SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Employment, Training,
and Literacy Enhancement Act of 1997’’.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) DIVISIONS.—This Act is organized into two divi-
sions as follows:
(1) Division A—Employment, Training, and
Literacy Programs.
(2) Division B—Vocational Rehabilitation Pro-
grams.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
DIVISION A—EMPLOYMENT, TRAINING, AND LITERACY
PROGRAMS
TITLE I—AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM
REQUIREMENTS
Subtitle A—General Provisions
Sec. 101. Statement of purpose.
Sec. 102. Authorization of appropriations.
Sec. 103. Definitions.
Subtitle B—State and Local Administrative Provisions
Sec. 111. State administrative provisions.
Sec. 112. Local administrative provisions.
Subtitle C—Program and Fiscal Provisions
CHAPTER 1—GENERAL PROVISIONS
Sec. 121. General program requirements.
Sec. 122. Benefits.
Sec. 123. Labor standards.
Sec. 124. Grievance procedure.
Sec. 125. Identification of additional imposed requirements.
Sec. 126. Authority of State legislature.
Sec. 127. Interstate agreements.
CHAPTER 2—PERFORMANCE ACCOUNTABILITY PROVISIONS
Sec. 131. Performance accountability provisions.
CHAPTER 3—OTHER PROVISIONS
Sec. 141. Prompt allocation of funds.
Sec. 142. Fiscal controls; sanctions.
Sec. 143. Reports; recordkeeping; and investigations.
Sec. 144. Administrative adjudication.
Sec. 145. Nondiscrimination.
Sec. 146. Judicial review.
Sec. 147. Administrative provisions.
Sec. 148. Presidential awards for outstanding private sector involvement in job
training programs.
Sec. 149. Construction.
Sec. 150. Limitation on certain costs.
Subtitle D—Miscellaneous Provisions
Sec. 161. Criminal provisions.
Sec. 162. Reference.
Sec. 163. Repealers.
TITLE II—AMENDMENTS TO EMPLOYMENT AND TRAINING
PROGRAMS FOR DISADVANTAGED YOUTH
Sec. 201. Adult training program.
Sec. 202. Summer youth employment and training program.
Sec. 203. Disadvantaged youth employment and training opportunities grants.
TITLE III—AMENDMENTS TO EMPLOYMENT AND TRAINING
PROGRAMS FOR ADULTS
Sec. 301. Adult employment and training opportunities grants.
TITLE IV—AMENDMENTS TO FEDERALLY ADMINISTERED
PROGRAMS
Subtitle A—Employment and Training Programs for Native Americans and
Migrant and Seasonal Farmworkers
Sec. 401. Native American program.
Sec. 402. Migrant and seasonal farmworker program.
Subtitle B—Job Corps
Sec. 411. Statement of purpose.
Sec. 412. Individuals eligible for the Job Corps.
Sec. 413. Screening and selection of applicants; general provisions.
Sec. 414. Job Corps centers.
Sec. 415. Standards of conduct.
Sec. 416. Counseling and job placement.
Sec. 417. Experimental and developmental projects and coordination with other
programs.
Subtitle C—National Activities
Sec. 421. Research, demonstration, evaluation, and capacity building.
Sec. 422. Nontraditional employment demonstration program.
Subtitle D—Repealers
Sec. 451. Repealers.
TITLE V—AMENDMENTS TO ADULT EDUCATION PROGRAMS
Sec. 501. Repeal of Jobs for Employable Dependent Individuals Incentive
Bonus Program.
Sec. 502. Amendment to Adult Education Act.
Sec. 503. Repeal of National Literacy Act of 1991.
Sec. 504. Conforming amendments.
TITLE VI—MISCELLANEOUS PROVISIONS
Sec. 601. Repealers.
Sec. 602. Conforming amendments.
TITLE VII—AMENDMENTS TO STATE HUMAN RESOURCE
INVESTMENT COUNCIL
Sec. 701. Amendments to Council.
Sec. 702. Transfer of Council.
Sec. 703. Conforming amendments.
TITLE VIII—AMENDMENTS TO WAGNER-PEYSER ACT
Sec. 801. Definitions.
Sec. 802. Functions.
Sec. 803. Designation of State agencies.
Sec. 804. Appropriations.
Sec. 805. Disposition of allotted funds.
Sec. 806. State plans.
Sec. 807. Federal advisory council.
Sec. 808. Regulations.
Sec. 809. Effective date.
TITLE IX—TECHNICAL AND CONFORMING AMENDMENTS
Subtitle A—Amendments to the Job Training Partnership Act
Sec. 901. Short title; table of contents.
Sec. 902. Definitions.
Sec. 903. Amendments to title I.
Sec. 904. Amendments to title IV.
Sec. 905. Amendments to title VI.
Sec. 906. Clarification.
Subtitle B—Amendments to Other Acts
Sec. 911. Amendments to other Acts.
TITLE X—EFFECTIVE DATE AND TRANSITION PROVISIONS
Sec. 1001. Effective date.
Sec. 1002. Transition provisions.
DIVISION B—VOCATIONAL REHABILITATION PROGRAMS
TITLE XXI—AMENDMENTS TO GENERAL PROVISIONS
Sec. 2101. Rehabilitation Services Administration.
Sec. 2102. Definitions.
Sec. 2103. Reports.
Sec. 2104. Buy-American requirements.
TITLE XXII—AMENDMENTS TO VOCATIONAL REHABILITATION
SERVICES
Subtitle A—General Provisions
Sec. 2201. Declaration of policy; authorization of appropriations.
Sec. 2202. State plans.
Sec. 2203. Individualized plan for employment.
Sec. 2204. Scope of vocational rehabilitation services.
Sec. 2205. State Rehabilitation Advisory Council.
Sec. 2206. Evaluation standards and performance indicators.
Sec. 2207. Monitoring and review.
Subtitle B—Basic Vocational Rehabilitation Services
Sec. 2211. State allotments.
Sec. 2212. Payments to States.
Sec. 2213. Client assistance program.
TITLE XXIII—AMENDMENTS TO RESEARCH AND TRAINING
Sec. 2221. Authorization of appropriations.
Sec. 2222. National Institute on Disability and Rehabilitation Research.
TITLE XXIV—AMENDMENTS TO TRAINING AND DEMONSTRATION
PROJECTS
Subtitle A—Training Programs and Community Rehabilitation Programs
Sec. 2231. Declaration of purpose.
Sec. 2232. Training.
Sec. 2233. Repealers.
Sec. 2234. Authorization of appropriations.
Subtitle B—Special Projects and Supplementary Services
Sec. 2241. Special demonstration programs.
Sec. 2242. Migratory workers.
Sec. 2243. Repealers.
Sec. 2244. Special recreational programs.
TITLE XXV—AMENDMENTS TO NATIONAL COUNCIL ON
DISABILITY
Sec. 2251. Authorization of appropriations.
TITLE XXVI—AMENDMENTS TO RIGHTS AND ADVOCACY
Sec. 2261. Employment of individuals with disabilities.
Sec. 2262. Architectural and Transportation Barriers Compliance Board.
Sec. 2263. Protection and advocacy of individual rights.
Sec. 2264. Requirement that Federal agencies provide certification of compli-
ance with electronic and information technology accessibility
guidelines.
TITLE XXVII—AMENDMENTS TO EMPLOYMENT OPPORTUNITIES
FOR INDIVIDUALS WITH DISABILITIES
Sec. 2271. Authorization of appropriations.
Sec. 2272. Repealers.
TITLE XXVIII—AMENDMENTS TO INDEPENDENT LIVING
SERVICES AND CENTERS FOR INDEPENDENT LIVING
Sec. 2281. Authorization of appropriations.
Sec. 2282. Program authorization for centers for independent living.
TITLE XXIX—AMENDMENTS TO SPECIAL DEMONSTRATIONS AND
TRAINING PROJECTS
Sec. 2291. Authorization of appropriations.
Sec. 2292. Demonstration activities.
Sec. 2293. Training activities.
TITLE XXX—AMENDMENTS TO THE HELEN KELLER NATIONAL
CENTER ACT
Sec. 2295. Authorization of appropriations.
TITLE XXXI—EFFECTIVE DATE
Sec. 2297. Effective date.
DIVISION 
A—EMPLOYMENT,
TRAINING, 
AND 
LITERACY
PROGRAMS
TITLE I—AMENDMENTS TO GEN-
ERAL PROVISIONS AND PRO-
GRAM REQUIREMENTS
Subtitle A—General Provisions
SEC. 101. STATEMENT OF PURPOSE.
Section 2 of the Job Training Partnership Act (29
U.S.C. 1501) is amended to read as follows:
‘‘SEC. 2. STATEMENT OF PURPOSE.
‘‘The purpose of this Act is to transform the current
array of Federal employment, training, and adult edu-
cation and literacy programs from a collection of frag-
mented and duplicative categorical programs into high
quality, coherent, and accountable State and local systems
that are designed—
‘‘(1) to provide high quality training for today
and for the 21st century;
‘‘(2) to empower individuals to choose occupa-
tions and training programs, based on accurate and
up-to-date information, that will develop more fully
their academic, occupational, and literacy skills,
leading to productive employment and economic self-
sufficiency, and reduction in welfare dependency;
‘‘(3) to provide resources and authority to
States and local communities and increase ease of
access to high quality employment, training, and lit-
eracy programs;
‘‘(4) to provide adults with the adult education
services they require to participate fully in society;
‘‘(5) to meet the needs of employers in the
United States to be competitive; and
‘‘(6) to ensure an adequate return on the in-
vestment of funds in employment, training, and lit-
eracy programs through strong program accountabil-
ity.’’.
SEC. 102. AUTHORIZATION OF APPROPRIATIONS.
Section 3 of the Job Training Partnership Act (29
U.S.C. 1502) is amended to read as follows:
‘‘SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated the following amounts for the following pur-
poses (in addition to amounts otherwise available for such
purposes):
‘‘(1) TITLE
II.—Such sums as may be nec-
essary for each of the fiscal years 1999 through
2003 to carry out title II.
‘‘(2) TITLE III.—(A) Such sums as may be nec-
essary for each of the fiscal years 1999 through
2003 to carry out section 312(a)(1).
‘‘(B) Such sums as may be necessary for each
of the fiscal years 1999 through 2003 to carry out
section 312(a)(2).
‘‘(3) PARTS A, C, D, AND E OF TITLE IV.—Sub-
ject to subsection (b), such sums as may be nec-
essary for each of the fiscal years 1999 through
2003 to carry out parts A, C, D, and E of title IV.
‘‘(4) PART B OF TITLE IV.—Such sums as may
be necessary for each of the fiscal years 1999
through 2003 to carry out part B of title IV.
‘‘(b) RESERVATIONS.—Of the amount appropriated
under subsection (a)(3) for a fiscal year—
‘‘(1) not less than $70,000,000 shall be re-
served for carrying out section 401;
‘‘(2) not less than $70,000,000 shall be re-
served for carrying out section 402; and
‘‘(3) the remainder shall be reserved for carry-
ing out parts C, D, and E of title IV.
‘‘(c) REALLOTMENT.—
‘‘(1) IN
GENERAL.—The Secretary of Labor
shall, in accordance with this subsection, reallot to
eligible States amounts appropriated for programs
authorized under titles II and title III of this Act
that are available for reallotment.
‘‘(2) AMOUNT.—The amount available for real-
lotment is equal to the amount by which the unobli-
gated balance of the State allotment under title II
or title III, respectively, at the end of the program
year prior to the program year for which the deter-
mination under this paragraph is made exceeds 20
percent of such allotment for the prior program
year.
‘‘(3) REALLOTMENT.—In making reallotments
to eligible States of amounts available pursuant to
paragraph (2) for a program year, the Secretary
shall allot to each eligible State an amount based on
the relative amount allotted to such State under title
II or title III, respectively, for the prior program
year as compared to the total amount allotted to all
eligible States under title II or title III, respectively,
for such prior program year.
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible State means a State which has
obligated at least 80 percent of its allotments under
title II or title III, respectively, for the program year
prior to the program year for which the determina-
tion under this subsection is made.
‘‘(5) PROCEDURES.—The Governor of each
State shall prescribe uniform procedures for the obli-
gation of funds by workforce development areas
within the State in order to avoid the requirement
that funds be made available for reallotment under
this subsection. The Governor shall further prescribe
equitable procedures for making funds available
from the State and workforce development areas in
the event that a State is required to make funds
available for reallotment under this paragraph.’’.
SEC. 103. DEFINITIONS.
