I
104TH CONGRESS
1ST SESSION
H. R. 1617
To consolidate and reform workforce development and literacy programs,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 11, 1995
Mr. MCKEON (for himself, Mr. GOODLING, Mr. CUNNINGHAM, Mr. GUNDER-
SON, Mr. RIGGS, Mr. DELAY, Mr. BOEHNER, Mr. KASICH, Mr.
MCINTOSH, Mr. PETRI, Mrs. ROUKEMA, Mr. FUNDERBURK, Mr.
SOUDER, Mr. FAWELL, Mr. BALLENGER, Mr. BARRETT of Nebraska, Mr.
HOEKSTRA, Mr. CASTLE, Mrs. MEYERS of Kansas, Mr. SAM JOHNSON
of Texas, Mr. TALENT, Mr. GREENWOOD, Mr. HUTCHINSON, Mr.
KNOLLENBERG, Mr. GRAHAM, Mr. WELDON of Florida, Mr. NORWOOD,
and Mr. DAVIS) 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. Findings and purpose.
Sec. 4. Authorizations of appropriations.
Sec. 5. Definitions.
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. Designation of State administrative agent.
Sec. 106. Establishment of workforce development areas.
Sec. 107. Provisions regarding local workforce development boards.
Sec. 108. Establishment of one-stop career center systems.
Sec. 109. Certification of education, training, and vocational rehabilitation serv-
ice providers.
Sec. 110. Management information systems.
Subtitle B—Amendments to Wagner-Peyser Act
Sec. 131. General program requirements.
Sec. 132. Labor market information.
TITLE II—YOUTH WORKFORCE PREPARATION AND
DEVELOPMENT CONSOLIDATION GRANT
Sec. 201. Purposes.
Sec. 203. 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 Programs
Sec. 231. Partnership agreements.
Sec. 232. Distribution of funds.
CHAPTER 1—IN-SCHOOL YOUTH PROGRAMS
Sec. 241. Uses of funds for in-school youth programs.
CHAPTER 2—AT-RISK YOUTH PROGRAMS
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. Annual assessment and data collection of vocational education pro-
grams.
Sec. 253. National center or centers for research.
TITLE III—ADULT EMPLOYMENT AND TRAINING CONSOLIDATION
GRANT
Subtitle A—Adult Employment and Training Consolidation Grant
Sec. 301. Purpose.
Sec. 302. Authorization.
Sec. 303. Allotment among States.
Sec. 304. Allocation within States.
Sec. 305. Additional State plan requirements.
Sec. 306. Use of amounts.
Sec. 307. Core standards, performance goals, and measures.
Subtitle B—Federal Programs
Sec. 311. National discretionary grants.
Sec. 312. Disaster relief employment assistance.
Sec. 313. Research, demonstration, evaluation, and capacity building.
Sec. 314. Workforce skills and development loans.
Sec. 315. Employment, training, and education assistance for Native Ameri-
cans.
Sec. 316. Employment, training, and education assistance for migrant and sea-
sonal farmworkers.
TITLE IV—ADULT EDUCATION, FAMILY LITERACY, AND LIBRARY
TECHNOLOGY CONSOLIDATION GRANT
Sec. 401. Findings and purpose.
Sec. 402. Definitions.
Subtitle A—Funding
Sec. 411. Reservations from amounts appropriated.
Sec. 412. Allotment.
Subtitle B—Grants to States
Sec. 421. Requirement to make grants.
Sec. 422. Uses of funds.
Sec. 423. Additional grant requirements.
Sec. 424. Performance measures.
Subtitle C—National Programs
Sec. 431. National competitive incentive grants.
Sec. 432. National Institute for Literacy.
Sec. 433. National leadership activities.
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. Comprehensive revision.
Subtitle B—Other Amendments to Rehabilitation Act of 1973
Sec. 521. Training and demonstration projects.
Sec. 522. Employment opportunities for individuals with disabilities.
TITLE VI—AMENDMENTS TO THE HIGHER EDUCATION ACT OF
1965
Sec. 601. Purpose of title.
Subtitle A—Student Loan Marketing Association
Sec. 611. Reorganization of the student loan marketing association through the
formation of a holding company.
Subtitle B—College Construction Loan Insurance Association
Sec. 621. Privatization of college construction loan insurance association.
TITLE VII—REPEALERS AND OTHER AMENDMENTS.
Sec. 701. Carl D. Perkins Vocational and Applied Technology Education Act.
Sec. 702. School-to-Work Opportunities Act.
Sec. 703. Adult Education Act.
Sec. 704. National Literacy Act.
Sec. 705. Library Services and Construction Act.
Sec. 706. Technology for Education Act of 1994.
Sec. 707. Job Training Partnership Act.
Sec. 708. Stewart B. Mckinney Homeless Assistance Act.
Sec. 709. Higher education provisions.
Sec. 710. Effective date.
SEC. 3. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds the following:
(1) The knowledge and skills of the United
States workforce are fundamental to the economic
competitiveness of the Nation today and in the fu-
ture, however, the United States does not currently
possess a comprehensive, effective, and efficient sys-
tem of workforce preparation and development.
(2) Due to global competition, emerging tech-
nologies in the workplace, the emergence of quality
managing, corporate realignments, and the loss of
many low-skilled jobs, United States workers will in-
creasingly need to enhance their skills on a continu-
ing, lifelong basis through such a workforce prepara-
tion and development system.
(3) Reports from the Comptroller General of
the United States have identified 163 different Fed-
eral programs, totaling $20,000,000,000, and ad-
ministered by 14 different Federal agencies, that
offer some form of education, job training, or em-
ployment assistance to youths and adults.
(4) Such reports point to the many problems of
duplication and fragmentation that exist within the
varied Federal workforce preparation and develop-
ment programs, including—
(A) the additional costs of administering
overlapping workforce preparation and develop-
ment programs at the Federal, State, and local
levels which divert scarce resources that could
be better used to assist all individuals in pre-
paring for and entering the workforce; and
to job seekers, employers, teachers, students,
and decision-makers.
(6) Early exposure to career opportunities can
enrich the education experience and provide incen-
tives for students to stay in school and achieve high-
er levels of learning.
