Union Calendar No. 58
105TH CONGRESS
1ST SESSION
H. R. 1385
[Report No. 105–93]
A BILL
To consolidate, coordinate, and improve employ-
ment, training, literacy, and vocational rehabilita-
tion programs in the United States, and for
other purposes.
MAY 8, 1997
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 58
105TH CONGRESS
1ST SESSION
H. R. 1385
[Report No. 105–93]
To consolidate, coordinate, and improve employment, training, literacy, and
vocational rehabilitation programs in the United States, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 17, 1997
Mr. MCKEON (for himself, Mr. GOODLING, and Mr. KILDEE) introduced the
following bill; which was referred to the Committee on Education and the
Workforce
MAY 8, 1997
Additional sponsors: Mr. BARRETT of Nebraska, Mr. PETERSON of
Pennsylvania, Mr. RIGGS, and Mr. FATTAH
MAY 8, 1997
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on April 17, 1997]
A BILL
To consolidate, coordinate, and improve employment, train-
ing, literacy, and vocational rehabilitation programs in
the United States, 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 ‘‘Employment, Training,
and Literacy Enhancement Act of 1997’’.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) DIVISIONS.—This Act is organized into two divi-
sions as follows:
(1) Division A—Employment, Training, and
Literacy Programs.
(2) Division B—Vocational Rehabilitation Pro-
grams.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
DIVISION A—EMPLOYMENT, TRAINING, AND LITERACY
PROGRAMS
TITLE I—AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM
REQUIREMENTS
Subtitle A—General Provisions
Sec. 101. Statement of purpose.
Sec. 102. Authorization of appropriations.
Sec. 103. Definitions.
Subtitle B—State and Local Administrative Provisions
Sec. 111. State administrative provisions.
Sec. 112. Local administrative provisions.
Subtitle B—Job Corps
Sec. 411. Statement of purpose.
Sec. 412. Individuals eligible for the Job Corps.
Sec. 413. Screening and selection of applicants; general provisions.
Sec. 414. Job Corps centers.
Sec. 415. Standards of conduct.
Sec. 416. Counseling and job placement.
Sec. 417. Experimental and developmental projects and coordination with other
programs.
Subtitle C—National Activities
Sec. 421. Research, demonstration, evaluation, and capacity building.
Sec. 422. Nontraditional employment demonstration program.
Subtitle D—Repealers
Sec. 451. Repealers.
TITLE V—AMENDMENTS TO ADULT EDUCATION PROGRAMS
Sec. 501. Repeal of Jobs for Employable Dependent Individuals Incentive Bonus
Program.
Sec. 502. Amendment to Adult Education Act.
Sec. 503. Repeal of National Literacy Act of 1991.
Sec. 504. Conforming amendments.
TITLE VI—MISCELLANEOUS PROVISIONS
Sec. 601. Repealers.
Sec. 602. Conforming amendments.
TITLE VII—AMENDMENTS TO STATE HUMAN RESOURCE
INVESTMENT COUNCIL
Sec. 701. Amendments to Council.
Sec. 702. Transfer of Council.
Sec. 703. Conforming amendments.
TITLE VIII—AMENDMENTS TO WAGNER-PEYSER ACT
Sec. 801. Definitions.
Sec. 802. Functions.
Sec. 803. Designation of State agencies.
Sec. 804. Appropriations.
Sec. 805. Disposition of allotted funds.
Sec. 806. State plans.
Sec. 807. Federal advisory council.
Sec. 808. Regulations.
Sec. 809. Effective date.
TITLE IX—TECHNICAL AND CONFORMING AMENDMENTS
Subtitle A—Amendments to the Job Training Partnership Act
Sec. 901. Short title; table of contents.
Sec. 902. Definitions.
Sec. 903. Amendments to title I.
Sec. 904. Amendments to title IV.
Sec. 905. Amendments to title VI.
Sec. 906. Clarification.