Section 4 of the Job Training Partnership Act (29
U.S.C. 1503) is amended—
(1) in paragraph (1) to read as follows:
‘‘(1) ADULT EDUCATION AND LITERACY ACTIVI-
TIES.—The term ‘adult education and literacy activi-
ties’ means the activities authorized under section
314 of the Adult Education and Family Literacy
Act.’’;
(2) by striking paragraph (2);
(3) by inserting after paragraph (1) the follow-
ing:
‘‘(2) APPROPRIATE SECRETARY.—The term ‘ap-
propriate Secretary’ means—
‘‘(A) the Secretary of Labor, with respect
to programs authorized under titles II, III, and
IV of this Act; and
‘‘(B) the Secretary of Education, with re-
spect to programs authorized under the Adult
Education and Family Literacy Act.’’;
(4) in paragraph (3), by striking ‘‘under parts
A and C of title II’’ and inserting ‘‘under title II
and title III’’;
(5) in paragraph (4) to read as follows:
‘‘(4) CHIEF
ELECTED
OFFICIAL.—The term
‘chief elected official’ means the chief elected execu-
tive officer of a unit of general local government in
a workforce development area.’’;
(6) in paragraph (5) to read as follows:
‘‘(5) COMMUNITY-BASED ORGANIZATION.—The
term ‘community-based organization’ means a pri-
vate nonprofit organization that is representative of
a community or a significant segment of a commu-
nity and that has demonstrated the ability, or that
can demonstrate a capacity, to effectively administer
a program under this Act.’’;
(7) by striking paragraph (6);
(8) by inserting after paragraph (5) the follow-
ing:
‘‘(6) DISLOCATED
WORKER.—The term ‘dis-
located worker’ means an individual who—
‘‘(A)(i) has been terminated or laid off, or
who has received a notice of termination or lay-
off, from employment;
‘‘(ii) is eligible for or has exhausted entitle-
ment to unemployment compensation; and
‘‘(iii) is unlikely to return to a previous in-
dustry or occupation;
‘‘(B) has been terminated or laid off, or
has received a notice of termination or layoff,
from employment as a result of any permanent
(12) in paragraph (18), by striking all after
‘‘institution of higher education’’ and inserting ‘‘(as
such term is defined in section 481 of the Higher
Education Act of 1965 (20 U.S.C. 1088)) that con-
tinues to meet the eligibility and certification re-
quirements under title IV of such Act (20 U.S.C.
1070 et seq.).’’;
(13) by striking paragraph (19);
(14) in paragraph (21) to read as follows:
‘‘(21) SECRETARIES.—The term ‘Secretaries’
means the Secretary of Labor and the Secretary of
Education.’’;
(15) in paragraph (22) to read as follows:
‘‘(22) STATE.—The term ‘State’ means each of
the several States of the United States, the District
of Columbia, and the Commonwealth of Puerto
Rico.’’;
(16) in paragraph (24) to read as follows:
‘‘(24) SUPPORTIVE SERVICES.—The term ‘sup-
portive services’ means services such as transpor-
tation, child care, dependent care, and needs-based
payments, that are necessary to enable an individual
to participate in programs authorized under title II
and title III of this Act, consistent with the provi-
sions of such titles.’’;
(17) in paragraph (27) to read as follows:
‘‘(27) VETERAN.—The term ‘veteran’ has the
meaning given such term in section 101(2) of title
38, United States Code.’’;
(18) by striking paragraph (35);
(19) by striking paragraph (36);
(20) in paragraph (37), by striking ‘‘post-termi-
nation services authorized under sections 204(c)(4)
and 264(d)(5) and follow up services authorized
under section 253(d)’’ and inserting ‘‘follow up serv-
ices authorized under this Act’’; and
(21) by adding at the end the following:
‘‘(41) EMPLOYMENT, TRAINING AND LITERACY
PROGRAMS.—The term ‘employment, training and
literacy programs’ means programs authorized under
titles II and III of this Act and the Adult Education
and Family Literacy Act.
‘‘(42) ENGLISH
LITERACY
PROGRAM.—The
term ‘English literacy program’ means a program of
instruction designed to help individuals of limited
English proficiency achieve full competence in the
English language.
‘‘(43) FAMILY LITERACY SERVICES.—The term
‘family literacy services’ means services provided to
participants on a voluntary basis that are of suffi-
‘‘(B)(i) whose native language is a lan-
guage other than English; or
‘‘(ii) who lives in a family or community
environment where a language other that Eng-
lish is the dominant language.
‘‘(47) LITERACY.—The term ‘literacy’ used
with respect to an individual, means the ability of
the individual to speak, read, and write English, and
compute and solve problems, at levels of proficiency
necessary—
‘‘(A) to function on the job, in the family
of the individual, and in society;
‘‘(B) to achieve the goals of the individual;
and
‘‘(C) to develop the knowledge potential of
the individual.
‘‘(48) LOCAL BENCHMARKS.—The term ‘local
benchmarks’ means the expected level of perform-
ance of a local workforce development area estab-
lished pursuant to section 153(b).
‘‘(49) LOCAL BOARD.—The term ‘local board’
means a local workforce development board estab-
lished under section 122.
‘‘(50) 
LOCAL
WORKFORCE
DEVELOPMENT
AREA.—The term ‘local workforce development area’
means an area designated under section 121(a).
‘‘(51) ON-THE-JOB TRAINING.—The term ‘on-
the-job training’ means training by an employer that
is provided to a paid participant while engaged in
productive work in a job that—
‘‘(A) provides knowledge or skills essential
to the full and adequate performance of the job;
‘‘(B) provides reimbursement to employers
of up to 50 percent of the wage rate of the par-
ticipant, for the extraordinary costs of provid-
ing the training and additional supervision re-
lated to the training; and
‘‘(C) is limited in duration as appropriate
to the occupation for which the participant is
being trained, taking into account the content
of the training, the prior work experience of the
participant, and the service strategy of the par-
ticipant, as appropriate.
‘‘(52) OUTLYING
AREA.—The term ‘outlying
area’ means the United States Virgin Islands,
Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, the Republic of the Mar-
shall Islands, the Federated States of Micronesia,
and the Republic of Palau.
‘‘(53) RAPID
RESPONSE
ASSISTANCE.—The
term ‘rapid response assistance’ means assistance
provided by a State, or by an entity designated by
a State, with funds provided by the State under sec-
tion 313(a)(2) in the case of a permanent closure or
mass layoff at a plant, facility, or enterprise, or a
natural or other disaster, that results in mass job
dislocation, in order to assist dislocated workers in
obtaining reemployment as soon as possible, with
services including—
‘‘(A) the establishment of onsite contact
with employers and employee representatives—
‘‘(i) immediately after the State is no-
tified of a current or projected permanent
closure or mass layoff; or
‘‘(ii) in the case of a disaster, imme-
diately after the State is made aware of
mass job dislocation as a result of such
disaster;
‘‘(B) the provision of information and ac-
cess to available employment and training ac-
tivities;
‘‘(C) assistance in establishing voluntary
labor management committees with the ability
to devise and implement a strategy for assess-
ing the employment and training needs of dis-
located workers and obtaining services to meet
those needs;
‘‘(D) the provision of emergency assistance
adapted to the particular closure, layoff, or dis-
aster; and
‘‘(E) the provision of assistance to the
local community in developing a coordinated re-
sponse and in obtaining access to State eco-
nomic development assistance.
‘‘(54) REPRESENTATIVES OF EMPLOYEES.—For
purposes of section 122, the term ‘representatives of
employees’ means—
‘‘(A) individuals who have been elected by
organizations, associations, or a network of
similar institutions to represent the economic
interests of employees at a significant segment
of workplaces located in, or adjacent to, the
local workforce development area; or
‘‘(B) individuals from organizations, asso-
ciations, or a network of similar institutions,
with expertise to represent, or experience rep-
resenting, the interests of employees with re-
spect to the job training priorities in the local
workforce development area.
‘‘(55) SKILL
GRANT.—The term ‘skill grant’
means a voucher or credit issued to a participant
under section 314(c)(6)(A) for the purchase of train-
ing services from eligible providers of such services.
‘‘(56) STATE
ADJUSTED
BENCHMARKS.—The
term ‘state adjusted benchmarks’ means a state’s
expected levels of performance established pursuant
to 153(a).
‘‘(57) STATE
BENCHMARK.—The term ‘State
benchmark’ means the benchmarks established by
the state pursuant to section 152(a).
‘‘(58) STATEWIDE SYSTEM.—The term ‘state-
wide system’ means a statewide employment and
training and literacy system that includes programs
authorized under titles II and III of this Act and the
Adult Education and Family Literacy Act.’’.
Subtitle B—State and Local
Administrative Provisions
SEC. 111. STATE ADMINISTRATIVE PROVISIONS.
Part A of title I of the Job Training Partnership Act
(29 U.S.C. 1511 et seq.) is amended to read as follows:
‘‘PART A—STATE ADMINISTRATIVE PROVISIONS
‘‘SEC. 101. STATE PLAN.
‘‘(a) IN GENERAL.—For a State to be eligible to re-
ceive an allotment under title II or III, the Adult Edu-
cation and Family Literacy Act, or section 6 of the Wag-
ner-Peyser Act (29 U.S.C. 49e), the Governor of the State
shall submit to Secretaries, for consideration by the appro-
priate Secretary, a single comprehensive State plan that
provides a 3-year strategy and policy guidance with re-
spect to the Statewide system, and programs authorized
under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), oper-
ated in the State. Such plan shall meet the requirements
of this section and section 102.
‘‘(b) CONTENTS.—The State plan shall include the
following:
‘‘(1) A description of the collaborative process
described in section 102, including a description of
the manner in which the individuals and entities in-
volved in such process collaborated in the develop-
ment of the plan and will continue to collaborate in
carrying out the functions described in section
102(c).
‘‘(2) Information describing—
‘‘(A) the needs of the State with regard to
current and projected demands for workers, by
occupation;
sistency and avoid duplication among employment,
training, and literacy programs receiving assistance
under this Act, and, at a minimum, programs car-
ried out under the Wagner-Peyser Act (29 U.S.C.
49 et seq.), the Rehabilitation Act of 1973 (20
U.S.C. 701 et seq.), title I of the Personal Respon-
sibility and Work Opportunity Reconciliation Act of
1996, the Community Services Block Grant Act,
title V of the Older Americans Act of 1965, the Na-
tional and Community Service Act of 1990, and pro-
grams carried out by the Veterans’ Employment and
Training Service with funds received under section
4103 of title 38, United States Code, including a de-
scription of common data collection and reporting
processes.
‘‘(B) Information identifying how any funds
that a State receives through the allotments made
under this Act will be leveraged with other private
and public resources (including funds made available
to the State under the Wagner-Peyser Act (29
U.S.C. 49 et seq.)) and other human resource pro-
grams to maximize the effectiveness of such re-
sources, and expand the participation of business,
industry, employees, and individuals in the Statewide
system.
‘‘(7) A description of the process used by the
State to provide an opportunity for public comment,
and input into development of the plan, prior to sub-
mission of the plan.
‘‘(8) A description of the within-State allocation
formulas developed through the collaborative process
pursuant to sections 204(b)(2) and 313(b), through
which the State will distribute funds to local
workforce development areas, including—
‘‘(A) a description of how the individuals
and entities involved in the collaborative proc-
ess, including representatives of the State legis-
lature, determined the factors for such for-
mulas;
‘‘(B) a description of how such individuals
and entities consulted with chief elected officials
in local workforce development areas through-
out the State in determining such formulas;
and
‘‘(C) assurances that such formulas will re-
sult in funds being distributed equitably
throughout the State, that no one factor in
such 
formulas 
receive 
disproportionate
weighting, and that such formulas protect local
workforce development areas from significant
shifts in funding from year to year.
‘‘(9)(A) With respect to employment and train-
ing programs for disadvantaged youth authorized
under title II, information describing the State’s
strategy for providing comprehensive services to dis-
advantaged youth, particularly those youth who are
recognized as having significant barriers to employ-
ment, and a description of how the State intends to
use its State reserve funds (described in section
204(a)) to serve areas in the State with high con-
centrations of disadvantaged youth.
‘‘(B) An assurance that each local workforce
development area will be allowed to determine the
proportion of funds allocated to such area under sec-
tion 204(b)(2) that will be used to provide summer
employment opportunities and year-round disadvan-
taged youth activities, respectively.
‘‘(10) With respect to employment and training
programs for adults and dislocated workers author-
ized under title III, information—
‘‘(A) describing the employment and train-
ing activities that will be carried out with the
funds received by the State through the allot-
ments made under section 312, including a de-
scription of how the State will provide rapid re-
sponse assistance to dislocated workers from
funds reserved under section 313(a)(2);
‘‘(B) describing the strategy of the State
(including the timeframe for such strategy) for
development of a fully operational statewide full
service employment and training delivery sys-
tem as described in section 123, including the
steps that the State will take over the 3 years
covered by the plan, working with local
workforce development boards, to provide infor-
mation to individuals through the full service
employment and training delivery system on the
quality of employment, training, and literacy
services;
‘‘(C) describing the procedures the State
will use, working with local workforce develop-
ment boards, to identify eligible providers of
training services described in section 314(c), as
required under section 124; and
‘‘(D) describing how the State will serve
the employment and training needs of dis-
located workers (including displaced home-
makers), economically disadvantaged individuals
(including welfare recipients), individuals train-
ing for nontraditional employment, and other
individuals with multiple barriers to employ-
ment (including older workers and individuals
with disabilities).
