H. R. 1385—4
TITLE V—GENERAL PROVISIONS
Sec. 501. State unified plan.
Sec. 502. Definitions for indicators of performance.
Sec. 503. Incentive grants.
Sec. 504. Privacy.
Sec. 505. Buy-American requirements.
Sec. 506. Transition provisions.
Sec. 507. Effective date.
TITLE I—WORKFORCE INVESTMENT
SYSTEMS
Subtitle A—Workforce Investment
Definitions
SEC. 101. DEFINITIONS.
In this title:
(1) ADULT.—Except in sections 127 and 132, the term
‘‘adult’’ means an individual who is age 18 or older.
(2) ADULT
EDUCATION; ADULT
EDUCATION
AND
LITERACY
ACTIVITIES.—The terms ‘‘adult education’’ and ‘‘adult education
and literacy activities’’ have the meanings given the terms
in section 203.
(3) AREA VOCATIONAL EDUCATION SCHOOL.—The term ‘‘area
vocational education school’’ has the meaning given the term
in section 521 of the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2471).
(4) BASIC SKILLS DEFICIENT.—The term ‘‘basic skills defi-
cient’’ means, with respect to an individual, that the individual
has English reading, writing, or computing skills at or below
the 8th grade level on a generally accepted standardized test
or a comparable score on a criterion-referenced test.
(5) CASE
MANAGEMENT.—The term ‘‘case management’’
means the provision of a client-centered approach in the
delivery of services, designed—
(A) to prepare and coordinate comprehensive employ-
ment plans, such as service strategies, for participants
to ensure access to necessary workforce investment activi-
ties and supportive services, using, where feasible, com-
puter-based technologies; and
(B) to provide job and career counseling during
program participation and after job placement.
(6) CHIEF
ELECTED
OFFICIAL.—The term ‘‘chief elected
official’’ means—
(A) the chief elected executive officer of a unit of
general local government in a local area; and
(B) in a case in which a local area includes more
than one unit of general local government, the individuals
designated under the agreement described in section
117(c)(1)(B).
(7) COMMUNITY-BASED ORGANIZATION.—The term ‘‘commu-
nity-based organization’’ means a private nonprofit organization
that is representative of a community or a significant segment
of a community and that has demonstrated expertise and
effectiveness in the field of workforce investment.
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(8) 
CUSTOMIZED
TRAINING.—The 
term 
‘‘customized
training ’’ means training—
(A) that is designed to meet the special requirements
of an employer (including a group of employers);
(B) that is conducted with a commitment by the
employer to employ an individual on successful completion
of the training; and
(C) for which the employer pays for not less than
50 percent of the cost of the training.
(9) DISLOCATED
WORKER.—The term ‘‘dislocated worker’’
means an individual who—
(A)(i) has been terminated or laid off, or who has
received a notice of termination or layoff, from employment;
(ii)(I) is eligible for or has exhausted entitlement to
unemployment compensation; or
(II) has been employed for a duration sufficient to
demonstrate, to the appropriate entity at a one-stop center
referred to in section 134(c), attachment to the workforce,
but is not eligible for unemployment compensation due
to insufficient earnings or having performed services for
an employer that were not covered under a State unemploy-
ment compensation law; and
(iii) is unlikely to return to a previous industry or
occupation;
(B)(i) has been terminated or laid off, or has received
a notice of termination or layoff, from employment as a
result of any permanent closure of, or any substantial
layoff at, a plant, facility, or enterprise;
(ii) is employed at a facility at which the employer
has made a general announcement that such facility will
close within 180 days; or
(iii) for purposes of eligibility to receive services other
than training services described in section 134(d)(4), inten-
sive services described in section 134(d)(3), or supportive
services, is employed at a facility at which the employer
has made a general announcement that such facility will
close;
(C) was self-employed (including employment as a
farmer, a rancher, or a fisherman) but is unemployed as
a result of general economic conditions in the community
in which the individual resides or because of natural disas-
ters; or
(D) is a displaced homemaker.
(10) DISPLACED HOMEMAKER.—The term ‘‘displaced home-
maker’’ means an individual who has been providing unpaid
services to family members in the home and who—
(A) has been dependent on the income of another family
member but is no longer supported by that income; and
(B) is unemployed or underemployed and is experienc-
ing difficulty in obtaining or upgrading employment.
(11) ECONOMIC DEVELOPMENT AGENCIES.—The term ‘‘eco-
nomic development agencies’’ includes local planning and zoning
commissions or boards, community development agencies, and
other local agencies and institutions responsible for regulating,
promoting, or assisting in local economic development.
(12) ELIGIBLE
PROVIDER.—The term ‘‘eligible provider’’,
used with respect to—
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(A) training services, means a provider who is identi-
fied in accordance with section 122(e)(3);
(B) intensive services, means a provider who is identi-
fied or awarded a contract as described in section
134(d)(3)(B);
(C) youth activities, means a provider who is awarded
a grant or contract in accordance with section 123; or
(D) other workforce investment activities, means a pub-
lic or private entity selected to be responsible for such
activities, such as a one-stop operator designated or cer-
tified under section 121(d).
(13) ELIGIBLE YOUTH.—Except as provided in subtitles C
and D, the term ‘‘eligible youth’’ means an individual who—
(A) is not less than age 14 and not more than
age 21;
(B) is a low-income individual; and
(C) is an individual who is one or more of the following:
(i) Deficient in basic literacy skills.
(ii) A school dropout.
(iii) Homeless, a runaway, or a foster child.
(iv) Pregnant or a parent.
(v) An offender.
(vi) An individual who requires additional assist-
ance to complete an educational program, or to secure
and hold employment.
(14) EMPLOYMENT
AND
TRAINING
ACTIVITY.—The term
‘‘employment and training activity’’ means an activity described
in section 134 that is carried out for an adult or dislocated
worker.
(15) FAMILY.—The term ‘‘family’’ means two or more per-
sons related by blood, marriage, or decree of court, who are
living in a single residence, and are included in one or more
of the following categories:
(A) A husband, wife, and dependent children.
(B) A parent or guardian and dependent children.
(C) A husband and wife.
(16) GOVERNOR.—The term ‘‘Governor’’ means the chief
executive of a State.
(17) INDIVIDUAL WITH A DISABILITY.—
(A) IN GENERAL.—The term ‘‘individual with a disabil-
ity’’ means an individual with any disability (as defined
in section 3 of the Americans with Disabilities Act of 1990
(42 U.S.C. 12102)).
(B) 
INDIVIDUALS
WITH
DISABILITIES.—The 
term
‘‘individuals with disabilities’’ means more than one individ-
ual with a disability.
(18) LABOR MARKET AREA.—The term ‘‘labor market area’’
means an economically integrated geographic area within which
individuals can reside and find employment within a reasonable
distance or can readily change employment without changing
their place of residence. Such an area shall be identified in
accordance with criteria used by the Bureau of Labor Statistics
of the Department of Labor in defining such areas or similar
criteria established by a Governor.
(19) LITERACY.—The term ‘‘literacy’’ has the meaning given
the term in section 203.
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(20) LOCAL AREA.—The term ‘‘local area’’ means a local
workforce investment area designated under section 116.
(21) LOCAL BOARD.—The term ‘‘local board’’ means a local
workforce investment board established under section 117.
(22) LOCAL
PERFORMANCE
MEASURE.—The term ‘‘local
performance measure’’ means a performance measure estab-
lished under section 136(c).
(23) LOCAL EDUCATIONAL AGENCY.—The term ‘‘local edu-
cational agency’’ has the meaning given the term in section
14101 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 8801).
(24) LOWER LIVING STANDARD INCOME LEVEL.—The term
‘‘lower living standard income level’’ means that income level
(adjusted for regional, metropolitan, urban, and rural dif-
ferences and family size) determined annually by the Secretary
based on the most recent lower living family budget issued
by the Secretary.
(25) LOW-INCOME
INDIVIDUAL.—The term ‘‘low-income
individual’’ means an individual who—
(A) receives, or is a member of a family that receives,
cash payments under a Federal, State, or local income-
based public assistance program;
(B) received an income, or is a member of a family
that received a total family income, for the 6-month period
prior to application for the program involved (exclusive
of unemployment compensation, child support payments,
payments described in subparagraph (A), and old-age and
survivors insurance benefits received under section 202
of the Social Security Act (42 U.S.C. 402)) that, in relation
to family size, does not exceed the higher of—
(i) the poverty line, for an equivalent period; or
(ii) 70 percent of the lower living standard income
level, for an equivalent period;
(C) is a member of a household that receives (or has
been determined within the 6-month period prior to applica-
tion for the program involved to be eligible to receive)
food stamps pursuant to the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.);
(D) qualifies as a homeless individual, as defined in
subsections (a) and (c) of section 103 of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11302);
(E) is a foster child on behalf of whom State or local
government payments are made; or
(F) in cases permitted by regulations promulgated by
the Secretary of Labor, is an individual with a disability
whose own income meets the requirements of a program
described in subparagraph (A) or of subparagraph (B), but
who is a member of a family whose income does not meet
such requirements.
(26) NONTRADITIONAL EMPLOYMENT.—The term ‘‘nontradi-
tional employment’’ refers to occupations or fields of work for
which individuals from one gender comprise less than 25 per-
cent of the individuals employed in each such occupation or
field of work.
(27) OFFENDER.—The term ‘‘offender’’ means any adult or
juvenile—
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(A) who is or has been subject to any stage of the
criminal justice process, for whom services under this Act
may be beneficial; or
(B) who requires assistance in overcoming artificial
barriers to employment resulting from a record of arrest
or conviction.
(28) OLDER
INDIVIDUAL.—The term ‘‘older individual’’
means an individual age 55 or older.
(29) ONE-STOP OPERATOR.—The term ‘‘one-stop operator’’
means 1 or more entities designated or certified under section
121(d).
(30) ONE-STOP
PARTNER.—The term ‘‘one-stop partner’’
means—
(A) an entity described in section 121(b)(1); and
(B) an entity described in section 121(b)(2) that is
participating, with the approval of the local board and
chief elected official, in the operation of a one-stop delivery
system.
(31) 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 the employer of up to
50 percent of the wage rate of the participant, for the
extraordinary costs of providing the training and additional
supervision related to the training; and
(C) is limited in duration as appropriate to the occupa-
tion for which the participant is being trained, taking into
account the content of the training, the prior work experi-
ence of the participant, and the service strategy of the
participant, as appropriate.
(32) 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 Marshall Islands, the Federated States of Micronesia,
and the Republic of Palau.
(33) OUT-OF-SCHOOL
YOUTH.—The term ‘‘out-of-school
youth’’ means—
(A) an eligible youth who is a school dropout; or
(B) an eligible youth who has received a secondary
school diploma or its equivalent but is basic skills deficient,
unemployed, or underemployed.
(34) PARTICIPANT.—The term ‘‘participant’’ means an
individual who has been determined to be eligible to participate
in and who is receiving services (except followup services
authorized under this title) under a program authorized by
this title. Participation shall be deemed to commence on the
first day, following determination of eligibility, on which the
individual began receiving subsidized employment, training,
or other services provided under this title.
(35) POSTSECONDARY EDUCATIONAL INSTITUTION.—The term
‘‘postsecondary educational institution’’ means an institution
of higher education, as defined in section 481 of the Higher
Education Act of 1965 (20 U.S.C. 1088).
(36) POVERTY LINE.—The term ‘‘poverty line’’ means the
poverty line (as defined by the Office of Management and
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Budget, and revised annually in accordance with section 673(2)
of the Community Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
(37) PUBLIC
ASSISTANCE.—The term ‘‘public assistance’’
means Federal, State, or local government cash payments for
which eligibility is determined by a needs or income test.
(38) RAPID RESPONSE ACTIVITY.—The term ‘‘rapid response
activity’’ means an activity provided by a State, or by an entity
designated by a State, with funds provided by the State under
section 134(a)(1)(A), 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 notified of a
current or projected permanent closure or mass layoff;
or
(ii) in the case of a disaster, immediately after
the State is made aware of mass job dislocation as
a result of such disaster;
(B) the provision of information and access to available
employment and training activities;
(C) assistance in establishing a labor-management
committee, voluntarily agreed to by labor and management,
with the ability to devise and implement a strategy for
assessing the employment and training needs of dislocated
workers and obtaining services to meet such needs;
(D) the provision of emergency assistance adapted to
the particular closure, layoff, or disaster; and
(E) the provision of assistance to the local community
in developing a coordinated response and in obtaining
access to State economic development assistance.
(39) SCHOOL DROPOUT.—The term ‘‘school dropout’’ means
an individual who is no longer attending any school and who
has not received a secondary school diploma or its recognized
equivalent.
(40) SECONDARY SCHOOL.—The term ‘‘secondary school’’ has
the meaning given the term in section 14101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 8801).
(41) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Labor, and the term means such Secretary for pur-
poses of section 503.
(42) STATE.—The term ‘‘State’’ means each of the several
States of the United States, the District of Columbia, and
the Commonwealth of Puerto Rico.
(43) STATE ADJUSTED LEVEL OF PERFORMANCE.—The term
‘‘State adjusted level of performance’’ means a level described
in clause (iii) or (v) of section 136(b)(3)(A).
(44) STATE BOARD.—The term ‘‘State board’’ means a State
workforce investment board established under section 111.
(45) STATE
PERFORMANCE
MEASURE.—The term ‘‘State
performance measure’’ means a performance measure estab-
lished under section 136(b).
(46) SUPPORTIVE SERVICES.—The term ‘‘supportive services’’
means services such as transportation, child care, dependent
H. R. 1385—10
care, housing, and needs-related payments, that are necessary
to enable an individual to participate in activities authorized
under this title, consistent with the provisions of this title.
(47) UNEMPLOYED
INDIVIDUAL.—The term ‘‘unemployed
individual’’ means an individual who is without a job and
who wants and is available for work. The determination of
whether an individual is without a job shall be made in accord-
ance with the criteria used by the Bureau of Labor Statistics
of the Department of Labor in defining individuals as
unemployed.
(48) UNIT
OF
GENERAL
LOCAL
GOVERNMENT.—The term
‘‘unit of general local government’’ means any general purpose
political subdivision of a State that has the power to levy
taxes and spend funds, as well as general corporate and police
powers.
(49) VETERAN; RELATED DEFINITION.—
(A) VETERAN.—The term ‘‘veteran’’ means an individual
who served in the active military, naval, or air service,
and who was discharged or released from such service
under conditions other than dishonorable.
(B) 
RECENTLY
SEPARATED
VETERAN.—The 
term
‘‘recently separated veteran’’ means any veteran who
applies for participation under this title within 48 months
after the discharge or release from active military, naval,
or air service.
(50) VOCATIONAL EDUCATION.—The term ‘‘vocational edu-
cation’’ has the meaning given the term in section 521 of
the Carl D. Perkins Vocational and Applied Technology Edu-
cation Act (20 U.S.C. 2471).
(51) 
WORKFORCE
INVESTMENT
ACTIVITY.—The 
term
‘‘workforce investment activity’’ means an employment and
training activity, and a youth activity.
(52) YOUTH ACTIVITY.—The term ‘‘youth activity’’ means
an activity described in section 129 that is carried out for
eligible youth (or as described in section 129(c)(5)).
(53) YOUTH
COUNCIL.—The term ‘‘youth council’’ means
a council established under section 117(h).
Subtitle B—Statewide and Local Workforce
Investment Systems
SEC. 106. PURPOSE.
The purpose of this subtitle is to provide workforce investment
activities, through statewide and local workforce investment sys-
tems, that increase the employment, retention, and earnings of
participants, and increase occupational skill attainment by partici-
pants, and, as a result, improve the quality of the workforce, reduce
welfare dependency, and enhance the productivity and competitive-
ness of the Nation.
CHAPTER 1—STATE PROVISIONS
SEC. 111. STATE WORKFORCE INVESTMENT BOARDS.
(a) IN GENERAL.—The Governor of a State shall establish a
State workforce investment board to assist in the development
H. R. 1385—11
of the State plan described in section 112 and to carry out the
other functions described in subsection (d).
(b) MEMBERSHIP.—
(1) IN GENERAL.—The State Board shall include—
(A) the Governor;
(B) 2 members of each chamber of the State legislature,
appointed by the appropriate presiding officers of each
such chamber; and
(C) representatives appointed by the Governor, who
are—
(i) representatives of business in the State, who—
(I) are owners of businesses, chief executives
or operating officers of businesses, and other busi-
ness executives or employers with optimum policy-
making or hiring authority, including members of
local boards described in section 117(b)(2)(A)(i);
(II) represent businesses with employment
opportunities 
that 
reflect 
the 
employment
opportunities of the State; and
(III) are appointed from among individuals
nominated by State business organizations and
business trade associations;
(ii) chief elected officials (representing both cities
and counties, where appropriate);
(iii) representatives of labor organizations, who
have been nominated by State labor federations;
(iv) representatives of individuals and organiza-
tions that have experience with respect to youth activi-
ties;
(v) representatives of individuals and organizations
that have experience and expertise in the delivery
of workforce investment activities, including chief
executive officers of community colleges and commu-
nity-based organizations within the State;
(vi)(I) the lead State agency officials with respon-
sibility for the programs and activities that are
described in section 121(b) and carried out by one-
stop partners; and
(II) in any case in which no lead State agency
official has responsibility for such a program, service,
or activity, a representative in the State with expertise
relating to such program, service, or activity; and
(vii) such other representatives and State agency
officials as the Governor may designate, such as the
State agency officials responsible for economic develop-
ment and juvenile justice programs in the State.
(2) AUTHORITY AND REGIONAL REPRESENTATION OF BOARD
MEMBERS.—Members of the board that represent organizations,
agencies, or other entities shall be individuals with optimum
policymaking authority within the organizations, agencies, or
entities. The members of the board shall represent diverse
regions of the State, including urban, rural, and suburban
areas.
(3) MAJORITY.—A majority of the members of the State
Board shall be representatives described in paragraph (1)(C)(i).
H. R. 1385—12
(c) CHAIRMAN.—The Governor shall select a chairperson for
the State Board from among the representatives described in sub-
section (b)(1)(C)(i).
(d) FUNCTIONS.—The State Board shall assist the Governor
in—
(1) development of the State plan;
(2) development and continuous improvement of a state-
wide system of activities that are funded under this subtitle
or carried out through a one-stop delivery system described
in section 134(c) that receives funds under this subtitle (referred
to in this title as a ‘‘statewide workforce investment system’’),
including—
(A) development of linkages in order to assure coordina-
tion and nonduplication among the programs and activities
described in section 121(b); and
(B) review of local plans;
(3) commenting at least once annually on the measures
taken pursuant to section 113(b)(14) of the Carl D. Perkins
Vocational and Applied Technology Education Act (20 U.S.C
2323(b)(14));
(4) designation of local areas as required in section 116;
(5) development of allocation formulas for the distribution
of funds for adult employment and training activities and youth
activities to local areas as permitted under sections 128(b)(3)(B)
and 133(b)(3)(B);
(6) development and continuous improvement of com-
prehensive State performance measures, including State
adjusted levels of performance, to assess the effectiveness of
the workforce investment activities in the State as required
under section 136(b);
(7) preparation of the annual report to the Secretary
described in section 136(d);
(8) development of the statewide employment statistics sys-
tem described in section 15(e) of the Wagner-Peyser Act; and
(9) development of an application for an incentive grant
under section 503.
(e) ALTERNATIVE ENTITY.—
(1) IN
GENERAL.—For purposes of complying with sub-
sections (a), (b), and (c), a State may use any State entity
(including a State council, State workforce development board,
combination of regional workforce development boards, or simi-
lar entity) that—
(A) was in existence on December 31, 1997;
(B)(i) was established pursuant to section 122 or title
VII of the Job Training Partnership Act, as in effect on
December 31, 1997; or
(ii) is substantially similar to the State board described
in subsections (a), (b), and (c); and
(C) includes representatives of business in the State
and representatives of labor organizations in the State.
(2) REFERENCES.—References in this Act to a State board
shall be considered to include such an entity.
(f ) CONFLICT OF INTEREST.—A member of a State board may
not—
(1) vote on a matter under consideration by the State
board—
H. R. 1385—13
(A) regarding the provision of services by such member
(or by an entity that such member represents); or
(B) that would provide direct financial benefit to such
member or the immediate family of such member; or
(2) engage in any other activity determined by the Governor
to constitute a conflict of interest as specified in the State
plan.
(g) SUNSHINE PROVISION.—The State board shall make avail-
able to the public, on a regular basis through open meetings,
information regarding the activities of the State board, including
information regarding the State plan prior to submission of the
plan, information regarding membership, and, on request, minutes
of formal meetings of the State board.
SEC. 112. STATE PLAN.
