I
104TH CONGRESS
1ST SESSION
H. R. 2332
To consolidate and reform workforce development and literacy programs,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 14, 1995
Mr. MCKEON introduced the following bill; which was referred to the
Committee on Economic and Educational Opportunities
A BILL
To consolidate and reform workforce development and
literacy programs, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the—
(1) ‘‘Consolidated and Reformed Education,
Employment, and Rehabilitation Systems Act’’; or
(2) ‘‘CAREERS Act’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Purpose.
Sec. 4. Authorization of appropriations.
Sec. 5. Definitions.
Sec. 6. Transition.
TITLE I—WORKFORCE DEVELOPMENT INFRASTRUCTURE
Sec. 101. Purpose of title.
Subtitle A—State and Local Responsibilities
Sec. 102. State requirements.
Sec. 103. Collaborative process regarding State system.
Sec. 104. Consolidated State workforce development and literacy plan.
Sec. 105. Establishment of workforce development areas.
Sec. 106. Provisions regarding local workforce development boards.
Sec. 107. Establishment of integrated career center systems.
Sec. 108. Identification of eligible Education, training, and vocational rehabili-
tation service providers.
Sec. 109. Management information systems.
Sec. 110. Performance accountability system.
Sec. 111. Limitation on Federal regulation.
Sec. 112. General provision.
Sec. 113. Liability.
Subtitle B—Amendments to Wagner-Peyser Act
Sec. 131. General program requirements.
Sec. 132. Labor market information.
Subtitle C—Worker Rights
Sec. 141. Requirements.
TITLE II—YOUTH DEVELOPMENT AND CAREER PREPARATION
CONSOLIDATION GRANT
Sec. 201. Purposes.
Sec. 202. Definitions.
Subtitle A—State Funding
Sec. 211. National and State funding.
Sec. 212. Within State allocation.
Subtitle B—State Organizational, Planning, and Reporting Responsibilities
Sec. 221. State plan.
Sec. 222. State programs and State activities.
Sec. 223. Incentive awards.
Sec. 224. Core standards, performance goals, and measures.
Subtitle C—Subgrants for In-School and At-Risk Youth
Sec. 231. Partnership agreements.
Sec. 232. Distribution of funds.
CHAPTER 1—IN-SCHOOL YOUTH
Sec. 241. Uses of funds for in-school youth.
CHAPTER 2—AT-RISK YOUTH
Sec. 245. Uses of funds for at-risk youth.
Sec. 246. At-risk youth providers.
Subtitle D—National Programs
Sec. 251. Research activities.
Sec. 252. Assessment and data collection of youth development and career
preparation programs.
Sec. 253. National center or centers for research.
TITLE III—ADULT EMPLOYMENT AND TRAINING CONSOLIDATION
GRANT
Sec. 301. Purpose.
Subtitle A—Adult Employment and Training Consolidation Grant
Sec. 311. Authorization.
Sec. 312. Allotment among States.
Sec. 313. Allocation within States.
Sec. 314. Additional State plan requirements.
Sec. 315. Use of amounts.
Sec. 316. Core standards, performance goals, and measures.
Subtitle B—Federal Programs
Sec. 321. National discretionary grants.
Sec. 322. Disaster relief employment assistance.
Sec. 323. Research, demonstration, evaluation, and capacity building.
Sec. 324. Workforce skills and development loans.
Sec. 325. Employment, training, and education assistance for Native Ameri-
cans.
Sec. 326. Employment, training, and education assistance for migrant and sea-
sonal farmworkers.
TITLE IV—ADULT EDUCATION AND FAMILY LITERACY CONSOLI-
DATION GRANT AND LIBRARY SERVICES AND TECHNOLOGY
CONSOLIDATION GRANT
Sec. 401. Findings.
Sec. 402. Definitions.
Subtitle A—Adult Education and Family Literacy Consolidation Grant
Sec. 411. Purposes.
CHAPTER 1—FUNDING
Sec. 421. Reservations from amounts appropriated.
Sec. 422. Allotment.
CHAPTER 2—GRANTS TO STATES
Sec. 431. Requirement to make grants.
Sec. 432. Uses of funds.
Sec. 433. Additional grant requirements.
Sec. 434. Performance measures.
CHAPTER 3—NATIONAL PROGRAMS
Sec. 441. National Institute for Literacy.
Sec. 442. National leadership activities.
Subtitle B—Library Services and Technology Consolidation Grant
Sec. 451. Purposes.
Sec. 452. Authorization of appropriations.
Sec. 453. Allotments.
Sec. 454. Grants to States.
Sec. 455. Uses of funds.
Sec. 456. Annual applications.
TITLE V—AMENDMENTS TO REHABILITATION ACT OF 1973
Subtitle A—Vocational Rehabilitation Consolidation Grant
CHAPTER 1—TRANSITION PERIOD
Sec. 501. Transition.
CHAPTER 2—REVISION OF TITLE I OF REHABILITATION ACT OF 1973
Sec. 511. Revision of title I.
Subtitle B—Other Amendments to Rehabilitation Act of 1973
Sec. 521. Training and demonstration projects.
Sec. 522. Employment opportunities for individuals with disabilities.
Sec. 523. Certain amounts.
TITLE VI—HIGHER EDUCATION PRIVATIZATION
Sec. 601. Reorganization of the Student Loan Marketing Association through
the formation of a holding company.
Sec. 602. Privatization of College Construction Loan Insurance Association.
TITLE VII—REPEALERS AND OTHER AMENDMENTS
Sec. 701. Higher education provisions.
Sec. 702. Amendment to Higher Education Act.
Sec. 703. Carl D. Perkins Vocational and Applied Technology Education Act.
Sec. 704. Smith-Hughes Act.
Sec. 705. School-to-Work Opportunities Act of 1994.
Sec. 706. School Dropout Assistance Act.
Sec. 707. Adult Education Act.
Sec. 708. National Literacy Act.
Sec. 709. Library Services and Construction Act.
Sec. 710. Technology for Education Act of 1994.
Sec. 711. Job Training Partnership Act.
Sec. 712. Stewart B. Mckinney Homeless Assistance Act.
Sec. 713. Effective date.
(b) PROGRAM YEAR.—
(1) IN
GENERAL.—Beginning in fiscal year
1997, and each year thereafter, appropriations for
any fiscal year for programs and activities under ti-
tles II, III, and IV of this Act shall be available for
obligation only on the basis of a program year. The
program year shall begin on July 1 in the fiscal year
for which the appropriation is made.
(2) OBLIGATION.—Funds obligated for any pro-
gram year under titles II, III, and IV, may be ex-
pended by each recipient during that program year
and the two succeeding program years, except that
the Secretary shall, in accordance with paragraph
(3), reallot to eligible States the funds allotted to
States from funds appropriated for reallotments.
(3) 
AMOUNTS
AVAILABLE
FOR
REALLOT-
MENT.—The amount available for reallotment is
equal to—
(A) the amount by which the unobligated
balance of the State allotment at the end of the
program year prior to the program year for
which the determination under this section is
made exceeds 20 percent of such allotment for
the prior program year; plus
(B) the unexpended balance of the State
allotment from any program year prior to the
program year in which there is such excess.
SEC. 5. DEFINITIONS.
For purposes of this Act, except as otherwise pro-
vided:
(1) ADULT.—The term ‘‘adult’’ means an indi-
vidual who is 16 years of age, or beyond the age of
compulsory school attendance under State law
(whichever age is higher), and who is not enrolled or
required to be enrolled in secondary school.
(2) ADULT EDUCATION.—The term ‘‘adult edu-
cation’’ means services or instruction below the post-
secondary level for adults—
(A) who are not enrolled in secondary
school;
(B) who lack sufficient mastery of basic
educational skills to enable them to function ef-
fectively in society or who do not have a certifi-
cate of graduation from a school providing sec-
ondary education and who have not achieved an
equivalent level of education;
(C) who are not currently required to be
enrolled in school; and
(D) whose lack of mastery of basic skills
results in an inability to speak, read, or write
the English language which constitutes a sub-
stantial impairment of their ability to get or re-
tain employment commensurate with their real
ability, and thus are in need of programs to
help eliminate such inability and raise the level
of education of such individuals with a view to
making them less likely to become dependent on
others.
(3) AREA VOCATIONAL EDUCATION SCHOOL.—
The term ‘‘area vocational education school’’
means—
(A) a specialized high school used exclu-
sively or principally for the provision of voca-
tional education to individuals who are available
for study in preparation for entering the labor
market;
(B) the department of a high school exclu-
sively or principally used for providing voca-
tional education in not less than 5 different oc-
cupational fields to individuals who are avail-
able for study in preparation for entering the
labor market;
(C) a technical institute or vocational
school used exclusively or principally for the
provision of vocational education to individuals
who have completed or left high school and who
are available for study in preparation for enter-
ing the labor market; or
(D) the department or division of a junior
college, community college or university operat-
ing under the policies of the State board and
which provides vocational education in not less
than 5 different occupational fields leading to
immediate employment but not necessarily lead-
ing to a baccalaureate degree, if, in the case of
a school, department, or division described in
subparagraph (C) or this subparagraph, it ad-
mits as regular students both individuals who
have completed high school and individuals who
have left high school.
(4) AT-RISK YOUTH.—The term ‘‘at-risk youth’’
means—
(A) an out-of-school, at-risk youth who is
an individual age 24 or younger and who is not
enrolled in a secondary or postsecondary edu-
cation program, has not received a high school
diploma or its equivalent and must overcome
barriers to employment such as lack of suffi-
cient education or vocational skills, economic
disadvantages, disability, or limited English
proficiency; or
(B) an in-school, at-risk youth who is an
individual age 24 or younger who is enrolled in
an accredited secondary or postsecondary edu-
cation program but is at risk of dropping out
of school or must overcome barriers to complete
an education program, such as economic dis-
advantages, disability, or limited English pro-
ficiency.
(5) COMPREHENSIVE CAREER GUIDANCE AND
COUNSELING.—The term ‘‘comprehensive career
guidance and counseling’’ means a program—
(A) which pertains to the body of subject
matter and related techniques and methods or-
ganized for the development in individuals of
career awareness, career planning, career deci-
sionmaking, placement skills, and knowledge
and understanding of local, State, and national
occupational, educational, and labor market
needs, trends, and opportunities;
(B) which assists such individuals in mak-
ing and implementing informed educational and
occupational choices; and
(C) which is comprehensive in nature.
(6) CAREER GRANT.—The term ‘‘career grant’’
means a voucher or a credit issued to a participant
under title III of this Act, or title I of the Rehabili-
tation Act of 1973, for the purchase of education or
training services from certified providers of such
services, in accordance with the provisions of this
Act, and with guidelines issued by the State.
(7) CASE MANAGEMENT.—The term ‘‘case man-
agement’’ means the provision of a client-centered
approach in the delivery of services designed to—
(A) empower individuals to make informed
career choices;
(B) prepare and coordinate comprehensive
employment plans, based upon such individual
choices, such as service strategies for partici-
pants, to ensure access to necessary training
and supportive services, using, where feasible,
computer-based technologies; and
(C) provide job and career counseling dur-
ing program participation and after job place-
ment.
(8) CHIEF
ELECTED
OFFICIAL.—The term
‘‘chief elected official’’ means the chief elected execu-
tive officer of a unit of general local government in
a workforce development area.
(9) COMMUNITY-BASED
ORGANIZATION.—The
term ‘‘community-based organization’’ means a pri-
vate nonprofit organization that is representative of
a community or significant segments of a community
that provides or facilitates education, vocational re-
habilitation, job training, supportive services, or in-
ternship services and programs.
(10) DEMOGRAPHIC
CHARACTERISTICS.—The
term ‘‘demographic characteristics’’ means informa-
tion on population, especially with reference to size,
density, distribution, and vital statistics including,
age, race, sex, ethnic origin, and income status.
(11) DISLOCATED
WORKER.—The term ‘‘dis-
located worker’’ means an individual who—
(A) has been terminated or laid off or who
has received a notice of termination or layoff
from employment, is eligible for or has ex-
hausted entitlement to unemployment com-
pensation, and is unlikely to return to a pre-
vious industry or occupation;
(B) has been terminated, or has received a
notice of termination of employment, as a result
of any permanent closure of, or any substantial
layoff at, a plant, facility, or enterprise;
(C) has been unemployed long-term and
has limited opportunities for employment or re-
employment in the same or a similar occupation
in the area in which such individual resides, in-
cluding an older individual who may have sub-
stantial barriers to employment by reason of
age; or
(D) was self-employed (including farmers
and ranchers) but is unemployed as a result of
general economic conditions in the community
in which they reside or because of natural dis-
asters.
(12) DISPLACED HOMEMAKER.—The term ‘‘dis-
placed homemaker’’ means an individual who—
(A) is an adult; and
(B)(i) has worked as an adult primarily
without remuneration to care for the home and
family, and for that reason has diminished mar-
ketable skills;
(ii) has been dependent on public assist-
ance or on the income of a relative but is no
longer supported by such income; or
(iii) is a parent whose youngest dependent
child will become ineligible to receive assistance
under the program for aid to families with de-
pendent children under part A of title IV of the
Social Security Act within 2 years of the par-
ent’s application for assistance under title II of
this Act.
(13) EARNINGS.—The term ‘‘earnings’’ means
gross hourly wages before any deduction, plus the
estimated hourly value of bonuses, tips, gratuities,
commissions, and overtime pay either expected or re-
ceived. In the case of individuals in subsidized em-
ployment, total hourly earnings include any wage
subsidy paid to the individual.
(14) ECONOMIC
DEVELOPMENT
AGENCIES.—
The term ‘‘economic development agencies’’ means
State and local planning and zoning commissions or
boards, community development agencies, and other
State and local agencies and institutions responsible
for regulating, promoting, or assisting in State and
local economic development.
(15) ECONOMICALLY
DISADVANTAGED.—The
term ‘‘economically disadvantaged’’ means an indi-
vidual who—
(A) receives, or is a member of a family
which receives, cash welfare payments under a
Federal, State, or local welfare program;
(B) has, or is a member of a family which
has, received a total family income for the 6-
month period prior to application for the pro-
gram involved (exclusive of unemployment com-
pensation, child support payments, and welfare
payments) which, in relation to family size, was
not in excess of the higher of—
(i) the official poverty line (as defined
by the Office of Management and Budget,
and revised annually in accordance with
section 673(2) of the Omnibus Budget
Reconciliation Act of 1981 (42 U.S.C.
9902(2)), or
(ii) 70 percent of the lower living
standard income level;
(C) is receiving (or has been determined
within the 6-month period prior to the applica-
tion for the program involved to be eligible to
receive) food stamps pursuant to the Food
Stamp Act of 1977;
(D) qualifies as a homeless individual
under subsections (a) and (c) of section 103 of
the Stewart B. McKinney Homeless Assistance
Act;
(E) is a foster child on behalf of whom
State or local government payments are made;
(F) in cases permitted by regulations of
the Secretary, is an individual with a disability
whose own income meets the requirements of
subparagraph (A) or (B), but who is a member
of a family whose income does not meet such
requirements; or
(G) is an individual meeting appropriate
criteria approved by a State.
(16) EDUCATIONAL
SERVICE
AGENCY.—The
term ‘‘educational service agency’’ means a regional
public multiservice agency authorized by State stat-
ute to develop, manage, and provide services or pro-
grams to local educational agencies, and is recog-
nized as an administrative agency for such State’s
vocational or technical education schools or for voca-
tional programs within its public elementary or sec-
ondary schools. Such term includes any other public
institution or agency having administrative control
and direction over a public elementary or secondary
school.
(17) EMPLOYED.—The term ‘‘employed’’ means
an individual who is currently—
(A) a paid employee;
(B) works in his or her own business, pro-
fession, or farm;
(C) works 15 hours or more per week as
an unpaid worker in an enterprise operated by
a family member or is one who is not working,
but has a job or business from which he or she
is temporarily absent due to illness, bad weath-
er, vacation, labor-management dispute, or per-
sonal reasons; or
(D) on active military duty.
(18) ENGLISH LITERACY PROGRAM.—The term
‘‘English literacy program’’ means a program of in-
struction designed to help limited English proficient
adults, out-of-school youths, or both, achieve full
competence in the English language.
(19) EXCESS
NUMBER.—The term ‘‘excess
number’’ means, with respect to the excess number
of unemployed individuals within a State, the num-
ber that represents the number of unemployed indi-
viduals in excess of 4.5 percent of the civilian labor
force in the State, or the number that represents the
number of unemployed individuals in excess of 4.5
percent of the civilian labor force in areas of sub-
stantial unemployment in such State.
(20) FAMILY AND CONSUMER SCIENCES.—The
term ‘‘family and consumer sciences’’ means instruc-
tional programs, services, and activities which pre-
pare students for personal, family, community, and
career roles.
(21) GOVERNOR.—The term ‘‘Governor’’ means
the chief executive of a State.
(22) INDIVIDUAL
OF
LIMITED
ENGLISH
PRO-
FICIENCY.—The term ‘‘individual of limited English
proficiency’’ means an adult or out-of-school youth
who has limited ability in speaking, reading, writing,
or understanding the English language and—
(A) whose native language is a language
other than English; or
(B) who lives in a family or community en-
vironment where a language other than English
is the dominant language.
(23) INDIVIDUALS
WITH
DISABILITIES.—The
term ‘‘individuals with disabilities’’ has the meaning
given such term in the Rehabilitation Act of 1973.
(24) INSTITUTION OF HIGHER EDUCATION.—
The term ‘‘institution of higher education’’ has the
meaning given such term in section 481 of the High-
er Education Act of 1965.
(25) JOB SEARCH ASSISTANCE.—The term ‘‘job
search assistance’’ means a service that helps a job-
ready individual seek, locate, apply for, and obtain
employment. Such services may include, job-finding
skills, orientation to the labor market, resume prepa-
ration assistance, job finding clubs, job search work-
shops, vocational exploration, and other employ-
ability services.
(26) LABOR MARKET AREA.—The term ‘‘labor
market area’’ means an economically integrated geo-
graphic 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 areas shall be identified in
accordance with criteria used by the Bureau of
Labor Statistics of the Department of Labor in de-
fining such areas or similar criteria established by a
Governor.
(27) LIBRARY.—The term ‘‘library’’ includes—
(A) a public library;
(B) a public elementary or secondary
school library;
(C) an academic library;
(D) a research library; and
(E) a private library, but only if the State
in which such private library is located deter-
mines that the library should be considered a li-
brary for purposes of this Act.
(28) LITERACY.—The term ‘‘literacy’’ means an
individual’s ability to read, write, and speak in Eng-
lish, and compute and solve problems, at levels of
proficiency necessary—
(A) to function on the job, in the individ-
ual’s family and in society;
(B) to achieve the individual’s goals; and
(C) to develop the individual’s knowledge
potential.
(29) LOCAL EDUCATIONAL AGENCY.—The term
‘‘local educational agency’’ has the same meaning
given such term in section 14101 of the Elementary
and Secondary Education Act of 1965.
(30) MIGRANT FARMWORKER.—The term ‘‘mi-
grant farmworker’’ means a seasonal farmworker
whose farm work requires travel such that the work-
er is unable to return to a permanent place of resi-
dence within the same day.
(31) NATIVE
AMERICAN.—The term ‘‘native
American’’ means Indians, Alaskan natives, and Ha-
waiian natives.
(32) 
NONTRADITIONAL
EMPLOYMENT.—The
term ‘‘nontraditional employment’’ as applied to
women refers to occupations or fields of work where
women comprise less than 25 percent of the individ-
uals employed in such occupation or field of work.
(33) ON-THE-JOB TRAINING.—The term ‘‘on-
the-job training’’ means training in the public or pri-
vate sector that is provided to a paid employee while
engaged in productive work that—
(A) provides knowledge or skills essential
to the full and adequate performance of the job;
(B) provides reimbursement to employers,
up to 50 percent of the participant’s wage rate,
for the extraordinary costs of providing training
and additional supervision; and
(C) is based on the Occupational Employ-
ment Statistics Program Dictionary.
(34) POSTSECONDARY EDUCATIONAL INSTITU-
TION.—The term ‘‘postsecondary educational institu-
tion’’ means an institution of higher education (as
such term is defined in section 481 of the Higher
Education Act of 1965) which continues to meet the
eligibility and certification requirements under title
IV of such Act (20 U.S.C. 1070 et seq.).
(35) PREEMPLOYMENT SKILLS TRAINING; JOB
READINESS
SKILLS
TRAINING.—The 
terms
‘‘preemployment skills training’’ and ‘‘job readiness
skills training’’ mean training that builds on family
efforts to help prepare individuals for work by assur-
ing that they are familiar with general workplace ex-
pectations and exhibit work behavior and attitudes
necessary to compete successfully in the job market.
(36) PUBLIC ASSISTANCE.—The term ‘‘public
assistance’’ means Federal, State, or local govern-
ment cash payments for which eligibility is deter-
mined by a needs or income test.
(37) RAPID RESPONSE.—The term ‘‘rapid re-
sponse’’ means assistance that is directly provided
by the State, or by local grantees with funds pro-
vided by the State, in the case of mass layoffs or
plant closures, and that establishes on-site contact
with employer and employee representatives within a
short period of time (preferably 48 hours or less)
after becoming aware of a current or projected per-
manent closure or substantial layoff in order to—
(A) provide information on, and facilitate
access to, available public programs and serv-
ices for workers losing jobs as a result of such
layoff or closure;
(B) provide emergency assistance adapted
to the particular closure or layoff;
(C) promote the formation of labor-man-
agement committees, where appropriate;
(D) collect information related to economic
dislocation and available resources within the
State for dislocated workers;
(E) provide or obtain appropriate financial
and technical advice and liaison with economic
development agencies and other organizations
to assist in efforts to avert worker dislocation;
and
(F) assist the local community in develop-
ing its own coordinated response and in obtain-
ing access to State economic development as-
sistance.