‘‘(11) With respect to adult education and lit-
eracy activities authorized under part A of the Adult
Education and Family Literacy Act—
‘‘(A) a description of the assessment that
will be made to determine the adult education
and family literacy needs of the State;
‘‘(B) a description of the adult education
and literacy activities that will be carried out
with any funds received under such part, in-
cluding activities carried out under section
314(a) of such Act;
‘‘(C) a description of how the adult edu-
cation and literacy activities that will be carried
out with any funds received under such part
will be integrated with other adult education,
career development, and employment and train-
ing activities in the State or outlying area of
the eligible agency;
‘‘(D) a description of how the eligible agen-
cy annually will evaluate the effectiveness of the
adult education and literacy activities that are
carried out with any funds received under such
part;
‘‘(E) an assurance that any funds received
under such part will not be expended for any
purpose other than the activities described in
sections 313 and 314 of such Act;
‘‘(F) an assurance that the eligible agency
will expend any funds received under such part
only in a manner consistent with the fiscal re-
quirements in section 315 of such Act;
‘‘(G) an assurance that the eligible agency
will award not less than 1 grant under such
part to providers who offer flexible schedules
and necessary support services (such as child
care and transportation) to enable individuals,
including individuals with disabilities or other
special needs to participate in adult education
and literacy activities; and
‘‘(H) a description of the steps the State
will take to ensure direct and equitable access,
as stipulated in section 313(c)(2) of the Adult
Education and Family Literacy Act.
‘‘(12) With respect to programs authorized
under the Wagner-Peyser Act (29 U.S.C. 49 et
seq.), the plan information required under section 8
of such Act.
‘‘(c) PLAN SUBMISSION.—A State plan submitted to
the Secretaries under this section shall be approved by the
appropriate Secretary unless such Secretary makes a writ-
ten determination, within 90 days after receiving the plan,
that the plan is inconsistent with the specific provisions
of this Act.
‘‘(d) SPECIAL RULES.—
‘‘(1) GOVERNOR.—The Governor of a State
shall have final authority to determine the content of
the portion of the State plan described in para-
graphs (1) through (9)(A), paragraph (10), and
paragraph (12) of subsection (b).
‘‘(2) ELIGIBLE AGENCY.—The eligible agency
for adult education and literacy in a State shall have
final authority to determine the content of the por-
tion of the State plan described in paragraph (11)
of subsection (b).
‘‘(e) MODIFICATIONS TO PLAN.—A State may submit
modifications to a State plan in accordance with the re-
quirements of this section and section 102 as necessary
during the 3-year period covered by the plan.
‘‘SEC. 102. COLLABORATIVE PROCESS.
‘‘(a) IN GENERAL.—A State shall use a collaborative
process in the development of the State plan described in
section 101 and in carrying out the functions described
under subsection (c). Such collaborative process shall be
carried out by, at a minimum, the following individuals
and entities (who overall, represent diverse regions of the
State, including urban, rural, and suburban areas):
‘‘(1) the Governor;
‘‘(2) representatives of the State legislature;
‘‘(3) representatives, appointed by the Gov-
ernor, of—
‘‘(A) business and industry;
‘‘(B) local chief elected officials (represent-
ing both cities and counties, where appro-
priate);
‘‘(C) local educational agencies (including
adult education and literacy providers);
‘‘(D) postsecondary institutions (including
community and technical colleges);
‘‘(E) organizations representing individuals
served by programs authorized under this Act
(including community-based organizations);
‘‘(F) organizations serving individuals par-
ticipating in programs authorized under this
Act and the Adult Education and Family Lit-
eracy Act;
‘‘(G) parents; and
‘‘(H) employees (which may include labor);
‘‘(4) the lead State agency official or officials
for—
‘‘(A) employment security;
‘‘(B) job training;
‘‘(C) the State educational agency;
‘‘(D) the eligible agency for vocational edu-
cation;
‘‘(E) the eligible agency for adult edu-
cation and literacy;
‘‘(F) the State agency responsible for post-
secondary education;
‘‘(G) the State agency responsible for wel-
fare; and
‘‘(H) the State agency responsible for vo-
cational rehabilitation, and where applicable,
the State agency providing vocational rehabili-
tation program activities for the blind;
‘‘(5) such other State agency officials, including
officials responsible for economic development, as
the Governor may designate; and
‘‘(6) the representative of the Veterans’ Em-
ployment and Training Service assigned to the State
under section 4103 of title 38, United States Code.
‘‘(b) CLARIFICATION.—For purposes of complying
with subsection (a), a State may use any State collabo-
rative process (including a council, board, State Human
Resource Investment Council established under section
103, or a similar entity) that meets or is conformed to
meet the requirements of such subsection.
‘‘(c) ADDITIONAL FUNCTIONS
OF
THE COLLABO-
RATIVE PROCESS.—In addition to development of the
State plan, the individuals and entities described in sub-
section (a) shall collaborate in—
‘‘(1) the designation of local workforce areas as
required under section 121;
‘‘(2) the development of allocation formulas for
the distribution of funds to local workforce develop-
ment areas for programs authorized under title II
and title III;
‘‘(3) the development of the State goals and
benchmarks as required under part C of this title,
including the continued updating of such goals and
benchmarks;
‘‘(4) the provision of management guidance and
review for all programs in the State, including re-
view of the operation of programs conducted in each
local workforce development area, and the availabil-
ity, responsiveness, and adequacy of State services,
and make recommendations to the Governor, the
State legislature, appropriate chief elected officials,
local workforce development boards, and service pro-
viders throughout the State regarding the findings
of such review;
‘‘(5) the continued development of linkages be-
tween employment, training, literacy, and other
human resource and workforce preparation pro-
grams in the State;
‘‘(6) comment at least once annually on the
measures taken pursuant to section 113(b)(14) of
the Carl D. Perkins Vocational Education Act; and
‘‘(7) review plans of all State agencies providing
employment, training, literacy, and related services,
and provide comments and recommendations to the
Governor, the State legislature, the State agencies,
and the appropriate federal agencies on the rel-
evancy and effectiveness of employment, training, lit-
eracy, and related delivery systems in the State.’’.
SEC. 112. LOCAL ADMINISTRATIVE PROVISIONS.
Part B of title I of the Job Training Partnership Act
(29 U.S.C. 1531 et seq.) is amended by striking sections
121 through 123 and inserting the following:
‘‘SEC. 121. LOCAL WORKFORCE DEVELOPMENT AREAS.
‘‘(a) DESIGNATION OF AREAS.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (b), and consistent with paragraph (2), a
State that desires to receive a grant under title II
or title III shall, through the collaborative process
established under section 102 and after consultation
with local chief elected officials, and after consider-
ation of comments received through the public com-
ment process as described in section 101(b)(7) of
the State plan, designate local workforce develop-
ment areas within the State that are consistent with
labor market areas, or a substantial portion of a
labor market area, and that take into consideration
the following:
‘‘(A) Units of general local government.
‘‘(B) Geographic areas served by local edu-
cational agencies and intermediate educational
agencies.
‘‘(C) Geographic areas served by post-
secondary institutions and area vocational edu-
cation schools.
‘‘(D) Service delivery areas established
under section 101 of this Act (as such section
was in effect on the day before the date of the
enactment of the Employment, Training, and
Literacy Enhancement Act of 1997).
‘‘(E) The distance that individuals will
need to travel to receive services.
‘‘(2) AUTOMATIC DESIGNATION.—The Governor
shall approve any request for designation as a
workforce development area from any unit of general
local government with a population of 500,000 or
more.
‘‘(b) SMALL STATES.—Any State determined to be
eligible to receive a minimum allotment under section
203(b)(2)(D) or paragraph (1)(B)(iv) or paragraph
(2)(B)(iv) of section 312(b) may designate itself, through
the collaborative process established pursuant to section
102, and after consultation with local chief elected offi-
cials, and consideration of comments received through the
public comment process described in section 101(b)(7) of
the State plan, as a single State workforce development
area for purposes of this Act.
‘‘SEC. 122. LOCAL WORKFORCE DEVELOPMENT BOARDS.
‘‘(a) ESTABLISHMENT.—There shall be established in
each local workforce development area of a State, and cer-
tified by the Governor of the State, a local workforce de-
velopment board (hereinafter referred to as the ‘local
board’), reflecting business and community interests in
employment, training, and other workforce preparation ac-
tivities.
‘‘(b) MEMBERSHIP.—
‘‘(1) STATE CRITERIA.—The Governor of the
State, through the collaborative process described in
section 102, shall establish criteria for use by local
chief elected officials in the local workforce develop-
ment areas for appointment of members of the local
boards in such local areas in accordance with the re-
quirements of paragraph (2).
‘‘(2) COMPOSITION.—(A) Such criteria shall re-
quire at a minimum, that the membership of each
local board consist of—
‘‘(i) a majority of members who are rep-
resentatives of business and industry in the
local workforce development area, who are own-
ers of businesses, chief executives or chief oper-
ating officers of private business, and other
business executives with optimum policymaking
authority in local businesses, appointed from
among individuals nominated by local business
organizations and trade associations;
‘‘(ii) representatives of local educational
entities, including representatives of local edu-
cational agencies, local school boards, post-
secondary educational institutions (including
representatives of community colleges), and rep-
resentatives of providers of adult education and
literacy services, where such schools, institu-
tions, educators, or providers, as appropriate,
exist, selected from among individuals nomi-
nated by regional or local educational agencies,
institutions, or organizations representing such
individuals or entities; and
‘‘(iii) representatives of community-based
organizations (including, as appropriate, a com-
munity-based organization that provides direct
job training and placement services to individ-
uals with disabilities), employees (which may in-
clude labor), and other representatives of the
public who may include program participants,
parents, individuals with disabilities, older
workers, veterans, or organizations serving such
individuals, as nominated to the board by re-
gional or local agencies, institutions, or organi-
zations representing such individuals or entities.
‘‘(B) In addition, the membership of each local
board may consist of representatives of local welfare
agencies, economic development agencies, and the
local employment service system.
‘‘(3) CHAIRPERSON.—The local board shall
elect a chairperson from among the members of the
board.
‘‘(c) 
APPOINTMENT
AND
CERTIFICATION
OF
BOARD.—
‘‘(1) APPOINTMENT OF BOARD MEMBERS AND
ASSIGNMENT OF RESPONSIBILITIES.—
‘‘(A) IN GENERAL.—The chief elected offi-
cial in a local workforce development area is au-
thorized to appoint the members of the local
board for such area, in accordance with the
State criteria established under subsection (b).
‘‘(B) MULTIPLE UNITS OF LOCAL GOVERN-
MENT IN AREA.—
‘‘(i) IN GENERAL.—In a case in which
a local workforce development area in-
cludes more than 1 unit of general local
government, the chief elected officials of
such units may execute an agreement that
specifies the respective roles of the individ-
ual chief elected officials—
‘‘(I) in the appointment of the
members of the local board from the
individuals 
nominated 
or 
rec-
ommended to be such members in ac-
cordance with the criteria established
under subsection (b); and
‘‘(II) in carrying out any other
responsibilities assigned to such offi-
cials.
‘‘(ii) LACK OF AGREEMENT.—If, after
a reasonable effort, the chief elected offi-
cials are unable to reach agreement as pro-
vided under clause (i), the Governor may
appoint the members of the local board
from individuals so nominated or rec-
ommended.
‘‘(2) CERTIFICATION.—
‘‘(A) IN GENERAL.—The Governor is au-
thorized to biennially certify 1 local board for
each local workforce development area in the
State.
‘‘(B) CRITERIA.—Such certification shall
be based on factors including the criteria estab-
lished under subsection (b) and, for a second or
subsequent certification, the extent to which the
local board has ensured that employment and
training activities and disadvantaged youth ac-
tivities carried out in the local workforce devel-
opment area have met expected levels of per-
formance with respect to the local benchmarks
negotiated pursuant to subsection (d)(6)(A).
‘‘(C) FAILURE
TO
ACHIEVE
CERTIFI-
CATION.—Failure of a local board to achieve
certification shall result in reappointment and
certification of another local board for the local
workforce development area pursuant to the
process described in paragraph (1) and this
paragraph.
‘‘(3) DECERTIFICATION.—
‘‘(A) FISCAL NONCOMPLIANCE.—Notwith-
standing paragraph (2), the Governor may de-
certify a local board if it is determined as a re-
sult of financial and compliance audits that
there is a substantial violation of a specific re-
quirement under this Act and corrective action
has not been taken, in accordance with section
164. If the Governor decertifies a local board
for a local workforce development area under
this subparagraph, the Governor may require
that a new local board be appointed and cer-
tified for the local workforce development area
pursuant to a reorganization plan developed by
the Governor under section 164(b)(1) and in
accordance with the criteria established under
subsection (b).
‘‘(B) NONPERFORMANCE.—Notwithstand-
ing paragraph (2), the Governor may decertify
a local board if a local workforce development
area fails to meet the local benchmarks estab-
lished pursuant to section 153(b) for such local
area for two consecutive program years (in ac-
cordance with section 156(b)(2)). If the Gov-
ernor decertifies a local board for a local
workforce development area under this subpara-
graph, the Governor may require that a new
local board be appointed and certified for the
local area pursuant to a reorganization plan de-
veloped 
by 
the 
Governor 
under 
section
156(b)(2) and in accordance with the criteria
established under subsection (b).
