (I) to provide assistance to the

15 outlying areas to carry out youth ac16 tivities; and

17 (II) for each of the fiscal years

18 1999 through 2004, to carry out the

19 competition described in clause (iii),

20 except that the amount reserved to

21 carry out such clause for any such fis22 cal year shall not exceed the amount

23 reserved for the Freely Associated

24 States for fiscal year 1998, from

25 amounts reserved under sections 252(a)
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•S 1186 RS

1 and 262(a)(1) of the Job Training

2 Partnership Act (29 U.S.C. and

3 1631(a) and 1642(a)(1)) (as in effect

4 on the day before the date of enactment

5 of this Act).

6 (ii) APPLICATION.—To be eligible to

7 receive a grant under this subparagraph, an

8 outlying area shall submit an application

9 to the Secretary at such time, in such man10 ner, and containing such information and

11 assurances as the Secretary may require.

12 (iii) COMPETITIVE GRANTS.—The Sec13 retary shall use funds described in clause

14 (i)(II) to make grants to outlying areas to

15 carry out youth activities.

16 (iv) BASIS.—The Secretary shall make

17 grants pursuant to clause (iii) on a com18 petitive basis and pursuant to the rec19 ommendations of experts in the field of em20 ployment and training, working through the

21 Pacific Region Educational Laboratory in

22 Honolulu, Hawaii.

23 (v) ASSISTANCE REQUIREMENTS.—Any

24 Freely Associated State that desires to re25 ceive a grant made under this subpara-
556

•S 1186 RS

1 graph shall include in the application of the

2 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 services.

12 (vi) TERMINATION OF ELIGIBILITY.—

13 Notwithstanding any other provision of law,

14 the Freely Associated States shall not re15 ceive any funds under this subparagraph

16 for any program year that begins after Sep17 tember 30, 2004.

18 (vii) ADMINISTRATIVE COSTS.—The

19 Secretary may provide not more than 5

20 percent of the amount made available for

21 grants under clause (iii) to pay the admin22 istrative costs of the Pacific Region Edu23 cational Laboratory in Honolulu, Hawaii,

24 regarding activities assisted under this sub25 paragraph.
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•S 1186 RS

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 Free6 ly Associated States, under this subpara7 graph.

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 (C) STATES.—

14 (i) IN GENERAL.—After determining

15 the amounts to be reserved under subpara16 graph (A) (if any) and subparagraph (B),

17 the Secretary shall—

18 (I) from the amount referred to in

19 subsection (a)(3)(B) for a fiscal year,

20 make available $15,000,000 to provide

21 youth activities under section 361; and

22 (II) allot the remainder of the

23 amount referred to in subsection

24 (a)(3)(B) for a fiscal year to the States
558

•S 1186 RS

1 pursuant to clause (ii) for youth ac2 tivities.

3 (ii) FORMULA.—Subject to clause (iii),

4 of the remainder—

(I) 331 5 ⁄3 percent shall be allotted

6 on the basis described in paragraph

7 (1)(B)(ii)(I);

(II) 331 8 ⁄3 percent shall be allotted

9 on the basis described in paragraph

10 (1)(B)(ii)(II); and

(III) 331 11 ⁄3 percent shall be allotted

12 on the basis of the relative number of

13 disadvantaged youth in each State,

14 compared to the total number of dis15 advantaged youth in all States.

16 (iii) MINIMUM PERCENTAGE; MAXIMUM

17 PERCENTAGE; SMALL STATE MINIMUM AL18 LOTMENT.—

19 (I) IN GENERAL.—Except as pro20 vided in subclause (II), the require21 ments of clauses (iii), (iv), and (v) of

22 paragraph (1)(B) shall apply to allot23 ments made under this subparagraph

24 in the same manner and to the same

25 extent as the requirements apply to al-
559

•S 1186 RS

1 lotments made under paragraph

2 (1)(B).

3 (II) EXCEPTIONS.—For purposes

4 of applying the requirements of those

5 clauses under this subparagraph—

6 (aa) references in those

7 clauses to the remainder described

8 in clause (i) of paragraph (1)(B)

9 shall be considered to be references

10 to the remainder described in

11 clause (i)(II) of this subpara12 graph; and

13 (bb) the term ‘‘allotment per14 centage’’, used with respect to fis15 cal year 1998, means the percent16 age of the amounts allocated

17 under sections 252(b) and 262(b)

18 of the Job Training Partnership

19 Act (29 U.S.C. 1631(b) and

20 1642(b)) (as in effect on the day

21 before the date of enactment of

22 this Act) received under such sec23 tions by service delivery areas in

24 the State involved for fiscal year

25 1998.
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•S 1186 RS

1 (iv) DEFINITION.—In this subpara2 graph, the term ‘‘disadvantaged youth’’

3 means an individual who is not less than

4 age 14 and is not more than age 21 and is

5 a low-income individual.

6 (4) DEFINITION.—In this subsection, the term

7 ‘‘Freely Associated States’’ means the Republic of the

8 Marshall Islands, the Federated States of Micronesia,

9 and the Republic of Palau.

10 SEC. 303. STATEWIDE PARTNERSHIP.

11 (a) IN GENERAL.—The Governor of a State shall estab12 lish and appoint the members of a statewide partnership

13 to assist in the development of the State plan described in

14 section 304 and carry out the functions described in sub15 section (d).

16 (b) MEMBERSHIP.—

17 (1) IN GENERAL.—The statewide partnership

18 shall include—

19 (A) the Governor;

20 (B) representatives, appointed by the Gov21 ernor, who—

22 (i) are representatives of business in

23 the State;

24 (ii) are owners of businesses, chief ex25 ecutives or operating officers of private
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•S 1186 RS

1 businesses, and other business executives or

2 employers with optimum policymaking or

3 hiring authority, including members of

4 local partnerships described in section

5 308(c)(2)(A)(i);

6 (iii) represent businesses with employ7 ment opportunities that reflect the employ8 ment opportunities of the State; and

9 (iv) are appointed from among indi10 viduals nominated by State business orga11 nizations and business trade associations;

12 (C) representatives, appointed by the Gov13 ernor, who are individuals who have optimum

14 policymaking authority, including—

15 (i) representatives of—

16 (I) chief elected officials (rep17 resenting both cities and counties,

18 where appropriate);

19 (II) labor organizations, who have

20 been nominated by State labor federa21 tions; and

22 (III) individuals, and organiza23 tions, that have experience relating to

24 youth activities;
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•S 1186 RS

1 (ii) the eligible agency officials respon2 sible for vocational education, including

3 postsecondary vocational education, and for

4 adult education and literacy, and the State

5 officials responsible for postsecondary edu6 cation (including education in community

7 colleges); and

8 (iii) the State agency official respon9 sible for vocational rehabilitation and,

10 where applicable, the State agency official

11 responsible for providing vocational reha12 bilitation program activities for the blind;

13 (D) such other State agency officials as the

14 Governor may designate, such as State agency

15 officials carrying out activities relating to em16 ployment and training, economic development,

17 public assistance, veterans, youth, juvenile justice

18 and the employment service established under the

19 Wagner-Peyser Act (29 U.S.C. 49 et seq.); and

20 (E) two members of each chamber of the

21 State legislature, appointed by the appropriate

22 presiding officer of the chamber.

23 (2) MAJORITY.—A majority of the members of

24 the statewide partnership shall be representatives de25 scribed in paragraph (1)(B).
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•S 1186 RS

1 (c) CHAIRMAN.—The Governor shall select a chair2 person for the statewide partnership from among the rep3 resentatives described in subsection (b)(1)(B).

4 (d) FUNCTIONS.—In addition to developing the State

5 plan, the statewide partnership shall—

6 (1) advise the Governor on the development of a

7 comprehensive statewide workforce investment system;

8 (2) assist the Governor in preparing the annual

9 report to the Secretaries described in section 321(d);

10 (3) assist the Governor in developing the state11 wide labor market information system described in

12 section 15(e) of the Wagner-Peyser Act; and

13 (4) assist in the monitoring and continuous im14 provement of the performance of the statewide

15 workforce investment system, including the evaluation

16 of the effectiveness of workforce investment activities

17 carried out under this subtitle in serving the needs of

18 employers seeking skilled employees and individuals

19 seeking services.

20 (e) AUTHORITY OF GOVERNOR.—

21 (1) AUTHORITY.—The Governor shall have the

22 final authority to determine the contents of and sub23 mit the State plan described in section 304.
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•S 1186 RS

1 (2) PROCESS.—Prior to the date on which the

2 Governor submits a State plan under section 304, the

3 Governor shall—

4 (A) make available copies of a proposed

5 State plan to the public;

6 (B) allow members of the statewide partner7 ship and members of the public to submit com8 ments on the proposed State plan to the Gov9 ernor, not later than the end of the 30-day pe10 riod beginning on the date on which the proposed

11 State plan is made available; and

12 (C) include with the State plan submitted

13 to the Secretary under section 304 any such com14 ments that represent disagreement with the plan.

15 SEC. 304. STATE PLAN.

16 (a) IN GENERAL.—For a State to be eligible to receive

17 an allotment under section 302, the Governor of the State

18 shall submit to the Secretary for approval a single com19 prehensive State plan (referred to in this title as the ‘‘State

20 plan’’) that outlines a 3-year strategy for the statewide

21 workforce investment system of the State and that meets the

22 requirements of section 303 and this section.

23 (b) CONTENTS.—The State plan shall include—

24 (1) a description of the statewide partnership de25 scribed in section 303 used in developing the plan;
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1 (2) a description of State-imposed requirements

2 for the statewide workforce investment system;

3 (3) a description of the State performance meas4 ures developed for the workforce investment activities

5 to be carried out through the system, that includes in6 formation identifying the State performance meas7 ures, established in accordance with section 321(b);

8 (4) information describing—

9 (A) the needs of the State with regard to

10 current and projected employment opportunities;

11 (B) the job skills necessary to obtain the

12 needed employment opportunities;

13 (C) the economic development needs of the

14 State; and

15 (D) the type and availability of workforce

16 investment activities in the State;

17 (5) an identification of local areas designated in

18 the State, including a description of the process used

19 for the designation of such areas, which shall—

20 (A) ensure a linkage between participants

21 in workforce investment activities funded under

22 this subtitle, and local employment opportuni23 ties;
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1 (B) ensure that a significant portion of the

2 population that lives in the local area also works

3 in the same local area;

4 (C) ensure cooperation and coordination of

5 activities between neighboring local areas; and

6 (D) take into consideration State economic

7 development areas;

8 (6) an identification of criteria for the appoint9 ment of members of local partnerships based on the

10 requirements of section 308;

11 (7) the detailed plans required under section 8 of

12 the Wagner-Peyser Act;

13 (8) a description of the measures that will be

14 taken by the State to assure coordination of and

15 avoid duplication among—

16 (A) workforce investment activities author17 ized under this subtitle;

18 (B) other activities authorized under this

19 title;

20 (C) activities authorized under title I or II;

21 (D) programs authorized under the Wagner22 Peyser Act (29 U.S.C. 49 et seq.), title I of the

23 Rehabilitation Act of 1973 (29 U.S.C. 720 et

24 seq.), part A of title IV of the Social Security

25 Act (42 U.S.C. 601 et seq.), and section 6(d) of
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1 the Food Stamp Act of 1977 (7 U.S.C. 2015(d)),

2 and activities authorized under title V of the

3 Older Americans Act of 1965 (42 U.S.C. 3056 et

4 seq.);

5 (E) work programs authorized under section

6 6(o) of the Food Stamp Act of 1977 (7 U.S.C.

7 2015(o));

8 (F) activities authorized under chapter 2 of

9 title II of the Trade Act of 1974 (19 U.S.C. 2271

10 et seq.);

11 (G) activities authorized under chapter 41

12 of title 38, United States Code;

13 (H) activities carried out by the Bureau of

14 Apprenticeship and Training;

15 (I) training activities carried out by the

16 Department of Housing and Urban Develop17 ment; and

18 (J) programs authorized under State unem19 ployment 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.);

24 (9) a description of the process used by the State

25 to provide an opportunity for public comment, and
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1 input into the development of the State plan, prior to

2 submission of the plan;

3 (10) a description of the process for the public to

4 comment on members of the local partnerships;

5 (11) a description of the length of terms and ap6 pointment processes for members of the statewide

7 partnership and local partnerships in the State;

8 (12) information identifying how the State will

9 leverage any funds the State receives under this sub10 title with other private and Federal resources;

11 (13) assurances that the State will provide, in

12 accordance with section 374, for fiscal control and

13 fund accounting procedures that may be necessary to

14 ensure the proper disbursement of, and accounting

15 for, funds paid to the State through the allotment

16 made under section 302;

17 (14) if appropriate, a description of a within18 State allocation formula—

19 (A) that is based on factors relating to ex20 cess poverty in local areas or excess unemploy21 ment above the State average in local areas; and

22 (B) through which the State may distribute

23 the funds the State receives under this subtitle

24 for adult employment and training activities or

25 youth activities to local areas;
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1 (15) an assurance that the funds made available

2 to the State through the allotment made under section

3 302 will supplement and not supplant other public

4 funds expended to provide activities described in this

5 subtitle;

6 (16) information indicating—

7 (A) how the services of one-stop partners in

8 the State will be provided through the one-stop

9 customer service system;

10 (B) how the costs of such services and the

11 operating costs of the system will be funded; and

12 (C) how the State will assist in the develop13 ment and implementation of the operating agree14 ment described in section 311(c);

15 (17) information specifying the actions that con16 stitute a conflict of interest prohibited in the State for

17 purposes of section 308(g)(2)(B);

18 (18) a description of a core set of consistently de19 fined data elements for reporting on the activities car20 ried out through the one-stop customer service system

21 in the State;

22 (19) with respect to employment and training

23 activities funded under this subtitle, information—

24 (A) describing the employment and training

25 activities that will be carried out with the funds
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•S 1186 RS

1 the State receives under this subtitle, and a de2 scription of how the State will provide rapid re3 sponse activities to dislocated workers;

4 (B) describing the State strategy for devel5 opment of a fully operational statewide one-stop

6 customer service system as described in section

7 315(b), including—

8 (i) criteria for use by chief elected offi9 cials and local partnerships, for designating

10 or certifying one-stop customer service cen11 ter operators, appointing one-stop partners,

12 and conducting oversight with respect to the

13 one-stop customer service system, for each

14 local area; and

15 (ii) the steps that the State will take

16 over the 3 years covered by the plan to en17 sure that all publicly funded labor exchange

18 services described in section 315(c)(2) or the

19 Wagner-Peyser Act (29 U.S.C. 49 et seq.),

20 will be available through the one-stop cus21 tomer service system of the State;

22 (C) describing the criteria used by the local

23 partnership in the development of the local plan

24 described in section 309; and
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1 (D) describing the procedures the State will

2 use to identify eligible providers of training serv3 ices, as required under this subtitle; and

4 (20) with respect to youth activities funded

5 under this subtitle, information—

6 (A) describing the youth activities that will

7 be carried out with the funds the State receives

8 under this subtitle;

9 (B) identifying the criteria to be used by

10 the local partnership in awarding grants under

11 section 313 for youth activities;

12 (C) identifying the types of criteria the

13 Governor and local partnerships will use to iden14 tify effective and ineffective youth activities and

15 eligible providers of such activities; and

16 (D) describing how the State will coordinate

17 the youth activities carried out in the State

18 under this subtitle with the services provided by

19 Job Corps centers in the State.

20 (c) PLAN SUBMISSION AND APPROVAL.—A State plan

21 submitted to the Secretary under this section by a Governor

22 shall be considered to be approved by the Secretary at the

23 end of the 60-day period beginning on the day the Secretary

24 receives the plan, unless the Secretary makes a written de25 termination, during the 60-day period, that—
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1 (1) the plan is inconsistent with a specific provi2 sion of this title; or

3 (2) the levels of performance have not been

4 agreed to pursuant to section 321(b)(4).

5 (d) MODIFICATIONS TO INITIAL PLAN.—A State may

6 submit, for approval by the Secretary, substantial modifica7 tions to the State plan in accordance with the requirements

8 of this section and section 303, as necessary, during the 3-

9 year period of the plan.

10 CHAPTER 2—ALLOCATIONS TO LOCAL

11 WORKFORCE INVESTMENT AREAS

12 SEC. 306. WITHIN STATE ALLOCATIONS.

13 (a) RESERVATIONS FOR STATE ACTIVITIES.—

14 (1) ADULT EMPLOYMENT AND TRAINING ACTIVI15 TIES, DISLOCATED WORKER EMPLOYMENT AND TRAIN16 ING ACTIVITIES, AND YOUTH ACTIVITIES.—The Gov17 ernor of a State shall reserve not more than 15 per18 cent of each of the amounts allotted to the State under

19 paragraphs (1)(B), (2)(B), and (3)(C)(ii) of section

20 302(b) for a fiscal year for statewide workforce invest21 ment activities described in subsections (b)(2) and (c)

22 of section 314.

23 (2) STATEWIDE RAPID RESPONSE ACTIVITIES.—

24 The Governor of the State shall reserve not more than

25 25 percent of the total amount allotted to the State
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•S 1186 RS

1 under section 302(b)(2)(B) for a fiscal year for state2 wide rapid response activities described in section

3 314(b)(1).

4 (b) WITHIN STATE ALLOCATION.—

5 (1) ALLOCATION.—The Governor of the State

6 shall allocate to the local areas the funds that are al7 lotted to the State under section 302(b) and are not

8 reserved under subsection (a) for the purpose of pro9 viding employment and training activities to eligible

10 participants pursuant to section 315 and youth ac11 tivities to eligible participants pursuant to section

12 316.

13 (2) METHODS.—The State, acting in accordance

14 with the State plan, and after consulting with chief

15 elected officials in the local areas, shall allocate—

16 (A) the funds that are allotted to the State

17 for adult employment and training activities

18 under section 302(b)(1)(B) and are not reserved

19 under subsection (a)(1), in accordance with

20 paragraph (3) or (4);

21 (B) the funds that are allotted to the State

22 for dislocated worker employment and training

23 activities under section 302(b)(2)(B) and are not

24 reserved under paragraph (1) or (2) of subsection

25 (a), in accordance with paragraph (3); and
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1 (C) the funds that are allotted to the State

2 for youth activities under section

3 302(b)(3)(C)(ii) and are not reserved under sub4 section (a)(1), in accordance with paragraph (3)

5 or (4).

6 (3) ADULT EMPLOYMENT AND TRAINING ACTIVI7 TIES, DISLOCATED WORKER EMPLOYMENT AND TRAIN8 ING ACTIVITIES, AND YOUTH ACTIVITIES FORMULA AL9 LOCATIONS.—

10 (A) ADULT EMPLOYMENT AND TRAINING AC11 TIVITIES.—In allocating the funds described in

12 paragraph (2)(A) to local areas, a State may al13 locate—

(i) 331 14 ⁄3 percent of the funds on the

15 basis described in section

16 302(b)(1)(B)(ii)(I);

(ii) 331 17 ⁄3 percent of the funds on the

18 basis described in section

19 302(b)(1)(B)(ii)(II); and

(iii) 331 20 ⁄3 percent of the funds on the

21 basis described in section

22 302(b)(1)(B)(ii)(III).

23 (B) DISLOCATED WORKER EMPLOYMENT

24 AND TRAINING ACTIVITIES.—In allocating the
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1 funds described in paragraph (2)(B) to local

2 areas, a State shall allocate—

(i) 331 3 ⁄3 percent of the funds on the

4 basis described in section

5 302(b)(2)(B)(ii)(I);

(ii) 331 6 ⁄3 percent of the funds on the

7 basis described in section

8 302(b)(2)(B)(ii)(II); and

(iii) 331 9 ⁄3 percent of the funds on the

10 basis described in section

11 302(b)(2)(B)(ii)(III).

12 (C) YOUTH ACTIVITIES.—In allocating the

13 funds described in paragraph (2)(C) to local

14 areas, a State may allocate—

(i) 331 15 ⁄3 percent of the funds on the

16 basis described in section

17 302(b)(3)(C)(ii)(I);

(ii) 331 18 ⁄3 percent of the funds on the

19 basis described in section

20 302(b)(3)(C)(ii)(II); and

(iii) 331 21 ⁄3 percent of the funds on the

22 basis described in section

23 302(b)(3)(C)(ii)(III).
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1 (D) APPLICATION.—For purposes of carry2 ing out subparagraphs (A), (B), and (C), and

3 subparagraphs (A) and (B) of paragraph (4)—

4 (i) references in section 302(b) to a

5 State shall be deemed to be references to a

6 local area; and

7 (ii) references in section 302(b) to all

8 States shall be deemed to be references to all

9 local areas in the State involved.

10 (4) ADULT EMPLOYMENT AND TRAINING AND

11 YOUTH DISCRETIONARY ALLOCATIONS.—

12 (A) ADULT EMPLOYMENT AND TRAINING AC13 TIVITIES.—In lieu of making the allocation de14 scribed in paragraph (3)(A), in allocating the

15 funds described in paragraph (2)(A) to local

16 areas, a State may distribute—

17 (i) a portion equal to not less than 70

18 percent of the funds in accordance with

19 paragraph (3)(A); and

20 (ii) the remaining portion of the funds

21 on the basis of a formula that—

22 (I) takes into consideration fac23 tors relating to excess poverty in local

24 areas or excess unemployment above

25 the State average in local areas; and
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•S 1186 RS

1 (II) was developed by the state2 wide partnership and approved by the

3 Secretary as part of the State plan.

4 (B) YOUTH ACTIVITIES.—In lieu of making

5 the allocation described in paragraph (3)(C), in

6 allocating the funds described in paragraph

7 (2)(C) to local areas, a State may distribute—

8 (i) a portion equal to not less than 70

9 percent of the funds in accordance with

10 paragraph (3)(C); and

11 (ii) the remaining portion of the funds

12 on the basis of a formula that—

13 (I) takes into consideration fac14 tors relating to excess youth poverty in

15 local areas or excess unemployment

16 above the State average in local areas;

17 and

18 (II) was developed by the state19 wide partnership and approved by the

20 Secretary as part of the State plan.

21 (5) LIMITATION.—

22 (A) IN GENERAL.—Of the amount allocated

23 to a local area under this subsection for a fiscal

24 year—
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1 (i) not more than 15 percent of the

2 amount allocated under paragraph (3)(A)

3 or (4)(A);

4 (ii) not more than 15 percent of the

5 amount allocated under paragraph (3)(B);

6 and

7 (iii) not more than 15 percent of the

8 amount allocated under paragraph (3)(C)

9 or (4)(B),

10 may be used by the local partnership for the ad11 ministrative cost of carrying out local workforce

12 investment activities described in section 315 or

13 316.

14 (B) USE OF FUNDS.—Funds made available

15 for administrative costs under subparagraph (A)

16 may be used for the administrative cost of any

17 of the local workforce investment activities de18 scribed in sections 315 and 316, regardless of

19 whether the funds were allocated under the provi20 sions described in clause (i), (ii), or (iii) of sub21 paragraph (A).

22 (C) REGULATIONS.—The Secretary, after

23 consulting with the Governors, shall develop and

24 issue regulations that define the term ‘‘adminis25 trative cost’’ for purposes of this title.
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1 (6) TRANSFER AUTHORITY.—A local partnership

2 may transfer, if such a transfer is approved by the

3 Governor, not more than 20 percent of the funds allo4 cated 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 offi14 cial in a local area shall serve as the fiscal agent

15 for, and shall be liable for any misuse of, the

16 funds allocated to the local area under this sec17 tion, unless the chief elected official reaches an

18 agreement with the Governor for the Governor to

19 act as the fiscal agent and bear such liability.

20 (B) DISBURSAL.—The fiscal agent shall dis21 burse such funds for workforce investment activi22 ties at the direction of the local partnership, pur23 suant to the requirements of this title, if the di24 rection does not violate a provision of this Act.

25 The fiscal agent shall disburse funds immediately
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•S 1186 RS

1 on receiving such direction from the local part2 nership.

3 SEC. 307. LOCAL WORKFORCE INVESTMENT AREAS.

4 (a) DESIGNATION OF AREAS.—

5 (1) IN GENERAL.—Except as provided in sub6 section (b) and paragraph (2), the Governor shall des7 ignate local workforce investment areas in the State,

8 in accordance with the State plan requirements de9 scribed in section 304(b)(5).

10 (2) AUTOMATIC DESIGNATION.—

11 (A) IN GENERAL.—The Governor of the

12 State shall approve a request for designation as

13 a local area from any unit of general local gov14 ernment with a population of 500,000 or more,

15 if the designation meets the State plan require16 ments described in section 304(b)(5).

17 (B) LARGE COUNTIES.—A county with a

18 population of 500,000 or more may request such

19 designation only with the agreement of the polit20 ical subdivisions within the county with popu21 lations of 200,000 or more.

22 (C) LARGE POLITICAL SUBDIVISIONS.—Sin23 gle units of general local government with popu24 lations of 200,000 or more that are service deliv25 ery areas on the date of enactment of this Act
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1 shall have an automatic right to request designa2 tion as local areas under this section.

3 (3) PERMANENT DESIGNATION.—Once the bound4 aries for a local area are determined under this sec5 tion in accordance with the State plan, the bound6 aries shall not change except with the approval of the

7 Governor.

8 (b) SMALL STATES.—The Governor of any State deter9 mined to be eligible to receive a minimum allotment under

10 paragraph (1), (2), or (3) of section 302(b) for the first year

11 covered by the State plan may designate the State as a sin12 gle State local area for the purposes of this title. The Gov13 ernor shall identify the State as a local area under section

14 304(b)(5), in lieu of designating local areas as described

15 in subparagraphs (A), (B), and (C) of section 304(b)(5).

16 SEC. 308. LOCAL WORKFORCE INVESTMENT PARTNERSHIPS

17 AND YOUTH PARTNERSHIPS.

18 (a) ESTABLISHMENT OF LOCAL PARTNERSHIP.—There

19 shall be established in each local area of a State, and cer20 tified by the Governor of the State, a local workforce invest21 ment partnership.

22 (b) ROLE OF LOCAL PARTNERSHIP.—The primary role

23 of the local partnership shall be to set policy for the portion

24 of the statewide workforce investment system within the

25 local area, including—
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1 (1) ensuring that the activities authorized under

2 this subtitle and carried out in the local area meet

3 local performance measures that include high aca4 demic and skill measures;

5 (2) ensuring that the activities meet the needs of

6 employers and jobseekers; and

7 (3) ensuring the continuous improvement of the

8 system.

9 (c) MEMBERSHIP OF LOCAL PARTNERSHIP.—

10 (1) STATE CRITERIA.—The Governor of the State

11 shall establish criteria for the appointment of mem12 bers of the local partnerships for local areas in the

13 State in accordance with the requirements of para14 graph (2). Information identifying such criteria shall

15 be included in the State plan, as described in section

16 304(b)(6).

17 (2) COMPOSITION.—Such criteria shall require,

18 at a minimum, that the membership of each local

19 partnership—

20 (A) shall include—

21 (i) a majority of members who—

22 (I) are representatives of business

23 in the local area;

24 (II) are owners of businesses, chief

25 executives or operating officers of pri-
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•S 1186 RS

1 vate businesses, and other business ex2 ecutives or employers with optimum

3 policymaking or hiring authority;

4 (III) represent businesses with

5 employment opportunities that reflect

6 the employment opportunities of the

7 local area; and

8 (IV) are appointed from among

9 individuals nominated by local busi10 ness organizations and business trade

11 associations;

12 (ii) chief officers representing local

13 postsecondary educational institutions, rep14 resentatives of vocational education provid15 ers, and representatives of adult education

16 providers;

17 (iii) chief officers representing labor

18 organizations (for a local area in which

19 such representatives reside), nominated by

20 local labor federations, or (for a local area

21 in which such representatives do not reside)

22 other representatives of employees; and

23 (iv) chief officers representing economic

24 development agencies, including private sec25 tor economic development entities;
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1 (B) may include chief officers who have pol2 icymaking authority, from one-stop partners who

3 have entered into an operating agreement de4 scribed in section 311(c) to participate in the

5 one-stop customer service system in the local

6 area; and

7 (C) may include such other individuals or

8 representatives of entities as the chief elected offi9 cial in the local area may determine to be appro10 priate.

11 (3) CHAIRPERSON.—The local partnership shall

12 elect a chairperson from among the members of the

13 partnership described in paragraph (2)(A)(i).

14 (d) APPOINTMENT AND CERTIFICATION OF LOCAL

15 PARTNERSHIP.—

16 (1) APPOINTMENT OF LOCAL PARTNERSHIP MEM17 BERS AND ASSIGNMENT OF RESPONSIBILITIES.—

18 (A) IN GENERAL.—The chief elected official

19 in a local area is authorized to appoint the

20 members of the local partnership for such area,

21 in accordance with the State criteria established

22 under subsection (c).

23 (B) MULTIPLE UNITS OF LOCAL GOVERN24 MENT IN AREA.—
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•S 1186 RS

1 (i) IN GENERAL.—In a case in which

2 a local area includes more than 1 unit of

3 general local government, the chief elected

4 officials of such units may execute an agree5 ment that specifies the respective roles of the

6 individual chief elected officials—

7 (I) in the appointment of the

8 members of the local partnership from

9 the individuals nominated or rec10 ommended to be such members in ac11 cordance with the criteria established

12 under subsection (c); and

13 (II) in carrying out any other re14 sponsibilities assigned to such officials

15 under this subtitle.

16 (ii) LACK OF AGREEMENT.—If, after a

17 reasonable effort, the chief elected officials

18 are unable to reach agreement as provided

19 under clause (i), the Governor may appoint

20 the members of the local partnership from

21 individuals so nominated or recommended.

22 (2) CERTIFICATION.—

23 (A) IN GENERAL.—The Governor shall an24 nually certify 1 local partnership for each local

25 area in the State.
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•S 1186 RS

1 (B) CRITERIA.—Such certification shall be

2 based on criteria established under subsection (c)

3 and, for a second or subsequent certification, the

4 extent to which the local partnership has ensured

5 that workforce investment activities carried out

6 in the local area have enabled the local area to

7 meet the local performance measures required

8 under section 321(c).

9 (C) FAILURE TO ACHIEVE CERTIFI10 CATION.—Failure of a local partnership to

11 achieve certification shall result in reappoint12 ment and certification of another local partner13 ship for the local area pursuant to the process

14 described in paragraph (1) and this paragraph.

