HR 1617 EAS
TITLE I—WORKFORCE DEVELOP-
MENT 
AND 
WORKFORCE
PREPARATION ACTIVITIES
Subtitle A—Statewide Workforce
Development Systems
CHAPTER 1—PROVISIONS FOR STATES
AND OTHER ENTITIES
SEC. 101. STATEWIDE WORKFORCE DEVELOPMENT SYS-
TEMS ESTABLISHED.
For program year 1998 and each subsequent program
year, the Secretary of Labor and the Secretary of Edu-
cation, acting jointly on the advice of the Federal Partner-
ship, shall make allotments under section 102 to States to
assist the States in paying for the cost of establishing and
carrying out activities through statewide workforce develop-
ment systems, in accordance with this subtitle.
SEC. 102. STATE ALLOTMENTS.
(a) IN GENERAL.—The Secretary of Labor and the
Secretary of Education, acting jointly on the advice of the
Federal Partnership, shall allot to each State with a State
plan approved under section 104 an amount equal to the
total of the amounts made available under subparagraphs
(A), (B), (C), and (D) of subsection (b)(2), adjusted in ac-
cordance with subsections (c) and (d).
(b) ALLOTMENTS BASED ON POPULATIONS.—
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(1) DEFINITIONS.—As used in this subsection:
(A) ADULT
RECIPIENT
OF
ASSISTANCE.—
The term ‘‘adult recipient of assistance’’ means
a recipient of assistance under a State program
funded under part A of title IV of the Social Se-
curity Act who is not a minor child (as defined
in section 402(c)(1) of such Act).
(B) INDIVIDUAL
IN
POVERTY.—The term
‘‘individual in poverty’’ means an individual
who—
(i) is not less than age 18;
(ii) is not more than age 64; and
(iii) is a member of a family (of 1 or
more members) with an income at or below
the poverty line.
(C) POVERTY
LINE.—The term ‘‘poverty
line’’ means the poverty line (as defined by the
Office of Management and Budget, and revised
annually in accordance with section 673(2) of
the Community Services Block Grant Act (42
U.S.C. 9902(2)) applicable to a family of the size
involved, using the most recent available data
provided by the Bureau of the Census, prior to
the program year for which the allotment is
made, and applying the definition of poverty
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used by the Bureau of the Census in compiling
the 1990 decennial census.
(2) CALCULATION.—Except as provided in sub-
sections (c) and (d), from the amount reserved under
section 124(b)(1), the Secretary of Labor and the Sec-
retary of Education, acting jointly on the advice of
the Federal Partnership—
(A) using funds equal to 60 percent of such
reserved amount, shall make available to each
State an amount that bears the same relation-
ship to such funds as the total number of indi-
viduals who are not less than age 15 and not
more than age 65 (as determined by the Federal
Partnership using the most recent available data
provided by the Bureau of the Census, prior to
the program year for which the allotment is
made) in the State bears to the total number of
such individuals in all States;
(B) using funds equal to 20 percent of such
reserved amount, shall make available to each
State an amount that bears the same relation-
ship to such funds as the total number of indi-
viduals in poverty in the State bears to the total
number of individuals in poverty in all States;
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(C) using funds equal to 10 percent of such
reserved amount, shall make available to each
State an amount that bears the same relation-
ship to such funds as the average number of un-
employed individuals (as determined by the Sec-
retary of Labor for the most recent 24-month pe-
riod for which data are available, prior to the
program year for which the allotment is made)
in the State bears to the average number of un-
employed individuals (as so determined) in all
States; and
(D) using funds equal to 10 percent of such
reserved amount, shall make available to each
State an amount that bears the same relation-
ship to such funds as the average monthly num-
ber of adult recipients of assistance (as deter-
mined by the Secretary of Health and Human
Services for the most recent 12-month period for
which data are available, prior to the program
year for which the allotment is made) in the
State bears to the average monthly number of
adult recipients of assistance (as so determined)
in all States.
(c) MINIMUM STATE ALLOTMENT.—
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(1) DEFINITION.—As used in this subsection, the
term ‘‘national average per capita payment’’, used
with respect to a program year, means the amount
obtained by dividing—
(A) the amount reserved under section
124(b)(1) for the program year; by
(B) the total number of individuals who are
not less than age 15 and not more than age 65
(as determined by the Federal Partnership using
the most recent available data provided by the
Bureau of the Census, prior to the program year
for which the allotment is made) in all States.
(2) MINIMUM ALLOTMENT.—Except as provided
in paragraph (3) and subsection (d), no State shall
receive an allotment under this section for a program
year in an amount that is less than 0.5 percent of the
amount reserved under section 124(b)(1) for the pro-
gram year.
(3) LIMITATION.—No State that receives an in-
crease in an allotment under this section for a pro-
gram year as a result of the application of paragraph
(2) shall receive an allotment under this section for
the program year in an amount that is more than the
product obtained by multiplying—
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(A) the total number of individuals who are
not less than age 15 and not more than age 65
(as determined by the Federal Partnership using
the most recent available data provided by the
Bureau of the Census, prior to the program year
for which the allotment is made) in the State;
and
(B) the product obtained by multiplying—
(i) 1.5; and
(ii) the national average per capita
payment for the program year.