(a) IN GENERAL.—For a State to be eligible to receive an allot-
ment under section 127 or 132, or to receive financial assistance
under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), the Governor
of the State shall submit to the Secretary for consideration by
the Secretary, a single State plan (referred to in this title as
the ‘‘State plan’’) that outlines a 5-year strategy for the statewide
workforce investment system of the State and that meets the
requirements of section 111 and this section.
(b) CONTENTS.—The State plan shall include—
(1) a description of the State board, including a description
of the manner in which such board collaborated in the develop-
ment of the State plan and a description of how the board
will continue to collaborate in carrying out the functions
described in section 111(d);
(2) a description of State-imposed requirements for the
statewide workforce investment system;
(3) a description of the State performance accountability
system developed for the workforce investment activities to
be carried out through the statewide workforce investment
system, that includes information identifying State performance
measures as described in section 136(b)(3)(A)(ii);
(4) information describing—
(A) the needs of the State with regard to current and
projected employment opportunities, by occupation;
(B) the job skills necessary to obtain such employment
opportunities;
(C) the skills and economic development needs of the
State; and
(D) the type and availability of workforce investment
activities in the State;
(5) an identification of local areas designated in the State,
including a description of the process used for the designation
of such areas;
(6) an identification of criteria to be used by chief elected
officials for the appointment of members of local boards based
on the requirements of section 117;
(7) the detailed plans required under section 8 of the
Wagner-Peyser Act (29 U.S.C. 49g);
(8)(A) a description of the procedures that will be taken
by the State to assure coordination of and avoid duplication
among—
H. R. 1385—14
(i) workforce investment activities authorized under
this title;
(ii) other activities authorized under this title;
(iii) programs authorized under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.), title II of this Act, title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), part
A of title IV of the Social Security Act (42 U.S.C. 601
et seq.), and section 6(d)(4) of the Food Stamp Act of
1977 (7 U.S.C. 2015(d)(4)), activities authorized under title
V of the Older Americans Act of 1965 (42 U.S.C. 3056
et seq.), and postsecondary vocational education activities
authorized under the Carl D. Perkins Vocational and
Applied Technology Education Act (20 U.S.C. 2301 et seq.);
(iv) work programs authorized under section 6(o) of
the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
(v) activities authorized under chapter 2 of title II
of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
(vi) activities authorized under chapter 41 of title 38,
United States Code;
(vii) employment and training activities carried out
under the Community Services Block Grant Act (42 U.S.C.
9901 et seq.);
(viii) activities authorized under the National and
Community Service Act of 1990 (42 U.S.C. 12501 et seq.);
(ix) employment and training activities carried out by
the Department of Housing and Urban Development; and
(x) programs authorized under State unemployment
compensation laws (in accordance with applicable Federal
law); and
(B) a description of the common data collection and report-
ing processes used for the programs and activities described
in subparagraph (A);
(9) a description of the process used by the State, consistent
with section 111(g), to provide an opportunity for public com-
ment, including comment by representatives of businesses and
representatives of labor organizations, and input into develop-
ment of the plan, prior to submission of the plan;
(10) information identifying how the State will use funds
the State receives under this subtitle to leverage other Federal,
State, local, and private resources, in order to maximize the
effectiveness of such resources, and to expand the participation
of business, employees, and individuals in the statewide
workforce investment system;
(11) assurances that the State will provide, in accordance
with section 184 for fiscal control and fund accounting proce-
dures that may be necessary to ensure the proper disbursement
of, and accounting for, funds paid to the State through the
allotments made under sections 127 and 132;
(12)(A) a description of the methods and factors the State
will use in distributing funds to local areas for youth activities
and adult employment and training activities under sections
128(b)(3)(B) and 133(b)(3)(B), including—
(i) a description of how the individuals and entities
represented on the State board were involved in determin-
ing such methods and factors of distribution; and
H. R. 1385—15
(ii) a description of how the State consulted with chief
elected officials in local areas throughout the State in deter-
mining such distribution;
(B) assurances that the funds will be distributed equitably
throughout the State, and that no local areas will suffer signifi-
cant shifts in funding from year to year; and
(C) a description of the formula prescribed by the Governor
pursuant to section 133(b)(2)(B) for the allocation of funds
to local areas for dislocated worker employment and training
activities;
(13) information specifying the actions that constitute a
conflict of interest prohibited in the State for purposes of sec-
tions 111(f ) and 117(g);
(14) with respect to the one-stop delivery systems described
in section 134(c) (referred to individually in this title as a
‘‘one-stop delivery system’’), a description of the strategy of
the State for assisting local areas in development and
implementation of fully operational one-stop delivery systems
in the State;
(15) a description of the appeals process referred to in
section 116(a)(5);
(16) a description of the competitive process to be used
by the State to award grants and contracts in the State for
activities carried out under this title;
(17) with respect to the employment and training activities
authorized in section 134—
(A) a description of—
(i) the employment and training activities that
will be carried out with the funds received by the
State through the allotment made under section 132;
(ii) how the State will provide rapid response
activities to dislocated workers from funds reserved
under section 133(a)(2) for such purposes, including
the designation of an identifiable State rapid response
dislocated worker unit to carry out statewide rapid
response activities;
(iii) the procedures the local boards in the State
will use to identify eligible providers of training serv-
ices described in section 134(d)(4) (other than on-the-
job training or customized training), as required under
section 122; and
(iv) how the State will serve the employment and
training needs of dislocated workers (including dis-
placed homemakers), low-income individuals (including
recipients of public assistance), individuals training
for nontraditional employment, and other individuals
with multiple barriers to employment (including older
individuals and individuals with disabilities); and
(B) an assurance that veterans will be afforded the
employment and training activities by the State, to the
extent practicable; and
(18) with respect to youth activities authorized in section
129, information—
(A) describing the State strategy for providing com-
prehensive services to eligible youth, particularly those
eligible youth who are recognized as having significant
barriers to employment;
H. R. 1385—16
(B) identifying the criteria to be used by local boards
in awarding grants for youth activities, including criteria
that the Governor and local boards will use to identify
effective and ineffective youth activities and providers of
such activities;
(C) describing how the State will coordinate the youth
activities carried out in the State under section 129 with
the services provided by Job Corps centers in the State
(where such centers exist); and
(D) describing how the State will coordinate youth
activities described in subparagraph (C) with activities car-
ried out through the youth opportunity grants under section
169.
(c) PLAN SUBMISSION AND APPROVAL.—A State plan submitted
to the Secretary under this section by a Governor shall be considered
to be approved by the Secretary at the end of the 90-day period
beginning on the day the Secretary receives the plan, unless the
Secretary makes a written determination, during the 90-day period,
that—
(1) the plan is inconsistent with the provisions of this
title; and
(2) in the case of the portion of the plan described in
section 8(a) of the Wagner-Peyser Act (29 U.S.C. 49g(a)), the
portion does not satisfy the criteria for approval provided in
section 8(d) of such Act.
(d) MODIFICATIONS TO PLAN.—A State may submit modifications
to a State plan in accordance with the requirements of this section
and section 111 as necessary during the 5-year period covered
by the plan.
CHAPTER 2—LOCAL PROVISIONS
SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS.
(a) DESIGNATION OF AREAS.—
(1) IN GENERAL.—
(A) PROCESS.—Except as provided in subsection (b),
and consistent with paragraphs (2), (3), and (4), in order
for a State to receive an allotment under section 127 or
132, the Governor of the State shall designate local
workforce investment areas within the State—
(i) through consultation with the State board; and
(ii) after consultation with chief elected officials
and after consideration of comments received through
the public comment process as described in section
112(b)(9).
(B) CONSIDERATIONS.—In making the designation of
local areas, the Governor shall take into consideration the
following:
(i) Geographic areas served by local educational
agencies and intermediate educational agencies.
(ii) Geographic areas served by postsecondary
educational institutions and area vocational education
schools.
(iii) The extent to which such local areas are
consistent with labor market areas.
(iv) The distance that individuals will need to
travel to receive services provided in such local areas.
H. R. 1385—17
(v) The resources of such local areas that are avail-
able to effectively administer the activities carried out
under this subtitle.
(2) AUTOMATIC DESIGNATION.—The Governor shall approve
any request for designation as a local area—
(A) from any unit of general local government with
a population of 500,000 or more;
(B) of the area served by a rural concentrated employ-
ment program grant recipient of demonstrated effectiveness
that served as a service delivery area or substate area
under the Job Training Partnership Act, if the grant recipi-
ent has submitted the request; and
(C) of an area that served as a service delivery area
under section 101(a)(4)(A)(ii) of the Job Training Partner-
ship Act (as in effect on the day before the date of enact-
ment of this Act) in a State that has a population of
not more than 1,100,000 and a population density greater
than 900 persons per square mile.
(3) TEMPORARY AND SUBSEQUENT DESIGNATION.—
(A) CRITERIA.—Notwithstanding paragraph (2)(A), the
Governor shall approve any request, made not later than
the date of submission of the initial State plan under
this subtitle, for temporary designation as a local area
from any unit of general local government (including a
combination of such units) with a population of 200,000
or more that was a service delivery area under the Job
Training Partnership Act on the day before the date of
enactment of this Act if the Governor determines that
the area—
(i) performed successfully, in each of the last 2
years prior to the request for which data are available,
in the delivery of services to participants under part
A of title II and title III of the Job Training Partnership
Act (as in effect on such day); and
(ii) has sustained the fiscal integrity of the funds
used by the area to carry out activities under such
part and title.
(B) DURATION AND SUBSEQUENT DESIGNATION.—A tem-
porary designation under this paragraph shall be for a
period of not more than 2 years, after which the designation
shall be extended until the end of the period covered by
the State plan if the Governor determines that, during
the temporary designation period, the area substantially
met (as defined by the State board) the local performance
measures for the local area and sustained the fiscal integ-
rity of the funds used by the area to carry out activities
under this subtitle.
(C) TECHNICAL ASSISTANCE.—The Secretary shall pro-
vide the States with technical assistance in making the
determinations required by this paragraph. The Secretary
shall not issue regulations governing determinations to
be made under this paragraph.
(D) PERFORMED SUCCESSFULLY.—In this paragraph, the
term ‘‘performed successfully’’ means that the area involved
met or exceeded the performance standards for activities
administered in the area that—
H. R. 1385—18
(i) are established by the Secretary for each year
and modified by the adjustment methodology of the
State (used to account for differences in economic condi-
tions, participant characteristics, and combination of
services provided from the combination assumed for
purposes of the established standards of the Secretary);
and
(ii)(I) if the area was designated as both a service
delivery area and a substate area under the Job Train-
ing Partnership Act (as in effect on the day before
the date of enactment of this Act)—
(aa) relate to job retention and earnings, with
respect to activities carried out under part A of
title II of such Act (as in effect on such day);
or
(bb) relate to entry into employment, with
respect to activities carried out under title III of
such Act (as in effect on such day);
(II) if the area was designated only as a service
delivery area under such Act (as in effect on such
day), relate to the standards described in subclause
(I)(aa); or
(III) if the area was only designated as a substate
area under such Act (as in effect on such day), relate
to the standards described in subclause (I)(bb).
(E) SUSTAINED THE FISCAL INTEGRITY.—In this para-
graph, the term ‘‘sustained the fiscal integrity’’, used with
respect to funds used by a service delivery area or local
area, means that the Secretary has not made a final deter-
mination during any of the last 3 years for which data
are available, prior to the date of the designation request
involved, that either the grant recipient or the administra-
tive entity of the area misexpended the funds due to willful
disregard of the requirements of the Act involved, gross
negligence, or failure to observe accepted standards of
administration.
(4) DESIGNATION ON RECOMMENDATION OF STATE BOARD.—
The Governor may approve a request from any unit of general
local government (including a combination of such units) for
designation (including temporary designation) as a local area
if the State board determines, taking into account the factors
described in clauses (i) through (v) of paragraph (1)(B), and
recommends to the Governor, that such area should be so
designated.
(5) APPEALS.—A unit of general local government (including
a combination of such units) or grant recipient that requests
but is not granted designation of an area as a local area
under paragraph (2) or (3) may submit an appeal to the State
board under an appeal process established in the State plan.
If the appeal does not result in such a designation, the Sec-
retary, after receiving a request for review from the unit or
grant recipient and on determining that the unit or grant
recipient was not accorded procedural rights under the appeal
process established in the State plan or that the area meets
the requirements of paragraph (2) or (3), as appropriate, may
require that the area be designated as a local area under
such paragraph.
H. R. 1385—19
(b) SMALL STATES.—The Governor of any State that was a
single State service delivery area under the Job Training Partner-
ship Act as of July 1, 1998, may designate the State as a single
State local area for the purposes of this title. In the case of such
a designation, the Governor shall identify the State as a local
area under section 112(b)(5).
(c) REGIONAL PLANNING AND COOPERATION.—
(1) PLANNING.—As part of the process for developing the
State plan, a State may require regional planning by local
boards for a designated region in the State. The State may
require the local boards for a designated region to participate
in a regional planning process that results in the establishment
of regional performance measures for workforce investment
activities authorized under this subtitle. The State may award
regional incentive grants to the designated regions that meet
or exceed the regional performance measures.
(2) INFORMATION
SHARING.—The State may require the
local boards for a designated region to share, in feasible cases,
employment 
statistics, 
information 
about 
employment
opportunities and trends, and other types of information that
would assist in improving the performance of all local areas
in the designated region on local performance measures.
(3) COORDINATION OF SERVICES.—The State may require
the local boards for a designated region to coordinate the provi-
sion of workforce investment activities authorized under this
subtitle, including the provision of transportation and other
supportive services, so that services provided through the activi-
ties may be provided across the boundaries of local areas within
the designated region.
(4) INTERSTATE REGIONS.—Two or more States that contain
an interstate region that is a labor market area, economic
development region, or other appropriate contiguous subarea
of the States may designate the area as a designated region
for purposes of this subsection, and jointly exercise the State
functions described in paragraphs (1) through (3).
(5) DEFINITIONS.—In this subsection:
(A) 
DESIGNATED
REGION.—The 
term 
‘‘designated
region’’ means a combination of local areas that are partly
or completely in a single labor market area, economic
development region, or other appropriate contiguous sub-
area of a State, that is designated by the State, except
as provided in paragraph (4).
(B) LOCAL
BOARD
FOR
A
DESIGNATED
REGION.—The
term ‘‘local board for a designated region’’ means a local
board for a local area in a designated region.
SEC. 117. LOCAL WORKFORCE INVESTMENT BOARDS.
(a) ESTABLISHMENT.—There shall be established in each local
area of a State, and certified by the Governor of the State, a
local workforce investment board, to set policy for the portion of
the statewide workforce investment system within the local area
(referred to in this title as a ‘‘local workforce investment system’’).
(b) MEMBERSHIP.—
(1) STATE CRITERIA.—The Governor of the State, in partner-
ship with the State board, shall establish criteria for use by
chief elected officials in the local areas for appointment of
H. R. 1385—20
members of the local boards in such local areas in accordance
with the requirements of paragraph (2).
(2) COMPOSITION.—Such criteria shall require, at a mini-
mum, that the membership of each local board—
(A) shall include—
(i) representatives of business in the local area,
who—
(I) are owners of businesses, chief executives
or operating officers of businesses, and other busi-
ness executives or employers with optimum policy-
making or hiring authority;
(II) represent businesses with employment
opportunities 
that 
reflect 
the 
employment
opportunities of the local area; and
(III) are appointed from among individuals
nominated by local business organizations and
business trade associations;
(ii) representatives of local educational entities,
including representatives of local educational agencies,
local school boards, entities providing adult education
and literacy activities, and postsecondary educational
institutions (including representatives of community
colleges, where such entities exist), selected from
among individuals nominated by regional or local edu-
cational agencies, institutions, or organizations rep-
resenting such local educational entities;
(iii) representatives of labor organizations (for a
local area in which employees are represented by labor
organizations), nominated by local labor federations,
or (for a local area in which no employees are rep-
resented by such organizations), other representatives
of employees;
(iv) representatives of community-based organiza-
tions (including organizations representing individuals
with disabilities and veterans, for a local area in which
such organizations are present);
(v) 
representatives 
of 
economic 
development
agencies, including private sector economic develop-
ment entities; and
(vi) representatives of each of the one-stop
partners; and
(B) may include such other individuals or representa-
tives of entities as the chief elected official in the local
area may determine to be appropriate.
(3) AUTHORITY OF BOARD MEMBERS.—Members of the board
that represent organizations, agencies, or other entities shall
be individuals with optimum policymaking authority within
the organizations, agencies, or entities.
(4) MAJORITY.—A majority of the members of the local
board shall be representatives described in paragraph (2)(A)(i).
(5) CHAIRPERSON.—The local board shall elect a chairperson
for the local board from among the representatives described
in paragraph (2)(A)(i).
(c) APPOINTMENT AND CERTIFICATION OF BOARD.—
(1) APPOINTMENT OF BOARD MEMBERS AND ASSIGNMENT OF
RESPONSIBILITIES.—
H. R. 1385—21
(A) IN GENERAL.—The chief elected official in a local
area is authorized 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 GOVERNMENT IN AREA.—
(i) IN GENERAL.—In a case in which a local area
includes 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
individual 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 accordance with
the criteria established under subsection (b); and
(II) in carrying out any other responsibilities
assigned to such officials under this subtitle.
(ii) LACK OF AGREEMENT.—If, after a reasonable
effort, the chief elected officials are unable to reach
agreement as provided under clause (i), the Governor
may appoint the members of the local board from
individuals so nominated or recommended.
(C) CONCENTRATED
EMPLOYMENT
PROGRAMS.—In the
case of a local area designated in accordance with section
116(a)(2)(B), the governing body of the concentrated
employment program involved shall act in consultation
with the chief elected official in the local area to appoint
members of the local board, in accordance with the State
criteria established under subsection (b), and to carry out
any other responsibility relating to workforce investment
activities assigned to such official under this Act.
(2) CERTIFICATION.—
(A) IN GENERAL.—The Governor shall, once every 2
years, certify 1 local board for each local area in the State.
(B) CRITERIA.—Such certification shall be based on cri-
teria established under subsection (b) and, for a second
or subsequent certification, the extent to which the local
board has ensured that workforce investment activities
carried out in the local area have enabled the local area
to meet the local performance measures.
(C) FAILURE
TO
ACHIEVE
CERTIFICATION.—Failure of
a local board to achieve certification shall result in
reappointment and certification of another local board for
the local area pursuant to the process described in para-
graph (1) and this paragraph.
(3) DECERTIFICATION.—
(A) FRAUD, ABUSE, FAILURE TO CARRY OUT FUNCTIONS.—
Notwithstanding paragraph (2), the Governor may decertify
a local board, at any time after providing notice and an
opportunity for comment, for—
(i) fraud or abuse; or
(ii) failure to carry out the functions specified for
the local board in any of paragraphs (1) through (7)
of subsection (d).
(B) NONPERFORMANCE.—Notwithstanding paragraph
(2), the Governor may decertify a local board if a local
area fails to meet the local performance measures for such
H. R. 1385—22
local area for 2 consecutive program years (in accordance
with section 136(h)).
(C) PLAN.—If the Governor decertifies a local board
for a local area under subparagraph (A) or (B), the Governor
may require that a new local board be appointed and
certified for the local area pursuant to a reorganization
plan developed by the Governor, in consultation with the
chief elected official in the local area, 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
116(b) indicates in the State plan that the State will be treated
as a local area for purposes of the application of this title,
the Governor may designate the State board to carry out any
of the functions described in subsection (d).
(d) FUNCTIONS OF LOCAL BOARD.—The functions of the local
board shall include the following:
(1) LOCAL PLAN.—Consistent with section 118, each local
board, in partnership with the chief elected official for the
local area involved, shall develop and submit a local plan to
the Governor.
(2) SELECTION OF OPERATORS AND PROVIDERS.—
(A) SELECTION OF ONE-STOP OPERATORS.—Consistent
with section 121(d), the local board, with the agreement
of the chief elected official—
(i) shall designate or certify one-stop operators as
described in section 121(d)(2)(A); and
(ii) may terminate for cause the eligibility of such
operators.
(B) SELECTION OF YOUTH PROVIDERS.—Consistent with
section 123, the local board shall identify eligible providers
of youth activities in the local area by awarding grants
or contracts on a competitive basis, based on the rec-
ommendations of the youth council.
(C) IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAIN-
ING SERVICES.—Consistent with section 122, the local board
shall identify eligible providers of training services
described in section 134(d)(4) in the local area.
(D) IDENTIFICATION OF ELIGIBLE PROVIDERS OF INTEN-
SIVE SERVICES.—If the one-stop operator does not provide
intensive services in a local area, the local board shall
identify eligible providers of intensive services described
in section 134(d)(3) in the local area by awarding contracts.