‘‘(4) SINGLE
STATE
AREA.—Notwithstanding
subsection (b) and paragraphs (1) and (2), if a
State described in section 121(b) indicates in the
State plan that the State will be treated as a local
workforce development area for purposes of the ap-
plication of this Act, the Governor may designate the
individuals and entities involved in the collaborative
process described in section 105 to carry out the
functions described in subsection (d).
‘‘(d) FUNCTIONS OF LOCAL BOARD.—The functions
of the local board shall include the following:
‘‘(1) LOCAL PLAN.—
‘‘(A) IN GENERAL.—Each local board, in
partnership with the chief local elected official,
shall develop and submit to the Governor, for
approval, a comprehensive 3-year strategic local
plan. The local plan shall be consistent with the
State goals and State plan described in section
101.
‘‘(B) CONTENTS.—The local plan shall in-
clude—
‘‘(i) an identification of the workforce
development needs of local industries, job
seekers, and workers;
‘‘(ii) a description of the disadvan-
taged youth activities and the employment
and training activities for adults and dis-
located workers to be carried out in the
local workforce development area as re-
quired under titles II and III, that, with
activities authorized under the Wagner-
Peyser Act (29 U.S.C. 49 et seq.), will
contribute to the coherent delivery of em-
ployment, training and workforce prepara-
tion activities in the local area;
‘‘(iii) a description of the local bench-
marks negotiated with the Governor pursu-
ant to paragraph (6)(A), to be used by the
local board for measuring the performance
of the local administrative entity (where
appropriate), eligible providers of services
authorized under titles II and III, and the
performance of the full service employment
and training delivery system in the local
workforce development area;
‘‘(iv) a description of the local full
service employment and training delivery
system to be established or designated in
the local workforce development area, in-
cluding—
‘‘(I) a description of the process
negotiated with the Governor pursu-
ant to paragraph (6)(B) that the local
board will use to designate or certify
full service eligible providers in the
local workforce development area,
which ensures that the most effective
and efficient providers will be chosen;
‘‘(II) a description of how the
local board will ensure the continuous
improvement of such full service eligi-
ble providers and that such providers
will continue to meet the labor market
needs of local employers and partici-
pants; and
‘‘(III) an identification of the
roles of individual employment, train-
ing, and other human resources pro-
grams, as determined appropriate, in-
cluding programs authorized by the
Wagner-Peyser Act (20 U.S.C. 49 et
seq.), in carrying out the functions of
the full service employment and train-
ing delivery system, including a de-
scription of the funding sources to be
used in the operation of the full serv-
ice employment and training system;
‘‘(v) an identification of the adminis-
trative entity designated by the local board
in accordance with paragraph (5);
‘‘(vi) a description of the steps the
local board will take to work with local
educational agencies, postsecondary edu-
cational institutions (including community
colleges, where applicable), vocational edu-
cators, providers of adult education and lit-
eracy services, and other representatives of
the educational community to address local
employment, 
education, 
and 
training
needs, including a description of linkages
established with such individuals and enti-
ties to enhance the provision of services,
including supportive services, and avoid
duplication;
‘‘(vii) a description of the process that
will be used by the local board to fully in-
volve representatives of the local commu-
nity, including community-based organiza-
tions with experience in serving disadvan-
taged youth, the local education commu-
nity (including vocational educators and
teachers), parents, youth, local law en-
forcement agencies, and representatives of
business and employees (which may include
labor) in the development and implementa-
tion of disadvantaged youth programs in
the local workforce development area, in-
cluding a description of the process used
(involving the individuals and organizations
described in this clause) to ensure that the
most effective and efficient providers are
chosen to carry out the activities author-
ized under title II; and
‘‘(viii) such other information as the
Governor may require.
‘‘(2) SELECTION OF PROVIDERS.—
‘‘(A) SELECTION OF FULL SERVICE PRO-
VIDERS.—Consistent with section 123 and the
agreement negotiated with the Governor under
paragraph (6)(B)(i), the local board is author-
ized to designate or certify full service eligible
providers, and to terminate for cause, the eligi-
bility of such providers.
‘‘(B) 
SELECTION
OF
DISADVANTAGED
YOUTH
PROVIDERS.—Consistent with section
207, the local board is authorized to award
grants on a competitive basis to eligible provid-
ers of disadvantaged youth activities in the local
workforce development area.
‘‘(3) IDENTIFICATION OF ELIGIBLE PROVIDERS
OF
TRAINING
SERVICES.—Consistent with section
124, the local board is authorized to work in part-
nership with the Governor concerning the identifica-
tion of eligible providers of training services de-
scribed in section 314(c) in the local workforce de-
velopment area.
‘‘(4) BUDGET AND PROGRAM OVERSIGHT.—
‘‘(A) BUDGETING.—
‘‘(i) 
IN
GENERAL.—The 
local
workforce development board shall develop
a budget for the purpose of carrying out
local programs established under titles II
and III and section 123.
‘‘(ii) APPROVAL
OF
BUDGET.—Such
budget shall be subject to the approval of
the chief elected official or officials in the
local workforce development area.
‘‘(B) PROGRAM
OVERSIGHT.—The local
workforce development board, in partnership
with the chief elected official or officials in the
local workforce development area, shall conduct
oversight of the programs established under ti-
tles II and III and section 123.
‘‘(5) ADMINISTRATION.—
‘‘(A) DESIGNATION
OF
ADMINISTRATIVE
ENTITY.—
‘‘(i) 
IN
GENERAL.—The 
local
workforce development board may des-
ignate itself as the administrative entity
for receipt and disbursement of funds
made available for carrying out programs
authorized under title II and title III of
this Act, or the local board may designate
an administrative entity (which may be the
State through a mutual agreement between
the local board and the State), for the pur-
pose of receipt and disbursement of such
funds.
‘‘(ii) ADDITIONAL
FISCAL
RESPON-
SIBILITIES.—Each administrative entity
shall be responsible for the distribution of
funds and shall have responsibility to take
action against its subcontractors, sub-
grantees, and other recipients to eliminate
abuses in the programs being carried out
in the local workforce development area
and to prevent any misuse of funds by sub-
contractors, subgrantees, and other recipi-
ents.
‘‘(B) STAFF; GRANTS
AND
OTHER
CON-
TRIBUTIONS.—The local board may employ its
own staff, independent of local programs and
service providers, and may solicit or accept
grants and contributions from sources other
than from this Act.
‘‘(C) PROHIBITION ON DIRECT PROVISION
OF SERVICES.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a local board or em-
ployees of such board may not directly pro-
vide services under programs established
under this Act.
‘‘(ii) WAIVER.—The Governor of the
State in which the local board is located
may grant to the local board a written
waiver of the prohibition under clause (i)
where necessary to improve performance or
to provide a full array of services in the
local area as may be particularly necessary
in rural areas.
‘‘(D) CONFLICT OF INTEREST.—A member
of a local board may not—
‘‘(i) vote on a matter under consider-
ation by the local board—
‘‘(I) regarding the provision of
services by such member (or by an or-
ganization that such member rep-
resents); or
‘‘(II) that would provide direct fi-
nancial benefit to such member or the
immediate family of such member; or
‘‘(ii) engage in any other activity de-
termined by the Governor to constitute a
conflict of interest.
‘‘(6) NEGOTIATIONS.—
‘‘(A) LOCAL
BENCHMARKS.—The local
board, the local chief elected official, and the
Governor shall negotiate and reach agreement
on local benchmarks designed to meet the State
goals described in the State plan under section
101 for the local workforce development area.
In determining such benchmarks, the Governor,
the local chief elected official, and the local
board shall take into account the State adjusted
benchmarks described in section 153(a) with re-
spect to programs authorized under titles II
and III, and specific economic, demographic,
and other characteristics of the populations to
be served in the local workforce development
area.
‘‘(B) LOCAL DELIVERY OF SERVICES.—
‘‘(i) IN GENERAL.—The local board,
the local chief elected official, and the Gov-
ernor shall negotiate and reach agreement
on a process to be used by the local board
that meets the requirements of subclauses
(I) and (II) of paragraph (1)(B)(iv) for—
‘‘(I) the designation or certifi-
cation of full service eligible providers
(as described in section 123(c)) in the
local workforce development area, in-
cluding, consistent with State statute,
a determination of the role of provid-
ers of activities authorized under the
Wagner-Peyser Act (29 U.S.C. 49 et
seq.) in the full service delivery of
services in the local workforce develop-
ment area; and
‘‘(II) the continued role of the
local board and the local elected offi-
cial in conducting oversight with re-
spect to full service eligible providers
that are providers of activities author-
ized under the Wagner-Peyser Act (29
U.S.C. 49 et seq.).
‘‘(ii) ESTABLISHED
FULL
SERVICE
EMPLOYMENT
AND
TRAINING
DELIVERY
SYSTEM.—Notwithstanding this subsection
and section 123(c), if a full service employ-
ment and training delivery system has
been established in a local workforce devel-
opment area prior to the date of enactment
of this Act, or if approval has been ob-
tained for a plan for a full service employ-
ment and training delivery system under
the Wagner-Peyser Act (29 U.S.C. 49 et
seq.) prior to the date of enactment of this
Act, the local board and the Governor in-
volved may agree to certify such full serv-
ice employment and training delivery sys-
tem for purposes of this subparagraph.
‘‘(7) LIMITATION.—Nothing in this Act shall be
construed to provide local workforce development
boards with the authority to mandate curriculum for
schools.
‘‘(e) SUNSHINE PROVISION.—
‘‘(1) IN GENERAL.—The local board shall make
available to the public, on a regular basis, informa-
tion regarding the activities of the local board, in-
cluding information regarding membership, the des-
ignation and certification of full service employment
and training eligible providers, the award of grants
to eligible providers of disadvantaged youth activi-
ties, and upon request, minutes of formal meetings
of the local board.
‘‘(2) LOCAL PLAN.—Prior to the submission of
the local plan to the Governor, under subsection
(d)(1)(D)(ii), the local board shall make such plan
available for review and comment to—
‘‘(A) appropriate community-based organi-
zations and local educational and other public
agencies in the local workforce development
area;
‘‘(B) local business organizations and rep-
resentatives of employees in the local workforce
development area; and
‘‘(C) the general public through such
means as public hearings and local news media.
‘‘SEC. 123. FULL SERVICE EMPLOYMENT AND TRAINING DE-
LIVERY SYSTEM.
‘‘(a) IN GENERAL.—There shall be established in a
State that receives an allotment under section 312, a full
service employment and training delivery system that—
ery system. Such entities shall be known as ‘full service
eligible providers’ and may include—
‘‘(1) institutions of higher education;
‘‘(2) local employment service offices established
under the Wagner-Peyser Act (29 U.S.C 49 et seq.);
‘‘(3) private, nonprofit organizations (including
community-based organizations);
‘‘(4) private for-profit entities;
‘‘(5) agencies of local government; and
‘‘(6) other interested organizations and entities
of demonstrated effectiveness, including local cham-
bers of commerce and other business organizations,
consistent with State criteria as described in the
State plan under section 101.
‘‘(d) CORE SERVICES.—Funds made available to local
workforce development areas under section 313(b), in ad-
dition to funds made available under the Wagner-Peyser
Act, part E of title IV, and other related programs, shall
be used to provide core services, which shall be available
to all individuals through the full service employment and
training delivery system and shall, at a minimum, in-
clude—
‘‘(1) outreach, intake (which may include work-
er profiling), and orientation to the information and
other services available through the full service em-
ployment and training delivery system;
‘‘(2) initial assessment of skill levels, aptitudes,
abilities, and supportive service needs;
‘‘(3) job search and placement assistance, and
where appropriate, career counseling;
‘‘(4) provision of accurate information relating
to local, regional, and national labor markets, in-
cluding—
‘‘(A) job vacancy listings in such markets;
and
‘‘(B) information relating to local occupa-
tions in demand and the earnings and skill re-
quirements for such occupations;
‘‘(5) provision of accurate information relating
to the quality and availability of employment, train-
ing, and literacy activities authorized under titles II
and III of this Act and the Adult Education and
Family Literacy Act, and of vocational rehabilitation
program activities as appropriate, and referral to
such activities;
‘‘(6) provision of information relating to unem-
ployment compensation, publicly funded employment
and training programs (including registered appren-
ticeships), and forms of public financial assistance,
such as student aid programs, that may be available
in order to enable individuals to participate in em-
ployment, training, literacy, and other workforce
preparation activities;
‘‘(7) soliciting and accepting job orders submit-
ted by employers in the local workforce development
area, and screening and referring applicants in ac-
cordance with such orders;
‘‘(8) dissemination of lists of eligible training
providers and performance information regarding
such providers in accordance with section 124; and
‘‘(9) any additional performance information
with respect to the full service employment and
training delivery system in the local workforce devel-
opment area.