(4) ADJUSTMENTS.—In order to increase the al-
lotments of States as a result of the application of
paragraph (2), the Secretary of Labor and the Sec-
retary of Education, acting jointly, shall reduce, on
a pro rata basis, the allotments of the other States
(except as provided in subsection (d)).
(d) OVERALL LIMITATIONS.—
(1) DEFINITION.—As used in this subsection, the
term ‘‘State percentage’’ means—
(A) with respect to the program year pre-
ceding program year 1998, the percentage that a
State receives of the financial assistance made
available to States to carry out covered activities
for the year ending on June 30, 1998; and
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(B) with respect to program year 1998 and
each subsequent program year, the percentage
that a State receives of the amount reserved
under section 124(b)(1) for the program year.
(2) LIMITATIONS.—No State shall receive an al-
lotment under this section for a program year in an
amount that would make the State percentage for the
program year—
(A) less than the product obtained by mul-
tiplying—
(i) 0.95; and
(ii) the State percentage of the State
for the preceding program year; or
(B) greater than the product obtained by
multiplying—
(i) 1.05; and
(ii) the State percentage of the State
for the preceding program year.
SEC. 103. STATE APPORTIONMENT BY ACTIVITY.
(a) ACTIVITIES.—From the sum of the funds made
available to a State through an allotment received under
section 102 and through funds received under section 6 of
the Wagner-Peyser Act (29 U.S.C. 49e) to carry out this
subtitle for a program year—
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(1) a portion equal to 25 percent of such sum
(which portion shall include the funds received by the
State under section 6 of the Wagner-Peyser Act) shall
be made available for workforce employment activities
or activities carried out under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.);
(2) a portion equal to 25 percent of such sum
shall be made available for workforce education ac-
tivities; and
(3) a portion (referred to in this title as the ‘‘flex
account’’) equal to 50 percent of such sum shall be
made available for flexible workforce activities.
(b) RECIPIENTS.—In making an allotment under sec-
tion 102 to a State, the Secretary of Labor and the Sec-
retary of Education, acting jointly, shall make a pay-
ment—
(1) to the Governor of the State for the portion
described in subsection (a)(1), and such part of the
flex account as the Governor may be eligible to re-
ceive, as determined under the State plan of the State
submitted under section 104; and
(2) to the State educational agency of the State
for the portion described in subsection (a)(2), and
such part of the flex account as the State educational
agency may be eligible to receive, as determined under
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the State plan of the State submitted under section
104.
SEC. 104. STATE PLANS.
(a) IN GENERAL.—For a State to be eligible to receive
an allotment under section 102, the Governor of the State
shall submit to the Federal Partnership, and obtain ap-
proval of, a single comprehensive State workforce develop-
ment plan (referred to in this section as a ‘‘State plan’’),
outlining a 3-year strategy for the statewide system of the
State.
(b) PARTS.—
(1) IN GENERAL.—The State plan shall contain
3 parts.
(2) STRATEGIC PLAN AND FLEXIBLE WORKFORCE
ACTIVITIES.—The first part of the State plan shall de-
scribe a strategic plan for the statewide system, in-
cluding the flexible workforce activities, and, if appro-
priate, economic development activities, that are de-
signed to meet the State goals and reach the State
benchmarks and are to be carried out with the allot-
ment. The Governor shall develop the first part of the
State plan, using procedures that are consistent with
the procedures described in subsection (d).
(3) WORKFORCE EMPLOYMENT ACTIVITIES.—The
second part of the State plan shall describe the
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workforce employment activities that are designed to
meet the State goals and reach the State benchmarks
and are to be carried out with the allotment. The
Governor shall develop the second part of the State
plan.
(4) WORKFORCE
EDUCATION
ACTIVITIES.—The
third part of the State plan shall describe the
workforce education activities that are designed to
meet the State goals and reach the State benchmarks
and are to be carried out with the allotment. The
State educational agency of the State shall develop the
third part of the State plan in collaboration with the
State postsecondary education agency and with rep-
resentatives of vocational education and community
colleges.
(5) STATE
OPTION
FOR
INTEGRATED
PLAN.—
Notwithstanding any other provision of this sub-
section, with the express written agreement of the
Governor, the State educational agency, the State
postsecondary education agency, and representatives
of vocational education and community colleges, of a
State, the Governor may develop all parts of the State
plan, using procedures that are consistent with the
procedures described in subsection (d). Nothing in this
section shall be construed to require a Governor who
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develops an integrated State plan under this para-
graph to duplicate any information contained in 1
part of the plan in another part of the plan.