(3) BUDGET AND ADMINISTRATION.—
(A) BUDGET.—The local board shall develop a budget
for the purpose of carrying out the duties of the local
board under this section, subject to the approval of the
chief elected official.
(B) ADMINISTRATION.—
(i) GRANT RECIPIENT.—
(I) IN GENERAL.—The chief elected official in
a local area shall serve as the local grant recipient
for, and shall be liable for any misuse of, the
grant funds allocated to the local area under sec-
tions 128 and 133, unless the chief elected official
reaches an agreement with the Governor for the
H. R. 1385—23
Governor to act as the local grant recipient and
bear such liability.
(II) DESIGNATION.—In order to assist in the
administration of the grant funds, the chief elected
official or the Governor, where the Governor serves
as the local grant recipient for a local area, may
designate an entity to serve as a local grant sub-
recipient for such funds or as a local fiscal agent.
Such designation shall not relieve the chief elected
official or the Governor of the liability for any
misuse of grant funds as described in subclause
(I).
(III) DISBURSAL.—The local grant recipient or
an entity designated under subclause (II) shall
disburse such funds for workforce investment
activities at the direction of the local board, pursu-
ant to the requirements of this title, if the direction
does not violate a provision of this Act. The local
grant recipient or entity designated under sub-
clause (II) shall disburse the funds immediately
on receiving such direction from the local board.
(ii) STAFF.—The local board may employ staff.
(iii) GRANTS AND DONATIONS.—The local board may
solicit and accept grants and donations from sources
other than Federal funds made available under this
Act.
(4) PROGRAM OVERSIGHT.—The local board, in partnership
with the chief elected official, shall conduct oversight with
respect to local programs of youth activities authorized under
section 129, local employment and training activities authorized
under section 134, and the one-stop delivery system in the
local area.
(5) NEGOTIATION OF LOCAL PERFORMANCE MEASURES.—The
local board, the chief elected official, and the Governor shall
negotiate and reach agreement on local performance measures
as described in section 136(c).
(6) EMPLOYMENT STATISTICS SYSTEM.—The local board shall
assist the Governor in developing the statewide employment
statistics system described in section 15(e) of the Wagner-
Peyser Act.
(7) EMPLOYER LINKAGES.—The local board shall coordinate
the workforce investment activities authorized under this sub-
title and carried out in the local area with economic develop-
ment strategies and develop other employer linkages with such
activities.
(8) CONNECTING, BROKERING, AND
COACHING.—The local
board shall promote the participation of private sector employ-
ers in the statewide workforce investment system and ensure
the effective provision, through the system, of connecting,
brokering, and coaching activities, through intermediaries such
as the one-stop operator in the local area or through other
organizations, to assist such employers in meeting hiring needs.
(e) SUNSHINE PROVISION.—The local board shall make available
to the public, on a regular basis through open meetings, information
regarding the activities of the local board, including information
H. R. 1385—24
regarding the local plan prior to submission of the plan, and regard-
ing membership, the designation and certification of one-stop opera-
tors, and the award of grants or contracts to eligible providers
of youth activities, and on request, minutes of formal meetings
of the local board.
(f ) LIMITATIONS.—
(1) TRAINING SERVICES.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), no local board may provide training services described
in section 134(d)(4).
(B) WAIVERS OF TRAINING PROHIBITION.—The Governor
of the State in which a local board is located may, pursuant
to a request from the local board, grant a written waiver
of the prohibition set forth in subparagraph (A) (relating
to the provision of training services) for a program of
training services, if the local board—
(i) submits to the Governor a proposed request
for the waiver that includes—
(I) satisfactory evidence that there is an
insufficient number of eligible providers of such
a program of training services to meet local
demand in the local area;
(II) information demonstrating that the board
meets the requirements for an eligible provider
of training services under section 122; and
(III) information demonstrating that the pro-
gram of training services prepares participants for
an occupation that is in demand in the local area;
(ii) makes the proposed request available to eligible
providers of training services and other interested
members of the public for a public comment period
of not less than 30 days; and
(iii) includes, in the final request for the waiver,
the evidence and information described in clause (i)
and the comments received pursuant to clause (ii).
(C) DURATION.—A waiver granted to a local board
under subparagraph (B) shall apply for a period of not
to exceed 1 year. The waiver may be renewed for additional
periods of not to exceed 1 year, pursuant to requests from
the local board, if the board meets the requirements of
subparagraph (B) in making the requests.
(D) REVOCATION.—The Governor may revoke a waiver
granted under this paragraph during the appropriate
period described in subparagraph (C) if the State deter-
mines that the local board involved has engaged in a pat-
tern of inappropriate referrals to training services operated
by the local board.
(2) CORE SERVICES; INTENSIVE SERVICES; DESIGNATION OR
CERTIFICATION AS ONE-STOP OPERATORS.—A local board may
provide core services described in section 134(d)(2) or intensive
services described in section 134(d)(3) through a one-stop deliv-
ery system described in section 134(c) or be designated or
certified as a one-stop operator only with the agreement of
the chief elected official and the Governor.
(3) LIMITATION ON AUTHORITY.—Nothing in this Act shall
be construed to provide a local board with the authority to
mandate curricula for schools.
H. R. 1385—25
(g) CONFLICT OF INTEREST.—A member of a local board may
not—
(1) vote on a matter under consideration by the local
board—
(A) regarding the provision of services by such member
(or by an entity that such member represents); or
(B) that would provide direct financial benefit to such
member or the immediate family of such member; or
(2) engage in any other activity determined by the Governor
to constitute a conflict of interest as specified in the State
plan.
(h) YOUTH COUNCIL.—
(1) ESTABLISHMENT.—There shall be established, as a sub-
group within each local board, a youth council appointed by
the local board, in cooperation with the chief elected official
for the local area.
(2) MEMBERSHIP.—The membership of each youth council—
(A) shall include—
(i) members of the local board described in
subparagraph (A) or (B) of subsection (b)(2) with special
interest or expertise in youth policy;
(ii) representatives of youth service agencies,
including juvenile justice and local law enforcement
agencies;
(iii) representatives of local public housing authori-
ties;
(iv) parents of eligible youth seeking assistance
under this subtitle;
(v) individuals, including former participants, and
representatives of organizations, that have experience
relating to youth activities; and
(vi) representatives of the Job Corps, as appro-
priate; and
(B) may include such other individuals as the chair-
person of the local board, in cooperation with the chief
elected official, determines to be appropriate.
(3) RELATIONSHIP TO LOCAL BOARD.—Members of the youth
council who are not members of the local board described in
subparagraphs (A) and (B) of subsection (b)(2) shall be voting
members of the youth council and nonvoting members of the
board.
(4) DUTIES.—The duties of the youth council include—
(A) developing the portions of the local plan relating
to eligible youth, as determined by the chairperson of the
local board;
(B) subject to the approval of the local board and
consistent with section 123—
(i) recommending eligible providers of youth activi-
ties, to be awarded grants or contracts on a competitive
basis by the local board to carry out the youth activi-
ties; and
(ii) conducting oversight with respect to the eligible
providers of youth activities, in the local area;
(C) coordinating youth activities authorized under
section 129 in the local area; and
(D) other duties determined to be appropriate by the
chairperson of the local board.
H. R. 1385—26
(i) ALTERNATIVE ENTITY.—
(1) IN
GENERAL.—For purposes of complying with sub-
sections (a), (b), and (c), and paragraphs (1) and (2) of subsection
(h), a State may use any local entity (including a local council,
regional workforce development board, or similar entity) that—
(A) is established to serve the local area (or the service
delivery area that most closely corresponds to the local
area);
(B) is in existence on December 31, 1997;
(C)(i) is established pursuant to section 102 of the
Job Training Partnership Act, as in effect on December
31, 1997; or
(ii) is substantially similar to the local board described
in subsections (a), (b), and (c), and paragraphs (1) and
(2) of subsection (h); and
(D) includes—
(i) representatives of business in the local area;
and
(ii)(I) representatives of labor organizations (for
a local area in which employees are represented by
labor organizations), nominated by local labor federa-
tions; or
(II) (for a local area in which no employees are
represented by such organizations), other representa-
tives of employees in the local area.
(2) REFERENCES.—References in this Act to a local board
or a youth council shall be considered to include such an entity
or a subgroup of such an entity, respectively.
SEC. 118. LOCAL PLAN.
(a) IN GENERAL.—Each local board shall develop and submit
to the Governor a comprehensive 5-year local plan (referred to
in this title as the ‘‘local plan’’), in partnership with the appropriate
chief elected official. The plan shall be consistent with the State
plan.
(b) CONTENTS.—The local plan shall include—
(1) an identification of—
(A) the workforce investment needs of businesses, job-
seekers, and workers in the local area;
(B) the current and projected employment opportuni-
ties in the local area; and
(C) the job skills necessary to obtain such employment
opportunities;
(2) a description of the one-stop delivery system to be
established or designated in the local area, including—
(A) a description of how the local board will ensure
the continuous improvement of eligible providers of services
through the system and ensure that such providers meet
the employment needs of local employers and participants;
and
(B) a copy of each memorandum of understanding
described in section 121(c) (between the local board and
each of the one-stop partners) concerning the operation
of the one-stop delivery system in the local area;
(3) a description of the local levels of performance nego-
tiated with the Governor and chief elected official pursuant
to section 136(c), to be used to measure the performance of
H. R. 1385—27
the local area and to be used by the local board for measuring
the performance of the local fiscal agent (where appropriate),
eligible providers, and the one-stop delivery system, in the
local area;
(4) a description and assessment of the type and availability
of adult and dislocated worker employment and training activi-
ties in the local area;
(5) a description of how the local board will coordinate
workforce investment activities carried out in the local area
with statewide rapid response activities, as appropriate;
(6) a description and assessment of the type and availability
of youth activities in the local area, including an identification
of successful providers of such activities;
(7) a description of the process used by the local board,
consistent with subsection (c), to provide an opportunity for
public comment, including comment by representatives of
businesses and comment by representatives of labor organiza-
tions, and input into the development of the local plan, prior
to submission of the plan;
(8) an identification of the entity responsible for the dis-
bursal of grant funds described in section 117(d)(3)(B)(i)(III),
as determined by the chief elected official or the Governor
under section 117(d)(3)(B)(i);
(9) a description of the competitive process to be used
to award the grants and contracts in the local area for activities
carried out under this subtitle; and
(10) such other information as the Governor may require.
(c) PROCESS.—Prior to the date on which the local board submits
a local plan under this section, the local board shall—
(1) make available copies of a proposed local plan to the
public through such means as public hearings and local news
media;
(2) allow members of the local board and members of the
public, including representatives of business and representa-
tives of labor organizations, to submit comments on the pro-
posed local plan to the local board, not later than the end
of the 30-day period beginning on the date on which the pro-
posed local plan is made available; and
(3) include with the local plan submitted to the Governor
under this section any such comments that represent disagree-
ment with the plan.
(d) PLAN SUBMISSION AND APPROVAL.—A local plan submitted
to the Governor under this section shall be considered to be
approved by the Governor at the end of the 90-day period beginning
on the day the Governor receives the plan, unless the Governor
makes a written determination during the 90-day period that—
(1) deficiencies in activities carried out under this subtitle
have been identified, through audits conducted under section
184 or otherwise, and the local area has not made acceptable
progress in implementing corrective measures to address the
deficiencies; or
(2) the plan does not comply with this title.
H. R. 1385—28
CHAPTER 3—WORKFORCE INVESTMENT ACTIVITIES
PROVIDERS
SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.
(a) IN GENERAL.—Consistent with the State plan, the local
board for a local area, with the agreement of the chief elected
official for the local area, shall—
(1) develop and enter into the memorandum of under-
standing described in subsection (c) with one-stop partners;
(2) designate or certify one-stop operators under subsection
(d); and
(3) conduct oversight with respect to the one-stop delivery
system in the local area.
(b) ONE-STOP PARTNERS.—
(1) REQUIRED PARTNERS.—
(A) IN
GENERAL.—Each entity that carries out a
program or activities described in subparagraph (B) shall—
(i) make available to participants, through a one-
stop delivery system, the services described in section
134(d)(2) that are applicable to such program or activi-
ties; and
(ii) participate in the operation of such system
consistent with the terms of the memorandum
described in subsection (c), and with the requirements
of the Federal law in which the program or activities
are authorized.
(B) PROGRAMS
AND
ACTIVITIES.—The programs and
activities referred to in subparagraph (A) consist of—
(i) programs authorized under this title;
(ii) programs authorized under the Wagner-Peyser
Act (29 U.S.C. 49 et seq.);
(iii) 
adult 
education 
and 
literacy 
activities
authorized under title II;
(iv) programs authorized under title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.);
(v) programs authorized under section 403(a)(5)
of the Social Security Act (42 U.S.C. 603(a)(5)) (as
added by section 5001 of the Balanced Budget Act
of 1997);
(vi) activities authorized under title V of the Older
Americans Act of 1965 (42 U.S.C. 3056 et seq.);
(vii) postsecondary vocational education activities
authorized under the Carl D. Perkins Vocational and
Applied Technology Education Act (20 U.S.C. 2301 et
seq.);
(viii) activities authorized under chapter 2 of title
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
(ix) activities authorized under chapter 41 of title
38, United States Code;
(x) employment and training activities carried out
under the Community Services Block Grant Act (42
U.S.C. 9901 et seq.);
(xi) employment and training activities carried out
by the Department of Housing and Urban Develop-
ment; and
H. R. 1385—29
(xii) programs authorized under State unemploy-
ment compensation laws (in accordance with applicable
Federal law).
(2) ADDITIONAL PARTNERS.—
(A) IN GENERAL.—In addition to the entities described
in paragraph (1), other entities that carry out a human
resource program described in subparagraph (B) may—
(i) make available to participants, through the one-
stop delivery system, the services described in section
134(d)(2) that are applicable to such program; and
(ii) participate in the operation of such system
consistent with the terms of the memorandum
described in subsection (c), and with the requirements
of the Federal law in which the program is authorized;
if the local board and chief elected official involved approve
such participation.
(B) PROGRAMS.—The programs referred to in subpara-
graph (A) may include—
(i) programs authorized under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.);
(ii) programs authorized under section 6(d)(4) of
the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4));
(iii) work programs authorized under section 6(o)
of the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
(iv) programs authorized under the National and
Community Service Act of 1990 (42 U.S.C. 12501 et
seq.); and
(v) other appropriate Federal, State, or local
programs, including programs in the private sector.
(c) MEMORANDUM OF UNDERSTANDING.—
(1) DEVELOPMENT.—The local board, with the agreement
of the chief elected official, shall develop and enter into a
memorandum of understanding (between the local board and
the one-stop partners), consistent with paragraph (2), concern-
ing the operation of the one-stop delivery system in the local
area.
(2) CONTENTS.—Each memorandum of understanding shall
contain—
(A) provisions describing—
(i) the services to be provided through the one-
stop delivery system;
(ii) how the costs of such services and the operating
costs of the system will be funded;
(iii) methods for referral of individuals between
the one-stop operator and the one-stop partners, for
the appropriate services and activities; and
(iv) the duration of the memorandum and the
procedures for amending the memorandum during the
term of the memorandum; and
(B) such other provisions, consistent with the require-
ments of this title, as the parties to the agreement deter-
mine to be appropriate.
(d) ONE-STOP OPERATORS.—
(1) DESIGNATION
AND
CERTIFICATION.—Consistent with
paragraphs (2) and (3), the local board, with the agreement
of the chief elected official, is authorized to designate or certify
H. R. 1385—30
one-stop operators and to terminate for cause the eligibility
of such operators.
(2) ELIGIBILITY.—To be eligible to receive funds made avail-
able under this subtitle to operate a one-stop center referred
to in section 134(c), an entity (which may be a consortium
of entities)—
(A) shall be designated or certified as a one-stop
operator—
(i) through a competitive process; or
(ii) in accordance with an agreement reached
between the local board and a consortium of entities
that, at a minimum, includes 3 or more of the one-
stop partners described in subsection (b)(1); and
(B) may be a public or private entity, or consortium
of entities, of demonstrated effectiveness, located in the
local area, which may include—
(i) a postsecondary educational institution;
(ii) an employment service agency established
under the Wagner-Peyser Act (29 U.S.C. 49 et seq.),
on behalf of the local office of the agency;
(iii) a private, nonprofit organization (including
a community-based organization);
(iv) a private for-profit entity;
(v) a government agency; and
(vi) another interested organization or entity,
which may include a local chamber of commerce or
other business organization.
(3) EXCEPTION.—Elementary schools and secondary schools
shall not be eligible for designation or certification as one-
stop operators, except that nontraditional public secondary
schools and area vocational education schools shall be eligible
for such designation or certification.
(e) ESTABLISHED ONE-STOP DELIVERY SYSTEM.—If a one-stop
delivery system has been established in a local area prior to the
date of enactment of this Act, the local board, the chief elected
official, and the Governor involved may agree to certify an entity
carrying out activities through the system as a one-stop operator
for purposes of subsection (d), consistent with the requirements
of subsection (b), of the memorandum of understanding, and of
section 134(c).
SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING
SERVICES.
(a) ELIGIBILITY REQUIREMENTS.—
(1) IN
GENERAL.—Except as provided in subsection (h),
to be identified as an eligible provider of training services
described in section 134(d)(4) (referred to in this section as
‘‘training services’’) in a local area and to be eligible to receive
funds made available under section 133(b) for the provision
of training services, a provider of such services shall meet
the requirements of this section.
(2) PROVIDERS.—Subject to the provisions of this section,
to be eligible to receive the funds, the provider shall be—
(A) a postsecondary educational institution that—
(i) is eligible to receive Federal funds under title
IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.); and
H. R. 1385—31
(ii) provides a program that leads to an associate
degree, baccalaureate degree, or certificate;
(B) an entity that carries out programs under the
Act of August 16, 1937 (commonly known as the ‘‘National
Apprenticeship Act’’; 50 Stat. 664, chapter 663; 29 U.S.C.
50 et seq.); or
(C) another public or private provider of a program
of training services.
(b) INITIAL ELIGIBILITY DETERMINATION.—
(1) POSTSECONDARY EDUCATIONAL INSTITUTIONS AND ENTI-
TIES CARRYING OUT APPRENTICESHIP PROGRAMS.—To be initially
eligible to receive funds as described in subsection (a) to carry
out a program described in subparagraph (A) or (B) of sub-
section (a)(2), a provider described in subparagraph (A) or (B),
respectively, of subsection (a)(2) shall submit an application,
to the local board for the local area in which the provider
desires to provide training services, at such time, in such man-
ner, and containing such information as the local board may
require.
(2) OTHER ELIGIBLE PROVIDERS.—
(A) PROCEDURE.—Each Governor of a State shall estab-
lish a procedure for use by local boards in the State in
determining the initial eligibility of a provider described
in subsection (a)(2)(C) to receive funds as described in
subsection (a) for a program of training services, including
the initial eligibility of—
(i) a postsecondary educational institution to
receive such funds for a program not described in
subsection (a)(2)(A); and
(ii) a provider described in subsection (a)(2)(B) to
receive such funds for a program not described in
subsection (a)(2)(B).
(B) RECOMMENDATIONS.—In developing such proce-
dure, the Governor shall solicit and take into consideration
the recommendations of local boards and providers of train-
ing services within the State.
(C) OPPORTUNITY
TO
SUBMIT
COMMENTS.—The Gov-
ernor shall provide an opportunity, during the development
of the procedure, for interested members of the public,
including representatives of business and labor organiza-
tions, to submit comments on such procedure.
(D) REQUIREMENTS.—In establishing the procedure, the
Governor shall require that, to be initially eligible to receive
funds as described in subsection (a) for a program, a pro-
vider described in subsection (a)(2)(C)—
(i) shall submit an application, to the local board
for the local area in which the provider desires to
provide training services, at such time and in such
manner as may be required, and containing a descrip-
tion of the program;
(ii) if the provider provides training services
through a program on the date of application, shall
include in the application an appropriate portion of
the 
performance 
information 
and 
program 
cost
information described in subsection (d) for the program,
H. R. 1385—32
as specified in the procedure, and shall meet appro-
priate levels of performance for the program, as speci-
fied in the procedure; and
(iii) if the provider does not provide training serv-
ices on such date, shall meet appropriate requirements,
as specified in the procedure.
(c) SUBSEQUENT ELIGIBILITY DETERMINATION.—
(1) PROCEDURE.—Each Governor of a State shall establish
a procedure for use by local boards in the State in determining
the eligibility of a provider described in subsection (a)(2) to
continue to receive funds as described in subsection (a) for
a program after an initial period of eligibility under subsection
(b) (referred to in this section as ‘‘subsequent eligibility’’).