(7) Millions of families in the United States are
trapped in a cycle of poverty, dependency, and inad-
equate education that is linked to illiteracy and low
educational achievement, for which adult education
and family literacy programs have been shown to be
successful in improving the educational attainment
and job skills of parents and their children, contrib-
uting to reductions in crime, welfare dependency,
and enhancing employment opportunities for such
individuals.
(8) In recent years, a number of innovative
States and local communities have begun successful
efforts to integrate Federal workforce preparation
and development programs through one-stop service
delivery systems, however, without exception, such
States and communities have experienced numerous
Federal barriers to such program integration.
(9) An extremely high percentage of Americans
with disabilities are unemployed, and need access to
high quality, specialized rehabilitation services that
lead to employment, independence, and full partici-
pation in the mainstream of life in America.
(b) PURPOSE.—The purpose of this Act is to trans-
form the vast array of Federal workforce development and
literacy programs from a collection of fragmented and du-
plicative categorical programs into a streamlined, com-
prehensive, coherent, high-quality, cost-effective, market-
based, and accountable Federal workforce development
and literacy system that is designed to meet the education,
employment, and training needs of the workforce and the
competitiveness needs of employers of the United States,
both today and in the future.
SEC. 4. AUTHORIZATIONS OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
titles II through IV such sums as may be necessary for
each of the fiscal years 1997, 1998, 1999, 2000, 2001,
and 2002.
SEC. 5. DEFINITIONS.
For purposes of this Act:
(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, and
who is not enrolled or required to be enrolled in sec-
ondary 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 in-school youth who are determined to be at
risk of dropping out of school prior to receipt of a
high school diploma, out-of-school youth, and school
dropouts.
(5) CAREER
EXPLORATION
AND
GUIDANCE
COUNSELING.—The term ‘‘career exploration and
guidance counseling’’ means programs—
(A) which pertain 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 assist such individuals in mak-
ing and implementing informed educational and
occupational choices; and
(C) that begin not later than the sixth
grade.
(6) CASE MANAGEMENT.—The term ‘‘case man-
agement’’ means the provision of a client-centered
approach in the delivery of services designed to—
(A) prepare and coordinate comprehensive
employment plans, such as service strategies for
participants, to ensure access to necessary
training and supportive services, using where
feasible, computer-based technologies; and
(B) provide job and career counseling dur-
ing program participation and after job place-
ment.
(7) 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.
(8) 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 education, vocational rehabilitation, job
training, or internship services and programs.
(9) DISLOCATED
WORKERS.—The term ‘‘dis-
located workers’’ means individuals who—
(A) have been terminated or laid off or
who have received a notice of termination or
layoff from employment, are eligible for or have
exhausted their entitlement to unemployment
compensation, and are unlikely to return to
their previous industry or occupation;
(B) have been terminated or have received
a notice of termination of employment, as a re-
sult of any permanent closure of or any sub-
stantial layoff at a plant, facility, or enterprise;
(C) are long-term unemployed and have
limited opportunities for employment or reem-
ployment in the same or a similar occupation in
the area in which such individuals reside, in-
cluding older individuals who may have sub-
stantial barriers to employment by reason of
age; or
(D) were self-employed (including farmers
and ranchers) who are unemployed as a result
of general economic conditions in the commu-
nity in which they reside or because of natural
disasters, subject to regulations prescribed by
the Secretary.
(10) 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.
(11) 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.
(12) 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.
(13) 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) is active duty military.
(14) 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.
(15) 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.
(16) GOVERNOR.—The term ‘‘Governor’’ means
the chief executive of any State.
(17) 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.
(18) INDIVIDUALS
WITH
DISABILITIES.—The
term ‘‘individuals with disabilities’’ has the meaning
given such term in the Vocational Rehabilitation Act
of 1973.
(19) 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.
(20) INTERMEDIATE EDUCATIONAL AGENCY.—
The term ‘‘intermediate educational agency’’ means
a combination of school districts or counties (as de-
fined in section 14101 of the Elementary and Sec-
ondary Education Act of 1965) that is recognized in
a State 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.
(21) 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, but are not
limited to, job-finding skills, orientation to the labor
market, resume preparation assistance, job finding
clubs, job search workshops, vocational exploration,
and other services.
(22) 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.
(23) 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.
(24) 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.
(25) NATIVE AMERICANS.—The term ‘‘Native
Americans’’ means individuals eligible for education,
employment, and job training assistance under title
III of this Act.
(26) 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
he or she is 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 costs of providing training and addi-
tional supervision; and
(C) is based on the Occupational Employ-
ment Statistics Program Dictionary.
(27) OUT-OF-SCHOOL YOUTH.—The term ‘‘out-
of-school youth’’ means a youth who is no longer at-
tending any school and who has not received a sec-
ondary school diploma or a certificate from a pro-
gram of equivalency for such a diploma.
(28) 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.).
(29) PREEMPLOYMENT SKILLS TRAINING; JOB
READINESS
SKILLS
TRAINING.—The 
terms
‘‘preemployment skills training’’ and ‘‘job readiness
skills training’’ mean training that helps prepare in-
dividuals for work by assuring that they are familiar
with general workplace expectations and exhibit
work behavior and attitudes necessary to compete
successfully in the job market.
(30) 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.
(31) 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, 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 services
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.
(32) 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.
(33) 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.
(34) SKILL CERTIFICATE.—The term ‘‘skill cer-
tificate’’ means a portable, industry-recognized cre-
dential issued by programs authorized under this
Act, that certifies that an individual has mastered
skills at levels that are at least as challenging as
skill standards endorsed by the National Skill
Standards Board, except that until such skill stand-
ards are developed, the term ‘‘skill certificate’’
means a credential issued under a process deter-
mined by the State.
(35) 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.
(36) 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.
(37) 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.
(38) 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 program funded
under this Act. Such supportive services may include
transportation, individual and family counseling,
special services and materials for individuals with
disabilities, child care and dependent care, meals,
temporary shelter, financial counseling, needs-based
payments, and other reasonable expenses required
for participation in a training program. Such serv-
ices may be provided in-kind or through cash assist-
ance, except that such services will be provided with
funds provided under this Act only after alternative
funding sources specifically designated for such serv-
ices have been exhausted.
(39) 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.
(40) 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.
(41) VETERAN.—The term ‘‘veteran’’ means an
individual who served in the active military, naval, or
air service, and who was discharged or released
therefrom under conditions other than dishonorable
discharge.