(c) CONTENTS OF THE PLAN.—The State plan shall
include—
(1) with respect to the strategic plan for the
statewide system—
(A) information describing how the State
will identify the current and future workforce de-
velopment needs of the industry sectors most im-
portant to the economic competitiveness of the
State;
(B) information describing how the State
will identify the current and future workforce de-
velopment needs of all segments of the population
of the State;
(C) information identifying the State goals
and State benchmarks and how the goals and
benchmarks will make the statewide system rel-
evant and responsive to labor market and edu-
cation needs at the local level;
(D) information describing how the State
will coordinate workforce development activities
to meet the State goals and reach the State
benchmarks;
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(E) information describing the allocation
within the State of the funds made available
through the flex account for the State, and how
the flexible workforce activities, including school-
to-work activities, to be carried out with such
funds will be carried out to meet the State goals
and reach the State benchmarks;
(F) information identifying how the State
will obtain the active and continuous participa-
tion of business, industry, and labor in the devel-
opment and continuous improvement of the
statewide system;
(G) information identifying how the State
will obtain the active and continuous participa-
tion of local partnerships (or, where established,
local workforce development boards described in
section 118(b)) in the development and continu-
ous improvement of the statewide system;
(H) information identifying how any funds
that a State receives under this subtitle will be
leveraged with other public and private resources
to maximize the effectiveness of such resources for
all workforce development activities, and expand
the participation of business, industry, labor,
and individuals in the statewide system;
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(I) 
information 
identifying 
how 
the
workforce development activities to be carried out
with funds received through the allotment will be
coordinated with programs carried out by the
Veterans’ Employment and Training Service
with funds received under title 38, United States
Code, in order to meet the State goals and reach
the State benchmarks related to veterans;
(J) information describing how the State
will eliminate duplication in the administration
and delivery of services under this subtitle;
(K) information describing the process the
State will use to independently evaluate and
continuously improve the performance of the
statewide system, on a yearly basis, including
the development of specific performance indica-
tors to measure progress toward meeting the
State goals;
(L) an assurance that the funds made avail-
able under this subtitle will supplement and not
supplant other public funds expended to provide
workforce development activities;
(M) information identifying the steps that
the State will take over the 3 years covered by
the plan to establish common data collection and
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reporting requirements for workforce development
activities and vocational rehabilitation program
activities;
(N) with respect to economic development
activities, information—
(i) describing the activities to be car-
ried out with the funds made available
under this subtitle;
(ii) describing how the activities will
lead directly to increased earnings of
nonmanagerial employees in the State; and
(iii) describing whether the labor orga-
nization, 
if 
any, 
representing 
the
nonmanagerial employees supports the ac-
tivities;
(O) the description referred to in subsection
(d)(1); and
(P)(i) information demonstrating the sup-
port of individuals and entities described in sub-
section (d)(1) for the plan; or
(ii) in a case in which the Governor is un-
able to obtain the support of such individuals
and entities as provided in subsection (d)(2), the
comments referred to in subsection (d)(2)(B);
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(2) with respect to workforce employment activi-
ties, information—
(A)(i) identifying and designating substate
areas, including urban and rural areas, to which
funds received through the allotment will be dis-
tributed, which areas shall, to the extent feasible,
reflect local labor market areas; or
(ii) stating that the State will be treated as
a substate area for purposes of the application of
this subtitle, if the State receives an increase in
an allotment under section 102 for a program
year as a result of the application of section
102(c)(2);
(B) describing the basic features of one-stop
delivery of core services described in section
106(a)(2) in the State, including information re-
garding—
(i) the strategy of the State for develop-
ing fully operational one-stop delivery of
core services described in section 106(a)(2);
(ii) the time frame for achieving the
strategy;
(iii) the estimated cost of achieving the
strategy;
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(iv) the steps that the State will take
over the 3 years covered by the plan to pro-
vide individuals with access to one-stop de-
livery of core services described in section
106(a)(2);
(v) the steps that the State will take
over the 3 years covered by the plan to en-
sure that all publicly funded labor exchange
services described in section 106(a)(2)(B),
and all such services described in the Wag-
ner-Peyser Act (29 U.S.C. 49 et seq.), are
provided through the one-stop career center
system of the State;
(vi) the steps that the State will take
over the 3 years covered by the plan to pro-
vide information through the one-stop deliv-
ery to individuals on the quality of
workforce employment activities, workforce
education activities, and vocational reha-
bilitation 
program 
activities, 
provided
through the statewide system;
(vii) the steps that the State will take
over the 3 years covered by the plan to link
services provided through the one-stop deliv-
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ery with services provided through State
welfare agencies; and
(viii) in a case in which the State
chooses to use vouchers to deliver workforce
employment activities, the steps that the
State will take over the 3 years covered by
the plan to comply with the requirements in
section 106(a)(9) and the information re-
quired in such section;
(C) identifying performance indicators that
relate to the State goals, and to the State bench-
marks, concerning workforce employment activi-
ties;
(D) describing the workforce employment
activities to be carried out with funds received
through the allotment;
(E) describing the steps that the State will
take over the 3 years covered by the plan to es-
tablish a statewide comprehensive labor market
and occupational information system described
in section 183(c) that will be utilized by all the
providers of one-stop delivery of core services de-
scribed in section 106(a)(2), providers of other
workforce employment activities, and providers
of workforce education activities, in the State;
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(F) describing the steps that the State will
take over the 3 years covered by the plan to es-
tablish a job placement accountability system de-
scribed in section 121(d); and
(G) describing the process the State will use
to approve all providers of workforce employment
activities through the statewide system; and
(3) with respect to workforce education activities,
information—
(A) describing how funds received through
the allotment will be allocated among—
(i) secondary school vocational edu-
cation, or postsecondary and adult voca-
tional education, or both; and
(ii) adult education;
(B) identifying performance indicators that
relate to the State goals, and to the State bench-
marks, concerning workforce education activities;
(C) describing the workforce education ac-
tivities that will be carried out with funds re-
ceived through the allotment;
(D) describing how the State will address
the adult education needs of the State;
(E) 
describing 
how 
the 
State 
will
disaggregate data relating to at-risk youth in
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order to adequately measure the progress of at-
risk youth toward accomplishing the results
measured by the State goals and the State bench-
marks;
(F) describing how the State will adequately
address the needs of both at-risk youth who are
in school, and out-of-school youth, in alternative
education programs that teach to the same chal-
lenging academic, occupational, and skill pro-
ficiencies as are provided for in-school youth;
(G) describing how the workforce education
activities described in the State plan and the
State allocation of funds received through the al-
lotment for such activities are an integral part
of comprehensive efforts of the State to improve
education for all students and adults;
(H) describing how the State will annually
evaluate the effectiveness of the State plan with
respect to workforce education activities;
(I) describing how the State will address the
professional development needs of the State with
respect to workforce education activities;
(J) describing how the State will provide
local educational agencies in the State with tech-
nical assistance;
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(K) describing how the State will assess the
progress of the State in implementing student
performance measures; and
(L) describing how the State will encourage
the participation of parents of secondary school
students involved in workforce education activi-
ties carried out under this subtitle in State and
local decisions regarding workforce education ac-
tivities carried out under this subtitle.