15 (3) DECERTIFICATION.—

16 (A) IN GENERAL.—Notwithstanding para17 graph (2), the Governor may decertify a local

18 partnership, at any time after providing notice

19 and an opportunity for comment, for—

20 (i) fraud or abuse; or

21 (ii) failure to carry out the functions

22 specified for the local partnership in para23 graphs (1) through (5) of subsection (e).

24 (B) PLAN.—If the Governor decertifies a

25 local partnership for a local area, the Governor
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•S 1186 RS

1 may require that a local partnership be ap2 pointed and certified for the local area pursuant

3 to a plan developed by the Governor in consulta4 tion with the chief elected official in the local

5 area and in accordance with the criteria estab6 lished under subsection (c).

7 (4) EXCEPTION.—Notwithstanding subsection (c)

8 and paragraphs (1) and (2), if a State described in

9 section 307(b) designates the State as a local area in

10 the State plan, the Governor may designate the state11 wide partnership described in section 303 to carry

12 out any of the functions described in subsection (e).

13 (e) FUNCTIONS OF LOCAL PARTNERSHIP.—The func14 tions of the local partnership shall include—

15 (1) developing and submitting a local plan as

16 described in section 309 in partnership with the ap17 propriate chief elected official;

18 (2) appointing, certifying, or designating one19 stop partners and one-stop customer service center op20 erators, pursuant to the criteria specified in the local

21 plan;

22 (3) conducting oversight with respect to the one23 stop customer service system;
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•S 1186 RS

1 (4) modifying the list of eligible providers of

2 training services pursuant to subsections (b)(3)(B)

3 and (c)(2)(B) of section 312;

4 (5) setting local performance measures pursuant

5 to section 312(b)(2)(D)(ii);

6 (6) analyzing and identifying—

7 (A) current and projected local employment

8 opportunities; and

9 (B) the skills necessary to obtain such local

10 employment opportunities;

11 (7) coordinating the workforce investment activi12 ties carried out in the local area with economic devel13 opment strategies and developing other employer link14 ages with such activities; and

15 (8) assisting the Governor in developing the

16 statewide labor market information system described

17 in section 15(e) of the Wagner-Peyser Act.

18 (f) SUNSHINE PROVISION.—The local partnership

19 shall make available to the public, on a regular basis

20 through open meetings, information regarding the activities

21 of the local partnership, including information regarding

22 membership, the appointment of one-stop partners, the des23 ignation and certification of one-stop customer service cen24 ter operators, and the award of grants to eligible providers

25 of youth activities.
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•S 1186 RS

1 (g) OTHER ACTIVITIES OF LOCAL PARTNERSHIP.—

2 (1) LIMITATION.—

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

4 subparagraph (B), no local partnership may di5 rectly carry out or enter into a contract for a

6 training service described in section 315(c)(3).

7 (B) WAIVERS.—The Governor of the State

8 in which the local partnership is located may

9 grant to the local partnership a written waiver

10 of the prohibition set forth in subparagraph (A),

11 if the local partnership provides substantial evi12 dence that a private or public entity is not

13 available to provide the training service and that

14 the activity is necessary to provide an employ15 ment opportunity described in the local plan de16 scribed in section 309.

17 (2) CONFLICT OF INTEREST.—No member of a

18 local partnership may—

19 (A) vote on a matter under consideration by

20 the local partnership—

21 (i) regarding the provision of services

22 by such member (or by an organization that

23 such member represents); or
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•S 1186 RS

1 (ii) that would provide direct financial

2 benefit to such member or the immediate

3 family of such member; or

4 (B) engage in any other activity determined

5 by the Governor to constitute a conflict of inter6 est as specified in the State plan.

7 (h) TECHNICAL ASSISTANCE.—If a local area fails to

8 meet established State or local performance measures, the

9 Governor shall provide technical assistance to the local

10 partnership involved to improve the performance of the

11 local area.

12 (i) YOUTH PARTNERSHIP.—

13 (1) ESTABLISHMENT.—There shall be established

14 in each local area of a State, a youth partnership ap15 pointed by the local partnership, in cooperation with

16 the chief elected official, in the local area.

17 (2) MEMBERSHIP.—The membership of each

18 youth partnership—

19 (A) shall include—

20 (i) 1 or more members of the local

21 partnership;

22 (ii) representatives of youth service

23 agencies, including juvenile justice agencies;

24 (iii) representatives of local public

25 housing authorities;
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1 (iv) parents of youth seeking assistance

2 under this subtitle;

3 (v) individuals, including former par4 ticipants, and representatives of organiza5 tions, that have experience relating to youth

6 activities; and

7 (vi) representatives of the Job Corps,

8 as appropriate; and

9 (B) may include such other individuals as

10 the chairperson of the local partnership, in co11 operation with the chief elected official, deter12 mines to be appropriate.

13 (3) DUTIES.—The duties of the youth partner14 ship include—

15 (A) the development of the portions of the

16 local plan relating to youth, as determined by

17 the chairperson of the local partnership;

18 (B) awarding grants to, and conducting

19 oversight with respect to, eligible providers of

20 youth activities, as described in section 313, in

21 the local area;

22 (C) coordinating youth activities in the

23 local area; and
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1 (D) other duties determined to be appro2 priate by the chairperson of the local partner3 ship.

4 SEC. 309. LOCAL PLAN.

5 (a) IN GENERAL.—Each local partnership shall de6 velop and submit to the Governor a comprehensive 3-year

7 local plan (referred to in this title as the ‘‘local plan’’), in

8 partnership with the appropriate chief elected official. The

9 local plan shall be consistent with the State plan.

10 (b) CONTENTS.—The local plan shall include—

11 (1) an identification of the needs of the local

12 area with regard to current and projected employ13 ment opportunities;

14 (2) an identification of the job skills necessary to

15 obtain such employment opportunities;

16 (3) a description of the activities to be used

17 under this subtitle to link local employers and local

18 jobseekers;

19 (4) an identification and assessment of the type

20 and availability of adult and dislocated worker em21 ployment and training activities in the local area;

22 (5) an identification of successful eligible provid23 ers of youth activities in the local area;

24 (6) a description of the measures that will be

25 taken by the local area to assure coordination of and
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1 avoid duplication among the programs and activities

2 described in section 304(b)(8);

3 (7) a description of the manner in which the

4 local partnership will coordinate activities carried

5 out under this subtitle in the local area with such ac6 tivities carried out in neighboring local areas;

7 (8) a description of the competitive process to be

8 used to award grants in the local area for activities

9 carried out under this subtitle;

10 (9) information describing local performance

11 measures for the local area that are based on the per12 formance measures in the State plan;

13 (10) in accordance with the State plan, a de14 scription of the criteria that the chief elected official

15 in the local area and the local partnership will use

16 to appoint, designate, or certify, and to conduct over17 sight with respect to, one-stop customer service center

18 systems in the local area; and

19 (11) such other information as the Governor may

20 require.

21 (c) PLAN SUBMISSION AND APPROVAL.—A local plan

22 submitted to the Governor under this section shall be consid23 ered to be approved by the Governor at the end of the 60-

24 day period beginning on the day the Governor receives the
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1 plan, unless the Governor makes a written determination

2 during the 60-day period that—

3 (1) entities conducting evaluations conducted

4 under section 321(e) in the local area have found defi5 ciencies in activities carried out under this subtitle

6 and the local area has not made acceptable progress

7 in implementing corrective measures to address the

8 deficiencies; or

9 (2) the plan does not comply with this title.

10 (d) LACK OF AGREEMENT.—If the local partnership

11 and the appropriate chief elected official in the local area

12 cannot agree on the local plan after making a reasonable

13 effort, the Governor may develop the local plan.

14 CHAPTER 3—WORKFORCE INVESTMENT

15 ACTIVITIES AND PROVIDERS

16 SEC. 311. IDENTIFICATION AND OVERSIGHT OF ONE-STOP

17 PARTNERS AND ONE-STOP CUSTOMER SERV18 ICE CENTER OPERATORS.

19 (a) IN GENERAL.—Consistent with the State plan, the

20 chief elected official and the local partnership shall develop

21 and implement operating agreements described in sub22 section (c) to appoint one-stop partners, shall designate or

23 certify one-stop customer service center operators, and shall

24 conduct oversight with respect to the one-stop customer serv25 ice system, in the local area.
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1 (b) ONE-STOP PARTNERS.—

2 (1) DESIGNATED PARTNERS.—

3 (A) IN GENERAL.—Each entity that carries

4 out a program, services, or activities described in

5 subparagraph (B) shall make available to par6 ticipants, through a one-stop customer service

7 center, the services described in section 315(c)(2)

8 that are applicable to such program, and shall

9 participate in the operation of such center as a

10 party to the agreement described in subsection

11 (c).

12 (B) PROGRAMS; SERVICES; ACTIVITIES.—

13 The programs, services, and activities referred to

14 in subparagraph (A) consist of—

15 (i) core services authorized under this

16 subtitle;

17 (ii) other activities authorized under

18 this title;

19 (iii) activities authorized under title I

20 and title II;

21 (iv) programs authorized under the

22 Wagner-Peyser Act (29 U.S.C. 49 et seq.);

23 (v) programs authorized under title I

24 of the Rehabilitation Act of 1973 (29 U.S.C.

25 729 et seq.);
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1 (vi) programs authorized under section

2 403(a)(5) of the Social Security Act (42

3 U.S.C. 603(a)(5)) (as added by section 5001

4 of the Balanced Budget Act of 1997);

5 (vii) programs authorized under title V

6 of the Older Americans Act of 1965 (42

7 U.S.C. 3056 et seq.);

8 (viii) activities authorized under chap9 ter 2 of title II of the Trade Act of 1974 (19

10 U.S.C. 2271 et seq.);

11 (ix) activities authorized under chapter

12 41 of title 38, United States Code;

13 (x) activities carried out by the Bureau

14 of Apprenticeship and Training;

15 (xi) training activities carried out by

16 the Department of Housing and Urban De17 velopment; and

18 (xii) programs authorized under State

19 unemployment compensation laws and the

20 Federal unemployment insurance program

21 under titles III, IX, and XII of the Social

22 Security Act (42 U.S.C. 501 et seq., 1101 et

23 seq., and 1321 et seq.).

24 (2) ADDITIONAL PARTNERS.—
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1 (A) IN GENERAL.—In addition to the enti2 ties described in paragraph (1), other entities

3 that carry out human resource programs may

4 make available to participants through a one5 stop customer service center the services described

6 in section 315(c)(2) that are applicable to such

7 program, and participate in the operation of

8 such centers as a party to the agreement de9 scribed in subsection (c), if the local partnership

10 and chief elected official involved approve such

11 participation.

12 (B) PROGRAMS.—The programs referred to

13 in subparagraph (A) include—

14 (i) programs authorized under part A

15 of title IV of the Social Security Act;

16 (ii) programs authorized under section

17 6(d)(4) of the Food Stamp Act of 1977 (7

18 U.S.C. 2015(d)(4));

19 (iii) work programs authorized under

20 section 6(o) of the Food Stamp Act of 1997

21 (7 U.S.C. 2015 (o)); and

22 (iv) other appropriate Federal, State,

23 or local programs, including programs in

24 the private sector.

25 (c) OPERATING AGREEMENTS.—
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1 (1) IN GENERAL.—The one-stop customer service

2 center operator selected pursuant to subsection (d) for

3 a one-stop customer service center shall enter into a

4 written agreement with the local partnership and one5 stop partners described in subsection (b) concerning

6 the operation of the center. Such agreement shall be

7 subject to the approval of the chief elected official and

8 the local partnership.

9 (2) CONTENTS.—The written agreement required

10 under paragraph (1) shall contain—

11 (A) provisions describing—

12 (i) the services to be provided through

13 the center;

14 (ii) how the costs of such services and

15 the operating costs of the system will be

16 funded,

17 (iii) methods for referral of individuals

18 between the one-stop customer service center

19 operators and the one-stop partners, for the

20 appropriate services and activities;

21 (iv) the monitoring and oversight of

22 activities carried out under the agreement;

23 and
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1 (v) the duration of the agreement and

2 the procedures for amending the agreement

3 during the term of the agreement; and

4 (B) such other provisions, consistent with

5 the requirements of this title, as the parties to

6 the agreement determine to be appropriate.

7 (d) ONE-STOP CUSTOMER SERVICE CENTER OPERA8 TORS.—

9 (1) IN GENERAL.—To be eligible to receive funds

10 made available under this subtitle to operate a one11 stop customer service center, an entity shall—

12 (A) be designated or certified as a one-stop

13 customer service center operator, as described in

14 subsection (a); and

15 (B) be a public or private entity, or consor16 tium of entities, of demonstrated effectiveness lo17 cated in the local area, which entity or consor18 tium may include an institution of higher edu19 cation (as defined in section 481 of the Higher

20 Education Act of 1965 (20 U.S.C. 1088), a local

21 employment service office established under the

22 Wagner-Peyser Act (29 U.S.C. 49 et seq.), a local

23 government agency, a private for-profit entity, a

24 private nonprofit entity, or other interested en25 tity, of demonstrated effectiveness.
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1 (2) EXCEPTION.—Elementary schools and sec2 ondary schools shall not be eligible for designation or

3 certification as one-stop customer service center oper4 ators, except that nontraditional secondary schools

5 and area vocational education schools shall be eligible

6 for such designation or certification.

7 (e) ESTABLISHED ONE-STOP CUSTOMER SERVICE

8 SYSTEMS.—For a local area in which a one-stop customer

9 service system has been established prior to the date of en10 actment of this Act, the local partnership, the chief elected

11 official, and the Governor may agree to appoint, designate,

12 or certify the one-stop partners and one-stop customer serv13 ice center operators of such system, for purposes of this sec14 tion.

15 (f) OVERSIGHT.—The local partnership shall conduct

16 oversight with respect to the one-stop customer service center

17 system and may terminate for cause the eligibility of such

18 a partner or operator to provide activities through or oper19 ate a one-stop customer service center.

20 SEC. 312. DETERMINATION AND IDENTIFICATION OF ELIGI21 BLE PROVIDERS OF TRAINING SERVICES BY

22 PROGRAM.

23 (a) GENERAL ELIGIBILITY REQUIREMENTS.—

24 (1) IN GENERAL.—Except as provided in sub25 section (e), to be eligible to receive funds made avail-
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1 able under section 306 to provide training services de2 scribed in section 315(c)(3) (referred to in this title

3 as ‘‘training services’’) and be identified as an eligible

4 provider of such services, a provider of such services

5 shall meet the requirements of this section.

6 (2) PROVIDERS.—To be eligible to receive the

7 funds, the provider shall be—

8 (A) a postsecondary educational institution

9 that—

10 (i) is eligible to receive Federal funds

11 under title IV of the Higher Education Act

12 of 1965 (20 U.S.C. 1070 et seq.); and

13 (ii) provides a program that leads to

14 an associate degree, baccalaureate degree, or

15 certificate; or

16 (B) another public or private provider of a

17 program.

18 (b) INITIAL DETERMINATION AND IDENTIFICATION.—

19 (1) POSTSECONDARY EDUCATIONAL INSTITU20 TIONS.—To be eligible to receive funds as described in

21 subsection (a), an institution described in subsection

22 (a)(2)(A) shall submit an application at such time,

23 in such manner, and containing such information as

24 the designated State agency described in subsection (f)

25 may require, after consultation with the local part-
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1 nerships in the State. On submission of the applica2 tion, the institution shall automatically be initially

3 eligible to receive such funds for the program de4 scribed in subsection (a)(2)(A).

5 (2) OTHER PROVIDERS.—

6 (A) PROCEDURE.—The Governor, in con7 sultation with the local partnerships in the

8 State, shall establish a procedure for determining

9 the initial eligibility of providers described in

10 subsection (a)(2)(B) to receive such funds for

11 specified programs. The procedure shall require a

12 provider of a program to meet minimum accept13 able levels of performance based on—

14 (i) performance criteria relating to the

15 rates, percentages, increases, and costs de16 scribed in subparagraph (C) for the pro17 gram, as demonstrated using verifiable pro18 gram-specific performance information de19 scribed in subparagraph (C) and submitted

20 to the designated State agency, as required

21 under subparagraph (C); and

22 (ii) performance criteria relating to

23 any characteristics for which local partner24 ships request the submission of information

25 under subparagraph (D) for the program,
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1 as demonstrated using the information sub2 mitted.

3 (B) MINIMUM LEVELS.—The Governor

4 shall—

5 (i) consider, in determining such mini6 mum levels—

7 (I) criteria relating to the eco8 nomic, geographic, and demographic

9 factors in the local areas in which the

10 provider provides the program; and

11 (II) the characteristics of the pop12 ulation served by such provider

13 through the program; and

14 (ii) verify the minimum levels of per15 formance by using quarterly records de16 scribed in section 321.

17 (C) APPLICATION.—To be initially eligible

18 to receive funds as described in subsection (a), a

19 provider described in subsection (a)(2)(B) shall

20 submit an application at such time, in such

21 manner, and containing such information as the

22 designated State agency may require, including

23 performance information on—
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1 (i) program completion rates for par2 ticipants in the applicable program con3 ducted by the provider;

4 (ii) the percentage of the graduates of

5 the program placed in unsubsidized employ6 ment in an occupation related to the pro7 gram conducted;

8 (iii) retention rates of the graduates in

9 unsubsidized employment—

10 (I) 6 months after completion of

11 the program; and

12 (II) 12 months after completion of

13 the program;

14 (iv) the wages received by the grad15 uates placed in unsubsidized employment

16 after the completion of participation in the

17 program—

18 (I) on the first day of the employ19 ment;

20 (II) 6 months after the first day

21 of the employment; and

22 (III) 12 months after the first day

23 of the employment;

24 (v) where appropriate, the rates of li25 censure or certification of the graduates, at-
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1 tainment of academic degrees or equiva2 lents, or attainment of other measures of

3 skill; and

4 (vi) program cost per participant in

5 the program.

6 (D) ADDITIONAL INFORMATION.—

7 (i) IN GENERAL.—In addition to the

8 performance information described in sub9 paragraph (C), the local partnerships in the

10 State involved may require that a provider

11 submit, to the local partnerships and to the

12 designated State agency, other performance

13 information relating to the program to be

14 initially identified as an eligible provider of

15 training services, including information re16 garding the ability of the provider to pro17 vide continued counseling and support re18 garding the workplace to the graduates, for

19 not less than 12 months after the gradua20 tion involved.

21 (ii) HIGHER LEVELS OF PERFORMANCE

22 ELIGIBILITY.—The local partnership may

23 require higher levels of performance than

24 the minimum levels established under sub-
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1 paragraph (A)(i) for initial eligibility to re2 ceive funds as described in subsection (a).

3 (3) LIST OF ELIGIBLE PROVIDERS BY PRO4 GRAM.—

5 (A) IN GENERAL.—The designated State

6 agency, after reviewing the performance informa7 tion described in paragraph (2)(C) and any in8 formation required to be submitted under para9 graph (2)(D) and using the procedure described

10 in paragraph (2)(B), shall—

11 (i) identify eligible providers of train12 ing services described in subparagraphs (A)

13 and (B) of subsection (a)(2), including

14 identifying the programs of the providers

15 through which the providers may offer the

16 training services; and

17 (ii) compile a list of the eligible pro18 viders, and the programs, accompanied by

19 the performance information described in

20 paragraph (2)(C) and any information re21 quired to be submitted under paragraph

22 (2)(D) for each such provider described in

23 subsection (a)(2)(B).

24 (B) LOCAL MODIFICATION.—The local part25 nership may modify such list by reducing the
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1 number of eligible providers listed, to ensure that

2 the eligible providers carry out programs that

3 provide skills that enable participants to obtain

4 local employment opportunities.

5 (c) SUBSEQUENT ELIGIBILITY.—

6 (1) INFORMATION AND CRITERIA.—To be eligible

7 to continue to receive funds as described in subsection

8 (a) for a program, a provider shall—

9 (A) submit the performance information de10 scribed in subsection (b)(2)(C) and any informa11 tion required to be submitted under subsection

12 (b)(2)(D) annually to the designated State agen13 cy at such time and in such manner as the des14 ignated State agency may require for the pro15 gram;

16 (B) annually meet the performance criteria

17 described in subclause (I) and (if applicable)

18 subclause (II) of subsection (b)(2)(B)(i) for the

19 program; and

20 (C) annually meet local performance meas21 ures, as demonstrated utilizing quarterly records

22 described in section 321, for the program.

23 (2) LIST OF ELIGIBLE PROVIDERS BY PRO24 GRAM.—
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1 (A) IN GENERAL.—The designated State

2 agency, after reviewing the performance informa3 tion and any other information submitted under

4 paragraph (1) and using the procedure described

5 in subsection (b)(2)(A), shall identify eligible

6 providers and programs, and compile a list of

7 the providers and programs, as described in sub8 section (b)(3), accompanied by the performance

9 information and other information for each such

10 provider.

11 (B) LOCAL MODIFICATION.—The local part12 nership may modify such list by reducing the

13 number of eligible providers listed, to ensure that

14 the eligible providers carry out programs that

15 provide skills that enable participants to obtain

16 local employment opportunities.

17 (3) AVAILABILITY.—Such list and information

18 shall be made widely available to participants in em19 ployment and training activities funded under this

20 subtitle, and to others, through the one-stop customer

21 service system described in section 315(b).

22 (d) ENFORCEMENT.—

23 (1) ACCURACY OF INFORMATION.—If the des24 ignated State agency, after consultation with the local

25 partnership involved, determines that a provider or
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1 individual supplying information on behalf of a pro2 vider intentionally supplies inaccurate information

3 under this section, the agency shall terminate the eli4 gibility of the provider to receive funds described in

5 subsection (a) for a period of time, but not less than

6 2 years.

7 (2) COMPLIANCE WITH CRITERIA OR REQUIRE8 MENTS.—If the designated State agency, after con9 sultation with the local partnership, determines that

10 an eligible provider or a program of training services

11 carried out by an eligible provider fails to meet the

12 required performance criteria and performance meas13 ures described in subparagraphs (B) and (C) of sub14 section (c)(1), or materially violates any provision of

15 this title, including the regulations promulgated to

16 implement this title, the agency may terminate the

17 eligibility of the provider to receive funds described in

18 subsection (a) for such program or take such other ac19 tion as the agency determines to be appropriate.

20 (3) REPAYMENT.—Any provider whose eligibility

21 is terminated under paragraph (1) or (2) for a pro22 gram shall be liable for repayment of funds described

23 in subsection (a) received for the program during any

24 period of noncompliance described in such paragraph.
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1 (4) APPEAL.—The Governor shall establish a

2 procedure for an eligible provider to appeal a deter3 mination by the designated State agency that results

4 in termination of eligibility under this subsection.

5 Such procedure shall provide an opportunity for a

6 hearing and prescribe appropriate time limits to en7 sure prompt resolution of the appeal.

8 (e) ON-THE-JOB TRAINING EXCEPTION.—

9 (1) IN GENERAL.—Providers of on-the-job train10 ing shall not be subject to the requirements of sub11 sections (a) through (d).

12 (2) COLLECTION AND DISSEMINATION OF INFOR13 MATION.—A one-stop customer service center operator

14 in a local area shall collect such performance infor15 mation from on-the-job training providers as the Gov16 ernor may require, and disseminate such information

17 through the one-stop customer service system.

18 (f) ADMINISTRATION.—The Governor shall designate a

19 State agency to collect and disseminate the performance in20 formation described in subsection (b)(2)(C) and any infor21 mation required to be submitted under subsection (b)(2)(D)

22 and carry out other duties described in this section.
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1 SEC. 313. IDENTIFICATION OF ELIGIBLE PROVIDERS OF

2 YOUTH ACTIVITIES.

3 The youth partnership is authorized to award grants

4 on a competitive basis, based on the criteria contained in

5 the State plan and local plan, to providers of youth activi6 ties, and conduct oversight with respect to such providers,

7 in the local area.

8 SEC. 314. STATEWIDE WORKFORCE INVESTMENT ACTIVI9 TIES.

10 (a) IN GENERAL.—Funds reserved by a Governor for

11 a State—

12 (1) under section 306(a)(2) shall be used to carry

13 out the statewide rapid response activities described

14 in subsection (b)(1); and

15 (2) under section 306(a)(1)—

16 (A) shall be used to carry out the statewide

17 workforce investment activities described in sub18 section (b)(2); and

19 (B) may be used to carry out any of the

20 statewide workforce investment activities de21 scribed in subsection (c),

22 regardless of whether the funds were allotted to the

23 State under paragraph (1), (2), or (3) of section

24 302(b).

25 (b) REQUIRED STATEWIDE WORKFORCE INVESTMENT

26 ACTIVITIES.—
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1 (1) STATEWIDE RAPID RESPONSE ACTIVITIES.—

2 A State shall use funds reserved under section

3 306(a)(2) to carry out statewide rapid response ac4 tivities, which shall include—

5 (A) provision of rapid response activities,

6 carried out in local areas by the State, working

7 in conjunction with the local partnership and

8 the chief elected official in the local area; and

9 (B) provision of additional assistance to

10 local areas that experience disasters, mass layoffs

11 or plant closings, or other events that precipitate

12 substantial increases in the number of unem13 ployed individuals, carried out in the local areas

14 by the State, working in conjunction with the

15 local partnership and the chief elected official in

16 the local areas.

17 (2) OTHER REQUIRED STATEWIDE WORKFORCE

18 INVESTMENT ACTIVITIES.—A State shall use funds re19 served under section 306(a)(1) to carry out other

20 statewide workforce investment activities, which shall

21 include—

22 (A) disseminating the list of eligible provid23 ers of training services, including eligible provid24 ers of nontraditional training services, and the

25 performance information as described in sub-
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1 sections (b) and (c) of section 312, and a list of

2 eligible providers of youth activities described in

3 section 313;

4 (B) conducting evaluations, under section

5 321(e), of activities authorized in this section,

6 section 315, and section 316, in coordination

7 with the activities carried out under section 368;

8 (C) providing incentive grants to local

9 areas for regional cooperation among local part10 nerships, for local coordination and nonduplica11 tion of activities carried out under this Act, and

12 for comparative performance by local areas on

13 the local performance measures described in sec14 tion 321(c);

15 (D) providing technical assistance to local

16 areas that fail to meet local performance meas17 ures;

18 (E) assisting in the establishment and oper19 ation of a one-stop customer service system; and

20 (F) operating a fiscal and management ac21 countability information system under section

22 321(f).

23 (c) ALLOWABLE STATEWIDE WORKFORCE INVESTMENT

24 ACTIVITIES.—
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1 (1) IN GENERAL.—A State may use funds re2 served under section 306(a)(1) to carry out additional

3 statewide workforce investment activities, which may

4 include—

5 (A) subject to paragraph (2), administra6 tion by the State of the workforce investment ac7 tivities carried out under this subtitle;

8 (B) identification and implementation of

9 incumbent worker training programs, which

10 may include the establishment and implementa11 tion of an employer loan program;

12 (C) carrying out other activities authorized

13 in section 315 that the State determines to be

14 necessary to assist local areas in carrying out

15 activities described in subsection (c) or (d) of sec16 tion 315 through the statewide workforce invest17 ment system; and

18 (D) carrying out, on a statewide basis, ac19 tivities described in section 316.

20 (2) LIMITATION.—

21 (A) IN GENERAL.—Of the funds allotted to

22 a State under section 302(b) and reserved under

23 section 306(a)(1) for a fiscal year—

24 (i) not more than 5 percent of the

25 amount allotted under section 302(b)(1);
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1 (ii) not more than 5 percent of the

2 amount allotted under section 302(b)(2);

3 and

4 (iii) not more than 5 percent of the

5 amount allotted under section 302(b)(3),

6 may be used by the State for the administration

7 of statewide workforce investment activities car8 ried out under this section.

9 (B) USE OF FUNDS.—Funds made available

10 for administrative costs under subparagraph (A)

11 may be used for the administrative cost of any

12 of the statewide workforce investment activities,

13 regardless of whether the funds were allotted to

14 the State under paragraph (1), (2), or (3) of sec15 tion 302(b).

16 SEC. 315. LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.

17 (a) IN GENERAL.—Funds received by a local area

18 under paragraph (3)(A) or (4)(A), as appropriate, of sec19 tion 306(b), and funds received by the local area under sec20 tion 306(b)(3)(B)—

21 (1) shall be used to carry out employment and

22 training activities described in subsection (c) for

23 adults or dislocated workers, as appropriate; and
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1 (2) may be used to carry out employment and

2 training activities described in subsection (d) for

3 adults or dislocated workers, as appropriate.

4 (b) ESTABLISHMENT OF ONE-STOP CUSTOMER SERV5 ICE SYSTEM.—

6 (1) IN GENERAL.—There shall be established in

7 a State that receives an allotment under section 302

8 a one-stop customer service system, which—

9 (A) shall provide the core services described

10 in subsection (c)(2);

11 (B) shall provide access to training services

12 as described in subsection (c)(3);

13 (C) shall provide access to the activities (if

14 any) carried out under subsection (d); and

15 (D) shall provide access to the information

16 described in section 15 of the Wagner-Peyser Act

17 and all job search, placement, recruitment, and

18 other labor exchange services authorized under

19 the Wagner-Peyser Act (29 U.S.C. 49 et seq.).

20 (2) ONE-STOP DELIVERY.—At a minimum, the

21 one-stop customer service system—

22 (A) shall make each of the services described

23 in paragraph (1) accessible at not less than 1

24 physical customer service center in each local

25 area of the State; and
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1 (B) may also make services described in

2 paragraph (1) available—

3 (i) through a network of customer serv4 ice centers that can provide 1 or more of the

5 services described in paragraph (1) to such

6 individuals; and

7 (ii) through a network of eligible one8 stop partners—

9 (I) in which each partner pro10 vides 1 or more of the services to such

11 individuals and is accessible at a cus12 tomer service center that consists of a

13 physical location or an electronically

14 or technologically linked access point;

15 and

16 (II) that assures individuals that

17 information on the availability of core

18 services will be available regardless of

19 where the individuals initially enter

20 the statewide workforce investment sys21 tem, including information made

22 available through an access point de23 scribed in subclause (I).

24 (c) REQUIRED LOCAL ACTIVITIES.—
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1 (1) IN GENERAL.—Funds received by a local

2 area under paragraph (3)(A) or (4)(A), as appro3 priate, of section 306(b), and funds received by the

4 local area under section 306(b)(3)(B), shall be used—

5 (A) to establish a one-stop customer service

6 center described in subsection (b);

7 (B) to provide the core services described in

8 paragraph (2) to participants described in such

9 paragraph through the one-stop customer service

10 system; and

11 (C) to provide training services described in

12 paragraph (3) to participants described in such

13 paragraph.