(42) 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.
(43) 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, and the employer of the student or
program participant.
(44) YOUTH.—The term ‘‘youth’’ means an in-
dividual between the ages of 14 and 24.
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 the States of a system
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
Workforce Preparation and Development Con-
solidation Grant.
(B) The program under title III, the Adult
Employment and Training Consolidation Grant.
(C) The program under title IV, the Adult
Education, Family Literacy, and Library Tech-
nology 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 title,
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), has been
used in complying with the applicable provisions of this
Act.
(b) COLLABORATIVE PROCESS.—The collaborative
process referred to in subsection (a) is a process for mak-
ing decisions which includes as participants, at a mini-
mum, the Governor and—
(1) the lead State agency official or officials
for—
(A) the State educational agency;
(B) the State agency responsible for eco-
nomic development;
(C) the State agency responsible for em-
ployment;
(D) the State agency responsible for job
training;
(E) the State agency responsible for post-
secondary education;
(F) the State agency responsible for voca-
tional education;
(G) the State agency responsible for voca-
tional rehabilitation, and where applicable, the
State agency providing vocational rehabilitation
services for the blind;
(H) the State agency responsible for adult
education and literacy; and
(I) the State Library Administrative Agen-
cy; and
(2) representatives of the following (which rep-
resentatives are appointed by the Governor)—
(A) business and industry;
(B) locally elected officials;
(C) local educational agencies;
(D) postsecondary institutions; and
(E) the State rehabilitation advisory coun-
cil.
(c) RULE OF CONSTRUCTION.—With respect to com-
pliance with subsection (b), a State may use any existing
State process (including any council or similar entity) that
meets the requirements of such subsection.
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 State workforce
development and literacy plan that meets the requirements
of this section to—
(1) the Secretary of Education; and
(2) 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) 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 skill and
economic development needs of the State, and
an assessment of the type and availability of
workforce development, adult education, and lit-
eracy programs in the State;
(B) the identification of progress indica-
tors, based on the performance measures de-
scribed in titles II through V and a model of
continuous improvement, that the State will use
to measure progress made by the State, local
workforce development boards, and local recipi-
ents of financial assistance under this Act in
meeting such goals; and
(C) a description of how performance
measures are consistent across the 4 grant pro-
grams established in titles II through V.
(3) A description of how the State has com-
plied, or will comply, with the provisions of sections
105 through 109.
(4) A description of how a State will participate
in the National Labor Market Information system
pursuant to subtitle B.
(5) Any information required to be included in
the plan under any of titles II through V (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 (including the establishment of a common
management information system) across such pro-
grams.
(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) 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.
(c) AUTHORITY OF GOVERNOR.—If, after a reason-
able effort, a Governor is unable to obtain agreement
through the collaborative process described in subsection
(b)(1), the Governor shall have final authority to make
decisions and submit a plan for the design of a comprehen-
sive system of workforce development and literacy for the
State under subsection (a).
(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.
(e) ALLOCATION
OF RESPONSIBILITIES
OF SEC-
RETARIES.—The Secretary of Education and the Sec-
retary of Labor shall collaborate in establishing and using
a common procedure in making determinations regarding
compliance by the States with the requirements estab-
lished in this title.
SEC. 
105. 
DESIGNATION 
OF 
STATE 
ADMINISTRATIVE
AGENT.
(a) DESIGNATION.—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, through the collaborative
process described in section 103, designate a State admin-
istrative agent for each grant requiring such an agent
under this Act. The Governor may designate the same ad-
ministrative agent to be responsible for more than one
such grant.
(b) DUTIES.—An administrative agent designated
under subsection (a) shall administer funds received under
this Act, including receipt, review, processing, monitoring,
progress and financial report review, technical assistance,
grant adjustments, accounting, auditing, and fund dis-
bursements.
SEC. 106. ESTABLISHMENT OF WORKFORCE DEVELOPMENT
AREAS.
(a) IDENTIFICATION OF AREAS.—The Governor of a
State that desires to receive a grant under one or more
of the programs specified in section 102(b) shall, through
the collaborative process established under section 103
and after consultation with locally elected officials, and
after consideration of comments received through the pub-
lic participation process as described in the State plan,
shall publish a proposed designation of local workforce de-
velopment areas within the State. Such areas shall be des-
ignated 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
agencies.
(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 one-stop career cen-
ters.
SEC. 107. 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, shall es-
tablish criteria for use by locally elected officials in the
workforce development area, in the selection of members
of local workforce development boards, in accordance with
requirements prescribed under subsections (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 a list of nominees submitted by local business
organizations and trade associations; and
(2) an individual or individuals with disabilities,
or their representatives.
(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 shall select the members of the
local workforce development board for such
area, in accordance with the State criteria de-
veloped 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 official of
each such unit shall select the members of the
local workforce development board for such area
in accordance with an agreement entered into
by such officials, in accordance with the State
criteria developed under subsection (b).
(2) CERTIFICATION.—The Governor shall cer-
tify one local workforce development board for each
workforce development area by not later than Octo-
ber 1, 1996.
(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 and shall be
approved by the appropriate chief elected official or
officials. 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 one-
stop career center operators, with whom the
Board contracts.
(C) A description of the local one-stop ca-
reer center system to be established in the
workforce development area, including—
1973, and for one-stop career center sys-
tems established or designated under sec-
tion 108.
(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), of one-stop career
centers established under this title, and of pro-
grams established under the Wagner Peyser
Act.
(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 to 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 one-stop cen-
ters and other service providers, as des-
ignated by the local workforce development
board.
(ii) The Board may employ its own
staff, independent of local programs and
service providers.
(B) LIMITATION.—The workforce develop-
ment board may not operate programs estab-
lished under this Act.
(C) CONFLICT OF INTEREST.—No member
of a workforce development board may cast a
vote on the provision of services by that mem-
ber (or any organization which that member di-
rectly represents) or vote on any matter that
would provide direct financial benefit to such
member.
(5) OTHER.—Each local workforce development
board shall carry out such other duties as deter-
mined to be appropriate by the Governor and the in-
dividuals and entities described in section 103,
through the collaborative process described in the
State plan.