(38) REGISTERED APPRENTICESHIP.—The term
‘‘registered apprenticeship’’ means a program reg-
istered by the Bureau of Apprenticeship and Train-
ing in the United States Department of Labor, or a
State Apprenticeship Agency recognized and ap-
proved by the Bureau of Apprenticeship and Train-
ing as the appropriate body for State registration or
approval of local apprenticeship programs and agree-
ments.
(39) SCHOOL
DROPOUT.—The term ‘‘school
dropout’’ means a youth who is no longer attending
any school and who has not received a secondary
school diploma or a certificate from a program of
equivalency for such a diploma.
(40) 
SEASONAL
FARMWORKER.—The 
term
‘‘seasonal farmworker’’ means a person who during
the eligibility determination period (12 consecutive
months out of 24 months prior to application) has
been primarily employed in farm work that is char-
acterized by chronic unemployment or under employ-
ment.
(41) SKILL CERTIFICATE.—The term ‘‘skill cer-
tificate’’ means a portable, industry-recognized cre-
dential achieved through programs authorized under
this Act, that certifies that an individual has mas-
tered occupational skills at levels that are at least as
challenging as skill standards endorsed by the Na-
tional Skill Standards Board, except that until such
skill standards are developed, the term ‘‘skill certifi-
cate’’ means a credential issued under a process en-
dorsed by the State, based upon established industry
standards and benchmarks.
(42) STATE.—The term ‘‘State’’ means any of
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands,
American Samoa, Guam, and the Commonwealth of
the Northern Mariana Islands.
(43) STATE EDUCATIONAL AGENCY.—The term
‘‘State educational agency’’ has the meaning given
such term in section 14101 of the Elementary and
Secondary Education Act of 1965.
(44) STATE LIBRARY ADMINISTRATIVE AGEN-
CY.—The term ‘‘State library administrative agen-
cy’’ means the official agency of a State charged by
the law of the State with the extension and develop-
ment of public library services throughout the State.
(45) SUPPORTIVE SERVICES.—The term ‘‘sup-
portive services’’ means services which are necessary
to enable an individual eligible for training under
this Act, but who cannot afford to pay for such serv-
ices, to participate in a training or vocational reha-
bilitation program or job search activities funded
under this Act. Such supportive services may include
transportation, individual and family counseling,
child care and dependent care, meals, temporary
shelter, financial counseling, needs-based payments,
and other reasonable expenses required for partici-
pation in a training, job preparation, or job place-
ment program. Such services may be provided in-
kind or through cash assistance, except that such
services will be provided with funds provided under
this Act only after alternative funding sources spe-
cifically designated for such services have been ex-
hausted.
(46) UNEMPLOYED.—The term ‘‘unemployed’’
refers to an individual who is not employed, who is
available for work, and who has made specific efforts
to find a job within the prior 4 weeks. Included as
unemployed are individuals who are not working, are
available for work, and are waiting to be called back
to a job from which they have been laid off.
(47) UNIT
OF
GENERAL
LOCAL
GOVERN-
MENT.—The term ‘‘unit of general local govern-
ment’’ means any general purpose political subdivi-
sion of a State which has the power to levy taxes
and spend funds, as well as general corporate and
police powers.
(48) VETERAN.—The term ‘‘veteran’’ has the
meaning given such term in section 101(2) of title
38, United States Code.
(49) WORK EXPERIENCE.—The term ‘‘work ex-
perience’’ means a time-limited work activity that
provides an individual with the opportunity to ac-
quire the general skills and knowledge necessary to
obtain employment.
(50) WORKPLACE MENTOR.—The term ‘‘work-
place mentor’’ means an employee or other individ-
ual, approved by the employer at a workplace, who
possesses the skills and knowledge to be mastered by
a student or program participant, and who instructs,
critiques the performance, and challenges the stu-
dent or program participant to perform well, and
works in consultation with classroom teachers, train-
ing providers, parents, and the employer of the stu-
dent or program participant.
(51) YOUTH.—The term ‘‘youth’’ means an in-
dividual under the age of 24.
SEC. 6. TRANSITION.
The Secretary of Education and the Secretary of
Labor shall take such steps as they determine to be appro-
priate to provide for the orderly transition from any au-
thority under provisions of statutes amended or repealed
by this Act or any related authority under provisions of
this Act.
TITLE I—WORKFORCE DEVELOP-
MENT INFRASTRUCTURE
SEC. 101. PURPOSE OF TITLE.
The purpose of this title is to provide for the estab-
lishment of an infrastructure within States on which to
build a comprehensive system of workforce development
and literacy.
Subtitle A—State and Local
Responsibilities
SEC. 102. STATE REQUIREMENTS.
(a) IN GENERAL.—For fiscal year 1997 and subse-
quent fiscal years, a State that desires to receive a grant
under one or more of the programs specified in subsection
(b) shall—
(1) establish a collaborative process, pursuant
to section 103;
(2) develop a State workforce development and
literacy plan, pursuant to section 104; and
(3) otherwise comply with the requirements of
this Act.
(b) WORKFORCE
DEVELOPMENT
AND
LITERACY
PROGRAMS.—
(1) IN GENERAL.—The programs referred to in
subsection (a) are the following:
(A) The program under title II, the Youth
Development and Career Preparation Consoli-
dation Grant.
(B) The program under title III, the Adult
Employment and Training Consolidation Grant.
(C) The program under subtitle A of title
IV, the Adult Education and Family Literacy
Consolidation Grant.
(D) The program amended by subtitle A of
title V (relating to title I of the Rehabilitation
Act of 1973).
(2) DEFINITION.—For purposes of this Act, the
term ‘‘Workforce Development and Literacy pro-
grams’’ means the programs specified in paragraph
(1).
SEC. 103. COLLABORATIVE PROCESS REGARDING STATE
SYSTEM.
(a) IN GENERAL.—The Governor of a State that de-
sires to receive a grant under one or more of the programs
specified in section 102(b) shall certify to the Secretary
of Education and the Secretary of Labor that a collabo-
rative process, as described in subsection (b) or (c), has
been used in complying with the applicable provisions of
this Act.
(2) the lead State agency official or officials
for—
(A) the State educational agency or agen-
cies (including the lead official or officials for
vocational education, adult education and lit-
eracy, and libraries);
(B) the State agency responsible for eco-
nomic development;
(C) the State agency or agencies respon-
sible for employment security and for job train-
ing;
(D) the State agency responsible for post-
secondary education;
(E) the State agency responsible for voca-
tional rehabilitation, and where applicable, the
State agency providing vocational rehabilitation
services for the blind;
(F) the State agency responsible for ad-
ministering welfare benefits; and
(G) the representative of the Veterans’
Service assigned to the State under section
4103 of title 38, United States Code.
(c) RULE OF CONSTRUCTION.—With respect to com-
pliance with subsection (b)—
(1) a State may use any existing State process
(including any council or similar entity) that sub-
stantially meets the purposes of such subsection; or
(2) if prior to the date of enactment of this Act,
a State has developed a one-stop career center sys-
tem or a school-to-work system through a collabo-
rative process substantially similar to the process de-
scribed in subsection (b), the State may use such
process.
(d) AUTHORITY OF GOVERNOR.—
(1) FINAL AUTHORITY.—If, after a reasonable
effort, a Governor is unable to obtain agreement
through the collaborative process described in sub-
section (b) or (c), the Governor shall have final au-
thority to make decisions and to submit the State
plan as described under section 104.
(2) EXCEPTION.—Nothing in this Act shall be
construed to negate or supersede the legal authority,
under State law of any State agency, State entity,
or State public official over programs that are under
the jurisdiction of the agency, entity, or official.
Nothing in this Act shall be construed to interfere
with the authority of such agency, entity, or official
to enter into a contract under any provision of law.
SEC. 104. CONSOLIDATED STATE WORKFORCE DEVELOP-
MENT AND LITERACY PLAN.
(a) IN GENERAL.—The Governor of a State that de-
sires to receive a grant under one or more of the programs
specified in section 102(b) shall submit a strategic State
workforce development and literacy plan that provides pol-
icy guidance with respect to workforce development pro-
grams operated in the State, and that meets the require-
ments of this section to the Secretary of Education and
the Secretary of Labor.
(b) CONTENTS.—A State workforce development and
literacy plan shall include the following:
(1) A description of the collaborative process
under section 103 used in developing the plan.
(2) A statement of the goals of the State
workforce development and literacy system, that in-
cludes—
(A) a description of how the State will
progress toward achieving the goals and pur-
pose of this Act as established in sections
3(a)(5) and 3(b);
(B) an assessment of the needs of the
State with regard to current and projected de-
mands for workers by occupation, the skills and
education levels of the workforce, the vocational
rehabilitation needs of individuals with severe
disabilities residing in the State, the skill and
economic development needs of the State, and
an assessment of the type and availability of
youth development and career preparation,
workforce development, adult education, voca-
tional rehabilitation, and literacy programs and
services in the State; and
(C) the identification of progress indica-
tors, based on the core indicators of perform-
ance described in section 110(f), built upon a
model of continuous improvement, that the
State will use to measure progress made by the
State, local workforce development boards, and
other applicable local entities who are recipients
of financial assistance under this Act in meet-
ing such goals;
(3) A description of how the State has com-
plied, or will comply, with the provisions of sections
105 through 108.
(4) A description of how a State will participate
in the national labor market information system
under title II of the Wagner-Peyser Act, as added by
section 132 of this Act.
(5) Any information required to be included in
the plan under any of titles II through IV, and title
I of the Rehabilitation Act of 1973 (in the case of
a State that desires to receive a grant under any
such title).
(6) A description of the measures that will be
taken by the State to ensure coordination and con-
sistency and avoid duplication among programs re-
ceiving assistance under this Act, including a de-
scription of common data collection and reporting
processes.
(7) A description of the process used by the
State to provide an opportunity for public comment,
and input into the development of the plan, prior to
submission of the plan.
(8) A description of the process used by the
State to consult with representatives of business and
industry with respect to the requirements of sub-
paragraphs (A), (B), and (C) of paragraph (2) of
this subsection.
(9) Assurances that the State will provide for
fiscal control and fund accounting procedures that
may be necessary to ensure the proper disbursement
of, and accounting for, funds paid to the State
under this Act.
(10) A description of the sanctions which the
State may impose (including restrictions from future
participation or consideration for funding) in in-
stances where recipients of funds under this Act fail
to achieve agreed upon expected performance levels,
fail to adhere to State mandated fiscal control and
funds accounting procedures, or take or fail to take
other actions required under the State plan, con-
tracts, or other agreements.
(c) DISAGREEMENT.—The Governor shall accept and
include with the plan submitted under subsection (a) any
disagreeing views submitted by a participant of the col-
laborative process if such views represent disagreement in
the area in which such participant was selected for rep-
resentation.
(d) MODIFICATIONS TO PLAN.—A plan submitted by
a State in accordance with this section remains in effect
until the State submits to the Secretary such modifica-
tions as the State determines necessary. This section ap-
plies to the modifications to the same extent and in the
same manner as this section applies to the original plan.
SEC. 105. ESTABLISHMENT OF WORKFORCE DEVELOPMENT
AREAS.
The Governor of a State that desires to receive a
grant under one or more of the programs specified in sec-
tion 102(b) shall, through the collaborative process estab-
lished under section 103 and after consultation with local
chief elected officials, and after consideration of comments
received through the public participation process as de-
scribed in the State plan, designate local workforce devel-
opment areas within the State taking into consideration
the following:
(1) Existing labor market areas.
(2) Units of general local government.
(3) Geographic areas served by local edu-
cational agencies and intermediate educational agen-
cies.
(4) Geographic areas served by postsecondary
institutions and area vocational education schools.
(5) Service delivery areas established under sec-
tion 101 of the Job Training Partnership Act (29
U.S.C. 1511) (as such Act was in effect on the day
before the date of the enactment of this Act).
(6) The distance that individuals will need to
travel to receive services from integrated career cen-
ters.
SEC. 106. PROVISIONS REGARDING LOCAL WORKFORCE DE-
VELOPMENT BOARDS.
(a) IN GENERAL.—The Governor of a State that de-
sires to receive a grant under one or more of the programs
specified in section 102(b) shall ensure the establishment
of a local workforce development board in each local
workforce development area within the State.
(b) STATE CRITERIA.—The Governor, through the
collaborative process described under section 103, is au-
thorized to establish criteria for use by local chief elected
officials in the workforce development area, in the selec-
tion of members of local workforce development boards,
in accordance with requirements prescribed under sub-
sections (c) and (d).
(c) REPRESENTATION REQUIREMENT.—Such criteria
shall require, at a minimum, that a local workforce devel-
opment board consist of—
(1) a majority of members who are representa-
tives of business and industry, including individuals
who are owners of businesses, chief executives or
chief operating officers of private business, and
other business executives with optimum policy-
making authority in local businesses, selected from
among nominees submitted by local business organi-
zations and trade associations;
(2) an individual or individuals with disabilities,
who have special knowledge or expertise in the area
of vocational rehabilitation;
(3) representatives of education and training,
including local educational agencies, postsecondary
education institutions, and providers of job training
and workforce development services, selected from
among individuals nominated by regional or local
educational agencies, vocational education institu-
tions, institutions of postsecondary education (in-
cluding community colleges), providers of job train-
ing and workforce development services (including
private-for-profit providers), within the workforce
development area; and
(4) representatives of community-based organi-
zations, employees, and veterans as nominated or
recommended to the board through a process estab-
lished by the Governors through the collaborative
process.
(d) ESTABLISHMENT OF BOARD.—
(1) SELECTION OF BOARD MEMBERS.—
(A) SINGLE UNIT OF LOCAL GOVERNMENT
IN AREA.—In the case of a workforce develop-
ment area that is comprised of only one unit of
general local government, the chief elected offi-
cial of such unit is authorized to select the
members of the local workforce development
board for such area, in accordance with the
State criteria developed pursuant to subsection
(b).
(B) MULTIPLE
UNITS
IN
AREA.—In the
case of a workforce development area that is
comprised of more than one unit of general
local government, the chief elected officials of
such units are authorized to select the members
of the local workforce development board from
the individuals so nominated or recommended
for such area in accordance with an agreement
entered into by such officials and with the State
criteria developed under subsection (b). In the
absence of such an agreement, the appoint-
ments are authorized to be made by the Gov-
ernor, through the collaborative process, from
the individuals so nominated or recommended.
(2) CERTIFICATION.—The Governor is author-
ized to biennially certify one local workforce develop-
ment board for each workforce development area.
(3) EXCEPTION.—In any case in which a local
workforce development area is a State, the individ-
uals comprising the Governor’s collaborative process
as described in section 103, may be reconstituted to
meet the requirements of this section.
(e) DUTIES OF LOCAL WORKFORCE DEVELOPMENT
BOARD.—
(1) 
LOCAL
WORKFORCE
DEVELOPMENT
PLAN.—Each local workforce development board
shall develop a biennial strategic plan and provide
policy guidance with respect to workforce develop-
ment programs operated within their respective
workforce development areas. Such strategic plan
shall be consistent with the State’s collaborative
workforce development and literacy plan, be ap-
proved by the appropriate chief elected official or of-
ficials, and be submitted to the Governor for ap-
proval. If after a reasonable effort, a local workforce
development board is unable to obtain the approval
of the chief elected official or officials, the Board has
the authority to forward the plan, with the com-
ments of the chief elected official or officials, to the
Governor for final approval or disapproval. Such
local plan shall include the following:
(A) Both short-term and long-term goals,
and related strategies, to ensure that workforce
preparation and development programs, includ-
ing programs established pursuant to this Act,
title I of the Rehabilitation Act of 1973, and
the Wagner-Peyser Act, contribute to a coher-
ent workforce development system in the
workforce development area.
(B) A description of the performance
measures to be used by the local workforce de-
velopment board for measuring the performance
of local service providers under chapter 2 of
title II, title III, and title I of the Rehabilita-
tion Act of 1973, and the performance of inte-
grated career center system operators, with
whom the Board contracts.
(C) A description of the local integrated
career center system to be established in the
workforce development area, including—
(i) a description of the process the
local workforce development board will use
to designate or establish a career center
system which ensures that the most effec-
tive and efficient service providers are cho-
sen;
(ii) an identification of the roles of in-
dividual workforce development programs
and programs authorized by the Wagner-
Peyser Act; and
(iii) a description of the funding
sources to be used in the operation of the
career center system.
(D) A description of strategies the local
workforce development board will undertake to
fully involve local employers, local educational
agencies, postsecondary education institutions,
adult education and literacy providers, local
service providers, parents and other consumers,
including individuals with disabilities, and older
workers in the development of the workforce de-
velopment system.
(E) Such other information as requested
by the State.
(2) IDENTIFICATION OF OCCUPATIONS IN DE-
MAND AND TRAINING NEEDS.—The local workforce
development board shall use available labor market
information and other appropriate methods in order
to identify and assess the needs of the workforce de-
velopment area.
(3) BUDGET AND PROGRAM OVERSIGHT.—
(A) BUDGETING.—
(i) The local workforce development
board, working through the State adminis-
trative agent, shall develop a budget for
the purpose of carrying out local programs
established under chapter 2 of title II, title
III, and title I of the Rehabilitation Act of
1973, and for integrated career center sys-
tems established or designated under sec-
tion 107 with the exception of funds made
available under the Wagner-Peyser Act.
(ii) Such budget shall be subject to
the approval of the appropriate chief elect-
ed official or officials in the workforce de-
velopment area.
(B) PROGRAM
OVERSIGHT.—The local
workforce development board, in partnership
with the chief elected official or officials in the
workforce development area, shall conduct over-
sight of the workforce development programs
listed in subparagraph (A), and of the inte-
grated career center system established under
this title.
(4) ADMINISTRATION.—
(A) FISCAL AGENT.—
(i) The local workforce development
board may receive and disburse funds
made available for carrying out programs
authorized under chapter 2 of title II, title
III, and title I of the Rehabilitation Act of
1973 of this Act, or the local workforce de-
velopment board may designate a fiscal
agent (which may include the State
through a mutual agreement between the
local board and the State), for the purpose
of disbursement of funds to career centers
and other service providers, as designated
by the local workforce development board.
(ii) The Board may employ its own
staff, independent of local programs and
service providers, and may solicit or accept
grants and contributions from sources
other than from this Act.
(B) LIMITATION.—The workforce develop-
ment board, or employees of such board, may
not operate programs established under this
Act. The Governor is authorized to prohibit the
employees of agencies providing staff support to
such local workforce development boards from
providing workforce development services to in-
dividuals served through the use of funds au-
thorized under this Act, and under title I of the
Rehabilitation Act of 1973.
(C) CONFLICT OF INTEREST.—A member
of a workforce development board may not—
(i) discuss or participate in board con-
sideration; or
(ii) cast a vote;
regarding the provision of services by such
member (or by an organization that such mem-
ber represents) or regarding any matter that
would provide direct financial benefit to such
member. The Governor may enforce more rigor-
ous conflict of interest standards, as determined
appropriate.
(D) INDEPENDENT AUTHORITY.—
(i) The Board shall elect its own
chairperson from among the members of
the board.
(ii) The board may adopt bylaws and
other operating procedures as consistent
with the purposes of this Act, and with the
policies established in the State workforce
development and literacy plan.
(5) OTHER.—The Governor may require local
workforce development boards to carry out such
other duties as determined to be appropriate by the
Governor and the individuals and entities described
in section 103, through the collaborative process de-
scribed in the State plan.
SEC. 107. ESTABLISHMENT OF INTEGRATED CAREER CEN-
TER SYSTEMS.
(a) IN GENERAL.—The Governor of a State that de-
sires to receive a grant under one or more of the programs
specified in section 102(b) shall ensure that each local
workforce development board establish or designate an in-
tegrated career center system in the workforce develop-
ment area of such board, consistent with criteria estab-
lished under subsection (b).
(b) STATE CRITERIA.—The Governor, through the
collaborative process described under section 103, is au-
thorized to establish statewide criteria for use by local
workforce development boards in the designation or estab-
lishment of integrated career center systems to ensure
that the most effective and efficient service providers are
chosen, consistent with the requirements prescribed under
subsection (c).
(c) INTEGRATED CAREER CENTER SYSTEM RE-
QUIREMENTS.—At a minimum, integrated career center
systems shall include—
(1) common intake;
(2) preliminary assessment;
(3) integrated job search assistance;
(4) to the extent practicable, as determined by
the Governor, unified and linked computer systems,
including the availability of labor market informa-
tion as described under title II of the Wagner-Peyser
Act, as added by section 132 of this Act, and link-
ages through uniform management information sys-
tems; and
(5) to the extent practicable, as determined by
the Governor, at least one physical, co-located site
which provides comprehensive and fully integrated
workforce development services to any individual
seeking such services.
Local workforce development areas are encouraged to es-
tablish a network of comprehensive and fully-integrated
co-located career centers to provide the services described
in subsection (f), supplemented with multiple affiliated
sites or satellites that provide one or more of such services
and are linked through electronic and technological access
points. Such affiliated sites may include entities des-
ignated as having a specialization in addressing special
needs, such as the needs of individuals with disabilities.