14 (2) CORE SERVICES.—Funds received by a local

15 area as described in paragraph (1) shall be used to

16 provide core services, which shall be available to all

17 individuals seeking assistance through a one-stop cus18 tomer service system and shall, at a minimum, in19 clude—

20 (A) determinations of whether the individ21 uals are eligible to receive activities under this

22 subtitle;

23 (B) outreach, intake (which may include

24 worker profiling), and orientation to the infor-
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1 mation and other services available through the

2 one-stop customer service system;

3 (C) initial assessment of skill levels, apti4 tudes, abilities, and supportive service needs;

5 (D) case management assistance, as appro6 priate;

7 (E) job search and placement assistance;

8 (F) provision of information regarding—

9 (i) local, State, and, if appropriate, re10 gional or national, employment opportuni11 ties; and

12 (ii) job skills necessary to obtain the

13 employment opportunities;

14 (G) provision of performance information

15 on eligible providers of training services as de16 scribed in section 312, provided by program, and

17 eligible providers of youth activities as described

18 in section 313, eligible providers of adult edu19 cation as described in title II, eligible providers

20 of postsecondary vocational education activities

21 and vocational education activities available to

22 school dropouts as described in title I, and eligi23 ble providers of vocational rehabilitation pro24 gram activities as described in title I of the Re25 habilitation Act of 1973;
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1 (H) provision of performance information

2 on the activities carried out by one-stop part3 ners, as appropriate;

4 (I) provision of information regarding how

5 the local area is performing on the local perform6 ance measures described in section 321(c), and

7 any additional performance information pro8 vided to the one-stop customer service center by

9 the local partnership;

10 (J) provision of accurate information relat11 ing to the availability of supportive services, in12 cluding child care and transportation, available

13 in the local area, and referral to such services,

14 as appropriate;

15 (K) provision of information regarding fil16 ing claims for unemployment compensation;

17 (L) assistance in establishing eligibility

18 for—

19 (i) welfare-to-work activities authorized

20 under section 403(a)(5) of the Social Secu21 rity Act (as added by section 5001 of the

22 Balanced Budget Act of 1997) available in

23 the local area; and

24 (ii) programs of financial aid assist25 ance for training and education programs
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1 that are not funded under this Act and are

2 available in the local area; and

3 (M) followup services, including counseling

4 regarding the workplace, for participants in

5 workforce investment activities who are placed in

6 unsubsidized employment, for not less than 12

7 months after the completion of such participa8 tion, as appropriate.

9 (3) REQUIRED TRAINING SERVICES.—

10 (A) ELIGIBLE PARTICIPANTS.—Funds re11 ceived by a local area as described in paragraph

12 (1) shall be used to provide training services to

13 individuals—

14 (i) who are adults (including dis15 located workers);

16 (ii) who seek the services;

17 (iii)(I) who are unable to obtain em18 ployment through the core services; or

19 (II) who are employed and who are de20 termined by a one-stop customer service

21 center operator to be in need of such train22 ing services in order to gain or retain em23 ployment that allows for self-sufficiency;

24 (iv) who after an interview, evaluation,

25 or assessment, and case management, have
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1 been determined by a one-stop customer

2 service center operator or one-stop partner,

3 as appropriate, to be in need of training

4 services and to have the skills and qualifica5 tions, to successfully participate in the se6 lected program of training services;

7 (v) who select programs of training

8 services that are directly linked to the em9 ployment opportunities in the local area in10 volved or in another area in which the

11 adults receiving such services are willing to

12 relocate;

13 (vi) who meet the requirements of sub14 paragraph (B); and

15 (vii) who are determined to be eligible

16 in accordance with the priority system, if

17 any, in effect under subparagraph (D).

18 (B) QUALIFICATION.—

19 (i) REQUIREMENT.—Except as pro20 vided in clause (ii), provision of such train21 ing services shall be limited to individuals

22 who—

23 (I) are unable to obtain other

24 grant assistance for such services, in25 cluding Federal Pell Grants established
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1 under title IV of the Higher Education

2 Act of 1965 (20 U.S.C. 1070 et seq.); or

3 (II) require assistance beyond the

4 assistance made available under other

5 grant assistance programs, including

6 Federal Pell Grants.

7 (ii) REIMBURSEMENTS.—Training

8 services may be provided under this para9 graph to an individual who otherwise meets

10 the requirements of this paragraph while an

11 application for a Federal Pell Grant is

12 pending, except that if such individual is

13 subsequently awarded a Federal Pell Grant,

14 appropriate reimbursement shall be made to

15 the local area from such Federal Pell Grant.

16 (C) TRAINING SERVICES.—Training services

17 may include—

18 (i) employment skill training;

19 (ii) on-the-job training;

20 (iii) job readiness training; and

21 (iv) adult education services when pro22 vided in combination with services described

23 in clause (i), (ii), or (iii).

24 (D) PRIORITY.—In the event that funds are

25 limited within a local area for adult employment
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1 and training activities, priority shall be given

2 to disadvantaged adults for receipt of training

3 services provided under this paragraph. The ap4 propriate local partnership and the Governor

5 shall direct the one-stop customer service center

6 operator in the local area with regard to making

7 determinations related to such priority.

8 (E) DELIVERY OF SERVICES.—Training

9 services provided under this paragraph shall be

10 provided—

11 (i) except as provided in section

12 312(e), through eligible providers of such

13 services identified in accordance with sec14 tion 312; and

15 (ii) in accordance with subparagraph

16 (F).

17 (F) CONSUMER CHOICE REQUIREMENTS.—

18 (i) IN GENERAL.—Training services

19 provided under this paragraph shall be pro20 vided in a manner that maximizes

21 consumer choice in the selection of an eligi22 ble provider of such services.

23 (ii) ELIGIBLE PROVIDERS.—Each local

24 partnership, through one-stop customer

25 service centers, shall make available—
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1 (I) the list of eligible providers re2 quired under subsection (b)(3) or (c)(2)

3 of section 312, with a description of the

4 programs through which the providers

5 may offer the training services, and a

6 list of the names of on-the-job training

7 providers; and

8 (II) the performance information

9 on eligible providers of training serv10 ices as described in section 312.

11 (iii) EMPLOYMENT INFORMATION.—

12 Each local partnership, through one-stop

13 customer service centers, shall make avail14 able—

15 (I) information regarding local,

16 State, and, if appropriate, regional or

17 national, employment opportunities;

18 and

19 (II) information regarding the job

20 skills necessary to obtain the employ21 ment opportunities.

22 (iv) INDIVIDUAL TRAINING AC23 COUNTS.—An individual who is eligible

24 pursuant to subparagraph (A) and seeks

25 training services may select, in consultation
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•S 1186 RS

1 with a case manager, an eligible provider of

2 training services from the lists of providers

3 described in clause (ii)(I). Upon such selec4 tion, the operator of the one-stop customer

5 service center shall, to the extent prac6 ticable, refer such individual to the eligible

7 provider of training services, and arrange

8 for payment for such services through an

9 individual training account.

10 (d) PERMISSIBLE LOCAL ACTIVITIES.—

11 (1) DISCRETIONARY ONE-STOP DELIVERY ACTIVI12 TIES.—Funds received by a local area under para13 graph (3)(A) or (4)(A), as appropriate, of section

14 306(b), and funds received by the local area under

15 section 306(b)(3)(B) may be used to provide, through

16 one-stop delivery described in subsection (b)(2)—

17 (A) intensive employment-related services

18 for participants in training services;

19 (B) customized screening and referral of

20 qualified participants in training services to em21 ployment; and

22 (C) customized employment-related services

23 to employers.
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1 (2) SUPPORTIVE SERVICES.—Funds received by

2 the local area as described in paragraph (1) may be

3 used to provide supportive services to participants—

4 (A) who are participating in activities de5 scribed in this section; and

6 (B) who are unable to obtain such support7 ive services through other programs providing

8 such services.

9 (3) NEEDS-RELATED PAYMENTS.—

10 (A) IN GENERAL.—Funds received by the

11 local area under section 306(b)(3)(B) may be

12 used to provide needs-related payments to dis13 located workers who do not qualify for, or have

14 exhausted, unemployment compensation, for the

15 purpose of enabling such individuals to partici16 pate in training services.

17 (B) ADDITIONAL ELIGIBILITY REQUIRE18 MENTS.—In addition to the requirements con19 tained in subparagraph (A), a dislocated worker

20 who has ceased to qualify for unemployment

21 compensation may be eligible to receive needs-re22 lated payments under this paragraph only if

23 such worker was enrolled in the training serv24 ices—
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•S 1186 RS

1 (i) by the end of the 13th week of the

2 worker’s unemployment compensation bene3 fits period for the most recent layoff that re4 sulted in a determination of the worker’s

5 eligibility for employment and training ac6 tivities for dislocated workers under this

7 subtitle; or

8 (ii) if later, by the end of the 13th week

9 after the worker is informed that a short10 term layoff will exceed 6 months.

11 (C) LEVEL OF PAYMENTS.—The level of a

12 needs-related payment made to a dislocated

13 worker under this paragraph shall not exceed the

14 greater of—

15 (i) the applicable level of unemploy16 ment compensation; or

17 (ii) if such worker did not qualify for

18 unemployment compensation, an amount

19 equal to the poverty line, for an equivalent

20 period, which amount shall be adjusted to

21 reflect changes in total family income.

22 SEC. 316. LOCAL YOUTH ACTIVITIES.

23 (a) PURPOSES.—The purposes of this section are—
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•S 1186 RS

1 (1) to provide effective and comprehensive activi2 ties to youth seeking assistance in achieving academic

3 and employment success;

4 (2) to ensure continuous contact for youth with

5 committed adults;

6 (3) to provide opportunities for training to

7 youth;

8 (4) to provide continued support services for

9 youth;

10 (5) to provide incentives for recognition and

11 achievement to youth; and

12 (6) to provide opportunities for youth in activi13 ties related to leadership, development, decisionmak14 ing, citizenship, and community service.

15 (b) REQUIRED ELEMENTS.—Funds received by a local

16 area under paragraph (3)(C) or (4)(B) of section 306(b)

17 shall be used to carry out, for youth who seek the activities,

18 activities that—

19 (1) consist of the provision of—

20 (A) tutoring, study skills training, and in21 struction, leading to completion of secondary

22 school, including dropout prevention strategies;

23 (B) alternative secondary school services;
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•S 1186 RS

1 (C) summer employment opportunities and

2 other paid and unpaid work experiences, includ3 ing internships;

4 (D) employment skill training, as appro5 priate;

6 (E) community service and leadership de7 velopment opportunities;

8 (F) services described in section 315(c)(2);

9 (G) supportive services;

10 (H) adult mentoring for the period of par11 ticipation and a subsequent period, for a total of

12 not less than 12 months; and

13 (I) followup services for not less than 12

14 months after the completion of participation, as

15 appropriate;

16 (2) provide—

17 (A) preparation for postsecondary edu18 cational opportunities, in appropriate cases;

19 (B) strong linkages between academic and

20 occupational learning; and

21 (C) preparation for unsubsidized employ22 ment opportunities, in appropriate cases; and

23 (3) involve parents, participants, and other

24 members of the community with experience relating to
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•S 1186 RS

1 youth in the design and implementation of the activi2 ties.

3 (c) PRIORITY.—At a minimum, 50 percent of the funds

4 described in subsection (b) shall be used to provide youth

5 activities to out-of-school youth.

6 (d) PROHIBITIONS.—

7 (1) NO LOCAL EDUCATION CURRICULUM.—No

8 funds described in subsection (b) shall be used to de9 velop or implement local school system education cur10 ricula.

11 (2) NONDUPLICATION.—No funds described in

12 subsection (b) shall be used to carry out activities that

13 duplicate federally funded activities available to

14 youth in the local area.

15 (3) NONINTERFERENCE AND NONREPLACEMENT

16 OF REGULAR ACADEMIC REQUIREMENTS.—No funds

17 described in subsection (b) shall be used to provide an

18 activity for youth who are not school dropouts if par19 ticipation in the activity would interfere with or re20 place the regular academic requirements of the youth.

21 CHAPTER 4—GENERAL PROVISIONS

22 SEC. 321. ACCOUNTABILITY.

23 (a) PURPOSE.—The purpose of this section is to pro24 vide comprehensive performance measures to assess the

25 progress of States and local areas (including eligible provid-
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•S 1186 RS

1 ers and programs of activities authorized under this subtitle

2 that are made available in the States and local areas), in

3 assisting both employers and jobseekers in meeting their em4 ployment needs, in order to ensure an adequate return on

5 the investment of Federal funds for the activities.

6 (b) STATE PERFORMANCE MEASURES.—

7 (1) IN GENERAL.—To be eligible to receive an al8 lotment under section 302, a State shall establish, and

9 identify in the State plan, State performance meas10 ures. Each State performance measure shall consist of

11 an indicator of performance, referred to in paragraph

12 (2) or (3), and a performance level, referred to in

13 paragraph (4).

14 (2) CORE INDICATORS OF PERFORMANCE.—The

15 State performance measures shall contain indicators

16 of performance, including, at a minimum—

17 (A) core indicators of performance for

18 adults, including dislocated workers, participat19 ing in activities that are training services, which

20 indicators consist of—

21 (i) placement in unsubsidized employ22 ment related to the training received

23 through the activities;
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•S 1186 RS

1 (ii) retention in unsubsidized employ2 ment related to the training received

3 through the activities—

4 (I) 6 months after completion of

5 participation in the activities; and

6 (II) 12 months after completion of

7 participation;

8 (iii) wages received by such partici9 pants who are placed in unsubsidized em10 ployment related to the training received

11 through the activities after completion of

12 participation—

13 (I) on the first day of the employ14 ment;

15 (II) 6 months after the first day

16 of the employment; and

17 (III) 12 months after the first day

18 of the employment; and

19 (iv) percentage of wage replacement for

20 dislocated workers placed in unsubsidized

21 employment related to the training received

22 through the activities;

23 (B) core indicators of performance for

24 adults, including dislocated workers, participat25 ing in activities that are core services, which in-
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•S 1186 RS

1 dicators consist of the indicators described in

2 clauses (i) through (iv) of subparagraph (A); and

3 (C) core indicators of performance for youth

4 participating in youth activities under section

5 316, that consist of—

6 (i) attainment of secondary school di7 plomas or their recognized equivalents;

8 (ii) attainment of job readiness and

9 employment skills;

10 (iii) placement in, retention in, and

11 completion of postsecondary education, ad12 vanced training, or an apprenticeship;

13 (iv) placement in unsubsidized employ14 ment related to the training received

15 through the activities;

16 (v) 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 of

22 participation; and

23 (vi) wages received by such partici24 pants who are placed in unsubsidized em25 ployment related to the training received
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•S 1186 RS

1 through the activities, after completion of

2 participation—

3 (I) on the first day of the employ4 ment;

5 (II) 6 months after the first day

6 of the employment; and

7 (III) 12 months after the first day

8 of the employment.

9 (3) CUSTOMER SATISFACTION INDICATOR.—The

10 State performance measures shall contain an indica11 tor of performance with respect to customer satisfac12 tion of employers and participants, which may be

13 measured through surveys conducted after the conclu14 sion of participation in workforce investment activi15 ties.

16 (4) STATE LEVELS OF PERFORMANCE.—In order

17 to ensure an adequate return on the investment of

18 Federal funds in workforce investment activities, the

19 Secretary and each Governor shall reach agreement

20 on the levels of performance expected to be achieved by

21 the State, on the State performance measures estab22 lished pursuant to this subsection. In reaching the

23 agreement, the Secretary and Governor shall establish

24 a level of performance for each indicator of perform-
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•S 1186 RS

1 ance described in paragraph (2) or (3). Such agree2 ment shall take into account—

3 (A) how the levels compare with the levels

4 established by other States, taking into consider5 ation the specific circumstances, including eco6 nomic circumstances, of each State; and

7 (B) the extent to which such levels promote

8 continuous improvement in performance by such

9 State and ensure an adequate return on the in10 vestment of Federal funds.

11 (5) POPULATIONS.—In developing the State per12 formance measures, a State shall develop and identify

13 in the State plan State performance measures for

14 populations that include, at a minimum—

15 (A) disadvantaged adults;

16 (B) dislocated workers;

17 (C) out-of-school youth; and

18 (D) individuals with disabilities.

19 (c) LOCAL PERFORMANCE MEASURES.—

20 (1) IN GENERAL.—Each Governor shall negotiate

21 and reach agreement with the local partnership and

22 the chief elected official in each local area on local

23 performance measures. Each local performance meas24 ure shall consist of an indicator of performance re-
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•S 1186 RS

1 ferred to in paragraph (2) or (3) of subsection (b),

2 and a performance level referred to in paragraph (2).

3 (2) PERFORMANCE LEVELS.—Based on the ex4 pected levels of performance established pursuant to

5 subsection (b)(4), the Governor shall negotiate and

6 reach agreement with the local partnership and the

7 chief elected official in each local area regarding the

8 levels of performance expected to be achieved for the

9 local area on the indicators of performance.

10 (3) POPULATIONS.—In negotiating and reaching

11 agreement on the local performance measures, the

12 Governor, local partnership, and chief elected official,

13 shall negotiate and reach agreement on local perform14 ance measures for populations that include, at a min15 imum, the populations described in subsection (b)(5).

16 The local partnership shall identify these local per17 formance measures in the local plan.

18 (d) REPORT.—

19 (1) IN GENERAL.—Each State that receives an

20 allotment under section 302 shall annually prepare

21 and submit to the Secretary a report on the progress

22 of the State in achieving State performance measures.

23 The annual report shall also include information re24 garding the progress of local areas in achieving local

25 performance measures. The report shall also include
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•S 1186 RS

1 information on the status of State evaluations of

2 workforce investment activities described in subsection

3 (e).

4 (2) ADDITIONAL INFORMATION.—In preparing

5 such report, the State shall include, at a minimum,

6 information relating to—

7 (A) the performance of graduates of pro8 grams of training services as compared to former

9 enrollees in the programs, with respect to the

10 core indicators described in subsection (b)(2)(A);

11 (B) the educational attainment of such

12 graduates and former enrollees;

13 (C) the cost of the workforce investment ac14 tivities relative to the impact of the activities on

15 the performance of graduates on the core indica16 tors; and

17 (D) the performance of welfare recipients,

18 veterans, individuals with disabilities, and dis19 placed homemakers with respect to the core indi20 cators described in subparagraphs (A) and (B) of

21 subsection (b)(2).

22 (3) INFORMATION DISSEMINATION.—The Sec23 retary shall make the information contained in such

24 reports available to Congress, the Library of Congress,

25 and the public through publication and other appro-
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•S 1186 RS

1 priate methods, and shall disseminate State-by-State

2 comparisons of the information that take into consid3 eration the specific circumstances, including economic

4 circumstances, of the States.

5 (4) DEFINITION.—In this subsection, the term

6 ‘‘welfare recipient’’ means a person receiving pay7 ments described in section 2(24)(A).

8 (e) EVALUATION OF STATE PROGRAMS.—

9 (1) WORKFORCE INVESTMENT ACTIVITIES.—

10 Using funds reserved under section 306(a)(1), a State

11 shall conduct ongoing evaluations of workforce invest12 ment activities carried out in the State under this

13 subtitle.

14 (2) CRITERIA FOR LONGITUDINAL STUDIES.—

15 The evaluations shall include longitudinal studies of

16 the workforce investment activities. Evaluation cri17 teria for purposes of the longitudinal studies shall be

18 developed in conjunction with statewide partnerships

19 and local partnerships. The criteria shall measure the

20 relationship between the level of public funding for the

21 activities and the degree to which the activities pro22 mote employment and wage gains. Such longitudinal

23 studies shall be conducted by an evaluator who is un24 affiliated with the statewide partnership or the local
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•S 1186 RS

1 partnership and shall include measures that reflect

2 the State performance measures.

3 (3) ADDITIONAL STUDIES.—The State shall also

4 fund evaluation studies of the workforce investment

5 activities. The evaluation studies shall provide ongo6 ing analysis to statewide partnerships and local part7 nerships to promote efficiency and effectiveness in im8 proving employability outcomes for jobseekers and

9 competitiveness for employers. Such evaluation stud10 ies shall be designed in conjunction with statewide

11 partnerships and local partnerships, and shall in12 clude analysis of customer feedback, and outcome and

13 process measures.

14 (f) FISCAL AND MANAGEMENT ACCOUNTABILITY IN15 FORMATION SYSTEMS.—

16 (1) IN GENERAL.—Using funds reserved under

17 section 306(a)(1), the Governor shall operate a fiscal

18 and management accountability information system,

19 based on guidelines established by the Secretary in

20 consultation with the Governors and other appro21 priate parties. Such guidelines shall promote the effi22 cient collection and use of fiscal and management in23 formation for reporting and monitoring the use of

24 funds made available to the State under this subtitle

25 for workforce investment activities and for use by the
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•S 1186 RS

1 State in preparing the annual report described in

2 subsection (d). In measuring the progress of the State

3 on State and local performance measures, a State

4 shall utilize quarterly wage records available through

5 the unemployment insurance system.

6 (2) CONFIDENTIALITY.—In carrying out the re7 quirements of this Act, the State shall comply with

8 section 444 of the General Education Provisions Act

9 (20 U.S.C. 1232g) (as added by the Family Edu10 cational Rights and Privacy Act of 1974).

11 (g) SANCTIONS.—

12 (1) DETERMINATION.—If a State fails to meet 2

13 or more State performance measures described in this

14 section for each of the 3 years covered by a State

15 plan, the Secretary shall determine whether the fail16 ure is attributable to—

17 (A) adult employment and training activi18 ties;

19 (B) dislocated worker employment and

20 training activities; or

21 (C) youth activities.

22 (2) TECHNICAL ASSISTANCE OR REDUCTION OF

23 ALLOTMENTS.—The Secretary—
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•S 1186 RS

1 (A) may provide technical assistance to the

2 State to improve the level of performance of the

3 State, in accordance with section 366(b); and

4 (B) shall, on finding that a State fails to

5 meet 2 or more State performance measures for

6 2 consecutive years, reduce, by not more than 5

7 percent, the allotment made under section 302

8 for the category of activities to which the failure

9 is attributable.

10 (3) FUNDS RESULTING FROM REDUCED ALLOT11 MENTS.—The Secretary may use an amount retained

12 as a result of a reduction in an allotment made under

13 paragraph (2)(B) to award an incentive grant under

14 section 365 or to provide technical assistance in ac15 cordance with section 366.

16 (h) INCENTIVE GRANTS.—The Secretary may make in17 centive grants under section 365 to States that exceed the

18 State performance measures.

19 (i) DEFINITIONS.—In this section:

20 (1) FORMER ENROLLEE.—The term ‘‘former en21 rollee’’ means an individual who has been selected for

22 and has enrolled in a program of workforce invest23 ment activities, but left the program before completing

24 the requirements of the program.
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•S 1186 RS

1 (2) GRADUATE.—The term ‘‘graduate’’ means an

2 individual who has been selected for and has enrolled

3 in a program of workforce investment activities and

4 has completed the requirements of such program.

5 (j) OTHER TERMS.—The Secretary, in consultation

6 with the Governors, local partnerships, and other appro7 priate entities, shall issue regulations that identify and de8 fine other terms used in this title, in order to promote uni9 formity in the implementation of this Act.

10 SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

11 (a) ADULT EMPLOYMENT AND TRAINING ACTIVI12 TIES.—There are authorized to be appropriated to carry out

13 the activities described in section 302(a)(1) under this sub14 title, such sums as may be necessary for each of fiscal years

15 1999 through 2004.

16 (b) DISLOCATED WORKER EMPLOYMENT AND TRAIN17 ING ACTIVITIES.—There are authorized to be appropriated

18 to carry out the activities described in section 302(a)(2)

19 under this subtitle, such sums as may be necessary for each

20 of fiscal years 1999 through 2004.

21 (c) YOUTH ACTIVITIES.—There are authorized to be

22 appropriated to carry out the activities described in section

23 302(a)(3) under this subtitle, such sums as may be nec24 essary for each of fiscal years 1999 through 2004.
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•S 1186 RS

1 Subtitle B—Job Corps

2 SEC. 331. PURPOSES.

3 The purposes of this subtitle are—

4 (1) to maintain a national Job Corps program,

5 carried out in partnership with States and commu6 nities, to assist eligible youth who need and can bene7 fit from an intensive program, operated in a group

8 setting in residential and nonresidential centers, to

9 become more responsible, employable, and productive

10 citizens;

11 (2) to set forth standards and procedures for se12 lecting individuals as enrollees in the Job Corps;

13 (3) to authorize the establishment of Job Corps

14 centers in which enrollees will participate in inten15 sive programs of activities described in this subtitle;

16 and

17 (4) to prescribe various other powers, duties, and

18 responsibilities incident to the operation and continu19 ing development of the Job Corps.

20 SEC. 332. DEFINITIONS.

21 In this subtitle:

22 (1) APPLICABLE LOCAL PARTNERSHIP.—The

23 term ‘‘applicable local partnership’’ means a local

24 partnership—
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•S 1186 RS

1 (A) that provides information for a Job

2 Corps center on local employment opportunities

3 and the job skills needed to obtain the opportuni4 ties; and

5 (B) that serves communities in which the

6 graduates of the Job Corps center seek employ7 ment.

8 (2) APPLICABLE ONE-STOP CUSTOMER SERVICE

9 CENTER.—The term ‘‘applicable one-stop customer

10 service center’’ means a one-stop customer service cen11 ter that provides services, such as referral, intake, re12 cruitment, and placement, to a Job Corps center.

13 (3) ENROLLEE.—The term ‘‘enrollee’’ means an

14 individual who has voluntarily applied for, been se15 lected for, and enrolled in the Job Corps program,

16 and remains with the program, but has not yet be17 come a graduate.

18 (4) FORMER ENROLLEE.—The term ‘‘former en19 rollee’’ means an individual who has voluntarily ap20 plied for, been selected for, and enrolled in the Job

21 Corps program, but left the program before complet22 ing the requirements of a vocational training pro23 gram, or receiving a secondary school diploma or rec24 ognized equivalent, as a result of participation in the

25 Job Corps program.
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•S 1186 RS

1 (5) GRADUATE.—The term ‘‘graduate’’ means an

2 individual who has voluntarily applied for, been se3 lected for, and enrolled in the Job Corps program and

4 has completed the requirements of a vocational train5 ing program, or received a secondary school diploma

6 or recognized equivalent, as a result of participation

7 in the Job Corps program.

8 (6) JOB CORPS.—The term ‘‘Job Corps’’ means

9 the Job Corps described in section 333.

10 (7) JOB CORPS CENTER.—The term ‘‘Job Corps

11 center’’ means a center described in section 333.

12 (8) OPERATOR.—The term ‘‘operator’’ means an

13 entity selected under this subtitle to operate a Job

14 Corps center.

15 (9) REGION.—The term ‘‘region’’ means an area

16 served by a regional office of the Employment and

17 Training Administration.

18 (10) SERVICE PROVIDER.—The term ‘‘service

19 provider’’ means an entity selected under this subtitle

20 to provide services described in this subtitle to a Job

21 Corps center.

22 SEC. 333. ESTABLISHMENT.

23 There shall be established in the Department of Labor

24 a Job Corps program, to carry out activities described in
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•S 1186 RS

1 this subtitle for individuals enrolled in a Job Corps and

2 assigned to a center.

3 SEC. 334. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

4 To be eligible to become an enrollee, an individual

5 shall be—

6 (1) not less than age 16 and not more than age

7 21 on the date of enrollment, except that—

8 (A) not more than 20 percent of the indi9 viduals enrolled in the Job Corps may be not less

10 than age 22 and not more than age 24 on the

11 date of enrollment; and

12 (B) either such maximum age limitation

13 may be waived by the Secretary, in accordance

14 with regulations of the Secretary, in the case of

15 an individual with a disability;

16 (2) a low-income individual; and

17 (3) an individual who is 1 or more of the follow18 ing:

19 (A) Basic skills deficient.

20 (B) A school dropout.

21 (C) Homeless, a runaway, or a foster child.

22 (D) A parent.

23 (E) An individual who requires additional

24 education, vocational training, or intensive

25 counseling and related assistance, in order to
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1 participate successfully in regular schoolwork or

2 to secure and hold employment.

3 SEC. 335. RECRUITMENT, SCREENING, SELECTION, AND AS4 SIGNMENT OF ENROLLEES.

5 (a) STANDARDS AND PROCEDURES.—

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

7 specific standards and procedures for the recruitment,

8 screening, and selection of eligible applicants for the

9 Job Corps, after considering recommendations from

10 the Governors, local partnerships, and other interested

11 parties.

12 (2) METHODS.—In prescribing standards and

13 procedures under paragraph (1), the Secretary, at a

14 minimum, shall—

15 (A) prescribe procedures for informing en16 rollees that drug tests will be administered to the

17 enrollees and the results received within 45 days

18 after the enrollees enroll in the Job Corps;

19 (B) establish standards for recruitment of

20 Job Corps applicants;

21 (C) establish standards and procedures

22 for—

23 (i) determining, for each applicant,

24 whether the educational and vocational

25 needs of the applicant can best be met
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1 through the Job Corps program or an alter2 native program in the community in which

3 the applicant resides; and

4 (ii) obtaining from each applicant per5 tinent data relating to background, needs,

6 and interests for determining eligibility and

7 potential assignment;

8 (D) where appropriate, take measures to

9 improve the professional capability of the indi10 viduals conducting screening of the applicants;

11 and

12 (E) assure that an appropriate number of

13 enrollees are from rural areas.

14 (3) IMPLEMENTATION.—To the extent prac15 ticable, the standards and procedures shall be imple16 mented through arrangements with—

17 (A) applicable one-stop customer service

18 centers;

19 (B) community action agencies, business or20 ganizations, and labor organizations; and

21 (C) agencies and individuals that have con22 tact with youth over substantial periods of time

23 and are able to offer reliable information about

24 the needs and problems of youth.
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1 (4) CONSULTATION.—The standards and proce2 dures shall provide for necessary consultation with in3 dividuals and organizations, including court, proba4 tion, parole, law enforcement, education, welfare, and

5 medical authorities and advisers.