(2) RECOMMENDATIONS.—In developing such procedure, the
Governor shall solicit and take into consideration the rec-
ommendations of local boards and providers of training services
within the State.
(3) OPPORTUNITY
TO
SUBMIT
COMMENTS.—The Governor
shall provide an opportunity, during the development of the
procedure, for interested members of the public, including rep-
resentatives of business and labor organizations, to submit
comments on such procedure.
(4) CONSIDERATIONS.—In developing such procedure, the
Governor shall ensure that the procedure requires the local
boards to take into consideration, in making the determinations
of subsequent eligibility—
(A) the specific economic, geographic, and demographic
factors in the local areas in which providers seeking eligi-
bility are located; and
(B) the characteristics of the populations served by
providers seeking eligibility, including the demonstrated
difficulties in serving such populations, where applicable.
(5) REQUIREMENTS.—In establishing the procedure, the
Governor shall require that, to be eligible to continue to receive
funds as described in subsection (a) for a program after the
initial period of eligibility, a provider described in subsection
(a)(2) shall—
(A) submit the performance information and program
cost information described in subsection (d)(1) for the pro-
gram and any additional information required to be submit-
ted in accordance with subsection (d)(2) for the program
annually to the appropriate local board at such time and
in such manner as may be required; and
(B) annually meet the performance levels described
in paragraph (6) for the program, as demonstrated utilizing
quarterly records described in section 136, in a manner
consistent with section 136.
(6) LEVELS OF PERFORMANCE.—
(A) IN
GENERAL.—At a minimum, the procedure
described in paragraph (1) shall require the provider to
meet minimum acceptable levels of performance based on
the performance information referred to in paragraph
(5)(A).
(B) HIGHER
LEVELS
OF
PERFORMANCE
ELIGIBILITY.—
The local board may require higher levels of performance
H. R. 1385—33
than the levels referred to in subparagraph (A) for subse-
quent eligibility to receive funds as described in subsection
(a).
(d) PERFORMANCE AND COST INFORMATION.—
(1) REQUIRED
INFORMATION.—For a provider of training
services to be determined to be subsequently eligible under
subsection (c) to receive funds as described in subsection (a),
such provider shall, under subsection (c), submit—
(A) verifiable program-specific performance information
consisting of—
(i) program information, including—
(I) the program completion rates for all
individuals participating in the applicable program
conducted by the provider;
(II) the percentage of all individuals participat-
ing in the applicable program who obtain unsub-
sidized employment, which may also include
information specifying the percentage of the
individuals who obtain unsubsidized employment
in an occupation related to the program conducted;
and
(III) the wages at placement in employment
of all individuals participating in the applicable
program; and
(ii) training services information for all partici-
pants who received assistance under section 134 to
participate in the applicable program, including—
(I) the percentage of participants who have
completed the applicable program and who are
placed in unsubsidized employment;
(II) the retention rates in unsubsidized
employment of participants who have completed
the applicable program, 6 months after the first
day of the employment;
(III) the wages received by participants who
have completed the applicable program, 6 months
after the first day of the employment involved;
and
(IV) where appropriate, the rates of licensure
or certification, attainment of academic degrees
or equivalents, or attainment of other measures
of skills, of the graduates of the applicable pro-
gram; and
(B) information on program costs (such as tuition and
fees) for participants in the applicable program.
(2) ADDITIONAL INFORMATION.—Subject to paragraph (3),
in addition to the performance information described in para-
graph (1)—
(A) the Governor may require that a provider submit,
under subsection (c), such other verifiable program-specific
performance information as the Governor determines to
be appropriate to obtain such subsequent eligibility, which
may include information relating to—
(i) retention rates in employment and the subse-
quent wages of all individuals who complete the
applicable program;
H. R. 1385—34
(ii) where appropriate, the rates of licensure or
certification of all individuals who complete the pro-
gram; and
(iii) the percentage of individuals who complete
the program who attain industry-recognized occupa-
tional skills in the subject, occupation, or industry
for which training is provided through the program,
where applicable; and
(B) the Governor, or the local board, may require a
provider to submit, under subsection (c), other verifiable
program-specific performance information to obtain such
subsequent eligibility.
(3) CONDITIONS.—
(A) IN
GENERAL.—If the Governor or a local board
requests additional information under paragraph (2) that
imposes extraordinary costs on providers, or if providers
experience extraordinary costs in the collection of informa-
tion required under paragraph (1)(A)(ii), the Governor or
the local board shall provide access to cost-effective meth-
ods for the collection of the information involved, or the
Governor shall provide additional resources to assist
providers in the collection of such information from funds
made available as described in sections 128(a) and
133(a)(1), as appropriate.
(B) HIGHER EDUCATION ELIGIBILITY REQUIREMENTS.—
The local board and the designated State agency described
in subsection (i) may accept program-specific performance
information consistent with the requirements for eligibility
under title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.) from a provider for purposes of
enabling the provider to fulfill the applicable requirements
of this subsection, if such information is substantially simi-
lar to the information otherwise required under this sub-
section.
(e) LOCAL IDENTIFICATION.—
(1) IN
GENERAL.—The local board shall place on a list
providers submitting an application under subsection (b)(1) and
providers determined to be initially eligible under subsection
(b)(2), and retain on the list providers determined to be subse-
quently eligible under subsection (c), to receive funds as
described in subsection (a) for the provision of training services
in the local area served by the local board. The list of providers
shall be accompanied by any performance information and pro-
gram cost information submitted under subsection (b) or (c)
by the provider.
(2) SUBMISSION TO STATE AGENCY.—On placing or retaining
a provider on the list, the local board shall submit, to the
designated State agency described in subsection (i), the list
and the performance information and program cost information
referred to in paragraph (1). If the agency determines, within
30 days after the date of the submission, that the provider
does not meet the performance levels described in subsection
(c)(6) for the program (where applicable), the agency may
remove the provider from the list for the program. The agency
may not remove from the list an agency submitting an applica-
tion under subsection (b)(1).
H. R. 1385—35
(3) IDENTIFICATION
OF
ELIGIBLE
PROVIDERS.—A provider
who is placed or retained on the list under paragraph (1),
and is not removed by the designated State agency under
paragraph (2), for a program, shall be considered to be identified
as an eligible provider of training services for the program.
(4) AVAILABILITY.—
(A) STATE LIST.—The designated State agency shall
compile a single list of the providers identified under para-
graph (3) from all local areas in the State and disseminate
such list, and the performance information and program
cost information described in paragraph (1), to the one-
stop delivery systems within the State. Such list and
information shall be made widely available to participants
in employment and training activities authorized under
section 134 and others through the one-stop delivery sys-
tem.
(B) SELECTION FROM STATE LIST.—Individuals eligible
to receive training services under section 134(d)(4) shall
have the opportunity to select any of the eligible providers,
from any of the local areas in the State, that are included
on the list described in subparagraph (A) to provide the
services, consistent with the requirements of section 134.
(5) ACCEPTANCE
OF
INDIVIDUAL
TRAINING
ACCOUNTS
BY
OTHER STATES.—States may enter into agreements, on a recip-
rocal basis, to permit eligible providers of training services
in a State to accept individual training accounts provided in
another State.
(f ) ENFORCEMENT.—
(1) ACCURACY OF INFORMATION.—If the designated State
agency, after consultation with the local board involved, deter-
mines that an eligible provider or individual supplying informa-
tion on behalf of the provider intentionally supplies inaccurate
information under this section, the agency shall terminate the
eligibility of the provider to receive funds described in sub-
section (a) for any program for a period of time, but not less
than 2 years.
(2) NONCOMPLIANCE.—If the designated State agency, or
the local board working with the State agency, determines
that an eligible provider described in subsection (a) substan-
tially violates any requirement under this Act, the agency,
or the local board working with the State agency, may termi-
nate the eligibility of such provider to receive funds described
in subsection (a) for the program involved or take such other
action as the agency or local board determines to be appropriate.
(3) REPAYMENT.—A provider whose eligibility is terminated
under paragraph (1) or (2) for a program shall be liable for
repayment of all funds described in subsection (a) received
for the program during any period of noncompliance described
in such paragraph.
(4) CONSTRUCTION.—This subsection and subsection (g)
shall be construed to provide remedies and penalties that
supplement, but do not supplant, other civil and criminal rem-
edies and penalties.
(g) APPEAL.—The Governor shall establish procedures for
providers of training services to appeal a denial of eligibility by
the local board or the designated State agency under subsection
(b), (c), or (e), a termination of eligibility or other action by the
H. R. 1385—36
board or agency under subsection (f ), or a denial of eligibility
by a one-stop operator under subsection (h). Such procedures shall
provide an opportunity for a hearing and prescribe appropriate
time limits to ensure prompt resolution of the appeal.
(h) ON-THE-JOB TRAINING
OR CUSTOMIZED TRAINING EXCEP-
TION.—
(1) IN GENERAL.—Providers of on-the-job training or cus-
tomized training shall not be subject to the requirements of
subsections (a) through (e).
(2) COLLECTION AND DISSEMINATION OF INFORMATION.—A
one-stop operator in a local area shall collect such performance
information from on-the-job training and customized training
providers as the Governor may require, determine whether
the providers meet such performance criteria as the Governor
may require, and disseminate information identifying providers
that meet the criteria as eligible providers, and the performance
information, through the one-stop delivery system. Providers
determined to meet the criteria shall be considered to be identi-
fied as eligible providers of training services.
(i) ADMINISTRATION.—The Governor shall designate a State
agency to make the determinations described in subsection (e)(2),
take the enforcement actions described in subsection (f ), and carry
out other duties described in this section.
SEC. 123. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVI-
TIES.
From funds allocated under paragraph (2)(A) or (3) of section
128(b) to a local area, the local board for such area shall identify
eligible providers of youth activities by awarding grants or contracts
on a competitive basis, based on the recommendations of the youth
council and on the criteria contained in the State plan, to the
providers to carry out the activities, and shall conduct oversight
with respect to the providers, in the local area.
CHAPTER 4—YOUTH ACTIVITIES
SEC. 126. GENERAL AUTHORIZATION.
The Secretary shall make an allotment under section
127(b)(1)(C) to each State that meets the requirements of section
112 and a grant to each outlying area that complies with the
requirements of this title, to assist the State or outlying area,
and to enable the State or outlying area to assist local areas,
for the purpose of providing workforce investment activities for
eligible youth in the State or outlying area and in the local areas.
SEC. 127. STATE ALLOTMENTS.
(a) IN GENERAL.—The Secretary shall—
(1) for each fiscal year in which the amount appropriated
under section 137(a) exceeds $1,000,000,000, reserve a portion
determined under subsection (b)(1)(A) of the amount appro-
priated under section 137(a) for use under sections 167 (relating
to migrant and seasonal farmworker programs) and 169 (relat-
ing to youth opportunity grants); and
(2) use the remainder of the amount appropriated under
section 137(a) for a fiscal year to make allotments and grants
in accordance with subparagraphs (B) and (C) of subsection
(b)(1) and make funds available for use under section 166
(relating to Native American programs).
H. R. 1385—37
(b) ALLOTMENT AMONG STATES.—
(1) YOUTH ACTIVITIES.—
(A) YOUTH OPPORTUNITY GRANTS.—
(i) IN
GENERAL.—For each fiscal year in which
the amount appropriated under section 137(a) exceeds
$1,000,000,000, the Secretary shall reserve a portion
of the amount to provide youth opportunity grants
and other activities under section 169 (relating to youth
opportunity grants) and provide youth activities under
section 167 (relating to migrant and seasonal farm-
worker programs).
(ii) PORTION.—The portion referred to in clause
(i) shall equal, for a fiscal year—
(I) except as provided in subclause (II), the
difference obtained by subtracting $1,000,000,000
from the amount appropriated under section 137(a)
for the fiscal year; or
(II) for any fiscal year in which the amount
is $1,250,000,000 or greater, $250,000,000.
(iii) YOUTH ACTIVITIES FOR FARMWORKERS.—From
the portion described in clause (i) for a fiscal year,
the Secretary shall make available 4 percent of such
portion to provide youth activities under section 167.
(iv) ROLE
MODEL
ACADEMY
PROJECT.—From the
portion described in clause (i) for fiscal year 1999,
the Secretary shall make available such sums as the
Secretary determines to be appropriate to carry out
section 169(g).
(B) OUTLYING AREAS.—
(i) IN GENERAL.—From the amount made available
under subsection (a)(2) for a fiscal year, the Secretary
shall reserve not more than 1⁄4 of 1 percent of the
amount appropriated under section 137(a) for the fiscal
year—
(I) to provide assistance to the outlying areas
to carry out youth activities and statewide
workforce investment activities; and
(II) for each of fiscal years 1999, 2000, and
2001, to carry out the competition described in
clause (ii), except that the funds reserved to carry
out such clause for any such fiscal year shall not
exceed the amount reserved for the Freely Associ-
ated States for fiscal year 1997, from amounts
reserved under sections 252(a) and 262(a)(1) of
the Job Training Partnership Act (as in effect on
the day before the date of enactment of this Act).
(ii) LIMITATION FOR FREELY ASSOCIATED STATES.—
(I) COMPETITIVE GRANTS.—The Secretary shall
use funds described in clause (i)(II) to award grants
to Guam, American Samoa, the Commonwealth
of the Northern Mariana Islands, and the Freely
Associated States to carry out youth activities and
statewide workforce investment activities.
(II) AWARD BASIS.—The Secretary shall award
grants pursuant to subclause (I) on a competitive
basis and pursuant to the recommendations of
experts in the field of employment and training,
H. R. 1385—38
working through the Pacific Region Educational
Laboratory in Honolulu, Hawaii.
(III) ASSISTANCE REQUIREMENTS.—Any Freely
Associated State that desires to receive assistance
under this subparagraph shall submit an applica-
tion to the Secretary and shall include in the
application for assistance—
(aa) information demonstrating that the
Freely Associated State will meet all condi-
tions that apply to States under this title;
(bb) an assurance that, notwithstanding
any other provision of this title, the Freely
Associated State will use such assistance only
for the direct provision of services; and
(cc) such other information and assur-
ances as the Secretary may require.
(IV) TERMINATION
OF
ELIGIBILITY.—Notwith-
standing any other provision of law, the Freely
Associated States shall not receive any assistance
under this subparagraph for any program year
that begins after September 30, 2001.
(V) ADMINISTRATIVE
COSTS.—The Secretary
may provide not more than 5 percent of the funds
made available for grants under subclause (I) to
pay the administrative costs of the Pacific Region
Educational Laboratory in Honolulu, Hawaii,
regarding activities assisted under this clause.
(iii) ADDITIONAL REQUIREMENT.—The provisions of
Public Law 95–134, permitting the consolidation of
grants by the outlying areas, shall not apply to assist-
ance provided to those areas, including the Freely Asso-
ciated States, under this subparagraph.
(C) STATES.—
(i) IN GENERAL.—After determining the amounts
to be reserved under subparagraph (A) (if any) and
subparagraph (B), the Secretary shall—
(I) from the amount referred to in subsection
(a)(2) for a fiscal year, make available not more
than 1.5 percent to provide youth activities under
section 166 (relating to Native Americans); and
(II) allot the remainder of the amount referred
to in subsection (a)(2) for a fiscal year to the States
pursuant to clause (ii) for youth activities and
statewide workforce investment activities.
(ii) FORMULA.—Subject to clauses (iii) and (iv), of
the remainder—
(I) 331⁄3 percent shall be allotted on the basis
of the relative number of unemployed individuals
in areas of substantial unemployment in each
State, compared to the total number of unemployed
individuals in areas of substantial unemployment
in all States;
(II) 331⁄3 percent shall be allotted on the basis
of the relative excess number of unemployed
individuals in each State, compared to the total
excess number of unemployed individuals in all
States; and
H. R. 1385—39
(III) 331⁄3 percent shall be allotted on the basis
of the relative number of disadvantaged youth in
each State, compared to the total number of dis-
advantaged youth in all States, except as described
in clause (iii).
(iii) CALCULATION.—In determining an allotment
under clause (ii)(III) for any State in which there is
a local area designated under section 116(a)(2)(B)
(relating to the area served by a rural concentrated
employment program grant recipient), the allotment
shall be based on the higher of—
(I) the number of individuals who are age
16 through 21 in families with an income below
the low-income level in such area; or
(II) the number of disadvantaged youth in such
area.
(iv) MINIMUM
AND
MAXIMUM
PERCENTAGES
AND
MINIMUM ALLOTMENTS.—In making allotments under
this subparagraph, the Secretary shall ensure the
following:
(I) MINIMUM PERCENTAGE AND ALLOTMENT.—
Subject to subclause (IV), the Secretary shall
ensure that no State shall receive an allotment
for a fiscal year that is less than the greater of—
(aa) an amount based on 90 percent of
the allotment percentage of the State for the
preceding fiscal year; or
(bb) 100 percent of the total of the allot-
ments of the State under sections 252 and
262 of the Job Training Partnership Act (as
in effect on the day before the date of enact-
ment of this Act) for fiscal year 1998.
(II) SMALL
STATE
MINIMUM
ALLOTMENT.—
Subject to subclauses (I), (III), and (IV), the Sec-
retary shall ensure that no State shall receive
an allotment under this subparagraph that is less
than the total of—
(aa) 3⁄10 of 1 percent of $1,000,000,000
of the remainder described in clause (i)(II) for
the fiscal year; and
(bb) if the remainder described in clause
(i)(II) 
for 
the 
fiscal 
year 
exceeds
$1,000,000,000, 2⁄5 of 1 percent of the excess.
(III) MAXIMUM PERCENTAGE.—Subject to sub-
clause (I), the Secretary shall ensure that no State
shall receive an allotment percentage for a fiscal
year that is more than 130 percent of the allotment
percentage of the State for the preceding fiscal
year.
(IV) MINIMUM FUNDING.—In any fiscal year
in which the remainder described in clause (i)(II)
does not exceed $1,000,000,000, the minimum
allotments under subclauses (I) and (II) shall be
calculated by the methodology for calculating the
corresponding allotments under parts B and C of
title II of the Job Training Partnership Act, as
in effect on July 1, 1998.
H. R. 1385—40
(2) DEFINITIONS.—For the purpose of the formula specified
in paragraph (1)(C):
(A) ALLOTMENT
PERCENTAGE.—The term ‘‘allotment
percentage’’, used with respect to fiscal year 2000 or a
subsequent fiscal year, means a percentage of the remain-
der described in paragraph (1)(C)(i)(II) that is received
through an allotment made under paragraph (1)(C) for
the fiscal year. The term, used with respect to fiscal year
1998 or 1999, means the percentage of the amounts allotted
to States under sections 252(b) and 262(a) of the Job Train-
ing Partnership Act (as in effect on the day before the
date of enactment of this Act) that is received under such
sections by the State involved for fiscal year 1998 or 1999.
(B) AREA OF SUBSTANTIAL UNEMPLOYMENT.—The term
‘‘area of substantial unemployment’’ means any area that
is of sufficient size and scope to sustain a program of
workforce investment activities carried out under this sub-
title and that has an average rate of unemployment of
at least 6.5 percent for the most recent 12 months, as
determined by the Secretary. For purposes of this subpara-
graph, determinations of areas of substantial unemploy-
ment shall be made once each fiscal year.
(C) DISADVANTAGED YOUTH.—Subject to paragraph (3),
the term ‘‘disadvantaged youth’’ means an individual who
is age 16 through 21 who received an income, or is a
member of a family that received a total family income,
that, in relation to family size, does not exceed the higher
of—
(i) the poverty line; or
(ii) 70 percent of the lower living standard income
level.
(D) EXCESS
NUMBER.—The term ‘‘excess number’’
means, used with respect to the excess number of
unemployed individuals within a State, the higher of—
(i) the number that represents the number of
unemployed individuals in excess of 4.5 percent of the
civilian labor force in the State; or
(ii) the number that represents the number of
unemployed individuals in excess of 4.5 percent of the
civilian labor force in areas of substantial unemploy-
ment in such State.
(E) LOW-INCOME LEVEL.—The term ‘‘low-income level’’
means $7,000 with respect to income in 1969, and for
any later year means that amount that bears the same
relationship to $7,000 as the Consumer Price Index for
that year bears to the Consumer Price Index for 1969,
rounded to the nearest $1,000.
(3) SPECIAL RULE.—For the purpose of the formula specified
in paragraph (1)(C), the Secretary shall, as appropriate and
to the extent practicable, exclude college students and members
of the Armed Forces from the determination of the number
of disadvantaged youth.