(d) COMMON ACCESS.—Information pertaining to the
labor market which is compiled pursuant to title II of the
Wagner-Peyser Act, as added by section 132 of this Act,
shall be available, to the extent practicable, through inte-
grated electronic networks, at all integrated career centers
and affiliated sites.
(e) ELIGIBILITY FOR DESIGNATION.—Any entity or
consortium of entities located in the workforce develop-
ment area may be designated by the local workforce devel-
opment board to operate an integrated career center or
to participate in an integrated career center system. Such
entities may include the following:
(1) Institutions of higher education.
(2) Area vocational education schools.
(3) Local employment service offices, estab-
lished under the Wagner-Peyser Act.
(4) Private nonprofit organizations, (including
community-based organizations).
(5) Private for-profit entities.
(6) Agencies of local governments.
(7) Other interested organizations and entities
of demonstrated effectiveness, including local cham-
bers of commerce and other business organizations,
consistent with State criteria established pursuant to
subsection (b).
(f) DUTIES.—Each integrated career center system
shall, to the extent practicable as determined by the Gov-
ernor, carry out the following duties:
(1) PROVISION OF CORE SERVICES.—An inte-
grated career center system shall make available the
following information and core services to individuals
(J) Information on the extent to which the
services provided under titles II and III, sub-
title A of title IV, and title I of the Rehabilita-
tion Act of 1973, meet or exceed the expected
levels of performance described in the State and
local plans, and the performance-based informa-
tion provided by the State to local workforce de-
velopment boards on certified providers of edu-
cation and training, as required under section
108(d)(3).
(K) Acceptance of applications for unem-
ployment compensation.
(L) Other appropriate activities to assist
individuals into employment.
(2) DISTRIBUTION
OF
CAREER
GRANTS.—A
center or an affiliated site may serve as the point of
distribution of career grants for education, training,
and vocational rehabilitation services to eligible indi-
viduals in accordance with section 108.
(3) SPECIAL
ARRANGEMENTS.—For the pur-
pose of providing core services to individuals with se-
vere disabilities in the most effective and efficient
manner possible, the integrated career center system
may arrange to have such core services provided to
an individual by a certified provider or the State ei-
ther on a contract basis or through the use of career
grants.
(g) ADDITIONAL SERVICES.—Integrated career cen-
ter systems, may provide customized workforce develop-
ment services to employers on a fee-for-service basis, as
determined by the local workforce development board.
(h) ALTERNATIVE STATE STRATEGY.—Through the
collaborative process described in section 103, the Gov-
ernor has the authority to develop alternative strategies
to the integrated career center system, which are designed
to accomplish the full integration of workforce develop-
ment programs. These alternative strategies shall be de-
scribed in a proposal to the Secretaries of Education and
Labor for joint review and approval or disapproval not
later than 60 days after the date of receipt of such pro-
posal.
SEC. 
108. 
IDENTIFICATION 
OF 
ELIGIBLE 
EDUCATION,
TRAINING, AND VOCATIONAL REHABILITA-
TION SERVICE PROVIDERS.
(a) ELIGIBILITY REQUIREMENTS.—A program of-
fered by a provider of education and training services shall
be eligible to receive funds under title III, and title I of
the Rehabilitation Act of 1973 through the receipt of ca-
reer grants, or through contract, if such program and pro-
vider—
(1) is either—
(A) eligible to participate in title IV of the
Higher Education Act of 1965, or
(B) determined to be eligible under the
procedures described in subsection (b); and
(2) provides the performance-based information
required pursuant to subsection (c), except that pro-
viders eligible under subparagraph (A) only have to
provide information for programs other than pro-
grams leading to a degree.
(b) ALTERNATIVE ELIGIBILITY PROCEDURE.—
(1) IN GENERAL.—The Governor shall establish
an alternative eligibility procedure for providers of
education, training, and vocational rehabilitation
services (which may include private sector, for profit
and nonprofit providers of such services) in any
State desiring to receive funds under title III of this
Act and title I of the Rehabilitation Act of 1973, but
that are not eligible to participate in title IV of the
Higher Education Act of 1965. Such procedure shall
establish minimum acceptable levels of performance
for such providers, and be based on guidelines devel-
oped by the Secretaries of Labor and Education.
The Governor may utilize such criteria to certify
service providers as having the ability to meet occu-
pational skill standards promoted by the National
Skill Standards Board, or to meet, high, industry-
recognized standards that result in a portable skill
certificate in the subject, occupation, or industry for
which training is provided, except where such stand-
ards are not appropriate for the services rendered.
The Governor shall utilize the local workforce devel-
opment boards, for the identification of eligible
qualified providers of education, training, and voca-
tional rehabilitation services. During a transition pe-
riod, not to exceed 2 years, identification of eligible
programs and providers under this subsection may
be based on the performance of such programs and
providers under the Job Training Partnership Act,
the Rehabilitation Act of 1973, or other objective
measures of previous performance, such as employer
evaluations.
(2) Notwithstanding paragraph (1), if the par-
ticipation of an institution of higher education in
any of the programs under such title of such Act is
terminated, such institution shall not be eligible to
receive funds under this Act for a period of not less
than two years.
(c) 
PERFORMANCE-BASED
INFORMATION.—The
State shall identify performance-based information that is
to be submitted by providers of services for programs to
be eligible under this section. Such information may in-
clude information, relating to—
(1) the percentage of students completing the
programs conducted by the provider;
(2) the rates of licensure of graduates of the
programs conducted by the provider;
(3) the percentage of graduates of the programs
meeting industry-recognized skill standards and cer-
tification requirements that are at least as challeng-
ing as skill standards endorsed by the National Skill
Standards Board, once such standards are available.
(4) measures of program effectiveness such as
the rates of placement and retention in employment,
and the earnings of graduates of programs con-
ducted by the provider, employer evaluations of pro-
vider services, and adherence to accepted industry
quality standards (where available) by such provid-
ers;
(5) the percentage of students who obtained
employment in an occupation related to the program
conducted by the provider;
(6) the warranties or guarantees provided by
such provider relating to the skill levels or employ-
ment to be attained by students;
(7) other information for providers of services
under title I of the Rehabilitation Act of 1973 that
reflects the priority of serving individuals with severe
disabilities; and
(8) the percentage of students who, as a result
of participation in the program demonstrate signifi-
cant gains in literacy and basic skills.
(d) ADMINISTRATION.—
(1) STATE AGENCY.—The Governor is author-
ized to designate a State agency to collect, verify,
and disseminate the performance-based information
submitted pursuant to subsection (c).
(2) APPLICATION.—A provider of education and
training services that desires to be eligible to receive
funds under this title shall submit the information
required under subsection (c) to the State agency
designated under paragraph (1) of this subsection at
such time and in such form as such State agency
may require.
(3) LIST OF ELIGIBLE PROVIDERS.—The State
agency shall compile a list of eligible programs and
providers, accompanied by the performance-based in-
formation submitted, and disseminate such list and
information to the local workforce development
boards and integrated career center systems within
the State.
(4) ACCURACY OF INFORMATION.—
(A) IN GENERAL.—If the State agency de-
termines that information concerning a provider
is inaccurate, such provider shall be disqualified
from receiving funds under this title for a pe-
riod of not less than two years, unless such pro-
vider can demonstrate to the satisfaction of the
Governor or his or her designee, that the infor-
mation was provided in good faith.
(B) APPEAL.—The Governor shall estab-
lish a procedure for a service provider to appeal
a determination by a State agency that results
in a disqualification under subparagraph (A).
Such procedure shall provide an opportunity for
a hearing and prescribe appropriate time limits
to ensure prompt resolution of the appeal.
(5) ASSISTANCE
IN
DEVELOPING
INFORMA-
TION.—The State agency established pursuant to
paragraph (1) may provide technical assistance to
education, training, and vocational rehabilitation
providers in developing the information required
under subsection (b). Such assistance may include
facilitating the utilization of State administrative
records, such as unemployment compensation wage
records, and other appropriate coordination activi-
ties.
(e) ON-THE-JOB TRAINING EXCEPTION.—
(1) IN
GENERAL.—Providers of on-the-job
training are not subject to the requirements of sub-
sections (a), (b), (c), and (d).
(2) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—The Workforce Development Board
shall collect such performance-based information
from on-the-job training providers as the Governor
may require, and disseminate such information to
the local integrated career center systems.
(f) RULE OF CONSTRUCTION REGARDING STATE AS
PROVIDER OF SERVICES.—This section does not prohibit
a State from being a provider of education and training
services under title III, or under title I of the Rehabilita-
tion Act of 1973, subject to the State meeting the require-
ments of this section for serving as such a provider.
SEC. 109. MANAGEMENT INFORMATION SYSTEMS.
(a) IN GENERAL.—Each State is authorized to use
a portion of the funds it receives under this Act to design
a unified management information system that is in ac-
cordance with guidelines established jointly by the Sec-
retaries in consultation with the Governors.
(b) REQUIREMENTS.—Each unified management in-
formation system shall, to the extent practicable as deter-
mined by the Governor—
(1) be utilized for federally required fiscal re-
porting and monitoring for each of the programs au-
thorized under this Act;
(2) be used by all agencies involved in
workforce development activities, including inte-
grated career center systems which shall have the
capability to track the overall public investments
within the State and workforce development areas,
and to inform policymakers as to the results being
achieved and the demographic characteristics of the
individuals served through that investment;
(3) contain a common structure of financial re-
porting requirements, fiscal systems and monitoring
for all workforce development expenditures included
in the workforce development system that shall uti-
lize common data elements and the definitions in-
cluded in section 5;
(4) support local efforts to establish workforce
development systems, including intake and eligibility
determination for all services; and
(5) contain data on the demographic character-
istics on the participants served by programs author-
ized under this Act, which shall be collected, pro-
duced, and published by the Secretaries.
(c) PRIVACY.—Nothing in this Act shall violate the
provisions of the Family Education Rights and Privacy
Act under section 444 of the General Education Provi-
sions Act and the privacy and confidentiality provisions
under section 22(b) of title II of the Wagner Peyser Act
as amended by this Act.
SEC. 110. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) IN GENERAL.—In order to promote high levels
of performance and to ensure an appropriate return on
the Nation’s investment in the workforce development and
literacy system, each State receiving funds under this Act
shall develop, or have developed, a statewide performance
accountability system in accordance with the provisions of
this section.
(b) INDICATORS OF PERFORMANCE.—
(1) IN GENERAL.—Each State receiving funds
under this Act shall identify indicators of perform-
ance for each of the programs established under ti-
tles II through IV of this Act and title I of the Re-
habilitation Act of 1973, consistent with State goals
as described in the State plan in accordance with
section 104. Such indicators shall, at a minimum,
include the core indicators described in subsection
(f), and be expressed in an objective, quantifiable,
and measurable form. Such indicators may also in-
clude post-program surveys measuring customer sat-
isfaction of both employers and program partici-
pants.
(2) TECHNICAL DEFINITIONS OF CORE INDICA-
TORS.—In order to ensure nationwide comparability
of performance data, the Secretary of Labor and the
Secretary of Education, in collaboration with the
States and with representatives of business and in-
dustry, employees, educational agencies, service pro-
viders, participants, parents and other interested
parties, shall promulgate technical definitions of
each of the core indicators described in subsection
(f), to be used under this Act in measuring perform-
ance.
(c) EXPECTED LEVELS OF PERFORMANCE.—
(1) IN GENERAL.—(A) Each State shall identify
the level of performance, consistent with State goals
described under section 104, that is expected for
local workforce development areas and other applica-
ble local administrative entities under this Act. In
determining such levels, the State shall take into ac-
count the challenging levels identified under para-
graph (2), and initially develop baseline levels of per-
formance upon which the State will measure contin-
uous improvement.
(B) The Governor, through the collaborative
process, may adjust the expected level of perform-
ance with respect to each local area taking into ac-
count specific economic, demographic, and geo-
graphic factors, and the characteristics of the popu-
lation to be served.
(2) 
CHALLENGING
LEVELS
OF
PERFORM-
ANCE.—In order to encourage high levels of per-
formance and advance the Nation’s competitiveness
in the global economy, the Secretary of Labor and
the Secretary of Education, in collaboration with the
States and with representatives of business and in-
dustry, employees, educational agencies, service pro-
viders, participants, parents and other interested
parties, shall identify challenging levels of perform-
ance with respect to appropriate core indicators se-
lected from among the core indicators described in
subsection (f). Where applicable, such challenging
levels of performance shall reflect industry-recog-
nized skill standards.
(d) REPORT ON PERFORMANCE.—
(1) IN GENERAL.—The State shall report to the
Secretary of Labor and the Secretary of Education,
the levels of performance achieved by local workforce
development areas and other applicable local admin-
istrative entities with respect to the indicators iden-
tified pursuant to subsection (b)(1) for each pro-
gram year. The Secretaries shall make such infor-
mation available to the general public through publi-
cation and other appropriate methods, and shall dis-
seminate State-by-State comparisons, and compari-
sons with other industrialized nations (where appro-
priate).
(2) REPORTING
OPTIONS.—In the collection
and reporting of such data, States are encouraged to
utilize administrative reporting data on quarterly
earnings, establishment and industry affiliation, and
geographic location of employment, such as unem-
ployment insurance wage-data records.
(e) CONSEQUENCES FOR POOR PERFORMANCE.—
(1) CRITERIA.—The Governor, through the col-
laborative process, is authorized to establish criteria
for determining whether local workforce development
areas and other applicable local administrative enti-
ties have failed to meet expected levels of perform-
ance with respect to programs under this Act.
(2) CONSEQUENCES
FOR
POOR
PERFORM-
ANCE.—
(A) STATE
CONSEQUENCES.—If a State
fails to meet expected levels of performance for
a program for any program year as established
pursuant to subsection (a), the Secretary of
Education or the Secretary of Labor, as appro-
priate to the particular program, may provide
technical assistance, including assistance in the
development of a performance improvement
plan. If such failure continues for a second con-
secutive year, the appropriate Secretary may re-
duce by not more than 5 percent, the amount
of the grant that would (in the absence of this
paragraph) be payable to the State under such
program for the immediately succeeding pro-
gram year. Such penalty shall be based on the
degree of failure to meet expected levels of per-
formance.
(B) LOCAL CONSEQUENCES.—(i) If a local
workforce development area, or other applicable
local administrative entity, fails to meet ex-
pected levels of performance for a program for
any program year under the criteria established
in paragraph (1), the Governor, through the
collaborative process, may provide technical as-
sistance, including the development of a per-
formance improvement plan.
(ii) If such failure continues for a second
consecutive year, the Governor may take correc-
tive actions, such as the withholding of funds,
the redesignation of a local administrative en-
tity, or such other actions as the Governor,
through the collaborative process, determines
are appropriate, consistent with State law, sec-
tion 104(c)(3) of this Act, and the requirements
of this Act.
(f) CORE INDICATORS OF PERFORMANCE.—
(1) COMMON CORE INDICATORS FOR ADULTS.—
In addition to the core indicators of performance de-
scribed in paragraph (2), common core indicators of
performance for programs conducted under titles III
and IV of this Act, and under title I of the Voca-
tional Rehabilitation Act of 1973 shall be weighted
and applied to each of the individual programs, ac-
cording to the purposes of such titles, and include
measures of—
(A) placement in unsubsidized employ-
ment;
(B) retention in unsubsidized employment
for not less than 6 months and for not less than
12 months, respectively;
(C) increases in earnings, or in earnings in
combination with employer-assisted benefits;
(D) attainment of industry-recognized oc-
cupational skills, including basic workplace
competencies 
and 
industry-recognized 
skill
standards, which may include the acquisition of
a skill certificate in the occupation for which
the individual has been prepared;
(E) attainment of a high school diploma, a
general equivalency diploma, or a certificate of
completion of a program authorized under the
Rehabilitation Act of 1973; and
(F) such other measures of performance
that the State may wish to collect.
(2) 
ADDITIONAL
CORE
INDICATORS
FOR
ADULTS.—
(A) ADULT EMPLOYMENT AND TRAINING
PROGRAMS.—In addition to the common core
indicators described in paragraph (1), the core
indicators of performance for programs con-
ducted under title III shall include measures of
the success of individuals with barriers to em-
ployment, including dislocated workers, eco-
nomically 
disadvantaged 
individuals, 
older
workers, individuals with disabilities, displaced
homemakers, veterans, and individuals who are
basic skills deficient, in achieving performance
goals established pursuant to this Act.
(B) ADULT EDUCATION AND FAMILY LIT-
ERACY PROGRAMS.—In addition to the common
core indicators described in paragraph (1), the
core indicators of performance for programs
conducted under title IV shall include measures
of—
(i) the number of individuals who, as
a result of participation in programs fund-
ed under this Act, demonstrate significant
gains in literacy skills; and
(ii) such other measures of perform-
ance that the State may wish to collect, in-
cluding measures of the success of family
literacy programs, increased English lan-
guage skills, and increased community in-
volvement.
(C) 
PROGRAMS
ESTABLISHED
UNDER
TITLE
I
OF
THE
REHABILITATION
ACT
OF
1973.—In addition to the common core indica-
tors described in paragraph (1), the core indica-
tors of performance for programs conducted
under title I of the Rehabilitation Act of 1973
shall include measures of the success of individ-
uals with severe disabilities, including those in-
dividuals determined to have a disability under
title II or title XVI of the Social Security Act,
in achieving performance goals established pur-
suant to this Act.
(3) CORE INDICATORS FOR YOUTH DEVELOP-
MENT AND CAREER PREPARATION PROGRAMS.—The
core indicators of performance for programs con-
ducted under title II shall include measures of—
(A) attainment of challenging State aca-
demic standards;
(B) attainment of a high school diploma or
a general equivalency diploma;
(C) attainment of industry-recognized oc-
cupational skills, including basic workplace
competencies 
and 
industry-recognized 
skill
standards, which may include the acquisition of
a skill certificate in the occupation for which
the individual has been prepared; if such skill
certificate is acquired in addition to or in com-
bination with a high school diploma or general
equivalency diploma;
(D) reduction in school dropout rates;
(E) positive results such as placement in
postsecondary education or advanced training,
military service, employment, or registered ap-
prenticeships;
(F) the success of individuals described
under section 201(12) in achieving performance
goals established pursuant to this Act, including
placement in nontraditional training and em-
ployment; and
(G) such other measures of performance
that the State may wish to collect.
SEC. 111. LIMITATION ON FEDERAL REGULATIONS.
The Secretary of the Department of Labor and the
Secretary of the Department of Education shall issue reg-
ulations under this Act only to the extent that such regula-
tions are necessary to ensure that there is compliance with
the specific requirements of this Act.
SEC. 112. GENERAL PROVISION.
Nothing in this Act shall mandate that any individ-
ual, particularly youth served under title II of this Act,
be required to choose a specific career path or major.
SEC. 113. LIABILITY.
Expenditures that are disallowed (except in the case
of fraud, embezzlement, or other criminal activities) under
this Act or under title I of the Rehabilitation Act of 1973,
may be repaid from funds allocated under the title for
which such disallowance occurs, in subsequent program
years or fiscal years, as appropriate, after the year in
which such disallowance occurred. The amount of funds
repaid should be equal to the amount of funds disallowed.
Subtitle B—Amendments to
Wagner-Peyser Act
SEC. 131. GENERAL PROGRAM REQUIREMENTS.
(a) DEFINITIONS.—Section 2 of the Act of June 6,
1933 (commonly known as the ‘‘Wagner-Peyser Act’’) (29
U.S.C. 49a) is amended—
(1) in paragraph (1), by striking ‘‘Job Training
Partnership Act’’ and inserting ‘‘Consolidated and
Reformed Education, Employment, and Rehabilita-
tion Systems Act’’;
(2) in paragraph (2) to read as follows:
‘‘(2) the term ‘local workforce development
board’ means a local workforce development board
established under title I of the Consolidated and Re-
formed Education, Employment, and Rehabilitation
Systems Act;’’;
(3) in paragraph (4) to read as follows:
‘‘(4) the term ‘local workforce development
area’ means a local workforce development area es-
tablished under title I of the Consolidated and Re-
formed Education, Employment, and Rehabilitation
Systems Act;’’;
(4) in paragraph (5), by striking the period at
the end and inserting a semicolon; and
(5) by adding at the end the following new
paragraphs:
‘‘(6) the term ‘public employment office’ means
an office which provides employment services to the
general public as part of an integrated career center
system; and
‘‘(7) the term ‘integrated career center system’
means an integrated career center system estab-
lished under title I of the Consolidated and Re-
formed Education, Employment, and Rehabilitation
Systems Act.’’.
(b) DUTIES.—Section 3(a) of such Act (29 U.S.C.
49b(a)) is amended to read as follows:
‘‘(a) The Secretary of Labor shall, pursuant to title
II of this Act—
‘‘(1) assist in the coordination and development
of a nationwide system of labor exchange services for
the general public;
‘‘(2) assist in the development of performance
standards, benchmarks, and continuous improve-
ment models for such nationwide system which en-
sures private sector satisfaction and meets the de-
mands of jobseekers; and
‘‘(3) ensure the continued services for individ-
uals receiving unemployment compensation.’’.
(c) REQUIREMENTS FOR RECEIPT OF FUNDS.—Sec-
tion 4 of such Act (29 U.S.C. 49c) is amended by striking
‘‘a State shall, through its legislature’’ and inserting ‘‘the
Governor of a State shall, through the collaborative proc-
ess described in title I of the Consolidated and Reformed
Education, Employment, and Rehabilitation Systems
Act’’.
(d) AUTHORIZATION OF APPROPRIATIONS.—Section
5 of such Act (29 U.S.C. 49d) is amended by inserting
before the period at the end the following: ‘‘, of which not
less than 25 percent shall be for carrying out both section
14 and title II of this Act’’.
