(1) the principle objective of programs under
part A of title II of the Job Training Partnership
Act (29 U.S.C. 1601 et seq.) is to move economically
disadvantaged adults into permanent, unsubsidized
employment that pays a wage that enables such
adults to achieve long-term economic self-sufficiency
for themselves and their dependents;
(2) current measures of success of such pro-
grams do not accurately assess the degree to which
participants achieve long-term economic self-suffi-
ciency;
(3) in order to ensure that such programs re-
sult in long-term economic self-sufficiency for par-
ticipants, performance standards must focus both on
the wage and benefits a participant receives relative
to the participant’s family size and needs, and on
the duration and stability of the participant’s em-
ployment; and
(4) the wage and benefits needed to achieve
long-term economic self-sufficiency will vary by fam-
ily size and local market conditions governing prices
of essential goods and services.
(b) PURPOSES.—The purposes of this Act are—
(1) to provide for the establishment and use of
local economic self-sufficiency standards tables to ac-
curately measure the effectiveness of adult training
programs carried out under part A of title II of the
Job Training Partnership Act (29 U.S.C. 1601 et
seq.); and
(2) to provide grants to States to develop dem-
onstration and exemplary programs to increase the
number of participants under such programs who
are trained and placed in jobs that yield long-term
economic self-sufficiency using the local economic
self-sufficiency standards tables.
SEC. 3. DEFINITION OF ECONOMIC SELF-SUFFICIENCY.
Section 4 of the Job Training Partnership Act (29
U.S.C. 1503) is amended by adding at the end the follow-
ing new paragraph:
‘‘(41) The term ‘economic self-sufficiency’
means the ability of an individual to meet the follow-
ing basic needs for the individual and such individ-
ual’s family:
‘‘(A) Housing.
‘‘(B) Child care.
‘‘(C) Adult dependent care.
‘‘(D) Food.
‘‘(E) Transportation.
‘‘(F) Health care.
‘‘(G) Work-related expenses.’’.
SEC. 4. ESTABLISHMENT OF ECONOMIC SELF-SUFFICIENCY
STANDARDS 
FOR 
ADULT 
TRAINING 
PRO-
GRAMS.
(a) IN GENERAL.—Section 106(b) of such Act (29
U.S.C. 1516(b)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(9) ECONOMIC SELF-SUFFICIENCY STANDARDS
FOR ADULT PROGRAMS.—
‘‘(A) FORMULA DEVELOPED BY THE SEC-
RETARY.—(i)(I) Not later than 6 months after
the date of the enactment of this paragraph,
the Secretary shall develop and publish in the
Federal Register a proposed formula which
measures the minimum amount of wages and
employment benefits that a participant enrolled
in a program under part A of title II should re-
ceive after termination from such program to
ensure the long-term economic self-sufficiency
of such participant.
‘‘(II) The Secretary shall provide for public
review and comment of the proposed formula
described in subclause (I) within the 60-day pe-
riod beginning on the date such formula is pub-
lished in the Federal Register. Not later than
4 months after the end of such 60-day period,
the Secretary shall develop and publish in the
Federal Register a final formula.
‘‘(ii) The Secretary shall base the formula
described in clause (i) on appropriate factors,
which shall include—
‘‘(I) the participant’s family size and
composition, including the number and age
of dependent adults and children;
‘‘(II) 100 percent of the average hous-
ing costs, which shall be based on the fair
market rental in effect for the market area
in which the participant resides, as estab-
lished by the Secretary of Housing and
Urban Development pursuant to section
8(c) of the United States Housing Act of
1937;
‘‘(III) 100 percent of the average
child care costs (differentiated by the age
of each child), which may be based on the
actual cost of such care established under
section 402(g)(1)(C)(i)(I) the Social Secu-
rity Act or the applicable local market rate
established under clause (ii) of such sec-
tion;
‘‘(IV) 100 percent of the average
adult dependent care costs, which may be
based on local surveys or the local average
of such costs;
‘‘(V) 100 percent of the average
health care costs, which shall include costs
incurred for full family health care cov-
erage (including premiums, deductibles,
and co-payments), and which may be based
on local surveys or the local average of
such costs;
‘‘(VI) 100 percent of the average
transportation costs, which may be based
on local surveys or the local average of
such costs;
‘‘(VII) 100 percent of the food costs,
which shall be equal to 1⁄3 of the official
poverty line (as defined by the Office of
Management and Budget, and revised an-
nually in accordance with section 673(2) of
the Omnibus Budget Reconciliation Act of
1981 (42 U.S.C. 9902(2)); and
‘‘(VIII) 100 percent of the average
work-related costs, which shall include the
cost of uniforms, tools, and other appro-
priate work-related costs.