Subtitle B—Amendments to Other Acts
Sec. 911. Amendments to other Acts.
TITLE X—EFFECTIVE DATE AND TRANSITION PROVISIONS
Sec. 1001. Effective date.
Sec. 1002. Transition provisions.
DIVISION B—VOCATIONAL REHABILITATION PROGRAMS
TITLE XXI—AMENDMENTS TO GENERAL PROVISIONS
Sec. 2101. Rehabilitation Services Administration.
Sec. 2102. Definitions.
Sec. 2103. Reports.
TITLE XXII—AMENDMENTS TO VOCATIONAL REHABILITATION
SERVICES
Subtitle A—General Provisions
Sec. 2201. Declaration of policy; authorization of appropriations.
Sec. 2202. State plans.
Sec. 2203. Scope of vocational rehabilitation services.
Sec. 2204. State Rehabilitation Advisory Council.
Sec. 2205. Evaluation standards and performance indicators.
Sec. 2206. Monitoring and review.
Subtitle B—Basic Vocational Rehabilitation Services
Sec. 2211. State allotments.
Sec. 2212. Payments to States.
Sec. 2213. Client assistance program.
TITLE XXIII—AMENDMENTS TO RESEARCH AND TRAINING
Sec. 2221. Authorization of appropriations.
Sec. 2222. National Institute on Disability and Rehabilitation Research.
TITLE XXIV—AMENDMENTS TO TRAINING AND DEMONSTRATION
PROJECTS
Subtitle A—Training Programs and Community Rehabilitation Programs
Sec. 2231. Training.
Sec. 2232. Repealers.
Sec. 2233. Authorization of appropriations.
Subtitle B—Special Projects and Supplementary Services
Sec. 2241. Special demonstration programs.
Sec. 2242. Migratory workers.
Sec. 2243. Repealers.
Sec. 2244. Special recreational programs.
TITLE XXV—AMENDMENTS TO NATIONAL COUNCIL ON DISABILITY
Sec. 2251. Authorization of appropriations.
TITLE XXVI—AMENDMENTS TO RIGHTS AND ADVOCACY
Sec. 2261. Employment of individuals with disabilities.
Sec. 2262. Architectural and Transportation Barriers Compliance Board.
Sec. 2263. Protection and advocacy of individual rights.
TITLE XXVII—AMENDMENTS TO EMPLOYMENT OPPORTUNITIES FOR
INDIVIDUALS WITH DISABILITIES
Sec. 2271. Authorization of appropriations.
Sec. 2272. Repealers.
TITLE XXVIII—AMENDMENTS TO INDEPENDENT LIVING SERVICES
AND CENTERS FOR INDEPENDENT LIVING
Sec. 2281. Authorization of appropriations.
Sec. 2282. Program authorization for centers for independent living.
TITLE XXIX—AMENDMENTS TO SPECIAL DEMONSTRATIONS AND
TRAINING PROJECTS
Sec. 2291. Authorization of appropriations.
Sec. 2292. Demonstration activities.
Sec. 2293. Training activities.
TITLE XXX—AMENDMENTS TO THE HELEN KELLER NATIONAL
CENTER ACT
Sec. 2295. Authorization of appropriations.
TITLE XXXI—EFFECTIVE DATE
Sec. 2297. Effective date.
DIVISION 
A—EMPLOYMENT,
TRAINING, 
AND 
LITERACY
PROGRAMS
TITLE I—AMENDMENTS TO GEN-
ERAL PROVISIONS AND PRO-
GRAM REQUIREMENTS
Subtitle A—General Provisions
SEC. 101. STATEMENT OF PURPOSE.
Section 2 of the Job Training Partnership Act (29
U.S.C. 1501) is amended to read as follows:
‘‘SEC. 2. STATEMENT OF PURPOSE.