(e) USE
OF FUNDS UNDER THIS ACT.—Section
7(c)(2) of such Act (29 U.S.C. 49f(c)(2)) is amended by
striking ‘‘any of the following provisions of law’’ and all
that follows and inserting ‘‘the Consolidated and Re-
formed Education, Employment, and Rehabilitation Sys-
tems Act.’’.
(f) STATE PLAN.—Section 8 of such Act (29 U.S.C.
49g) is amended—
(1) in subsection (a) to read as follows:
‘‘(a) Any State desiring to receive assistance under
this Act shall submit to the Secretary, as part of the State
workforce development and literacy plan authorized under
title I of the Consolidated and Reformed Education, Em-
ployment, and Rehabilitation Systems Act, detailed plans
for carrying out the provisions of this Act within such
State.’’;
(2) by striking subsections (b), (c), and (e); and
(3) by redesignating subsection (d) as sub-
section (b).
(g) ELIMINATION
OF FEDERAL ADVISORY COUN-
CIL.—Section 11 of such Act (29 U.S.C. 49j) is hereby
repealed.
(h) CONFORMING AMENDMENTS.—
(1) Such Act is amended by inserting after sec-
tion 2 the following new heading:
‘‘TITLE I—GENERAL PROGRAM
REQUIREMENTS’’.
(2) Section 4 of such Act is amended by strik-
ing ‘‘United States Employment Service’’ and insert-
ing ‘‘Secretary of Labor’’.
(3) Section 7(b)(2) of such Act is amended by
striking ‘‘private industry council’’ and inserting
‘‘local workforce development board’’.
(4) Section 7(d) of such Act is amended—
(A) by striking ‘‘United States Employ-
ment Service’’ and inserting ‘‘Secretary of
Labor’’; and
(B) by striking ‘‘Job Training Partnership
Act’’ and inserting ‘‘Consolidated and Reformed
Education, Employment, and Rehabilitation
Systems Act’’.
(5) Section 12 of such Act is amended by strik-
ing ‘‘The Director, with the approval of the Sec-
retary of Labor,’’ and inserting ‘‘The Secretary of
Labor’’.
SEC. 132. LABOR MARKET INFORMATION.
The Act of June 6, 1933 (commonly known as the
‘‘Wagner-Peyser Act’’; 29 U.S.C. 49), as amended by sec-
tion 131, is further amended by adding at the end the
following new title:
‘‘TITLE II—LABOR MARKET
INFORMATION
‘‘SEC. 21. PURPOSE.
‘‘The purpose of this title is to ensure a comprehen-
sive and coordinated system of labor market information
which will provide locally based, accurate, up-to-date, eas-
ily accessible, and user friendly labor market information
through a cooperative Federal, State, and local governance
structure which includes partnerships with the private sec-
tor at all levels.
‘‘SEC. 22. SYSTEM CONTENT.
‘‘(a) IN GENERAL.—The Secretary of Labor, in ac-
cordance with the provisions of this title, shall oversee the
development, maintenance, and continuous improvement
of a nationwide system of labor market information using
statistically valid data, which include—
‘‘(1) statistical data from survey and projection
programs and data from administrative reporting
systems, which, taken together, enumerate, estimate,
and project the supply and demand for labor at Fed-
eral, State, and local levels in a timely manner, in-
cluding data on—
‘‘(A) the demographic characteristics, as
defined in section 5 of the Consolidated and Re-
formed Education, Employment, and Rehabili-
tation Systems Act, socioeconomic characteris-
tics, and current employment status of the pop-
ulation, including self-employed, part-time, and
seasonal workers, and individuals with severe
disabilities, as such data are available from the
Bureau of Census and other sources;
‘‘(B) job vacancies, education and training
requirements, skills, wages, benefits, working
conditions, and industrial distribution of occu-
pations, as well as current and projected em-
ployment opportunities and trends by industry
and occupation;
‘‘(C) the educational attainment, training,
skills, skill levels, and occupations of the popu-
lation aggregates, as such data area are avail-
able from the Bureau of Census and other
sources;
‘‘(D) information (such as unemployment
insurance wage data records) maintained in a
longitudinal manner on the quarterly earnings,
establishment and industry affiliation, and geo-
graphic location of employment; and
‘‘(E) the incidence, industrial and geo-
graphical location, and number of workers dis-
placed by permanent layoffs and plant closings;
‘‘(2) State and local employment and consumer
information on—
‘‘(A) job openings, locations, hiring re-
quirements, and application procedures, as well
as profiles of employers in the local labor mar-
ket describing the nature of work performed,
employment requirements, wages, benefits, and
hiring patterns as such information is volun-
teered by employers;
‘‘(B) aggregate data on job seekers, includ-
ing their education and training, skills, skill lev-
els, employment experience, and employment
goals; and
‘‘(C) education courses, training programs,
job placement programs, and vocational reha-
bilitation programs (where appropriate), includ-
ing—
‘‘(i) program performance information
as required by this Act, such as summary
data on program completion, acquisition of
industry-recognized skill standards, job
placement, earnings, and the level of satis-
faction of the participants and their em-
ployers; and
‘‘(ii) descriptive information on pro-
grams, such as eligibility requirements,
costs, financial support, or other support-
ive services, and other appropriate infor-
mation which may be available with these
courses and programs;
‘‘(3) technical standards for data and informa-
tion that will—
‘‘(A) as a minimum guarantor of data use-
fulness and quality, ensure compatibility and
additivity of data and information to enable
comparisons among localities and States;
‘‘(B) support standardization and aggrega-
tion of data and information from the adminis-
trative reporting systems of employment-related
programs; and
‘‘(C) include—
‘‘(i) classification and coding systems
for industries, occupations, skills, pro-
grams, and courses;
‘‘(ii) nationally standardized defini-
tions of terms;
‘‘(iii) a common system for designat-
ing geographic areas;
‘‘(iv) quality control mechanisms for
data collection and analysis; and
‘‘(v) common schedules for data col-
lection and dissemination;
‘‘(4) analysis of data and information for uses
including—
‘‘(A) Federal, State, and local economic
policymaking;
‘‘(B) the implementation of Federal poli-
cies, including the allocation of Federal funds
to States and localities and the facilitation of
job search and hiring in local labor markets;
‘‘(C) Federal, State, and local program
planning and evaluation; and
‘‘(D) research on labor market dynamics;
‘‘(5) dissemination mechanisms for data and
analysis, including mechanisms which may be stand-
ardized among the States and technical standards in
the design of automated databases, and the design
of user interfaces and communications protocols;
‘‘(6) programs of technical assistance for States
and localities in the development, maintenance, and
utilization of data, analysis, and dissemination
mechanisms, including assistance in adopting and
utilizing automated systems and improving the ac-
cess, through electronic and other means, of youth,
adults, and employers to labor market information
for localities, States, and the Nation;
‘‘(7) programs of research and demonstration,
which may be carried out by States and other public
or private entities, on ways to improve the products
and processes authorized in this title; and
‘‘(8) objective performance measures, which will
allow for the continuous monitoring of the progress
of the labor market information system at national,
State, and local levels.
‘‘(b) INFORMATION TO BE CONFIDENTIAL.—
‘‘(1) IN GENERAL.—No officer or employee of
the Federal Government or agent of the Federal
Government may—
‘‘(A) use the information furnished under
the provisions of this title for any purpose other
than the statistical purposes for which it is sup-
plied;
‘‘(B) make any publication whereby the
data furnished by any particular establishment
or individual under this title can be individually
identified; or
‘‘(C) permit anyone other than the sworn
officers and employees of any Federal depart-
ment or agency to examine the individual re-
ports.
‘‘(2) IMMUNITY FROM LEGAL PROCESS.—Any
information which is collected and retained under
this title shall be immune from the legal process and
shall not, without the consent of the individual or es-
tablishment concerned, be admitted as evidence or
used for any purpose in any action, suit, or other ju-
dicial or administrative proceeding.
‘‘SEC. 23. FEDERAL RESPONSIBILITIES.
‘‘(a) IN GENERAL.—The Nation’s labor market infor-
mation system shall be planned, administered, overseen,
and evaluated by a cooperative governance structure in-
volving the Federal Government, States, and local entities.
‘‘(b) DUTIES.—The Secretary, with respect to data
collection, analysis, and dissemination of labor market in-
formation, shall carry out the following duties:
‘‘(1) Ensure that all statistical and administra-
tive data collection activities within the Department
of Labor, including the Employment and Training
Administration, Veterans’ Employment and Training
Service, Employment Standards Administration, and
the Occupational Health and Safety Administration,
are consistent with those of the Bureau of Labor
Statistics.
‘‘(2) Assign responsibilities, as appropriate, to
agencies such as the Employment and Training Ad-
ment of Veterans’ Affairs with respect to vocational
rehabilitation programs in the design and provision
of standardized information to the States to support
section 22(2), and in the dissemination of labor mar-
ket information.
‘‘(5) Establish confidentiality standards for the
labor market information system at Federal, State,
and local levels, including such provisions as may be
necessary, to be taken in coordination with the
States, to ensure that privacy and confidentiality
protections are guaranteed with respect to individ-
uals and firm data.
‘‘(c) ADDITIONAL DUTIES.—The Secretary, in col-
laboration with the Bureau of Labor Statistics, with the
assistance of other agencies of the Department where ap-
propriate, shall—
‘‘(1) establish and maintain, with the coopera-
tion of the States, elements of the system described
in sections 22(a)(1) and 22(a)(3);
‘‘(2) develop and promulgate standards, defini-
tions, formats, collection methodologies, and other
necessary system elements for the use of the States
in their assembling and presentation of the employ-
ment information specified in section 22(a)(2);
‘‘(3) eliminate gaps and duplication in statis-
tical undertakings, with the systemization of wage
surveys as an early priority;
‘‘(4) recommend any needed improvements in
administrative reporting systems to support the de-
velopment of labor market information from their
data; and
‘‘(5) ensure that—
‘‘(A) data are sufficiently timely relevant
to employers and other users, and locally de-
tailed for uses including those specified in sec-
tion 22(a)(4);
‘‘(B) administrative records are standard-
ized to facilitate the aggregation of data from
local to State and national levels and to support
the creation of new statistical series from pro-
gram records; and
‘‘(C) paperwork and reporting require-
ments on employers and individuals are re-
duced.
‘‘SEC. 24. ANNUAL PLAN.
‘‘(a) IN GENERAL.—The Secretary of Labor, in col-
laboration with the Bureau of Labor Statistics, and with
assistance of other appropriate Federal agencies, shall
prepare an annual plan to be the operational mechanism
for achieving a cooperative Federal/State governance
structure for labor market information and provide the
written justification for the Department of Labor’s budget
request to Congress by describing the activities and prior-
ities of the Bureau of Labor Statistics, other offices within
the Department of Labor, and other Federal agencies with
regard to data collection, analysis, and dissemination of
labor market information for fiscal years succeeding the
fiscal year in which the plan is developed and shall in-
clude—
‘‘(1) the results of a periodic review of users’
needs and priorities, including the identification of
new employment issues and the attendant emergence
of new needs, on the part of Congress, the States,
employers, youth, and adults, for data, analysis, and
dissemination;
‘‘(2) an evaluation, including the results of ob-
jective measures, of the performance of the labor
market information system in meeting these needs
and the steps to be taken to overcome deficiencies;
‘‘(3) a summary of ongoing data programs and
activities under section 22 and a description of the
development of new data programs, analytical tech-
niques, definitions and standards, dissemination
mechanisms, training and technical assistance, gov-
ernance mechanisms, and funding processes to meet
new needs; and
‘‘(4) the results of an annual review of the costs
to the States of meeting contract requirements for
data production under this title, including a descrip-
tion of how the Secretary’s requested budget will
cover these costs.
‘‘(b) COOPERATION WITH THE STATES.—The Sec-
retary and the Bureau of Labor Statistics, in cooperation
with the States, shall develop the plan by—
‘‘(1) establishing procedures and mechanisms
for holding formal and periodic consultations on
products and administration of the system, at least
once each quarter, with representatives of employers
as well as with representatives of the States from
each of the 10 Federal regions of the Department of
Labor, elected by and from among the State direc-
tors of labor market information, according to a
process set forth by the Secretary; and
‘‘(2) incorporating in the annual plan, for its
submission to Congress, the results of these con-
sultations, including any supplementary or dissent-
ing views from representatives of the States.
‘‘(c) REPRESENTATIVES OF STATES DEEMED TO BE
FEDERAL EMPLOYEES.—For purposes of the development
of the annual plan and to meet the provisions of Office
of Management and Budget Circular A–11, the represent-
atives of the States, elected in accordance with subsection
(b)(1), shall be considered to be employees of the Depart-
ment of Labor.
‘‘SEC. 25. GOVERNOR’S RESPONSIBILITIES.
‘‘(a) DESIGNATION OF STATE AGENCY.—The Gov-
ernor of each State shall designate a single State agency
to be the agency responsible for the management and over-
sight of a statewide comprehensive labor market informa-
tion system and for the State’s participation in the cooper-
ative Federal/State governance structure for the nation-
wide labor market information system.
‘‘(b) DUTIES.—In order to receive Federal financial
assistance under this Act, the State agency shall—
‘‘(1) develop, maintain, and continuously im-
prove a comprehensive labor market information sys-
tem, which shall—
‘‘(A) include all the elements specified in
section 22; and
‘‘(B) be responsive to the needs of the
State and its localities for planning and evalua-
tive data, including employment and economic
analyses and projections, as required by this
Act, the Consolidated and Reformed Education,
Employment, and Rehabilitation Systems Act,
the Social Security Act, and other provisions of
law which require the use of labor market infor-
mation;
‘‘(2) ensure the performance of contract and
grant responsibilities for data collection, analysis,
and dissemination;
‘‘(3) conduct such other data collection, analy-
sis, and dissemination activities as will ensure com-
prehensive State and local labor market information;
‘‘(4) actively seek the participation of other
State and local agencies, with particular attention to
State education, economic development, human serv-
ices, and welfare agencies, in data collection, analy-
sis, and dissemination activities in order to ensure
complementarity and compatibility among data; and
‘‘(5) participate in the development of the na-
tional annual plan.’’.
Subtitle C—General Provision
SEC. 141. WORKER RIGHTS.
The following requirements shall apply to programs
under titles II and III of this Act:
(1) PROHIBITION ON DISPLACEMENT.—A par-
ticipant in a program under titles II or III shall not
displace any currently employed worker (including a
partial displacement, such as a reduction in the
hours of non-overtime work, wages, or employment
benefits).
(2) PROHIBITION
ON
IMPAIRMENT
OF
CON-
TRACTS.—A program under title II or III shall not
impair existing contracts for services or collective
bargaining agreements, and no such program that
would be inconsistent with the terms of a collective
bargaining agreement shall be undertaken without
the written concurrence of the labor organization
and employer concerned.
(3) PROHIBITION ON REPLACEMENT.—A partic-
ipant in a program under title II or III shall not be
employed—
(A) when any other individual is on tem-
porary layoff, with the clear possibility of recall,
from the same or any substantially equivalent
job with the participating employer; or
(B) when the employer has terminated the
employment of any regular employee or other-
wise reduced the workforce of the employer with
the intention of filling the vacancy so created
with the student.
(4) WORKPLACES.—A participant in a program
under title II or III shall be provided with adequate
and safe equipment and safe and healthful work-
places in conformity with all health and safety re-
quirements of Federal, State, and local law.
(5) EFFECT ON OTHER LAWS.—Nothing in this
Act shall be construed to modify or affect any Fed-
eral or State law prohibiting discrimination on the
basis of race, religion, color, ethnicity, national ori-
gin, gender, age, or disability, or to modify or affect
any right to enforcement of this Act that may exist
under other Federal laws, except as expressly pro-
vided by this Act.
SEC. 142. TRANSFERABILITY.
The Governor, through the collaborative process, has
the authority to transfer not more than 10 percent of the
total allotment to a State under title II or title III of this
Act, between such titles. Funds transferred under this au-
thority must be distributed to local providers in accord-
ance with the provisions of title II and III of this Act.
TITLE II—YOUTH DEVELOPMENT
AND CAREER PREPARATION
CONSOLIDATION GRANT
SEC. 201. PURPOSES.
It is the purpose of this title to provide States and
local communities maximum flexibility in designing youth
development and career preparation programs that—
(1) help youth attain the academic skills and
occupational skills needed to be successful in a glob-
al economy and for lifelong learning;
(2) best suit the needs of in-school and at-risk
youth in their communities;
(3) promote strong connections between in-
school and at-risk programs, to ensure that youth
are prepared for further education opportunities and
good jobs, and promote youth development and ca-
reer preparation programs that provide opportunities
for youth to receive postsecondary education and oc-
cupational training;
(4) promote the formation of education and
business partnerships that are dedicated to linking
the worlds of school and work; and
(5) promote high academic and occupational
standards and quality vocational-technical education,
including improved secondary and postsecondary
programs, by focusing resources on program im-
provement initiatives that help prepare youth for
further education, training, and high-wage jobs in
high-performance workplaces.
SEC. 202. DEFINITIONS.
For purposes of this title:
(1) The term ‘‘administration’’ means activities
of a State necessary for the proper and efficient per-
formance of its duties under this title, including su-
pervision, but does not include curriculum develop-
ment activities, personnel development, or research
activities.
(2) The term ‘‘all aspects of the industry’’
means strong experience in, and understanding of,
all aspects of the industry that youth are preparing
to enter, including planning, management, finances,
technical and production skills, underlying principles
of technology, labor issues, and health and safety.
(3) The term ‘‘articulation agreement’’ means a
commitment to a program designed to provide stu-
dents with a nonduplicative sequence of progressive
coursework in secondary and postsecondary edu-
cation.
(4) The term ‘‘cooperative education’’ means a
method of instruction of education for youth who,
through written cooperative arrangements between
the school and employers, receive instruction, includ-
ing required academic courses and related instruc-
tion by alternation of study in school with a job in
any occupational field. Such alternation shall be
planned and supervised by the school and employers
so that each contributes to the youth’s education
and employability. Work periods and school attend-
ance may be on alternate half days, full days, weeks,
or other periods of time in fulfilling the cooperative
program.
(5) The term ‘‘corrections vocational education’’
means programs administered by the State to assist
juvenile and adult criminal offenders in correctional
institutions in the State, including correctional insti-
tutions operated by local authorities.
(6) The term ‘‘curricula’’ means instructional
and related or supportive material, including mate-
rials using advanced learning technology, in any oc-
cupational field which is designed to strengthen the
academic foundation and prepare youth for employ-
ment at the entry level or to upgrade occupational
competencies of those previously or presently em-
ployed in any occupational field, and appropriate
counseling and guidance material.
(7) Except as otherwise provided, the term ‘‘eli-
gible institution’’ means a local educational agency,
an area vocational education school, an intermediate
educational agency, an institution of higher edu-
cation (as such term is defined in section 1201(a) of
the Higher Education Act of 1965), a State correc-
tions educational agency, or consortia of such enti-
ties.
(8) The term ‘‘partnership’’ means a local en-
tity that is responsible for local youth development
and career preparation programs and may consist of
parents, employers, representatives of local edu-
cational agencies and local postsecondary edu-
cational institutions (including representatives of
area vocational education schools, where applicable),
local educators (such as teachers, counselors, or ad-
ministrators), representative employee organizations,
students, and may include other entities.
(9) The term ‘‘Secretary’’ means the Secretary
of Education.
(10) The term ‘‘sequential course of study’’
means an integrated series of courses which are di-
rectly related to the educational and occupational
skill preparation of youth for jobs, or preparation for
postsecondary education.
(11) The term ‘‘single parent’’ means an indi-
vidual who—
(A) is unmarried or legally separated from
a spouse; and
(B)(i) has a minor child or children for
whom the parent has either custody or joint
custody; or
(ii) is pregnant.
(12) The term ‘‘special populations’’ includes
individuals with disabilities, economically disadvan-
taged individuals, individuals of limited English pro-
ficiency, and individuals who are eligible for non-
traditional training and employment.
(13) The term ‘‘tech-prep education program’’
means a program of study which—
(A) combines at least 2 years of secondary
and 2 years of postsecondary education in a
nonduplicative sequential course of study;
(B) integrates academic and vocational in-
struction;
(C) provides technical preparation in at
least 1 field of engineering technology, applied
science, mechanical, industrial, or practical arts
or trade, or agriculture, health occupations, or
business;
(D) builds student competence in mathe-
matics, science, communications, and workplace
skills, through applied academics and integrated
instruction in a coherent sequence of courses;
(E) leads to an associate degree or certifi-
cate in a specific career field;
(F) leads to placement in appropriate em-
ployment or further education; and
(G) enables a student to fulfill a career re-
lating to labor market needs.
(14) The term ‘‘vocational education’’ means
organized educational programs offering a sequence
of courses which are directly related to the prepara-
tion of youth in paid or unpaid employment in cur-
rent 
or 
emerging 
occupations, 
including
nonbaccalaureate certificate and degree programs
and baccalaureate vocational degree programs. Such
programs include competency-based applied learning
which contributes to a youth’s academic knowledge,
higher-order reasoning, and problem-solving skills,
work attitudes, general employability skills, and the
occupational-specific skills necessary for economic
independence as a productive and contributing mem-
ber of society. Such term also includes applied tech-
nology education.
(15) The term ‘‘vocational student organiza-
tions’’ means those organizations for individuals en-
rolled in vocational education programs which en-
gage in activities as an integral part of the instruc-
tional program. Such organizations may have State
and national units which aggregate the work and
purposes of instruction in vocational education at
the local level.