(4) DEFINITION.—In this subsection, the term ‘‘Freely Asso-
ciated State’’ means the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
(c) REALLOTMENT.—
H. R. 1385—41
(1) IN GENERAL.—The Secretary shall, in accordance with
this subsection, reallot to eligible States amounts that are
allotted under this section for youth activities and statewide
workforce investment activities and that are available for
reallotment.
(2) AMOUNT.—The amount available for reallotment for
a program year is equal to the amount by which the unobligated
balance of the State allotment under this section for such
activities, at the end of the program year prior to the program
year for which the determination 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 this section for such activities for the prior program
year, as compared to the total amount allotted to all eligible
States under this section for such activities for such prior
program year.
(4) ELIGIBILITY.—For purposes of this subsection, an
eligible State means a State that has obligated at least 80
percent of the State allotment under this section for such
activities for the program year prior to the program year for
which the determination under paragraph (2) is made.
(5) PROCEDURES.—The Governor of each State shall pre-
scribe uniform procedures for the obligation of funds by local
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 local areas in the
event that a State is required to make funds available for
reallotment under this subsection.
SEC. 128. WITHIN STATE ALLOCATIONS.
(a) RESERVATIONS FOR STATE ACTIVITIES.—
(1) IN GENERAL.—The Governor of a State shall reserve
not more than 15 percent of each of the amounts allotted
to the State under section 127(b)(1)(C) and paragraphs (1)(B)
and (2)(B) of section 132(b) for a fiscal year for statewide
workforce investment activities.
(2) USE OF FUNDS.—Regardless of whether the reserved
amounts were allotted under section 127(b)(1)(C), or under
paragraph (1)(B) or (2)(B) of section 132(b), the Governor may
use the reserved amounts to carry out statewide youth activities
described in section 129(b) or statewide employment and train-
ing activities, for adults or for dislocated workers, described
in paragraph (2)(B) or (3) of section 134(a).
(b) WITHIN STATE ALLOCATION.—
(1) METHODS.—The Governor, acting in accordance with
the State plan, and after consulting with chief elected officials
in the local areas, shall allocate the funds that are allotted
to the State for youth activities and statewide workforce invest-
ment activities under section 127(b)(1)(C) and are not reserved
under subsection (a), in accordance with paragraph (2) or (3).
(2) FORMULA ALLOCATION.—
(A) YOUTH ACTIVITIES.—
H. R. 1385—42
(i) ALLOCATION.—In allocating the funds described
in paragraph (1) to local areas, a State may allocate—
(I) 331⁄3 percent of the funds on the basis
described in section 127(b)(1)(C)(ii)(I);
(II) 331⁄3 percent of the funds on the basis
described in section 127(b)(1)(C)(ii)(II); and
(III) 331⁄3 percent of the funds on the basis
described in clauses (ii)(III) and (iii) of section
127(b)(1)(C).
(ii) MINIMUM PERCENTAGE.—Effective at the end
of the second full fiscal year after the date on which
a local area is designated under section 116, the local
area shall not receive an allocation percentage for a
fiscal year that is less than 90 percent of the average
allocation percentage of the local area for the 2 preced-
ing fiscal years. Amounts necessary for increasing such
allocations to local areas to comply with the preceding
sentence shall be obtained by ratably reducing the
allocations to be made to other local areas under this
subparagraph.
(iii) DEFINITION.—The term ‘‘allocation percent-
age’’, used with respect to fiscal year 2000 or a subse-
quent fiscal year, means a percentage of the funds
referred to in clause (i), received through an allocation
made under this subparagraph, for the fiscal year.
(B) APPLICATION.—For purposes of carrying out
subparagraph (A)—
(i) references in section 127(b) to a State shall
be deemed to be references to a local area;
(ii) references in section 127(b) to all States shall
be deemed to be references to all local areas in the
State involved; and
(iii) except as described in clause (i), references
in section 127(b)(1) to the term ‘‘excess number’’ shall
be considered to be references to the term as defined
in section 127(b)(2).
(3) YOUTH DISCRETIONARY ALLOCATION.—In lieu of making
the allocation described in paragraph (2)(A), in allocating the
funds described in paragraph (1) to local areas, a State may
distribute—
(A) a portion equal to not less than 70 percent of
the funds in accordance with paragraph (2)(A); and
(B) the remaining portion of the funds on the basis
of a formula that—
(i) incorporates additional factors (other than the
factors described in paragraph (2)(A)) relating to—
(I) excess youth poverty in urban, rural, and
suburban local areas; and
(II) excess unemployment above the State
average in urban, rural, and suburban local areas;
and
(ii) was developed by the State board and approved
by the Secretary as part of the State plan.
(4) LIMITATION.—
(A) IN GENERAL.—Of the amount allocated to a local
area under this subsection and section 133(b) for a fiscal
year, not more than 10 percent of the amount may be
H. R. 1385—43
used by the local board for the administrative cost of carry-
ing out local workforce investment activities described in
subsection (d) or (e) of section 134 or in section 129(c).
(B) USE OF FUNDS.—Funds made available for adminis-
trative costs under subparagraph (A) may be used for the
administrative cost of any of the local workforce investment
activities described in subsection (d) or (e) of section 134
or in section 129(c), regardless of whether the funds were
allocated under this subsection or section 133(b).
(C) REGULATIONS.—The Secretary, after consulting
with the Governors, shall develop and issue regulations
that define the term ‘‘administrative cost’’ for purposes
of this title. Such definition shall be consistent with gen-
erally accepted accounting principles.
(c) REALLOCATION AMONG LOCAL AREAS.—
(1) IN GENERAL.—The Governor may, in accordance with
this subsection, reallocate to eligible local areas within the
State amounts that are allocated under paragraph (2)(A) or
(3) of subsection (b) for youth activities and that are available
for reallocation.
(2) AMOUNT.—The amount available for reallocation for
a program year is equal to the amount by which the unobligated
balance of the local area allocation under paragraph (2)(A)
or (3) of subsection (b) for such activities, 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 allocation for the prior program year.
(3) REALLOCATION.—In making reallocations to eligible local
areas of amounts available pursuant to paragraph (2) for a
program year, the Governor shall allocate to each eligible local
area within the State an amount based on the relative amount
allocated to such local area under subsection (b)(3) for such
activities for the prior program year, as compared to the total
amount allocated to all eligible local areas in the State under
subsection (b)(3) for such activities for such prior program
year. For purposes of this paragraph, local areas that received
allocations under subsection (b)(2)(A) for the prior program
year shall be treated as if the local areas received allocations
under subsection (b)(3) for such year.
(4) ELIGIBILITY.—For purposes of this subsection, an
eligible local area means a local area that has obligated at
least 80 percent of the local area allocation under paragraph
(2)(A) or (3) of subsection (b) for such activities, for the program
year prior to the program year for which the determination
under paragraph (2) is made.
SEC. 129. USE OF FUNDS FOR YOUTH ACTIVITIES.
(a) PURPOSES.—The purposes of this section are—
(1) to provide, to eligible youth seeking assistance in achiev-
ing academic and employment success, effective and comprehen-
sive activities, which shall include a variety of options for
improving educational and skill competencies and provide effec-
tive connections to employers;
(2) to ensure on-going mentoring opportunities for eligible
youth with adults committed to providing such opportunities;
(3) to provide opportunities for training to eligible youth;
H. R. 1385—44
(4) to provide continued supportive services for eligible
youth;
(5) to provide incentives for recognition and achievement
to eligible youth; and
(6) to provide opportunities for eligible youth in activities
related to leadership, development, decisionmaking, citizenship,
and community service.
(b) STATEWIDE YOUTH ACTIVITIES.—
(1) IN GENERAL.—Funds reserved by a Governor for a State
as described in sections 128(a) and 133(a)(1)—
(A) shall be used to carry out the statewide youth
activities described in paragraph (2); and
(B) may be used to carry out any of the statewide
youth activities described in paragraph (3),
regardless of whether the funds were allotted to the State
under section 127(b)(1) or under paragraph (1) or (2) of section
132(b).
(2) REQUIRED STATEWIDE YOUTH ACTIVITIES.—A State shall
use funds reserved as described in sections 128(a) and 133(a)(1)
(regardless of whether the funds were allotted to the State
under section 127(b)(1) or paragraph (1) or (2) of section 132(b))
to carry out statewide youth activities, which shall include—
(A) disseminating a list of eligible providers of youth
activities described in section 123;
(B) carrying out activities described in clauses (ii)
through (vi) of section 134(a)(2)(B), except that references
in such clauses to activities authorized under section 134
shall be considered to be references to activities authorized
under this section; and
(C) providing additional assistance to local areas that
have high concentrations of eligible youth to carry out
the activities described in subsection (c).
(3) ALLOWABLE STATEWIDE YOUTH ACTIVITIES.—A State may
use funds reserved as described in sections 128(a) and 133(a)(1)
(regardless of whether the funds were allotted to the State
under section 127(b)(1) or paragraph (1) or (2) of section 132(b))
to carry out additional statewide youth activities, which may
include—
(A) carrying out activities described in clauses (i), (ii),
(iii), (iv)(II), and (vi)(II) of section 134(a)(3)(A), except that
references in such clauses to activities authorized under
section 134 shall be considered to be references to activities
authorized under this section; and
(B) carrying out, on a statewide basis, activities
described in subsection (c).
(4) PROHIBITION.—No funds described in this subsection
or section 134(a) shall be used to develop or implement edu-
cation curricula for school systems in the State.
(c) LOCAL ELEMENTS AND REQUIREMENTS.—
(1) PROGRAM DESIGN.—Funds allocated to a local area for
eligible youth under paragraph (2)(A) or (3), as appropriate,
of section 128(b) shall be used to carry out, for eligible youth,
programs that—
(A) provide an objective assessment of the academic
levels, skill levels, and service needs of each participant,
which assessment shall include a review of basic skills,
occupational skills, prior work experience, employability,
H. R. 1385—45
interests, aptitudes (including interests and aptitudes for
nontraditional jobs), supportive service needs, and develop-
mental needs of such participant, except that a new assess-
ment of a participant is not required if the provider carry-
ing out such a program determines it is appropriate to
use a recent assessment of the participant conducted pursu-
ant to another education or training program;
(B) develop service strategies for each participant that
shall identify an employment goal (including, in appro-
priate circumstances, nontraditional employment), appro-
priate achievement objectives, and appropriate services for
the participant taking into account the assessment con-
ducted pursuant to subparagraph (A), except that a new
service strategy for a participant is not required if the
provider carrying out such a program determines it is
appropriate to use a recent service strategy developed for
the participant under another education or training pro-
gram; and
(C) provide—
(i) preparation for postsecondary educational
opportunities, in appropriate cases;
(ii) strong linkages between academic and occupa-
tional learning;
(iii) preparation for unsubsidized employment
opportunities, in appropriate cases; and
(iv) effective connections to intermediaries with
strong links to—
(I) the job market; and
(II) local and regional employers.
(2) PROGRAM ELEMENTS.—The programs described in para-
graph (1) shall provide elements consisting of—
(A) tutoring, study skills training, and instruction,
leading to completion of secondary school, including dropout
prevention strategies;
(B) alternative secondary school services, as appro-
priate;
(C) summer employment opportunities that are directly
linked to academic and occupational learning;
(D) as appropriate, paid and unpaid work experiences,
including internships and job shadowing;
(E) occupational skill training, as appropriate;
(F) leadership development opportunities, which may
include community service and peer-centered activities
encouraging responsibility and other positive social behav-
iors during non-school hours, as appropriate;
(G) supportive services;
(H) adult mentoring for the period of participation
and a subsequent period, for a total of not less than 12
months;
(I) followup services for not less than 12 months after
the completion of participation, as appropriate; and
(J) comprehensive guidance and counseling, which may
include drug and alcohol abuse counseling and referral,
as appropriate.
(3) ADDITIONAL REQUIREMENTS.—
(A) INFORMATION AND REFERRALS.—Each local board
shall ensure that each participant or applicant who meets
H. R. 1385—46
the minimum income criteria to be considered an eligible
youth shall be provided—
(i) information on the full array of applicable or
appropriate services that are available through the
local board or other eligible providers or one-stop part-
ners, including those receiving funds under this sub-
title; and
(ii) referral to appropriate training and educational
programs that have the capacity to serve the partici-
pant or applicant either on a sequential or concurrent
basis.
(B) APPLICANTS NOT MEETING ENROLLMENT REQUIRE-
MENTS.—Each eligible provider of a program of youth activi-
ties shall ensure that an eligible applicant who does not
meet the enrollment requirements of the particular pro-
gram or who cannot be served shall be referred for further
assessment, as necessary, and referred to appropriate pro-
grams in accordance with subparagraph (A) to meet the
basic skills and training needs of the applicant.
(C) INVOLVEMENT IN DESIGN AND IMPLEMENTATION.—
The local board shall ensure that parents, participants,
and other members of the community with experience relat-
ing to programs for youth are involved in the design and
implementation of the programs described in paragraph
(1).
(4) PRIORITY.—
(A) IN GENERAL.—At a minimum, 30 percent of the
funds described in paragraph (1) shall be used to provide
youth activities to out-of-school youth.
(B) EXCEPTION.—A State that receives a minimum
allotment under section 127(b)(1) in accordance with section
127(b)(1)(C)(iv)(II) or under section 132(b)(1) in accordance
with section 132(b)(1)(B)(iv)(II) may reduce the percentage
described in subparagraph (A) for a local area in the State,
if—
(i) after an analysis of the eligible youth population
in the local area, the State determines that the local
area will be unable to meet the percentage described
in subparagraph (A) due to a low number of out-of-
school youth; and
(ii)(I) the State submits to the Secretary, for the
local area, a request including a proposed reduced
percentage for purposes of subparagraph (A), and the
summary of the eligible youth population analysis; and
(II) the request is approved by the Secretary.
(5) EXCEPTIONS.—Not more than 5 percent of participants
assisted under this section in each local area may be individuals
who do not meet the minimum income criteria to be considered
eligible youth, if such individuals are within one or more of
the following categories:
(A) Individuals who are school dropouts.
(B) Individuals who are basic skills deficient.
(C) Individuals with educational attainment that is
one or more grade levels below the grade level appropriate
to the age of the individuals.
(D) Individuals who are pregnant or parenting.
H. R. 1385—47
(E) Individuals with disabilities, including learning
disabilities.
(F) Individuals who are homeless or runaway youth.
(G) Individuals who are offenders.
(H) Other eligible youth who face serious barriers to
employment as identified by the local board.
(6) PROHIBITIONS.—
(A) PROHIBITION AGAINST FEDERAL CONTROL OF EDU-
CATION.—No provision of this Act shall be construed to
authorize any department, agency, officer, or employee of
the United States to exercise any direction, supervision,
or control over the curriculum, program of instruction,
administration, or personnel of any educational institution,
school, or school system, or over the selection of library
resources, textbooks, or other printed or published instruc-
tional materials by any educational institution, school, or
school system.
(B) NONDUPLICATION.—All of the funds made available
under this Act shall be used in accordance with the require-
ments of this Act. None of the funds made available under
this Act may be used to provide funding under the School-
to-Work Opportunities Act of 1994 (20 U.S.C. 6101 et seq.)
or to carry out, through programs funded under this Act,
activities that were funded under the School-to-Work
Opportunities Act of 1994, unless the programs funded
under this Act serve only those participants eligible to
participate in the programs under this Act.
(C) NONINTERFERENCE AND NONREPLACEMENT OF REGU-
LAR
ACADEMIC
REQUIREMENTS.—No funds described in
paragraph (1) shall be used to provide an activity for
eligible youth who are not school dropouts if participation
in the activity would interfere with or replace the regular
academic requirements of the youth.
(7) LINKAGES.—In coordinating the programs authorized
under this section, youth councils shall establish linkages with
educational agencies responsible for services to participants
as appropriate.
(8) VOLUNTEERS.—The local board shall make opportunities
available for individuals who have successfully participated
in programs carried out under this section to volunteer assist-
ance to participants in the form of mentoring, tutoring, and
other activities.
CHAPTER 5—ADULT AND DISLOCATED WORKER
EMPLOYMENT AND TRAINING ACTIVITIES
SEC. 131. GENERAL AUTHORIZATION.
The Secretary shall make allotments under paragraphs (1)(B)
and (2)(B) of section 132(b) to each State that meets the require-
ments of section 112 and a grant to each outlying area that complies
with the requirements of this title, to assist the State or outlying
area, and to enable the State or outlying area to assist local areas,
for the purpose of providing workforce investment activities for
adults, and dislocated workers, in the State or outlying area and
in the local areas.
H. R. 1385—48
SEC. 132. STATE ALLOTMENTS.
(a) IN GENERAL.—The Secretary shall—
(1) make allotments and grants from the total amount
appropriated under section 137(b) for a fiscal year in accordance
with subsection (b)(1); and
(2)(A) reserve 20 percent of the amount appropriated under
section 137(c) for a fiscal year for use under subsection (b)(2)(A),
and under sections 170(b) (relating to dislocated worker tech-
nical assistance), 171(d) (relating to dislocated worker projects),
and 173 (relating to national emergency grants); and
(B) make allotments from 80 percent of the amount appro-
priated under section 137(c) for a fiscal year in accordance
with subsection (b)(2)(B).
(b) ALLOTMENT AMONG STATES.—
(1) ADULT EMPLOYMENT AND TRAINING ACTIVITIES.—
(A) RESERVATION FOR OUTLYING AREAS.—
(i) IN GENERAL.—From the amount made available
under subsection (a)(1) for a fiscal year, the Secretary
shall reserve not more than 1⁄4 of 1 percent to provide
assistance to the outlying areas.
(ii) 
APPLICABILITY
OF
ADDITIONAL
REQUIRE-
MENTS.—From the amount reserved under clause (i),
the Secretary shall provide assistance to the outlying
areas for adult employment and training activities and
statewide workforce investment activities in accordance
with the requirements of section 127(b)(1)(B), except
that the reference in section 127(b)(1)(B)(i)(II) to sec-
tions 252(d) and 262(a)(1) of the Job Training Partner-
ship Act shall be deemed to be a reference to section
202(a)(1) of the Job Training Partnership Act (as in
effect on the day before the date of enactment of this
Act).
(B) STATES.—
(i) IN
GENERAL.—After determining the amount
to be reserved under subparagraph (A), the Secretary
shall allot the remainder of the amount referred to
in subsection (a)(1) for a fiscal year to the States pursu-
ant to clause (ii) for adult employment and training
activities and statewide workforce investment activi-
ties.
(ii) FORMULA.—Subject to clauses (iii) and (iv), of
the remainder—
(I) 331⁄3 percent shall be allotted on the basis
of the relative number of unemployed individuals
in areas of substantial unemployment in each
State, compared to the total number of unemployed
individuals in areas of substantial unemployment
in all States;
(II) 331⁄3 percent shall be allotted on the basis
of the relative excess number of unemployed
individuals in each State, compared to the total
excess number of unemployed individuals in all
States; and
(III) 331⁄3 percent shall be allotted on the basis
of the relative number of disadvantaged adults
in each State, compared to the total number of
H. R. 1385—49
disadvantaged adults in all States, except as
described in clause (iii).
(iii) CALCULATION.—In determining an allotment
under clause (ii)(III) for any State in which there is
a local area designated under section 116(a)(2)(B), the
allotment shall be based on the higher of—
(I) the number of adults in families with an
income below the low-income level in such area;
or
(II) the number of disadvantaged adults in
such area.
(iv) MINIMUM
AND
MAXIMUM
PERCENTAGES
AND
MINIMUM ALLOTMENTS.—In making allotments under
this subparagraph, the Secretary shall ensure the fol-
lowing:
(I) MINIMUM PERCENTAGE AND ALLOTMENT.—
Subject to subclause (IV), the Secretary shall
ensure that no State shall receive an allotment
for a fiscal year that is less than the greater of—
(aa) an amount based on 90 percent of
the allotment percentage of the State for the
preceding fiscal year; or
(bb) 100 percent of the allotment of the
State under section 202 of the Job Training
Partnership Act (as in effect on the day before
the date of enactment of this Act) for fiscal
year 1998.
(II) SMALL STATE MINIMUM ALLOTMENT.—Sub-
ject to subclauses (I), (III), and (IV), the Secretary
shall ensure that no State shall receive an allot-
ment under this subparagraph that is less than
the total of—
(aa) 3⁄10 of 1 percent of $960,000,000 of
the remainder described in clause (i) for the
fiscal year; and
(bb) if the remainder described in clause
(i) for the fiscal year exceeds $960,000,000,
2⁄5 of 1 percent of the excess.
(III) MAXIMUM PERCENTAGE.—Subject to sub-
clause (I), the Secretary shall ensure that no State
shall receive an allotment percentage for a fiscal
year that is more than 130 percent of the allotment
percentage of the State for the preceding fiscal
year.