‘‘(e) PERMISSIBLE SERVICES.—Funds made avail-
able to local workforce development areas under section
313(b) may be used to contribute to, through the full serv-
ice employment and training delivery system—
‘‘(1) co-location of services related to employ-
ment, training, and literacy activities, such as unem-
ployment insurance, vocational rehabilitation pro-
gram activities, veterans’ employment services, pro-
grams authorized under the Wagner-Peyser Act (29
U.S.C. 49 et seq.), employment-related services for
welfare recipients, or other public assistance activi-
ties;
‘‘(2) customized screening and referral of quali-
fied participants to employment; and
‘‘(3) customized employment-related services to
employers on a fee-for-service basis.
‘‘SEC. 124. IDENTIFICATION OF TRAINING PROVIDERS.
‘‘(a) ELIGIBILITY REQUIREMENTS.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (e), to be identified as an eligible provider of
training services under title III and to receive funds
made available for the provision of training services
described in section 314(c) (referred to in this sec-
tion as ‘training services’), a provider of such serv-
ices shall meet the requirements of this section.
‘‘(2) POSTSECONDARY EDUCATIONAL INSTITU-
TION.—Subject to the provisions of this section, a
postsecondary educational institution shall automati-
cally be eligible to provide training services under
title III for programs that are eligible to participate
in title IV of the Higher Education Act of 1965.
‘‘(3) OTHER ELIGIBLE PROVIDERS.—
‘‘(A) PROCEDURE.—
‘‘(i) IN
GENERAL.—The Governor
shall establish a procedure for use by local
workforce development boards in determin-
ing the eligibility of public and private pro-
viders not described in paragraph (2) (in-
cluding eligibility of postsecondary edu-
cational institutions for programs not de-
scribed in paragraph (2)) to receive such
funds.
‘‘(ii) FACTORS.—In developing such
procedure, the Governor—
‘‘(I) shall solicit and take into
consideration the recommendations of
local workforce development boards
and providers of training services
within the State; and
‘‘(II) shall take into consider-
ation—
‘‘(aa) the specific economic,
geographic, and demographic fac-
tors in the local areas in which
eligible providers are located; and
‘‘(bb) the characteristics of
the populations served by the eli-
gible providers, including the
demonstrated difficulties in serv-
ing such populations, where ap-
plicable.
‘‘(B) LEVELS
OF
PERFORMANCE.—At a
minimum, the procedure described in subpara-
graph (A) shall require such a provider to meet
minimum acceptable levels of performance
based on verifiable program-specific perform-
ance information described in subsection (b)
and submitted to the State agency designated
under subsection (c), as required under para-
graphs (2) and (3) of subsection (c).
‘‘(b) PERFORMANCE INFORMATION.—
‘‘(1) REQUIRED
INFORMATION.—Pursuant to
subsection (c)(2), to be eligible to provide training
services under title III, a provider shall submit infor-
mation on—
‘‘(A) program completion rates for individ-
uals in the applicable program conducted by the
provider;
‘‘(B) the percentage of individuals in the
applicable program who obtain employment,
which may also include information specifying
the percentage of individuals who obtain em-
ployment in an occupation related to the pro-
gram conducted;
‘‘(C) the earnings at placement of individ-
uals who complete the program; and
‘‘(D) for literacy providers or providers of
integrated education and training services, the
success rate of the applicable program in rais-
ing the literacy levels of individuals in skill
areas that are considered important for success-
ful participation in training and employment.
‘‘(2) ADDITIONAL
INFORMATION.—Subject to
paragraph (3), in addition to the performance infor-
mation described in paragraph (1), the Governor
may require that a provider described in this para-
graph submit such other performance information as
the Governor determines to be appropriate, which
may include information relating to—
‘‘(A) the retention in employment and the
subsequent earnings of the individuals who
complete the applicable program;
‘‘(B) where appropriate, the rates of licen-
sure or certification of individuals who complete
the program;
‘‘(C) the percentage of individuals who
complete the program who attain industry-rec-
ognized occupational skills in the subject, occu-
pation, or industry for which training is pro-
vided, where applicable; and
‘‘(D) the adequacy of space, staff, equip-
ment, instructional materials, and student sup-
port services offered by the provider through a
program conducted by the provider.
‘‘(3) CONDITIONS.—
‘‘(A) IN
GENERAL.—If the Governor re-
quests additional information pursuant to para-
graph (2) that imposes extraordinary costs on
providers, the Governor shall provide access to
cost-effective methods for the collection of such
information or provide additional resources to
assist providers in the collection of such infor-
mation from funds made available under section
313(a).
‘‘(B) TRANSITION PERIOD FOR PERFORM-
ANCE-BASED
INFORMATION.—For 
program
years 1999 and 2000, the performance-based
information to be submitted by a provider
under this subsection shall only be required to
be provided relating to the performance of par-
ticipants assisted under title III in lieu of all in-
dividuals participating in the program of the
provider. Nothing in this subparagraph shall be
construed to prohibit the submission of per-
formance-based information for all individuals
participating in the program of the provider as
soon as is practicable prior to program year
2001 and each provider shall be encouraged to
submit such information.
‘‘(c) ADMINISTRATION.—
‘‘(1) DESIGNATION.—The Governor shall des-
ignate a State agency to collect and disseminate the
performance information described in subsection (b)
and to carry out other duties described in this sub-
section.
‘‘(2) SUBMISSION.—A provider described in
subsection (a) shall submit the performance informa-
tion described in subsection (b) annually to the des-
ignated State agency at such time and in such man-
ner as the designated State agency may require. The
designated State agency may accept program-spe-
cific performance information consistent with the re-
quirements for eligibility under title IV of the High-
er Education Act of 1965 (20 U.S.C. 1070 et seq.)
from such a provider for purposes of enabling the
provider to fulfill the applicable requirements of this
paragraph, if such information is substantially simi-
lar to the information required under subsection (b).
‘‘(3) LIST OF ELIGIBLE PROVIDERS.—
‘‘(A) IN GENERAL.—The designated State
agency shall compile a list of eligible providers
accompanied by the performance information
described in subsection (b) consisting of—
‘‘(i) providers determined to be auto-
matically eligible subject to subsection
(a)(2); and
‘‘(ii) providers determined to be eligi-
ble by local workforce development boards,
subject to subsection (a)(3).
‘‘(B) 
AVAILABILITY.—The 
designated
State agency shall disseminate such lists and
information to the full service employment and
training delivery system and to local boards.
Such list and information shall be made widely
available to participants in employment and
training programs authorized under title III
and others through the full service employment
and training delivery system described in sec-
tion 123.
‘‘(d) ENFORCEMENT.—
‘‘(1) ACCURACY OF INFORMATION.—If the des-
ignated State agency determines that a provider or
individual supplying information on behalf of a pro-
vider intentionally supplies inaccurate information
under this section, the agency shall terminate the
eligibility of the eligible provider to receive funds de-
scribed in subsection (a) for a period of time, but
not less than 2 years, as prescribed in regulations is-
sued by the Governor.
‘‘(2) 
NONCOMPLIANCE.—If 
the 
designated
State agency, or the local workforce development
board working through the State agency, determines
that an eligible provider under subsection (a) sub-
stantially violates any requirement under this Act,
the agency, or the local board through the State
agency, may terminate the eligibility of such pro-
vider to receive funds described in subsection (a) for
such program or take such other action as the agen-
cy or local board determines to be appropriate.
‘‘(3) NONPERFORMANCE.—
‘‘(A) TERMINATION
FOR
NONPERFORM-
ANCE.—If the designated State agency, or the
local workforce development board working
through the State agency, determines that an
eligible provider under subsection (a) substan-
tially fails to meet performance criteria estab-
lished by the Governor, the agency, or the local
board working through the State agency, may
terminate the eligibility of such provider.
‘‘(B) FACTORS.—In establishing the per-
formance criteria described under subparagraph
(A)(i), the Governor shall—
‘‘(i) solicit and take into consideration
the recommendations of local workforce de-
velopment boards and providers of training
services within the State; and
‘‘(ii) take into consideration—
‘‘(I) the specific economic, geo-
graphic, and demographic factors in
the local areas in which eligible pro-
viders are located; and
‘‘(II) the characteristics of the
populations served by the eligible pro-
viders, including the demonstrated dif-
ficulties in serving such populations,
where applicable.
‘‘(4) ELIGIBILITY
UNDER
THE
HIGHER
EDU-
CATION ACT OF 1965.—If the designated State agen-
cy determines that the eligibility of an eligible pro-
vider described in subsection (a)(2) under title IV of
the Higher Education Act of 1965 has been termi-
nated, the agency—
‘‘(A) shall terminate the automatic eligi-
bility of the provider under subsection (a)(2);
and
‘‘(B) shall require the provider to meet the
requirements of subsection (a)(3) to be eligible
to receive funds as described in subsection (a).
‘‘(5) REPAYMENT.—A provider whose eligibility
is terminated under paragraph (1) or (2) for a pro-
gram shall be liable for repayment of all funds de-
scribed in subsection (a) received for the program
during any period of noncompliance described in
such paragraph.
‘‘(6) APPEAL.—The Governor shall establish a
procedure for an eligible provider to appeal a deter-
mination by the local board or the designated state
agency that results in the denial or termination of
eligibility under this subsection. Such procedure
shall provide an opportunity for a hearing and pre-
scribe appropriate time limits to ensure prompt reso-
lution of the appeal.
‘‘(7) CONSTRUCTION.—This subsection shall be
construed to supplement, but not supplant, other
civil and criminal remedies and penalties.
‘‘(e) ON-THE-JOB TRAINING EXCEPTION.—
‘‘(1) IN
GENERAL.—Providers of on-the-job
training, and apprenticeship programs registered in
accordance with the National Apprenticeship Act,
shall not be subject to the requirements of sub-
section (a), (b), (c), or (d).
‘‘(2) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—A full-service eligible provider in a
local workforce development area shall collect such
performance information from on-the-job training
providers as the Governor may require, and dissemi-
nate such information through the delivery of core
services described in section 123, as appropriate.’’.
Subtitle C—Program and Fiscal
Provisions
CHAPTER 1—GENERAL PROVISIONS
SEC. 121. GENERAL PROGRAM REQUIREMENTS.
(a) EMPLOYMENT AND TRAINING OPPORTUNITIES.—
Section 141(a) of the Job Training Partnership Act (29
U.S.C. 1551(a)) is amended—
(1) by striking ‘‘and shall make efforts’’ and all
that follows and inserting a period; and
(2) by adding at the end the following: ‘‘In ad-
dition, efforts shall be made to develop programs
which contribute to occupational development, up-
ward mobility, development of new careers, and over-
(ii) by striking ‘‘section 104’’ and in-
serting ‘‘section 122(d)(1)’’.
(e) PROHIBITION ON CERTAIN VOTES.—Subsection
(f) of section 141 of such Act (29 U.S.C. 1551(f)) is here-
by repealed.
(f) PAYMENTS
TO EMPLOYERS
FOR ON-THE-JOB
TRAINING.—Section 141(g) of such Act (29 U.S.C.
1551(g)) is amended—
(1) by striking paragraphs (1) through (3); and
(2) in paragraph (4)—
(A) by striking ‘‘(4)’’;
(B) by striking ‘‘In accordance with regu-
lations issued by the Secretary, on-the-job
training contracts’’ and inserting ‘‘On-the-job
training contracts’’; and
(C) by striking ‘‘with wages and employ-
ment benefits’’ and all that follows and insert-
ing a period.
(g) DUPLICATE FACILITIES OR SERVICES.—Section
141(h) of such Act (29 U.S.C. 1551(h)) is amended to
read as follows:
‘‘(h)(1) Upon the approval of the Governor, real prop-
erty in which, as of July 1, 1998, equity has resulted from
funds provided under title III of the Social Security Act,
section 903(c) of such Act (commonly referred to as the
‘Reed Act’), or the Wagner-Peyser Act (29 U.S.C. 49 et
seq.) may be used for the purposes of a full service employ-
ment and training delivery center.
‘‘(2) Unless otherwise provided in a plan approved
pursuant to section 101, subsequent to the commencement
of the use of the property described in paragraph (1) for
the purposes of a full service employment and training de-
livery center, funds provided under the provisions of law
described in paragraph (1) may only be used to acquire
further equity in such property, or to pay operating and
maintenance expenses relating to such property in propor-
tion to the extent of the use of such property attributable
to the activities authorized under such provisions of law.’’.
(h) RESPONSIBILITIES OF ADMINISTRATIVE ENTI-
TIES.—Section 141(i) of such Act (29 U.S.C. 1551(i)) is
hereby repealed.
(i) PROHIBITION ON CERTAIN SUBSIDIZED EMPLOY-
MENT.—Section 141(k) of such Act (29 U.S.C. 1551(k))
is hereby repealed.