Subtitle A—State Funding
SEC. 211. NATIONAL AND STATE FUNDING.
(a) NATIONAL PROGRAMS.—In each fiscal year, of
the amounts made available under section 4, the Secretary
is authorized to reserve 20 percent or $25,000,000, which-
ever is less, to carry out the provisions of subtitle D.
(b) STATE ALLOTMENT.—
(1) IN GENERAL.—Of the funds remaining after
the reservation under subsection (a), the Secretary
shall allot to each State for each fiscal year an
amount based on that State’s allotment percentage.
(2) ALLOTMENT PERCENTAGE.—(A) Except as
provided in subparagraph (B), the allotment per-
centage of a State for a fiscal year shall be the same
percentage of funds allotted to the State under this
section in the preceding fiscal year.
(B) The allotment percentage of a State for fis-
cal year 1996 shall be the percentage of funds allot-
ted to the State in fiscal year 1995 under—
(i) section 101 or 101A of the Carl D. Per-
kins Vocational and Applied Technology Edu-
cation Act as such Act was in effect on the day
before the date of the enactment of this Act;
and
(ii) the funding allotted in fiscal year 1995
under section 252 and 262 of the Job Training
Partnership Act as such Act was in effect on
the day before the date of the enactment of this
Act.
(3) STATE
MINIMUM.—Notwithstanding any
other provision of law and subject to paragraph (1),
any fiscal year for which the amounts appropriated
for programs authorized by this title exceed the
amounts available under subparagraph (B) for fiscal
year 1995, a State shall receive not less than one-
quarter of one percent of the amount available for
each such program for that fiscal year under this
subsection. Amounts necessary for increasing such
payments to States to comply with the preceding
sentence shall be obtained by ratably reducing the
amounts to be paid to other States.
(4) DEFINITION.—For the purposes of this sub-
section the term ‘‘State’’ means, in addition to the
several States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Virgin Islands,
100
Guam, American Samoa, and the Northern Mariana
Islands.
(c) FUNDING FOR STATE PROGRAMS.—Of the funds
allotted to a State under subsection (b) for each fiscal
year, the Governor, through the collaborative process,
shall—
(1) make available not less than 90 percent to
local providers;
(2) make available not more than 8 percent for
State programs described in section 222; and
(3) make available not more than 2 percent for
administrative purposes at the State level.
(d) PROVISO.—None of the funds made available
under this title shall be used to compel any youth to pur-
sue a specific career. Youth participating in programs
under this title shall be eligible to change their course of
study and training.
SEC. 212. WITHIN STATE ALLOCATION.
(a) IN GENERAL.—
(1) 
ALLOCATION
OF
FUNDS.—From 
the
amounts 
made 
available 
pursuant 
to 
section
211(c)(1), the Governor, through the collaborative
process, shall—
(A) allocate to eligible institutions an
amount equal to not less than 40 percent of
101
such amount for in-school youth programs de-
scribed in section 241;
(B) allocate to local workforce development
boards an amount equal to not less than 40
percent of such amount for at-risk youth pro-
grams described in section 245.
(2) 
DISCRETIONARY
FUNDS.—From 
the
amounts 
made 
available 
pursuant 
to 
section
211(c)(1), the Governor, through the collaborative
process, is authorized to provide 10 percent of such
amounts for discretionary purposes, as determined
by the Governor, to eligible institutions or local
workforce development boards for in-school and at-
risk youth.
(3) REMAINDER OF FUNDS.—From the remain-
der of amounts made available pursuant to section
211(c)(1) and distributed pursuant to paragraphs
(1) and (2) of this subsection, the Governor, through
the collaborative process, shall allocate the remain-
der of any such amounts to carry out the purposes
of subparagraphs (A) or (B) of paragraph (1).
(b) WITHIN STATE FORMULA.—
(1) ESTABLISHMENT.—The Governor, through
the collaborative process, and after consultation with
local chief elected officials in the local workforce de-
102
velopment area and, where appropriate, local edu-
cators in such area, shall develop a formula for the
allocation of funds in accordance with paragraph (1)
of subsection (a). Such formula shall take into ac-
count—
(A) poverty rates within each local commu-
nity, as determined by the State;
(B) the proportion of the State’s youth
population residing within each local commu-
nity; and
(C) such other factors as considered appro-
priate.
(2) ADDITIONAL
FACTORS.—In establishing
such formula, the Governor shall ensure that funds
are distributed equitably throughout the State, and
that the factors described in paragraph (1) do not
receive disproportionate weighting.
(c) MINIMUM GRANT AMOUNTS.—
(1) LOCAL EDUCATIONAL AGENCIES.—A local
educational agency or consortium of such agencies
that receives a subgrant from a State under para-
graph (1) of subsection (a) for any fiscal year shall
receive not less than $15,000.
(2) POSTSECONDARY
INSTITUTIONS.—A post-
secondary institution or consortium of such institu-
103
tions that receives a subgrant from a State under
paragraph (1) of subsection (a) for any fiscal year
shall receive not less than $50,000.
(3) LOCAL DEVELOPMENT BOARD.—A local de-
velopment board that receives a subgrant from a
State under paragraph (1) of subsection (a) for any
fiscal year shall receive not less than $15,000.
(4) 
SECONDARY-POSTSECONDARY
CONSOR-
TIA.—One or more local educational agencies and
one or more eligible institutions may enter into a
consortium agreement. A consortium formed pursu-
ant to this paragraph that receives a subgrant from
a State under this subtitle shall receive not less than
$50,000 in any fiscal year.
(d) FUNDS TO CONSORTIUM.—Funds allocated to a
consortium formed to meet the requirements of subsection
(c) shall be used only for purposes and activities that are
mutually beneficial to all members of the consortium. Such
funds may not be reallocated to individual members of the
consortium for purposes or activities benefiting only one
member of the consortium.
(e) WAIVER.—The State may waive the application
of subsection (c) in any case in which a grant recipient—
(1) is located in a rural, sparsely-populated
area; and
104
(2) demonstrates an inability to enter into a
consortium for purposes of providing services under
this title.
Subtitle B—State Organizational,
Planning, and Reporting Re-
sponsibilities
SEC. 221. STATE PLAN.
In addition to the requirements described in title I,
a State that desires to receive funds for any fiscal year
under this title shall, as part of the State Workforce De-
velopment and Literacy Plan under title I, submit to the
Secretary of Education information that includes—
(1) a description of the State’s plan to develop
the academic and occupational skills of youth and
provide the attainment of challenging vocational-
technical education standards, including industry-ap-
proved skill standards and workplace competencies;
(2) a description of how the State will improve
comprehensive career guidance and counseling which
may include linkages to career exploration and guid-
ance counseling outside of the school system and
shall describe how the State will effectively dem-
onstrate the system of career preparation for youth,
which includes elements such as professional devel-
opment, and secondary-postsecondary collaborations;
105
(3) a description of the strategy of the State for
integrating academic, vocational, and work-based
learning, including a description of how the State
will promote collaboration between secondary and
postsecondary occupational and academic programs
and institutions and incorporating learning in all as-
pects of the industry; and
(4) a description of how the State will promote
the active involvement of parents and business (in-
cluding small- and medium-sized businesses) in the
planning, development, and implementation of youth
development and career preparation programs au-
thorized under this title.
SEC. 222. STATE PROGRAMS AND STATE ACTIVITIES.
(a) GENERAL AUTHORITY.—From amounts made
available to a State under section 211(c)(2), each State
shall conduct State programs and activities.
(b) USES OF FUNDS.—The programs and activities
described in subsection (a) may include—
(1) an assessment of programs conducted with
assistance under this title, including the development
of—
(A) performance indicators and measures
for such programs; and
106
(B) program improvement and accountabil-
ity with respect to such programs;
(2) the support for tech-prep education;
(3) support for workforce preparation programs
for single parents, displaced homemakers, and single
pregnant women;
(4) support for corrections vocational education;
(5) professional development activities for voca-
tional teachers, academic teachers, school adminis-
trators, counselors, workplace mentors, and local
providers regarding integration of vocational, aca-
demic, and work-based curricula, including—
(A) inservice and preservice training of
teachers and faculty in state-of-the-art pro-
grams and techniques and nontraditional train-
ing and employment; and
(B) support of public teacher-education
programs to ensure vocational teachers stay
current with the needs, expectations, and meth-
ods of industry to meet employer standards;
(6) development, dissemination, and field test-
ing of curricula, especially—
(A) curricula that integrate vocational,
academic, and work-based methodologies;
107
(B) curricula that provide a coherent se-
quence of courses through which academic and
occupational skills may be measured; and
(C) curricula for work-based learning;
(7) leadership and instructional programs in
technology education;
(8) support for cooperative education;
(9) support for family and consumer science
programs;
(10) creative use of technologies, including pro-
fessional development in the use of such technologies
for instructional purposes and to increase coun-
selor’s and youth’s knowledge of, and use of, addi-
tional information resources;
(11) support for vocational student organiza-
tions; and
(12) improving comprehensive career guidance
and counseling.
SEC. 223. INCENTIVE AWARDS.
The State, may, from the amount made available
under section 211(c)(2) for any fiscal year make perform-
ance awards to 1 or more eligible institutions or local pro-
viders that have—
(1) exceeded in the performance goals described
in section 110(f)(3);
108
(2) implemented exemplary youth development
and career preparation programs at the local level in
accordance with the purposes described in section
201; or
(3) provided exemplary education services and
activities for at-risk youth.
Subtitle C—Subgrants for In-
School and At-Risk Youth
SEC. 231. PARTNERSHIP AGREEMENTS.
(a) PARTNERSHIP.—A local workforce development
board and eligible institutions that desire to receive a
subgrant from a State under this subtitle in any fiscal
year shall form a partnership for the purposes of collabo-
rative planning, coordination of in-school and at-risk pro-
grams, and effective public participation.
(b) PLAN.—
(1) IN GENERAL.—The partnership referred to
in subsection (a) shall, in collaboration, develop and
submit for approval to the Governor through the
State collaborative process a comprehensive youth
development and career preparation plan for in-
school and at-risk youth. Such plan shall describe
how the youth development and career preparation
system meets the requirements of sections 241 and
109
245 and shall address comments received through
the collaborative process.
(2) COLLABORATIVE
PROCESS.—The partner-
ship shall assure the involvement of parents, teach-
ers, and the community in the collaborative planning
process which involves design of the indicators,
strategies, articulation, and cooperative agreements,
assessments, and evaluation of program activities.
(3) DISPUTES.—In the event a partnership can-
not come to agreement on the content of local plans,
the Governor, through the collaborative process, is
authorized to develop procedures for the resolution
of issues in dispute.
SEC. 232. DISTRIBUTION OF FUNDS.
(a) IN-SCHOOL PROGRAMS.—Based upon an applica-
tion submitted by the partnership to the Governor through
the State collaborative process, a State shall distribute
funds made available in a fiscal year as provided in section
212(a)(1)(A) to eligible institutions to carry out in-school
youth programs described in section 241.
(b) AT-RISK YOUTH PROGRAMS.—A State shall dis-
tribute funds made available in any fiscal year as provided
in section 212(a)(1)(B) to local workforce development
boards to carry out at-risk youth programs described in
section 245.
110
CHAPTER 1—IN-SCHOOL YOUTH
SEC. 241. USES OF FUNDS FOR IN-SCHOOL YOUTH.
(a) GENERAL AUTHORITY.—Each eligible institution
that receives a subgrant under this chapter shall use funds
provided under such grant to improve youth development
and career preparation programs.
(b) REQUIREMENTS FOR USES OF FUNDS.—Funds
provided by a State pursuant to section 212(a)(1)(A) shall
be used to provide in-school youth development and career
preparation programs that—
(1) are of such size, scope, and quality as to be
effective;
(2) integrate academic, vocational, and work-
based learning, stressing applied and contextual
learning, through a coherent sequence of courses so
that youth achieve both academic and occupational
competencies and have strong experience in, and un-
derstanding of, all aspects of the industry;
(3) involve employers in the design and imple-
mentation of programs;
(4) establish effective linkages with at-risk
youth programs, secondary and postsecondary edu-
cation;
(5) provide work-based learning experiences
with adult mentoring where appropriate; and
111
(6) provide comprehensive career guidance and
counseling, including exploration in the practical
arts or trade.
(c) ADDITIONAL USES OF FUNDS.—In carrying out
the provisions of subsection (b), funds may be used by an
eligible institution for in-school youth activities such as—
(1) purchasing, leasing, or upgrading of equip-
ment, including instructional aids and material;
(2) inservice training of vocational instructors,
academic instructors, employers, and workplace
mentors, to integrate academic and vocational edu-
cation, and provide high-quality school-based and
work-based learning experiences;
(3) tech-prep education programs;
(4) supplementary services designed to meet the
needs of special populations;
(5) adaptation of equipment;
(6) apprenticeship programs;
(7) comprehensive mentoring programs in insti-
tutions of higher education offering comprehensive
programs in teacher preparation which seek to fully
use the skills and work experiences of individuals
currently or formerly employed in business and in-
dustry, who are interested in becoming classroom in-
structors, and to meet the need of vocational edu-
112
cators who wish to upgrade their teaching com-
petencies;
(8) local education and business partnerships
for developing and implementing school-based youth
development and career preparation systems;
(9) support for vocational student organiza-
tions;
(10) establishing effective activities and proce-
dures to enable program participants and their par-
ents to participate directly in decisions that influ-
ence the character of programs, including providing
information and assistance needed for informed and
effective participation; and
(11) support for programs which prepare youth
with skills for personal and family life management,
work, and leadership in the community and the Na-
tion.
CHAPTER 2—AT-RISK YOUTH
SEC. 245. USES OF FUNDS FOR AT-RISK YOUTH.
(a) GENERAL AUTHORITY.—Each local workforce de-
velopment board that receives a subgrant under this chap-
ter shall use funds provided under such grant to improve
youth development and career preparation programs.
(b) REQUIREMENTS FOR USES OF FUNDS.—Funds
provided by a State pursuant to section 212(1)(B) shall
113
be used to provide youth development and career prepara-
tion programs for at-risk youth that—
(1) are of such size, scope, and quality as to be
effective;
(2) integrate academic, vocational, and work-
based learning, stressing applied and contextual
learning, through a coherent sequence of courses so
that in-school and at-risk youth achieve both aca-
demic and occupational competencies;
(3) involve employers in the design and imple-
mentation of programs;
(4) establish effective linkages with in-school
youth programs, and secondary and postsecondary
education;
(5) provide work-based learning experiences, in-
cluding experiences in the practical arts or trade, if
applicable;
(6) provide adult mentoring as a core compo-
nent of the program;
(7) provide an objective assessment of the aca-
demic level, skill level, and service needs of each par-
ticipant; and
(8) provide comprehensive career guidance and
counseling.
114
(c) ADDITIONAL USES OF FUNDS.—In carrying out
the provisions of subsection (b), providers of at-risk youth
programs, as selected by the local workforce development
board, may provide activities such as—
(1) tutoring, study skills training and instruc-
tion leading to completion of high school;
(2) alternative high school services;
(3) training or education that is combined with
community service, and service learning opportuni-
ties;
(4) paid and unpaid work experience, including
limited internships, entry-employment experience
programs, and summer employment opportunities,
that are integrated with year-round, school-based, or
alternative school-based programs;
(5) dropout prevention strategies, strategies to
encourage at-risk youth to reenter high school or al-
ternative high school programs, and programs that
encourage pregnant and parenting youth to stay in
school;
(6) preemployment and work maturity skills
training;
(7) peer-centered activities encouraging respon-
sibility and other positive social behaviors during
non-school hours; and
115
(8) training-related supportive services.
(d) LIMITATIONS ON USE OF FUNDS.—Not more
than 10 percent of the funds provided under this chapter
to a local workforce development board may be used for
administrative purposes.
SEC. 246. AT-RISK YOUTH PROVIDERS.
(a) ROLE OF LOCAL WORKFORCE DEVELOPMENT
BOARD.—A local workforce development board that re-
ceives funds under this chapter shall not operate pro-
grams, but shall contract with eligible providers of dem-
onstrated effectiveness, or with eligible providers utilizing
service methodologies with demonstrated effectiveness in
serving the youth development and career preparation
needs of at-risk youth, for the purpose of providing serv-
ices under this chapter.
(b) ELIGIBLE PROVIDERS.—For purposes of this
chapter, eligible providers may include—
(1) an ‘‘eligible institution’’ as defined under
section 202(7);
(2) a unit of local government;
(3) a private, nonprofit organization (including
community-based organizations);
(4) a private, for profit entity; or
116
(5) other organizations or entities of dem-
onstrated effectiveness and approved by the local
workforce development board.
Subtitle D—National Programs
SEC. 251. RESEARCH ACTIVITIES.
(a) GENERAL AUTHORITY.—
(1) IN GENERAL.—In order to carry out the
purpose of this title, the Secretary may, directly or
through grants, contracts, or cooperative agree-
ments, carry out research, development, dissemina-
tion, replication of model programs, demonstration
programs, evaluation, capacity-building, and tech-
nical assistance activities with regard to the services
and activities carried out under this title.
(2) INFORMATION SYSTEMS.—Activities carried
out under this section may include support for occu-
pational and career information systems.
(b) DISSEMINATION.—The Secretary shall establish
a system for disseminating information resulting from re-
search and development activities carried out under this
title.
117
SEC. 252. ASSESSMENT AND DATA COLLECTION OF YOUTH
DEVELOPMENT AND CAREER PREPARATION
PROGRAMS.
(a) IN GENERAL.—The Secretary, through the Office
of Educational Research and Improvement, shall conduct
a biennial assessment of services and activities assisted
under this title, through studies and analyses conducted
independently through competitive awards.
(b) CONTENTS.—The assessment required under sub-
section (a) shall examine the extent to which services and
activities assisted under this title have achieved their in-
tended purposes and results, including the extent to
which—
(1) State and local services and activities have
developed, implemented, or improved youth develop-
ment and career preparation systems established
under this title;
(2) services and activities assisted under this
title succeed in preparing youth, including youth
who are members of special populations, for post-
secondary education, further learning, or entry into
high-skill, high-wage careers;
(3) youth who participate in services and activi-
ties supported under this title succeed in meeting
challenging State academic and industry-based skill
standards; and
118
(4) the system improvement, participation, local
and State assessment, and accountability provisions
of this title, including the performance goals and in-
dicators established under section 110(f)(3), are ef-
fective.
SEC. 253. NATIONAL CENTER OR CENTERS FOR RESEARCH.
(a) GENERAL AUTHORITY.—
(1) NATIONAL CENTER.—The Secretary may,
through a grant or contract, establish one or more
national centers for conducting applied research, de-
velopment, dissemination, and technical assistance
activities which would focus on improving the devel-
opment and career preparation of youth. The Sec-
retary shall consult with States prior to establishing
one or more such centers.
(2) ELIGIBILITY.—Entities eligible to receive
funds under this section are institutions of higher
education, other public or private nonprofit organi-
zations or agencies, and consortia of such institu-
tions, organizations, or agencies.
(3) PREVIOUS CENTER.—The national center in
existence on the day before the date of the enact-
ment of the this Act shall continue to receive assist-
ance under this section in accordance with the terms
of its current award.
119
(b) ACTIVITIES.—
(1) IN GENERAL.—The applied research, devel-
opment, dissemination, and technical assistance ac-
tivities carried out by the national center or centers
shall include—
(A) activities that assist recipients of funds
under this title to meet the requirements of sec-
tion 110(f)(3);
(B) research and development of activities
that combine academic, vocational-technical
education, and work-based learning;
(C) developing new models for remediation
of basic academic skills which incorporate ap-
propriate instructional methods;
(D) identifying ways to establish effective
linkages among educational and job training ac-
tivities at the State and local levels;
(E) new models for comprehensive career
guidance and counseling;
(F) studies providing longitudinal informa-
tion or formative evaluation on programs fund-
ed under this title, including an analysis of the
effectiveness of youth development and career
preparation programs in serving at-risk youth;
and
120
(G) such other activities as the Secretary
determines to be appropriate to achieve the pur-
poses of this Act.
(2) DUTIES.—The center or centers shall—
(A) provide assistance to States and local
recipients in developing and using systems of
performance measures and indicators for im-
provement of youth development and career
preparation programs and services; and
(B) provide technical assistance and out-
reach.
(3) SUMMARY.—The center or centers conduct-
ing the activities described in paragraph (1) shall
annually prepare a summary of key research find-
ings of such center or centers and shall submit cop-
ies of the summary to the Secretaries of Education
and Labor. The Secretary shall submit that sum-
mary to the Committee on Labor and Human Re-
sources of the Senate, and the Committee on Eco-
nomic and Educational Opportunities of the House
of Representatives.
(c) CLEARINGHOUSE.—The center or centers shall
maintain a clearinghouse that will provide data and infor-
mation to Federal, State, and local organizations and
agencies about the condition of youth development and ca-
121
reer preparation systems and programs funded under this
title.
TITLE III—ADULT EMPLOYMENT
AND TRAINING CONSOLIDA-
TION GRANT
SEC. 301. PURPOSE.
The purpose of this title is to establish an efficient,
high-quality, and equitable system of employment, job
training, and related assistance designed to facilitate the
transition of adults into productive, high skills, private
sector employment.
Subtitle A—Adult Employment and
Training Consolidation Grant
SEC. 311. AUTHORIZATION.