‘‘(iii) The Secretary shall also designate,
from among the needs identified through the
needs assessment conducted under this Act,
those needs which shall be used by a service de-
livery area to develop the summary needs table
under section 104(b)(14)(B).
‘‘(B) LOCAL ECONOMIC SELF-SUFFICIENCY
STANDARDS TABLES DEVELOPED BY SERVICE
DELIVERY
AREAS.—(i) Not later than 12
months after the date on which the Secretary
publishes the final formula in the Federal Reg-
ister under subparagraph (A)(i)(II), each serv-
ice delivery area shall, in accordance with such
formula, develop and submit to the Governor a
local economic self-sufficiency standards table
which measures the minimum amount of wages
and employment benefits that a participant en-
rolled in a program under part A of title II in
such area should receive after termination from
such program to ensure the long-term economic
self-sufficiency of such participant.
‘‘(ii) The Secretary shall provide technical
assistance to States and service delivery areas
‘‘(IV) such table complies with all
other provisions of the formula developed
by the Secretary under subparagraph (A).
‘‘(iii) If the Governor determines that the
table does not meet the requirements of clause
(ii) or is otherwise incomplete or unsatisfactory,
the Governor shall, before the end of the period
referred to in clause (i)—
‘‘(I) notify the service delivery area of
the reasons for the failure to approve the
table;
‘‘(II) notify the service delivery area
that the table may be resubmitted during
the period referred to in subclause (III);
and
‘‘(III) permit the service delivery area
to resubmit a corrected or amended table
during the 30-day period beginning on no-
tification under this clause.
‘‘(iv) The Governor shall review and ap-
prove or disapprove any table resubmitted
under clause (iii) beginning before the expira-
tion of the 30-day period beginning upon such
resubmission.
‘‘(D) ANNUAL UPDATES.—Each service de-
livery area shall update the local economic self-
sufficiency standards table developed by such
area on an annual basis and shall submit to the
Governor a description of the updated version
of such table.’’.
(b) CONFORMING AMENDMENT.—Paragraph (3) of
section 106(b) of such Act (29 U.S.C. 1516(b)(3)) is
amended by striking ‘‘The Secretary’’ and inserting ‘‘In
addition to the standards under local economic self-suffi-
ciency standards tables developed pursuant to paragraph
(9), the Secretary’’.
SEC. 5. PROHIBITION OF INCENTIVE GRANTS TO SERVICE
DELIVERY AREAS THAT DO NOT HAVE IN EF-
FECT AN APPROVED LOCAL ECONOMIC SELF-
SUFFICIENCY STANDARDS TABLE.
(a) IN GENERAL.—Paragraph (7) of section 106(b)
of such Act (29 U.S.C. 1516(b)(7)) is amended—
(1) by striking ‘‘From funds available’’ and in-
serting ‘‘(A) Subject to subparagraph (B), from
funds available’’;
(2) by redesignating clauses (i) and (ii) of sub-
paragraph (D) as subclauses (I) and (II), respec-
tively;
(3) by redesignating subparagraphs (A) through
(E) of such paragraph as clauses (i) through (v), re-
spectively; and
(4) by adding at the end the following new sub-
paragraph:
‘‘(B) A Governor shall not award incentive
grants for programs under part A of title II to serv-
ice delivery areas that do not have in effect a local
economic self-sufficiency standards table approved
under paragraph (9)(C).’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect 2 years after the date of
the enactment of this Act.
SEC. 6. INCLUSION OF LOCAL ECONOMIC SELF-SUFFI-
CIENCY STANDARDS TABLE AND RELATED
REPORTS IN JOB TRAINING PLAN.
(a) LOCAL ECONOMIC SELF-SUFFICIENCY STAND-
ARDS TABLE.—Subparagraph (B) of section 104(b)(5) of
such Act (29 U.S.C. 1514(b)(5)(B)) is amended by insert-
ing ‘‘, including the local economic self-sufficiency stand-
ards table developed pursuant to subsection (b)(9) of such
section’’ after ‘‘section 106’’.