SEC. 108. ESTABLISHMENT OF ONE-STOP CAREER CENTER
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 shall establish or designate
a one-stop career center system in the workforce develop-
ment area of such board, consistent with criteria estab-
lished under subsection (b), and not later than July 1,
1997.
(b) STATE CRITERIA.—The Governor, through the
collaborative process described under section 103, shall es-
tablish statewide criteria for use by local workforce devel-
opment boards in the designation or establishment of one-
stop career center systems to ensure that the most effec-
tive and efficient service providers are chosen. Such cri-
teria shall be consistent with the requirements prescribed
under subsection (c).
(c) ONE-STOP CAREER CENTER SYSTEM REQUIRE-
MENTS.—At a minimum, one-stop career center systems
shall include—
(1) common intake;
(2) preliminary assessment;
(3) integrated job development and placement
for multiple workforce development programs;
(4) unified and linked computer systems, in-
cluding the availability of labor market information
as described under subtitle B, and linkages through
uniform management information systems; and
(5) to the extent practicable, at least one phys-
ical, 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 one-stop career centers, combined with multiple
affiliated sites that are linked through electronic and tech-
nological access points.
(d) COMMON ACCESS.—Information pertaining to the
labor market which is compiled pursuant to the Wagner
Peyser Act, as described in subtitle B of this title, shall
be available, to the extent practicable, through integrated
electronic networks, at all one-stop career center systems.
(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 a one-stop career center or to
participate in a one-stop career center system. Such enti-
ties may include the following:
(1) Institutions of higher education.
(2) Local educational agencies.
(3) Area vocational education schools.
(4) Local employment service offices, estab-
lished under the Wagner Peyser Act.
(5) Private nonprofit organizations.
(6) Private for-profit entities.
(7) Agencies of local governments.
(8) Other interested organizations and entities
of demonstrated effectiveness, consistent with State
criteria established pursuant to subsection (b).
(f) DUTIES.—Each one-stop career center shall carry
out the following duties:
(1) PROVISION OF CORE SERVICES.—A center
shall make available the following information and
core services to individuals on a universal basis, in
the workforce development area in which such center
is located:
(A) Outreach and intake for services pro-
vided under chapter 2 of title II, title III, title
IV, and title I of the Rehabilitation Act of
1973.
(B) A preliminary assessment of the skill
levels and the need for services under chapter
2 of title II, title III, title IV, and title I of the
Rehabilitation Act of 1973 of individuals, which
may include such factors as basic skills, occupa-
tional skills, career development skills, prior
work experience, employability, interests, apti-
tudes, vocational rehabilitation needs, and sup-
portive service needs.
(C) Information relating to local and
State, and if appropriate, to regional or na-
tional, occupations in demand and skill require-
ments for such occupations.
(D) Information relating to youth services,
including 
information 
on 
at-risk 
youth
workforce development programs authorized
under title II, on school-to-work opportunities,
and on youth apprenticeship opportunities.
(E) Career counseling and career planning
based on a preliminary assessment of the indi-
vidual.
(F) Employability development services,
which may include assistance in the preparation
of a resume, job interview techniques, and work
deportment.
(G) Information related to vocational reha-
bilitation services, as provided for in title I of
the Rehabilitation Act of 1973.
(H) Information relating to federally fund-
ed education and job training programs (includ-
ing registered apprenticeships), and student aid
programs, including the eligibility requirements
of and services provided by such programs.
(I) Information on, and assistance in
accessing referral to additional services through
programs providing adult education and literacy
services, vocational rehabilitation, workforce
preparation and development, and supportive
services, including those programs authorized in
titles II through V, available in the workforce
development area.
(J) Information on the extent to which the
services provided under title II through V meet
or exceed the performance standards estab-
lished under section 108, and other information
as developed in the workforce development
areas consumer-feedback process.
(K) Information on industry-recognized
skill standards and assessments.
(L) Job listings for local labor market op-
portunities, and job search assistance.
(M) Acceptance of applications for unem-
ployment compensation.
(N) Other appropriate activities to assist
individuals into employment.
(2) DISTRIBUTION
OF
VOUCHERS.—A center
shall serve as the point of distribution of vouchers
for education, training, and vocational rehabilitation
services to eligible individuals in accordance with
section 109.
SEC. 109. CERTIFICATION OF EDUCATION, TRAINING, AND
VOCATIONAL 
REHABILITATION 
SERVICE
PROVIDERS.
(a) ELIGIBILITY REQUIREMENTS.—A provider of
education and training services shall be eligible to receive
funds under this title, through the receipt of vouchers, or
otherwise, if such provider—
(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).
(b) ALTERNATIVE ELIGIBILITY PROCEDURE.—(1)
The Governor shall establish an alternative eligibility pro-
cedure for providers of education and training services in
any State desiring to receive funds under titles III and
V, 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 shall utilize local workforce develop-
ment boards, for the certification of providers of edu-
cation, training, and vocational rehabilitation services.
(2) Notwithstanding paragraph (1), if the participa-
tion 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 two years.
(c) 
PERFORMANCE-BASED
INFORMATION.—The
State shall identify performance-based information that is
to be submitted by providers of services desiring to be eli-
gible under this section. Such information may include in-
formation 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 skill standards and certification require-
ments endorsed by the National Skill Standards
Board established under the Goals 2000: Educate
America Act;
(4) the rates of placement and retention in em-
ployment, and earnings of the graduates of the pro-
grams conducted by the provider;
(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; and
(7) other information for providers of services
under title I of the Rehabilitation Act of 1973 that
reflects the goal of serving individuals with the most
severe disabilities.
(d) ADMINISTRATION.—
(1) STATE AGENCY.—The Governor shall des-
ignate a State agency to collect, verify, and dissemi-
nate 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) 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 providers, ac-
companied by the performance-based information
submitted, and disseminate such list and informa-
tion to the local workforce development boards with-
in 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 two years, unless such provider can
demonstrate to the satisfaction of the Governor
or his or her designee, that the information 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 and training providers in developing the
information required under subsection (b). Such as-
sistance may include facilitating the utilization of
State administrative records, such as unemployment
compensation wage records, and other appropriate
coordination activities.
(e) ON-THE-JOB TRAINING EXCEPTION.—
(1) IN
GENERAL.—Providers of on-the-job
training shall not be subject to the requirements of
subsections (a), (b), and (c).