6 (5) REIMBURSEMENT.—The Secretary is author7 ized to enter into contracts with and make payments

8 to individuals and organizations for the cost of con9 ducting recruitment, screening, and selection of eligi10 ble applicants for the Job Corps, as provided for in

11 this section. The Secretary shall make no payment to

12 any individual or organization solely as compensa13 tion for referring the names of applicants for the Job

14 Corps.

15 (b) SPECIAL LIMITATIONS ON SELECTION.—

16 (1) IN GENERAL.—No individual shall be selected

17 as an enrollee unless the individual or organization

18 implementing the standards and procedures deter19 mines that—

20 (A) there is a reasonable expectation that

21 the individual considered for selection can par22 ticipate successfully in group situations and ac23 tivities, and is not likely to engage in behavior

24 that would prevent other enrollees from receiving

25 the benefit of the Job Corps program or be in-
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1 compatible with the maintenance of sound dis2 cipline and satisfactory relationships between the

3 Job Corps center to which the individual might

4 be assigned and communities surrounding the

5 Job Corps center;

6 (B) the individual manifests a basic under7 standing of both the rules to which the individ8 ual will be subject and of the consequences of

9 failure to observe the rules; and

10 (C) the individual has passed a background

11 check conducted in accordance with procedures

12 established by the Secretary.

13 (2) INDIVIDUALS ON PROBATION, PAROLE, OR SU14 PERVISED RELEASE.—An individual on probation,

15 parole, or supervised release may be selected as an en16 rollee only if release from the supervision of the pro17 bation or parole official involved is satisfactory to the

18 official and the Secretary and does not violate appli19 cable laws (including regulations). No individual

20 shall be denied a position in the Job Corps solely on

21 the basis of individual contact with the criminal jus22 tice system.

23 (c) ASSIGNMENT PLAN.—

24 (1) IN GENERAL.—Every 2 years, the Secretary

25 shall develop and implement an assignment plan for
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1 assigning enrollees to Job Corps centers. In developing

2 the plan, the Secretary shall, based on the analysis

3 described in paragraph (2), establish targets, applica4 ble to each Job Corps center, for—

5 (A) the maximum attainable percentage of

6 enrollees at the Job Corps center that reside in

7 the State in which the center is located; and

8 (B) the maximum attainable percentage of

9 enrollees at the Job Corps center that reside in

10 the region in which the center is located, and in

11 surrounding regions.

12 (2) ANALYSIS.—In order to develop the plan de13 scribed in paragraph (1), the Secretary shall, every 2

14 years, analyze, for the Job Corps center—

15 (A) the size of the population of individuals

16 eligible to participate in Job Corps in the State

17 and region in which the Job Corps center is lo18 cated, and in surrounding regions;

19 (B) the relative demand for participation in

20 the Job Corps in the State and region, and in

21 surrounding regions; and

22 (C) the capacity and utilization of the Job

23 Corps center, including services provided through

24 the center.

25 (d) ASSIGNMENT OF INDIVIDUAL ENROLLEES.—
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1 (1) IN GENERAL.—After an individual has been

2 selected for the Job Corps in accordance with the

3 standards and procedures of the Secretary under sub4 section (a), the enrollee shall be assigned to the Job

5 Corps center that is closest to the home of the enrollee,

6 except that the Secretary may waive this requirement

7 if—

8 (A) the enrollee chooses a vocational train9 ing program, or requires an English as a second

10 language program, that is not available at such

11 center;

12 (B) the enrollee is an individual with a dis13 ability and may be better served at another cen14 ter;

15 (C) the enrollee would be unduly delayed in

16 participating in the Job Corps program because

17 the closest center is operating at full capacity; or

18 (D) the parent or guardian of the enrollee

19 requests assignment of the enrollee to another Job

20 Corps center due to circumstances in the commu21 nity of the enrollee that would impair prospects

22 for successful participation in the Job Corps pro23 gram.

24 (2) ENROLLEES WHO ARE YOUNGER THAN 18.—

25 An enrollee who is younger than 18 shall not be as-
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1 signed to a Job Corps center other than the center

2 closest to the home of the enrollee pursuant to para3 graph (1) if the parent or guardian of the enrollee ob4 jects to the assignment.

5 SEC. 336. ENROLLMENT.

6 (a) RELATIONSHIP BETWEEN ENROLLMENT AND MILI7 TARY OBLIGATIONS.—Enrollment in the Job Corps shall

8 not relieve any individual of obligations under the Military

9 Selective Service Act (50 U.S.C. App. 451 et seq.).

10 (b) PERIOD OF ENROLLMENT.—No individual may be

11 enrolled in the Job Corps for more than 2 years, except—

12 (1) in a case in which completion of an ad13 vanced career training program under section 338(b)

14 would require an individual to participate in the Job

15 Corps for not more than 1 additional year; or

16 (2) as the Secretary may authorize in a special

17 case.

18 SEC. 337. JOB CORPS CENTERS.

19 (a) OPERATORS AND SERVICE PROVIDERS.—

20 (1) ELIGIBLE ENTITIES.—

21 (A) OPERATORS.—The Secretary shall enter

22 into an agreement with a Federal, State, or local

23 agency, such as individuals participating in a

24 statewide partnership or in a local partnership

25 or an agency that operates or wishes to develop
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•S 1186 RS

1 an area vocational education school facility or

2 residential vocational school, or with a private

3 organization, for the operation of each Job Corps

4 center.

5 (B) PROVIDERS.—The Secretary may enter

6 into an agreement with a local entity to provide

7 activities described in this subtitle to the Job

8 Corps center.

9 (2) SELECTION PROCESS.—

10 (A) COMPETITIVE BASIS.—Except as pro11 vided in subsections (c) and (d) of section 303 of

12 the Federal Property and Administrative Serv13 ices Act of 1949 (41 U.S.C. 253), the Secretary

14 shall select on a competitive basis an entity to

15 operate a Job Corps center and entities to pro16 vide activities described in this subtitle to the

17 Job Corps center. In developing a solicitation for

18 an operator or service provider, the Secretary

19 shall consult with the Governor of the State in

20 which the center is located, the industry council

21 for the Job Corps center (if established), and the

22 applicable local partnership regarding the con23 tents of such solicitation, including elements that

24 will promote the consistency of the activities car-
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1 ried out through the center with the objectives set

2 forth in the State plan or in a local plan.

3 (B) RECOMMENDATIONS AND CONSIDER4 ATIONS.—

5 (i) OPERATORS.—In selecting an en6 tity to operate a Job Corps center, the Sec7 retary shall consider—

8 (I) the ability of the entity to co9 ordinate the activities carried out

10 through the Job Corps center with ac11 tivities carried out under the appro12 priate State plan and local plans;

13 (II) the degree to which the voca14 tional training that the entity proposes

15 for the center reflects local employment

16 opportunities in the local areas in

17 which enrollees at the center intend to

18 seek employment;

19 (III) the degree to which the en20 tity is familiar with the surrounding

21 communities, applicable one-stop cen22 ters, and the State and region in which

23 the center is located; and

24 (IV) the past performance of the

25 entity, if any, relating to operating or
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1 providing activities described in this

2 subtitle to a Job Corps center.

3 (ii) PROVIDERS.—In selecting a service

4 provider for a Job Corps center, the Sec5 retary shall consider the factors described in

6 subclauses (I) through (IV) of clause (i), as

7 appropriate.

8 (b) CHARACTER AND ACTIVITIES.—Job Corps centers

9 may be residential or nonresidential in character, and shall

10 be designed and operated so as to provide enrollees, in a

11 well-supervised setting, with access to activities described

12 in this subtitle. In any year, no more than 20 percent of

13 the individuals enrolled in the Job Corps may be nonresi14 dential participants in the Job Corps.

15 (c) CIVILIAN CONSERVATION CENTERS.—

16 (1) IN GENERAL.—The Job Corps centers may

17 include Civilian Conservation Centers operated under

18 agreements with the Secretary of Agriculture or the

19 Secretary of the Interior, located primarily in rural

20 areas, which shall provide, in addition to other voca21 tional training and assistance, programs of work ex22 perience to conserve, develop, or manage public natu23 ral resources or public recreational areas or to develop

24 community projects in the public interest.
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•S 1186 RS

1 (2) SELECTION PROCESS.—The Secretary may

2 select an entity to operate a Civilian Conservation

3 Center on a competitive basis, as provided in sub4 section (a), if the center fails to meet such national

5 performance standards as the Secretary shall estab6 lish.

7 (d) INDIAN TRIBES.—

8 (1) GENERAL AUTHORITY.—The Secretary may

9 enter into agreements with Indian tribes to operate

10 Job Corps centers for Indians.

11 (2) DEFINITIONS.—In this subsection, the terms

12 ‘‘Indian’’ and ‘‘Indian tribe’’, have the meanings

13 given such terms in subsections (d) and (e), respec14 tively, of section 4 of the Indian Self-Determination

15 and Education Assistance Act (25 U.S.C. 450b).

16 SEC. 338. PROGRAM ACTIVITIES.

17 (a) ACTIVITIES PROVIDED BY JOB CORPS CENTERS.—

18 (1) IN GENERAL.—Each Job Corps center shall

19 provide enrollees with an intensive, well organized,

20 and fully supervised program of education, vocational

21 training, work experience, recreational activities, and

22 counseling. Each Job Corps center shall provide en23 rollees assigned to the center with access to core serv24 ices described in subtitle A.

25 (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 enroll4 ees and assist the enrollees in obtaining mean5 ingful unsubsidized employment, participating

6 in secondary education or postsecondary edu7 cation programs, enrolling in other suitable vo8 cational training programs, or satisfying Armed

9 Forces requirements, on completion of their en10 rollment.

11 (B) LINK TO EMPLOYMENT OPPORTUNI12 TIES.—The vocational training provided shall be

13 linked to the employment opportunities in the

14 local area in which the enrollee intends to seek

15 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 selected

19 enrollees in which the enrollees may continue to par20 ticipate for a period of not to exceed 1 year in addi21 tion to the period of participation to which the enroll22 ees would otherwise be limited. The advanced career

23 training may be provided through the eligible provid24 ers of training services identified by the State in25 volved under section 312.
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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 Job

5 Corps benefits, or a monthly stipend equal to the

6 average value of the residential support, food, al7 lowances, and other benefits provided to enrollees

8 assigned to residential Job Corps centers.

9 (B) CALCULATION.—The total amount for

10 which an enrollee shall be eligible under sub11 paragraph (A) shall be reduced by the amount of

12 any scholarship or other educational grant as13 sistance received by such enrollee for advanced

14 career training.

15 (3) DEMONSTRATION.—Each year, any operator

16 seeking to enroll additional enrollees in an advanced

17 career training program shall demonstrate that par18 ticipants in such program have achieved a reasonable

19 rate of completion and placement in training-related

20 jobs before the operator may carry out such addi21 tional enrollment.

22 (c) CONTINUED SERVICES.—The Secretary shall also

23 provide continued services to graduates, including provid24 ing counseling regarding the workplace for 12 months after

25 the date of graduation of the graduates. In selecting a pro-
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•S 1186 RS

1 vider for such services, the Secretary shall give priority to

2 one-stop partners.

3 SEC. 339. COUNSELING AND JOB PLACEMENT.

4 (a) COUNSELING AND TESTING.—The Secretary shall

5 arrange for counseling and testing for each enrollee at regu6 lar intervals to measure progress in the education and voca7 tional training programs carried out through the Job

8 Corps.

9 (b) PLACEMENT.—The Secretary shall arrange for

10 counseling and testing for enrollees prior to their scheduled

11 graduations to determine their capabilities and, based on

12 their capabilities, shall make every effort to arrange to place

13 the enrollees in jobs in the vocations for which the enrollees

14 are trained or to assist the enrollees in obtaining further

15 activities described in this subtitle. In arranging for the

16 placement of graduates in jobs, the Secretary shall utilize

17 the one-stop customer service system to the fullest extent pos18 sible.

19 (c) STATUS AND PROGRESS.—The Secretary shall de20 termine the status and progress of enrollees scheduled for

21 graduation and make every effort to assure that their needs

22 for further activities described in this subtitle are met.

23 SEC. 340. SUPPORT.

24 (a) PERSONAL ALLOWANCES.—The Secretary shall

25 provide enrollees assigned to Job Corps centers with such
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1 personal allowances as the Secretary may determine to be

2 necessary or appropriate to meet the needs of the enrollees.

3 (b) READJUSTMENT ALLOWANCES.—The Secretary

4 shall arrange for a readjustment allowance to be paid to

5 eligible former enrollees and graduates. The Secretary shall

6 arrange for the allowance to be paid at the one-stop cus7 tomer service center nearest to the home of such a former

8 enrollee or graduate who is returning home, or at the one9 stop customer service center nearest to the location where

10 the former enrollee or graduate has indicated an intent to

11 seek employment. If the Secretary uses any organization,

12 in lieu of a one-stop customer service center, to provide

13 placement services under this Act, the Secretary shall ar14 range for that organization to pay the readjustment allow15 ance.

16 SEC. 341. OPERATING PLAN.

17 (a) IN GENERAL.—The provisions of the contract be18 tween the Secretary and an entity selected to operate a Job

19 Corps center shall, at a minimum, serve as an operating

20 plan for the Job Corps center.

21 (b) ADDITIONAL INFORMATION.—The Secretary may

22 require the operator, in order to remain eligible to operate

23 the Job Corps center, to submit such additional information

24 as the Secretary may require, which shall be considered

25 part of the operating plan.
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1 (c) AVAILABILITY.—The Secretary shall make the oper2 ating plan described in subsections (a) and (b), excluding

3 any proprietary information, available to the public.

4 SEC. 342. STANDARDS OF CONDUCT.

5 (a) PROVISION AND ENFORCEMENT.—The Secretary

6 shall provide, and directors of Job Corps centers shall strin7 gently enforce, standards of conduct within the centers.

8 Such standards of conduct shall include provisions forbid9 ding the actions described in subsection (b)(2)(A).

10 (b) DISCIPLINARY MEASURES.—

11 (1) IN GENERAL.—To promote the proper moral

12 and disciplinary conditions in the Job Corps, the di13 rectors of Job Corps centers shall take appropriate

14 disciplinary measures against enrollees. If such a di15 rector determines that an enrollee has committed a

16 violation of the standards of conduct, the director

17 shall dismiss the enrollee from the Job Corps if the di18 rector determines that the retention of the enrollee in

19 the Job Corps will jeopardize the enforcement of such

20 standards or diminish the opportunities of other en21 rollees.

22 (2) ZERO TOLERANCE POLICY AND DRUG TEST23 ING.—

24 (A) GUIDELINES.—The Secretary shall

25 adopt guidelines establishing a zero tolerance
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1 policy for an act of violence, for use, sale, or pos2 session of a controlled substance, for abuse of al3 cohol, or for other illegal or disruptive activity.

4 (B) DRUG TESTING.—The Secretary shall

5 require drug testing of all enrollees for controlled

6 substances in accordance with procedures pre7 scribed by the Secretary under section 335(a).

8 (C) DEFINITIONS.—In this paragraph:

9 (i) CONTROLLED SUBSTANCE.—The

10 term ‘‘controlled substance’’ has the mean11 ing given the term in section 102 of the

12 Controlled Substances Act (21 U.S.C. 802).

13 (ii) ZERO TOLERANCE POLICY.—The

14 term ‘‘zero tolerance policy’’ means a policy

15 under which an enrollee shall be automati16 cally dismissed from the Job Corps after a

17 determination by the director that the en18 rollee has carried out an action described in

19 subparagraph (A).

20 (c) APPEAL.—A disciplinary measure taken by a di21 rector under this section shall be subject to expeditious ap22 peal in accordance with procedures established by the Sec23 retary.
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1 SEC. 343. COMMUNITY PARTICIPATION.

2 (a) BUSINESS AND COMMUNITY LIAISON.—Each Job

3 Corps center shall have a Business and Community Liaison

4 (referred to in this Act as a ‘‘Liaison’’), designated by the

5 director of the center.

6 (b) RESPONSIBILITIES.—The responsibilities of the Li7 aison shall include—

8 (1) establishing and developing relationships and

9 networks with—

10 (A) local and (in the case of rural or remote

11 sites) distant employers; and

12 (B) applicable one-stop customer service

13 centers and applicable local partnerships,

14 for the purpose of providing job opportunities for Job

15 Corps graduates; and

16 (2) establishing and developing relationships

17 with members of the community in which the Job

18 Corps center is located, informing members of the

19 community about the projects of the Job Corps center

20 and changes in the rules, procedures, or activities of

21 the center that may affect the community, and plan22 ning events of mutual interest to the community and

23 the Job Corps center.

24 (c) NEW CENTERS.—The Liaison for a Job Corps cen25 ter that is not yet operating shall establish and develop the

26 relationships and networks described in subsection (b) at
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1 least 3 months prior to the date on which the center accepts

2 the first enrollee at the center.

3 SEC. 344. INDUSTRY COUNCILS.

4 (a) IN GENERAL.—Each Job Corps center shall have

5 an industry council, appointed by the director of the center

6 after consultation with the Liaison, in accordance with pro7 cedures established by the Secretary.

8 (b) INDUSTRY COUNCIL COMPOSITION.—

9 (1) IN GENERAL.—An industry council shall be

10 comprised of—

11 (A) a majority of members who shall be

12 local and (in the case of rural or remote sites)

13 distant owners of business concerns, chief execu14 tives or chief operating officers of nongovern15 mental employers, or other private sector em16 ployers, who—

17 (i) have substantial management, hir18 ing, or policy responsibility; and

19 (ii) represent businesses with employ20 ment opportunities that reflect the employ21 ment opportunities of the applicable local

22 area; and

23 (B) representatives of labor organizations

24 (where present) and representatives of employees.
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•S 1186 RS

1 (2) LOCAL PARTNERSHIP.—The industry council

2 may include members of the applicable local partner3 ships who meet the requirements described in para4 graph (1).

5 (c) RESPONSIBILITIES.—The responsibilities of the in6 dustry council shall be—

7 (1) to work closely with all applicable local part8 nerships in order to determine, and recommend to the

9 Secretary, appropriate vocational training for the

10 center;

11 (2) to review all the relevant labor market infor12 mation to—

13 (A) determine the employment opportunities

14 in the local areas in which the enrollees intend

15 to seek employment after graduation;

16 (B) determine the skills and education that

17 are necessary to obtain the employment opportu18 nities; and

19 (C) recommend to the Secretary the type of

20 vocational training that should be implemented

21 at the center to enable the enrollees to obtain the

22 employment opportunities; and

23 (3) to meet at least once every 6 months to re24 evaluate the labor market information, and other rel25 evant information, to determine, and recommend to
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1 the Secretary, any necessary changes in the voca2 tional training provided at the center.

3 (d) NEW CENTERS.—The industry council for a Job

4 Corps center that is not yet operating shall carry out the

5 responsibilities described in subsection (c) at least 3 months

6 prior to the date on which the center accepts the first en7 rollee at the center.

8 SEC. 345. ADVISORY COMMITTEES.

9 The Secretary may establish and use advisory commit10 tees in connection with the operation of the Job Corps pro11 gram, and the operation of Job Corps centers, whenever the

12 Secretary determines that the availability of outside advice

13 and counsel on a regular basis would be of substantial bene14 fit in identifying and overcoming problems, in planning

15 program or center development, or in strengthening rela16 tionships between the Job Corps and agencies, institutions,

17 or groups engaged in related activities.

18 SEC. 346. EXPERIMENTAL, RESEARCH, AND DEMONSTRA19 TION PROJECTS.

20 The Secretary may carry out experimental, research,

21 or demonstration projects relating to carrying out the Job

22 Corps program and may waive any provision of this sub23 title that the Secretary finds would prevent the Secretary

24 from carrying out the projects.
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1 SEC. 347. APPLICATION OF PROVISIONS OF FEDERAL LAW.

2 (a) ENROLLEES NOT CONSIDERED TO BE FEDERAL

3 EMPLOYEES.—

4 (1) IN GENERAL.—Except as otherwise provided

5 in this subsection and in section 8143(a) of title 5,

6 United States Code, enrollees shall not be considered

7 to be Federal employees and shall not be subject to the

8 provisions of law relating to Federal employment, in9 cluding such provisions regarding hours of work, rates

10 of compensation, leave, unemployment compensation,

11 and Federal employee benefits.

12 (2) PROVISIONS RELATING TO TAXES AND SOCIAL

13 SECURITY BENEFITS.—For purposes of the Internal

14 Revenue Code of 1986 and title II of the Social Secu15 rity Act (42 U.S.C. 401 et seq.), enrollees shall be

16 deemed to be employees of the United States and any

17 service performed by an individual as an enrollee

18 shall be deemed to be performed in the employ of the

19 United States.

20 (3) PROVISIONS RELATING TO COMPENSATION TO

21 FEDERAL EMPLOYEES FOR WORK INJURIES.—For

22 purposes of subchapter I of chapter 81 of title 5, Unit23 ed States Code (relating to compensation to Federal

24 employees for work injuries), enrollees shall be deemed

25 to be civil employees of the Government of the United

26 States within the meaning of the term ‘‘employee’’ as
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•S 1186 RS

1 defined in section 8101 of title 5, United States Code,

2 and the provisions of such subchapter shall apply as

3 specified in section 8143(a) of title 5, United States

4 Code.

5 (4) FEDERAL TORT CLAIMS PROVISIONS.—For

6 purposes of the Federal tort claims provisions in title

7 28, United States Code, enrollees shall be considered

8 to be employees of the Government.

9 (b) ADJUSTMENTS AND SETTLEMENTS.—Whenever the

10 Secretary finds a claim for damages to a person or property

11 resulting from the operation of the Job Corps to be a proper

12 charge against the United States, and the claim is not cog13 nizable under section 2672 of title 28, United States Code,

14 the Secretary may adjust and settle the claim in an amount

15 not exceeding $1,500.

16 (c) PERSONNEL OF THE UNIFORMED SERVICES.—Per17 sonnel of the uniformed services who are detailed or as18 signed to duty in the performance of agreements made by

19 the Secretary for the support of the Job Corps shall not be

20 counted in computing strength under any law limiting the

21 strength of such services or in computing the percentage au22 thorized by law for any grade in such services.
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•S 1186 RS

1 SEC. 348. SPECIAL PROVISIONS.

2 (a) ENROLLMENT.—The Secretary shall ensure that

3 women and men have an equal opportunity to participate

4 in the Job Corps program, consistent with section 335.

5 (b) STUDIES, EVALUATIONS, PROPOSALS, AND

6 DATA.—The Secretary shall assure that all studies, evalua7 tions, proposals, and data produced or developed with Fed8 eral funds in the course of carrying out the Job Corps pro9 gram shall become the property of the United States.

10 (c) TRANSFER OF PROPERTY.—

11 (1) IN GENERAL.—Notwithstanding title II of the

12 Federal Property and Administrative Services Act of

13 1949 (40 U.S.C. 481 et seq.) and any other provision

14 of law, the Secretary and the Secretary of Education

15 shall receive priority by the Secretary of Defense for

16 the direct transfer, on a nonreimbursable basis, of the

17 property described in paragraph (2) for use in carry18 ing out programs under this Act or under any other

19 Act.

20 (2) PROPERTY.—The property described in this

21 paragraph is real and personal property under the

22 control of the Department of Defense that is not used

23 by such Department, including property that the Sec24 retary of Defense determines is in excess of current

25 and projected requirements of such Department.
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•S 1186 RS

1 (d) GROSS RECEIPTS.—Transactions conducted by a

2 private for-profit or nonprofit entity that is an operator

3 or service provider for a Job Corps center shall not be con4 sidered to be generating gross receipts. Such an operator

5 or service provider shall not be liable, directly or indirectly,

6 to any State or subdivision of a State (nor to any person

7 acting on behalf of such a State or subdivision) for any

8 gross receipts taxes, business privilege taxes measured by

9 gross receipts, or any similar taxes imposed on, or meas10 ured by, gross receipts in connection with any payments

11 made to or by such entity for operating or providing serv12 ices to a Job Corps center. Such an operator or service pro13 vider shall not be liable to any State or subdivision of a

14 State to collect or pay any sales, excise, use, or similar tax

15 imposed on the sale to or use by such operator or service

16 provider of any property, service, or other item in connec17 tion with the operation of or provision of services to a Job

18 Corps center.

19 (e) MANAGEMENT FEE.—The Secretary shall provide

20 each operator and (in an appropriate case, as determined

21 by the Secretary) service provider with an equitable and

22 negotiated management fee of not less than 1 percent of the

23 amount of the funding provided under the appropriate

24 agreement specified in section 337.
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1 (f) DONATIONS.—The Secretary may accept on behalf

2 of the Job Corps or individual Job Corps centers charitable

3 donations of cash or other assistance, including equipment

4 and materials, if such donations are available for appro5 priate use for the purposes set forth in this subtitle.

6 (g) SALE OF PROPERTY.—Notwithstanding any other

7 provision of law, if the Administrator of General Services

8 sells a Job Corps center facility, the Administrator shall

9 transfer the proceeds from the sale to the Secretary, who

10 shall use the proceeds to carry out the Job Corps program.

11 SEC. 349. MANAGEMENT INFORMATION.

12 (a) FINANCIAL MANAGEMENT INFORMATION SYS13 TEM.—

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

15 procedures to ensure that each operator, and each

16 service provider, maintains a financial management

17 information system that will provide—

18 (A) accurate, complete, and current disclo19 sures of the costs of Job Corps operations; and

20 (B) sufficient data for the effective evalua21 tion of activities carried out through the Job

22 Corps program.

23 (2) ACCOUNTS.—Each operator and service pro24 vider shall maintain funds received under this sub-
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1 title in accounts in a manner that ensures timely and

2 accurate reporting as required by the Secretary.

3 (3) FISCAL RESPONSIBILITY.—Operators shall

4 remain fiscally responsible and control costs, regard5 less of whether the funds made available for Job Corps

6 centers are incrementally increased or decreased be7 tween fiscal years.

8 (b) AUDIT.—

9 (1) ACCESS.—The Secretary, the Inspector Gen10 eral of the Department of Labor, the Comptroller Gen11 eral of the United States, and any of their duly au12 thorized representatives, shall have access to any

13 books, documents, papers, and records of the operators

14 and service providers described in subsection (a) that

15 are pertinent to the Job Corps program, for purposes

16 of conducting surveys, audits, and evaluations of the

17 operators and service providers.

18 (2) SURVEYS, AUDITS, AND EVALUATIONS.—The

19 Secretary shall survey, audit, or evaluate, or arrange

20 for the survey, audit, or evaluation of, the operators

21 and service providers, using Federal auditors or inde22 pendent public accountants. The Secretary shall con23 duct such surveys, audits, or evaluations not less often

24 than once every 3 years.
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1 (c) INFORMATION ON CORE PERFORMANCE MEAS2 URES.—

3 (1) ESTABLISHMENT.—The Secretary shall, with

4 continuity and consistency from year to year, estab5 lish core performance measures, and expected per6 formance levels on the performance measures, for Job

7 Corps centers and the Job Corps program, relating

8 to—

9 (A) the number of graduates and the rate of

10 such graduation, analyzed by type of vocational

11 training received through the Job Corps program

12 and by whether the vocational training was pro13 vided by a local or national service provider;

14 (B) the number of graduates who entered

15 unsubsidized employment related to the voca16 tional training received through the Job Corps

17 program and the number who entered

18 unsubsidized employment not related to the voca19 tional training received, analyzed by whether the

20 vocational training was provided by a local or

21 national service provider and by whether the

22 placement in the employment was conducted by

23 a local or national service provider;

24 (C) the average wage received by graduates

25 who entered unsubsidized employment related to
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1 the vocational training received through the Job

2 Corps program and the average wage received by

3 graduates who entered unsubsidized employment

4 unrelated to the vocational training received;

5 (D) the average wage received by graduates

6 placed in unsubsidized employment after comple7 tion of the Job Corps program—

8 (i) on the first day of the employment;

9 (ii) 6 months after the first day of the

10 employment; and

11 (iii) 12 months after the first day of

12 the employment,

13 analyzed by type of vocational training received

14 through the Job Corps program;

15 (E) the number of graduates who entered

16 unsubsidized employment and were retained in

17 the unsubsidized employment—

18 (i) 6 months after completion of the

19 Job Corps program; and

20 (ii) 12 months after completion of the

21 Job Corps program;

22 (F) the number of graduates who entered

23 unsubsidized employment—

24 (i) for 32 hours per week or more;
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1 (ii) for not less than 20 but less than

2 32 hours per week; and

3 (iii) for less than 20 hours per week;

4 (G) the number of graduates who entered

5 postsecondary education or advanced training

6 programs, including registered apprenticeship

7 programs, as appropriate; and

8 (H) the number of graduates who attained

9 job readiness and employment skills.

10 (2) PERFORMANCE OF RECRUITERS.—The Sec11 retary shall also establish performance measures, and

12 expected performance levels on the performance meas13 ures, for local and national recruitment service pro14 viders serving the Job Corps program. The perform15 ance measures shall relate to the number of enrollees

16 retained in the Job Corps program for 30 days and

17 for 60 days after initial placement in the program.

18 (3) REPORT.—The Secretary shall collect, and

19 annually submit a report to the appropriate commit20 tees of Congress containing, information on the per21 formance of each Job Corps center, and the Job Corps

22 program, on the core performance measures, as com23 pared to the expected performance level for each per24 formance measure. The report shall also contain in25 formation on the performance of the service providers
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1 described in paragraph (2) on the performance meas2 ures established under such paragraph, as compared

3 to the expected performance levels for the performance

4 measures.

5 (d) ADDITIONAL INFORMATION.—The Secretary shall

6 also collect, and submit in the report described in subsection

7 (c), information on the performance of each Job Corps cen8 ter, and the Job Corps program, regarding—

9 (1) the number of enrollees served;

10 (2) the average level of learning gains for grad11 uates and former enrollees;

12 (3) the number of former enrollees and graduates

13 who entered the Armed Forces;

14 (4) the number of former enrollees who entered

15 postsecondary education;

16 (5) the number of former enrollees who entered

17 unsubsidized employment related to the vocational

18 training received through the Job Corps program and

19 the number who entered unsubsidized employment not

20 related to the vocational training received;

21 (6) the number of former enrollees and graduates

22 who obtained a secondary school diploma or its recog23 nized equivalent;

24 (7) the number and percentage of dropouts from

25 the Job Corps program including the number dis-
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1 missed under the zero tolerance policy described in

2 section 342(b); and

3 (8) any additional information required by the

4 Secretary.

5 (e) METHODS.—The Secretary may, to collect the in6 formation described in subsections (c) and (d), use methods

7 described in subtitle A.