(a) IN GENERAL.—In the case of each State that in
accordance with the requirements of section 102 submits
to the Secretary of Labor (hereinafter in this title referred
to as the ‘‘Secretary’’) a State workforce development and
literacy plan under section 104, the Secretary shall pro-
vide a grant to the State for the purpose of providing em-
ployment, job training, and related assistance for adults
in the State.
(b) AMOUNT.—The grant shall consist of the allot-
ment determined for the State under section 312.
122
SEC. 312. ALLOTMENT AMONG STATES.
(a) IN GENERAL.—Of the amount appropriated pur-
suant to section 4(a)(2) to carry out this title for a fiscal
year, the Secretary shall—
(1) allot 85 percent of such amounts in accord-
ance with subsection (b); and
(2) reserve 15 percent for use under subtitle B.
(b) ALLOTMENT AMONG STATES.—
(1) RESERVATION FOR THE TERRITORIES.—Of
the amount allotted under subsection (a)(1), the
Secretary shall allot not more than one quarter of
one percent among the Commonwealth of the North-
ern Mariana Islands, American Samoa, Guam, and
the Virgin Islands.
(2) STATES.—After determining the amount to
be allotted under paragraph (1), the Secretary shall
allot the remaining amount to the remaining States
so that each State receives an amount that bears the
same proportion to such remaining amount as—
(A) the amount allotted to each such State
from allotments under sections 202 and 302 of
the Job Training Partnership Act (29 U.S.C.
1602 and 1652) (as in effect before the date of
the enactment of this Act) for fiscal year 1995;
bears to
123
(B) the aggregate of the amounts allotted
to all such States from allotments under such
sections for such fiscal year.
(c) MINIMUM ALLOTMENT.—No State shall receive
less than one-quarter of one percent of the amount avail-
able under this title for a fiscal year. Amounts necessary
for increasing such payments to States to comply with the
preceding sentence shall be obtained by ratably reducing
the amounts to be paid to other States.
SEC. 313. ALLOCATION WITHIN STATES.
(a) RESERVATIONS FOR STATE ACTIVITIES.—
(1) IN GENERAL.—The Governor of the State
shall reserve not more than 20 percent of the
amount allotted to the State under section 312(b)
for a fiscal year for statewide activities for employ-
ment, job training, and related assistance for adults.
(2) MANDATORY
ACTIVITIES.—Such activities
shall include—
(A) rapid response activities; and
(B) additional assistance to areas that ex-
perience disasters, mass layoffs or plant clos-
ings, or other events which precipitate substan-
tial increases in the number of unemployed
workers, to be expended in accordance with the
124
local plan of the relevant workforce development
area.
(3) DISCRETIONARY ACTIVITIES.—
(A) IN GENERAL.—Such activities may in-
clude—
(i) subject to subparagraph (B), ad-
ministration by the State of programs
under this subtitle;
(ii) capacity building and technical as-
sistance to local workforce development
areas, integrated career center systems,
and service providers, including the devel-
opment and training of staff and the devel-
opment of exemplary program activities;
(iii) incentives for program coordina-
tion, performance awards, and research
and demonstrations;
(iv) implementation of innovative in-
cumbent worker training programs, which
may include the establishment and imple-
mentation of an employer loan program to
assist in skills upgrading (in accordance
with the requirements of section 324);
(v) 
implementation 
of 
experimen-
tation, model activities, pilot projects, and
125
demonstration projects which further the
goals and purposes of this Act;
(vi) additional assistance for the de-
velopment and implementation of the inte-
grated career center system of the State
established in accordance with title I; and
(vii) support for a common manage-
ment information system as described in
section 109.
(B) LIMITATION.—Not more than 25 per-
cent of the amount reserved by the Governor
under paragraph (1) may be used for adminis-
tration by the State of programs under this
subtitle.
(b) WITHIN STATE ALLOCATION.—
(1) IN GENERAL.—The Governor of the State
shall allocate the remainder of the amount allotted
to the State under section 312(b) to workforce devel-
opment areas designated under title I of this Act, in
accordance with paragraphs (1) and (2) of such sec-
tion, for the purpose of providing employment, job
training, and related services for adults in accord-
ance with section 315.
(2) WITHIN STATE FORMULA.—
126
(A) 
ESTABLISHMENT.—The 
Governor,
through the collaborative process under section
103 of this Act, and after consultation with
local chief elected officials in the local workforce
development area, shall develop a formula for
the allocation of 90 percent of the remainder of
funds described in paragraph (1), to workforce
development areas, taking into account—
(i) poverty rates within each local
workforce development area, as determined
by the State;
(ii) unemployment rates within each
local workforce development area;
(iii) the proportion of the State’s
adult population residing within each local
workforce development area; and
(iv) such other factors as considered
appropriate.
(B) ADDITIONAL FACTORS.—In establish-
ing such formula, the Governor shall ensure
that funds are distributed equitably throughout
the State, and that the factors described in sub-
paragraph (A) do not receive disproportionate
weighting.
127
(3) WITHIN
STATE
DISCRETIONARY
ALLOCA-
TION.—In addition, the Governor is authorized to al-
locate 10 percent of the remainder of funds de-
scribed in paragraph (1) to workforce development
areas designated under title I of this Act. Amounts
may be allocated to such areas as determined by the
Governor.
SEC. 314. ADDITIONAL STATE PLAN REQUIREMENTS.
The State shall, as part of the State workforce devel-
opment and literacy plan under title I of this Act, submit
to the Secretary the following additional information:
(1) A description of how the State will serve the
employment and training needs of dislocated work-
ers, economically disadvantaged individuals, older
workers, individuals with disabilities, displaced
homemakers, veterans, and individuals with multiple
barriers to employment (as determined by the
State), including individuals who are basic skills de-
ficient.
(2) A description of how the State will provide
rapid response assistance to workers experiencing
dislocation as a result of mass layoffs and plant clos-
ings, either through the direct provision of services
or through the transfer of funds to local workforce
development areas for the provision of such services.
128
SEC. 315. USE OF AMOUNTS.
(a) CORE SERVICES.—Amounts allocated under sec-
tion 313(b) shall be used to provide core services to adults
through integrated career center systems in accordance
with title I of this Act.
(b) INTENSIVE SERVICES.—
(1) IN
GENERAL.—Amounts allocated under
section 313(b) shall be used to provide intensive
services to adults—
(A) who are unable to obtain employment
through core services under subsection (a); and
(B) who have been determined to be in
need of more intensive services in order to gain
employment.
(2) DELIVERY
OF
SERVICES.—Such intensive
services shall be provided—
(A) directly through integrated career cen-
ter systems in accordance with title I of this
Act; or
(B) through contracts through such sys-
tems with service providers approved by the
local workforce development board, which may
include private, for-profit providers.
(3) TYPES OF SERVICES.—Such intensive serv-
ices may include the following:
129
(A) Comprehensive and specialized assess-
ments of the skill levels and service needs of
adults, which may include—
(i) diagnostic testing and other assess-
ment tools; and
(ii) in-depth interviewing and evalua-
tion to identify employment barriers and
appropriate employment goals.
(B) Development of an individual employ-
ment plan, to identify the employment goals,
appropriate achievement objectives, and the ap-
propriate combination of services for the adult
to achieve the employment goal.
(C) Group counseling.
(D) Individual counseling and career plan-
ning.
(E) Case management for adults receiving
education and training services under sub-
section (c) or supportive services under sub-
section (d).
(F) Follow-up counseling for adults placed
in training or employment, for up to 1 year.
(c) EDUCATION AND TRAINING SERVICES.—
130
(1) IN
GENERAL.—Amounts allocated under
section 313(b) shall be used to provide education
and training services to adults—
(A) who are unable to obtain employment
through core services under subsection (a);
(B) who are in need of education and
training services in order to gain employment
as a result of determinations made through—
(i) preliminary assessments under sec-
tion 107(f)(1)(B) of this Act; or
(ii) comprehensive and specialized as-
sessments under subsection (b)(3)(A); and
(C) who are unable to obtain other grant
assistance for such services, such as through
Federal Pell Grants established under title IV
of the Higher Education Act of 1965.
(2) DELIVERY OF SERVICES.—Such education
and training services shall be provided through edu-
cation and training providers certified in accordance
with title I of this Act.
(3) TYPES OF SERVICES.—Such education and
training services may include the following:
(A) Basic skills training, including reme-
dial education, literacy training, and English
literacy program instruction.
131
(B) Occupational skills training, including
training for nontraditional employment.
(C) On-the-job training.
(D) Programs that combine workplace
training with related instruction.
(E) Training programs operated by the
private sector.
(F) Skill upgrading and retraining.
(G) Entrepreneurial training.
(H) Employability training to enhance
basic workplace competencies.
(I) Customized training conducted with a
commitment by an employer or group of em-
ployers to employ an individual upon successful
completion of the training.
(4) ADDITIONAL REQUIREMENTS.—
(A) USE OF CAREER GRANTS.—
(i) IN GENERAL.—Except as provided
in clause (ii) and clause (iii), education
and training services under this section
shall be provided through the use of career
grants in accordance with this subsection,
and shall be distributed to eligible individ-
uals through integrated career centers or
affiliated sites as described in section 107,
132
and in accordance with section 108 regard-
ing the identification of eligible education
and training providers.
(ii) 
EXCEPTIONS.—Education 
and
training services authorized under this title
may be provided pursuant to a contract for
services in lieu of a career grant if—
(I) such services are on-the-job
training provided by an employer;
(II) the local workforce develop-
ment board determines there are an
insufficient number of certified pro-
viders of education and training serv-
ices in the workforce development
area to accomplish the purposes of a
career grant system;
(III) the local workforce develop-
ment board determines that the cer-
tified providers of education and
training in the workforce development
area are unable to provide effective
services to special participant popu-
lations; or
(IV) the local workforce develop-
ment board decides to enter into a di-
133
rect training contract with a commu-
nity based organization serving special
participant populations.
(iii) TRANSITION.—States may have
up to three years from the date of enact-
ment of this Act to fully implement the re-
quirements of clause (i), but nothing shall
prohibit states from beginning such imple-
mentation at an earlier date.
(B) LINKAGE
TO
OCCUPATIONS
IN
DE-
MAND.—Education and training services under
this subsection shall be directly linked to occu-
pations for which there is a demand in the local
workforce development area, or in another area
to which an adult receiving such services is will-
ing to relocate.
(d) ADDITIONAL SERVICES.—
(1) SUPPORTIVE
SERVICES.—Supportive serv-
ices may be provided for individuals—
(A) who are receiving assistance under any
of subsections (a) through (c); and
(B) who are unable to receive such services
through other programs providing such services.
(2) NEEDS-RELATED PAYMENTS.—
134
(A) 
IN
GENERAL.—Amounts 
allocated
under section 313(b) may be used to provide
needs-related payments to adults who are un-
employed and do not qualify for (or have ceased
to qualify for) unemployment compensation for
the purpose of enabling such adults to partici-
pate in education and training programs under
subsection (c).
(B) ADDITIONAL
ELIGIBILITY
REQUIRE-
MENTS.—In addition to the requirements con-
tained in subparagraph (A), a dislocated worker
who has exhausted unemployment insurance
benefits may be eligible to receive needs-related
payments under this paragraph only if such
worker was enrolled in education or training by
the end of the 8th week of the worker’s initial
unemployment compensation benefit period, or,
if later, by the end of the 8th week after the
worker is informed that a short-term layoff will
in fact exceed 6 months.
(e) PRIORITY.—Local workforce development boards
shall establish a process through which priority is given
to dislocated workers and economically disadvantaged in-
dividuals, for receipt of services provided under sub-
135
sections (b) and (c), in the event that funds are limited
within the workforce development area.
(f) PROHIBITION ON PRIVATE RIGHT OF ACTION.—
Nothing in this section may be construed to establish a
right for a participant to bring an action to obtain services
under a program established under this section.
(g) LIMITATIONS ON USE OF FUNDS.—Not more
than 10 percent of the funds provided under this title to
a local workforce development board may be used for ad-
ministrative purposes.
Subtitle B—Federal Programs
SEC. 321. NATIONAL DISCRETIONARY GRANTS.
(a) GRANTS FOR DISLOCATED WORKERS.—
(1) IN
GENERAL.—From amounts reserved
under section 312(a)(2) for any fiscal year, the Sec-
retary is authorized to award national discretionary
grants to address major economic dislocations that
result from plant closures, base closures, or mass
layoffs.
(2) APPLICATION.—To receive a grant under
this section, an eligible entity shall submit an appli-
cation to the Secretary at such time, in such man-
ner, and accompanied by such information as the
Secretary determines is appropriate.
136
(3) ELIGIBLE
ENTITIES.—Grants under this
section may be awarded to—
(A) the State;
(B) a local workforce development board
administering assistance under this Act;
(C) employers and employer associations;
(D) worker-management transition assist-
ance committees and other employer-employee
entities;
(E) representatives of employees;
(F) community development corporations
and community-based organizations; and
(G) industry consortia.
(b) INCENTIVE GRANTS.—From amounts reserved
under section 312(a)(2) for any fiscal year, the Secretary
may provide awards to States—
(1) to assist in the implementation of exemplary
statewide workforce development system designs;
and
(2) for the achievement of exceptional perform-
ance in the statewide workforce development system.
SEC. 322. DISASTER RELIEF EMPLOYMENT ASSISTANCE.
(a) IN GENERAL.—From amounts reserved under
section 312(a)(2) for any fiscal year, the Secretary may
provide assistance to the Governor of any State within
137
which is located an area that has suffered an emergency
or a major disaster as defined in paragraphs (1) and (2),
respectively, of section 102 of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (referred to
in this section as the ‘‘disaster area’’).
(b) USE OF FUNDS.—
(1) 
PROJECTS
RESTRICTED
TO
DISASTER
AREAS.—Funds made available under this section—
(A) shall be used exclusively to provide em-
ployment on projects to provide food, clothing,
shelter, and other humanitarian assistance for
disaster victims and on projects regarding dem-
olition, cleanup, repair, renovation, and recon-
struction of damaged and destroyed structures,
facilities, and lands located within the disaster
area; and
(B) may be expended through public and
private agencies and organizations engaged in
such projects.
(2) ELIGIBILITY REQUIREMENTS.—An individ-
ual shall be eligible to be offered disaster employ-
ment under this section if such individual is a dis-
located worker or is temporarily or permanently laid
off as a consequence of the disaster.
138
(3) LIMITATIONS
ON
DISASTER
RELIEF
EM-
PLOYMENT.—No individual shall be employed under
this part for more than 6 months for work related
to recovery from a single natural disaster.
SEC. 323. RESEARCH, DEMONSTRATION, EVALUATION, AND
CAPACITY BUILDING.
(a) IN GENERAL.—From amounts reserved under
section 312(a)(2) for any fiscal year, the Secretary is au-
thorized to establish and carry out research, demonstra-
tion, and capacity building activities in accordance with
this section.
(b) ACTIVITIES.—The Secretary is authorized to
carry out the following activities under this section:
(1) RESEARCH.—The Secretary is authorized to
conduct continuing research, which may include
studies and other methods and techniques, that will
aid in the solution of the employment and training
problems of the United States. Such studies may in-
clude the extent to which individuals who participate
in programs established under this title achieve self-
sufficiency as a result of such participation, includ-
ing the identification by State and locality, to the ex-
tent practicable, of indicators measuring such self-
sufficiency.
139
(2) DEMONSTRATIONS.—The Secretary is au-
thorized to conduct pilot and demonstration projects
for the purpose of developing and improving meth-
ods and techniques for addressing employment and
training needs which may include—
(A) projects conducted jointly with the De-
partment of Defense to develop training pro-
grams utilizing computer-based and other inno-
vative learning technologies. The Secretary may
award grants and enter into contracts with ap-
propriate entities to carry out such projects;
and
(B) Projects which promote the use of dis-
tance learning, enabling students to take
courses through the use of technology such as
videos teleconferencing, computers, and the
internet.
(3) EVALUATION.—
(A) ACTIVITIES.—
(i) JOB
TRAINING
ACTIVITIES.—The
Secretary shall provide for the continuing
evaluation of activities conducted under
this Act, including the use of controlled ex-
periments using experimental and control
groups chosen by scientific random assign-
140
ment, and at a minimum, determine
whether job training and job placement
programs effectively raise the hourly wage
rates of individuals receiving training
through such programs.
(ii) OTHER
PROGRAMS.—The Sec-
retary may conduct evaluations of other
federally funded employment-related activi-
ties 
including 
programs 
administered
under—
(I) the Wagner-Peyser Act (29
U.S.C. 49 et seq.);
(II) the National Apprenticeship
Act (29 U.S.C. 50 et seq.);
(III) the Older Americans Act of
1965 (42 U.S.C. 3001 et seq.); and
(IV) the Federal unemployment
insurance program under titles III,
IX, and XII of the Social Security Act
(42 U.S.C. 501 et seq., 1101 et seq.,
and 1321 et seq.).
(B) EFFECTIVENESS.—The Secretary shall
evaluate the effectiveness of programs author-
ized under this Act with respect to—
(i) the statutory goals;
141
(ii) the performance standards estab-
lished by the Secretary; and
(iii) the extent to which such pro-
grams enhance the employment and earn-
ings of participants, reduce income support
costs, 
improve 
the 
employment 
com-
petencies of participants in comparison to
comparable persons who did not partici-
pate in such programs, and to the extent
feasible, increase the level of total employ-
ment over the level that would have existed
in the absence of such programs.
(4) NATIONAL
PARTNERSHIP
AND
SPECIAL
TRAINING.—The Secretary may award special grants
to eligible entities to carry out activities that are
most appropriately administered at the national
level. Such activities may include—
(A) partnerships with national organiza-
tions with special expertise in developing, orga-
nizing, and administering employment and
training services at the national, State, and
local levels, such as industry and labor associa-
tions, public interests groups, community-based
organizations representative of groups that en-
142
counter special difficulties in the labor market,
in education and training; and
(B) activities that—
(i) address industry-wide skill short-
ages;
(ii) meet training needs that are best
addressed on a multistate basis;
(iii) further the goals of increasing the
competitiveness of the United States labor
force;
(iv) require technical expertise avail-
able at the national level to serve the needs
of particular client groups that encounter
significant barriers to employment and who
the Secretary determines require special
assistance; and
(v) promote and experiment with
model activities, pilot projects, and dem-
onstration projects which further the goals
and purposes of this Act.
(5) CAPACITY BUILDING AND TECHNICAL AS-
SISTANCE.—
(A) IN
GENERAL.—The Secretary shall
provide, through grants, contracts, or other ar-
rangements, staff training and technical assist-
143
ance to States, local workforce development
boards, career centers, communities, business
and labor organizations, service providers, in-
dustry consortia, and other entities, to enhance
their capacity to develop and deliver effective
employment and training services.
(B) ACTIVITIES.—The staff training and
technical assistance authorized under subpara-
graph (A) may include—
(i) development of management infor-
mation systems;
(ii) development and maintenance of a
national capacity building, information and
dissemination network; and
(iii) grants for the replication of suc-
cessful employment and training models
and activities.
SEC. 324. WORKFORCE SKILLS AND DEVELOPMENT LOANS.
(a) AUTHORIZATION.—
(1) IN
GENERAL.—From amounts reserved
under section 312(a)(2) for any fiscal year, the Sec-
retary of Labor may use a portion of such amounts
to provide grants to States to provide loans to eligi-
ble entities described in paragraph (2) to assist such
entities in providing skills upgrading.
144
(2) ELIGIBLE ENTITIES.—An eligible entity de-
scribed in this paragraph is—
(A) an employer;
(B) a representative of employees;
(C) a business association;
(D) a trade organization; or
(E) a consortium consisting of—
(i) more than 1 of the entities de-
scribed in subparagraphs (A) through (D);
or
(ii) an institution of higher education
(as such term is defined in section 481 of
the Higher Education Act of 1965 (20
U.S.C. 1088) which continues to meet the
eligibility and certification requirements
under section 498 of such Act) and 1 or
more of the entities described in subpara-
graphs (A) through (D).
(b) APPLICATION.—The Secretary may provide a
grant to a State under subsection (a) only if such State
submits to the Secretary an application which contains
such information as the Secretary may reasonably require.
(c) USE OF AMOUNTS.—A State shall use amounts
received from a grant under subsection (a) to establish
a loan guarantee program to assist eligible entities de-
145
scribed in paragraph (2) of such subsection to provide
skills upgrading. In carrying out such program, the State
shall meet the following requirements:
(1) ESTABLISHMENT OF RESERVE FUND FOR
LOAN GUARANTEES.—The State shall establish a re-
serve fund from amounts received from such grant
for the purpose of making commitments to guaran-
tee the payment of principal and interest on loans
made by financial institutions to such eligible enti-
ties to provide skills upgrading.
(2) CRITERIA
FOR
LOAN
GUARANTEES.—The
State, in conjunction with appropriate financial in-
stitutions, shall establish and publish criteria for
providing loan guarantees to eligible entities under
the program, including criteria that provides for the
following:
(A) A loan guarantee may be issued under
the program only if, at the time such guarantee
is issued the eligible entity agrees to pay as an
insurance premium an amount equal to 1 per-
cent of the principal received by such entity
under the loan to the State’s reserve fund.
(B)(i) Subject to clause (ii), the eligible en-
tity will use amounts received from the loan to
146
provide skills upgrading for mid- and lower-level
employees, which may include—
(I) training in total quality manage-
ment, statistical process control, produc-
tion techniques, office automation, mate-
rials resource planning; and
(II) training to improve basic skills,
including reading, writing, and arithmetic.