(d) PROCEDURE
FOR DEVELOPMENT
OF PART
OF
PLAN RELATING TO STRATEGIC PLAN.—
(1) DESCRIPTION OF DEVELOPMENT.—The part
of the State plan relating to the strategic plan shall
include a description of the manner in which—
(A) the Governor;
(B) the State educational agency;
(C) representatives of business and indus-
try, including representatives of key industry
sectors, and of small, medium-size, and large em-
ployers, in the State;
(D) representatives of labor and workers;
(E) local elected officials from throughout
the State;
(F) the State agency officials responsible for
vocational education;
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(G) the State agency officials responsible for
postsecondary education and community colleges;
(H) the State agency officials responsible
for adult education;
(I) the State agency officials responsible for
vocational rehabilitation;
(J) such other State agency officials, includ-
ing officials responsible for economic develop-
ment and employment, as the Governor may des-
ignate;
(K) the representative of the Veterans’ Em-
ployment and Training Service assigned to the
State under section 4103 of title 38, United
States Code; and
(L) other appropriate officials, including
members of the State workforce development
board described in section 105, if the State has
established such a board;
collaborated in the development of such part of the
plan.
(2) FAILURE TO OBTAIN SUPPORT.—If, after a
reasonable effort, the Governor is unable to obtain the
support of the individuals and entities described in
paragraph (1) for the strategic plan the Governor
shall—
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(A) provide such individuals and entities
with copies of the strategic plan;
(B) allow such individuals and entities to
submit to the Governor, not later than the end
of the 30-day period beginning on the date on
which the Governor provides such individuals
and entities with copies of such plan under sub-
paragraph (A), comments on such plan; and
(C) include any such comments in such
plan.
(e) APPROVAL.—The Secretary of Labor and the Sec-
retary of Education, acting jointly on the advice of the Fed-
eral Partnership, shall approve a State plan if—
(1) the Federal Partnership determines that the
plan contains the information described in subsection
(c);
(2) the Federal Partnership determines that the
State has prepared the plan in accordance with the
requirements of this section, including the require-
ments relating to development of any part of the plan;
and
(3) the State benchmarks for the State have been
negotiated and approved in accordance with section
121(c).
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(f) NO ENTITLEMENT TO A SERVICE.—Nothing in this
Act shall be construed to provide any individual with an
entitlement to a service provided under this Act.
SEC. 105. STATE WORKFORCE DEVELOPMENT BOARDS.
(a) ESTABLISHMENT.—A Governor of a State that re-
ceives an allotment under section 102 may establish a State
workforce development board—
(1) on which a majority of the members are rep-
resentatives of business and industry;
(2) on which not less than 25 percent of the
members shall be representatives of labor, workers,
and community-based organizations;
(3) that shall include representatives of veterans;
(4) that shall include a representative of the
State educational agency and a representative from
the State agency responsible for vocational rehabilita-
tion;
(5) that may include any other individual or en-
tity that participates in the collaboration described in
section 104(d)(1); and
(6) that may include any other individual or en-
tity the Governor may designate.
(b) CHAIRPERSON.—The State workforce development
board shall select a chairperson from among the members
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of the board who are representatives of business and indus-
try.
(c) FUNCTIONS.—The functions of the State workforce
development board shall include—
(1) advising the Governor on the development of
the statewide system, the State plan described in sec-
tion 104, and the State goals and State benchmarks;
(2) assisting in the development of specific per-
formance indicators to measure progress toward meet-
ing the State goals and reaching the State bench-
marks and providing guidance on how such progress
may be improved;
(3) serving as a link between business, industry,
labor, and the statewide system;
(4) assisting the Governor in preparing the an-
nual report to the Federal Partnership regarding
progress in reaching the State benchmarks, as de-
scribed in section 121(a);
(5) receiving and commenting on the State plan
developed under section 101 of the Rehabilitation Act
of 1973 (29 U.S.C. 721);
(6) assisting the Governor in developing the
statewide comprehensive labor market and occupa-
tional information system described in section 183(c)
to provide information that will be utilized by job-
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seekers, employers, providers of one-stop delivery of
core services described in section 106(a)(2), providers
of other workforce employment activities, and provid-
ers of workforce education activities, in the State; and
(7) assisting in the monitoring and continuous
improvement of the performance of the statewide sys-
tem, including evaluation of the effectiveness of
workforce development activities funded under this
subtitle.