8 (f) PERFORMANCE ASSESSMENTS AND IMPROVE9 MENTS.—

10 (1) ASSESSMENTS.—The Secretary shall conduct

11 an annual assessment of the performance of each Job

12 Corps center. Based on the assessment, the Secretary

13 shall take measures to continuously improve the per14 formance of the Job Corps program.

15 (2) PERFORMANCE IMPROVEMENT PLANS.—With

16 respect to a Job Corps center that fails to meet the

17 expected levels of performance relating to the core per18 formance measures specified in subsection (c), the Sec19 retary shall develop and implement a performance

20 improvement plan. Such a plan shall require action

21 including—

22 (A) providing technical assistance to the

23 center;

24 (B) changing the vocational training offered

25 at the center;
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1 (C) changing the management staff of the

2 center;

3 (D) replacing the operator of the center;

4 (E) reducing the capacity of the center;

5 (F) relocating the center; or

6 (G) closing the center.

7 (3) ADDITIONAL PERFORMANCE IMPROVEMENT

8 PLANS.—In addition to the performance improvement

9 plans required under paragraph (2), the Secretary

10 may develop and implement additional performance

11 improvement plans. Such a plan shall require im12 provements, including the actions described in para13 graph (2), for a Job Corps center that fails to meet

14 criteria established by the Secretary other than the ex15 pected levels of performance described in paragraph

16 (2).

17 SEC. 350. GENERAL PROVISIONS.

18 The Secretary is authorized to—

19 (1) disseminate, with regard to the provisions of

20 section 3204 of title 39, United States Code, data and

21 information in such forms as the Secretary shall de22 termine to be appropriate, to public agencies, private

23 organizations, and the general public;

24 (2) subject to section 347(b), collect or com25 promise all obligations to or held by the Secretary
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1 and exercise all legal or equitable rights accruing to

2 the Secretary in connection with the payment of obli3 gations until such time as such obligations may be re4 ferred to the Attorney General for suit or collection;

5 and

6 (3) expend funds made available for purposes of

7 this subtitle—

8 (A) for printing and binding, in accordance

9 with applicable law (including regulation); and

10 (B) without regard to any other law (in11 cluding regulation), for rent of buildings and

12 space in buildings and for repair, alteration,

13 and improvement of buildings and space in

14 buildings rented by the Secretary, except that the

15 Secretary shall not expend funds under the au16 thority of this subparagraph—

17 (i) except when necessary to obtain an

18 item, service, or facility, that is required in

19 the proper administration of this subtitle,

20 and that otherwise could not be obtained, or

21 could not be obtained in the quantity or

22 quality needed, or at the time, in the form,

23 or under the conditions in which the item,

24 service, or facility is needed; and
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1 (ii) prior to having given written noti2 fication to the Administrator of General

3 Services (if the expenditure would affect an

4 activity that otherwise would be under the

5 jurisdiction of the General Services Admin6 istration) of the intention of the Secretary

7 to make the expenditure, and the reasons

8 and justifications for the expenditure.

9 SEC. 351. AUTHORIZATION OF APPROPRIATIONS.

10 There are authorized to be appropriated to carry out

11 this subtitle such sums as may be necessary for each of the

12 fiscal years 1999 through 2004.

13 Subtitle C—National Programs

14 SEC. 361. NATIVE AMERICAN PROGRAMS.

15 (a) PURPOSE AND POLICY.—

16 (1) PURPOSE.—The purpose of this section is to

17 support workforce investment activities and supple18 mental services for Indian and Native Hawaiian in19 dividuals in order—

20 (A) to develop more fully the academic, oc21 cupational, and literacy skills of such individ22 uals;

23 (B) to make such individuals more competi24 tive in the workforce; and
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1 (C) to promote the economic and social de2 velopment of Indian and Native Hawaiian com3 munities in accordance with the goals and values

4 of such communities.

5 (2) INDIAN POLICY.—All programs assisted

6 under this section shall be administered in a manner

7 consistent with the principles of the Indian Self-De8 termination and Education Assistance Act (25 U.S.C.

9 450 et seq.) and the government-to-government rela10 tionship between the Federal Government and Indian

11 tribal governments.

12 (b) DEFINITIONS.—In this section:

13 (1) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANI14 ZATION.—The terms ‘‘Indian’’, ‘‘Indian tribe’’, and

15 ‘‘tribal organization’’ have the meanings given such

16 terms in subsections (d), (e), and (l), respectively, of

17 section 4 of the Indian Self-Determination and Edu18 cation Assistance Act (25 U.S.C. 450b).

19 (2) NATIVE HAWAIIAN AND NATIVE HAWAIIAN OR20 GANIZATION.—The terms ‘‘Native Hawaiian’’ and

21 ‘‘Native Hawaiian organization’’ have the meanings

22 given such terms in paragraphs (1) and (3), respec23 tively, of section 9212 of the Native Hawaiian Edu24 cation Act (20 U.S.C. 7912).
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1 (c) PROGRAMS AUTHORIZED.—The Secretary shall

2 make grants to, or enter into contracts or cooperative agree3 ments with, Indian tribes, tribal organizations, Indian-con4 trolled organizations serving Indians, or Native Hawaiian

5 organizations to carry out the authorized activities de6 scribed in subsection (d).

7 (d) AUTHORIZED ACTIVITIES.—

8 (1) IN GENERAL.—Funds made available under

9 this section shall be used to carry out the activities

10 described in paragraph (2) that—

11 (A) are consistent with this section; and

12 (B) are necessary to meet the needs of Indi13 ans or Native Hawaiians preparing to enter, re14 enter, or retain unsubsidized employment.

15 (2) WORKFORCE INVESTMENT ACTIVITIES AND

16 SUPPLEMENTAL SERVICES.—

17 (A) IN GENERAL.—Funds made available

18 under this section shall be used for—

19 (i) building a comprehensive facility to

20 be utilized by American Samoans residing

21 in Hawaii for the co-location of federally

22 funded and State funded workforce invest23 ment activities;
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1 (ii) comprehensive workforce invest2 ment activities for Indians or Native Ha3 waiians; or

4 (iii) supplemental services for Indian

5 or Native Hawaiian youth on or near In6 dian reservations and in Oklahoma, Alaska,

7 or Hawaii.

8 (B) SPECIAL RULE.—Notwithstanding any

9 other provision of this section, individuals who

10 were eligible to participate in programs under

11 section 401 of the Job Training Partnership Act

12 (29 U.S.C. 1671) (as such section was in effect

13 on the day before the date of enactment of this

14 Act) shall be eligible to participate in an activ15 ity assisted under subparagraph (A)(i).

16 (e) PROGRAM PLAN.—In order to receive a grant or

17 enter into a contract or cooperative agreement under this

18 section an entity described in subsection (c) shall submit

19 to the Secretary a plan that describes a 2-year strategy for

20 meeting the needs of Indian or Native Hawaiian individ21 uals, as appropriate, in the area served by such entity. Such

22 plan shall—

23 (1) be consistent with the purpose of this section;

24 (2) identify the population to be served;
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1 (3) identify the education and employment needs

2 of the population to be served and the manner in

3 which the activities to be provided will strengthen the

4 ability of the individuals served to obtain or retain

5 unsubsidized employment;

6 (4) describe the activities to be provided and the

7 manner in which such activities are to be integrated

8 with other appropriate activities; and

9 (5) describe, after the entity submitting the plan

10 consults with the Secretary, the performance measures

11 to be used to assess the performance of entities in car12 rying out the activities assisted under this section.

13 (f) CONSOLIDATION OF FUNDS.—Each entity receiving

14 assistance under this section may consolidate such assist15 ance with assistance received from related programs in ac16 cordance with the provisions of the Indian Employment,

17 Training and Related Services Demonstration Act of 1992

18 (25 U.S.C. 3401 et seq.).

19 (g) NONDUPLICATIVE AND NONEXCLUSIVE SERV20 ICES.—Nothing in this section shall be construed—

21 (1) to limit the eligibility of any entity described

22 in subsection (c) to participate in any activity offered

23 by a State or local entity under this Act; or

24 (2) to preclude or discourage any agreement, be25 tween any entity described in subsection (c) and any
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1 State or local entity, to facilitate the provision of

2 services by such entity or to the population served by

3 such entity.

4 (h) ADMINISTRATIVE PROVISIONS.—

5 (1) ORGANIZATIONAL UNIT ESTABLISHED.—The

6 Secretary shall designate a single organizational unit

7 within the Department of Labor that shall have pri8 mary responsibility for the administration of the ac9 tivities authorized under this section.

10 (2) REGULATIONS.—The Secretary shall consult

11 with the entities described in subsection (c) in—

12 (A) establishing regulations to carry out

13 this section, including performance measures for

14 entities receiving assistance under such sub15 section, taking into account the economic cir16 cumstances of such entities; and

17 (B) developing a funding distribution plan

18 that takes into consideration previous levels of

19 funding (prior to the date of enactment of this

20 Act) to such entities.

21 (3) WAIVERS.—

22 (A) IN GENERAL.—With respect to an entity

23 described in subsection (c), the Secretary, not24 withstanding any other provision of law, may,

25 pursuant to a request submitted by such entity
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1 that meets the requirements established under

2 paragraph (2), waive any of the statutory or reg3 ulatory requirements of this title that are incon4 sistent with the specific needs of the entities de5 scribed in such subsection, except that the Sec6 retary may not waive requirements relating to

7 wage and labor standards, worker rights, partici8 pation and protection of participants, grievance

9 procedures, and judicial review.

10 (B) REQUEST AND APPROVAL.—An entity

11 described in subsection (c) that requests a waiver

12 under subparagraph (A) shall submit a plan to

13 the Secretary to improve the program of

14 workforce investment activities carried out by the

15 entity, which plan shall meet the requirements

16 established by the Secretary and shall be gen17 erally consistent with the requirements of section

18 379(i)(3).

19 (4) ADVISORY COUNCIL.—

20 (A) IN GENERAL.—The Secretary shall es21 tablish a Native American Employment and

22 Training Council to facilitate the consultation

23 described in paragraph (2).

24 (B) COMPOSITION.—The Council shall be

25 composed of individuals, appointed by the Sec-
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1 retary, who are representatives of the entities de2 scribed in subsection (c).

3 (C) DUTIES.—The Council shall advise the

4 Secretary on all aspects of the operation and ad5 ministration of the programs assisted under this

6 section, including the selection of the individual

7 appointed as the head of the unit established

8 under paragraph (1).

9 (D) PERSONNEL MATTERS.—

10 (i) COMPENSATION OF MEMBERS.—

11 Members of the Council shall serve without

12 compensation.

13 (ii) TRAVEL EXPENSES.—The members

14 of the Council shall be allowed travel ex15 penses, including per diem in lieu of sub16 sistence, at rates authorized for employees of

17 agencies under subchapter I of chapter 57 of

18 title 5, United States Code, while away

19 from their homes or regular places of busi20 ness in the performance of services for the

21 Council.

22 (iii) ADMINISTRATIVE SUPPORT.—The

23 Secretary shall provide the Council with

24 such administrative support as may be nec-
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1 essary to perform the functions of the Coun2 cil.

3 (E) CHAIRPERSON.—The Council shall se4 lect a chairperson from among its members.

5 (F) MEETINGS.—The Council shall meet not

6 less than twice each year.

7 (G) APPLICATION.—Section 14 of the Fed8 eral Advisory Committee Act (5 U.S.C. App.)

9 shall not apply to the Council.

10 (5) TECHNICAL ASSISTANCE.—The Secretary,

11 acting through the unit established under paragraph

12 (1), is authorized to provide technical assistance to

13 entities described in subsection (c) that receive assist14 ance under this section to enable such entities to im15 prove the activities authorized under this section that

16 are provided by such entities.

17 SEC. 362. MIGRANT AND SEASONAL FARMWORKER PRO18 GRAMS.

19 (a) IN GENERAL.—Every 2 years, the Secretary shall,

20 on a competitive basis, make grants to, or enter into con21 tracts with, eligible entities to carry out the activities de22 scribed in subsection (d).

23 (b) ELIGIBLE ENTITIES.—To be eligible to receive a

24 grant or enter into a contract under this section, an entity

25 shall have an understanding of the problems of eligible mi-
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1 grant and seasonal farmworkers (including dependents), a

2 familiarity with the area to be served, and the ability to

3 demonstrate a capacity to administer effectively a diversi4 fied program of workforce investment activities (including

5 youth activities) and related assistance for eligible migrant

6 and seasonal farmworkers.

7 (c) PROGRAM PLAN.—

8 (1) IN GENERAL.—To be eligible to receive a

9 grant or enter into a contract under this section, an

10 entity described in subsection (b) shall submit to the

11 Secretary a plan that describes a 2-year strategy for

12 meeting the needs of eligible migrant and seasonal

13 farmworkers in the area to be served by such entity.

14 (2) ADMINISTRATION.—Grants and contracts

15 awarded under this section shall be centrally admin16 istered by the Department of Labor and competitively

17 awarded by the Secretary using procedures consistent

18 with standard Federal Government competitive pro19 curement policies.

20 (3) COMPETITION.—

21 (A) IN GENERAL.—The competition for

22 grants made and contracts entered into under

23 this section shall be conducted every 2 years.

24 (B) EXCEPTION.—Notwithstanding sub25 paragraph (A), if a recipient of such a grant or
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1 contract has performed satisfactorily under the

2 terms of the grant agreement or contract, the

3 Secretary may waive the requirement for such

4 competition for such recipient upon receipt from

5 the recipient of a satisfactory 2-year plan de6 scribed in paragraph (1) for the succeeding 2-

7 year grant or contract period.

8 (4) CONTENTS.—Such plan shall—

9 (A) identify the education and employment

10 needs of the eligible migrant and seasonal farm11 workers to be served and the manner in which

12 the workforce investment activities (including

13 youth activities) to be carried out will strengthen

14 the ability of the eligible migrant and seasonal

15 farmworkers to obtain or retain unsubsidized

16 employment or stabilize their unsubsidized em17 ployment;

18 (B) describe the related assistance, includ19 ing supportive services, to be provided and the

20 manner in which such assistance and services

21 are to be integrated and coordinated with other

22 appropriate services; and

23 (C) describe, after consultation with the

24 Secretary, the performance measures to be used
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1 to assess the performance of such entity in carry2 ing out the activities assisted under this section.

3 (d) AUTHORIZED ACTIVITIES.—Funds made available

4 under this section shall be used to carry out workforce in5 vestment activities (including youth activities) and provide

6 related assistance for eligible migrant and seasonal farm7 workers, which may include employment, training, edu8 cational assistance, literacy assistance, an English lan9 guage program, worker safety training, supportive services,

10 dropout prevention activities, follow-up services for those

11 individuals placed in employment, self-employment and re12 lated business enterprise development education as needed

13 by eligible migrant and seasonal farmworkers and identi14 fied pursuant to the plan required by subsection (c), and

15 technical assistance relating to capacity enhancement in

16 such areas as management information technology.

17 (e) CONSULTATION WITH GOVERNORS AND LOCAL

18 PARTNERSHIPS.—In making grants and entering into con19 tracts under this section, the Secretary shall consult with

20 the Governors and local partnerships of the States in which

21 the eligible entities will carry out the activities described

22 in subsection (d).

23 (f) REGULATIONS.—The Secretary shall consult with

24 eligible migrant and seasonal farmworkers groups and

25 States in establishing regulations to carry out this section,
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1 including performance measures for eligible entities that

2 take into account the economic circumstances and demo3 graphics of eligible migrant and seasonal farmworkers.

4 (g) DEFINITIONS.—In this section:

5 (1) DISADVANTAGED.—The term ‘‘disadvan6 taged’’, used with respect to a farmworker, means a

7 farmworker whose income, for 12 consecutive months

8 out of the 24 months prior to application for the pro9 gram involved, does not exceed the higher of—

10 (A) the poverty line (as defined in section

11 334(a)(2)(B)) for an equivalent period; or

12 (B) 70 percent of the lower living standard

13 income level, for an equivalent period.

14 (2) ELIGIBLE MIGRANT AND SEASONAL FARM15 WORKERS.—The term ‘‘eligible migrant and seasonal

16 farmworkers’’ means individuals who are eligible mi17 grant farmworkers or are eligible seasonal farm18 workers.

19 (3) ELIGIBLE MIGRANT FARMWORKER.—The

20 term ‘‘eligible migrant farmworker’’ means—

21 (A) an eligible seasonal farmworker de22 scribed in paragraph (4)(A) whose agricultural

23 labor requires travel to a job site such that the

24 farmworker is unable to return to a permanent

25 place of residence within the same day; and
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1 (B) a dependent of the farmworker described

2 in subparagraph (A).

3 (4) ELIGIBLE SEASONAL FARMWORKER.—The

4 term ‘‘eligible seasonal farmworker’’ means—

5 (A) a disadvantaged person who, for 12

6 consecutive months out of the 24 months prior to

7 application for the program involved, has been

8 primarily employed in agricultural labor that is

9 characterized by chronic unemployment or

10 underemployment; and

11 (B) a dependent of the person described in

12 subparagraph (A).

13 SEC. 363. VETERANS’ WORKFORCE INVESTMENT PRO14 GRAMS.

15 (a) AUTHORIZATION.—

16 (1) IN GENERAL.—The Secretary shall conduct,

17 directly or through grants or contracts, programs to

18 meet the needs for workforce investment activities of

19 service-connected disabled veterans, Vietnam era vet20 erans, and recently separated veterans.

21 (2) CONDUCT OF PROGRAMS.—Programs sup22 ported under this section may be conducted through

23 grants and contracts with public agencies and private

24 nonprofit organizations, including recipients of Fed25 eral assistance under other provisions of this title,
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1 that the Secretary determines have an understanding

2 of the unemployment problems of veterans described

3 in paragraph (1), familiarity with the area to be

4 served, and the capability to administer effectively a

5 program of workforce investment activities for such

6 veterans.

7 (3) REQUIRED ACTIVITIES.—Programs supported

8 under this section shall include—

9 (A) activities to enhance services provided

10 to veterans by other providers of workforce in11 vestment activities funded by Federal, State, or

12 local government;

13 (B) activities to provide workforce invest14 ment activities to such veterans that are not ade15 quately provided by other public providers of

16 workforce investment activities; and

17 (C) outreach and public information activi18 ties to develop and promote maximum job and

19 job training opportunities for such veterans and

20 to inform such veterans about employment, job

21 training, on-the-job training and educational op22 portunities under this title, under title 38, Unit23 ed States Code, and under other provisions of

24 law, which activities shall be coordinated with
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1 activities provided through the one-stop customer

2 service centers.

3 (b) ADMINISTRATION OF PROGRAMS.—

4 (1) IN GENERAL.—The Secretary shall admin5 ister programs supported under this section through

6 the Assistant Secretary for Veterans’ Employment

7 and Training.

8 (2) ADDITIONAL RESPONSIBILITIES.—In carry9 ing out responsibilities under this section, the Assist10 ant Secretary for Veterans’ Employment and Train11 ing shall—

12 (A) be responsible for the awarding of

13 grants and contracts and the distribution of

14 funds under this section and for the establish15 ment of appropriate fiscal controls, accountabil16 ity, and program performance measures for re17 cipients of grants and contracts under this sec18 tion; and

19 (B) consult with the Secretary of Veterans

20 Affairs and take steps to ensure that programs

21 supported under this section are coordinated, to

22 the maximum extent feasible, with related pro23 grams and activities conducted under title 38,

24 United States Code, including programs and ac25 tivities conducted under subchapter II of chapter
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1 77 of such title, chapters 30, 31, 32, and 34 of

2 such title, and sections 1712A, 1720A, 3687, and

3 4103A of such title.

4 SEC. 364. YOUTH OPPORTUNITY GRANTS.

5 (a) GRANTS.—

6 (1) IN GENERAL.—Using funds made available

7 under section 302(b)(3)(A), the Secretary shall make

8 grants to eligible local partnerships to provide activi9 ties described in subsection (b) for youth to increase

10 the long-term employment of eligible youth who live

11 in empowerment zones, enterprise communities, and

12 high poverty areas and who seek assistance.

13 (2) GRANT PERIOD.—The Secretary may make a

14 grant under this section for a 1-year period, and may

15 renew the grant for each of the 4 succeeding years.

16 (3) GRANT AWARDS.—The minimum amount

17 that may be made available to a grant recipient for

18 the first year of a grant made under this section shall

19 be $10,000,000.

20 (b) USE OF FUNDS.—

21 (1) IN GENERAL.—A local partnership that re22 ceives a grant under this section shall use the funds

23 made available through the grant to provide activities

24 that meet the requirements of section 316, except as

25 provided in paragraph (2), as well as youth develop-
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1 ment activities such as activities relating to leader2 ship development, citizenship, and community service,

3 and recreation activities.

4 (2) INTENSIVE PLACEMENT AND FOLLOWUP

5 SERVICES.—In providing activities under this section,

6 a local partnership shall provide—

7 (A) intensive placement services; and

8 (B) followup services for not less than 24

9 months after the completion of participation in

10 the other activities described in this subsection,

11 as appropriate.

12 (c) ELIGIBLE LOCAL PARTNERSHIPS.—To be eligible

13 to receive a grant under this section, a local partnership—

14 (1) shall serve a community that—

15 (A) has a population of at least 50,000; and

16 (B) has been designated as an empowerment

17 zone or an enterprise community under section

18 1391 of the Internal Revenue Code of 1986; or

19 (2) in a State without a zone or community de20 scribed in paragraph (1)(B), shall serve a community

21 that has been designated as a high poverty area by

22 the Governor of the State.

23 (d) APPLICATION.—To be eligible to receive a grant

24 under this section, a local partnership shall submit an ap25 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 negotiate

18 and reach agreement with the local partnership on

19 performance measures that will be used to evaluate

20 the performance of the local partnership in carrying

21 out the activities described in subsection (b). Each

22 local performance measure shall consist of an indica23 tor of performance referred to in paragraph (2) or (3)

24 of section 321(b), and a performance level referred to

25 in paragraph (2).
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1 (2) PERFORMANCE LEVELS.—The Secretary shall

2 negotiate and reach agreement with the local partner3 ship regarding the levels of performance expected to be

4 achieved by the local partnership on the indicators of

5 performance.

6 SEC. 365. INCENTIVE GRANTS.

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

8 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 States

15 submitting a State unified plan as described in section 501

16 that is approved by the appropriate Secretaries as described

17 in such section.

18 (c) USE OF FUNDS.—A State that receives an incen19 tive grant under this section shall use the funds made avail20 able through the grant to carry out innovative programs

21 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 tran25 sitions from carrying out activities under provisions de-
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1 scribed in section 391 to carrying out activities under this

2 title.

3 (b) PERFORMANCE IMPROVEMENT.—

4 (1) GENERAL ASSISTANCE.—

5 (A) AUTHORITY.—The Secretary—

6 (i) shall provide technical assistance to

7 States that do not meet a State performance

8 measure described in section 321(b) for a

9 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 pro13 mote the continuous improvement of the

14 programs and activities authorized under

15 this title.

16 (B) FORM OF ASSISTANCE.—In carrying

17 out this paragraph on behalf of a State, or grant

18 recipient under section 361 or 362, the Sec19 retary, after consultation with the State or grant

20 recipient, may award grants and enter into con21 tracts 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 available

4 pursuant to section 302(a)(2), the Secretary shall

5 reserve not more than 5 percent of such amounts

6 to provide technical assistance to States that do

7 not meet the State performance measures de8 scribed in section 321(b) with respect to employ9 ment and training activities for dislocated work10 ers. Using such reserved funds, the Secretary

11 may provide such assistance to other States,

12 local areas, business and labor organizations,

13 and other entities involved in providing assist14 ance to dislocated workers, to promote the con15 tinuous improvement of assistance provided to

16 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 promot22 ing, establishing, and assisting labor-manage23 ment committees. Such projects shall be adminis24 tered through the dislocated worker office de25 scribed 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 Sec6 retary shall, every 2 years, publish in the Federal

7 Register, a plan that describes the demonstration and

8 pilot (including dislocated worker demonstration and

9 pilot), multiservice, research, and multistate project

10 priorities of the Department of Labor concerning em11 ployment and training for the 5-year period following

12 the submission of the plan. Copies of the plan shall

13 be transmitted to the appropriate committees of Con14 gress.

15 (2) LIMITATION.—With respect to a plan pub16 lished under paragraph (1), the Secretary shall ensure

17 that research projects (referred to in subsection (d))

18 are considered for incorporation into the plan only

19 after projects referred to in subsections (b), (c), and

20 (e) have been considered and incorporated into the

21 plan, and are funded only as funds remain to permit

22 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 the

6 efficiency of proposed projects; and

7 (D) the likelihood that the results of the

8 projects will be useful to policymakers and stake9 holders in addressing employment and training

10 problems.

11 (b) DEMONSTRATION AND PILOT PROJECTS.—

12 (1) IN GENERAL.—Under a plan published under

13 subsection (a), the Secretary shall, through grants or

14 contracts, carry out demonstration and pilot projects

15 for the purpose of developing and implementing tech16 niques and approaches, and demonstrating the effec17 tiveness of specialized methods, in addressing employ18 ment and training needs. Such projects shall include

19 the provision of direct services to individuals to en20 hance employment opportunities and an evaluation

21 component.

22 (2) LIMITATIONS.—

23 (A) COMPETITIVE AWARDS.—Grants or con24 tracts awarded for carrying out demonstration

25 and pilot projects under this subsection shall be
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1 awarded only on a competitive basis, except that

2 a noncompetitive award may be made in the

3 case of a project that is funded jointly with other

4 public or private sector entities that provide a

5 substantial portion of the funding for the project.

6 (B) ELIGIBLE ENTITIES.—Grants or con7 tracts may be awarded under this subsection

8 only to—

9 (i) entities with recognized expertise

10 in—

11 (I) conducting national dem12 onstration projects;

13 (II) utilizing state-of-the-art dem14 onstration methods; and

15 (III) conducting evaluations of

16 employment and training projects; or

17 (ii) State and local entities with exper18 tise in operating or overseeing employment

19 and training programs.

20 (C) TIME LIMITS.—The Secretary shall es21 tablish appropriate time limits for carrying out

22 demonstration and pilot projects under this sub23 section.

24 (c) MULTISERVICE PROJECTS.—
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1 (1) IN GENERAL.—Under a plan published under

2 subsection (a), the Secretary shall, through grants or

3 contracts, carry out multiservice projects—

4 (A) that will test an array of approaches to

5 the provision of employment and training serv6 ices to a variety of targeted populations;

7 (B) in which the entity carrying out the

8 project, in conjunction with employers, organized

9 labor, and other groups such as the disability

10 community, will design, develop, and test var11 ious training approaches in order to determine

12 effective practices; and

13 (C) that will assist in the development and

14 replication of effective service delivery strategies

15 for targeted populations for the national employ16 ment and training system as a whole.

17 (2) LIMITATIONS.—

18 (A) COMPETITIVE AWARDS.—Grants or con19 tracts awarded for carrying out multiservice

20 projects under this subsection shall be awarded

21 only on a competitive basis.

22 (B) TIME LIMITS.—A grant or contract

23 shall not be awarded under this subsection to the

24 same organization for more than 3 consecutive
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1 years unless such grant or contract is competi2 tively reevaluated within such period.

3 (d) RESEARCH.—

4 (1) IN GENERAL.—Under a plan published under

5 subsection (a), the Secretary shall, through grants or

6 contracts, carry out research projects that will con7 tribute to the solution of employment and training

8 problems in the United States.

9 (2) LIMITATIONS.—

10 (A) COMPETITIVE AWARDS.—Grants or con11 tracts awarded for carrying out research projects

12 under this subsection in amounts that exceed

13 $50,000 shall be awarded only on a competitive

14 basis, except that a noncompetitive award may

15 be made in the case of a project that is funded

16 jointly with other public or private sector enti17 ties that provide a substantial portion of the

18 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 exper22 tise in the methods, techniques, and knowledge of

23 the social sciences.
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1 (C) TIME LIMITS.—The Secretary shall es2 tablish appropriate time limits for the duration

3 of research projects funded under this subsection.

4 (e) MULTISTATE PROJECTS.—

5 (1) IN GENERAL.—

6 (A) AUTHORITY.—Under a plan published

7 under subsection (a), the Secretary may, through

8 grants or contracts, carry out multistate projects

9 that require demonstrated expertise that is avail10 able at the national level to effectively dissemi11 nate best practices and models for implementing

12 employment and training services, address the

13 specialized employment and training needs of

14 particular service populations, or address indus15 trywide skill shortages.

16 (B) DESIGN OF GRANTS.—Grants or con17 tracts awarded under this subsection shall be de18 signed to obtain information relating to the pro19 vision of services under different economic condi20 tions or to various demographic groups in order

21 to provide guidance at the national and State

22 levels about how best to administer specific em23 ployment and training services.

24 (2) LIMITATIONS.—
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1 (A) COMPETITIVE AWARDS.—Grants or con2 tracts awarded for carrying out multistate

3 projects under this subsection shall be awarded

4 only on a competitive basis.

5 (B) TIME LIMITS.—A grant or contract

6 shall not be awarded under this subsection to the

7 same organization for more than 3 consecutive

8 years unless such grant or contract is competi9 tively reevaluated within such period.

10 (f) DISLOCATED WORKER PROJECTS.—Of the amount

11 made available pursuant to section 302(a)(2)(A) for any

12 program year, the Secretary shall use not more than 5 per13 cent of such amount to carry out demonstration and pilot

14 projects, multiservice projects, and multistate projects, re15 lating to the employment and training needs of dislocated

16 workers. Of the requirements of this section, such projects

17 shall be subject only to the provisions relating to review and

18 evaluation of applications under subsection (g). Such

19 projects may include demonstration and pilot projects relat20 ing to promoting self-employment, promoting job creation,

21 averting dislocations, assisting dislocated farmers, assisting

22 dislocated fishermen, and promoting public works. Such

23 projects shall be administered through the dislocated worker

24 office described in section 369(b).
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1 (g) PEER REVIEW.—The Secretary shall utilize a peer

2 review process to—

3 (1) review and evaluate all applications for

4 grants and contracts in amounts that exceed $100,000

5 that are submitted under this section; and

6 (2) review and designate exemplary and promis7 ing programs under this section.