(j) CONSULTATION REQUIREMENTS.—Section 141(n)
of such Act (29 U.S.C. 1551(n)) is amended—
(1) by striking ‘‘private industry councils’’ each
place it appears and inserting ‘‘local workforce devel-
opment boards’’;
(2) by striking ‘‘councils’’ and inserting
‘‘boards’’;
(3) by striking ‘‘service delivery area’’ each
place it appears and inserting ‘‘local workforce devel-
opment area’’; and
(4) by striking ‘‘this Act’’ each place it appears
and inserting ‘‘title II or title III’’.
(k) PROHIBITION ON USE OF FUNDS FOR PUBLIC
SERVICE EMPLOYMENT.—Section 141(p) of such Act (29
U.S.C. 1551(p)) is amended—
(1) by striking ‘‘part B of this title or part A
or C of title II’’ and inserting ‘‘this Act’’; and
(2) by inserting at the end before the period the
following: ‘‘except as specifically authorized under
this Act’’.
(l) PROHIBITION ON USE OF FUNDS FOR CERTAIN
ECONOMIC ACTIVITIES.—Section 141(q) of such Act (29
U.S.C. 1551(p)) is amended in the first sentence by in-
serting at the end before the period the following: ‘‘which
are not directly related to training or related services for
eligible individuals under this Act’’.
(m) PRIORITY FOR EXCESS PROPERTY OF THE DE-
PARTMENT OF DEFENSE.—Section 141(s) of such Act (29
U.S.C. 1551(s)) is hereby repealed.
(n) PROHIBITION ON ENTITLEMENT TO SERVICE.—
Section 141 of such Act (29 U.S.C. 1551) is amended by
adding at the end the following:
‘‘(s) PROHIBITION ON ENTITLEMENT TO SERVICE.—
Nothing in this Act shall be construed to provide an indi-
vidual with an entitlement to a service under this Act.
‘‘(t) FEE FOR SERVICE AUTHORITY.—Services, facili-
ties, and equipment funded under titles II and III may
be used, as appropriate, on a fee for service basis, by em-
ployers in a local workforce development area in order to
provide employment and training services to incumbent
workers—
‘‘(1) when such services, facilities, or equipment
are not in use for the provision of services for eligi-
ble program participants under title II or title III,
respectively;
‘‘(2) if such use would not have an adverse af-
fect on the provision of services to eligible program
participants under title II or title III, respectively;
and
‘‘(3) if the income derived from such fees is
used to carry out the programs authorized under
title II or title III, respectively.’’.
SEC. 122. BENEFITS.
Section 142(a) of the Job Training Partnership Act
(29 U.S.C. 1552(a)) is amended—
(1) by striking all that precedes paragraph (4)
and inserting the following:
‘‘(a) WAGES.—
‘‘(1) IN
GENERAL.—Individuals in on-the-job
training or individuals employed in activities under
this Act shall be compensated at the same rates, in-
cluding periodic increases, as trainees or employees
who are similarly situated in similar occupations by
the same employer and who have similar training,
experience and skills, and such rates shall be in ac-
cordance with applicable law, but in no event less
than the higher of the rate specified in section
6(a)(1) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(1)) or the applicable State or
local minimum wage law.’’; and
(2) by redesignating paragraph (4) as para-
graph (2).
SEC. 123. LABOR STANDARDS.
Section 143 of the Job Training Partnership Act (29
U.S.C. 1553) is amended to read as follows:
‘‘SEC. 143. LABOR STANDARDS.
‘‘(a) LIMITATIONS
ON ACTIVITIES THAT IMPACT
WAGES OF EMPLOYEES.—No funds provided under this
title shall be used to pay the wages of incumbent employ-
ees during their participation in economic development ac-
tivities provided through the statewide system.
‘‘(b) DISPLACEMENT.—
‘‘(1) PROHIBITION.—A participant in an activ-
ity authorized under title II, III, or IV of this Act
(referred to in this section as a ‘specified activity’)
shall not displace (including a partial displacement,
such as a reduction in the hours of nonovertime
work, wages, or employment benefits) any currently
employed employee (as of the date of the participa-
tion).
‘‘(2) PROHIBITION
ON
IMPAIRMENT
OF
CON-
TRACTS.—A specified activity shall not impair an ex-
isting contract for services or collective bargaining
agreement, and no such activity that would be incon-
sistent with the terms of a collective bargaining
agreement shall be undertaken without the written
concurrence of the labor organization and employer
concerned.
‘‘(c) OTHER PROHIBITIONS.—A participant in a
specified activity shall not be employed in a job—
‘‘(1) when any other individual is on layoff from
the same or any substantially equivalent job;
‘‘(2) when the employer has terminated the em-
ployment of any regular employee or otherwise re-
duced the workforce of the employer with the inten-
tion of filling the vacancy so created with the partic-
ipant; or
‘‘(3) which is created in a promotional line that
will infringe in any way upon the promotional oppor-
tunities of currently employed individuals.
‘‘(d) HEALTH
AND SAFETY.—Health and safety
standards established under Federal and State law other-
wise applicable to working conditions of employees shall
be equally applicable to working conditions of participants
engaged in specified activities. To the extent that a State
workers’ compensation law applies, workers’ compensation
shall be provided to participants on the same basis as the
compensation is provided to other individuals in the State
in similar employment.
‘‘(e) EMPLOYMENT CONDITIONS.—Individuals in on-
the-job training or individuals employed in activities under
this Act, shall be provided benefits and working conditions
at the same level and to the same extent as other trainees
or employees working a similar length of time and doing
the same type of work.
‘‘(f) OPPORTUNITY TO SUBMIT COMMENTS.—Inter-
ested parties shall be provided an opportunity to submit
comments with respect to training programs proposed to
be funded under this Act.’’.
SEC. 124. GRIEVANCE PROCEDURE.
Section 144 of the Job Training Partnership Act (29
U.S.C. 1554) is amended to read as follows:
‘‘SEC. 144. GRIEVANCE PROCEDURE.
‘‘(a) IN GENERAL.—Each State receiving an allot-
ment under this Act shall establish and maintain a proce-
dure for grievances or complaints alleging violations of the
requirements of this Act from participants and other in-
terested or affected parties. Such procedure shall include
an opportunity for a hearing and be completed within 60
days of filing the complaint.
‘‘(b) INVESTIGATION.—
‘‘(1) IN GENERAL.—The Secretary shall inves-
tigate an allegation of a violation described in sub-
section (a) if—
‘‘(A) a decision relating to such violation
has not been reached within 60 days after the
date of the filing of the grievance or complaint
and either party appeals to the Secretary; or
‘‘(B) a decision relating to such violation
has been reached within such 60 days and the
party to which such decision is adverse appeals
such decision to the Secretary.
‘‘(2) ADDITIONAL
REQUIREMENT.—The Sec-
retary shall make a final determination relating to
an appeal made under paragraph (1) no later than
120 days after receiving such appeal.
‘‘(c) REMEDIES.—Remedies shall be limited—
‘‘(1) to suspension or termination of payments
under this Act;
‘‘(2) to prohibition of placement of a partici-
pant with an employer that has violated any require-
ments under this Act;
‘‘(3) where applicable, to reinstatement of an
employee, payment of lost wages and benefits, and
reestablishment of other relevant terms, conditions
and privileges of employment; and
‘‘(4) where appropriate, to other equitable re-
lief.’’.
SEC. 125. IDENTIFICATION OF ADDITIONAL IMPOSED RE-
QUIREMENTS.
Section 124 of the Job Training Partnership Act (29
U.S.C. 1534) is amended—
(1) by redesignating such section as section 146
of such Act; and
(2) by inserting such section after section 145
of such Act.
SEC. 126. AUTHORITY OF STATE LEGISLATURE.
Section 126 of the Job Training Partnership Act (29
U.S.C. 1536) is amended—
(1) by adding at the end ‘‘Any funds received
by a State under title II or III of this Act shall be
subject to appropriation by the State legislature,
consistent with the terms and conditions required
under this Act.’’;
(2) by redesignating such section as section 147
of such Act; and
(3) by inserting such section after section 146
of such Act, as amended by this Act.
SEC. 127. INTERSTATE AGREEMENTS.
Section 127 of the Job Training Partnership Act (29
U.S.C. 1537) is amended—
(1) by redesignating such section as section 148
of such Act; and
(2) by inserting such section after section 147
of such Act, as amended by this Act.
CHAPTER 2—PERFORMANCE
ACCOUNTABILITY PROVISIONS
SEC. 131. PERFORMANCE ACCOUNTABILITY PROVISIONS.
The Job Training Partnership Act (29 U.S.C. 1501
et seq.) is amended by inserting after part C of title I
of such Act the following:
‘‘SEC. 151. PERFORMANCE ACCOUNTABILITY SYSTEM.
‘‘In order to promote high levels of performance and
to ensure an appropriate return on the Nation’s invest-
ment in employment, training, and literacy programs, each
State receiving funds under this Act or the Adult Edu-
cation and Family Literacy Act shall implement a state-
wide performance accountability system that meets the re-
quirements of this subpart.
‘‘SEC. 152. INDICATORS OF PERFORMANCE.
‘‘(a) STATE BENCHMARKS.—
‘‘(1) IN GENERAL.—Each State receiving funds
under this Act shall identify indicators and related
levels of performance (hereinafter referred to as
‘State benchmarks’), for each of the programs estab-
lished under titles II, III, and V of this Act, to be
used to measure the State’s progress in meeting the
State long-term goals described in the State plan
under section 101. Such State benchmarks shall, at
a minimum—
‘‘(A) include the core indicators of per-
formance described in section 154;
‘‘(B) be expressed in an objective, quantifi-
able, and measurable form; and
‘‘(C) show the progress of the State to con-
tinuously improve in performance over the 3-
year period covered by the State plan.
‘‘(2) CUSTOMER
SATISFACTION.—Such State
benchmarks may also include post-program surveys
and other measures of customer satisfaction of both
employers and program participants.
‘‘(b) TECHNICAL DEFINITIONS
OF CORE INDICA-
TORS.—In order to ensure nationwide comparability of
performance data, the Secretary of Labor and the Sec-
retary of Education, in collaboration with the States, local-
ities, representatives of business and industry, employees,
employment and training service providers, State directors
of adult education, providers of adult education and lit-
eracy services, individuals with expertise in serving the
employment and training needs of disadvantaged youth,
participants, parents and other interested parties with ex-
pertise in the provision of employment, training, literacy,
and related services, shall promulgate definitions of each
of the core indicators of performance described in section
154, with the exception of the indicators described under
subsections (a)(6), (b)(1), (b)(5), (c)(1), and (c)(5) of
such section, to be used under this Act in measuring per-
formance.
‘‘SEC. 153. STATE ADJUSTED BENCHMARKS.
‘‘(a) AGREEMENT.—
‘‘(1) IN GENERAL.—In order to ensure an ade-
quate return on the investment of Federal funds in
employment, training, and literacy programs author-
ized under this Act and the Adult Education and
Family Literacy Act, the appropriate Secretary and
each State shall reach agreement on the levels of
performance expected to be achieved by such State
based upon the State’s benchmarks established pur-
suant to section 152(a)(1) (hereinafter referred to as
the ‘State adjusted benchmarks’), for the core indi-
cators of performance described in section 154 (ex-
cept for the indicators described under subsections
(a)(6), (b)(1), (b)(5), (c)(1), and (c)(5) of such sec-
tion). Such agreement shall take into account—
‘‘(A) whether the levels will enable each
State to attain the State goals;
‘‘(B) how the levels compare with the levels
established by other States, taking into consid-
eration the specific circumstances, including
economic circumstances, of each State;
‘‘(C) how the levels compare with the
model levels of performance identified pursuant
to subsection (c); and
‘‘(D) the extent to which such levels dem-
onstrate continuous improvement in perform-
ance by such State and ensure an adequate re-
turn on the investment of Federal funds.
‘‘(2) AUTHORITY
OF
GOVERNOR.—The Gov-
ernor of a State is authorized to enter into the
agreement described in paragraph (1) for programs
authorized under titles II and III.
‘‘(3) AUTHORITY
OF
ELIGIBLE
STATE
AGEN-
CY.—The eligible State agency for adult education
and literacy programs is authorized to enter into the
agreement described in paragraph (1) for programs
authorized under the Adult Education and Family
Literacy Act.
‘‘(b) LOCAL BENCHMARKS FOR EMPLOYMENT AND
TRAINING PROGRAMS.—Based on the expected levels of
performance established pursuant to subsection (a), each
State shall negotiate with the local workforce development
board and the chief local elected official in each local
workforce development area (consistent with section
122(d)(6)(A)) the levels of performance for each indicator
that are expected for such local workforce development
areas. Such levels of performance shall be known as ‘local
benchmarks’.
‘‘(c) MODEL LEVELS OF PERFORMANCE.—In order
to encourage high levels of performance and advance the
Nation’s competitiveness, the Secretary of Labor and the
Secretary of Education, in collaboration with the States,
localities, and with representatives of business and indus-
try, employees, employment and training service providers,
State directors of adult education, providers of adult edu-
cation and literacy services, individuals with expertise in
serving the employment and training needs of disadvan-
taged youth, participants, parents and other interested
parties with expertise in the provision of employment,
training, literacy, and related services, shall identify chal-
lenging model levels of performance (hereinafter referred
to as ‘model levels of performance’) with respect to the
core indicators of performance described in section 154,
with the exception of the indicators described under sub-
sections (a)(6), (b)(1), (b)(5), (c)(1), and (c)(5).