(ii) In providing such skills upgrading, the
eligible entity shall give priority to employees
who—
(I) directly produce or deliver goods
or services; or
(II) are in danger of being terminated
or laid off as a result of modernization in
the workplace, corporate downsizing, for-
eign or domestic competition, or Federal
policies adversely affecting 1 or more in-
dustries.
(C) Amounts from a loan shall not be used
to pay the wages or other benefits of any em-
ployee receiving assistance under the program.
(3) PAYMENT BY STATE TO FINANCIAL INSTI-
TUTIONS IN CASES OF DEFAULT.—
147
(A) IN GENERAL.—In accordance with cri-
teria developed by the Secretary, the State shall
make payments from the State’s reserve fund to
financial institutions that have provided loans
to eligible entities that have defaulted on such
loans for the purpose of reimbursing such insti-
tutions for the amount of principal and interest
remaining unpaid to the institutions by reason
of such default.
(B) NO FULL FAITH AND CREDIT OF THE
UNITED STATES.—Loans provided by financial
institutions to eligible entities under loan guar-
antee programs under this section shall not be
obligations of, or guaranteed in any respect by,
the United States.
(4) INTEREST
FROM
AMOUNTS
IN
RESERVE
FUND.—Any interest earned from amounts in the
State’s reserve fund shall be credited to such fund.
(d) FEDERAL AND STATE SHARE.—
(1) FEDERAL
SHARE.—The Federal share
under this section may not exceed 50 percent of the
total cost of the program established under sub-
section (c) for any fiscal year.
148
(2) STATE SHARE.—The State share shall be
provided from non-Federal sources and may be in
cash or in-kind, fairly evaluated.
SEC. 325. EMPLOYMENT, TRAINING, AND EDUCATION AS-
SISTANCE FOR NATIVE AMERICANS.
(a) AUTHORIZATION.—From amounts reserved under
section 4(a)(2) for any fiscal year, there shall be reserved
one quarter of one percent, or $85,000,000, whichever is
less, to provide grants to, or enter into contracts or coop-
erative agreements with, Indian tribes and tribal organiza-
tions, tribally-controlled colleges, tribally-controlled post-
secondary vocational institutions, Indian-controlled orga-
nizations serving off-reservation areas, Alaska Native vil-
lage and regional entities serving areas as described in the
Alaska Native Claims Settlement Act and Hawaiian Na-
tive-controlled organizations to provide employment, train-
ing, vocational rehabilitation, library services, and edu-
cation assistance for Native Americans.
(b) TRANSFER
OF AUTHORITY
FOR VOCATIONAL
EDUCATION ACTIVITIES.—In carrying out subsection (a),
the Secretary of Labor may enter into an agreement with
the Secretary of Education to carry out any portion of
assistance under such subsection devoted to vocational
educational activities, including support for the United
149
Tribes Technical College and Crownpoint Institute of
Technology.
(c) CONSOLIDATION OF FUNDS.—Entities receiving
assistance under subsection (a) may consolidate such as-
sistance with assistance received from related programs in
accordance with the provisions of the Indian Employment,
Training and Related Services Demonstration Act (Public
Law 102–477).
(d) REGULATIONS.—The Secretary shall consult with
Indian, Alaska Native and Hawaiian Native groups in es-
tablishing regulations to carry out this section, including
performance standards for entities receiving assistance
under subsection (a), taking into account the economic cir-
cumstances of such groups.
SEC. 326. EMPLOYMENT, TRAINING, AND EDUCATION AS-
SISTANCE FOR MIGRANT AND SEASONAL
FARMWORKERS.
(a) AUTHORIZATION.—
(1) IN
GENERAL.—From amounts reserved
under section 4(a)(2) for any fiscal year, there shall
be reserved one quarter of one percent, or
$85,000,000, whichever is less, to provide grants to,
or enter into contracts or cooperative agreements
with, entities described in paragraph (2) to provide
150
employment, training, and education assistance for
migrant and seasonal farmworkers.
(2) ENTITIES DESCRIBED.—An entity described
in this paragraph is an entity the Secretary deter-
mines to have the capacity to administer effectively
a diversified workforce development program for mi-
grant and seasonal farmworkers.
(b) USE OF AMOUNTS.—An entity shall use amounts
received under subsection (a) to provide employment,
training, educational development, high school equiva-
lency, postsecondary education assistance, vocational reha-
bilitation, literacy, English as a second language, work-
based education and development, worker safety training,
employability enhancements, emergency or other disaster
relief, housing, technical assistance, outreach, intake, as-
sessment, follow-up, stipend support, supportive services,
other needs-based assistance, self-employment and related
business enterprise development education, and the man-
agement of a database on participating migrant and sea-
sonal farmworkers.
(c) REGULATIONS.—The Secretary shall consult with
seasonal and migrant farmworker groups in establishing
regulations to carry out this section, including perform-
ance standards for entities receiving assistance under sub-
151
section (a)(2), taking into account the economic cir-
cumstances of such groups.
TITLE 
IV—ADULT 
EDUCATION
AND FAMILY LITERACY CON-
SOLIDATION GRANT AND LI-
BRARY SERVICES AND TECH-
NOLOGY 
CONSOLIDATION
GRANT
SEC. 401. FINDINGS.
The Congress finds as follows:
(1) According to the 1990 census, 21 percent of
our Nation’s adults (more than 38 million persons)
lack a high school credential or are limited English
proficient.
(2) The National Adult Literacy Survey, con-
ducted under the Adult Education Act, found that
20 percent of all adults in the United States, or
about 40 million people, have minimal levels of lit-
eracy skills and that the lack of such skills is related
to unemployment, low wages, and fewer weeks
worked.
(3) The success of State efforts to reform and
improve public education are dependent on the abil-
ity of the United States to break intergenerational
cycles of illiteracy and inadequate education by en-
152
suring that parents possess a strong educational
foundation and, as the first and most continuous
teachers of their children, model for, and instill in,
their children a commitment to family literacy and
life-long learning.
(4) Generations of immigrants have contributed
to our communities and our economy, but for them
to continue to do so given recent technologies and
the competitive global economy, they must master
English as rapidly as possible.
(5) Studies have found that incarcerated adults
are twice as likely as nonincarcerated adults to lack
a good education and that such lack is a significant
statistical indicator of recidivism.
(6) Certain short-term and long-term goals of
the Nation may not be met unless the United States
improves its current system of adult education and
life-long learning through Federal leadership.
SEC. 402. DEFINITIONS.
As used in this title:
(1) CORRECTIONAL EDUCATION AGENCY.—The
term ‘‘correctional education agency’’ means an en-
tity that provides programs for criminal offenders in
corrections institutions and for other institutional-
ized individuals which include academic programs
153
for basic education, special education, bilingual or
English language instruction, vocational training, li-
brary development, corrections education programs,
guidance and counseling, and other supportive serv-
ices for criminal offenders which may emphasize co-
ordination of educational services with educational
institutions, community-based organizations of de-
monstrative effectiveness, and the private sector, de-
signed to provide education and training.
(2) 
EDUCATIONALLY
DISADVANTAGED
ADULT.—The term ‘‘educationally disadvantaged
adult’’ means an adult who—
(A) demonstrates basic skills equivalent to
or below that of students at the fifth grade
level; or
(B) has been placed in the lowest or begin-
ning level of an adult education program when
that program does not use grade level equiva-
lencies as a measure of students’ basic skills.
(3) FAMILY
LITERACY
SERVICES.—The term
‘‘family literacy services’’ means services that are of
sufficient intensity in terms of hours, and of suffi-
cient duration, to make sustainable changes in a
family and that integrate all of the following activi-
ties:
154
(A) Interactive literacy activities between
parents and their children.
(B) Training for parents on how to be
their children’s primary teacher and full part-
ners in the education of their children.
(C) Parent literacy training.
(D) An age-appropriate education program
for children.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Education.
Subtitle A—Adult Education and
Family Literacy Consolidation
Grant
SEC. 411. PURPOSES.
The purposes of this subtitle are to assist States to
provide—
(1) to adults, the basic educational skills nec-
essary for employment and self-sufficiency;
(2) to adults who are parents, the educational
skills necessary to be full partners in the educational
development of their children;
(3) to adults, the basic English language skills
necessary to participate in the civic, social, and eco-
nomic life of the United States; and
155
(4) to adults, the opportunity to attain a high
school degree or its equivalent in order to permit
them to pursue further education and training or
improve their family and work situations.
CHAPTER 1—FUNDING
SEC. 421. RESERVATIONS FROM AMOUNTS APPROPRIATED.
(a) NATIONAL INSTITUTE FOR LITERACY.—For any
fiscal year, the Secretary shall reserve $4,500,000 of the
amount appropriated under section 4(a)(3) to carry out
the activities of the National Institute for Literacy de-
scribed in section 441.
(b) NATIONAL LEADERSHIP ACTIVITIES.—For any
fiscal year, the Secretary shall reserve $4,500,000 of the
amount appropriated under section 4(a)(3) to establish
and carry out the program of national leadership and eval-
uation activities described in section 442.
SEC. 422. ALLOTMENT.
(a) INITIAL ALLOTMENT.—From the sums available
for the purpose of making grants under chapter 2 for any
fiscal year, the Secretary shall allot—
(1) $100,000 each to Guam, American Samoa,
the Commonwealth of the Northern Mariana Is-
lands, and the Virgin Islands; and
(2) $250,000 to each of the other States.
(b) ADDITIONAL ALLOTMENT.—
156
(1) IN GENERAL.—From the remainder of the
sums described in subsection (a) after the applica-
tion of the subsection, the Secretary shall allot to
each State an amount which bears the same ratio to
such remainder as the number of qualifying adults
in the State bears to the number of such adults in
all States.
(2) QUALIFYING ADULT.—For purposes of this
subsection, the term ‘‘qualifying adult’’ means an
adult who—
(A) is at least 16 years of age, but less
than 61 years of age;
(B) is beyond the age of compulsory school
attendance under State law;
(C) does not have a certificate of gradua-
tion from a school providing secondary edu-
cation (or its equivalent); and
(D) is not currently enrolled in elementary
or secondary school.
CHAPTER 2—GRANTS TO STATES
SEC. 431. REQUIREMENT TO MAKE GRANTS.
For fiscal year 1997 and subsequent fiscal years, the
Secretary shall make a grant to a State in an amount
equal to the initial and additional allotments of the State
for the year if the State—
157
(1) has satisfied the requirements of title I and
section 433(a)(1);
(2) agrees not to expend the grant for any pur-
pose other than in accordance with section 432;
(3) agrees to satisfy the grant requirements in
section 433(a)(2) and 433(b); and
(4) agrees not to expend the grant for the pur-
pose of supporting or providing programs, services,
or activities for individuals who are not adults, ex-
cept if such programs, services, or activities are re-
lated to family literacy services.
SEC. 432. USES OF FUNDS.
(a) STATE USES OF FUNDS.—
(1) 
GRANTS
TO
SERVE
TARGET
POPU-
LATIONS.—
(A) IN GENERAL.—Of the funds paid to a
State under this title for fiscal year 1998 and
subsequent fiscal years, 3 percent shall be dis-
tributed as performance grants made by the
State on a competitive basis, and consistent
with subsection (b) and section 433(b)(2), to
local service providers that have provided, dur-
ing the immediately preceding fiscal year, adult
education or family literacy services to the tar-
get populations described in subparagraph (C).
158
(B) LOCAL
SERVICE
PROVIDERS.—The
local service providers referred to in subpara-
graph (A) may include the following:
(i) Local educational agencies.
(ii) Correctional educational agencies.
(iii) Community-based organizations.
(iv) Public or private nonprofit agen-
cies.
(v) Institutions of higher education.
(vi) Libraries.
(vii) Other institutions that the State
determines to have the ability to provide
literacy services to adults and families.
(C) TARGET
POPULATIONS.—The target
populations referred to in subparagraph (A) are
the following:
(i) Adults with more than one barrier
to self-sufficiency, such as being unem-
ployed or an educationally disadvantaged
adult.
(ii) Families on public assistance (as
determined by the State).
(iii) Parents who are educationally
disadvantaged adults and who have a child
who is less than 8 years of age.
159
(iv) Adults who are individuals with
disabilities or who have similar special
needs.
(2) GRANTS TO LOCAL SERVICE PROVIDERS.—
Of the funds paid to a State under this subtitle for
any fiscal year that remain after the application of
paragraph (1), at least 85 percent shall be distrib-
uted as grants made by the State on a competitive
basis, and consistent with subsection (b) and section
433(b)(2), to local service providers to establish,
conduct, or expand programs, services, or activities
to achieve a purpose of this subtitle. Such local serv-
ice providers may include the local service providers
described in paragraph (1)(B).
(3) OTHER STATE ACTIVITIES.—A State may
use not more than 12 percent of the funds paid to
the State under this subtitle for any fiscal year that
remain after the application of paragraph (1) for
one or more of the following purposes:
(A) The establishment or operation of pro-
fessional development programs to improve the
quality of instruction provided in local adult
education and literacy programs, including in-
struction provided by volunteers.
160
(B) The provision of technical assistance
to local service providers.
(C) The provision of technology assistance
to local service providers to enable them to im-
prove the quality of their programs, services,
and activities that achieve a purpose of this
subtitle, including—
(i) providing hardware and software;
(ii) paying for service connection fees
associated with gaining access to comput-
erized databases; and
(iii) upgrading the technological capa-
bilities of local service providers to improve
the quality of their services and to assist
them in providing services on a flexible
schedule that meets the needs of diverse
populations.
(D) The support of State or regional net-
works of literacy resource centers that—
(i) enhance the coordination of lit-
eracy services across public and private
programs and State agencies;
(ii) enhance the capacity of the State
and local service providers to provide lit-
eracy services through the diffusion and
161
adoption of state-of-the-art teaching meth-
ods and technologies;
(iii) provide linkages between the Na-
tional Institute for Literacy established
under section 441 and local service provid-
ers for the sharing of literacy information,
research, and resources;
(iv) encourage government and indus-
try partnerships; and
(v) provide training and technical as-
sistance to literacy instructors in reading
instruction, the use of state-of-the-art
methodologies, instructional materials, and
technologies, and professional development.
(E) Monitoring and evaluating the quality
of, and the improvement in, services and activi-
ties conducted with Federal financial assistance
under this subtitle, including carrying out sec-
tion 433(a)(2).
(F) The support of a common management
information system as described in section 109.
(G) Carrying out other activities of state-
wide significance that promote the purposes of
this Act.
162
(4) ADMINISTRATIVE EXPENSES.—For any fis-
cal year, a State may use not more than 3 percent
of the funds paid to the State under this subtitle
that remain after the application of paragraph (1) or
$50,000, whichever is greater, for—
(A) planning, administration, and inter-
agency coordination associated with a grant
under this subtitle; and
(B) support for integrated career center
systems described in section 107.
(b) LOCAL USES OF FUNDS.—A State shall require
that a local service provider that receives a grant from
the State under paragraph (1) or (2) of subsection (a)
use the grant to establish or operate one or more programs
that provide instruction or services within one or more of
the following categories:
(1) Adult basic education that is designed for
an adult who—
(A) has minimal competence in reading,
writing, or computation;
(B) is not sufficiently competent in read-
ing, writing, or computation to meet the re-
quirements of adult life in the United States; or
(C) is not sufficiently competent in speak-
ing, reading, or writing the English language to
163
obtain employment commensurate with the
adult’s intellectual abilities.
(2) Adult secondary education that is designed
for an adult who is literate and can function in ev-
eryday life, but who—
(A) has not acquired basic educational
skills, including reading, writing, and computa-
tion; or
(B) does not have a certificate of gradua-
tion from a school providing education to stu-
dents in grade 12, or its equivalent.
(3) English literacy instruction that is designed
for an adult—
(A) who—
(i) has limited ability in speaking,
reading, writing, or understanding the
English language and whose native lan-
guage is a language other than English; or
(ii) lives in a family or community en-
vironment where a language other than
English is the dominant language; and
(B) who, by reason of a condition de-
scribed in subparagraph (A), has sufficient dif-
ficulty reading, writing, or understanding the
English language that the adult is unable—
164
(i) to learn successfully in a classroom
where the language of instruction is Eng-
lish; or
(ii) to participate fully in the society
of the United States.
(4) Family literacy services.
(c) AUTHORIZATION TO RECEIVE PAYMENTS FROM
OTHER PROGRAMS.—A local service provider that receives
a grant from a State under paragraph (1) or (2) of sub-
section (a), and that provides adult education and literacy
services to an adult who was referred to the provider by
a program supported under title II or III, may receive pay-
ment for the services from the program, either in the form
of a career grant or by some other means.
SEC. 433. ADDITIONAL GRANT REQUIREMENTS.
(a) GOALS, PROGRESS INDICATORS, PERFORMANCE
MEASURES.—
(1) PLANNING REQUIREMENTS.—A State that
desires to receive a grant under this subtitle shall
accomplish the following:
(A) Establish, through the collaborative
process described in section 103, measurable
goals for improving literacy levels, retention in
literacy programs, and long-term learning gains
of individuals in the State.
165
(B) Based on such goals and the perform-
ance measures described in section 110(f), es-
tablish, through such collaborative process,
progress indicators to be used to evaluate the
performance of local service providers receiving
a grant under paragraph (1) or (2) of section
432(a).
(C) Describe such goals and progress indi-
cators in the State workforce development and
literacy plan submitted to the Secretary under
section 104.
(2) 
IMPLEMENTATION
REQUIREMENTS.—A
State that receives a grant under this subtitle shall
accomplish the following:
(A) With respect to each local service pro-
vider receiving a grant under paragraph (1) or
(2) of section 432(a), based on the goals and
progress indicators established under paragraph
(1), measure the performance measures de-
scribed in section 110(f) and use the data pro-
duced by such measurement to improve the
quality of services provided to program partici-
pants or service recipients.
(B) Beginning on the date that is 2 years
after the first date that a local service provider
166
receives a grant under paragraph (1) or (2) of
section 432(a), annually assess the degree to
which the provider is meeting or exceeding the
progress indicators applicable to the provider.
(C) Annually report to the Secretary on
the performance measures described in section
434 for each category described in such section.
(b) OTHER REQUIREMENTS.—A State that receives
a grant under this subtitle shall ensure the following:
(1) 
EXPENDITURES
OF
NON-FEDERAL
FUNDS.—For any fiscal year for which a grant is
made to the State under this subtitle, the State shall
expend, on programs and activities relating to adult
education and family literacy services, an amount,
derived from sources other than the Federal Govern-
ment, equal to 25 percent of the State’s initial and
additional allotments for the year.
(2) PRIORITY
FOR
PLANNING
WITH
BOARDS
AND SYSTEMS.—In awarding grants to local service
providers under paragraph (1) or (2) of section
432(a), the State shall give priority to providers that
demonstrate joint planning with local workforce de-
velopment boards and integrated career center sys-
tems.
167
(3) EQUITABLE
ACCESS.—Local educational
agencies, public or private nonprofit agencies, com-
munity-based organizations, correctional education
agencies, institutions of higher education, libraries,
and institutions which serve educationally disadvan-
taged adults shall be provided direct and equitable
access to Federal funds provided under this subtitle
in accordance with this subtitle.
(4) PAYMENTS BY LOCAL WORKFORCE DEVEL-
OPMENT BOARDS TO LOCAL SERVICE PROVIDERS.—
A local service provider that receives a grant from
a State under paragraph (1) or (2) of section 432(a)
may negotiate with a local workforce development
board with respect to receipt of payments for adult
education and literacy services provided by the pro-
vider to adults referred to the provider by a program
supported under title II or III.
CHAPTER 3—NATIONAL PROGRAMS
SEC. 441. NATIONAL INSTITUTE FOR LITERACY.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There shall be established a
National Institute for Literacy (in this section re-
ferred to as the ‘‘Institute’’). The Institute shall be
administered under the terms of an interagency
agreement entered into by the Secretary of Edu-
168
cation with the Secretary of Labor and the Secretary
of Health and Human Services (in this section re-
ferred to as the ‘‘Interagency Group’’). The Sec-
retary may include in the Institute any research and
development center, institute, or clearinghouse estab-
lished within the Department of Education whose
purpose is determined by the Secretary to be related
to the purpose of the Institute.
(2) BOARD
RECOMMENDATIONS.—The Inter-
agency Group shall consider the recommendations of
the National Institute for Literacy Advisory Board
(in this section referred to as the ‘‘Board’’) estab-
lished under subsection (d) in planning the goals of
the Institute and in the implementation of any pro-
grams to achieve such goals.
(3) DAILY OPERATIONS.—The daily operations
of the Institute shall be carried out by the Director
of the Institute appointed under subsection (g).
(b) DUTIES.—
(1) IN GENERAL.—The Institute shall—
(A) provide national leadership for the im-
provement and expansion of the system for de-
livery of literacy services;
(B) coordinate the delivery of such serv-
ices;
169
(C) support the creation of new methods of
offering improved services;
(D) serve as a national resource for adult
education and family literacy services by provid-
ing to the public the best and most current in-
formation available on the subjects; and
(E) assist States in developing levels of
performance.
(2) AUTHORIZED
ACTIVITIES.—In order to
carry out the duties described in paragraph (1), the
Institute may—
(A) establish a national electronic database
of information that includes—
(i) information on—
(I) effective practices in the pro-
vision of literacy and basic skills in-
struction;
(II) public and private literacy
and basic skills programs and Fed-
eral, State, and local policies affecting
the provision of literacy services at the
national, State, and local levels; and
(III) technical assistance, meet-
ings, conferences, and other opportu-
170
nities that lead to the improvement of
literacy and basic skills services; and
(ii) a communication network for lit-
eracy programs, providers, and students;
(B) coordinate support for the provision of
literacy and basic skills services across Federal
agencies and at the State and local level;
(C) coordinate the support of research and
development on literacy and basic skills in fami-
lies and adults across Federal agencies and
carry out basic and applied research and devel-
opment on topics that are not being inves-
tigated by other organizations or agencies;
(D) collect and disseminate information on
methods of advancing literacy that show prom-
ise of success; and
(E) assist in the development of policy
with respect to literacy and basic skills.