8 SEC. 368. EVALUATIONS.

9 (a) PROGRAMS AND ACTIVITIES CARRIED OUT UNDER

10 THIS TITLE.—For the purpose of improving the manage11 ment and effectiveness of programs and activities carried

12 out under this title, the Secretary shall provide for the con13 tinuing evaluation of the programs and activities. Such

14 evaluations shall address—

15 (1) the general effectiveness of such programs

16 and activities in relation to their cost;

17 (2) the effectiveness of the performance measures

18 relating to such programs and activities;

19 (3) the effectiveness of the structure and mecha20 nisms for delivery of services through such programs

21 and activities;

22 (4) the impact of the programs and activities on

23 the community and participants involved;

24 (5) the impact of such programs and activities

25 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 groups;

3 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 pro8 grams and activities administered under—

9 (1) the Wagner-Peyser Act (29 U.S.C. 49 et seq.);

10 (2) the Act of August 16, 1937 (commonly known

11 as the ‘‘National Apprenticeship Act’’; 50 Stat. 664,

12 chapter 663; 29 U.S.C. 50 et seq.);

13 (3) the Older Americans Act of 1965 (42 U.S.C.

14 3001 et seq.);

15 (4) chapter 2 of title II of the Trade Act of 1974

16 (19 U.S.C. 2271 et seq.); and

17 (5) the Federal unemployment insurance pro18 gram under titles III, IX, and XII of the Social Secu19 rity Act (42 U.S.C. 501 et seq., 1101 et seq., and 1321

20 et seq.).

21 (c) TECHNIQUES.—Evaluations conducted under this

22 section shall utilize appropriate methodology and research

23 designs, which may include the use of control groups chosen

24 by scientific random assignment methodologies. Such an

25 evaluation shall be conducted by a person not immediately
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1 involved in the administration of the program or activity

2 being evaluated.

3 (d) REPORTS.—The entity carrying out an evaluation

4 described in subsection (a), (b), or (c) shall prepare and

5 submit to the Secretary a draft report and a final report

6 containing the results of the evaluation.

7 (e) REPORTS TO CONGRESS.—Not later than 30 days

8 after the completion of such a draft report, the Secretary

9 shall transmit the draft report to the appropriate commit10 tees of Congress. Not later than 60 days after the completion

11 of such a final report, the Secretary shall transmit the final

12 report to the appropriate committees of Congress.

13 SEC. 369. NATIONAL EMERGENCY GRANTS.

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

15 award national emergency grants in a timely manner—

16 (1) to an entity described in subsection (c) to

17 provide employment and training assistance to work18 ers affected by major economic dislocations, such as

19 plant closures, mass layoffs, or closures and realign20 ments of military installations;

21 (2) to provide assistance to the Governor of any

22 State within the boundaries of which is an area that

23 has suffered an emergency or a major disaster as de24 fined in paragraphs (1) and (2), respectively, of sec25 tion 102 of The Robert T. Stafford Disaster Relief
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1 and Emergency Assistance Act (42 U.S.C. 5122 (1)

2 and (2)) (referred to in this section as the ‘‘disaster

3 area’’) to provide disaster relief employment in the

4 area; and

5 (3) to provide additional assistance to a State or

6 local partnership for eligible dislocated workers in a

7 case in which the State or local partnership has ex8 pended the funds provided under this section to carry

9 out activities described in paragraphs (1) and (2)

10 and can demonstrate the need for additional funds to

11 provide appropriate services for such workers, in ac12 cordance with requirements prescribed by the Sec13 retary.

14 (b) ADMINISTRATION.—The Secretary shall designate

15 a dislocated worker office to coordinate the functions of the

16 Secretary under this title relating to national emergency

17 grants.

18 (c) EMPLOYMENT AND TRAINING ASSISTANCE RE19 QUIREMENTS.—

20 (1) APPLICATION.—To be eligible to receive a

21 grant under subsection (a)(1), an entity shall submit

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

23 manner, and containing such information as the Sec24 retary may require.
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1 (2) ELIGIBLE ENTITY.—In this subsection, the

2 term ‘‘entity’’ means a State, a local partnership, an

3 entity described in section 361(c), an employer or em4 ployer association, a labor organization, and an en5 tity determined to be eligible by the Governor of the

6 State involved.

7 (d) DISASTER RELIEF EMPLOYMENT ASSISTANCE RE8 QUIREMENTS.—

9 (1) IN GENERAL.—Funds made available under

10 subsection (a)(2)—

11 (A) shall be used to provide disaster relief

12 employment on projects that provide food, cloth13 ing, shelter, and other humanitarian assistance

14 for disaster victims, and projects regarding dem15 olition, cleaning, repair, renovation, and recon16 struction of damaged and destroyed structures,

17 facilities, and lands located within the disaster

18 area;

19 (B) may be expended through public and

20 private agencies and organizations engaged in

21 such projects; and

22 (C) may be expended to provide the services

23 authorized under section 315(c).

24 (2) ELIGIBILITY.—An individual shall be eligible

25 to be offered disaster relief employment under sub-
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1 section (a)(2) if such individual is a dislocated work2 er, is a long-term unemployed individual, or is tem3 porarily or permanently laid off as a consequence of

4 the disaster.

5 (3) LIMITATIONS ON DISASTER RELIEF EMPLOY6 MENT.—No individual shall be employed under sub7 section (a)(2) for more than 6 months for work relat8 ed to recovery from a single natural disaster.

9 SEC. 370. AUTHORIZATION OF APPROPRIATIONS.

10 (a) IN GENERAL.—

11 (1) NATIVE AMERICAN PROGRAMS; MIGRANT AND

12 SEASONAL FARMWORKER PROGRAMS; VETERANS’ EM13 PLOYMENT PROGRAMS.—Subject to subsection (b)(1),

14 there are authorized to be appropriated to carry out

15 sections 361 through 363 such sums as may be nec16 essary for each of the fiscal years 1999 through 2004.

17 (2) INCENTIVE GRANTS; TECHNICAL ASSISTANCE;

18 DEMONSTRATION AND PILOT PROJECTS; EVALUA19 TIONS.—Subject to subsection (b)(2), there are author20 ized to be appropriated to carry out sections 365

21 through 368, such sums as may be necessary for each

22 of fiscal years 1999 through 2004.

23 (b) RESERVATIONS.—

24 (1) NATIVE AMERICAN PROGRAMS; MIGRANT AND

25 SEASONAL FARMWORKER PROGRAMS; VETERANS’ EM-
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1 PLOYMENT PROGRAMS.—Of the amount appropriated

2 under subsection (a)(1) for a fiscal year, the Sec3 retary shall—

4 (A) reserve not less than $55,000,000 for

5 carrying out section 361;

6 (B) reserve not less than $70,000,000 for

7 carrying out section 362; and

8 (C) reserve not less than $7,300,000 for car9 rying out section 363.

10 (2) INCENTIVE GRANTS; TECHNICAL ASSISTANCE;

11 DEMONSTRATION AND PILOT PROJECTS; EVALUA12 TIONS.—Of the amount appropriated under sub13 section (a)(2) for a fiscal year, the Secretary shall—

14 (A) reserve 36.8 percent for carrying out

15 section 365;

16 (B) reserve 25 percent for carrying out sec17 tion 366 (other than section 366(b)(2));

18 (C) reserve 24.2 percent of a carrying out

19 section 367 (other than 367(f)); and

20 (D) reserve 14 percent for carrying out sec21 tion 368.

22 Subtitle D—Administration

23 SEC. 371. REQUIREMENTS AND RESTRICTIONS.

24 (a) BENEFITS.—

25 (1) WAGES.—
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1 (A) IN GENERAL.—Individuals in on-the-job

2 training or individuals employed in programs

3 and activities carried out under this title shall

4 be compensated at the same rates, including

5 periodic increases, as trainees or employees who

6 are similarly situated in similar occupations by

7 the same employer and who have similar skills.

8 Such rates shall be in accordance with applicable

9 law, but in no event less than the higher of the

10 rate specified in section 6(a)(1) of the Fair

11 Labor Standards Act of 1938 (29 U.S.C.

12 206(a)(1)) or the applicable State or local mini13 mum wage law.

14 (B) CONSTRUCTION.—The reference in sub15 paragraph (A) to section 6(a)(1) of the Fair

16 Labor Standards Act of 1938—

17 (i) shall be deemed to be a reference to

18 section 6(c) of that Act (29 U.S.C. 206(c))

19 for individuals in the Commonwealth of

20 Puerto Rico;

21 (ii) shall be deemed to be a reference to

22 section 6(a)(3) (29 U.S.C. 206(a)(3)) of that

23 Act for individuals in American Samoa;

24 and
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1 (iii) shall not be applicable for indi2 viduals in other territorial jurisdictions in

3 which section 6 of the Fair Labor Stand4 ards Act of 1938 (29 U.S.C. 206) does not

5 apply.

6 (2) TREATMENT OF ALLOWANCES, EARNINGS,

7 AND PAYMENTS.—Allowances, earnings, and pay8 ments to individuals participating in programs and

9 activities carried out under this title shall not be con10 sidered to be income for the purposes of determining

11 eligibility for, and the amount of income transfer and

12 in-kind aid furnished under, any Federal or federally

13 assisted program based on need, other than as pro14 vided under the Social Security Act (42 U.S.C. 301

15 et seq.).

16 (b) LABOR STANDARDS.—

17 (1) DISPLACEMENT.—

18 (A) PROHIBITION.—A participant in a pro19 gram or activity authorized under this title (re20 ferred to in this subsection as a ‘‘specified activ21 ity’’) shall not displace (including a partial dis22 placement, such as a reduction in the hours of

23 nonovertime work, wages, or employment bene24 fits) any currently employed employee (as of the

25 date of the participation).
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1 (B) PROHIBITION ON IMPAIRMENT OF CON2 TRACTS.—A specified activity shall not impair

3 an existing contract for services or collective bar4 gaining agreement, and no such activity that

5 would be inconsistent with the terms of a collec6 tive bargaining agreement shall be undertaken

7 without the written concurrence of the labor or8 ganization and employer concerned.

9 (2) OTHER PROHIBITIONS.—A participant in a

10 specified activity shall not be employed in a job—

11 (A) when any other individual is on layoff

12 from the same or any substantially equivalent

13 job with the participating employer;

14 (B) when the employer has terminated the

15 employment of any regular employee or other16 wise reduced the workforce of the employer with

17 the intention of filling the vacancy so created

18 with the participant; or

19 (C) that is created in a promotional line

20 that will infringe in any way on the pro21 motional opportunities of currently employed in22 dividuals (as of the date of the participation).

23 (3) HEALTH AND SAFETY.—Health and safety

24 standards established under Federal and State law

25 otherwise applicable to working conditions of employ-
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1 ees shall be equally applicable to working conditions

2 of participants engaged in specified activities. To the

3 extent that a State workers’ compensation law ap4 plies, workers’ compensation shall be provided to par5 ticipants on the same basis as the compensation is

6 provided to other individuals in the State in similar

7 employment.

8 (4) EMPLOYMENT CONDITIONS.—Individuals in

9 on-the-job training or individuals employed in pro10 grams and activities carried out under this title, shall

11 be provided benefits and working conditions at the

12 same level and to the same extent as other trainees or

13 employees working a similar length of time and doing

14 the same type of work.

15 (5) OPPORTUNITY TO SUBMIT COMMENTS.—Con16 sistent with sections 303(d)(2) and 309(c), interested

17 members of the public shall be provided an oppor18 tunity to submit comments with respect to programs

19 and activities proposed to be funded under subtitle A.

20 (c) GRIEVANCE PROCEDURE.—

21 (1) IN GENERAL.—Each State receiving an allot22 ment under section 302 and each grant recipient

23 under section 361 or 362 shall establish and maintain

24 a procedure for grievances or complaints alleging vio25 lations of the requirements of this title from partici-
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1 pants and other interested or affected parties. Such

2 procedure shall include an opportunity for a hearing

3 and be completed within 60 days after the date of the

4 filing of the grievance or complaint.

5 (2) INVESTIGATION.—

6 (A) IN GENERAL.—The Secretary shall in7 vestigate an allegation of a violation described in

8 paragraph (1) if—

9 (i) a decision relating to such violation

10 has not been reached within 60 days after

11 the date of the filing of the grievance or

12 complaint and either party appeals the de13 cision to the Secretary; or

14 (ii) a decision relating to such viola15 tion has been reached within 60 days after

16 the date of the filing and the party to which

17 such decision is adverse appeals the decision

18 to the Secretary.

19 (B) ADDITIONAL REQUIREMENT.—The Sec20 retary shall make a final determination relating

21 to an appeal made under subparagraph (A) no

22 later than 120 days after the date of such appeal.

23 (3) REMEDIES.—Remedies that may be imposed

24 under this subsection for a violation of any require25 ment of this title shall be limited—
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1 (A) to suspension or termination of pay2 ments under this title to a person that has vio3 lated any requirement of this title;

4 (B) to prohibition of placement of a partici5 pant with an employer that has violated any re6 quirement of this title;

7 (C) where applicable, to reinstatement of an

8 employee, payment of lost wages and benefits,

9 and reestablishment of other relevant terms, con10 ditions, and privileges of employment; and

11 (D) where appropriate, to other equitable

12 relief.

13 (4) CONSTRUCTION.—Nothing in paragraph (3)

14 shall be construed to prohibit a grievant or complain15 ant from pursuing a remedy authorized under an16 other Federal, State, or local law for a violation of

17 this title.

18 (d) RELOCATION.—

19 (1) PROHIBITION ON USE OF FUNDS TO ENCOUR20 AGE OR INDUCE RELOCATION.—No funds provided

21 under this title shall be used, or proposed for use, to

22 encourage or induce the relocation of a business or

23 part of a business if such relocation would result in

24 a loss of employment for any employee of such busi-
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1 ness at the original location and such original loca2 tion is within the United States.

3 (2) PROHIBITION ON USE OF FUNDS FOR CUS4 TOMIZED OR SKILL TRAINING AND RELATED ACTIVI5 TIES AFTER RELOCATION.—No funds provided under

6 this title for an employment and training activity

7 shall be used for customized or skill training, on-the8 job training, or company-specific assessments of job

9 applicants or employees, for any business or part of

10 a business that has relocated, until the date that is

11 120 days after the date on which such business com12 mences operations at the new location, if the reloca13 tion of such business or part of a business results in

14 a loss of employment for any employee of such busi15 ness at the original location and such original loca16 tion is within the United States.

17 (3) REPAYMENT.—If the Secretary determines

18 that a violation of paragraph (1) or (2) has occurred,

19 the Secretary shall require the State that has violated

20 such paragraph to repay to the United States an

21 amount equal to the amount expended in violation of

22 such paragraph.

23 (e) LIMITATION ON USE OF FUNDS.—No funds avail24 able under this title shall be used for employment generat25 ing activities, economic development activities, activities for
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1 the capitalization of businesses, investment in contract bid2 ding resource centers, or similar activities. No funds avail3 able under subtitle A shall be used for foreign travel.

4 SEC. 372. PROMPT ALLOCATION OF FUNDS.

5 (a) ALLOTMENTS AND ALLOCATIONS BASED ON LAT6 EST AVAILABLE DATA.—All allotments and allocations

7 under section 302, 306, or 366 shall be based on the latest

8 available data and estimates satisfactory to the Secretary.

9 All data relating to disadvantaged adults, disadvantaged

10 youth, and low-income individuals shall be based on the

11 most recent satisfactory data from the Bureau of the Census.

12 (b) PUBLICATION IN FEDERAL REGISTER RELATING

13 TO FORMULA FUNDS.—Whenever the Secretary allots funds

14 required to be allotted under section 302 or 366, the Sec15 retary shall publish in a timely fashion in the Federal Reg16 ister the proposed amount to be distributed to each recipient

17 of the funds.

18 (c) REQUIREMENT FOR FUNDS DISTRIBUTED BY FOR19 MULA.—All funds required to be allotted or allocated under

20 section 302, 306, or 366 shall be allotted or allocated within

21 45 days after the date of enactment of the Act appropriating

22 the funds, except that, if such funds are appropriated in

23 advance as authorized by section 379(g), such funds shall

24 be allotted or allocated not later than the March 31 preced-
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1 ing the program year for which such funds are to be avail2 able for obligation.

3 (d) AVAILABILITY OF FUNDS.—Funds shall be made

4 available under section 306 to the chief elected official for

5 a local area not later than 30 days after the date the funds

6 are made available to the Governor involved, under section

7 302, or 7 days after the date the local plan for the area

8 is approved, whichever is later.

9 SEC. 373. MONITORING.

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

11 monitor all recipients of financial assistance under this

12 title to determine whether the recipients are complying with

13 the provisions of this title, including the regulations issued

14 under this title.

15 (b) INVESTIGATIONS.—The Secretary may investigate

16 any matter the Secretary determines to be necessary to de17 termine the compliance of the recipients with this title, in18 cluding the regulations issued under this title. The inves19 tigations authorized by this subsection may include exam20 ining records (including making certified copies of the

21 records), questioning employees, and entering any premises

22 or onto any site in which any part of a program or activity

23 of such a recipient is conducted or in which any of the

24 records of the recipient are kept.
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1 (c) ADDITIONAL REQUIREMENT.—For the purpose of

2 any investigation or hearing conducted under this title by

3 the Secretary, the provisions of section 9 of the Federal

4 Trade Commission Act (15 U.S.C. 49) (relating to the at5 tendance of witnesses and the production of documents)

6 apply to the Secretary, in the same manner and to the same

7 extent as the provisions apply to the Federal Trade Com8 mission.

9 SEC. 374. FISCAL CONTROLS; SANCTIONS.

10 (a) ESTABLISHMENT OF FISCAL CONTROLS BY

11 STATES.—

12 (1) IN GENERAL.—Each State shall establish

13 such fiscal control and fund accounting procedures as

14 may be necessary to assure the proper disbursal of,

15 and accounting for, Federal funds allocated to local

16 areas under subtitle A. Such procedures shall ensure

17 that all financial transactions carried out under sub18 title A are conducted and records maintained in ac19 cordance with generally accepted accounting prin20 ciples applicable in each State.

21 (2) REGULATIONS.—The Secretary shall pre22 scribe regulations establishing uniform cost principles

23 that are substantially equivalent to such principles

24 generally applicable to recipients of Federal grant

25 funds, and are consistent with appropriate circulars
728

•S 1186 RS

1 of the Office of Management and Budget. At a mini2 mum, such regulations shall provide that—

3 (A) to be allowable, costs incurred under

4 this title shall—

5 (i) be necessary and reasonable for

6 proper and efficient administration of the

7 programs and activities carried out under

8 this title;

9 (ii) except for the administrative funds

10 described in sections 306(b)(5) and

11 314(c)(2), be allocable to the programs and

12 activities carried out under this title; and

13 (iii) not be a general expense required

14 to carry out the overall responsibilities of

15 State or local governments; and

16 (B) procurement transactions between local

17 partnerships and such governments shall be con18 ducted only on a cost-reimbursable basis.

19 (3) PROCUREMENT STANDARDS.—Each Gov20 ernor, in accordance with minimum requirements es21 tablished by the Secretary (after consultation with the

22 Governors) in regulations, shall prescribe and imple23 ment procurement standards to ensure fiscal account24 ability and prevent fraud and abuse in programs and

25 activities carried out under this title.
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•S 1186 RS

1 (4) MONITORING.—The Governor shall conduct

2 onsite monitoring of each local area within the State

3 to ensure compliance with the procurement standards

4 prescribed pursuant to paragraph (3).

5 (5) ACTION BY GOVERNOR.—If the Governor de6 termines that a local area is not in compliance with

7 the procurement standards prescribed pursuant to

8 paragraph (3), the Governor shall—

9 (A) require corrective action to secure

10 prompt compliance; and

11 (B) impose the sanctions provided under

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

13 required corrective action.

14 (6) CERTIFICATION.—The Governor shall, every

15 3 years, certify to the Secretary that—

16 (A) the State has implemented the procure17 ment standards prescribed under paragraph (3);

18 (B) the State has monitored local areas to

19 ensure compliance with the procurement stand20 ards as required under paragraph (4); and

21 (C) the State has taken appropriate action

22 to secure compliance pursuant to paragraph (5).

23 (7) ACTION BY THE SECRETARY.—If the Sec24 retary determines that the Governor has not fulfilled
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•S 1186 RS

1 the requirements of this subsection, the Secretary

2 shall—

3 (A) require corrective action to secure

4 prompt compliance; and

5 (B) impose the sanctions provided under

6 subsection (f) in the event of failure of the Gov7 ernor to take the required appropriate action to

8 secure compliance.

9 (b) SUBSTANTIAL VIOLATION.—

10 (1) ACTION BY GOVERNOR.—If, as a result of a

11 financial or compliance audit or otherwise, the Gov12 ernor determines that there is a substantial violation

13 of a specific provision of this title, including regula14 tions issued under this title, and corrective action has

15 not been taken, the Governor shall impose a reorga16 nization plan, which may include—

17 (A) decertifying the local partnership in18 volved in accordance with section 308(c)(3);

19 (B) prohibiting the use of providers who

20 have been identified as eligible providers of

21 workforce investment activities under chapter 3

22 of subtitle A;

23 (C) selecting an alternative entity to ad24 minister a program or activity for the local area

25 involved;
731

•S 1186 RS

1 (D) merging the local area into 1 or more

2 other local areas; or

3 (E) making such other changes as the Sec4 retary or Governor determines to be necessary to

5 secure compliance.

6 (2) APPEAL.—The action taken by the Governor

7 pursuant to paragraph (1) may be appealed to the

8 Secretary, who shall make a final decision on the ap9 peal not later than 60 days after the receipt of the ap10 peal.

11 (3) ACTION BY SECRETARY.—If the Governor

12 fails to take promptly the action required under para13 graph (1), the Secretary shall take such action.

14 (c) ACCESS BY COMPTROLLER GENERAL.—For the

15 purpose of evaluating and reviewing programs and activi16 ties established or provided for by this title, the Comptroller

17 General shall have access to and the right to copy any books,

18 accounts, records, correspondence, or other documents perti19 nent to such programs and activities that are in the posses20 sion, custody, or control of a State, a local partnership, any

21 recipient of funds under this title, or any subgrantee or con22 tractor of such a recipient.

23 (d) REPAYMENT OF CERTAIN AMOUNTS TO THE UNIT24 ED STATES.—
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1 (1) IN GENERAL.—Every recipient of funds

2 under this title shall repay to the United States

3 amounts found not to have been expended in accord4 ance with this title.

5 (2) OFFSET OF REPAYMENT.—If the Secretary

6 determines that a State has expended funds made

7 available under this title in a manner contrary to the

8 requirements of this title, the Secretary may offset re9 payment of such expenditures against any other

10 amount to which the State is or may be entitled, ex11 cept as provided under subsection (e)(1).

12 (3) REPAYMENT FROM DEDUCTION BY STATE.—

13 If the Secretary requires a State to repay funds as a

14 result of a determination that a local area of the

15 State has expended funds contrary to the require16 ments of this title, the Governor of the State may use

17 an amount deducted under paragraph (4) to repay

18 the funds, except as provided under subsection (e)(1).

19 (4) DEDUCTION BY STATE.—The Governor may

20 deduct an amount equal to the misexpenditure de21 scribed in paragraph (3) from subsequent program

22 year allocations to the local area from funds reserved

23 for the administrative costs of the local programs in24 volved, as appropriate.
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•S 1186 RS

1 (5) LIMITATIONS.—A deduction made by a State

2 as described in paragraph (4) shall not be made until

3 such time as the Governor has taken appropriate cor4 rective action to ensure full compliance within such

5 local area with regard to appropriate expenditures of

6 funds under this title.

7 (e) REPAYMENT OF AMOUNTS.—

8 (1) IN GENERAL.—Each recipient of funds under

9 this title shall be liable to repay the amounts de10 scribed in subsection (d)(1), from funds other than

11 funds received under this title, upon a determination

12 by the Secretary that the misexpenditure of funds was

13 due to willful disregard of the requirements of this

14 title, gross negligence, failure to observe accepted

15 standards of administration, or a pattern of

16 misexpenditure as described in paragraphs (2) and

17 (3) of subsection (d). No such determination shall be

18 made under this subsection or subsection (d) until no19 tice and opportunity for a fair hearing has been given

20 to the recipient.

21 (2) FACTORS IN IMPOSING SANCTIONS.—In deter22 mining whether to impose any sanction authorized by

23 this section against a recipient for violations by a

24 subgrantee or contractor of such recipient under this

25 title (including the regulations issued under this
734

•S 1186 RS

1 title), the Secretary shall first determine whether such

2 recipient has adequately demonstrated that the recipi3 ent has—

4 (A) established and adhered to an appro5 priate system for the award and monitoring of

6 grants and contracts with subgrantees and con7 tractors that contains acceptable standards for

8 ensuring accountability;

9 (B) entered into a written grant agreement

10 or contract with such subgrantee or contractor

11 that established clear goals and obligations in

12 unambiguous terms;

13 (C) acted with due diligence to monitor the

14 implementation of the grant agreement or con15 tract, including the carrying out of the appro16 priate monitoring activities (including audits)

17 at reasonable intervals; and

18 (D) taken prompt and appropriate correc19 tive action upon becoming aware of any evidence

20 of a violation of this title, including regulations

21 issued under this title, by such subgrantee or

22 contractor.

23 (3) WAIVER.—If the Secretary determines that

24 the recipient has demonstrated substantial compliance

25 with the requirements of paragraph (2), the Secretary
735

•S 1186 RS

1 may waive the imposition of sanctions authorized by

2 this section upon such recipient. The Secretary is au3 thorized to impose any sanction consistent with the

4 provisions of this title and any applicable Federal or

5 State law directly against any subgrantee or contrac6 tor for violation of this title, including regulations is7 sued under this title.

8 (f) IMMEDIATE TERMINATION OR SUSPENSION OF AS9 SISTANCE IN EMERGENCY SITUATIONS.—In emergency situ10 ations, if the Secretary determines it is necessary to protect

11 the integrity of the funds or ensure the proper operation

12 of the program or activity involved, the Secretary may im13 mediately terminate or suspend financial assistance, in

14 whole or in part, to the recipient if the recipient is given

15 prompt notice and the opportunity for a subsequent hearing

16 within 30 days after such termination or suspension. The

17 Secretary shall not delegate any of the functions or author18 ity specified in this subsection, other than to an officer

19 whose appointment is required to be made by and with the

20 advice and consent of the Senate.

21 (g) DISCRIMINATION AGAINST PARTICIPANTS.—If the

22 Secretary determines that any recipient of funds under this

23 title has discharged or in any other manner discriminated

24 in violation of section 378 against, a participant or any

25 other individual in connection with the administration of
736

•S 1186 RS

1 the program or activity involved, or any individual because

2 such individual has filed any complaint or instituted or

3 caused to be instituted any proceeding under or related to

4 this title, or has testified or is about to testify in any such

5 proceeding or investigation under or related to this title,

6 or otherwise unlawfully denied to any individual a benefit

7 to which that individual is entitled under the provisions

8 of this title, including regulations issued under this title,

9 the Secretary shall, within 30 days after the date of the

10 determination, take such action or order such corrective

11 measures, as may be necessary, with respect to the recipient

12 or the aggrieved individual.

13 (h) REMEDIES.—The remedies described in this section

14 shall not be construed to be the exclusive remedies available

15 for violations described in this section.

16 SEC. 375. REPORTS; RECORDKEEPING; INVESTIGATIONS.

17 (a) REPORTS.—

18 (1) IN GENERAL.—Recipients of funds under this

19 title shall keep records that are sufficient to permit

20 the preparation of reports required by this title and

21 to permit the tracing of funds to a level of expendi22 ture adequate to ensure that the funds have not been

23 spent unlawfully.

24 (2) SUBMISSION TO THE SECRETARY.—Every

25 such recipient shall maintain such records and sub-
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•S 1186 RS

1 mit such reports, in such form and containing such

2 information, as the Secretary may require regarding

3 the performance of programs and activities carried

4 out under this title. Such records and reports shall be

5 submitted to the Secretary but shall not be required

6 to be submitted more than once each quarter unless

7 specifically requested by Congress or a committee of

8 Congress.

9 (3) MAINTENANCE OF STANDARDIZED

10 RECORDS.—In order to allow for the preparation of

11 the reports required under subsection (c), such recipi12 ents shall maintain standardized records for all indi13 vidual participants and provide to the Secretary a

14 sufficient number of such records to provide for an

15 adequate analysis of the records.

16 (4) AVAILABILITY TO THE PUBLIC.—

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

18 subparagraph (B), records maintained by such

19 recipients pursuant to this subsection shall be

20 made available to the public upon request.

21 (B) EXCEPTION.—Subparagraph (A) shall

22 not apply to—

23 (i) information, the disclosure of which

24 would constitute a clearly unwarranted in25 vasion of personal privacy; and
738

•S 1186 RS

1 (ii) trade secrets, or commercial or fi2 nancial information, that is obtained from

3 a person and privileged or confidential.

4 (C) FEES TO RECOVER COSTS.—Such re5 cipients may charge fees sufficient to recover

6 costs applicable to the processing of requests for

7 records under subparagraph (A).

8 (b) INVESTIGATIONS OF USE OF FUNDS.—

9 (1) IN GENERAL.—

10 (A) SECRETARY.—In order to evaluate com11 pliance with the provisions of this title, the Sec12 retary shall conduct, in several States, in each

13 fiscal year, investigations of the use of funds re14 ceived by recipients under this title.

15 (B) COMPTROLLER GENERAL OF THE UNIT16 ED STATES.—In order to ensure compliance with

17 the provisions of this title, the Comptroller Gen18 eral of the United States may conduct investiga19 tions of the use of funds received under this title

20 by any recipient.

21 (2) PROHIBITION.—In conducting any investiga22 tion under this title, the Secretary or the Comptroller

23 General of the United States may not request the

24 compilation of any information that the recipient is
739

•S 1186 RS

1 not otherwise required to compile and that is not

2 readily available to such recipient.

3 (3) AUDITS.—

4 (A) IN GENERAL.—In carrying out any

5 audit under this title (other than any initial

6 audit survey or any audit investigating possible

7 criminal or fraudulent conduct), either directly

8 or through grant or contract, the Secretary, the

9 Inspector General of the Department of Labor, or

10 the Comptroller General of the United States

11 shall furnish to the State, recipient, or other en12 tity to be audited, advance notification of the

13 overall objectives and purposes of the audit, and

14 any extensive recordkeeping or data requirements

15 to be met, not later than 14 days (or as soon as

16 practicable), prior to the commencement of the

17 audit.