(IV) MINIMUM FUNDING.—In any fiscal year
in which the remainder described in clause (i)
does not exceed $960,000,000, the minimum allot-
ments under subclauses (I) and (II) shall be cal-
culated by the methodology for calculating the cor-
responding allotments under part A of title II of
the Job Training Partnership Act, as in effect on
July 1, 1998.
(v) DEFINITIONS.—For the purpose of the formula
specified in this subparagraph:
(I) ADULT.—The term ‘‘adult’’ means an
individual who is not less than age 22 and not
more than age 72.
H. R. 1385—50
(II) 
ALLOTMENT
PERCENTAGE.—The 
term
‘‘allotment percentage’’, used with respect to fiscal
year 2000 or a subsequent fiscal year, means a
percentage of the remainder described in clause
(i) that is received through an allotment made
under this subparagraph for the fiscal year. The
term, used with respect to fiscal year 1998 or
1999, means the percentage of the amounts allot-
ted to States under section 202(a) of the Job Train-
ing Partnership Act (as in effect on the day before
the date of enactment of this Act) that is received
under such section by the State involved for fiscal
year 1998 or 1999.
(III) AREA OF SUBSTANTIAL UNEMPLOYMENT.—
The term ‘‘area of substantial unemployment’’
means any area that is of sufficient size and scope
to sustain a program of workforce investment
activities carried out under this subtitle and that
has an average rate of unemployment of at least
6.5 percent for the most recent 12 months, as
determined by the Secretary. For purposes of this
subclause, determinations of areas of substantial
unemployment shall be made once each fiscal year.
(IV) DISADVANTAGED ADULT.—Subject to sub-
clause (V), the term ‘‘disadvantaged adult’’ means
an adult who received an income, or is a member
of a family that received a total family income,
that, in relation to family size, does not exceed
the higher of—
(aa) the poverty line; or
(bb) 70 percent of the lower living stand-
ard income level.
(V) DISADVANTAGED
ADULT
SPECIAL
RULE.—
The Secretary shall, as appropriate and to the
extent practicable, exclude college students and
members of the Armed Forces from the determina-
tion of the number of disadvantaged adults.
(VI) EXCESS NUMBER.—The term ‘‘excess num-
ber’’ means, used with respect to the excess num-
ber of unemployed individuals within a State, the
higher of—
(aa) the number that represents the num-
ber of unemployed individuals in excess of 4.5
percent of the civilian labor force in the State;
or
(bb) the number that represents the num-
ber of unemployed individuals in excess of 4.5
percent of the civilian labor force in areas
of substantial unemployment in such State.
(2) DISLOCATED WORKER EMPLOYMENT AND TRAINING.—
(A) RESERVATION FOR OUTLYING AREAS.—
(i) IN GENERAL.—From the amount made available
under subsection (a)(2)(A) for a fiscal year, the Sec-
retary shall reserve not more than 1⁄4 of 1 percent
of the amount appropriated under section 137(c) for
the fiscal year to provide assistance to the outlying
areas.
H. R. 1385—51
(ii) 
APPLICABILITY
OF
ADDITIONAL
REQUIRE-
MENTS.—From the amount reserved under clause (i),
the Secretary shall provide assistance to the outlying
areas for dislocated worker employment and training
activities and statewide workforce investment activities
in accordance with the requirements of section
127(b)(1)(B), except that the reference in section
127(b)(1)(B)(i)(II) to sections 252(a) and 262(a)(1) of
the Job Training Partnership Act shall be deemed to
be a reference to section 302(e) of the Job Training
Partnership Act (as in effect on the day before the
date of enactment of this Act).
(B) STATES.—
(i) IN
GENERAL.—The Secretary shall allot the
amount referred to in subsection (a)(2)(B) for a fiscal
year to the States pursuant to clause (ii) for dislocated
worker employment and training activities and state-
wide workforce investment activities.
(ii) FORMULA.—Of the amount—
(I) 331⁄3 percent shall be allotted on the basis
of the relative number of unemployed individuals
in each State, compared to the total number of
unemployed individuals in all States;
(II) 331⁄3 percent shall be allotted on the basis
of the relative excess number of unemployed
individuals in each State, compared to the total
excess number of unemployed individuals in all
States; and
(III) 331⁄3 percent shall be allotted on the basis
of the relative number of individuals in each State
who have been unemployed for 15 weeks or more,
compared to the total number of individuals in
all States who have been unemployed for 15 weeks
or more.
(iii) DEFINITION.—In this subparagraph, the term
‘‘excess number’’ means, used with respect to the excess
number of unemployed individuals within a State, the
number that represents the number of unemployed
individuals in excess of 4.5 percent of the civilian labor
force in the State.
(3) DEFINITIONS.—For the purpose of the formulas specified
in this subsection:
(A) FREELY
ASSOCIATED
STATES.—The term ‘‘Freely
Associated States’’ means the Republic of the Marshall
Islands, the Federated States of Micronesia, and the Repub-
lic of Palau.
(B) LOW-INCOME LEVEL.—The term ‘‘low-income level’’
means $7,000 with respect to income in 1969, and for
any later year means that amount that bears the same
relationship to $7,000 as the Consumer Price Index for
that year bears to the Consumer Price Index for 1969,
rounded to the nearest $1,000.
(c) REALLOTMENT.—
(1) IN GENERAL.—The Secretary shall, in accordance with
this subsection, reallot to eligible States amounts that are
H. R. 1385—52
allotted under this section for employment and training activi-
ties and statewide workforce investment activities and that
are available for reallotment.
(2) AMOUNT.—The amount available for reallotment for
a program year is equal to the amount by which the unobligated
balance of the State allotments under this section for such
activities, at the end of the program year prior to the program
year for which the determination under this paragraph is made,
exceeds 20 percent of such allotments 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 this section for such activities for the prior program
year, as compared to the total amount allotted to all eligible
States under this section for such activities for such prior
program year.
(4) ELIGIBILITY.—For purposes of this subsection, an
eligible State means a State that has obligated at least 80
percent of the State allotment under this section for such
activities for the program year prior to the program year for
which the determination under paragraph (2) is made.
(5) PROCEDURES.—The Governor of each State shall pre-
scribe uniform procedures for the obligation of funds by local
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 local areas in the
event that a State is required to make funds available for
reallotment under this subsection.
SEC. 133. WITHIN STATE ALLOCATIONS.
(a) RESERVATIONS FOR STATE ACTIVITIES.—
(1) STATEWIDE WORKFORCE INVESTMENT ACTIVITIES.—The
Governor of a State shall make the reservation required under
section 128(a).
(2) STATEWIDE RAPID RESPONSE ACTIVITIES.—The Governor
of the State shall reserve not more than 25 percent of the
total amount allotted to the State under section 132(b)(2)(B)
for a fiscal year for statewide rapid response activities described
in section 134(a)(2)(A).
(b) WITHIN STATE ALLOCATION.—
(1) METHODS.—The Governor, acting in accordance with
the State plan, and after consulting with chief elected officials
in the local areas, shall allocate—
(A) the funds that are allotted to the State for adult
employment 
and 
training 
activities 
and 
statewide
workforce investment activities under section 132(b)(1)(B)
and are not reserved under subsection (a)(1), in accordance
with paragraph (2) or (3); and
(B) the funds that are allotted to the State for dis-
located worker employment and training activities under
section 132(b)(2)(B) and are not reserved under paragraph
(1) or (2) of subsection (a), in accordance with paragraph
(2).
(2) FORMULA ALLOCATIONS.—
H. R. 1385—53
(A) ADULT EMPLOYMENT AND TRAINING ACTIVITIES.—
(i) ALLOCATION.—In allocating the funds described
in paragraph (1)(A) to local areas, a State may
allocate—
(I) 331⁄3 percent of the funds on the basis
described in section 132(b)(1)(B)(ii)(I);
(II) 331⁄3 percent of the funds on the basis
described in section 132(b)(1)(B)(ii)(II); and
(III) 331⁄3 percent of the funds on the basis
described in clauses (ii)(III) and (iii) of section
132(b)(1)(B).
(ii) MINIMUM PERCENTAGE.—Effective at the end
of the second full fiscal year after the date on which
a local area is designated under section 116, the local
area shall not receive an allocation percentage for a
fiscal year that is less than 90 percent of the average
allocation percentage of the local area for the 2 preced-
ing fiscal years. Amounts necessary for increasing such
allocations to local areas to comply with the preceding
sentence shall be obtained by ratably reducing the
allocations to be made to other local areas under this
subparagraph.
(iii) DEFINITION.—The term ‘‘allocation percent-
age’’, used with respect to fiscal year 2000 or a subse-
quent fiscal year, means a percentage of the funds
referred to in clause (i), received through an allocation
made under this subparagraph, for the fiscal year.
(B) DISLOCATED WORKER EMPLOYMENT AND TRAINING
ACTIVITIES.—
(i) FORMULA.—In allocating the funds described
in paragraph (1)(B) to local areas, a State shall allocate
the funds based on an allocation formula prescribed
by the Governor of the State. Such formula may be
amended by the Governor not more than once for each
program year. Such formula shall utilize the most
appropriate information available to the Governor to
distribute amounts to address the State’s worker
readjustment assistance needs.
(ii) INFORMATION.—The information described in
clause (i) shall include insured unemployment data,
unemployment concentrations, plant closing and mass
layoff data, declining industries data, farmer-rancher
economic hardship data, and long-term unemployment
data.
(C) APPLICATION.—For purposes of carrying out
subparagraph (A)—
(i) references in section 132(b) to a State shall
be deemed to be references to a local area;
(ii) references in section 132(b) to all States shall
be deemed to be references to all local areas in the
State involved; and
(iii) except as described in clause (i), references
in section 132(b)(1) to the term ‘‘excess number’’ shall
be considered to be references to the term as defined
in section 132(b)(1).
(3) ADULT
EMPLOYMENT
AND
TRAINING
DISCRETIONARY
ALLOCATIONS.—In lieu of making the allocation described in
H. R. 1385—54
paragraph (2)(A), in allocating the funds described in paragraph
(1)(A) to local areas, a State may distribute—
(A) a portion equal to not less than 70 percent of
the funds in accordance with paragraph (2)(A); and
(B) the remaining portion of the funds on the basis
of a formula that—
(i) incorporates additional factors (other than the
factors described in paragraph (2)(A)) relating to—
(I) excess poverty in urban, rural, and subur-
ban local areas; and
(II) excess unemployment above the State
average in urban, rural, and suburban local areas;
and
(ii) was developed by the State board and approved
by the Secretary as part of the State plan.
(4) TRANSFER AUTHORITY.—A local board may transfer, if
such a transfer is approved by the Governor, not more than
20 percent of the funds allocated to the local area under para-
graph (2)(A) or (3), and 20 percent of the funds allocated to
the local area under paragraph (2)(B), for a fiscal year
between—
(A) adult employment and training activities; and
(B) dislocated worker employment and training
activities.
(5) ALLOCATION.—
(A) IN GENERAL.—The Governor of the State shall allo-
cate the funds described in paragraph (1) to local areas
under paragraphs (2) and (3) for the purpose of providing
a single system of employment and training activities for
adults and dislocated workers in accordance with sub-
sections (d) and (e) of section 134.
(B) ADDITIONAL REQUIREMENTS.—
(i) ADULTS.—Funds allocated under paragraph
(2)(A) or (3) shall be used by a local area to contribute
proportionately to the costs of the one-stop delivery
system described in section 134(c) in the local area,
and to pay for employment and training activities pro-
vided to adults in the local area, consistent with section
134.
(ii) DISLOCATED WORKERS.—Funds allocated under
paragraph (2)(B) shall be used by a local area to
contribute proportionately to the costs of the one-stop
delivery system described in section 134(c) in the local
area, and to pay for employment and training activities
provided to dislocated workers in the local area,
consistent with section 134.
(c) REALLOCATION AMONG LOCAL AREAS.—
(1) IN GENERAL.—The Governor may, in accordance with
this subsection, reallocate to eligible local areas within the
State amounts that are allocated under paragraph (2)(A) or
(3) of subsection (b) for adult employment and training activities
and that are available for reallocation.
(2) AMOUNT.—The amount available for reallocation for
a program year is equal to the amount by which the unobligated
balance of the local area allocation under paragraph (2)(A)
or (3) of subsection (b) for such activities, at the end of the
H. R. 1385—55
program year prior to the program year for which the deter-
mination under this paragraph is made exceeds 20 percent
of such allocation for the prior program year.
(3) REALLOCATION.—In making reallocations to eligible local
areas of amounts available pursuant to paragraph (2) for a
program year, the Governor shall allocate to each eligible local
area within the State an amount based on the relative amount
allocated to such local area under subsection (b)(3) for such
activities for the prior program year, as compared to the total
amount allocated to all eligible local areas in the State under
subsection (b)(3) for such activities for such prior program
year. For purposes of this paragraph, local areas that received
allocations under subsection (b)(2)(A) for the prior program
year shall be treated as if the local areas received allocations
under subsection (b)(3) for such year.
(4) ELIGIBILITY.—For purposes of this subsection, an
eligible local area means a local area that has obligated at
least 80 percent of the local area allocation under paragraph
(2)(A) or (3) of subsection (b) for such activities, for the program
year prior to the program year for which the determination
under paragraph (2) is made.
SEC. 134. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVI-
TIES.
(a) STATEWIDE EMPLOYMENT AND TRAINING ACTIVITIES.—
(1) IN
GENERAL.—Funds reserved by a Governor for a
State—
(A) as described in section 133(a)(2) shall be used to
carry out the statewide rapid response activities described
in paragraph (2)(A); and
(B) as described in sections 128(a) and 133(a)(1)—
(i) shall be used to carry out the statewide employ-
ment and training activities described in paragraph
(2)(B); and
(ii) may be used to carry out any of the statewide
employment and training activities described in para-
graph (3),
regardless of whether the funds were allotted to the State
under section 127(b)(1) or under paragraph (1) or (2) of
section 132(b).
(2) REQUIRED
STATEWIDE
EMPLOYMENT
AND
TRAINING
ACTIVITIES.—
(A) STATEWIDE RAPID RESPONSE ACTIVITIES.—A State
shall use funds reserved as described in section 133(a)(2)
to carry out statewide rapid response activities, which shall
include—
(i) provision of rapid response activities, carried
out in local areas by the State or by an entity des-
ignated by the State, working in conjunction with the
local boards and the chief elected officials in the local
areas; and
(ii) provision of additional assistance to local areas
that experience disasters, mass layoffs or plant clos-
ings, or other events that precipitate substantial
increases in the number of unemployed individuals,
carried out in local areas by the State or by an entity
designated by the State, working in conjunction with
H. R. 1385—56
the local boards and the chief elected officials in the
local areas.
(B) OTHER
REQUIRED
STATEWIDE
EMPLOYMENT
AND
TRAINING
ACTIVITIES.—A State shall use funds reserved
as described in sections 128(a) and 133(a)(1) (regardless
of whether the funds were allotted to the State under
section 127(b)(1) or paragraph (1) or (2) of section 132(b))
to carry out other statewide employment and training
activities, which shall include—
(i) disseminating the State list of eligible providers
of training services, including eligible providers of non-
traditional training services, information identifying
eligible providers of on-the-job training and customized
training, and performance information and program
cost information, as described in subsections (e) and
(h) of section 122;
(ii) conducting evaluations, under section 136(e),
of activities authorized in this section, in coordination
with the activities carried out under section 172;
(iii) providing incentive grants to local areas for
regional cooperation among local boards (including
local boards for a designated region as described in
section 116(c)), for local coordination of activities car-
ried out under this Act, and for exemplary performance
by local areas on the local performance measures;
(iv) providing technical assistance to local areas
that fail to meet local performance measures;
(v) assisting in the establishment and operation
of one-stop delivery systems described in subsection
(c); and
(vi) operating a fiscal and management account-
ability information system under section 136(f ).
(3) ALLOWABLE
STATEWIDE
EMPLOYMENT
AND
TRAINING
ACTIVITIES.—
(A) IN GENERAL.—A State may use funds reserved as
described in sections 128(a) and 133(a)(1) (regardless of
whether the funds were allotted to the State under section
127(b)(1) or paragraph (1) or (2) of section 132(b)) to carry
out additional statewide employment and training activi-
ties, which may include—
(i) subject to subparagraph (B), administration by
the State of the activities authorized under this section;
(ii) provision of capacity building and technical
assistance to local areas, one-stop operators, one-stop
partners, and eligible providers, including the develop-
ment and training of staff and the development of
exemplary program activities;
(iii) conduct of research and demonstrations;
(iv)(I) implementation of innovative incumbent
worker training programs, which may include the
establishment and implementation of an employer loan
program to assist in skills upgrading; and
(II) the establishment and implementation of pro-
grams targeted to empowerment zones and enterprise
communities;
(v) support for the identification of eligible provid-
ers of training services as required under section 122;
H. R. 1385—57
(vi)(I) implementation of innovative programs for
displaced homemakers, which for purposes of this
subclause may include an individual who is receiving
public assistance and is within 2 years of exhausting
lifetime eligibility under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.); and
(II) implementation of programs to increase the
number of individuals training for and placed in non-
traditional employment; and
(vii) carrying out other activities authorized in this
section that the State determines to be necessary to
assist local areas in carrying out activities described
in subsection (d) or (e) through the statewide workforce
investment system.
(B) LIMITATION.—
(i) IN GENERAL.—Of the funds allotted to a State
under sections 127(b) and 132(b) and reserved as
described in sections 128(a) and 133(a)(1) for a fiscal
year—
(I) not more than 5 percent of the amount
allotted under section 127(b)(1);
(II) not more than 5 percent of the amount
allotted under section 132(b)(1); and
(III) not more than 5 percent of the amount
allotted under section 132(b)(2),
may be used by the State for the administration of
youth activities carried out under section 129 and
employment and training activities carried out under
this section.
(ii) USE
OF
FUNDS.—Funds made available for
administrative costs under clause (i) may be used for
the administrative cost of any of the statewide youth
activities or statewide employment and training activi-
ties, regardless of whether the funds were allotted
to the State under section 127(b)(1) or paragraph (1)
or (2) of section 132(b).
(b) LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.—Funds allo-
cated to a local area for adults under paragraph (2)(A) or (3),
as appropriate, of section 133(b), and funds allocated to a local
area for dislocated workers under section 133(b)(2)(B)—
(1) shall be used to carry out employment and training
activities described in subsection (d) for adults or dislocated
workers, respectively; and
(2) may be used to carry out employment and training
activities described in subsection (e) for adults or dislocated
workers, respectively.
(c) ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEM.—
(1) IN GENERAL.—There shall be established in a State
that receives an allotment under section 132(b) a one-stop
delivery system, which—
(A) shall provide the core services described in
subsection (d)(2);
(B) shall provide access to intensive services and train-
ing services as described in paragraphs (3) and (4) of sub-
section (d), including serving as the point of access to
individual training accounts for training services to partici-
pants in accordance with subsection (d)(4)(G);
H. R. 1385—58
(C) shall provide access to the activities carried out
under subsection (e), if any;
(D) shall provide access to programs and activities
carried out by one-stop partners and described in section
121(b); and
(E) shall provide access to the information described
in section 15 of the Wagner-Peyser Act and all job search,
placement, recruitment, and other labor exchange services
authorized under the Wagner-Peyser Act (29 U.S.C. 49
et seq.).
(2) ONE-STOP
DELIVERY.—At a minimum, the one-stop
delivery system—
(A) shall make each of the programs, services, and
activities described in paragraph (1) accessible at not less
than one physical center in each local area of the State;
and
(B) may also make programs, services, and activities
described in paragraph (1) available—
(i) through a network of affiliated sites that can
provide one or more of the programs, services, and
activities to individuals; and
(ii) through a network of eligible one-stop
partners—
(I) in which each partner provides one or more
of the programs, services, and activities to such
individuals and is accessible at an affiliated site
that consists of a physical location or an electroni-
cally or technologically linked access point; and
(II) that assures individuals that information
on the availability of the core services will be
available regardless of where the individuals ini-
tially enter the statewide workforce investment
system, including information made available
through an access point described in subclause
(I).
(3) SPECIALIZED CENTERS.—The centers and sites described
in paragraph (2) may have a specialization in addressing special
needs, such as the needs of dislocated workers.
(d) REQUIRED LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.—
(1) IN GENERAL.—
(A) ALLOCATED FUNDS.—Funds allocated to a local area
for adults under paragraph (2)(A) or (3), as appropriate,
of section 133(b), and funds allocated to the local area
for dislocated workers under section 133(b)(2)(B), shall be
used—
(i) to establish a one-stop delivery system described
in subsection (c);
(ii) to provide the core services described in para-
graph (2) to adults and dislocated workers, respec-
tively, through the one-stop delivery system in accord-
ance with such paragraph;
(iii) to provide the intensive services described in
paragraph (3) to adults and dislocated workers, respec-
tively, described in such paragraph; and
(iv) to provide training services described in para-
graph (4) to adults and dislocated workers, respec-
tively, described in such paragraph.