‘‘The purpose of this Act is to transform the current
array of Federal employment, training, and adult edu-
cation and literacy programs from a collection of frag-
mented and duplicative categorical programs into high
quality, coherent, and accountable State and local systems
that are designed—
‘‘(1) to provide high quality training for today
and for the 21st century;
‘‘(2) to empower individuals to choose occupa-
tions and training programs, based on accurate and
up-to-date information, that will develop more fully
their academic, occupational, and literacy skills, lead-
ing to productive employment and economic self-suffi-
ciency, and reduction in welfare dependency;
‘‘(3) to provide resources and authority to States
and local communities and increase ease of access to
high quality employment, training, and literacy pro-
grams;
‘‘(4) to provide adults with the adult education
services they require to participate fully in society;
‘‘(5) to meet the needs of employers in the United
States to be competitive; and
‘‘(6) to ensure an adequate return on the invest-
ment of funds in employment, training, and literacy
programs through strong program accountability.’’.
SEC. 102. AUTHORIZATION OF APPROPRIATIONS.
Section 3 of the Job Training Partnership Act (29
U.S.C. 1502) is amended to read as follows:
‘‘SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be appro-
priated the following amounts for the following purposes (in
addition to amounts otherwise available for such purposes):
‘‘(1) TITLE II.—Such sums as may be necessary
for each of the fiscal years 1999 through 2003 to
carry out title II.
‘‘(2) TITLE III.—(A) Such sums as may be nec-
essary for each of the fiscal years 1999 through 2003
to carry out section 312(a)(1).
‘‘(B) Such sums as may be necessary for each of
the fiscal years 1999 through 2003 to carry out sec-
tion 312(a)(2).
‘‘(3) PARTS A, C, D, AND E OF TITLE IV.—Subject
to subsection (b), such sums as may be necessary for
each of the fiscal years 1999 through 2003 to carry
out parts A, C, D, and E of title IV.
‘‘(4) PART B OF TITLE IV.—Such sums as may
be necessary for each of the fiscal years 1999 through
2003 to carry out part B of title IV.
‘‘(b) RESERVATIONS.—Of the amount appropriated
under subsection (a)(3) for a fiscal year—
‘‘(1) not less than $70,000,000 shall be reserved
for carrying out section 401;
‘‘(2) not less than $70,000,000 shall be reserved
for carrying out section 402; and
‘‘(3) the remainder shall be reserved for carrying
out parts C, D, and E of title IV.
‘‘(c) REALLOTMENT.—
‘‘(1) IN GENERAL.—The Secretary of Labor shall,
in accordance with this subsection, reallot to eligible
States amounts appropriated for programs authorized
under titles II and title III of this Act that are avail-
able for reallotment.
‘‘(2) AMOUNT.—The amount available for real-
lotment is equal to the amount by which the unobli-
gated balance of the State allotment under title II or
title III, respectively, at the end of the program year
prior to the program year for which the determina-
tion under this paragraph is made exceeds 15 percent
of such allotment for the prior program year.