18 (B) NOTIFICATION REQUIREMENT.—If the

19 scope, objectives, or purposes of the audit change

20 substantially during the course of the audit, the

21 entity being audited shall be notified of the

22 change as soon as practicable.

23 (C) ADDITIONAL REQUIREMENT.—The re24 ports on the results of such audits shall cite the
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•S 1186 RS

1 law, regulation, policy, or other criteria applica2 ble to any finding contained in the reports.

3 (D) RULE OF CONSTRUCTION.—Nothing

4 contained in this title shall be construed so as to

5 be inconsistent with the Inspector General Act of

6 1978 (5 U.S.C. App.) or government auditing

7 standards issued by the Comptroller General of

8 the United States.

9 (c) ACCESSIBILITY OF REPORTS.—Each State, each

10 local partnership, and each recipient (other than a sub11 recipient, subgrantee, or contractor of a recipient) receiving

12 funds under this title shall—

13 (1) make readily accessible such reports concern14 ing its operations and expenditures as shall be pre15 scribed by the Secretary;

16 (2) prescribe and maintain comparable manage17 ment information systems, in accordance with guide18 lines that shall be prescribed by the Secretary, de19 signed to facilitate the uniform compilation, cross

20 tabulation, and analysis of programmatic, partici21 pant, and financial data, on statewide, local area,

22 and other appropriate bases, necessary for reporting,

23 monitoring, and evaluating purposes, including data

24 necessary to comply with section 378; and
741

•S 1186 RS

1 (3) monitor the performance of providers in com2 plying with the terms of grants, contracts, or other

3 agreements made pursuant to this title.

4 (d) INFORMATION TO BE INCLUDED IN REPORTS.—

5 (1) IN GENERAL.—The reports required in sub6 section (c) shall include information regarding pro7 grams and activities carried out under this title per8 taining to—

9 (A) the relevant demographic characteristics

10 (including race, ethnicity, sex, and age) and

11 other related information regarding participants;

12 (B) the programs and activities in which

13 participants are enrolled, and the length of time

14 that participants are engaged in such programs

15 and activities;

16 (C) outcomes of the programs and activities

17 for participants, including the occupations of

18 participants, and placement for participants in

19 nontraditional employment;

20 (D) specified costs of the programs and ac21 tivities; and

22 (E) information necessary to prepare re23 ports to comply with section 378.

24 (2) ADDITIONAL REQUIREMENT.—The Secretary

25 shall ensure that all elements of the information re-
742

•S 1186 RS

1 quired for the reports described in paragraph (1) are

2 defined and reported uniformly.

3 (e) RETENTION OF RECORDS.—The Governor of a

4 State that receives funds under this title shall ensure that

5 requirements are established for retention of all records of

6 the State pertinent to all grants awarded, and contracts

7 and agreements entered into, under this title, including fi8 nancial, statistical, property, and participant records and

9 supporting documentation. For funds allotted to a State

10 under this title for any program year, the State shall retain

11 the records for 2 subsequent program years. The State shall

12 retain records for nonexpendable property that is used to

13 carry out this title for a period of 3 years after final dis14 position of the property.

15 (f) QUARTERLY FINANCIAL REPORTS.—

16 (1) IN GENERAL.—Each local partnership in the

17 State shall submit quarterly financial reports to the

18 Governor with respect to programs and activities car19 ried out under this title. Such reports shall include

20 information identifying all program and activity

21 costs by cost category in accordance with generally

22 accepted accounting principles and by year of the ap23 propriation involved.

24 (2) ADDITIONAL REQUIREMENT.—Each State

25 shall submit to the Secretary, on a quarterly basis, a
743

•S 1186 RS

1 summary of the reports submitted to the Governor

2 pursuant to paragraph (1).

3 (g) MAINTENANCE OF ADDITIONAL RECORDS.—Each

4 State and local partnership shall maintain records with re5 spect to programs and activities carried out under this title

6 that identify—

7 (1) any income or profits earned, including such

8 income or profits earned by subrecipients; and

9 (2) any costs incurred (such as stand-in costs)

10 that are otherwise allowable except for funding limi11 tations.

12 (h) COST CATEGORIES.—In requiring entities to

13 maintain records of costs by category under this title, the

14 Secretary shall require only that the costs be categorized as

15 administrative or programmatic costs.

16 SEC. 376. ADMINISTRATIVE ADJUDICATION.

17 (a) IN GENERAL.—Whenever any applicant for finan18 cial assistance under this title is dissatisfied because the

19 Secretary has made a determination not to award financial

20 assistance in whole or in part to such applicant, the appli21 cant may request a hearing before an administrative law

22 judge of the Department of Labor. A similar hearing may

23 also be requested by any recipient for whom a corrective

24 action has been required or a sanction has been imposed

25 by the Secretary under section 374. Except to the extent
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•S 1186 RS

1 provided for in section 371(c) or 378, all other disputes

2 arising under this title relating to the manner in which

3 the recipient carries out a program or activity under this

4 title shall be adjudicated under grievance procedures estab5 lished by the recipient or under applicable law other than

6 this title.

7 (b) APPEAL.—The decision of the administrative law

8 judge shall constitute final action by the Secretary unless,

9 within 20 days after receipt of the decision of the adminis10 trative law judge, a party dissatisfied with the decision or

11 any part of the decision has filed exceptions with the Sec12 retary specifically identifying the procedure, fact, law, or

13 policy to which exception is taken. Any exception not spe14 cifically urged shall be deemed to have been waived. After

15 the 20-day period the decision of the administrative law

16 judge shall become the final decision of the Secretary unless

17 the Secretary, within 30 days after such filing, has notified

18 the parties that the case involved has been accepted for re19 view.

20 (c) TIME LIMIT.—Any case accepted for review by the

21 Secretary under subsection (b) shall be decided within 180

22 days after such acceptance. If the case is not decided within

23 the 180-day period, the decision of the administrative law

24 judge shall become the final decision of the Secretary at the

25 end of the 180-day period.
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•S 1186 RS

1 (d) ADDITIONAL REQUIREMENT.—The provisions of

2 section 377 shall apply to any final action of the Secretary

3 under this section.

4 SEC. 377. JUDICIAL REVIEW.

5 (a) REVIEW.—

6 (1) PETITION.—With respect to any final order

7 by the Secretary under section 376 by which the Sec8 retary awards, declines to award, or only condi9 tionally awards, financial assistance under this title,

10 or any final order of the Secretary under section 376

11 with respect to a corrective action or sanction im12 posed under section 374, any party to a proceeding

13 which resulted in such final order may obtain review

14 of such final order in the United States Court of Ap15 peals having jurisdiction over the applicant or recipi16 ent of funds involved, by filing a review petition

17 within 30 days after the date of issuance of such final

18 order.

19 (2) ACTION ON PETITION.—The clerk of the court

20 shall transmit a copy of the review petition to the

21 Secretary who shall file the record on which the final

22 order was entered as provided in section 2112 of title

23 28, United States Code. The filing of a review peti24 tion shall not stay the order of the Secretary, unless

25 the court orders a stay. Petitions filed under this sub-
746

•S 1186 RS

1 section shall be heard expeditiously, if possible within

2 10 days after the date of filing of a reply to the peti3 tion.

4 (3) STANDARD AND SCOPE OF REVIEW.—No ob5 jection to the order of the Secretary shall be consid6 ered by the court unless the objection was specifically

7 urged, in a timely manner, before the Secretary. The

8 review shall be limited to questions of law and the

9 findings of fact of the Secretary shall be conclusive if

10 supported by substantial evidence.

11 (b) JUDGMENT.—The court shall have jurisdiction to

12 make and enter a decree affirming, modifying, or setting

13 aside the order of the Secretary in whole or in part. The

14 judgment of the court regarding the order shall be final,

15 subject to certiorari review by the Supreme Court as pro16 vided in section 1254(1) of title 28, United States Code.

17 SEC. 378. NONDISCRIMINATION.

18 (a) PROHIBITED DISCRIMINATION.—

19 (1) PROHIBITION ON DISCRIMINATION IN FED20 ERAL PROGRAMS AND ACTIVITIES.—For the purpose

21 of applying the prohibitions against discrimination

22 on the basis of age under the Age Discrimination Act

23 of 1975 (42 U.S.C. 6101 et seq.), on the basis of dis24 ability under section 504 of the Rehabilitation Act of

25 1973 (29 U.S.C. 794), on the basis of sex under title
747

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1 IX of the Education Amendments of 1972 (20 U.S.C.

2 1681 et seq.), or on the basis of race, color, or na3 tional origin under title VI of the Civil Rights Act

4 of 1964 (42 U.S.C. 2000d et seq.), programs and ac5 tivities funded in whole or in part under this title

6 shall be considered to be programs and activities re7 ceiving Federal financial assistance, and education

8 programs and activities receiving Federal financial

9 assistance.

10 (2) PROHIBITION OF DISCRIMINATION REGARD11 ING PARTICIPATION, BENEFITS, AND EMPLOYMENT.—

12 No individual shall be excluded from participation

13 in, denied the benefits of, subjected to discrimination

14 under, or denied employment in the administration of

15 or in connection with, any such program or activity

16 because of race, color, religion, sex, national origin,

17 age, disability, or political affiliation or belief.

18 (3) PROHIBITION ON ASSISTANCE FOR FACILI19 TIES FOR SECTARIAN INSTRUCTION OR RELIGIOUS

20 WORSHIP.—Participants shall not be employed under

21 this title to carry out the construction, operation, or

22 maintenance of any part of any facility that is used

23 or to be used for sectarian instruction or as a place

24 for religious worship.
748

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1 (4) PROHIBITION ON DISCRIMINATION ON BASIS

2 OF PARTICIPANT STATUS.—No person may discrimi3 nate against an individual who is a participant in

4 a program or activity that receives funds under this

5 title, with respect to the terms and conditions affect6 ing, or rights provided to, the individual, solely be7 cause of the status of the individual as a participant,

8 in carrying out any endeavor that involves—

9 (A) participants in programs and activities

10 that receive funding under this title; and

11 (B) persons who receive no assistance under

12 this title.

13 (5) PROHIBITION ON DISCRIMINATION AGAINST

14 CERTAIN NONCITIZENS.—Participation in programs

15 and activities or receiving funds under this title shall

16 be available to citizens and nationals of the United

17 States, lawfully admitted permanent resident aliens,

18 refugees, asylees, and parolees, other aliens lawfully

19 present in the United States, and other individuals

20 authorized by the Attorney General to work in the

21 United States.

22 (b) ACTION OF SECRETARY.—Whenever the Secretary

23 finds that a State or other recipient of funds under this

24 title has failed to comply with a provision of law referred

25 to in subsection (a)(1), or with paragraph (2), (3), (4), or
749

•S 1186 RS

1 (5) of subsection (a), including an applicable regulation

2 prescribed to carry out such provision or paragraph, the

3 Secretary shall notify such State or recipient and shall re4 quest that the State or recipient comply. If within a reason5 able period of time, not to exceed 60 days, the State or recip6 ient fails or refuses to comply, the Secretary may—

7 (1) refer the matter to the Attorney General with

8 a recommendation that an appropriate civil action be

9 instituted;

10 (2) exercise the powers and functions provided to

11 the head of a Federal department or agency under the

12 Age Discrimination Act of 1975, title V of the Reha13 bilitation Act of 1973 (29 U.S.C. 791 et seq.), title IX

14 of the Education Amendments of 1972, or title VI of

15 the Civil Rights Act of 1964, as may be applicable;

16 or

17 (3) take such other action as may be provided by

18 law.

19 (c) ACTION OF ATTORNEY GENERAL.—When a matter

20 is referred to the Attorney General pursuant to subsection

21 (b)(1), or whenever the Attorney General has reason to be22 lieve that a State or other recipient of funds under this title

23 is engaged in a pattern or practice of discrimination in

24 violation of a provision of law referred to in subsection

25 (a)(1) or in violation of paragraph (2), (3), (4), or (5) of
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•S 1186 RS

1 subsection (a), the Attorney General may bring a civil ac2 tion in any appropriate district court of the United States

3 for such relief as may be appropriate, including injunctive

4 relief.

5 (d) JOB CORPS MEMBERS.—For purposes of this sec6 tion, Job Corps members shall be considered as the ultimate

7 beneficiaries of an education program or activity receiving

8 Federal financial assistance.

9 SEC. 379. ADMINISTRATIVE PROVISIONS.

10 (a) IN GENERAL.—The Secretary may, in accordance

11 with chapter 5 of title 5, United States Code, prescribe rules

12 and regulations to carry out this title to the extent necessary

13 to implement, administer, and ensure compliance with the

14 requirements of this title. Such rules and regulations may

15 include provisions making adjustments authorized by sec16 tion 6504 of title 31, United States Code. All such rules

17 and regulations shall be published in the Federal Register

18 at least 30 days prior to their effective dates. Copies of each

19 such rule or regulation shall be transmitted to the appro20 priate committees of Congress on the date of such publica21 tion and shall contain, with respect to each material provi22 sion of such rule or regulation, a citation to the particular

23 substantive section of law that is the basis for the provision.

24 (b) ACQUISITION OF CERTAIN PROPERTY AND SERV25 ICES.—The Secretary is authorized, in carrying out this
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•S 1186 RS

1 title, to accept, purchase, or lease in the name of the Depart2 ment of Labor, and employ or dispose of in furtherance of

3 the purposes of this title, any money or property, real, per4 sonal, or mixed, tangible or intangible, received by gift, de5 vise, bequest, or otherwise, and to accept voluntary and un6 compensated services notwithstanding the provisions of sec7 tion 1342 of title 31, United States Code.

8 (c) AUTHORITY TO ENTER INTO CERTAIN AGREE9 MENTS AND TO MAKE CERTAIN EXPENDITURES.—The Sec10 retary may make such grants, enter into such contracts or

11 agreements, establish such procedures, and make such pay12 ments, in installments and in advance or by way of reim13 bursement, or otherwise allocate or expend such funds under

14 this title, as may be necessary to carry out this title, includ15 ing making expenditures for construction, repairs, and cap16 ital improvements, and including making necessary adjust17 ments in payments on account of over-payments or under18 payments.

19 (d) ANNUAL REPORT.—The Secretary shall prepare

20 and submit to Congress an annual report regarding the pro21 grams and activities carried out under this title. The Sec22 retary shall include in such report—

23 (1) a summary of the achievements, failures, and

24 problems of the programs and activities in meeting

25 the objectives of this title;
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1 (2) a summary of major findings from research,

2 evaluations, pilot projects, and experiments conducted

3 under this title in the fiscal year prior to the submis4 sion of the report;

5 (3) recommendations for modifications in the

6 programs and activities based on analysis of such

7 findings; and

8 (4) such other recommendations for legislative or

9 administrative action as the Secretary determines to

10 be appropriate.

11 (e) UTILIZATION OF SERVICES AND FACILITIES.—The

12 Secretary is authorized, in carrying out this title, under

13 the same procedures as are applicable under subsection (c)

14 or to the extent permitted by law other than this title, to

15 accept and use the services and facilities of departments,

16 agencies, and establishments of the United States. The Sec17 retary is also authorized, in carrying out this title, to ac18 cept and use the services and facilities of the agencies of

19 any State or political subdivision of a State, with the con20 sent of the State or political subdivision.

21 (f) OBLIGATIONAL AUTHORITY.—Notwithstanding any

22 other provision of this title, the Secretary shall have no au23 thority to enter into contracts, grant agreements, or other

24 financial assistance agreements under this title except to
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1 such extent and in such amounts as are provided in ad2 vance in appropriations Acts.

3 (g) PROGRAM YEAR.—

4 (1) IN GENERAL.—Appropriations for any fiscal

5 year for programs and activities carried out under

6 this title shall be available for obligation only on the

7 basis of a program year. The program year shall

8 begin on July 1 in the fiscal year for which the ap9 propriation is made.

10 (2) AVAILABILITY.—Funds obligated for any pro11 gram year for a program or activity carried out

12 under this title may be expended by each State receiv13 ing such funds during that program year and the 2

14 succeeding program years. Funds received by local

15 areas from States under this title during a program

16 year may be expended during that program year and

17 the succeeding program year. No amount of the funds

18 described in this paragraph shall be deobligated on

19 account of a rate of expenditure that is consistent

20 with a State plan, an operating plan described in sec21 tion 341, or a plan, grant agreement, contract, appli22 cation, or other agreement described in subtitle C, as

23 appropriate.

24 (h) ENFORCEMENT OF MILITARY SELECTIVE SERVICE

25 ACT.—The Secretary shall ensure that each individual par-
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1 ticipating in any program or activity established under this

2 title, or receiving any assistance or benefit under this title,

3 has not violated section 3 of the Military Selective Service

4 Act (50 U.S.C. App. 453) by not presenting and submitting

5 to registration as required pursuant to such section. The

6 Director of the Selective Service System shall cooperate with

7 the Secretary to enable the Secretary to carry out this sub8 section.

9 (i) WAIVERS.—

10 (1) SPECIAL RULE.—With respect to a State that

11 has been granted a waiver under the provisions relat12 ing to training and employment services of the De13 partment of Labor in title I of the Departments of

14 Labor, Health and Human Services, and Education,

15 and Related Agencies Appropriations Act, 1997 (Pub16 lic Law 104–208; 110 Stat. 3009–234), the authority

17 provided under such waiver shall continue in effect

18 and apply, and include a waiver of the related provi19 sions of subtitle A and this subtitle, for the duration

20 of the initial waiver.

21 (2) GENERAL AUTHORITY.—Notwithstanding

22 any other provision of law, the Secretary may waive

23 for a State, or a local area in a State, pursuant to

24 a request submitted by the Governor of the State (in
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1 consultation with appropriate local elected officials)

2 that meets the requirements of paragraph (3)—

3 (A) any of the statutory or regulatory re4 quirements of subtitle A or this subtitle (except

5 for requirements relating to wage and labor

6 standards, worker rights, participation and pro7 tection of participants, grievance procedures and

8 judicial review, nondiscrimination, allocation of

9 funds to local areas, eligibility of providers or

10 participants, and the establishment and func11 tions of local areas); and

12 (B) any of the statutory or regulatory re13 quirements of sections 8 through 10 of the Wag14 ner-Peyser Act (29 U.S.C. 49g through 49i) (ex15 cluding requirements relating to the provision of

16 services to unemployment insurance claimants

17 (including veterans) but including reporting re18 quirements relating to such provision of services,

19 and excluding requirements relating to universal

20 access to basic labor exchange services without

21 cost to jobseekers).

22 (3) REQUESTS.—A Governor requesting a waiver

23 under paragraph (2) shall submit a plan to the Sec24 retary to improve the statewide workforce investment

25 system that—
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1 (A) identifies the statutory or regulatory re2 quirements that are requested to be waived and

3 the goals that the State or local area in the

4 State, as appropriate, intends to achieve as a re5 sult of the waiver;

6 (B) describes the actions that the State or

7 local area, as appropriate, has undertaken to re8 move State or local statutory or regulatory bar9 riers;

10 (C) describes the goals of the waiver and the

11 expected programmatic outcomes if the request is

12 granted;

13 (D) describes the individuals impacted by

14 the waiver; and

15 (E) describes the process used to monitor the

16 progress in implementing such a waiver, and the

17 process by which notice and an opportunity to

18 comment on such request has been provided to

19 the organizations identified in section 308(b)(2).

20 (4) CONDITIONS.—Not later than 90 days after

21 the date of the original submission of a request for a

22 waiver under paragraph (2), the Secretary shall pro23 vide a waiver under this subsection if and only to the

24 extent that—
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1 (A) the Secretary determines that the re2 quirements requested to be waived impede the

3 ability of the State or local area, as appropriate,

4 to implement the plan described in paragraph

5 (3); and

6 (B) the State has executed a memorandum

7 of understanding with the Secretary requiring

8 such State to meet, or ensure that the local area

9 meets, agreed-upon outcomes and to implement

10 other appropriate measures to ensure account11 ability.

12 SEC. 380. STATE LEGISLATIVE AUTHORITY.

13 (a) AUTHORITY OF STATE LEGISLATURE.—Nothing in

14 this title shall be interpreted to preclude the enactment of

15 State legislation providing for the implementation, consist16 ent with the provisions of this title, of the activities assisted

17 under this title. Any funds received by a State under this

18 title shall be subject to appropriation by the State legisla19 ture, consistent with the terms and conditions required

20 under this title.

21 (b) INTERSTATE COMPACTS AND COOPERATIVE

22 AGREEMENTS.—In the event that compliance with provi23 sions of this title would be enhanced by compacts and coop24 erative agreements between States, the consent of Congress

25 is given to States to enter into such compacts and agree-
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1 ments to facilitate such compliance, subject to the approval

2 of the Secretary.

3 Subtitle E—Repeals and

4 Conforming Amendments

5 SEC. 391. REPEALS.

6 (a) GENERAL IMMEDIATE REPEALS.—The following

7 provisions are repealed:

8 (1) Section 204 of the Immigration Reform and

9 Control Act of 1986 (8 U.S.C. 1255a note).

10 (2) Title II of Public Law 95–250 (92 Stat.

11 172).

12 (3) The Displaced Homemakers Self-Sufficiency

13 Assistance Act (29 U.S.C. 2301 et seq.).

14 (4) Section 211 of the Appalachian Regional De15 velopment Act of 1965 (40 U.S.C. App. 211).

16 (5) Subtitle C of title VII of the Stewart B.

17 McKinney Homeless Assistance Act (42 U.S.C. 11441

18 et seq.), except section 738 of such title (42 U.S.C.

19 11448).

20 (6) Subchapter I of chapter 421 of title 49, Unit21 ed States Code.

22 (b) SUBSEQUENT REPEALS.—The following provisions

23 are repealed:

24 (1) The Job Training Partnership Act (29

25 U.S.C. 1501 et seq.).
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1 (2) Title VII of the Stewart B. McKinney Home2 less Assistance Act (42 U.S.C. 11421 et seq.), except

3 subtitle B and section 738 of such title (42 U.S.C.

4 11431 et seq. and 11448).

5 SEC. 392. CONFORMING AMENDMENTS.

6 (a) PREPARATION.—After consultation with the appro7 priate committees of Congress and the Director of the Office

8 of Management and Budget, the Secretary shall prepare rec9 ommended legislation containing technical and conforming

10 amendments to reflect the changes made by this subtitle.

11 (b) SUBMISSION TO CONGRESS.—Not later than 6

12 months after the date of enactment of this Act, the Secretary

13 shall submit to Congress the recommended legislation re14 ferred to under paragraph (1).

15 SEC. 393. EFFECTIVE DATES.

16 (a) IMMEDIATE REPEALS.—The repeals made by sec17 tion 391(a) shall take effect on the date of enactment of this

18 Act.

19 (b) SUBSEQUENT REPEALS.—The repeals made by sec20 tion 391(b) shall take effect on July 1, 1999.
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1 TITLE IV—WORKFORCE INVEST2 MENT-RELATED ACTIVITIES

3 Subtitle A—Wagner-Peyser Act

4 SEC. 401. DEFINITIONS.

5 Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a)

6 is amended—

7 (1) in paragraph (1)—

8 (A) by striking ‘‘or officials’’; and

9 (B) by striking ‘‘Job Training Partnership

10 Act’’ and inserting ‘‘Workforce Investment Part11 nership Act of 1997’’;

12 (2) by striking paragraphs (2) and (4);

13 (3) by redesignating paragraphs (3) and (5) as

14 paragraphs (5) and (6), respectively;

15 (4) by inserting after paragraph (1) the follow16 ing:

17 ‘‘(2) the term ‘local workforce investment area’

18 means a local workforce investment area designated

19 under section 307 of the Workforce Investment Part20 nership Act of 1997;

21 ‘‘(3) the term ‘local workforce investment part22 nership’ means a local workforce investment partner23 ship established under section 308 of the Workforce

24 Investment Partnership Act of 1997;
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1 ‘‘(4) the term ‘one-stop customer service system’

2 means a one-stop customer service system established

3 under section 315(b) of the Workforce Investment

4 Partnership Act of 1997;’’; and

5 (5) in paragraph (5) (as redesignated in para6 graph (3)), by striking the semicolon and inserting ‘‘;

7 and’’.

8 SEC. 402. FUNCTIONS.

9 (a) IN GENERAL.—Section 3(a) of the Wagner-Peyser

10 Act (29 U.S.C. 49b(a)) is amended to read as follows:

11 ‘‘(a) The Secretary shall—

12 ‘‘(1) assist in the coordination and development

13 of a nationwide system of public labor exchange serv14 ices, provided as part of the one-stop customer service

15 systems of the States;

16 ‘‘(2) assist in the development of continuous im17 provement models for such nationwide system that en18 sure private sector satisfaction with the system and

19 meet the demands of jobseekers relating to the system;

20 and

21 ‘‘(3) ensure, for individuals otherwise eligible to

22 receive unemployment compensation, the provision of

23 reemployment services and other activities in which

24 the individuals are required to participate to receive

25 the compensation.’’.
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1 (b) CONFORMING AMENDMENTS.—Section 508(b)(1) of

2 the Unemployment Compensation Amendments of 1976 (42

3 U.S.C. 603a(b)(1)) is amended—

4 (1) by striking ‘‘the third sentence of section

5 3(a)’’ and inserting ‘‘section 3(b)’’; and

6 (2) by striking ‘‘49b(a)’’ and inserting ‘‘49b(b))’’.

7 SEC. 403. DESIGNATION OF STATE AGENCIES.

8 Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c)

9 is amended—

10 (1) by striking ‘‘, through its legislature,’’ and

11 inserting ‘‘, pursuant to State statute,’’;

12 (2) by inserting after ‘‘the provisions of this Act

13 and’’ the following: ‘‘, in accordance with such State

14 statute, the Governor shall’’; and

15 (3) by striking ‘‘United States Employment

16 Service’’ and inserting ‘‘Secretary’’.

17 SEC. 404. APPROPRIATIONS.

18 Section 5(c) of the Wagner-Peyser Act (29 U.S.C.

19 49d(c)) is amended by striking paragraph (3).

20 SEC. 405. DISPOSITION OF ALLOTTED FUNDS.

21 Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f)

22 is amended—

23 (1) in subsection (b)(2), by striking ‘‘private in24 dustry council’’ and inserting ‘‘local workforce invest25 ment partnership’’;
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1 (2) in subsection (c)(2), by striking ‘‘any pro2 gram under’’ and all that follows and inserting ‘‘any

3 workforce investment activity carried out under the

4 Workforce Investment Partnership Act of 1997.’’;

5 (3) in subsection (d)—

6 (A) by striking ‘‘United States Employment

7 Service’’ and inserting ‘‘Secretary’’; and

8 (B) by striking ‘‘Job Training Partnership

9 Act’’ and inserting ‘‘Workforce Investment Part10 nership Act of 1997’’; and

11 (4) by adding at the end the following:

12 ‘‘(e) All job search, placement, recruitment, labor mar13 ket information, and other labor exchange services author14 ized under subsection (a) shall be provided as part of the

15 one-stop customer service system established by the State.’’.

16 SEC. 406. STATE PLANS.

17 Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g)

18 is amended—

19 (1) in subsection (a) to read as follows:

20 ‘‘(a) Any State desiring to receive assistance under

21 this Act shall submit to the Secretary, as part of the State

22 plan submitted under section 304 of the Workforce Invest23 ment Partnership Act of 1997, detailed plans for carrying

24 out the provisions of this Act within such State.’’;

25 (2) by striking subsections (b), (c), and (e);
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1 (3) by redesignating subsection (d) as subsection

2 (b); and

3 (4) by adding at the end the following:

4 ‘‘(c) The part of the State plan described in subsection

5 (a) shall include the information described in paragraphs

6 (8) and (16) of section 304(b) of the Workforce Investment

7 Partnership Act of 1997.’’.

8 SEC. 407. REPEAL OF FEDERAL ADVISORY COUNCIL.

9 Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j)

10 is hereby repealed.

11 SEC. 408. REGULATIONS.

12 Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k)

13 is amended by striking ‘‘The Director, with the approval

14 of the Secretary of Labor,’’ and inserting ‘‘The Secretary’’.

15 SEC. 409. LABOR MARKET INFORMATION.

16 The Wagner-Peyser Act is amended—

17 (1) by redesignating section 15 (29 U.S.C. 49

18 note) as section 16; and

19 (2) by inserting after section 14 (29 U.S.C. 49l–

20 1) the following:

21 ‘‘SEC. 15. LABOR MARKET INFORMATION.

22 ‘‘(a) SYSTEM CONTENT.—

23 ‘‘(1) IN GENERAL.—The Secretary, in accordance

24 with the provisions of this section, shall oversee the

25 development, maintenance, and continuous improve-
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1 ment of a system of labor market information that in2 cludes—

3 ‘‘(A) statistical data from cooperative sta4 tistical survey and projection programs and data

5 from administrative reporting systems that,

6 taken together, enumerate, estimate, and project

7 the employment opportunities at the national,

8 State, and local levels in a timely manner, in9 cluding data on—

10 ‘‘(i) employment and unemployment

11 status of the national, State, and local pop12 ulations, as such data are developed by the

13 Bureau of Labor Statistics and other

14 sources;

15 ‘‘(ii) industrial distribution of occupa16 tions, as well as current and projected em17 ployment opportunities and skill trends by

18 occupation and industry, with particular

19 attention paid to State and local employ20 ment opportunities;

21 ‘‘(iii) the incidence of, industrial and

22 geographical location of, and number of

23 workers displaced by, permanent layoffs

24 and plant closings; and
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1 ‘‘(iv) employee information main2 tained in a longitudinal manner and col3 lected (as of the date of enactment of the

4 Workforce Investment Partnership Act of

5 1997) by States;

6 ‘‘(B) State and local employment informa7 tion, and other appropriate statistical data re8 lated to labor market dynamics (compiled for

9 States and localities with technical assistance

10 provided by the Secretary), which shall—

11 ‘‘(i) be current and comprehensive, as

12 of the date used;

13 ‘‘(ii) assist individuals to make in14 formed choices relating to employment and

15 training; and

16 ‘‘(iii) assist employers to locate, iden17 tify skill traits of, and train individuals

18 who are seeking employment and training;

19 ‘‘(C) technical standards (which the Sec20 retary shall make publicly available) for data

21 and information described in subparagraphs (A)

22 and (B) that, at a minimum, meet the criteria

23 of chapter 35 of title 44, United States Code;

24 ‘‘(D) procedures to ensure compatibility and

25 additivity of the data and information described
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1 in subparagraphs (A) and (B) from national,

2 State, and local levels;

3 ‘‘(E) procedures to support standardization

4 and aggregation of data from administrative re5 porting systems described in subparagraph (A)

6 of employment-related programs;

7 ‘‘(F) analysis of data and information de8 scribed in subparagraphs (A) and (B) for uses

9 such as State and local policymaking;

10 ‘‘(G) wide dissemination of such data, in11 formation, and analysis, training for users of the

12 data, information, and analysis, and voluntary

13 technical standards for dissemination mecha14 nisms; and

15 ‘‘(H) programs of—

16 ‘‘(i) research and demonstration; and

17 ‘‘(ii) technical assistance for States

18 and localities.