H. R. 1385—59
(B) OTHER FUNDS.—A portion of the funds made avail-
able under Federal law authorizing the programs and
activities described in section 121(b)(1)(B), including the
Wagner-Peyser Act (29 U.S.C. 49 et seq.), shall be used
as described in clauses (i) and (ii) of subparagraph (A),
to the extent not inconsistent with the Federal law
involved.
(2) CORE SERVICES.—Funds described in paragraph (1)(A)
shall be used to provide core services, which shall be available
to individuals who are adults or dislocated workers through
the one-stop delivery system and shall, at a minimum, include—
(A) determinations of whether the individuals are
eligible to receive assistance under this subtitle;
(B) outreach, intake (which may include worker
profiling), and orientation to the information and other
services available through the one-stop delivery system;
(C) initial assessment of skill levels, aptitudes, abili-
ties, and supportive service needs;
(D) job search and placement assistance, and where
appropriate, career counseling;
(E) provision of employment statistics information,
including the provision of accurate information relating
to local, regional, and national labor market areas,
including—
(i) job vacancy listings in such labor market areas;
(ii) information on job skills necessary to obtain
the jobs described in clause (i); and
(iii) information relating to local occupations in
demand and the earnings and skill requirements for
such occupations; and
(F) provision of performance information and program
cost information on eligible providers of training services
as described in section 122, provided by program, and
eligible providers of youth activities described in section
123, providers of adult education described in title II,
providers of postsecondary vocational education activities
and vocational education activities available to school drop-
outs under the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2301 et seq.), and
providers of vocational rehabilitation program activities
described in title I of the Rehabilitation Act of 1973 (29
U.S.C. 720 et seq.);
(G) provision of information regarding how the local
area is performing on the local performance measures and
any additional performance information with respect to
the one-stop delivery system in the local area;
(H) provision of accurate information relating to the
availability of supportive services, including child care and
transportation, available in the local area, and referral
to such services, as appropriate;
(I) provision of information regarding filing claims for
unemployment compensation;
(J) assistance in establishing eligibility for—
(i) welfare-to-work activities authorized under sec-
tion 403(a)(5) of the Social Security Act (as added
by section 5001 of the Balanced Budget Act of 1997)
available in the local area; and
H. R. 1385—60
(ii) programs of financial aid assistance for training
and education programs that are not funded under
this Act and are available in the local area; and
(K) followup services, including counseling regarding
the workplace, for participants in workforce investment
activities authorized under this subtitle who are placed
in unsubsidized employment, for not less than 12 months
after the first day of the employment, as appropriate.
(3) INTENSIVE SERVICES.—
(A) IN GENERAL.—Funds allocated to a local area for
adults under paragraph (2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to the local area for
dislocated workers under section 133(b)(2)(B), shall be used
to provide intensive services to adults and dislocated work-
ers, respectively—
(i)(I) who are unemployed and are unable to obtain
employment through core services provided under
paragraph (2); and
(II) who have been determined by a one-stop opera-
tor to be in need of more intensive services in order
to obtain employment; or
(ii) who are employed, but who are determined
by a one-stop operator to be in need of such intensive
services in order to obtain or retain employment that
allows for self-sufficiency.
(B) DELIVERY OF SERVICES.—Such intensive services
shall be provided through the one-stop delivery system—
(i) directly through one-stop operators identified
pursuant to section 121(d); or
(ii) through contracts with service providers, which
may include contracts with public, private for-profit,
and private nonprofit service providers, approved by
the local board.
(C) TYPES OF SERVICES.—Such intensive services may
include the following:
(i) Comprehensive and specialized assessments of
the skill levels and service needs of adults and dis-
located workers, which may include—
(I) diagnostic testing and use of other assess-
ment tools; and
(II) in-depth interviewing and evaluation to
identify employment barriers and appropriate
employment goals.
(ii) Development of an individual employment plan,
to identify the employment goals, appropriate achieve-
ment objectives, and appropriate combination of serv-
ices for the participant to achieve the employment
goals.
(iii) Group counseling.
(iv) Individual counseling and career planning.
(v) Case management for participants seeking
training services under paragraph (4).
(vi) Short-term prevocational services, including
development of learning skills, communication skills,
interviewing skills, punctuality, personal maintenance
skills, and professional conduct, to prepare individuals
for unsubsidized employment or training.
H. R. 1385—61
(4) TRAINING SERVICES.—
(A) IN GENERAL.—Funds allocated to a local area for
adults under paragraph (2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to a local area for dis-
located workers under section 133(b)(2)(B) shall be used
to provide training services to adults and dislocated work-
ers, respectively—
(i) who have met the eligibility requirements for
intensive services under paragraph (3)(A) and who are
unable to obtain or retain employment through such
services;
(ii) who after an interview, evaluation, or assess-
ment, and case management, have been determined
by a one-stop operator or one-stop partner, as appro-
priate, to be in need of training services and to have
the skills and qualifications to successfully participate
in the selected program of training services;
(iii) who select programs of training services that
are directly linked to the employment opportunities
in the local area involved or in another area in which
the adults or dislocated workers receiving such services
are willing to relocate;
(iv) who meet the requirements of subparagraph
(B); and
(v) who are determined to be eligible in accordance
with the priority system, if any, in effect under
subparagraph (E).
(B) QUALIFICATION.—
(i) REQUIREMENT.—Except as provided in clause
(ii), provision of such training services shall be limited
to individuals who—
(I) are unable to obtain other grant assistance
for such services, including Federal Pell Grants
established under title IV of the Higher Education
Act of 1965 (20 U.S.C. 1070 et seq.); or
(II) require assistance beyond the assistance
made available under other grant assistance pro-
grams, including Federal Pell Grants.
(ii) REIMBURSEMENTS.—Training services may be
provided under this paragraph to an individual who
otherwise meets the requirements of this paragraph
while an application for a Federal Pell Grant is pend-
ing, except that if such individual is subsequently
awarded a Federal Pell Grant, appropriate reimburse-
ment shall be made to the local area from such Federal
Pell Grant.
(C) PROVIDER QUALIFICATION.—Training services shall
be provided through providers identified in accordance with
section 122.
(D) 
TRAINING
SERVICES.—Training 
services 
may
include—
(i) occupational skills training, including training
for nontraditional employment;
(ii) on-the-job training;
(iii) programs that combine workplace training
with related instruction, which may include cooperative
education programs;
H. R. 1385—62
(iv) training programs operated by the private
sector;
(v) skill upgrading and retraining;
(vi) entrepreneurial training;
(vii) job readiness training;
(viii) adult education and literacy activities
provided in combination with services described in any
of clauses (i) through (vii); and
(ix) customized training conducted with a commit-
ment by an employer or group of employers to employ
an individual upon successful completion of the train-
ing.
(E) PRIORITY.—In the event that funds allocated to
a local area for adult employment and training activities
under paragraph (2)(A) or (3) of section 133(b) are limited,
priority shall be given to recipients of public assistance
and other low-income individuals for intensive services and
training services. The appropriate local board and the Gov-
ernor shall direct the one-stop operators in the local area
with regard to making determinations related to such prior-
ity.
(F) CONSUMER CHOICE REQUIREMENTS.—
(i) IN GENERAL.—Training services provided under
this paragraph shall be provided in a manner that
maximizes consumer choice in the selection of an
eligible provider of such services.
(ii) 
ELIGIBLE
PROVIDERS.—Each 
local 
board,
through one-stop centers referred to in subsection (c),
shall make available—
(I) the State list of eligible providers of train-
ing services required under section 122(e), with
a description of the programs through which the
providers may offer the training services, and the
information identifying eligible providers of on-the-
job training and customized training required
under section 122(h); and
(II) the performance information and perform-
ance cost information relating to eligible providers
of training services described in subsections (e)
and (h) of section 122.
(G) USE OF INDIVIDUAL TRAINING ACCOUNTS.—
(i) IN GENERAL.—Except as provided in clause (ii),
training services provided under this paragraph shall
be provided through the use of individual training
accounts in accordance with this paragraph, and shall
be provided to eligible individuals through the one-
stop delivery system.
(ii) EXCEPTIONS.—Training services authorized
under this paragraph may be provided pursuant to
a contract for services in lieu of an individual training
account if the requirements of subparagraph (F) are
met and if—
(I) such services are on-the-job training pro-
vided by an employer or customized training;
(II) the local board determines there are an
insufficient number of eligible providers of training
services in the local area involved (such as in
H. R. 1385—63
a rural area) to accomplish the purposes of a sys-
tem of individual training accounts; or
(III) the local board determines that there is
a training services program of demonstrated
effectiveness offered in the local area by a commu-
nity-based 
organization 
or 
another 
private
organization to serve special participant popu-
lations that face multiple barriers to employment.
(iii) LINKAGE TO OCCUPATIONS IN DEMAND.—Train-
ing services provided under this paragraph shall be
directly linked to occupations that are in demand in
the local area, or in another area to which an adult
or dislocated worker receiving such services is willing
to relocate, except that a local board may approve
training services for occupations determined by the
local board to be in sectors of the economy that have
a high potential for sustained demand or growth in
the local area.
(iv) DEFINITION.—In this subparagraph, the term
‘‘special participant population that faces multiple bar-
riers to employment’’ means a population of low-income
individuals that is included in one or more of the
following categories:
(I) Individuals with substantial language or
cultural barriers.
(II) Offenders.
(III) Homeless individuals.
(IV) 
Other 
hard-to-serve 
populations 
as
defined by the Governor involved.
(e) 
PERMISSIBLE
LOCAL
EMPLOYMENT
AND
TRAINING
ACTIVITIES.—
(1) DISCRETIONARY ONE-STOP DELIVERY ACTIVITIES.—Funds
allocated to a local area for adults under paragraph (2)(A)
or (3), as appropriate, of section 133(b), and funds allocated
to the local area for dislocated workers under section
133(b)(2)(B), may be used to provide, through one-stop delivery
described in subsection (c)(2)—
(A) customized screening and referral of qualified
participants in training services described in subsection
(d)(4) to employment; and
(B) customized employment-related services to employ-
ers on a fee-for-service basis.
(2) SUPPORTIVE SERVICES.—Funds allocated to a local area
for adults under paragraph (2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to the local area for dis-
located workers under section 133(b)(2)(B), may be used to
provide supportive services to adults and dislocated workers,
respectively—
(A) who are participating in programs with activities
authorized in any of paragraphs (2), (3), or (4) of subsection
(d); and
(B) who are unable to obtain such supportive services
through other programs providing such services.
(3) NEEDS-RELATED PAYMENTS.—
(A) IN GENERAL.—Funds allocated to a local area for
adults under paragraph (2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to the local area for
H. R. 1385—64
dislocated workers under section 133(b)(2)(B), may be used
to provide needs-related payments to adults and dislocated
workers, respectively, who are unemployed and do not qual-
ify for (or have ceased to qualify for) unemployment com-
pensation for the purpose of enabling such individuals to
participate in programs of training services under sub-
section (d)(4).
(B) ADDITIONAL ELIGIBILITY REQUIREMENTS.—In addi-
tion to the requirements contained in subparagraph (A),
a dislocated worker who has ceased to qualify for unemploy-
ment compensation may be eligible to receive needs-related
payments under this paragraph only if such worker was
enrolled in the training services—
(i) by the end of the 13th week after the most
recent layoff that resulted in a determination of the
worker’s eligibility for employment and training activi-
ties for dislocated workers under this subtitle; or
(ii) if later, by the end of the 8th week after the
worker is informed that a short-term layoff will exceed
6 months.
(C) LEVEL OF PAYMENTS.—The level of a needs-related
payment made to a dislocated worker under this paragraph
shall not exceed the greater of—
(i) the applicable level of unemployment compensa-
tion; or
(ii) if such worker did not qualify for unemploy-
ment compensation, an amount equal to the poverty
line, for an equivalent period, which amount shall be
adjusted to reflect changes in total family income.
CHAPTER 6—GENERAL PROVISIONS
SEC. 136. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) PURPOSE.—The purpose of this section is to establish a
comprehensive performance accountability system, comprised of the
activities described in this section, to assess the effectiveness of
States and local areas in achieving continuous improvement of
workforce investment activities funded under this subtitle, in order
to optimize the return on investment of Federal funds in statewide
and local workforce investment activities.
(b) STATE PERFORMANCE MEASURES.—
(1) IN GENERAL.—For each State, the State performance
measures shall consist of—
(A)(i) the core indicators of performance described in
paragraph (2)(A) and the customer satisfaction indicator
of performance described in paragraph (2)(B); and
(ii) additional indicators of performance (if any) identi-
fied by the State under paragraph (2)(C); and
(B) a State adjusted level of performance for each
indicator described in subparagraph (A).
(2) INDICATORS OF PERFORMANCE.—
(A) CORE INDICATORS OF PERFORMANCE.—
(i) IN GENERAL.—The core indicators of perform-
ance for employment and training activities authorized
under section 134 (except for self-service and informa-
tional activities) and (for participants who are eligible
H. R. 1385—65
youth age 19 through 21) for youth activities author-
ized under section 129 shall consist of—
(I) entry into unsubsidized employment;
(II) retention in unsubsidized employment 6
months after entry into the employment;
(III) earnings received in unsubsidized employ-
ment 6 months after entry into the employment;
and
(IV) attainment of a recognized credential
relating to achievement of educational skills, which
may include attainment of a secondary school
diploma or its recognized equivalent, or occupa-
tional skills, by participants who enter unsub-
sidized employment, or by participants who are
eligible youth age 19 through 21 who enter post-
secondary education, advanced training, or unsub-
sidized employment.
(ii) CORE INDICATORS FOR ELIGIBLE YOUTH.—The
core indicators of performance (for participants who
are eligible youth age 14 through 18) for youth activi-
ties authorized under section 129, shall include—
(I) attainment of basic skills and, as appro-
priate, work readiness or occupational skills;
(II) attainment of secondary school diplomas
and their recognized equivalents; and
(III) placement and retention in postsecondary
education or advanced training, or placement and
retention in military service, employment, or quali-
fied apprenticeships.
(B) CUSTOMER
SATISFACTION
INDICATORS.—The cus-
tomer satisfaction indicator of performance shall consist
of customer satisfaction of employers and participants with
services received from the workforce investment activities
authorized under this subtitle. Customer satisfaction may
be measured through surveys conducted after the conclu-
sion of participation in the workforce investment activities.
(C) ADDITIONAL INDICATORS.—A State may identify in
the State plan additional indicators for workforce invest-
ment activities authorized under this subtitle.
(3) LEVELS OF PERFORMANCE.—
(A) STATE
ADJUSTED
LEVELS
OF
PERFORMANCE
FOR
CORE
INDICATORS
AND
CUSTOMER
SATISFACTION
INDICA-
TOR.—
(i) IN GENERAL.—For each State submitting a State
plan, there shall be established, in accordance with
this subparagraph, levels of performance for each of
the core indicators of performance described in para-
graph (2)(A) and the customer satisfaction indicator
described in paragraph (2)(B) for workforce investment
activities authorized under this subtitle. The levels
of performance established under this subparagraph
shall, at a minimum—
(I) be expressed in an objective, quantifiable,
and measurable form; and
(II) show the progress of the State toward
continuously improving in performance.
H. R. 1385—66
(ii) IDENTIFICATION
IN
STATE
PLAN.—Each State
shall identify, in the State plan submitted under sec-
tion 112, expected levels of performance for each of
the core indicators of performance and the customer
satisfaction indicator of performance, for the first 3
program years covered by the State plan.
(iii) AGREEMENT ON STATE ADJUSTED LEVELS OF
PERFORMANCE FOR FIRST 3 YEARS.—In order to ensure
an optimal return on the investment of Federal funds
in workforce investment activities authorized under
this subtitle, the Secretary and each Governor shall
reach agreement on levels of performance for each
of the core indicators of performance and the customer
satisfaction indicator of performance, for the first 3
program years covered by the State plan, taking into
account the levels identified in the State plan under
clause (ii) and the factors described in clause (iv).
The levels agreed to under this clause shall be consid-
ered to be the State adjusted levels of performance
for the State for such years and shall be incorporated
into the State plan prior to the approval of such plan.
(iv) FACTORS.—The agreement described in clause
(iii) or (v) shall take into account—
(I) the extent to which the levels involved will
assist the State in attaining a high level of cus-
tomer satisfaction;
(II) how the levels involved compare with the
State adjusted levels of performance established
for other States, taking into account factors includ-
ing 
differences 
in 
economic 
conditions, 
the
characteristics of participants when the partici-
pants entered the program, and the services to
be provided; and
(III) the extent to which such levels involved
promote continuous improvement in performance
on the performance measures by such State and
ensure optimal return on the investment of Federal
funds.
(v) AGREEMENT
ON
STATE
ADJUSTED
LEVELS
OF
PERFORMANCE FOR 4TH AND 5TH YEARS.—Prior to the
4th program year covered by the State plan, the Sec-
retary and each Governor shall reach agreement on
levels of performance for each of the core indicators
of performance and the customer satisfaction indicator
of performance, for the 4th and 5th program years
covered by the State plan, taking into account the
factors described in clause (iv). The levels agreed to
under this clause shall be considered to be the State
adjusted levels of performance for the State for such
years and shall be incorporated into the State plan.
(vi) REVISIONS.—If unanticipated circumstances
arise in a State resulting in a significant change in
the factors described in clause (iv)(II), the Governor
may request that the State adjusted levels of perform-
ance agreed to under clause (iii) or (v) be revised.
H. R. 1385—67
The Secretary, after collaboration with the representa-
tives described in subsection (i), shall issue objective
criteria and methods for making such revisions.
(B) LEVELS OF PERFORMANCE FOR ADDITIONAL INDICA-
TORS.—The State may identify, in the State plan, State
levels of performance for each of the additional indicators
described in paragraph (2)(C). Such levels shall be consid-
ered to be State adjusted levels of performance for purposes
of this title.
(c) LOCAL PERFORMANCE MEASURES.—
(1) IN GENERAL.—For each local area in a State, the local
performance measures shall consist of—
(A)(i) the core indicators of performance described in
subsection (b)(2)(A), and the customer satisfaction indicator
of performance described in subsection (b)(2)(B), for activi-
ties described in such subsections, other than statewide
workforce investment activities; and
(ii) additional indicators of performance (if any) identi-
fied by the State under subsection (b)(2)(C) for activities
described in such subsection, other than statewide
workforce investment activities; and
(B) a local level of performance for each indicator
described in subparagraph (A).
(2) LOCAL LEVEL OF PERFORMANCE.—The local board, the
chief elected official, and the Governor shall negotiate and
reach agreement on the local levels of performance based on
the State adjusted levels of performance established under sub-
section (b).
(3) DETERMINATIONS.—In determining such local levels of
performance, the local board, the chief elected official, and
the Governor shall take into account the specific economic,
demographic, and other characteristics of the populations to
be served in the local area.
(d) REPORT.—
(1) IN GENERAL.—Each State that receives an allotment
under section 127 or 132 shall annually prepare and submit
to the Secretary a report on the progress of the State in achiev-
ing State performance measures, including information on the
levels of performance achieved by the State with respect to
the core indicators of performance and the customer satisfaction
indicator. The annual report also shall include information
regarding the progress of local areas in the State in achieving
local performance measures, including information on the levels
of performance achieved by the areas with respect to the core
indicators of performance and the customer satisfaction indica-
tor. The report also shall include information on the status
of State evaluations of workforce investment activities described
in subsection (e).
(2) ADDITIONAL INFORMATION.—In preparing such report,
the State shall include, at a minimum, information on partici-
pants in workforce investment activities authorized under this
subtitle relating to—
(A) entry by participants who have completed training
services provided under section 134(d)(4) into unsubsidized
employment related to the training received;
H. R. 1385—68
(B) wages at entry into employment for participants
in workforce investment activities who entered unsub-
sidized employment, including the rate of wage replacement
for such participants who are dislocated workers;
(C) cost of workforce investment activities relative to
the effect of the activities on the performance of partici-
pants;
(D) retention and earnings received in unsubsidized
employment 12 months after entry into the employment;
(E) performance with respect to the indicators of
performance specified in subsection (b)(2)(A) of participants
in workforce investment activities who received the training
services compared with the performance of participants
in workforce investment activities who received only serv-
ices other than the training services (excluding participants
who received only self-service and informational activities);
and
(F) performance with respect to the indicators of
performance specified in subsection (b)(2)(A) of recipients
of public assistance, out-of-school youth, veterans, individ-
uals with disabilities, displaced homemakers, and older
individuals.