‘‘SEC. 154. CORE INDICATORS OF PERFORMANCE.
‘‘(a) CORE INDICATORS FOR ADULT EMPLOYMENT
AND TRAINING PROGRAMS.—The common core indicators
of performance for programs authorized under title III of
this Act shall include measures of—
‘‘(1) placement in unsubsidized employment;
‘‘(2) retention in unsubsidized employment for
not less than 6 months and for not less than 12
months, respectively;
‘‘(3) increases in earnings or in earnings in
combination with employer-assisted benefits;
‘‘(4) reductions in welfare dependency;
‘‘(5) attainment of industry-recognized occupa-
tional skills;
‘‘(6) attainment of a high school diploma or a
general equivalency diploma; and
‘‘(7) such other measures of performance as the
State may wish to collect.
‘‘(b) CORE INDICATORS FOR ADULT EDUCATION AND
LITERACY PROGRAMS.—The core indicators of perform-
ance for programs conducted under the Adult Education
and Family Literacy Act shall include measures of—
‘‘(1) achievement in the areas of reading, writ-
ing, English language acquisition, problem solving,
numeracy, and other literacy skills;
‘‘(2) receipt of a high school diploma or a gen-
eral equivalency diploma;
‘‘(3) entry into a postsecondary school, job re-
training program, employment, or career advance-
ment;
‘‘(4) attainment of the literacy skills and knowl-
edge individuals need to be productive and respon-
sible citizens and to become more actively involved in
the education of their children; and
‘‘(5) such other measures of performance as the
State may wish to collect.
‘‘(c) 
CORE
INDICATORS
FOR
DISADVANTAGED
YOUTH.—The core indicators of performance for pro-
grams conducted under title II shall include measures of—
‘‘(1) attainment of challenging State academic
proficiencies;
‘‘(2) attainment of secondary school diplomas
or general equivalency diplomas;
‘‘(3) attainment of industry-recognized work
readiness and occupational skills;
‘‘(4) placement in, retention in, and completion
of postsecondary education or advanced training, or
placement and retention in military service, employ-
ment, or qualified apprenticeships; and
‘‘(5) such other measures of performance as the
State may wish to collect.
‘‘(d) POPULATION INDICATORS.—
‘‘(1) ADULT EMPLOYMENT AND TRAINING PRO-
GRAMS.—The core indicators of performance for
programs conducted under title III, as provided
under subsection (a), shall include measures of the
success of individuals with multiple barriers to em-
ployment, including economically disadvantaged indi-
viduals (including welfare recipients), displaced
homemakers, older workers, and other individuals as
determined by the State.
‘‘(2) ADULT EDUCATION AND LITERACY PRO-
GRAMS.—The core indicators of performance for
programs conducted under the Adult Education and
Family Literacy Act, as provided under subsections
(a) and (b), shall include measures of the success of
economically disadvantaged individuals, individuals
with limited literacy (as determined by the eligible
agency), and other individuals as determined by the
eligible agency.
‘‘(3) DISADVANTAGED YOUTH PROGRAMS.—The
core indicators of performance for programs con-
ducted under title II, as provided under subsection
(c), shall include measures of the success of hard to
serve youth, including individuals who are school
dropouts or whose educational attainment is one or
more grade levels below the grade level appropriate
to the age of the individual, and other individuals as
determined by the State.
‘‘SEC. 155. REPORT ON PERFORMANCE.
‘‘(a) REPORT.—
‘‘(1) IN GENERAL.—Each State that receives
funds under titles II and III of this Act and the
Adult Education and Family Literacy Act shall an-
nually prepare and submit to the Secretary of Labor
and the Secretary of Education (for consideration by
the appropriate Secretary) a report on the levels of
performance achieved by the State with respect to
the State adjusted benchmarks identified pursuant
to section 153(a), and by each local workforce devel-
opment area with respect to the local benchmarks
identified pursuant to section 153(b) for programs
authorized under title II and title III for each pro-
gram year.
‘‘(2) ADDITIONAL INFORMATION.—In preparing
such report, the State may include—
‘‘(A) information on such additional bench-
marks as the State may establish to meet the
State goals; and
‘‘(B) comments assessing the process used
for reaching agreement on the State adjusted
benchmarks pursuant to section 153(a) and
may 
also 
include 
comments 
from 
local
workforce development areas assessing the proc-
ess for negotiating local benchmarks pursuant
to section 153(b).
‘‘(b) INFORMATION DISSEMINATION.—The Secretary
of Labor and the Secretary of Education—
‘‘(1) shall make the information contained in
such reports available to the general public through
publication and other appropriate methods;
‘‘(2) shall disseminate State-by-State compari-
sons of the information; and
‘‘(3) shall provide the appropriate congressional
committees with copies of such reports.
‘‘SEC. 156. INCENTIVE GRANTS AND SANCTIONS.
‘‘(a) INCENTIVE GRANTS.—
‘‘(1) AWARD OF GRANTS.—From amounts made
available under section 452 and section 502 for any
fiscal year, the appropriate Secretary may award in-
centive grants to States that—
‘‘(A) exceed, during the most recent 12-
month period for which data are available, the
adjusted State benchmarks described under sec-
tion 153(a);
‘‘(B) demonstrate continuing progress to-
ward exceeding, during the 3-year period cov-
ered by the State plan submitted under section
101, the adjusted State benchmarks described
under section 153(a); or
‘‘(C) demonstrate significant progress in
the coordination and integration of employment,
training, literacy, and other human resource
and workforce preparation programs within the
State, and demonstrate high performance in
such programs.
‘‘(2) TECHNICAL ASSISTANCE.—The Secretary,
upon request, shall provide technical assistance to
any State that does not qualify for receipt of an in-
centive grant under paragraph (1).
‘‘(3) USE OF FUNDS.—A State that receives an
incentive grant under paragraph (1) may use funds
made available under such grant only to carry out
employment, training, or literacy activities.
‘‘(b) SANCTIONS.—
‘‘(1) STATES.—
‘‘(A) TECHNICAL ASSISTANCE.—If a State
fails to meet expected levels of performance for
a program for any program year as established
pursuant to section 153(a), the Secretary of
Labor for programs established under title II
and title III, or the Secretary of Education for
programs established under the Adult Edu-
cation and Family Literacy Act, shall, upon re-
quest, provide technical assistance, including as-
sistance in the development of a performance
improvement plan.
‘‘(B) 
REDUCTION
IN
AMOUNT
OF
GRANT.—If such failure continues for a second
consecutive year, the appropriate Secretary may
reduce by not more than 5 percent, the amount
of the grant that would (in the absence of this
paragraph) be payable to the State under such
program for the immediately succeeding pro-
gram year. Such penalty shall be based on the
degree of failure to meet adjusted levels of per-
formance.
‘‘(2) LOCAL AREAS.—
‘‘(A) TECHNICAL ASSISTANCE.—If a local
workforce development area, or other applicable
local administrative entity, fails to meet ex-
pected levels of performance for a program for
any program year under section 153(b), the
Governor, or upon request by the Governor, the
Secretary, shall provide technical assistance,
which may include the development of a per-
formance improvement plan, or the development
of a modified local plan.
‘‘(B) CORRECTIVE ACTIONS.—
‘‘(i) IN
GENERAL.—If such failure
continues for a second consecutive year,
the Governor shall take corrective actions,
which may include development of a reor-
ganization plan through which the Gov-
ernor may require the appointment of a
new local board (consistent with the cri-
teria established under section 122(b)),
prohibit the use of designated service pro-
viders, require the redesignation of a local
administrative entity (in such case chosen
jointly by the Governor and the chief elect-
ed official in the local workforce develop-
ment area), or such other actions as the
Governor determines are appropriate, con-
sistent with State law, and the require-
ments of this subparagraph.
‘‘(ii) APPEAL BY WORKFORCE DEVEL-
OPMENT AREA.—
‘‘(I) APPEAL TO GOVERNOR.—A
workforce development area that is
subject to a reorganization plan under
clause (i) may, not later than 30 days
after receiving notice thereof, appeal
to the Governor to rescind or revise
such plan. In such case, the Governor
shall make a final decision not later
then 30 days after the receipt of the
appeal.
‘‘(II) SUBSEQUENT
ACTION.—A
local workforce development area may,
not later than 30 days after receiving
a decision from the Governor pursu-
ant to subclause (I), appeal such deci-
sion to the Secretary. In such case the
Secretary shall make a final decision
not later than 30 days after the re-
ceipt of the appeal.
‘‘(iii) EFFECTIVE
DATE.— The ac-
tions take by the Governor under subclause
(I) shall become effective at the time the
Governor issues a decision pursuant to
such subclause. Such action shall remain
effective unless the Secretary rescinds or
revises such plan pursuant to subclause
(II).’’.
CHAPTER 3—OTHER PROVISIONS
SEC. 141. PROMPT ALLOCATION OF FUNDS.
Section 162 of the Job Training Partnership Act (29
U.S.C. 1572) is amended—
(1) in the second sentence of subsection (a), by
striking ‘‘1980 Census or later data’’ and inserting
‘‘the most recent satisfactory data from the Bureau
of the Census’’; and
(2) by striking subsection (f).
SEC. 142. FISCAL CONTROLS; SANCTIONS.
(a) ESTABLISHMENT
OF
FISCAL
CONTROLS
BY
STATES.—Section 164(a) of the Job Training Partnership
Act (29 U.S.C. 1574(a)) is amended—
(1) in paragraph (2)—
(A) in the first sentence of the matter pre-
ceding subparagraph (A), before the period at
the end insert the following: ‘‘, consistent with
appropriate circulars of the Office of Manage-
ment and Budget’’; and
(B) in subparagraph (C), by striking ‘‘ex-
cept as specifically provided by this Act’’ and
inserting ‘‘, and procurement transactions be-
tween workforce development boards and such
governments shall be conducted only on a cost-
reimbursable basis’’;
(2) in paragraph (3)—
(A) by inserting before the second comma
in the first sentence ‘‘consistent with appro-
priate circulars of the Office of Management
and Budget’’; and
(B) by striking the second sentence and all
that follows;
(3) in paragraph (4), by striking ‘‘service deliv-
ery 
area 
and 
substate 
area’’ 
and 
inserting
‘‘workforce development area’’;
(4) in paragraph (5), by striking ‘‘service deliv-
ery area or substate area’’ and inserting ‘‘workforce
development area’’;
(5) in paragraph (6)(B), by striking ‘‘substate
areas and service delivery areas’’ and inserting
‘‘workforce development areas’’; and
(6) by striking paragraph (8).
(b) SANCTIONS.—Section 164(b) of such Act (29
U.S.C. 1574(b)) is amended—
(1) in paragraph (1)—
(A) in the matter preceding subparagraph
(A)—
(i) by striking ‘‘provision of’’ and in-
serting ‘‘requirement under’’; and
(ii) by striking ‘‘or the regulations
under this Act’’;
(B) in subparagraph (A), by inserting
‘‘local’’ before ‘‘plan’’; and
(C) in subparagraph (B)—
(i) in clause (i), by striking ‘‘private
industry council’’ and inserting ‘‘workforce
development board’’;
(ii) in clause (iii), by striking ‘‘service
delivery’’ and inserting ‘‘workforce develop-
ment’’; and
(iii) in clause (iv), by striking ‘‘service
delivery’’ each place it appears and insert-
ing ‘‘workforce development’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) in the matter preceding clause
(i)—
(I) 
by 
striking 
‘‘paragraph
(1)(A)’’ and inserting ‘‘subparagraphs
(A) and (B) of paragraph (1)’’; and
(II) by striking ‘‘under the same
terms and conditions as the dis-
approval of the plan’’; and
(ii) in clause (i), by inserting ‘‘the’’
before ‘‘appeal’’; and
(B) in subparagraph (B)—
(i) by striking ‘‘The actions’’ and all
that follows through ‘‘, who’’ and inserting
‘‘The Secretary’’; and
(ii) by striking ‘‘60’’ and inserting
‘‘45’’.
(c) EVALUATION
BY COMPTROLLER GENERAL
OF
THE UNITED STATES.—Subsection (c) of section 164 of
such Act (29 U.S.C. 1574(c)) is hereby repealed.
100
(d) REPAYMENT
OF MISEXPENDITURES
TO
THE
UNITED STATES.—Subsection (d) of section 164 of such
Act (29 U.S.C. 1574(d)) is amended to read as follows:
‘‘(d) REPAYMENT OF CERTAIN AMOUNTS TO THE
UNITED STATES.—
‘‘(1) IN
GENERAL.—Every recipient of funds
under titles II and III of this Act shall repay to the
United States amounts found not to have been ex-
pended in accordance with this Act.
‘‘(2) OFFSET OF REPAYMENT.—If the Secretary
determines that a State has expended funds made
available under this Act in a manner contrary to the
requirements of this Act, the Secretary may offset
repayment of such expenditures against any other
amount to which the State is or may be entitled, ex-
cept as provided under subsection (e)(1).