(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 shall disseminate such information
to the one-stop career centers.
SEC. 110. MANAGEMENT INFORMATION SYSTEMS.
(a) IN GENERAL.—Each State shall use a portion of
the funds it receives under this Act to design a unified
management information system.
(b) REQUIREMENTS.—Each unified management in-
formation system shall—
(1) notwithstanding any other provision of Fed-
eral law, 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 one-stop
career centers which shall have the capability to
track the overall public investments within the State
and workforce development areas, and to inform pol-
icymakers as to the results being achieved 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 the common data elements and definitions in-
cluded in title I; and
(4) support local efforts to establish workforce
development systems, including intake and eligibility
determination for all services.
Subtitle B—Amendments to
Wagner-Peyser Act
SEC. 131. GENERAL PROGRAM REQUIREMENTS.
(a) PURPOSE.—Section 1 of the Act of June 6, 1933
(commonly known as the ‘‘Wagner-Peyser Act’’; 29 U.S.C.
49) is amended by striking ‘‘public employment offices’’
and inserting ‘‘local employment service offices open to the
public’’.
(b) DEFINITIONS.—Section 2 of such 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 ‘local employment service office’
means an office which provides employment services
to the general public under a one-stop career center
system; and
‘‘(7) the term ‘one-stop career center system’
means a one-stop career center system established
under title I of the Consolidated and Reformed Edu-
cation, Employment, and Rehabilitation Systems
Act.’’.
(c) 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—
‘‘(1) assist in the coordination and development
of a nationwide system of labor exchange services for
the general public, provided through the one-stop ca-
reer center system;
‘‘(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.’’.
(d) 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, through the collaborative process de-
scribed in title I of the Consolidated and Reformed Edu-
cation, Employment, and Rehabilitation Systems Act’’.
(e) 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 title II of
this Act’’.
(f) 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.’’.
(g) 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).
(h) ELIMINATION
OF FEDERAL ADVISORY COUN-
CIL.—Section 11 of such Act (29 U.S.C. 49j) is hereby
repealed.
(i) CONFORMING AMENDMENTS.—
(1) After section 2 of such Act insert the fol-
lowing 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) of such Act is amended—
(A) in paragraph (1), by striking ‘‘public
employment service offices’’ and inserting ‘‘local
employment service offices’’; and
(B) in paragraph (2), 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 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.
‘‘The Secretary of Labor, in accordance with the pro-
visions of this title, shall oversee the development, mainte-
nance, and continuous improvement of a nationwide sys-
tem of labor market information using data from all avail-
able and appropriate sources, which shall include—
‘‘(1) statistical data from survey and projection
programs and data from administrative reporting
systems, which, taken together, shall enumerate, es-
timate, and project the supply and demand for labor
at national, State, and local levels in a timely man-
ner, including data on—
‘‘(A) the demography, socioeconomic char-
acteristics, and current employment status of
the population, including self-employed, part-
time, and seasonal workers;
‘‘(B) the job duties, 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;
‘‘(D) information maintained in a longitu-
dinal manner on the quarterly earnings, estab-
lishment and industry affiliation, and geo-
graphic location of employment for all individ-
uals for whom such information is collected by
the States; 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, which shall be current, comprehensive,
localized, and automated, and which shall be acces-
sible, easy to understand, and in a form useful for
immediate employment, entry into education and
training programs, and career exploration, 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;
‘‘(B) job seekers, including their education
and training, skills, skill levels, employment ex-
perience, and employment goals; and
‘‘(C) education courses, training programs,
and job placement programs, including—
‘‘(i) performance information, such as
the ratio of program completion, acquisi-
tion of industry-recognized skill standards,
job placement, earnings, and the level of
satisfaction of the participants and their
employers; and
‘‘(ii) descriptive information, such as
eligibility requirements, costs, financial
support, or other supportive services, and
other appropriate information which may
be available with these courses and pro-
grams;
‘‘(3) technical standards for data and informa-
tion that will—
‘‘(A) ensure compatability and additivity of
data and information from local to State and
national levels;
‘‘(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) national, 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) national, 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 data bases, 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.
‘‘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 and the States.
‘‘(b) DUTIES.—The Secretary, with respect to data
collection, analysis, and dissemination of labor market in-
formation, shall carry out the following duties:
‘‘(1) Reconcile all statistical and administrative
data collection activities within the Department of
Labor, including the Employment and Training Ad-
ministration, Employment Standards Administra-
tion, and Occupational Health and Safety Adminis-
tration, to those of the Bureau of Labor Statistics.
‘‘(2) Assign responsibilities, as appropriate, to
agencies such as the Employment and Training Ad-
ministration, to assist the Bureau of Labor Statis-
tics in the collection, analysis and, particularly, in
the dissemination of labor market information, and
in the provision of training and technical assistance
to users of information, including the States, em-
ployers, youth, and adults.
‘‘(3) In cooperation with other Federal agen-
cies, including but not limited to the Departments of
Commerce, Defense, Treasury, Education, Health
and Human Services, Agriculture, and the Office of
Management and Budget, establish and maintain
mechanisms for ensuring complementarity and non-
duplication in the development and operation of sta-
tistical and administrative data collection activities,
in order to ensure a comprehensive labor market in-
formation system.
‘‘(4) Actively seek the participation of other
Federal agencies, particularly the National Center
for Education Statistics and the Division of Adult
and Vocational Education of the Department of
Education, in the design and provision of standard-
ized information to the States to support section
102(a)(2), and in the dissemination of labor market
information.
‘‘(c) ADDITIONAL DUTIES.—The Secretary, acting
through the Bureau of Labor Statistics, and in coopera-
tion with other Federal agencies, shall—
‘‘(1) establish and maintain, with the coopera-
tion of the States, elements of the system described
in sections 102(a)(1) and 102(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 102(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 and lo-
cally detailed for uses including those specified
in section 102(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, working
through the Bureau of Labor Statistics, and in consulta-
tion with other appropriate Federal agencies, shall prepare
an annual plan, which shall be the operational mechanism
for achieving a cooperative Federal/State governance
structure for labor market information. The annual plan
shall provide the verbal justification for the Department
of Labor’s budget request to Congress by describing the
tion of how the Secretary’s requested budget will
cover these costs.