(3) INFORMATION DISSEMINATION.—The Secretary—
(A) shall make the information contained in such
reports available to the general public through publication
and other appropriate methods;
(B) shall disseminate State-by-State comparisons of the
information; and
(C) shall provide the appropriate congressional commit-
tees with copies of such reports.
(e) EVALUATION OF STATE PROGRAMS.—
(1) IN GENERAL.—Using funds made available under this
subtitle, the State, in coordination with local boards in the
State, shall conduct ongoing evaluation studies of workforce
investment activities carried out in the State under this subtitle
in order to promote, establish, implement, and utilize methods
for continuously improving the activities in order to achieve
high-level performance within, and high-level outcomes from,
the statewide workforce investment system. To the maximum
extent practicable, the State shall coordinate the evaluations
with the evaluations provided for by the Secretary under section
172.
(2) DESIGN.—The evaluation studies conducted under this
subsection shall be designed in conjunction with the State
board and local boards and shall include analysis of customer
feedback and outcome and process measures in the statewide
workforce investment system. The studies may include use
of control groups.
(3) RESULTS.—The State shall periodically prepare and sub-
mit to the State board, and local boards in the State, reports
containing the results of evaluation studies conducted under
this subsection, to promote the efficiency and effectiveness of
the statewide workforce investment system in improving
employability for jobseekers and competitiveness for employers.
(f ) FISCAL AND MANAGEMENT ACCOUNTABILITY INFORMATION
SYSTEMS.—
H. R. 1385—69
(1) IN GENERAL.—Using funds made available under this
subtitle, the Governor, in coordination with local boards and
chief elected officials in the State, shall establish and operate
a fiscal and management accountability information system
based on guidelines established by the Secretary after consulta-
tion with the Governors, local elected officials, and one-stop
partners. Such guidelines shall promote efficient collection and
use of fiscal and management information for reporting and
monitoring the use of funds made available under this subtitle
and for preparing the annual report described in subsection
(d).
(2) WAGE RECORDS.—In measuring the progress of the State
on State and local performance measures, a State shall utilize
quarterly wage records, consistent with State law. The Sec-
retary shall make arrangements, consistent with State law,
to ensure that the wage records of any State are available
to any other State to the extent that such wage records are
required by the State in carrying out the State plan of the
State or completing the annual report described in subsection
(d).
(3) CONFIDENTIALITY.—In carrying out the requirements
of this Act, the State shall comply with section 444 of the
General Education Provisions Act (20 U.S.C. 1232g) (as added
by the Family Educational Rights and Privacy Act of 1974).
(g) SANCTIONS FOR STATE FAILURE TO MEET STATE PERFORM-
ANCE MEASURES.—
(1) STATES.—
(A) TECHNICAL ASSISTANCE.—If a State fails to meet
State adjusted levels of performance relating to indicators
described in subparagraph (A) or (B) of subsection (b)(2)
for a program for any program year, the Secretary shall,
upon request, provide technical assistance in accordance
with section 170, including assistance in the development
of a performance improvement plan.
(B) REDUCTION IN AMOUNT OF GRANT.—If such failure
continues for a second consecutive year, or if a State fails
to submit a report under subsection (d) for any program
year, the 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 program year. Such penalty
shall be based on the degree of failure to meet State
adjusted levels of performance.
(2) FUNDS RESULTING FROM REDUCED ALLOTMENTS.—The
Secretary shall use an amount retained, as a result of a reduc-
tion in an allotment to a State made under paragraph (1)(B),
to provide incentive grants under section 503.
(h) SANCTIONS
FOR LOCAL AREA FAILURE TO MEET LOCAL
PERFORMANCE MEASURES.—
(1) TECHNICAL ASSISTANCE.—If a local area fails to meet
levels of performance relating to indicators described in
subparagraph (A) or (B) of subsection (b)(2) for a program
for any program year, the Governor, or upon request by the
Governor, the Secretary, shall provide technical assistance,
which may include assistance in the development of a perform-
ance improvement plan, or the development of a modified local
plan.
H. R. 1385—70
(2) CORRECTIVE ACTIONS.—
(A) IN GENERAL.—If such failure continues for a second
consecutive year, the Governor shall take corrective actions,
which may include development of a reorganization plan
through which the Governor may—
(i) require the appointment and certification of
a new local board (consistent with the criteria estab-
lished under section 117(b));
(ii) prohibit the use of eligible providers and one-
stop partners identified as achieving a poor level of
performance; or
(iii) take such other actions as the Governor deter-
mines are appropriate.
(B) APPEAL BY LOCAL AREA.—
(i) APPEAL
TO
GOVERNOR.—A local area that is
subject to a reorganization plan under subparagraph
(A) may, not later than 30 days after receiving notice
of the reorganization plan, appeal to the Governor
to rescind or revise such plan. In such case, the Gov-
ernor shall make a final decision not later then 30
days after the receipt of the appeal.
(ii) SUBSEQUENT ACTION.—The local area may, not
later than 30 days after receiving a decision from the
Governor pursuant to clause (i), appeal such decision
to the Secretary. In such case, the Secretary shall
make a final decision not later than 30 days after
the receipt of the appeal.
(C) EFFECTIVE DATE.—The decision made by the Gov-
ernor under clause (i) of subparagraph (B) shall become
effective at the time the Governor issues the decision pursu-
ant to such clause. Such decision shall remain effective
unless the Secretary rescinds or revises such plan pursuant
to clause (ii) of subparagraph (B).
(i) OTHER MEASURES AND TERMINOLOGY.—
(1) RESPONSIBILITIES.—In order to ensure nationwide com-
parability of performance data, the Secretary, after collabora-
tion with representatives of appropriate Federal agencies, and
representatives of States and political subdivisions, business
and industry, employees, eligible providers of employment and
training activities, educators, and participants, with expertise
regarding workforce investment policies and workforce invest-
ment activities, shall issue—
(A) definitions for information required to be reported
under subsection (d)(2);
(B) terms for a menu of additional indicators of
performance described in subsection (b)(2)(C) to assist
States in assessing their progress toward State workforce
investment goals; and
(C) objective criteria and methods described in sub-
section (b)(3)(A)(vi) for making revisions to levels of
performance.
(2) DEFINITIONS FOR CORE INDICATORS.—The Secretary and
the representatives described in paragraph (1) shall participate
in the activities described in section 502 concerning the issuance
of definitions for indicators of performance described in sub-
section (b)(2)(A).
H. R. 1385—71
(3) ASSISTANCE.—The Secretary shall make the services
of staff available to the representatives to assist the representa-
tives in participating in the collaboration described in para-
graph (1) and in the activities described in section 502.
SEC. 137. AUTHORIZATION OF APPROPRIATIONS.
(a) YOUTH ACTIVITIES.—There are authorized to be appropriated
to carry out the activities described in section 127(a), such sums
as may be necessary for each of fiscal years 1999 through 2003.
(b) ADULT EMPLOYMENT AND TRAINING ACTIVITIES.—There are
authorized to be appropriated to carry out the activities described
in section 132(a)(1), such sums as may be necessary for each of
fiscal years 1999 through 2003.
(c) DISLOCATED WORKER EMPLOYMENT AND TRAINING ACTIVI-
TIES.—There are authorized to be appropriated to carry out the
activities described in section 132(a)(2), such sums as may be nec-
essary for each of fiscal years 1999 through 2003.
Subtitle C—Job Corps
SEC. 141. PURPOSES.
The purposes of this subtitle are—
(1) to maintain a national Job Corps program, carried
out in partnership with States and communities, to assist
eligible youth who need and can benefit from an intensive
program, operated in a group setting in residential and nonresi-
dential centers, to become more responsible, employable, and
productive citizens;
(2) to set forth standards and procedures for selecting
individuals as enrollees in the Job Corps;
(3) to authorize the establishment of Job Corps centers
in which enrollees will participate in intensive programs of
activities described in this subtitle; and
(4) to prescribe various other powers, duties, and respon-
sibilities incident to the operation and continuing development
of the Job Corps.
SEC. 142. DEFINITIONS.
In this subtitle:
(1) APPLICABLE LOCAL BOARD.—The term ‘‘applicable local
board’’ means a local board—
(A) that provides information for a Job Corps center
on local employment opportunities and the job skills needed
to obtain the opportunities; and
(B) that serves communities in which the graduates
of the Job Corps center seek employment.
(2) APPLICABLE ONE-STOP CENTER.—The term ‘‘applicable
one-stop center’’ means a one-stop customer service center that
provides services, such as referral, intake, recruitment, and
placement, to a Job Corps center.
(3) ENROLLEE.—The term ‘‘enrollee’’ means an individual
who has voluntarily applied for, been selected for, and enrolled
in the Job Corps program, and remains with the program,
but has not yet become a graduate.
(4) FORMER ENROLLEE.—The term ‘‘former enrollee’’ means
an individual who has voluntarily applied for, been selected
for, and enrolled in the Job Corps program, but left the program
H. R. 1385—72
before completing the requirements of a vocational training
program, or receiving a secondary school diploma or recognized
equivalent, as a result of participation in the Job Corps pro-
gram.
(5) GRADUATE.—The term ‘‘graduate’’ means an individual
who has voluntarily applied for, been selected for, and enrolled
in the Job Corps program and has completed the requirements
of a vocational training program, or received a secondary school
diploma or recognized equivalent, as a result of participation
in the Job Corps program.
(6) JOB CORPS.—The term ‘‘Job Corps’’ means the Job Corps
described in section 143.
(7) JOB CORPS CENTER.—The term ‘‘Job Corps center’’ means
a center described in section 147.
(8) OPERATOR.—The term ‘‘operator’’ means an entity
selected under this subtitle to operate a Job Corps center.
(9) REGION.—The term ‘‘region’’ means an area served by
a regional office of the Employment and Training Administra-
tion.
(10) SERVICE
PROVIDER.—The term ‘‘service provider’’
means an entity selected under this subtitle to provide services
described in this subtitle to a Job Corps center.
SEC. 143. ESTABLISHMENT.
There shall be within the Department of Labor a ‘‘Job Corps’’.
SEC. 144. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.
To be eligible to become an enrollee, an individual shall be—
(1) not less than age 16 and not more than age 21 on
the date of enrollment, except that—
(A) not more than 20 percent of the individuals enrolled
in the Job Corps may be not less than age 22 and not
more than age 24 on the date of enrollment; and
(B) either such maximum age limitation may be waived
by the Secretary, in accordance with regulations of the
Secretary, in the case of an individual with a disability;
(2) a low-income individual; and
(3) an individual who is one or more of the following:
(A) Basic skills deficient.
(B) A school dropout.
(C) Homeless, a runaway, or a foster child.
(D) A parent.
(E) An individual who requires additional education,
vocational training, or intensive counseling and related
assistance, in order to participate successfully in regular
schoolwork or to secure and hold employment.
SEC. 145. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT
OF ENROLLEES.
(a) STANDARDS AND PROCEDURES.—
(1) IN
GENERAL.—The Secretary shall prescribe specific
standards and procedures for the recruitment, screening, and
selection of eligible applicants for the Job Corps, after consider-
ing recommendations from the Governors, local boards, and
other interested parties.
(2) METHODS.—In prescribing standards and procedures
under paragraph (1), the Secretary, at a minimum, shall—
H. R. 1385—73
(A) prescribe procedures for informing enrollees that
drug tests will be administered to the enrollees and the
results received within 45 days after the enrollees enroll
in the Job Corps;
(B) establish standards for recruitment of Job Corps
applicants;
(C) establish standards and procedures for—
(i) determining, for each applicant, whether the
educational and vocational needs of the applicant can
best be met through the Job Corps program or an
alternative program in the community in which the
applicant resides; and
(ii) obtaining from each applicant pertinent data
relating to background, needs, and interests for deter-
mining eligibility and potential assignment;
(D) where appropriate, take measures to improve the
professional capability of the individuals conducting screen-
ing of the applicants; and
(E) assure that an appropriate number of enrollees
are from rural areas.
(3) IMPLEMENTATION.—To the extent practicable, the
standards and procedures shall be implemented through
arrangements with—
(A) applicable one-stop centers;
(B) community action agencies, business organizations,
and labor organizations; and
(C) agencies and individuals that have contact with
youth over substantial periods of time and are able to
offer reliable information about the needs and problems
of youth.
(4) CONSULTATION.—The standards and procedures shall
provide for necessary consultation with individuals and
organizations, including court, probation, parole, law enforce-
ment, education, welfare, and medical authorities and advisers.
(5) REIMBURSEMENT.—The Secretary is authorized to enter
into contracts with and make payments to individuals and
organizations for the cost of conducting recruitment, screening,
and selection of eligible applicants for the Job Corps, as pro-
vided for in this section. The Secretary shall make no payment
to any individual or organization solely as compensation for
referring the names of applicants for the Job Corps.
(b) SPECIAL LIMITATIONS ON SELECTION.—
(1) IN GENERAL.—No individual shall be selected as an
enrollee unless the individual or organization implementing
the standards and procedures described in subsection (a) deter-
mines that—
(A) there is a reasonable expectation that the individ-
ual considered for selection can participate successfully
in group situations and activities, and is not likely to
engage in behavior that would prevent other enrollees from
receiving the benefit of the Job Corps program or be
incompatible with the maintenance of sound discipline and
satisfactory relationships between the Job Corps center
to which the individual might be assigned and communities
surrounding the Job Corps center;
H. R. 1385—74
(B) the individual manifests a basic understanding of
both the rules to which the individual will be subject and
of the consequences of failure to observe the rules; and
(C) the individual has passed a background check con-
ducted in accordance with procedures established by the
Secretary.
(2) INDIVIDUALS
ON
PROBATION, PAROLE, OR
SUPERVISED
RELEASE.—An individual on probation, parole, or supervised
release may be selected as an enrollee only if release from
the supervision of the probation or parole official involved is
satisfactory to the official and the Secretary and does not violate
applicable laws (including regulations). No individual shall be
denied a position in the Job Corps solely on the basis of individ-
ual contact with the criminal justice system.
(c) ASSIGNMENT PLAN.—
(1) IN GENERAL.—Every 2 years, the Secretary shall develop
and implement an assignment plan for assigning enrollees to
Job Corps centers. In developing the plan, the Secretary shall,
based on the analysis described in paragraph (2), establish
targets, applicable to each Job Corps center, for—
(A) the maximum attainable percentage of enrollees
at the Job Corps center that reside in the State in which
the center is located; and
(B) the maximum attainable percentage of enrollees
at the Job Corps center that reside in the region in which
the center is located, and in surrounding regions.
(2) ANALYSIS.—In order to develop the plan described in
paragraph (1), the Secretary shall, every 2 years, analyze,
for the Job Corps center—
(A) the size of the population of individuals eligible
to participate in Job Corps in the State and region in
which the Job Corps center is located, and in surrounding
regions;
(B) the relative demand for participation in the Job
Corps in the State and region, and in surrounding regions;
and
(C) the capacity and utilization of the Job Corps center,
including services provided through the center.
(d) ASSIGNMENT OF INDIVIDUAL ENROLLEES.—
(1) IN
GENERAL.—After an individual has been selected
for the Job Corps in accordance with the standards and proce-
dures of the Secretary under subsection (a), the enrollee shall
be assigned to the Job Corps center that is closest to the
home of the enrollee, except that the Secretary may waive
this requirement if—
(A) the enrollee chooses a vocational training program,
or requires an English literacy program, that is not avail-
able at such center;
(B) the enrollee would be unduly delayed in participat-
ing in the Job Corps program because the closest center
is operating at full capacity; or
(C) the parent or guardian of the enrollee requests
assignment of the enrollee to another Job Corps center
due to circumstances in the community of the enrollee
that would impair prospects for successful participation
in the Job Corps program.
H. R. 1385—75
(2) ENROLLEES WHO ARE YOUNGER THAN 18.—An enrollee
who is younger than 18 shall not be assigned to a Job Corps
center other than the center closest to the home of the enrollee
pursuant to paragraph (1) if the parent or guardian of the
enrollee objects to the assignment.
SEC. 146. ENROLLMENT.
(a) RELATIONSHIP
BETWEEN
ENROLLMENT
AND
MILITARY
OBLIGATIONS.—Enrollment in the Job Corps shall not relieve any
individual of obligations under the Military Selective Service Act
(50 U.S.C. App. 451 et seq.).
(b) PERIOD OF ENROLLMENT.—No individual may be enrolled
in the Job Corps for more than 2 years, except—
(1) in a case in which completion of an advanced career
training program under section 148(c) would require an individ-
ual to participate in the Job Corps for not more than one
additional year; or
(2) as the Secretary may authorize in a special case.
SEC. 147. JOB CORPS CENTERS.
(a) OPERATORS AND SERVICE PROVIDERS.—
(1) ELIGIBLE ENTITIES.—
(A) OPERATORS.—The Secretary shall enter into an
agreement with a Federal, State, or local agency, an area
vocational education school or residential vocational school,
or a private organization, for the operation of each Job
Corps center.
(B) PROVIDERS.—The Secretary may enter into an
agreement with a local entity to provide activities described
in this subtitle to the Job Corps center.
(2) SELECTION PROCESS.—
(A) COMPETITIVE BASIS.—Except as provided in sub-
sections (c) and (d) of section 303 of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253),
the Secretary shall select on a competitive basis an entity
to operate a Job Corps center and entities to provide activi-
ties described in this subtitle to the Job Corps center.
In developing a solicitation for an operator or service pro-
vider, the Secretary shall consult with the Governor of
the State in which the center is located, the industry council
for the Job Corps center (if established), and the applicable
local board regarding the contents of such solicitation,
including elements that will promote the consistency of
the activities carried out through the center with the objec-
tives set forth in the State plan or in a local plan.
(B) RECOMMENDATIONS AND CONSIDERATIONS.—
(i) OPERATORS.—In selecting an entity to operate
a Job Corps center, the Secretary shall consider—
(I) the ability of the entity to coordinate the
activities carried out through the Job Corps center
with activities carried out under the appropriate
State plan and local plans;
(II) the degree to which the vocational training
that the entity proposes for the center reflects
local employment opportunities in the local areas
in which enrollees at the center intend to seek
employment;
H. R. 1385—76
(III) the degree to which the entity is familiar
with the surrounding communities, applicable one-
stop centers, and the State and region in which
the center is located; and
(IV) the past performance of the entity, if any,
relating to operating or providing activities
described in this subtitle to a Job Corps center.
(ii) PROVIDERS.—In selecting a service provider for
a Job Corps center, the Secretary shall consider the
factors described in subclauses (I) through (IV) of
clause (i), as appropriate.
(b) CHARACTER AND ACTIVITIES.—Job Corps centers may be
residential or nonresidential in character, and shall be designed
and operated so as to provide enrollees, in a well-supervised setting,
with access to activities described in this subtitle. In any year,
no more than 20 percent of the individuals enrolled in the Job
Corps may be nonresidential participants in the Job Corps.
(c) CIVILIAN CONSERVATION CENTERS.—
(1) IN
GENERAL.—The Job Corps centers may include
Civilian Conservation Centers operated under agreements with
the Secretary of Agriculture or the Secretary of the Interior,
located primarily in rural areas, which shall provide, in addition
to other vocational training and assistance, programs of work
experience to conserve, develop, or manage public natural
resources or public recreational areas or to develop community
projects in the public interest.
(2) SELECTION
PROCESS.—The Secretary may select an
entity to operate a Civilian Conservation Center on a competi-
tive basis, as provided in subsection (a), if the center fails
to meet such national performance standards as the Secretary
shall establish.
(d) INDIAN TRIBES.—
(1) GENERAL AUTHORITY.—The Secretary may enter into
agreements with Indian tribes to operate Job Corps centers
for Indians.
(2) DEFINITIONS.—In this subsection, the terms ‘‘Indian’’
and ‘‘Indian tribe’’, have the meanings given such terms in
subsections (d) and (e), respectively, of section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450b).
SEC. 148. PROGRAM ACTIVITIES.
(a) ACTIVITIES PROVIDED BY JOB CORPS CENTERS.—
(1) IN
GENERAL.—Each Job Corps center shall provide
enrollees with an intensive, well organized, and fully supervised
program of education, vocational training, work experience,
recreational activities, physical rehabilitation and development,
and counseling. Each Job Corps center shall provide enrollees
assigned to the center with access to core services described
in section 134(d)(2) and the intensive services described in
section 134(d)(3).
(2) RELATIONSHIP TO OPPORTUNITIES.—
(A) IN GENERAL.—The activities provided under this
subsection shall provide work-based learning throughout
the enrollment of the enrollees and assist the enrollees
in obtaining meaningful unsubsidized employment, partici-
pating in secondary education or postsecondary education