(b) ANNUAL REPORTS.—Subsection (b) of section
104 of such Act (29 U.S.C. 1514(b)) is amended—
(1) in paragraph (12), by striking ‘‘; and’’ and
inserting a semi-colon;
(2) in paragraph (13), by striking the period at
the end of such paragraph and inserting ‘‘; and’’;
and
(3) by adding at the end the following new
paragraph:
‘‘(14) procedures for the preparation and sub-
mission of an annual report to the Governor, which
shall include—
‘‘(A) with respect to each participant who
has completed training under a program carried
out under part A of title II in the service deliv-
ery area, information relating to—
‘‘(i) the type and amount of services
provided to such participant under the pro-
gram;
‘‘(ii) the subsequent employment of
the participant, where appropriate, includ-
ing the amount of wages and employment
benefits received by the participant under
such employment; and
‘‘(iii) the degree of long-term eco-
nomic self-sufficiency which the participant
has achieved as a result of the training re-
ceived by the participant under the pro-
gram based upon the local economic self-
sufficiency standards table; and
‘‘(B) a summary needs table which—
‘‘(i) ranks and places participants into
at least 4 categories of equal size based
upon the needs designated by the Sec-
retary under section 106(b)(9)(A)(iii);
‘‘(ii) includes a description of the level
of measurements used to place the partici-
pants into such categories; and
‘‘(iii) includes a description of the de-
gree to which participants in each category
achieved long-term economic self-suffi-
ciency after termination from a program
under part A of title II.’’.
SEC. 7. INCLUSION OF LOCAL ECONOMIC SELF-SUFFI-
CIENCY STANDARDS TABLES AND RELATED
REPORTS IN GOVERNOR’S COORDINATION
AND SPECIAL SERVICES PLAN.
Subsection (b) of section 121 of such Act (29 U.S.C.
1531(b)) is amended—
(1) by redesignating paragraphs (6) and (7) as
paragraphs (7) and (8), respectively; and
(2) by inserting after paragraph (5) the follow-
ing new paragraph:
‘‘(6) The plan shall include—
‘‘(A) the local economic self-sufficiency
standards table developed by each service deliv-
ery areas pursuant to section 106(b)(9);
‘‘(B) a compilation of the reports received
by the Governor under section 104(b)(14); and
‘‘(C) a description of goals and objectives
to assist participants enrolled in programs
under part A of title II achieve long-term eco-
nomic self-sufficiency.’’.
SEC. 8. DEMONSTRATION PROGRAMS TO IMPLEMENT
LOCAL 
ECONOMIC 
SELF-SUFFICIENCY
STANDARDS TABLES.
(a) IN GENERAL.—Part D of title IV of such Act (29
U.S.C. 1737 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 457. ECONOMIC SELF-SUFFICIENCY DEMONSTRATION
GRANT PROGRAM.
‘‘(a) AUTHORIZATION.—
‘‘(1) IN
GENERAL.—From funds available
under this part for the fiscal years 1997, 1998, and
1999, the Secretary shall use $1,500,000 in each
such fiscal year to provide grants to States to estab-
vider provides for an appropriate level of services, in-
cluding supportive services, to participants using the
relevant local economic self-sufficiency standards ta-
bles developed by the service delivery area.
‘‘(3) ELIGIBLE SERVICE PROVIDERS.—Eligible
service providers described in this paragraph are
community-based organizations, educational institu-
tions, or any other service providers in the State
that have a demonstrated success in—
‘‘(A) providing occupational skills training
to participants for high-wage jobs; and
‘‘(B) ensuring that participants receive
supportive services in order to successfully com-
plete such training.
‘‘(d) ADMINISTRATIVE
AND RELATED COSTS.—In
any fiscal year in which a State receives amounts from
a grant under subsection (a), the State may retain an
amount not to exceed 10 percent of the grant amount to—
‘‘(1) pay the administrative costs of programs
established and carried out under subsection (a);
‘‘(2) facilitate the coordination of statewide ap-
proaches to training and placing participants in jobs
yielding long-term economic self-sufficiency; and
‘‘(3) provide technical assistance to service de-
livery areas and service providers.