‘‘(b) COOPERATION WITH THE STATES.—The Sec-
retary shall involve the States with the Bureau of Labor
Statistics in a cooperative manner in the development of
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 elected representatives from
each of the 8 Federal regions of the Department of
Labor and with representatives of the States (by and
from among the State directors of labor market in-
formation, 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 102; 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 under which Congress has required the use
of labor market information;
‘‘(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 compatability among data; and
‘‘(5) participate in the development of the na-
tional annual plan.
‘‘(c) RULE OF CONSTRUCTION.—Nothing in this Act
shall be construed as limiting the State agency’s ability
to conduct additional data collection, analysis, and dis-
semination activities with State funds or with Federal
funds from sources other than this Act.’’.
TITLE II—YOUTH WORKFORCE
PREPARATION AND DEVELOP-
MENT 
CONSOLIDATION
GRANT
SEC. 201. PURPOSES.
It is the purpose of this title to provide States and
local communities maximum flexibility in designing
workforce preparation programs that—
(1) best suit the needs of in-school and at-risk
youth in their communities, as well as the skill needs
of State and local employers;
(2) promote strong connections between in-
school and at-risk programs, to ensure that youth
are prepared for good jobs and further education op-
portunities;
(3) promote the formation of business and edu-
cation partnerships that are dedicated to linking the
worlds of school and work; and
(4) promote high academic and occupational
standards.
SEC. 203. 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 the students are prepar-
ing to enter, including planning, management, fi-
nances, 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
achievement leading to competencies in a tech-prep
education program.
(4) The term ‘‘cooperative education’’ means a
method of instruction of vocational education for in-
dividuals who, through written cooperative arrange-
ments between the school and employers, receive in-
struction, including required academic courses and
related vocational instruction 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
student’s education and to his or her employability.
Work periods and school attendance may be on al-
ternate 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 individuals for em-
ployment at the entry level or to upgrade occupa-
tional competencies of those previously or presently
employed in any occupational field, and appropriate
counseling and guidance material.
(7) The term ‘‘displaced 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;
(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 this title;
or
(iv) is unemployed or underemployed and
is experiencing difficulty in obtaining any em-
ployment or suitable employment, as appro-
priate, or
(C) is described in subparagraph (A) or
(B) and is a criminal offender.
(8) Except as otherwise provided, the term ‘‘eli-
gible institution’’ means a local educational agency,
an area vocational education school, an intermediate
educational agency, a postsecondary educational in-
stitution, or a State corrections educational agency.
(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
skills preparation of individuals for jobs, or prepara-
tion 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
which the parent has either custody or joint
custody; or
(ii) is pregnant.
(12) The term ‘‘specific job training’’ means
training and education for skills required by the em-
ployer that provides the individual student with the
ability to obtain employment and to adapt to the
changing demands of the workplace.
(13) The term ‘‘tech-prep education program’’
means a combined secondary and postsecondary pro-
gram which—
(A) leads to an associate degree or 2-year
certificate;
(B) provides technical preparation in at
least 1 field of engineering technology, applied
science, mechanical, industrial, or practical art
or trade, or agriculture, health, or business;
(C) builds student competence in mathe-
matics, science, and communications (including
through applied academics) through a sequen-
tial course of study; and
(D) leads to placement in employment.
(14) The term ‘‘vocational education’’ means
organized educational programs offering a sequence
of courses which are directly related to the prepara-
tion of individuals in paid or unpaid employment in
current or emerging occupations requiring other
than a baccalaureate or advanced degree. Such pro-
grams shall include competency-based applied learn-
ing which contributes to an individual’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 con-
tributing member of society. Such term also includes
applied technology education.
Subtitle A—State Funding
SEC. 211. NATIONAL AND STATE FUNDING.
(a) NATIONAL PROGRAMS.—In each fiscal year, of
the amounts made available under section 3, the Secretary
shall reserve 20 percent or $25,000,000, whichever is less,
to carry out the provisions of subtitle D.
(b) STATE ALLOTMENT.—
(1) IN GENERAL.—In each fiscal year from the
amounts made available under section 3, the Sec-
retary shall allot to each State for each fiscal year
an amount which bears the same ratio as an average
of—
(A) the funding allotted in fiscal year 1995
under section 101 and 101A of the Carl D.
Perkins Vocational and Applied Technology
Education Act as such Act was in effect on the
day before the date of the enactment of this
Act; and
(B) 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.
(2) 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,
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 shall—
(1) make available not less than 90 percent to
local providers;
(2) use not more than 8 percent for State pro-
grams described in section 222; and
(3) use not more than 2 percent for administra-
tive purposes.
SEC. 212. WITHIN STATE ALLOCATION.
(a) IN GENERAL.—Subject to the provisions of sec-
tion 211, from the remainder of the allotment made to
each State from funds appropriated to carry out this title
for each fiscal year, the Governor shall allocate—
(1) to eligible institutions an amount equal to
not less than 40 percent of such amount for in-
school youth programs described in section 241;
(2) to local workforce development boards an
amount equal to not less than 40 percent of such
amount for at-risk youth programs described in sec-
tion 245; and
(3) the remainder of any amounts under this
subsection to carry out the purposes of paragraph
(1) or (2).
(b) MINIMUM GRANT AMOUNTS.—
(1) LOCAL EDUCATIONAL AGENCIES.—A local
educational agency or consortium of such agencies
that receives a subgrant from a State under this
subtitle for any fiscal year shall receive not less than
$15,000.
(2) POSTSECONDARY
INSTITUTIONS.—A post-
secondary institution or consortium of such institu-
tions that receives a subgrant from a State under
this subtitle 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 this subtitle for any fiscal year shall re-
ceive not less than $15,000.
(c) REALLOCATION.—
(1) IN GENERAL.—In any academic year that a
local workforce development board or an eligible in-
stitution does not expend all of the amounts it is al-
located for such year, such workforce development
board or eligible institution shall return any unex-
pended amounts to the State to be reallocated under
subsection (a).
(2) REALLOCATION
OF
AMOUNTS
RETURNED
LATE IN AN ACADEMIC YEAR.—In any academic year
in which amounts are returned to the State and the
State is unable to reallocate such amounts according
to such sections in time for such amounts to be ex-
pended in such academic year, the State may retain
such amounts to be distributed in combination with
amounts provided under this subtitle for the follow-
ing academic year.