19 ‘‘(2) INFORMATION TO BE CONFIDENTIAL.—

20 ‘‘(A) IN GENERAL.—No officer or employee

21 of the Federal Government or agent of the Fed22 eral Government may—

23 ‘‘(i) use any submission that is fur24 nished for exclusively statistical purposes

25 under the provisions of this section for any
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1 purpose other than the statistical purposes

2 for which the submission is furnished;

3 ‘‘(ii) make any publication or media

4 transmittal of the data contained in the

5 submission described in clause (i) that per6 mits information concerning individual

7 subjects to be reasonably inferred by either

8 direct or indirect means; or

9 ‘‘(iii) permit anyone other than a

10 sworn officer, employee, or agent of any

11 Federal department or agency, or a contrac12 tor (including an employee of a contractor)

13 of such department or agency, to examine

14 an individual submission described in

15 clause (i);

16 without the consent of the individual, agency, or

17 other person who is the subject of the submission

18 or provides that submission.

19 ‘‘(B) IMMUNITY FROM LEGAL PROCESS.—

20 Any submission (including any data derived

21 from the submission) that is collected and re22 tained by a Federal department or agency, or an

23 officer, employee, agent, or contractor of such a

24 department or agency, for exclusively statistical

25 purposes under this section shall be immune
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1 from the legal process and shall not, without the

2 consent of the individual, agency, or other person

3 who is the subject of the submission or provides

4 that submission, be admitted as evidence or used

5 for any purpose in any action, suit, or other ju6 dicial or administrative proceeding.

7 ‘‘(C) CONSTRUCTION.—Nothing in this sec8 tion shall be construed to provide immunity

9 from the legal process for such submission (in10 cluding any data derived from the submission) if

11 the submission is in the possession of any person,

12 agency, or entity other than the Federal Govern13 ment or an officer, employee, agent, or contractor

14 of the Federal Government, or if the submission

15 is independently collected, retained, or produced

16 for purposes other than the purposes of this Act.

17 ‘‘(b) SYSTEM RESPONSIBILITIES.—

18 ‘‘(1) IN GENERAL.—The labor market informa19 tion system shall be planned, administered, overseen,

20 and evaluated through a cooperative governance struc21 ture involving the Federal Government and States.

22 ‘‘(2) DUTIES.—The Secretary, with respect to

23 data collection, analysis, and dissemination of labor

24 market information for the system, shall carry out the

25 following duties:
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1 ‘‘(A) Assign responsibilities within the De2 partment of Labor for elements of the system de3 scribed in subsection (a) to ensure that all statis4 tical and administrative data collected is con5 sistent with appropriate Bureau of Labor Statis6 tics 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 sub19 section (a), including the development of consist20 ent definitions for use by the States in collecting

21 the data and information described in subpara22 graphs (A) and (B), of subsection (a)(1) and the

23 development of the annual plan under subsection

24 (c).
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1 ‘‘(E) Establish procedures for the system to

2 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 and

13 local levels.

14 ‘‘(c) ANNUAL PLAN.—The Secretary, with the assist15 ance of the States and the Bureau of Labor Statistics, and

16 with the assistance of other appropriate Federal agencies,

17 shall prepare an annual plan which shall be the mechanism

18 for achieving cooperative management of the nationwide

19 labor market information system described in subsection (a)

20 and the statewide labor market information systems that

21 comprise the nationwide system. The plan shall—

22 ‘‘(1)(A) describe the elements of the system de23 scribed in subsection (a), including standards, defini24 tions, formats, collection methodologies, and other nec25 essary system elements, for use in collecting data and
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1 information described in subparagraphs (A) and (B)

2 of subsection (a)(1); and

3 ‘‘(B) include assurances that—

4 ‘‘(i) the data will be timely and detailed;

5 ‘‘(ii) administrative records will be stand6 ardized to facilitate the aggregation of the data

7 from local areas to State and national levels and

8 to support the creation of new statistical series

9 from program records; and

10 ‘‘(iii) paperwork and reporting require11 ments for employers and individuals will be re12 duced;

13 ‘‘(2) include a report on the results of an annual

14 consumer satisfaction review concerning the perform15 ance of the system, including the performance of the

16 system in addressing the needs of Congress, States, lo17 calities, employers, jobseekers, and other consumers;

18 ‘‘(3) evaluate the performance of the system and

19 recommend needed improvements, taking into consid20 eration the results of the consumer satisfaction review,

21 with particular attention paid to the improvements

22 needed at the State and local levels;

23 ‘‘(4) describe annual priorities, and priorities

24 over 5 years, for the system;
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1 ‘‘(5) describe current (as of the date of the sub2 mission of the plan) spending and spending needs to

3 carry out activities under this section, including the

4 costs to States and localities of meeting the require5 ments of subsection (e)(2); and

6 ‘‘(6) describe the involvement of States in the de7 velopment of the plan, through formal consultations

8 conducted by the Secretary in cooperation with rep9 resentatives of the Governors of every State, and with

10 representatives of local partnerships, pursuant to a

11 process established by the Secretary in cooperation

12 with the States.

13 ‘‘(d) COORDINATION WITH THE STATES.—The Sec14 retary and the Bureau of Labor Statistics, in cooperation

15 with the States, shall—

16 ‘‘(1) develop the annual plan described in sub17 section (c) by holding formal consultations, at least

18 once each quarter, on the products and administra19 tion of the nationwide labor market information sys20 tem; and

21 ‘‘(2) hold the consultations with representatives

22 from each of the 10 Federal regions of the Employ23 ment and Training Administration, elected (pursuant

24 to a process established by the Secretary) by and from

25 the State labor market information directors affiliated
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1 with the State agencies that perform the duties de2 scribed in subsection (e)(2).

3 ‘‘(e) STATE RESPONSIBILITIES.—

4 ‘‘(1) DESIGNATION OF STATE AGENCY.—In order

5 to receive Federal financial assistance under this sec6 tion, the Governor of a State—

7 ‘‘(A) shall designate a single State agency

8 to be responsible for the management of the por9 tions of the system described in subsection (a)

10 that comprise a statewide labor market informa11 tion system; and

12 ‘‘(B) shall establish a process for the over13 sight of such system.

14 ‘‘(2) DUTIES.—In order to receive Federal finan15 cial assistance under this section, the State agency

16 shall—

17 ‘‘(A) consult with State and local employ18 ers, participants, and local partnerships about

19 the labor market relevance of the data to be col20 lected and disseminated through the statewide

21 labor market information system;

22 ‘‘(B) consult with State educational agen23 cies and local educational agencies concerning

24 providing labor market information in order to

25 meet the needs of secondary school and post-
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1 secondary school students who seek such informa2 tion;

3 ‘‘(C) collect and disseminate for the system,

4 on behalf of the State and localities in the State,

5 the information and data described in subpara6 graphs (A) and (B) of subsection (a)(1);

7 ‘‘(D) maintain and continuously improve

8 the statewide labor market information system

9 in accordance with this section;

10 ‘‘(E) perform contract and grant respon11 sibilities for data collection, analysis, and dis12 semination for such system;

13 ‘‘(F) conduct such other data collection,

14 analysis, and dissemination activities as will en15 sure an effective statewide labor market informa16 tion system;

17 ‘‘(G) actively seek the participation of other

18 State and local agencies in data collection, anal19 ysis, and dissemination activities in order to en20 sure complementarity, compatibility, and useful21 ness of data;

22 ‘‘(H) participate in the development of the

23 annual plan described in subsection (c); and

24 ‘‘(I) utilize the quarterly records described

25 in sections 321(f)(1) and 312 to assist the State
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1 and other States in measuring State progress on

2 State performance measures.

3 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in this

4 section shall be construed as limiting the ability of a

5 State agency to conduct additional data collection,

6 analysis, and dissemination activities with State

7 funds or with Federal funds from sources other than

8 this section.

9 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are

10 authorized to be appropriated to carry out this section such

11 sums as may be necessary for each of fiscal years 1999

12 through 2004.

13 ‘‘(g) DEFINITIONS.—In this section, the terms ‘local

14 area’ and ‘local partnership’ have the meanings given the

15 terms in section 2 of the Workforce Investment Partnership

16 Act of 1997.’’.

17 SEC. 410. TECHNICAL AMENDMENTS.

18 Sections 3(b), 6(b)(1), and 7(d) of the Wagner Peyser

19 Act (29 U.S.C. 49b(b), 49e(b)(1), and 49f(d)) are amended

20 by striking ‘‘Secretary of Labor’’ and inserting ‘‘Secretary’’.

21 Subtitle B—Linkages With Other

22 Programs

23 SEC. 421. TRADE ACT OF 1974.

24 Section 241 of the Trade Act of 1974 (19 U.S.C. 2313)

25 is amended by adding at the end the following:
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1 ‘‘(d) To be eligible to receive funds under this section,

2 a State shall submit to the Secretary an application that

3 includes the description and information described in para4 graphs (8) and (16) of section 304(b) of the Workforce In5 vestment Partnership Act of 1997.’’.

6 SEC. 422. NATIONAL APPRENTICESHIP ACT.

7 The Act of August 16, 1937 (commonly known as the

8 ‘‘National Apprenticeship Act’’; 50 Stat. 664, chapter 663;

9 29 U.S.C. 50 et seq.) is amended by inserting after section

10 3 the following:

11 ‘‘SEC. 3A. COORDINATION AND NONDUPLICATION.

12 ‘‘In carrying out this Act, the Secretary of Labor shall

13 require that an appropriate administrative entity in each

14 State enter into an agreement with the Secretary regarding

15 the implementation of this Act that includes the description

16 and information described in paragraphs (8) and (16) of

17 section 304(b) of the Workforce Investment Partnership Act

18 of 1997.’’.

19 SEC. 423. VETERANS’ EMPLOYMENT PROGRAMS.

20 Chapter 41 of title 38, United States Code, is amended

21 by adding at the end the following:

22 ‘‘§ 4110B. Coordination and nonduplication

23 ‘‘In carrying out this chapter, the Secretary shall re24 quire that an appropriate administrative entity in each

25 State enter into an agreement with the Secretary regarding
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1 the implementation of this Act that includes the description

2 and information described in paragraphs (8) and (16) of

3 section 304(b) of the Workforce Investment Partnership Act

4 of 1997.’’.

5 SEC. 424. OLDER AMERICANS ACT OF 1965.

6 Section 502(b)(1) of the Older Americans Act of 1965

7 (42 U.S.C. 3056(b)(1)) is amended—

8 (1) in subparagraph (O), by striking ‘‘; and’’

9 and inserting a semicolon;

10 (2) in subparagraph (P), by striking the period

11 and inserting ‘‘; and’’; and

12 (3) by adding at the end the following subpara13 graph:

14 ‘‘(Q) will provide to the Secretary the description

15 and information described in paragraphs (8) and

16 (16) of section 304(b) of the Workforce Investment

17 Partnership Act of 1997.’’.

18 Subtitle C—Twenty-First Century

19 Workforce Commission

20 SEC. 431. SHORT TITLE.

21 This subtitle may be cited as the ‘‘Twenty-First Cen22 tury Workforce Commission Act’’.

23 SEC. 432. FINDINGS.

24 Congress finds that—
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1 (1) information technology is one of the fastest

2 growing areas in the United States economy;

3 (2) the United States is a world leader in the in4 formation technology industry;

5 (3) the continued growth and prosperity of the

6 information technology industry is important to the

7 continued prosperity of the United States economy;

8 (4) highly skilled employees are essential for the

9 success of business entities in the information tech10 nology industry and other business entities that use

11 information technology;

12 (5) employees in information technology jobs are

13 highly paid;

14 (6) as of the date of enactment of this Act, these

15 employees are in high demand in all industries and

16 all regions of the United States; and

17 (7) through a concerted effort by business enti18 ties, the Federal Government, the governments of

19 States and political subdivisions of States, and edu20 cational institutions, more individuals will gain the

21 skills necessary to enter into a technology-based job

22 market, ensuring that the United States remains the

23 world leader in the information technology industry.

24 SEC. 433. DEFINITIONS.

25 In this subtitle:
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1 (1) BUSINESS ENTITY.—The term ‘‘business en2 tity’’ means a firm, corporation, association, partner3 ship, consortium, joint venture, or other form of enter4 prise.

5 (2) COMMISSION.—The term ‘‘Commission’’

6 means the Twenty-First Century Workforce Commis7 sion established under section 434.

8 (3) INFORMATION TECHNOLOGY.—The term ‘‘in9 formation technology’’ has the meaning given that

10 term in section 5002 of the Information Technology

11 Management Reform Act of 1996 (110 Stat. 679).

12 (4) STATE.—The term ‘‘State’’ means each of the

13 several States of the United States and the District of

14 Columbia.

15 SEC. 434. ESTABLISHMENT OF TWENTY-FIRST CENTURY

16 WORKFORCE COMMISSION.

17 (a) ESTABLISHMENT.—There is established a commis18 sion to be known as the Twenty-First Century Workforce

19 Commission.

20 (b) MEMBERSHIP.—

21 (1) COMPOSITION.—

22 (A) IN GENERAL.—The Commission shall be

23 composed of 21 members, of which—

24 (i) 7 members shall be appointed by

25 the President;
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1 (ii) 7 members shall be appointed by

2 the Majority Leader of the Senate; and

3 (iii) 7 members shall be appointed by

4 the Speaker of the House of Representatives.

5 (B) GOVERNMENTAL REPRESENTATIVES.—

6 Of the members appointed under this sub7 section—

8 (i) 1 member shall be an officer or em9 ployee of the Department of Labor, who

10 shall be appointed by the President;

11 (ii) 1 member shall be an officer or em12 ployee of the Department of Education, who

13 shall be appointed by the President; and

14 (iii) 2 members shall be representatives

15 of the governments of States and political

16 subdivisions of States, 1 of whom shall be

17 appointed by the Majority Leader of the

18 Senate and 1 of whom shall be appointed by

19 the Speaker of the House of Representatives.

20 (C) EDUCATORS.—Of the members ap21 pointed under this subsection, 6 shall be edu22 cators who are selected from among elementary,

23 secondary, vocational, and postsecondary edu24 cators—
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1 (i) 2 of whom shall be appointed by the

2 President;

3 (ii) 2 of whom shall be appointed by

4 the Majority Leader of the Senate; and

5 (iii) 2 of whom shall be appointed by

6 the Speaker of the House of Representatives.

7 (D) BUSINESS REPRESENTATIVES.—

8 (i) IN GENERAL.—Of the members ap9 pointed under this subsection, at least 4

10 shall be individuals who are employed by

11 non-information technology business enti12 ties.

13 (ii) SIZE.—Members appointed under

14 this subsection in accordance with clause (i)

15 shall, to the extent practicable, include indi16 viduals from business entities of a size that

17 is small or average for a non-information

18 technology business entity.

19 (2) DATE.—The appointments of the members of

20 the Commission shall be made by the later of—

21 (A) October 31, 1998; or

22 (B) the date that is 45 days after the date

23 of enactment of this Act.

24 (c) PERIOD OF APPOINTMENT; VACANCIES.—Members

25 shall be appointed for the life of the Commission. Any va-
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1 cancy in the Commission shall not affect its powers, but

2 shall be filled in the same manner as the original appoint3 ment.

4 (d) INITIAL MEETING.—No later than 30 days after

5 the date on which all members of the Commission have been

6 appointed, the Commission shall hold its first meeting.

7 (e) MEETINGS.—The Commission shall meet at the call

8 of the Chairperson.

9 (f) QUORUM.—A majority of the members of the Com10 mission shall constitute a quorum, but a lesser number of

11 members may hold hearings.

12 (g) CHAIRPERSON AND VICE CHAIRPERSON.—The

13 Commission shall select a chairperson and vice chairperson

14 from among its members.

15 SEC. 435. DUTIES OF THE COMMISSION.

16 (a) STUDY.—

17 (1) IN GENERAL.—The Commission shall conduct

18 a thorough study of all matters relating to the infor19 mation technology workforce in the United States.

20 (2) MATTERS STUDIED.—The matters studied by

21 the Commission shall include an examination of—

22 (A) the skills necessary to enter the informa23 tion technology workforce;

24 (B) ways to expand the number of skilled

25 information technology workers; and
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1 (C) the relative efficacy of programs in the

2 United States and foreign countries to train in3 formation technology workers, with special em4 phasis on programs that provide for secondary

5 education or postsecondary education in a pro6 gram other than a 4-year baccalaureate program

7 (including associate degree programs and grad8 uate degree programs).

9 (3) PUBLIC HEARINGS.—As part of the study

10 conducted under this subsection, the Commission shall

11 hold public hearings in each region of the United

12 States concerning the issues referred to in subpara13 graphs (A) and (B) of paragraph (2).

14 (4) EXISTING INFORMATION.—To the extent

15 practicable, in carrying out the study under this sub16 section, the Commission shall identify and use exist17 ing information related to the issues referred to in

18 subparagraphs (A) and (B) of paragraph (2).

19 (5) CONSULTATION WITH CHIEF INFORMATION

20 OFFICERS COUNCIL.—In carrying out the study under

21 this subsection, the Commission shall consult with the

22 Chief Information Officers Council established under

23 Executive Order No. 13011.

24 (b) REPORT.—Not later than 6 months after the first

25 meeting of the Commission, the Commission shall submit
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1 a report to the President and the Congress that shall con2 tain a detailed statement of the findings and conclusions

3 of the Commission resulting from the study, together with

4 its recommendations for such legislation and administra5 tive actions as the Commission considers to be appropriate.

6 (c) FACILITATION OF EXCHANGE OF INFORMATION.—

7 In carrying out the study under subsection (a), the Commis8 sion shall, to the extent practicable, facilitate the exchange

9 of information concerning the issues that are the subject of

10 the study among—

11 (1) officials of the Federal Government and the

12 governments of States and political subdivisions of

13 States; and

14 (2) educators from Federal, State, and local in15 stitutions of higher education and secondary schools.

16 SEC. 436. POWERS OF THE COMMISSION.

17 (a) HEARINGS.—The Commission may hold such hear18 ings, sit and act at such times and places, take such testi19 mony, and receive such evidence as the Commission consid20 ers advisable to carry out the purposes of this subtitle.

21 (b) INFORMATION FROM FEDERAL AGENCIES.—The

22 Commission may secure directly from any Federal depart23 ment or agency such information as the Commission con24 siders necessary to carry out the provisions of this subtitle.

25 Upon request of the Chairperson of the Commission, the
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1 head of such department or agency shall furnish such infor2 mation to the Commission.

3 (c) POSTAL SERVICES.—The Commission may use the

4 United States mails in the same manner and under the

5 same conditions as other departments and agencies of the

6 Federal Government.

7 (d) GIFTS.—The Commission may accept, use, and

8 dispose of gifts or donations of services or property.

9 SEC. 437. COMMISSION PERSONNEL MATTERS.

10 (a) COMPENSATION OF MEMBERS.—Except as pro11 vided in subsection (b), each member of the Commission who

12 is not an officer or employee of the Federal Government

13 shall serve without compensation. All members of the Com14 mission who are officers or employees of the United States

15 shall serve without compensation in addition to that re16 ceived for their services as officers or employees of the Unit17 ed States.

18 (b) TRAVEL EXPENSES.—The members of the Commis19 sion shall be allowed travel expenses, including per diem

20 in lieu of subsistence, at rates authorized for employees of

21 agencies under subchapter I of chapter 57 of title 5, United

22 States Code, while away from their homes or regular places

23 of business in the performance of services for the Commis24 sion.

25 (c) STAFF.—
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1 (1) IN GENERAL.—The Chairperson of the Com2 mission may, without regard to the civil service laws

3 and regulations, appoint and terminate an executive

4 director and such other additional personnel as may

5 be necessary to enable the Commission to perform its

6 duties. The employment of an executive director shall

7 be subject to confirmation by the Commission.

8 (2) COMPENSATION.—The Chairperson of the

9 Commission may fix the compensation of the execu10 tive director and other personnel without regard to

11 the provisions of chapter 51 and subchapter III of

12 chapter 53 of title 5, United States Code, relating to

13 classification of positions and General Schedule pay

14 rates, except that the rate of pay for the executive di15 rector and other personnel may not exceed the rate

16 payable for level V of the Executive Schedule under

17 section 5316 of such title.

18 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any Fed19 eral Government employee may be detailed to the Commis20 sion without reimbursement, and such detail shall be with21 out interruption or loss of civil service status or privilege.

22 (e) PROCUREMENT OF TEMPORARY AND INTERMIT23 TENT SERVICES.—The Chairperson of the Commission may

24 procure temporary and intermittent services under section

25 3109(b) of title 5, United States Code, at rates for individ-
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1 uals that do not exceed the daily equivalent of the annual

2 rate of basic pay prescribed for level V of the Executive

3 Schedule under section 5316 of such title.

4 SEC. 438. TERMINATION OF THE COMMISSION.

5 The Commission shall terminate on the date that is

6 90 days after the date on which the Commission submits

7 its report under section 435(b).

8 SEC. 439. AUTHORIZATION OF APPROPRIATIONS.

9 (a) IN GENERAL.—There are authorized to be appro10 priated such sums as may be necessary for fiscal year 1999

11 to the Commission to carry out the purposes of this subtitle.

12 (b) AVAILABILITY.—Any sums appropriated under the

13 authorization contained in this section shall remain avail14 able, without fiscal year limitation, until expended.

15 TITLE V—GENERAL PROVISIONS

16 SEC. 501. STATE UNIFIED PLANS.

17 (a) PURPOSE.—The purpose of this section is to permit

18 and encourage the submission of State unified plans, to as19 sure coordination of and to avoid duplication between the

20 activities carried out through the one-stop customer service

21 systems.

22 (b) DEFINITIONS.—In this section:

23 (1) APPROPRIATE SECRETARY.—The term ‘‘ap24 propriate Secretary’’ means the head of the Federal

25 agency with authority to carry out a system program.
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1 (2) APPROPRIATE STATE AGENCY.—The term

2 ‘‘appropriate State agency’’—

3 (A) used with respect to a system program

4 authorized under title I or II, means an eligible

5 agency; and

6 (B) used with respect to another system pro7 gram, means a State agency with authority to

8 carry out the system program, as specified by the

9 Governor of the State.

10 (3) SYSTEM PROGRAM.—The term ‘‘system pro11 gram’’ means a program of activities, carried out

12 through the one-stop customer service system, that

13 are—

14 (A) activities authorized under title I or II;

15 (B) workforce investment activities author16 ized under subtitle A of title III;

17 (C) other activities authorized under title

18 III;

19 (D) programs authorized under section 6(d)

20 of the Food Stamp Act of 1977 (7 U.S.C.

21 2015(d));

22 (E) work programs authorized under section

23 6(o) of the Food Stamp Act of 1977 (7 U.S.C.

24 2015(o));
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1 (F) activities authorized under chapter 2 of

2 title II of the Trade Act of 1974 (19 U.S.C. 2271

3 et seq.);

4 (G) programs authorized under the Wagner5 Peyser Act (29 U.S.C. 49 et seq.);

6 (H) activities carried out by the Bureau of

7 Apprenticeship and Training;

8 (I) programs authorized under title I of the

9 Rehabilitation Act of 1973 (29 U.S.C. 720 et

10 seq.);

11 (J) activities authorized under chapter 41

12 of title 38, United States Code;

13 (K) programs authorized under State unem14 ployment compensation laws and the Federal

15 unemployment insurance program under titles

16 III, IX, and XII of the Social Security Act (42

17 U.S.C. 501 et seq., 1101 et seq., and 1321 et

18 seq.);

19 (L) programs authorized under part A of

20 title IV of the Social Security Act (42 U.S.C.

21 601 et seq.);

22 (M) programs authorized under title V of

23 the Older Americans Act of 1965 (42 U.S.C.

24 3056 et seq.); or
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1 (N) training activities carried out by the

2 Department of Housing and Urban Develop3 ment.

4 (c) STATE UNIFIED PLAN.—A State may develop and

5 submit to the appropriate Secretaries a State unified plan

6 for 2 or more of the system programs.

7 (d) CONTENTS.—

8 (1) PLANNING PROVISIONS.—

9 (A) IN GENERAL.—In a State that elects to

10 develop a State unified plan, the plan shall con11 tain planning provisions, which shall be devel12 oped in a manner that substantially reflects the

13 planning requirements of the provisions of the

14 Federal statutes authorizing the system pro15 grams.

16 (B) PLANNING REQUIREMENTS.—In sub17 paragraph (A), the term ‘‘planning require18 ments’’, used with respect to a system program,

19 means such requirements as the appropriate Sec20 retary shall by regulation specify for the system

21 program.

22 (2) INFORMATION PROVISIONS.—In addition to

23 the planning provisions required to be included pur24 suant to paragraph (1), the plan shall include the fol25 lowing:
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1 (A) A description of the process used for de2 veloping the State unified plan.

3 (B) A description of the process used to con4 sult the chief elected officials in the State about

5 the State unified plan.

6 (C) A description of the accountability sys7 tem of the State for activities carried out through

8 the one-stop customer service system.

9 (D) A description of how the one-stop cus10 tomer service system will provide the services

11 identified in the State unified plan through such

12 system.

13 (E) An assurance that the funds appro14 priated under Federal law to carry out the ac15 tivities identified in the State unified plan will

16 be used to supplement and not supplant other

17 Federal, State, and local public funds expended

18 to carry out the activities for eligible individ19 uals.

20 (e) DEVELOPMENT.—

21 (1) PLANNING PROVISIONS.—The provisions of

22 the plan described in subsection (d)(1) shall be devel23 oped by the statewide partnership. The portion of the

24 State unified plan relating to a system program may

25 be modified, as appropriate, with the agreement of the
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1 Governor and the head of the appropriate State agen2 cy with authority to carry out the system program.

3 The Governor and the head of the appropriate State

4 agency shall have the final authority to determine the

5 content of the portion of the State unified plan that

6 relates to the system program.

7 (2) INFORMATION PROVISIONS.—The provisions

8 of the plan described in subsection (d)(2) shall be de9 veloped by the statewide partnership, which shall have

10 the final authority to determine the content of the

11 provisions.

12 (f) SUBMISSION.—After the heads of the appropriate

13 State agencies approve the portions of the State unified

14 plan that relate to their system programs, the State unified

15 plan shall be submitted to the appropriate Secretaries by—

16 (1) the Governor; and

17 (2) an eligible agency, in the case of a plan con18 taining a portion relating to the system program of

19 the eligible agency.

20 (g) APPROVAL BY THE APPROPRIATE SECRETARIES.—

21 (1) JURISDICTION.—Each of the appropriate

22 Secretaries shall have the authority to approve the

23 portion of the State unified plan relating to the sys24 tem program for which the Secretary has authority.

25 On the approval of the Secretary, the portion of the
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1 plan relating to the system program shall be imple2 mented by the State pursuant to the State unified

3 plan.

4 (2) APPROVAL.—A portion of a State unified

5 plan submitted to an appropriate Secretary under

6 this section shall be considered to be approved by the

7 appropriate Secretary at the end of the 60-day period

8 beginning on the day the appropriate Secretary re9 ceives the portion, unless the Secretary makes a writ10 ten determination, during the 60-day period, that the

11 portion does not substantially reflect the planning re12 quirements of the appropriate Federal statutes au13 thorizing the system programs.

14 SEC. 502. TRANSITION PROVISIONS.

15 (a) IN GENERAL.—The Secretary of Education or the

16 Secretary of Labor, as appropriate, shall take such steps

17 as such Secretary determines to be appropriate to provide

18 for the orderly transition to the authority of this Act from

19 any authority under provisions of law to be repealed under

20 subtitle E of title I, subtitle B of title II, or subtitle E of

21 title III, or any related authority.

22 (b) EXTENDED TRANSITION PERIOD.—

23 (1) IN GENERAL.—If, on or before July 1, 1997,

24 a State has enacted a State statute that provides for

25 the establishment or conduct of 3 or more of the pro-
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1 grams, projects, or activities described in subpara2 graphs (A) through (E) of paragraph (2), the State

3 shall not be required to comply with provisions of this

4 Act that conflict with the provisions of such State

5 statute relating to such programs, projects, or activi6 ties for the period ending 3 years after the effective

7 date specified in section 503(a). After such 3-year pe8 riod, the Secretary of Education or the Secretary of

9 Labor, as appropriate, shall allow a State to continue

10 operating under such State statute if the State is

11 meeting the State performance measures of the State.

12 (2) PROGRAMS, PROJECTS, AND ACTIVITIES DE13 SCRIBED.—The programs, projects, and activities de14 scribed in this paragraph are the following:

15 (A) Establishment of statewide partnerships

16 or substate partnerships, including local and re17 gional partnerships.

18 (B) Reorganization or consolidation of

19 State agencies with responsibility for workforce

20 investment activities.

21 (C) Reorganization or consolidation of

22 workforce investment activities.

23 (D) Restructuring of local delivery systems

24 for workforce investment activities.
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1 (E) Development or restructuring of State

2 accountability or oversight systems for workforce

3 investment systems to focus on performance.

4 SEC. 503. EFFECTIVE DATE.

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

6 this Act, this Act takes effect on July 1, 1999.

7 (b) EARLY IMPLEMENTATION.—At the option of a

8 State, the Governor of the State and the chief official of

9 the eligible agencies in the State may use funds made avail10 able under a provision of law described in section 502(a),

11 or any related authority to implement this Act at any time

12 prior to July 1, 1999.

13 (c) EARLY IMPLEMENTATION AND TRANSITION PROVI14 SIONS.—Section 502 and this section take effect on the date

15 of enactment of this Act.

16 (d) TWENTY-FIRST CENTURY WORKFORCE COMMIS17 SION.—Subtitle C of title IV takes effect on the date of en18 actment of this Act.