SEC. 106. USE OF FUNDS.
(a) WORKFORCE EMPLOYMENT ACTIVITIES.—
(1) IN GENERAL.—Funds made available to a
State under this subtitle to carry out workforce em-
ployment activities through a statewide system—
(A) shall be used to carry out the activities
described in paragraphs (2), (3), and (4); and
(B) may be used to carry out the activities
described in paragraphs (5), (6), (7), and (8),
including providing activities described in para-
graph (6) through vouchers described in para-
graph (9).
(2) ONE-STOP DELIVERY OF CORE SERVICES.—
(A) ACCESS.—The State shall use a portion
of the funds described in paragraph (1) to estab-
lish a means of providing access to the statewide
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system through core services described in sub-
paragraph (B) available—
(i) through multiple, connected access
points, linked electronically or otherwise;
(ii) through a network that assures
participants that such core services will be
available regardless of where the partici-
pants initially enter the statewide system;
(iii) at not less than 1 physical loca-
tion in each substate area of the State; or
(iv) through some combination of the
options described in clauses (i), (ii), and
(iii).
(B) CORE SERVICES.—The core services re-
ferred to in subparagraph (A) shall, at a mini-
mum, include—
(i) outreach, intake, and orientation to
the information and other services available
through one-stop delivery of core services de-
scribed in this subparagraph;
(ii) initial assessment of skill levels,
aptitudes, abilities, and supportive service
needs;
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(iii) job search and placement assist-
ance and, where appropriate, career coun-
seling;
(iv) customized screening and referral
of qualified applicants to employment;
(v) provision of accurate information
relating to local labor market conditions,
including employment profiles of growth in-
dustries and occupations within a substate
area, the educational and skills require-
ments of jobs in the industries and occupa-
tions, and the earnings potential of the jobs;
(vi) provision of accurate information
relating to the quality and availability of
other 
workforce 
employment 
activities,
workforce education activities, and voca-
tional rehabilitation program activities;
(vii) provision of information regard-
ing how the substate area is performing on
the State benchmarks;
(viii) provision of initial eligibility in-
formation on forms of public financial as-
sistance that may be available in order to
enable persons to participate in workforce
employment activities, workforce education
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activities, or vocational rehabilitation pro-
gram activities; and
(ix) referral to other appropriate
workforce employment activities, workforce
education activities, and vocational reha-
bilitation employment activities.
(3) LABOR MARKET AND OCCUPATIONAL INFOR-
MATION SYSTEM.—The State shall use a portion of the
funds described in paragraph (1) to establish a state-
wide comprehensive labor market and occupational
information system described in section 183(c).
(4) JOB PLACEMENT ACCOUNTABILITY SYSTEM.—
The State shall use a portion of the funds described
in paragraph (1) to establish a job placement ac-
countability system described in section 121(d).
(5) PERMISSIBLE
ONE-STOP
DELIVERY
ACTIVI-
TIES.—The State may provide, through one-stop de-
livery—
(A) 
co-location 
of 
services 
related 
to
workforce development activities, such as unem-
ployment insurance, vocational rehabilitation
program activities, welfare assistance, veterans’
employment services, or other public assistance;
(B) intensive services for participants who
are unable to obtain employment through the
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core services described in paragraph (2)(B), as
determined by the State; and
(C) dissemination to employers of informa-
tion on activities carried out through the state-
wide system.
(6) OTHER PERMISSIBLE ACTIVITIES.—The State
may use a portion of the funds described in para-
graph (1) to provide services through the statewide
system that may include—
(A) on-the-job training;
(B) occupational skills training;
(C) entrepreneurial training;
(D) training to develop work habits to help
individuals obtain and retain employment;
(E) customized training conducted with a
commitment by an employer or group of employ-
ers to employ an individual after successful com-
pletion of the training;
(F) rapid response assistance for dislocated
workers;
(G) skill upgrading and retraining for per-
sons not in the workforce;
(H) preemployment and work maturity
skills training for youth;
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(I) connecting activities that organize con-
sortia of small- and medium-size businesses to
provide work-based learning opportunities for
youth participants in school-to-work programs;
(J) programs for adults that combine work-
place training with related instruction;
(K) services to assist individuals in attain-
ing certificates of mastery with respect to indus-
try-based skill standards;
(L) case management services;
(M) supportive services, such as transpor-
tation and financial assistance, that enable indi-
viduals to participate in the statewide system;
and
(N) followup services for participants who
are placed in unsubsidized employment.
(7) STAFF DEVELOPMENT AND TRAINING.—The
State may use a portion of the funds described in
paragraph (1) for the development and training of
staff of providers of one-stop delivery of core services
described in paragraph (2), including development
and training relating to principles of quality man-
agement.
(8) INCENTIVE GRANT AWARDS.—The State may
use a portion of the funds described in paragraph (1)
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to award incentive grants to substate areas that reach
or exceed the State benchmarks established under sec-
tion 121(c), with an emphasis on benchmarks estab-
lished under section 121(c)(3). A substate area that
receives such a grant may use the funds made avail-
able through the grant to carry out any workforce de-
velopment activities authorized under this subtitle.