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 submit to the Secretary of Education
a State plan that includes—
(1) a description of how the State will adopt,
develop, or assist local providers to adopt or develop
model curricula and innovative instructional meth-
odologies, to be used in the secondary, and where
possible, the elementary grades, and in programs for
at-risk youth that integrate academic, vocational,
and work-based learning, stressing applied and con-
textual learning, and promote career awareness;
(2) a description of how the State will expand
and improve career exploration and guidance coun-
seling in the elementary and secondary grades,
which may include linkages to career exploration and
guidance counseling and labor market information
services outside of the school system;
(3) a description of the strategy of the State for
integrating academic, vocational, and work-based
learning.
(4) a description of how the State will develop
a State process for issuing skill certificates that, to
the extent feasible, are consistent with the skill
standards certification systems endorsed by the Na-
tional Skill Standards Board; and
(5) a description of how the State will promote
the active involvement of business (including small-
and medium-sized businesses) in the planning, devel-
opment, and implementation of youth workforce de-
velopment programs authorized under this title.
SEC. 222. STATE PROGRAMS AND STATE ACTIVITIES.
(a) GENERAL AUTHORITY.—From amounts made
available to a State under section 211, each State shall
conduct State programs and activities.
(b) REQUIRED USES OF FUNDS.—The programs and
activities described in subsection (a) shall include an as-
sessment of programs conducted with assistance under
this title, including the development of—
(1) performance standards and measures for
such programs; and
(2) program improvement and accountability
with respect to such programs.
(c) ADDITIONAL USES OF FUNDS.—The programs
and activities described in subsection (a) may include—
(1) the support for tech-prep education;
(2) support for workforce preparation programs
for single parents, displaced homemakers, and single
pregnant women;
(3) support for corrections vocational education;
(4) 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 inservice
and preservice training of teachers in state-of-the-art
programs and techniques;
(5) development, dissemination, and field test-
ing of work-based learning curricula, especially—
(A) curricula that integrate vocational,
academic, and work-based methodologies; and
(B) curricula that provide a coherent se-
quence of courses through which academic and
occupational skills may be measured;
(6) leadership and instructional programs in
technology education;
(7) data collection;
(8) support for 1-stop career centers described
in section 108; and
(9) support for cooperative education programs.
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 224; or
(2) implemented exemplary workforce develop-
ment systems at the local level in accordance with
the purposes described in section 201.
SEC. 224. CORE STANDARDS, PERFORMANCE GOALS AND
MEASURES.
(a) GENERAL AUTHORITY.—
(1) STANDARDS AND MEASURES.—In addition
to the State’s goals under section 104, each State
receiving funds under this title shall have developed
or shall develop and implement a statewide system
of core standards and measures of performance for
workforce development programs serving youth in
coordination with other titles of this Act.
(2) STATEWIDE SYSTEM.—Each statewide sys-
tem, in accordance with the provisions of section
104, shall—
(A) establish or have established perform-
ance goals to define the level of performance to
be achieved by youth served under this title and
to evaluate the quality and effectiveness of serv-
ices and activities under this title;
(B) express such goals in an objective,
quantifiable, and measurable form;
(C) establish progress indicators that the
State and local recipients will use in measuring
or assessing progress toward achieving such
goals; and
(D) provide biennial reports to the public
and to the Secretary on the State’s progress in
achieving its goals.
(b) REQUIREMENTS.—Each system developed under
subsection (a) shall include—
(1) measures of academic and occupational
competency gains, including progress in the achieve-
ment of the following:
(c) PERFORMANCE GOALS
AND MEASURES.—The
Governor shall, acting through the collaborative process,
work to ensure that the performance goals are consistent
with challenging State academic standards, industry-rec-
ognized skill standards once established by the National
Skills Standard Board and the State goals established
under this title.
Subtitle 
C—Subgrants 
for 
In-
School and At-Risk Youth Pro-
grams
SEC. 231. PARTNERSHIP AGREEMENTS.
(a) PARTNERSHIP.—A local workforce development
board and an eligible institution that desires to receive a
subgrant from a State under this subtitle in any fiscal
year shall form a partnership.
(b) PLAN.—The partnership referred to in subsection
(a) shall, in collaboration, develop and submit to the Gov-
ernor through the State collaborative process a com-
prehensive workforce development plan for in-school and
at-risk youth. Such plan shall describe how the youth
workforce development system meets the requirements of
sections 241 and 245.
SEC. 232. DISTRIBUTION OF FUNDS.
(a) IN-SCHOOL PROGRAMS.—A State shall distribute
funds made available in a fiscal year as provided in section
212(a)(1) to carry out in-school youth programs described
in section 241 to eligible institutions.
(b) AT-RISK YOUTH PROGRAMS.—A State shall dis-
tribute funds made available in any fiscal year as provided
in section 212(a)(2) to local workforce development boards
to carry out at-risk youth programs described in section
245.
CHAPTER 1—IN-SCHOOL YOUTH
PROGRAMS
SEC. 241. USES OF FUNDS FOR IN-SCHOOL YOUTH PRO-
GRAMS.
(a) GENERAL AUTHORITY.—Each eligible institution
that receives a subgrant under this chapter shall use funds
provided under such grant to improve workforce develop-
ment and career-related education programs.
(b) REQUIREMENTS FOR USES OF FUNDS.—Funds
provided by a State pursuant to section 212(a)(1) shall
be used to provide in-school workforce development and
career-related education 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;
(3) involve employers in the design and imple-
mentation of programs, including the development of
curriculum;
(4) establish effective linkages between at-risk
youth programs, secondary and postsecondary edu-
cation;
(5) provide work-based learning experiences;
and
(6) provide career exploration, career awareness
and career guidance opportunities, beginning in the
earliest grades possible, but not later than grade 6.
(c) ADDITIONAL USES OF FUNDS.—In carrying out
the provisions of subsection (b), funds may be used by
schools for in-school youth activities such as—
(1) purchasing or upgrading of equipment, in-
cluding instructional aides 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 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) programs which train students for all as-
pects of industry in which job openings are projected
or available;
(8) comprehensive mentoring programs in insti-
tutions of higher education offering comprehensive
programs in teacher preparation which seek to fully
use the skills and work experience of individuals cur-
rently or formerly employed in business and industry
who are interested in becoming classroom instructors
and to meet the need of vocational educators who
wish to upgrade their teaching competencies; and
(9) local education/business partnerships for de-
veloping and implementing workforce preparation
systems.