‘‘(e) SELECTION.—In providing grants to States
under subsection (a), the Secretary shall consider—
‘‘(1) the extent to which the State has dem-
onstrated that the coordination of services provided
under this Act with services provided by agencies
and organizations addressing the basic needs of low-
income individuals, including housing, food, trans-
portation, dependent care, and health care, has re-
sulted in the prompt and efficient delivery of services
to participants under this Act;
‘‘(2) the extent to which the State has dem-
onstrated its capability to ensure the provision of all
needed supportive services to participants in any job
training program carried out in the State for the du-
ration of such participants’ enrollment;
‘‘(3) the extent of private sector involvement in
the development and implementation of training pro-
grams that increase opportunities for participants to
achieve long-term economic self-sufficiency under
this Act in the State;
‘‘(4) the extent to which the initiatives proposed
by a State in its application supplement or build
upon existing efforts in the State to train and place
individuals in jobs that increase opportunities for
participants to achieve long-term economic self-suffi-
ciency;
‘‘(5) whether the proposed amount of the grant
to be provided under subsection (a) is sufficient to
accomplish measurable goals;
‘‘(6) the extent to which the State is prepared
to disseminate information on its demonstration
training programs relating to training, placement,
and other services; and
‘‘(7) the extent to which the State is prepared
to produce materials that allow for replication of
such State’s demonstration training programs.
‘‘(f) EVALUATION.—The Secretary shall provide for
an evaluation of the programs established and carried out
under subsection (a), including evaluation of the effective-
ness of such programs in—
‘‘(1) assisting participants with varying needs
in achieving long-term economic self-sufficiency
through training, placement, and other services;
‘‘(2) effectively implementing the use of local
economic self-sufficiency standards tables to increase
the number of participants achieving long-term eco-
nomic self-sufficiency; and
‘‘(3) developing and replicating approaches to
assist participants with varying needs in achieving
long-term economic self-sufficiency through training,
placement, and other services.’’.
(b) CONFORMING AMENDMENT.—The table of con-
tents of such Act is amended by inserting after the item
relating to section 456 the following new item:
‘‘Sec. 457. Economic self-sufficiency demonstration grant program.’’.
SEC. 9. REPORT AND RECOMMENDATIONS.
(a) REPORT.—Not later than 2 years after the date
on which the Secretary provides the 1st grant to a State
under section 457(a)(1) of the Job Training Partnership
Act and biennially thereafter, the Secretary of Labor shall
submit to the Congress a report on—
(1) the extent to which States, service delivery
areas, and other service providers have succeeded in
training, placing, and retaining participants enrolled
in programs under part A of title II of such Act in
jobs yielding long-term economic self-sufficiency; and
(2) the effectiveness of the demonstration pro-
grams established under section 457 of such Act in
developing and replicating approaches to train,
place, and retain participants in such jobs, including
a summary of activities performed by grant recipi-
ents under the demonstration programs authorized
under such section.
(b) RECOMMENDATIONS.—The report described in
subsection (a) shall include recommendations on—
(1) the need to continue, expand, or modify the
demonstration programs established under section
457 of the Job Training Partnership Act;
(2) legislative and administrative changes nec-
essary to increase opportunities for participants to
achieve long-term economic self-sufficiency; and
(3) legislative and administrative action nec-
essary to institutionalize the use of local economic
self-sufficiency standards tables as the principal
measure of performance for programs carried out
under part A of title II of the Job Training Partner-
ship Act (29 U.S.C. 1601 et seq.) such that—
(A) the basic measure of performance for
such programs shall be the achievement of long-
term economic self-sufficiency resulting from
participation in the program;
(B) placements are evaluated according to
whether the wages and employment benefits
meet the participant’s particular long-term eco-
nomic self-sufficiency needs;
(C) both wages and the cash value of em-
ployment benefits are used to determine wheth-
er a participant has achieved the self-sufficiency
standard for their particular family size and
composition;
(D) in order to ensure that participants
with varying needs are served equitably, the
placements shall be equitably distributed among
the categories contained in the summary needs
table established by the service delivery area in
the job training plan prepared under section
104(b)(14)(B) of the Job Training Partnership
Act; and
(E) 
incentive 
grants 
under 
section
106(b)(7) of such Act (29 U.S.C. 1516(b)(7))
are provided to service delivery areas based pri-
marily on the extent to which such areas exceed
the standards under the local economic self-suf-
ficiency standards table for such areas.
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