(9) VOUCHERS.—
(A) IN GENERAL.—A State may deliver, to
persons age 18 or older who are unable to obtain
Pell Grants under title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et seq.), some
or all of the workforce employment activities de-
scribed in paragraph (6) that are provided
under this subtitle through a system of vouchers
administered through the one-stop delivery of
core services described in paragraph (2) in the
State.
(B) ELIGIBILITY REQUIREMENTS.—
(i) IN GENERAL.—A State that chooses
to deliver the activities described in sub-
paragraph (A) through vouchers shall indi-
cate in the State plan described in section
104 the criteria that will be used to deter-
mine—
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(I) which workforce employment
activities described in paragraph (6)
will be delivered through the voucher
system;
(II) eligibility requirements for
participants to receive the vouchers
and the amount of funds that partici-
pants will be able to access through the
voucher system; and
(III) which employment, training,
and education providers are eligible to
receive payment through the vouchers.
(ii) CONSIDERATIONS.—In establishing
State criteria for service providers eligible
to receive payment through the vouchers
under clause (i)(III), the State shall take
into 
account 
industry-recognized 
skills
standards promoted by the National Skills
Standards Board.
(C) ACCOUNTABILITY
REQUIREMENTS.—A
State that chooses to deliver the activities de-
scribed in paragraph (6) through vouchers shall
indicate in the State plan—
(i) information concerning how the
State will utilize the statewide comprehen-
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sive labor market and occupational infor-
mation system described in section 183(c)
and the job placement accountability system
established under section 121(d) to provide
timely and accurate information to partici-
pants about the performance of eligible em-
ployment, training, and education provid-
ers;
(ii) other information about the per-
formance of eligible providers of services
that the State believes is necessary for par-
ticipants receiving the vouchers to make in-
formed career choices; and
(iii) the timeframe in which the infor-
mation developed under clauses (i) and (ii)
will be widely available through the one-
stop delivery of core services described in
paragraph (2) in the State.
(D) INFORMATION.—A State that deter-
mines that a need exists to train persons age 18
or older through activities authorized under
paragraph (6) shall indicate in the State plan
described in section 104 for the State, or the an-
nual report described in section 121(a) for the
State, the extent, if any, to which the State will
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use the authority of this paragraph to deliver
some or all of such activities through a system
of vouchers, including indicating the information
and timeframes required under subparagraph
(C).
(b) WORKFORCE EDUCATION ACTIVITIES.—The State
educational agency shall use the funds made available to
the State educational agency under this subtitle for
workforce education activities to carry out, through the
statewide system, activities that include—
(1) integrating academic and vocational edu-
cation;
(2) linking secondary education (as determined
under State law) and postsecondary education, in-
cluding implementing tech-prep programs;
(3) providing career guidance and counseling for
students at the earliest possible age, including the
provision of career awareness, exploration, planning,
and guidance information to students and their par-
ents that is, to the extent possible, in a language and
form that the students and their parents understand;
(4) providing literacy and basic education serv-
ices for adults and out-of-school youth, including
adults and out-of-school youth in correctional institu-
tions;
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(5) providing programs for adults and out-of-
school youth to complete their secondary education;
(6) expanding, improving, and modernizing
quality vocational education programs; and
(7) improving access to quality vocational edu-
cation programs for at-risk youth.
(c) FISCAL REQUIREMENTS FOR WORKFORCE EDU-
CATION ACTIVITIES.—
(1) SUPPLEMENT NOT SUPPLANT.—Funds made
available under this subtitle for workforce education
activities shall supplement, and may not supplant,
other public funds expended to carry out workforce
education activities.
(2) MAINTENANCE OF EFFORT.—
(A) DETERMINATION.—No payments shall
be made under this subtitle for any program
year to a State for workforce education activities
unless the Federal Partnership determines that
the fiscal effort per student or the aggregate ex-
penditures of such State for workforce education
for the program year preceding the program year
for which the determination is made, equaled or
exceeded such effort or expenditures for workforce
education for the second program year preceding
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the fiscal year for which the determination is
made.
(B) WAIVER.—The Federal Partnership
may waive the requirements of this section (with
respect to not more than 5 percent of expendi-
tures by any State educational agency) for 1
program year only, on making a determination
that such waiver would be equitable due to excep-
tional or uncontrollable circumstances affecting
the ability of the applicant to meet such require-
ments, such as a natural disaster or an unfore-
seen and precipitous decline in financial re-
sources. No level of funding permitted under such
a waiver may be used as the basis for computing
the fiscal effort or aggregate expenditures re-
quired under this section for years subsequent to
the year covered by such waiver. The fiscal effort
or aggregate expenditures for the subsequent
years shall be computed on the basis of the level
of funding that would, but for such waiver, have
been required.
(d) FLEXIBLE WORKFORCE ACTIVITIES.—
(1) CORE FLEXIBLE WORKFORCE ACTIVITIES.—
The State shall use a portion of the funds made avail-
able to the State under this subtitle through the flex
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account to carry out school-to-work activities through
the statewide system, except that any State that re-
ceived a grant under subtitle B of title II of the
School-to-Work Opportunities Act of 1994 (20 U.S.C.