CHAPTER 2—AT-RISK YOUTH PROGRAMS
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
workforce development and career-related education pro-
grams.
(b) REQUIREMENTS FOR USES OF FUNDS.—Funds
provided by a State pursuant to section 212(a)(2) shall
be used to provide workforce development and career-re-
lated education 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 students and at-risk youth achieve both aca-
demic and occupational competencies;
(3) involve employers in the design and imple-
mentation of programs, including the development of
curriculum;
(4) establish effective linkages between at-risk
youth programs, and secondary and postsecondary
education;
(5) provide work-based learning experiences;
(6) provide adult mentoring as a core compo-
nent of the program;
(7) provide an objective assessment of the aca-
demic and skill levels, and service needs of each par-
ticipant; and
(8) provide career exploration and counseling.
(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 high school;
(2) alternative high school services;
(3) training or education that is combined with
community and service learning opportunities;
(4) paid work experience, including limited in-
ternships, entry-employment experience programs,
and summer employment opportunities that are inte-
grated with the year-round school-based or alter-
native school-based program;
(5) drop-out prevention strategies and strate-
gies to encourage at-risk youth to reenter high
school or alternative high school programs;
(6) preemployment and work maturity skills
training;
(7) peer-centered activities encouraging respon-
sibility and other positive social behaviors during
non-school hours; and
(8) training-related supportive services.
SEC. 246. AT-RISK YOUTH PROVIDERS.
(a) ROLE OF WORKFORCE DEVELOPMENT BOARD.—
A workforce development board that receives funds under
this chapter shall not operate programs, but shall contract
with eligible providers of demonstrated effectiveness, or
with eligible providers utilizing service methodologies with
demonstrated effectiveness in serving the workforce prepa-
ration needs of at-risk youth, for the purpose of providing
services under this chapter.
(b) ELIGIBLE PROVIDERS.—For purposes of this
chapter, eligible providers may include—
(1) an ‘‘eligible institution’’ as defined under
section 212(d);
(2) a unit of local government;
(3) a private, nonprofit organization;
(4) a private, for profit entity;
(5) a designated 1-stop career center; or
(6) other organizations or entities of dem-
onstrated effectiveness and approved by the local
Board.
Subtitle D— National Programs
SEC. 251. RESEARCH ACTIVITIES.
(a) GENERAL AUTHORITY.—(1) In order to carry out
the purpose of this title, the Secretary may, directly or
through grants, contracts, or cooperative agreements,
carry out research, development, dissemination, dem-
onstration programs, evaluation, capacity-building, and
technical assistance activities with regard to the services
and activities carried out under this title.
(2) Activities carried out under this section may in-
clude support for occupational and career information sys-
tems.
(b) DISSEMINATION.—The Secretary shall establish
a system for disseminating information resulting from re-
search and development activities carried out under this
title.
SEC. 252. ANNUAL ASSESSMENT AND DATA COLLECTION OF
VOCATIONAL EDUCATION PROGRAMS.
(a) IN GENERAL.—(1) The Secretary through the Of-
fice of Educational Research and Improvement shall con-
duct an annual assessment of services and activities as-
sisted under this title, through studies and analyses con-
ducted 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 systems estab-
lished under this title;
(2) services and activities assisted under this
title succeed in preparing students, including stu-
dents who are members of special populations, for
postsecondary education, further learning, or entry
into high-skill, high-wage careers;
(3) students who participate in services and ac-
tivities supported under this title succeed in meeting
challenging State academic and industry-based skill
standards; and
(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 223, are effective.
SEC. 253. NATIONAL CENTER OR CENTERS FOR RESEARCH.
(a) GENERAL AUTHORITY.—(1) The Secretary may,
through a grant or contract, establish one or more na-
tional centers in the areas of applied research, develop-
ment, and dissemination. The Secretary shall consult with
States prior to establishing one or more such centers.
(2) Entities eligible to receive funds under this sec-
tion are institutions of higher education, other public or
private nonprofit organizations or agencies, and consortia
of such institutions, organizations, or agencies.
(3) The national center in existence on the date of
the enactment of the this Act shall continue to receive as-
sistance under this section in accordance with the terms
of its current award.
(b) ACTIVITIES.—(1) The applied research, develop-
ment, and dissemination activities carried out by the na-
tional center or centers shall include—
(A) activities that assist recipients of funds
under this title to meet the requirements of section
224; and
(B) such other activities as the Secretary deter-
mines to be appropriate to achieve the purpose of
this Act.
(2) The center or centers conducting the activities de-
scribed in paragraph (1) shall annually prepare a sum-
mary of key research findings of such center or centers
and shall submit copies of the summary to the Secretaries
of Education and Labor. The Secretary shall submit that
summary to the Committee on Labor and Human Re-
sources of the Senate, and the Committee on Economic
and Educational Opportunities of the House of Represent-
atives.
TITLE III—ADULT EMPLOYMENT
AND TRAINING CONSOLIDA-
TION GRANT
Subtitle A—Adult Employment and
Training Consolidation 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 private sector employ-
ment.
SEC. 302. 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 303.
SEC. 303. ALLOTMENT AMONG STATES.
(a) IN GENERAL.—Of the amount appropriated pur-
suant to section 4(b) 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
112
such activities in achieving the purposes of
this Act.
(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;
(ii) the performance standards estab-
lished by the Secretary; and
137
literacy programs, and long-term learning gains
of individuals in the State.
(B) Based on such goals and the perform-
ance measures described in section 424, estab-
lish, 
through 
such 
collaborative 
process,
progress indicators to be used to evaluate the
performance of local service providers receiving
a grant under section 422(a)(1).
(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 title shall ac-
complish the following:
(A) With respect to each local service pro-
vider receiving a grant under section 422(a)(1),
based on the goals and progress indicators es-
tablished under paragraph (1), measure the
performance measures described in section 424
and use the data produced by such measure-
ment to improve the quality of services provided
to program participants or service recipients.
(B) Beginning on the date that is 2 years
after the first date that a local service provider
150
(III) providers of services receiv-
ing assistance under this title;
(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) organized labor.
(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.