‘‘(3) 
REPAYMENT
FROM
DEDUCTION
BY
STATE.—If the Secretary requires a State to repay
funds as a result of a determination that a local re-
cipient or a subgrantee of such recipient in a local
workforce development area of the State has ex-
pended funds contrary to the requirements of this
Act, the Governor of the State may use an amount
deducted under paragraph (4) to repay the funds,
except as provided under subsection (e)(1).
101
‘‘(4) DEDUCTION
BY
STATE.—The Governor
may deduct an amount equal to the misexpenditure
described in paragraph (3) from subsequent pro-
gram year allocations to the local workforce develop-
ment area from funds reserved for the administra-
tive costs of such local programs under title II or
title III, as appropriate.
‘‘(5) LIMITATIONS.—A deduction made by a
State as described under paragraph (4) shall not be
made until such time as the Governor has taken ap-
propriate corrective action to ensure full compliance
within such local workforce development area with
regard to appropriate expenditures of funds under
this Act.’’.
(e) REPAYMENT
OF CERTAIN AMOUNTS
TO
THE
UNITED STATES.—Subsection (e) of section 164 of such
Act (29 U.S.C. 1574(e)) is amended—
(1) in paragraph (1)—
(A) in the first sentence—
(i) by inserting ‘‘by the Secretary’’
after ‘‘upon a determination’’;
(ii) by striking ‘‘or failure’’ and in-
serting ‘‘failure’’; and
(iii) by inserting before the period at
the end the following: ‘‘, or a pattern of
102
failure with respect to paragraphs (2) and
(3) of subsection (d)’’; and
(B) in the second sentence—
(i) by inserting ‘‘under this subsection
or subsection (d)’’ after ‘‘shall be made’’;
and
(ii) by inserting before the period at
the end the following: ‘‘has been given to
the recipient’’; and
(2) in paragraph (3), by striking the second
sentence.
(f) REMEDIES CONSTRUED
AS EXCLUSIVE REM-
EDIES.—Subsection (h) of section 164 of such Act (29
U.S.C. 1574(h)) is hereby repealed.
SEC. 143. REPORTS; RECORDKEEPING; INVESTIGATIONS.
Section 165 of the Job Training Partnership Act (29
U.S.C. 1575) is amended—
(1) in subsection (d)(1)(C)—
(A) by striking the comma after ‘‘occupa-
tions’’; and
(B) by striking the semicolon at the end
and inserting ‘‘and placement for participants
in nontraditional employment;’’; and
(2) by striking subsection (h).
103
SEC. 144. ADMINISTRATIVE ADJUDICATION.
Section 166(a) of the Job Training Partnership Act
(29 U.S.C. 1576(a)) is amended by striking the last sen-
tence.
SEC. 145. NONDISCRIMINATION.
Section 167 of the Job Training Partnership Act (29
U.S.C. 1577) is amended to read as follows:
‘‘SEC. 167. NONDISCRIMINATION.
‘‘(a) IN GENERAL.—
‘‘(1) FEDERAL
FINANCIAL
ASSISTANCE.—For
the purpose of applying the prohibitions against dis-
crimination on the basis of age under the Age Dis-
crimination Act of 1975 (42 U.S.C. 6101 et seq.),
on the basis of disability under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), on the
basis of sex under title IX of the Education Amend-
ments of 1972 (20 U.S.C. 1681 et seq.), or on the
basis of race, color, or national origin under title VI
of the Civil Rights Act of 1964 (42 U.S.C. 2000d
et seq.), programs and activities funded or otherwise
financially assisted in whole or in part under this
Act are considered to be programs and activities re-
ceiving Federal financial assistance.
‘‘(2) NONDISCRIMINATION.—No individual shall
be excluded from participation in, denied the bene-
fits of, subjected to discrimination under, or denied
104
employment in the administration of or in connec-
tion with any such program or activity because of
race, color, religion, sex, national origin, age, politi-
cal affiliation or belief, or status as a qualified indi-
vidual with a disability or as a participant of such
program or activity.
‘‘(b) SECRETARIAL AUTHORITY.—Whenever the Sec-
retary finds that a State or other recipient has failed to
comply with a provision of this section, or with an applica-
ble regulation prescribed to carry out this section, the Sec-
retary shall notify such State or recipient and seek compli-
ance through the processes of conciliation, mediation or
persuasion, as appropriate. If within a reasonable time the
State or recipient fails or refuses to comply, the Secretary
may—
‘‘(1) refer the matter to the Attorney General
with a recommendation for appropriate action; or
‘‘(2) take such other action as may be provided
by law.
‘‘(c) AUTHORITY OF ATTORNEY GENERAL.—When a
matter is referred to the Attorney General pursuant to
subsection (b)(1), the Attorney General may bring a civil
action in any appropriate district court of the United
States for such relief as may be appropriate, including in-
junctive relief.
105
‘‘(d) JOB CORPS.—For the purposes of this section,
Job Corps members shall be considered as the ultimate
beneficiaries of Federal financial assistance.
‘‘(e) REGULATIONS.—The Secretary shall issue regu-
lations necessary to implement this section not later than
one year after the date of the enactment of the Employ-
ment, Training, and Literacy Enhancement Act of 1997.
Such regulations shall adopt standards for determining
discrimination and procedures for enforcement that are
consistent with the Acts referred to in a subsection (a)(1),
as well as procedures to ensure that complaints filed under
this section and such Acts are processed in a manner that
avoids duplication of effort.’’.
SEC. 146. JUDICIAL REVIEW.
Section 168 of the Job Training Partnership Act (29
U.S.C. 1578) is hereby repealed.
SEC. 147. ADMINISTRATIVE PROVISIONS.
Section 169 of the Job Training Partnership Act (29
U.S.C. 1579) is amended—
(1) in the first sentence of subsection (a), by
striking ‘‘such rules and regulations’’ and all that
follows and inserting ‘‘rules and regulations only to
the extent necessary to administer and ensure com-
pliance with the specific requirements of this Act.’’;
and
106
(2) by striking subsection (e) and inserting the
following:
‘‘(e) WAIVERS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, the Secretary of Labor may
waive—
‘‘(A) any of the statutory or regulatory re-
quirements of this title and titles II and III of
this Act (except for requirements relating to
wage and labor standards, worker rights, par-
ticipation and protection, grievance procedures
and judicial review, nondiscrimination, alloca-
tion of funds to local areas, eligibility, review
and approval of plans, the establishment and
functions of workforce development areas and
workforce development boards, and the basic
purposes of the Act); and
‘‘(B) any of the statutory or regulatory re-
quirements of sections 8 through 10 of the
Wagner-Peyser Act (29 U.S.C. 49g through
49i) (except for requirements relating to the
provision of services to unemployment insurance
claimants and veterans and to universal access
to basic labor exchange services without cost to
job seekers), pursuant to a request submitted
107
by a State which meets the requirements of
paragraph (2).
‘‘(2) REQUESTS.—A State requesting a waiver
under paragraph (1) shall submit a plan to the Sec-
retary to improve the workforce development system
which—
‘‘(A) identifies the statutory or regulatory
requirements that are requested to be waived
and the goals which the State or local workforce
development areas intend to achieve;
‘‘(B) describes the actions that the State
or local workforce development areas have un-
dertaken to remove State or local statutory or
regulatory barriers;
‘‘(C) describes the goals of the waiver and
the expected programmatic outcomes if the re-
quest is granted;
‘‘(D) describes the individuals impacted by
the waiver; and
‘‘(E) describes the process used to monitor
the progress in implementing a waiver, and for
which notice and an opportunity to comment on
such request has been provided to the organiza-
tions identified in section 122 (e)(2) of this Act,
if and only to the extent that the Secretary de-
108
termines that such requirements impede the
ability of the State to implement such plan to
improve the workforce development system and
the State has executed a memorandum of un-
derstanding with the Secretary requiring such
State to meet agreed-upon outcomes and imple-
ment other appropriate measures to ensure ac-
countability.’’.
SEC. 148. PRESIDENTIAL AWARDS FOR OUTSTANDING PRI-
VATE SECTOR INVOLVEMENT IN JOB TRAIN-
ING PROGRAMS.
Section 172 of the Job Training Partnership Act (29
U.S.C. 1582) is hereby repealed.
SEC. 149. CONSTRUCTION.
Section 173 of the Job Training Partnership Act (29
U.S.C. 1583) is hereby repealed.
SEC. 150. LIMITATION ON CERTAIN COSTS.
Part D of title I of the Job Training Partnership Act
(29 U.S.C. 1571 et seq.), as amended by this Act, is fur-
ther amended by adding at the end the following:
‘‘SEC. 172. LIMITATION ON CERTAIN COSTS.
‘‘(a) ADMINISTRATIVE COSTS.—
‘‘(1) IN GENERAL.—The Secretary, after con-
sultation with the Inspector General of the Depart-
ment of Labor and the Comptroller General of the
109
United States, shall develop regulations that define
‘administrative costs’ for purposes of programs
under titles II and III. Such definition shall reflect
generally accepted accounting principles.
‘‘(2) 
ADDITIONAL
REQUIREMENT.—Notwith-
standing any other provision of law, regulations is-
sued by the Secretary under paragraph (1) shall
provide procedures under which the Governor may
approve a plan for the pooling of administrative
funds, which are available in accordance with the
limitation in subsection (b)(1), if the Governor de-
termines that such plan would not jeopardize the ad-
ministration of the activities from which such funds
are to be transferred.
‘‘(b) LIMITATION.—
‘‘(1) IN GENERAL.—Of the amounts allocated
to local workforce development areas for a program
year under titles II and III, not more that 10 per-
cent of such amounts may be expended for adminis-
trative costs.
‘‘(2) DEFINITION.—For purposes of paragraph
(1), the term ‘allocated’ means allocated for a pro-
gram year, as adjusted for reallocations and reallot-
ments and for transfers of funds in accordance with
this Act.
110
‘‘SEC. 173. BUY-AMERICAN REQUIREMENTS.
‘‘(a) COMPLIANCE WITH BUY AMERICAN ACT.—
None of the funds made available in this Act may be ex-
pended by an entity unless the entity agrees that in ex-
pending the funds the entity will comply with the Buy
American Act (41 U.S.C. 10a–10c).
‘‘(b) SENSE OF CONGRESS; REQUIREMENT REGARD-
ING NOTICE.—
‘‘(1) PURCHASE
OF
AMERICAN-MADE
EQUIP-
MENT AND PRODUCTS.—In the case of any equip-
ment or product that may be authorized to be pur-
chased with financial assistance provided using
funds made available in this Act, it is the sense of
the Congress that entities receiving the assistance
should, in expending the assistance, purchase only
American-made equipment and products.
‘‘(2) NOTICE TO RECIPIENTS OF ASSISTANCE.—
In providing financial assistance using funds made
available in this Act, the head of each Federal agen-
cy shall provide to each recipient of the assistance
a notice describing the statement made in paragraph
(1) by the Congress.
‘‘(c) PROHIBITION OF CONTRACTS WITH PERSONS
FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—
If it has been finally determined by a court or Federal
agency that any person intentionally affixed a label bear-
163
adult receiving such services is willing to relo-
cate, except that a local workforce development
board may approve training in occupations de-
termined by the local board to be in sectors of
the economy which have a high potential for
sustained demand or growth in the local
workforce development area.
‘‘(d) ADDITIONAL USES OF AMOUNTS.—
‘‘(1) SUPPORTIVE
SERVICES.—Amounts allo-
cated for adults under section 313(b)(2)(B) and for
dislocated workers under section 313(b)(2)(C) may
be used to provide supportive services for adults and
dislocated workers, respectively—
‘‘(A) who are receiving assistance under
any of subsections (a) through (c); and
‘‘(B) who are unable to receive such serv-
ices through other programs providing such
services.
‘‘(2) NEEDS-RELATED PAYMENTS.—
‘‘(A) IN
GENERAL.—Amounts allocated
under section 313(b) may be used to provide
needs-related payments to adults and dislocated
workers who are unemployed and do not qualify
for (or have ceased to qualify for) unemploy-
ment compensation for the purpose of enabling
236
thorized under subsections (a) and (b) shall be provided
as part of the full service employment and training deliv-
ery system established by the State.’’.
SEC. 806. STATE PLANS.
Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g)
is amended—
(1) in subsection (a) to read as follows:
‘‘(a) Any State desiring to receive assistance under
this Act shall submit to the Secretary, as part of the State
plan submitted under section 101 of the Employment,
Training, and Literacy Enhancement Act, detailed plans
for carrying out the provisions of this Act within such
State.’’;
(2) by striking subsections (b), (c), and (e); and
(3) by redesignating subsection (d) as sub-
section (b).
SEC. 807. FEDERAL ADVISORY COUNCIL.
Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j)
is hereby repealed.
SEC. 808. REGULATIONS.
Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k)
is amended by striking ‘‘The Director, with the approval
of the Secretary of Labor,’’ and inserting ‘‘The Sec-
retary’’.