6141 et seq.) shall use such portion to support the
continued development of the statewide School-to-
Work Opportunities system of the State through the
continuation of activities that are carried out in ac-
cordance with the terms of such grant.
(2) PERMISSIBLE FLEXIBLE WORKFORCE ACTIVI-
TIES.—The State may use a portion of the funds
made available to the State under this subtitle
through the flex account—
(A) to carry out workforce employment ac-
tivities through the statewide system; and
(B) to carry out workforce education activi-
ties through the statewide system.
(e) ECONOMIC DEVELOPMENT ACTIVITIES.—In the
case of a State that meets the requirements of section 118(c),
the State may use not more than 50 percent of the funds
made available to the State under this subtitle through the
flex account to supplement other funds provided by the
State or private sector—
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(1) to provide services to upgrade the skills of
employed workers who are at risk of being perma-
nently laid off;
(2) to retrain employed workers in new tech-
nologies and work processes that will facilitate the
conversion and restructuring of businesses to assist in
the avoidance of closures, or layoffs of 50 or more peo-
ple, at a plant, facility, or enterprise;
(3) to provide customized assessments of the
skills of workers and an analysis of the skill needs of
employers;
(4) to assist consortia of small- and medium-size
employers in upgrading the skills of their workforces;
(5) to provide productivity and quality improve-
ment training programs for the workforces of small-
and medium-size employers;
(6) to provide recognition and use of voluntary
industry-developed skills standards by employers,
schools, and training institutions;
(7) to carry out training activities in companies
that are developing modernization plans in conjunc-
tion with State industrial extension service offices;
and
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(8) to provide on-site, industry-specific training
programs supportive of industrial and economic de-
velopment;
through the statewide system.
(f) LIMITATIONS.—
(1) WAGES.—No funds provided under this sub-
title shall be used to pay the wages of incumbent
workers during their participation in economic devel-
opment activities provided through the statewide sys-
tem.
(2) RELOCATION.—No funds provided under this
subtitle shall be used or proposed for use to encourage
or induce the relocation, of a business or part of a
business, that results in a loss of employment for any
employee of such business at the original location.
(3) TRAINING AND ASSESSMENTS FOLLOWING RE-
LOCATION.—No funds provided under this subtitle
shall be used for customized or skill training, on-the-
job training, or company-specific assessments of job
applicants or workers, for any business or part of a
business, that has relocated, until 120 days after the
date on which such business commences operations at
the new location, if the relocation of such business or
part of a business, results in a loss of employment for
any worker of such business at the original location.
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(4) DISPLACEMENT.—
(A) IN GENERAL.—No currently employed
worker shall be displaced (including partial dis-
placement such as a reduction in hours of non-
overtime work, wages, or employment benefits)
by any participant in an activity carried out
under this subtitle.
(B) EXISTING CONTRACT FOR SERVICES OR
COLLECTIVE BARGAINING AGREEMENT.—No ac-
tivity carried out under this subtitle shall im-
pair an existing contract for services or a collec-
tive bargaining agreement.
(C) LAYOFF OR TERMINATION.—No partici-
pant shall be employed or job opening filled for
an activity carried out under this subtitle—
(i) when any other individual is on
layoff from the same or a substantially
equivalent job; or
(ii) when the employer has terminated
the employment of any regular employee or
otherwise reduced the workforce of the em-
ployer with the intention of filling the va-
cancy so created by hiring a participant
whose wages are subsidized under this sub-
title.
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(5) HEALTH AND SAFETY.—Health and safety
standards established under Federal and State law
otherwise applicable to working conditions of employ-
ees shall be equally applicable to working conditions
of participants engaged in work-related activities
pursuant to this subtitle. Appropriate workers’ com-
pensation shall be provided to the participants on the
same basis as the compensation is provided to other
individuals in the State in similar employment (as
determined under regulations issued by the Secretary
of Labor).
(6) 
EMPLOYMENT
CONDITIONS.—Participants
employed or assigned to work in positions subsidized
under this subtitle shall be provided benefits and
working conditions at the same level and to the same
extent as other employees working a similar length of
time and doing the same type of work.
(7) NONDISCRIMINATION.—Except as otherwise
permitted in law, no individual may be excluded
from participation in workforce development activi-
ties carried out under this subtitle because of race,
color, religion, sex, national origin, disability, or age.
(8) GRIEVANCE PROCEDURE.—The State shall es-
tablish and maintain (pursuant to regulations issued
by the Secretary of Labor) a grievance procedure for
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resolving complaints alleging violations of any of the
prohibitions or requirements described in this sub-
section. Such procedure shall include an opportunity
for a hearing and shall be completed not later than
the 90th day after the date of the submission of a
complaint, by which day the complainant shall be
provided a written decision by the State. A decision
of the State under such procedure, or a failure of the
State to issue a decision within the 90-day period,
may be appealed to the Secretary of Labor, who shall
investigate the allegations contained in the complaint
and make a determination not later than 60 days
after the date of the appeal as to whether a violation
of a prohibition or requirement of this subsection has
occurred.
(9) REMEDIES.—
(A) IN GENERAL.—Except as provided in
subparagraphs (B) and (C), remedies that may
be imposed under this paragraph for violations
of the prohibitions and requirements described in
this subsection shall be limited to—
(i) suspension or termination of pay-
ments under this subtitle;
(ii) prohibition of placement of any
participant, for an appropriate period of
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time, with an employer that has violated
this subsection; and
(iii) appropriate equitable relief (other
than backpay).