(3) GRANTS, CONTRACTS, AND AGREEMENTS.—
The Institute may enter into contracts or coopera-
tive agreements with, or make grants to, individuals,
public or private institutions, agencies, organiza-
tions, or consortia of such institutions, agencies, or
organizations to carry out the activities of the Insti-
tute. Such grants, contracts, or agreements shall be
171
subject to the laws and regulations that generally
apply to grants, contracts, or agreements entered
into by Federal agencies.
(c) LITERACY LEADERSHIP.—
(1) FELLOWSHIPS.—The Institute, in consulta-
tion with the Board, may award fellowships, with
such stipends and allowances as the Director consid-
ers necessary, to outstanding individuals pursuing
careers in adult education or literacy in the areas of
instruction, management, research, or innovation.
(2) 
USE
OF
FELLOWSHIPS.—Fellowships
awarded under this subsection shall be used, under
the auspices of the Institute, to engage in research,
education, training, technical assistance, or other ac-
tivities to advance the field of adult education or lit-
eracy, including the training of volunteer literacy
providers at the national, State, or local level.
(3) INTERNS
AND
VOLUNTEERS.—The Insti-
tute, in consultation with the Board, may award
paid and unpaid internships to individuals seeking to
assist the Institute in carrying out its mission. Not-
withstanding section 1342 of title 31, United States
Code, the Institute may accept and use voluntary
and uncompensated services as the Institute deter-
mines necessary.
172
(d) NATIONAL INSTITUTE FOR LITERACY ADVISORY
BOARD.—
(1) ESTABLISHMENT.—
(A) IN GENERAL.—There shall be a Na-
tional Institute for Literacy Advisory Board.
The Board shall consist of 10 individuals ap-
pointed by the President with the advice and
consent of the Senate from individuals who—
(i) are not otherwise officers or em-
ployees of the Federal Government; and
(ii) are representative of entities or
groups described in subparagraph (B).
(B) ENTITIES OR GROUPS DESCRIBED.—
The entities or groups referred to in subpara-
graph (A) are—
(i) literacy organizations and provid-
ers of literacy services, including—
(I) nonprofit providers of literacy
services;
(II) providers of programs and
services involving English language in-
struction; and
(III) providers of services receiv-
ing assistance under this subtitle;
173
(ii) businesses that have demonstrated
interest in literacy programs;
(iii) literacy students;
(iv) experts in the area of literacy re-
search;
(v) State and local governments; and
(vi) representatives of employees.
(2) DUTIES.—The Board shall—
(A) make recommendations concerning the
appointment of the Director and staff of the In-
stitute;
(B) provide independent advice on the op-
eration of the Institute; and
(C) receive reports from the Interagency
Group and the Director.
(3) TERMS.—
(A) IN GENERAL.—Each member of the
Board shall be appointed for a term of 3 years,
except that the initial terms for members may
be 1, 2, or 3 years in order to establish a rota-
tion in which 1⁄3 of the members are selected
each year.
(B) VACANCY APPOINTMENTS.—Any mem-
ber appointed to fill a vacancy occurring before
the expiration of the term for which the mem-
174
ber’s predecessor was appointed shall be ap-
pointed only for the remainder of that term. A
member may serve after the expiration of that
members’ term until a successor has taken of-
fice. A vacancy in the Board shall be filled in
the manner in which the original appointment
was made. A vacancy in the Board shall not af-
fect the powers of the Board.
(4) QUORUM.—A majority of the members of
the Board shall constitute a quorum but a lesser
number may hold hearings. Any recommendation
may be passed only by a majority of its members
present.
(5) CHAIRPERSON AND VICE CHAIRPERSON.—
The chairperson and vice chairperson of the Board
shall be elected by the members. The term of office
of the chairperson and vice chairperson shall be 1
year.
(6) MEETINGS.—The Board shall meet at the
call of the chairperson or a majority of its members.
(e) GIFTS, BEQUESTS, AND DEVISES.—The Institute
may accept, administer, and use gifts or donations of serv-
ices, money, or property, both real and personal.
(f) MAILS.—The Board and the Institute may use the
United States mails in the same manner and under the
175
same conditions as other departments and agencies of the
United States.
(g) STAFF.—The Interagency Group, after consider-
ing recommendations made by the Board, shall appoint
and fix the pay of a Director.
(h) APPLICABILITY
OF CERTAIN CIVIL SERVICE
LAWS.—The Director and staff of the Institute may be
appointed without regard to the provisions of title 5,
United States Code, governing appointments in the com-
petitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53
of that title relating to classification and General Schedule
pay rates, except that an individual so appointed may not
receive pay in excess of the maximum rate payable under
section 5376 of title 5, United States Code.
(i) EXPERTS AND CONSULTANTS.—The Board and
the Institute may procure temporary and intermittent
services under section 3109(b) of title 5, United States
Code.
(j) REPORT.—The Institute shall submit a biennial
report to the Interagency Group and the Congress.
SEC. 442. NATIONAL LEADERSHIP ACTIVITIES.
(a) IN GENERAL.—The Secretary shall establish and
carry out a program of national leadership and evaluation
176
activities to enhance the quality of adult education and
family literacy programs nationwide.
(b) REQUIRED ACTIVITY.—
(1) IN
GENERAL.—The program of national
leadership and evaluation activities under subsection
(a) shall include a national evaluation, conducted by
the Secretary, of the programs and activities carried
out by States and local service providers with Fed-
eral funds received under this subtitle. Such evalua-
tion shall include information on the following:
(A) The manner in which States and local
service providers use Federal funds, including
the manner in which States allocate such funds
among such providers.
(B) The manner in which States establish
goals and performance standards and use such
goals and standards to manage and improve
programs.
(C) The effectiveness of the funds used
under subparagraphs (B) and (C) of section
432(a)(3).
(D) The manner in which economically dis-
advantaged individuals and educationally dis-
advantaged adults are being served by States
and local service providers.
177
(E) The coordination between programs
and activities carried out with Federal funds re-
ceived under titles II and III and programs and
activities carried out with Federal funds re-
ceived under this subtitle.
(F) The percentage of individuals receiving
a service from an integrated career center sys-
tem who are referred by such system to a local
service provider providing adult education or lit-
eracy services.
(2) REPORT.—Not later than September 30,
2001, the Secretary shall provide to the Congress
and publicly publish the results of the evaluation
conducted under paragraph (1).
(c) AUTHORIZED ACTIVITIES.—
(1) IN
GENERAL.—The program of national
leadership and evaluation activities under subsection
(a) may include the following:
(A) Assisting States in developing levels of
performance.
(B) Research and development.
(C) Demonstration of model and innovative
programs.
(D) Evaluations, including independent
evaluations of adult education and family lit-
178
eracy programs carried out with financial as-
sistance received pursuant to this subtitle.
(E) Data collection.
(F) Professional development.
(G) Technical assistance to States and
local service providers receiving Federal finan-
cial assistance pursuant to this subtitle.
(H) Making grants to State or regional
networks of literacy resource centers described
in section 432(a)(3)(D).
(I) Other activities to enhance the quality
of adult education and family literacy programs
nationwide.
(2) GRANTS, CONTRACTS, AND
COOPERATIVE
AGREEMENTS.—The Secretary may carry out the ac-
tivities described in paragraph (1) directly or
through grants, contracts, and cooperative agree-
ments.
Subtitle B—Library Services and
Technology Consolidation Grant
SEC. 451. PURPOSES.
The purposes of this subtitle are—
(1) to consolidate Federal library service pro-
grams;
179
(2) to improve public access to information
through electronic networks; and
(3) to provide linkages among and between li-
braries and integrated career center systems.
SEC. 452. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated to carry out this subtitle $110,000,000 for each
of the fiscal years 1997 through 2002.
(b) ADVANCE NOTICE OF FUNDING.—For the pur-
pose of affording adequate notice of funding available
under this subtitle, an appropriation to carry out this sub-
title is authorized to be included in an appropriation Act
for the fiscal year preceding the fiscal year for which such
appropriation is first available for obligation.
SEC. 453. ALLOTMENTS.
(a) INITIAL ALLOTMENTS.—
(1) IN GENERAL.—From the sums appropriated
under section 452 for any fiscal year, the Secretary
shall allot—
(A) $40,000 each to Guam, American
Samoa, the Commonwealth of the Northern
Mariana Islands, and the Virgin Islands; and
(B) $200,000 to each of the other States.
(2) RATABLE REDUCTION.—If the sums appro-
priated under section 452 for any fiscal year are in-
180
sufficient to pay all of the allotments under para-
graph (1), each such allotment shall be ratably re-
duced.
(b) ADDITIONAL ALLOTMENTS.—
(1) IN GENERAL.—From the remainder of the
sums appropriated under section 452 for any fiscal
year after the application of subsection (a), the Sec-
retary shall allot to each State an amount which
bears the same ratio to such remainder as the popu-
lation of the State bears to the population of all
States.
(2) 
DETERMINATION
OF
POPULATION
OF
STATES.—For the purpose of this subsection, the
population of each State, and the total population of
all States, shall be determined by the Secretary on
the basis of the most recent census data available to
the Secretary, and the Secretary shall use for such
purpose, if available, the annual interim current cen-
sus data produced by the Secretary of Commerce
pursuant to section 181 of title 13, United States
Code.
SEC. 454. GRANTS TO STATES.
(a) IN GENERAL.—The Secretary shall make a grant
for a fiscal year to a State if the State—
181
(1) has submitted to the Secretary for the year
an annual application that has been approved by the
Secretary under section 456; and
(2) has entered into a written agreement with
the Secretary that—
(A) the State will provide 100 percent of
the funds paid to the State under this subtitle
for the year to the State library administrative
agency for the State;
(B) such agency will be required to use
such funds to carry out activities that—
(i) are described in such annual appli-
cation;
(ii) achieve the purposes of this sub-
title; and
(iii) satisfy the requirements of sec-
tion 455;
(C) there will be available from State and
local sources for expenditure by such agency to
carry out such activities an amount that equals
or exceeds 25 percent of the total cost (as de-
termined by the Secretary) of carrying out such
activities for the year; and
182
(D) such agency has the fiscal and legal
authority and capability to administer all as-
pects of such activities.
(b) AMOUNT OF GRANTS.—The amount of a grant
to a State under subsection (a) for a fiscal year shall equal
the lesser of the following:
(1) The sum of the initial and additional allot-
ments of the State for the year.
(2) 75 percent of the total cost (as determined
by the Secretary) of carrying out the activities de-
scribed in subsection (a)(2)(B) for the year.
SEC. 455. USES OF FUNDS.
(a) IN GENERAL.—Of the funds provided to a State
library administrative agency under section 454(a)(2)(A),
the agency shall expend (either directly or through
subgrants or cooperative agreements) at least 97 percent
for one or more of the following purposes:
(1) Electronically connecting libraries with inte-
grated career center systems designated or estab-
lished under section 107 and local service providers
receiving grants under paragraph (1) or (2) of sec-
tion 432(a).
(2) Establishing or enhancing linkages among
libraries.
183
(3) Assisting libraries in accessing information
through electronic networks.
(4) Encouraging libraries in different Federal,
State, and local jurisdictions, and different types of
libraries, to establish consortia and share resources.
(5) Paying costs for libraries to acquire or
share computer systems and telecommunications
technologies.
(6) Improving library and information services
for individuals who have difficulty using a library or
who need special library materials or services, in-
cluding individuals under the age of 18.
(b) ADMINISTRATIVE EXPENSES.—In any fiscal year,
a State library administrative agency may use not more
than 3 percent of the funds provided to the agency under
section 454(a)(2)(A) for planning, administration, evalua-
tions, and interagency coordination associated with a
grant under this subtitle.
SEC. 456. ANNUAL APPLICATIONS.
(a) SUBMISSION.—A State that desires to receive a
grant under this subtitle for a fiscal year shall submit to
the Secretary, in such form and manner and before such
deadline as the Secretary shall specify in regulations, an
application for such year. Such application shall—
184
(1) establish goals, and specify priorities, for
the State consistent with the purposes of this sub-
title;
(2) describe activities that are consistent with
such goals and priorities, the purposes of this sub-
title, and the requirements of section 455 that the
State library administrative agency will carry out
during such year using such grant;
(3) describe the procedures that such agency
will use to carry out such activities;
(4) describe the methodology that such agency
will use to evaluate the success of such activities in
achieving such goals and meeting such priorities;
(5) describe procedures that such agency will
use to involve libraries and library users throughout
the State in policy decisions regarding implementa-
tion of this subtitle; and
(6) provide assurances satisfactory to the Sec-
retary that such agency will make such reports, in
such form and containing such information, as the
Secretary may reasonably require to carry out this
subtitle and to determine the extent to which funds
provided under this subtitle have been effective in
carrying out its purposes.
(b) APPROVAL.—
185
(1) IN GENERAL.—The Secretary shall approve
each application submitted under subsection (a) that
satisfies the requirements of the subsection.
(2) RIGHTS OF STATES UPON DISAPPROVAL.—
If the Secretary determines that an application sub-
mitted by a State under subsection (a) does not sat-
isfy the requirements of such subsection, the Sec-
retary shall—
(A) immediately notify the State of such
determination and the reasons for such deter-
mination; and
(B) offer the State an opportunity to re-
vise its application to correct any deficiencies.
TITLE V—AMENDMENTS TO
REHABILITATION ACT OF 1973
Subtitle A—Vocational
Rehabilitation Consolidation Grant
CHAPTER 1—TRANSITION PERIOD
SEC. 501. TRANSITION.
With respect to the amendment made by section
511(a)(4) to title I of the Rehabilitation Act of 1973, the
Secretary of Education, acting through the Commissioner
of the Rehabilitation Services Administration, shall admin-
ister the amendment in accordance with the following:
186
(1) During fiscal year 1996, the Secretary shall
develop administrative policies for implementing the
amendment.
(2) During the fiscal years 1997 and 1998, the
Secretary shall begin implementing the amendment
in accordance with paragraph (4).
(3) The Secretary shall ensure that, by the first
day of fiscal year 1999, the amendment is fully im-
plemented.
(4) For purposes of paragraph (2), the Sec-
retary shall ensure that, before the first day of fiscal
year 1999, the following requirements, administered
as conditions on the receipt of grants under such
title, have been met:
(A) The States have complied with section
103(b)(4) of such title (as amended by section
511) regarding the participation of certain pro-
viders.
(B) The States have established policies
and made arrangements for the operation of the
system of career grants described in section
103(c) of such title, including with respect to
the reimbursement of providers.
(C) The States have established policies
and 
made 
arrangements 
under 
section
187
103(b)(12) of such title regarding the training
of the management and staff of integrated ca-
reer center systems with respect to individuals
with disabilities.
(D) The States have established policies
and made arrangements under section 104 of
such title regarding the establishment of such
centers, including providing for the significant
participation of community-based providers in
the program carried out by the State pursuant
to such title.
(E) Such other requirements under the
amendment as the Secretary determines to be
appropriate.
(5)(A) Notwithstanding the amendment, during
the fiscal years 1996 through 1998, the provisions
of title I of the Rehabilitation Act of 1973 that were
in effect on the day before the date of the enactment
of this Act continue to be in effect, subject to para-
graphs (1) through (4). In implementing the amend-
ment, the Secretary shall seek to avoid unnecessarily
disrupting the provision of services under such title
to individuals who, as of the date of the enactment
of this Act, were receiving services pursuant to an
individualized plan under such title.
188
(B) On and after the first day of fiscal year
1999, the provisions referred to in the first sentence
of subparagraph (A) do not have any legal effect.
CHAPTER 2—REVISION OF TITLE I OF
REHABILITATION ACT OF 1973
SEC. 511. REVISION OF TITLE I.
(a) IN GENERAL.—Effective October 1, 1995, the
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is
amended—
(1) by transferring section 112 from the cur-
rent placement of the section;
(2) by redesignating such section as section
510;
(3) by adding such section at the end of title
V; and
(4) by amending title I to read as follows:
‘‘TITLE I—VOCATIONAL
REHABILITATION SERVICES
‘‘SEC. 100. PURPOSE.
‘‘The purpose of this title is to assist States in mak-
ing available to individuals with disabilities a program of
employment, training, and rehabilitation services that is
consistent with their strengths, resources, priorities, con-
cerns, abilities, and capabilities; that maximizes individ-
uals’ control over their vocational and career choices; and
189
that is in accordance with the goal of assuring equality
of opportunity, full participation, independent living, and
economic self-sufficiency for such individuals.
‘‘SEC. 101. FORMULA GRANTS.
‘‘(a) IN GENERAL.—
‘‘(1) FORMULA GRANTS.—In the case of each
State that submits to the Secretary a workforce de-
velopment and literacy plan for fiscal year 1999 or
any subsequent fiscal year that meets the require-
ment of section 104 of the Consolidated and Re-
formed Education, Employment, and Rehabilitation
Systems Act, the Secretary shall make a grant for
the year to the State as the Federal share of carry-
ing out the purposes specified in this title. The grant
shall consist of the allotment determined for the
State under section 107.
‘‘(2) CONDITIONS FOR GRANT.—A State may
receive a grant under paragraph (1) for a fiscal year
only if the State meets the conditions described in
this title for the State for the fiscal year.
‘‘(b) ADMINISTRATOR OF FEDERAL PROGRAM.—The
Secretary shall carry out this title acting through the
Commissioner of the Rehabilitation Services Administra-
tion, except as indicated otherwise.
190
‘‘(c) RULE OF CONSTRUCTION.—The purpose speci-
fied in section 100 shall be carried out only in accordance
with the other provisions of this title.
‘‘(d) FUNDING.—
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.—
For the purpose of carrying out this title, there are
authorized to be appropriated such sums as may be
necessary for each of the fiscal years 1999 through
2002, except that the amount to be appropriated for
a fiscal year shall not be less than the amount of the
appropriation under this subsection for the imme-
diately preceding fiscal year, plus the amount of the
Consumer Price Index addition determined under
paragraph (2) for the immediately preceding fiscal
year.
‘‘(2) ADJUSTMENTS PURSUANT TO CONSUMER
PRICE INDEX.—
‘‘(A) Not later than November 15 of each
fiscal year, the Secretary of Labor shall publish
in the Federal Register the percentage change
in the Consumer Price Index published for Oc-
tober of the preceding fiscal year and October
of the fiscal year in which such publication is
made.
191
‘‘(B) If in any fiscal year the percentage
change published under subparagraph (A) indi-
cates an increase in the Consumer Price Index,
then the amount to be appropriated under para-
graph (1) for the subsequent fiscal year shall be
at least the amount appropriated for the fiscal
year in which the publication is made under
subparagraph (A) increased by such percentage
change.
‘‘(C) If in any fiscal year the percentage
change published under subparagraph (A) does
not indicate an increase in the Consumer Price
Index, then the amount to be appropriated
under paragraph (1) for the subsequent fiscal
year shall be at least the amount appropriated
for the fiscal year in which the publication is
made under subparagraph (A).
‘‘(D) For purposes of this paragraph, the
term ‘Consumer Price Index’ means the
Consumer Price Index for All Urban Consum-
ers, published monthly by the Bureau of Labor
Statistics.
‘‘(3) AUTOMATIC
EXTENSION
OF
AUTHORIZA-
TION.—
192
‘‘(A) Unless, in the regular session that
ends prior to the beginning of the last fiscal
year for which an authorization of appropria-
tions is provided in paragraph (1), legislation
has been enacted that has the effect of extend-
ing such authorization, such authorization is
automatically extended for one additional year.
‘‘(B) The amount authorized to be appro-
priated for the additional fiscal year described
in subparagraph (A) shall be an amount equal
to the amount appropriated for such program
for fiscal year 2002, plus the amount of the
Consumer Price Index addition determined
under paragraph (2) for the immediately pre-
ceding fiscal year.
‘‘(C) In any case where the Commissioner
is required under an applicable statute to carry
out certain acts or make certain determinations
that are necessary for the continuation of the
program authorized by this title, and such acts
or determinations are required during the last
fiscal year for which an authorization of appro-
priations is provided in paragraph (1), such
acts and determinations shall be required dur-
193
ing any fiscal year for which subparagraph (A)
is in operation.
‘‘SEC. 102. ALLOCATION WITHIN STATE OF ADMINISTRA-
TIVE RESPONSIBILITIES.
‘‘(a) IN GENERAL.—For purposes of section 101(a),
a State will—
‘‘(1) subject to subsection (b), reserve not more
than 20 percent of the grant under such section for
the fiscal year involved for carrying out the respon-
sibilities of a State administrative agent under sec-
tion 103; and
‘‘(2) reserve not less than 80 percent of the
grant for carrying out the responsibilities under sec-
tion 104 of local workforce development boards and
integrated career center systems with respect to
workforce development areas.
‘‘(b) 
ADDITIONAL
STATE
RESPONSIBILITIES.—
Amounts reserved by a State under subsection (a)(1) may
be expended by the State administrative agent to carry
out responsibilities that otherwise would be carried out
under section 104 by local workforce development boards
or integrated career center systems, if the State deter-
mines that such expenditures are justified to make avail-
able goods and services that could not otherwise be ob-
tained within a local workforce development area, to pro-