(B) EXCEPTIONS.—
(i) REPAYMENT.—If the Secretary of
Labor determines that a violation of para-
graph (2) or (3) has occurred, the Secretary
of Labor shall require the State or substate
recipient of funds that has violated para-
graph (2) or (3), respectively, to repay to
the United States an amount equal to the
amount expended in violation of paragraph
(2) or (3), respectively.
(ii) ADDITIONAL REMEDIES.—In addi-
tion to the remedies available under sub-
paragraph (A), remedies available under
this paragraph for violations of paragraph
(4) may include—
(I) reinstatement of the displaced
employee to the position held by such
employee prior to displacement;
(II) payment of lost wages and
benefits of the employee; and
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(III) reestablishment of other rel-
evant terms, conditions, and privileges
of employment of the employee.
(C) OTHER LAWS OR CONTRACTS.—Nothing
in this paragraph shall be construed to prohibit
a complainant from pursuing a remedy author-
ized under another Federal, State, or local law
or a contract or collective bargaining agreement
for a violation of the prohibitions or require-
ments described in this subsection.
(g) LIMITATIONS ON PARTICIPANTS.—
(1) DIPLOMA OR EQUIVALENT.—
(A) IN GENERAL.—No individual may par-
ticipate in workforce employment activities de-
scribed in subparagraph (A), (B), (C), (E), (G),
(J), or (K) of subsection (a)(6) until the individ-
ual has obtained a secondary school diploma or
its recognized equivalent, or is enrolled in a pro-
gram or course of study to obtain a secondary
school diploma or its recognized equivalent.
(B) EXCEPTION.—Nothing in subparagraph
(A) shall prevent participation in workforce em-
ployment activities described under subpara-
graph (A), (B), (C), (E), (G), (J), or (K) of sub-
section (a)(6) by individuals who, after testing
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and in the judgment of medical, psychiatric,
academic, or other appropriate professionals,
lack the requisite capacity to complete success-
fully a course of study that would lead to a sec-
ondary school diploma or its recognized equiva-
lent.
(2) SERVICES.—
(A) REFERRAL.—If an individual who has
not obtained a secondary school diploma or its
recognized equivalent applies to participate in
workforce employment activities described under
subparagraph (A), (B), (C), (E), (G), (J), or (K)
of subsection (a)(6), such individual shall be re-
ferred to State approved adult education services
that provide instruction designed to help such
individual obtain a secondary school diploma or
its recognized equivalent.
(B) STATE PROVISION OF SERVICES.—Not-
withstanding any other provision of this title, a
State may use funds made available under this
subtitle for workforce employment activities to
provide State approved adult education services
that provide instruction designed to help indi-
viduals obtain a secondary school diploma or its
recognized equivalent, to individuals who—
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(i) are seeking to participate in
workforce employment activities described
under subparagraph (A), (B), (C), (E), (G),
(J), or (K) of subsection (a)(6); and
(ii) are otherwise unable to obtain such
services.
(h) LAWS AND PROCEDURES APPLICABLE TO EXPENDI-
TURE OF STATE FUNDS.—Any funds received by a State
under this subtitle shall be expended only in accordance
with the laws and procedures applicable to expenditures of
the State’s own revenues, subject to the terms and conditions
required under this subtitle, particularly section 104, sec-
tion 105, and chapter 2.
(i) LIMITATIONS ON PARTICIPANTS.—
(1) FINDING.—Congress finds that—
(A) the possession, distribution, and use of
drugs by participants in workforce employment
activities should not be tolerated, and that such
use prevents participants from making full use
of the benefits extended through such activities at
the expense of taxpayers; and
(B) applicants and participants should be
tested for illegal drug use, in order to maximize
the training and assistance provided under this
Act.
180
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shall consider the last application or plan, as appropriate,
submitted by the entity for funding of the covered activity.
SEC. 175. INTERIM ADMINISTRATION OF SCHOOL-TO-WORK
PROGRAMS.
(a) IN GENERAL.—Any provision of the School-to-
Work Opportunities Act of 1994 (20 U.S.C. 6101 et seq.)
that grants authority to the Secretary of Labor or the Sec-
retary of Education shall be considered to grant the author-
ity to the Federal Partnership.
(b) EFFECTIVE DATE.—Subsection (a) shall take effect
on October 1, 1996.
SEC. 176. INTERIM AUTHORIZATIONS OF APPROPRIATIONS.
(a) CARL D. PERKINS VOCATIONAL
AND APPLIED
TECHNOLOGY EDUCATION ACT.—
(1) IN GENERAL.—Section 3(a) of the Carl D.
Perkins Vocational and Applied Technology Edu-
cation Act (20 U.S.C. 2302(a)) is amended by strik-
ing ‘‘for each of the fiscal years’’ and all that follows
through ‘‘1995’’ and inserting ‘‘for each of fiscal years
1992 through 1998’’.
(2) RESEARCH.—Section 404(d) of such Act (20
U.S.C. 2404(d)) is amended by striking ‘‘for each of
the fiscal years’’ and all that follows through ‘‘1995’’
and inserting ‘‘for each of fiscal years 1992 through
1998’’.