‘‘(3) REALLOTMENT.—In making reallotments to
eligible States of amounts available pursuant to para-
graph (2) for a program year, the Secretary shall
allot to each eligible State an amount based on the
relative amount allotted to such State under title II
or title III, respectively, for the prior program year
ties’ means the activities authorized under section 314
of the Adult Education and Family Literacy Act.’’;
(2) by striking paragraph (2);
(3) by inserting after paragraph (1) the follow-
ing:
‘‘(2) APPROPRIATE SECRETARY.—The term ‘ap-
propriate Secretary’ means—
‘‘(A) the Secretary of Labor, with respect to
programs authorized under titles II, III, and IV
of this Act; and
‘‘(B) the Secretary of Education, with re-
spect to programs authorized under the Adult
Education and Family Literacy Act.’’;
(4) in paragraph (3), by striking ‘‘under parts
A and C of title II’’ and inserting ‘‘under title II and
title III’’;
(5) in paragraph (4) to read as follows:
‘‘(4) CHIEF ELECTED OFFICIAL.—The term ‘chief
elected official’ means the chief elected executive officer
of a unit of general local government in a workforce
development area.’’;
(6) in paragraph (5) to read as follows:
‘‘(5) COMMUNITY-BASED
ORGANIZATION.—The
term ‘community-based organization’ means a private
nonprofit organization that is representative of a
community or a significant segment of a community
and that has demonstrated the ability, or that can
demonstrate a capacity, to effectively administer a
program under this Act.’’;
(7) by striking paragraph (6);
(8) by inserting after paragraph (5) the follow-
ing:
‘‘(6) DISLOCATED
WORKER.—The term ‘dis-
located worker’ means an individual who—
‘‘(A)(i) has been terminated or laid off, or
who has received a notice of termination or lay-
off, from employment;
‘‘(ii) is eligible for or has exhausted entitle-
ment to unemployment compensation; and
‘‘(iii) is unlikely to return to a previous in-
dustry or occupation;
‘‘(B) has been terminated or laid off, or has
received a notice of termination or layoff, from
employment as a result of any permanent closure
of, or and substantial layoff at, a plant, facility,
or enterprise;
‘‘(C) was self-employed (including a farmer
and a rancher) but is unemployed as a result of
general economic conditions in the community
in which the individual resides or because of nat-
ural disasters;
‘‘(D) is a displaced homemaker; or
‘‘(E) has become unemployed as a result of
a Federal action that limits the use of, or re-
stricts access to, a marine natural resource.’’;
(9) in paragraph (10) to read as follows:
‘‘(10) INDIVIDUAL WITH A DISABILITY.—(A) The
term ‘individual with a disability’ means an individ-
ual with any disability (as defined in section 3 of the
Americans with Disabilities Act of 1990 (42 U.S.C.
12102)).
‘‘(B) The term ‘individuals with disabilities’
means more than one individual with a disability.’’;
(10) by striking paragraph (11);
(11) in paragraph (14), by striking ‘‘section
521(22) of the Carl D. Perkins Vocational Education
Act’’ and inserting ‘‘section 14101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
8801)’’;
(12) in paragraph (18), by striking all after ‘‘in-
stitution of higher education’’ and inserting ‘‘(as such
term is defined in section 481 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1088)) that continues
to meet the eligibility and certification requirements
under title IV of such Act (20 U.S.C. 1070 et seq.).’’;
(13) by striking paragraph (19);
(14) in paragraph (21) to read as follows:
‘‘(21) SECRETARIES.—The term ‘Secretaries’
means the Secretary of Labor and the Secretary of
Education.’’;
(15) in paragraph (22) to read as follows:
‘‘(22) STATE.—The term ‘State’ means each of
the several States of the United States, the District of
Columbia, and the Commonwealth of Puerto Rico.’’;
(16) in paragraph (24) to read as follows:
‘‘(24) SUPPORTIVE SERVICES.—The term ‘sup-
portive services’ means services such as transpor-
tation, child care, dependent care, and needs-based
payments, that are necessary to enable an individual
to participate in programs authorized under title II
and title III of this Act, consistent with the provisions
of such titles.’’;
(17) in paragraph (27) to read as follows:
‘‘(27) VETERAN.—The term ‘veteran’ has the
meaning given such term in section 101(2) of title 38,
United States Code.’’;
(18) by striking paragraph (35);
(19) by striking paragraph (36);
(20) in paragraph (37), by striking ‘‘post-termi-
nation services authorized under sections 204(c)(4)
and 264(d)(5) and follow up services authorized
under section 253(d)’’ and inserting ‘‘follow up serv-
ices authorized under this Act’’; and
(21) by adding at the end the following:
‘‘(41) EMPLOYMENT, TRAINING
AND
LITERACY
PROGRAMS.—The term ‘employment, training and lit-
eracy programs’ means programs authorized under ti-
tles II and III of this Act and the Adult Education
and Family Literacy Act.
‘‘(42) ENGLISH LITERACY PROGRAM.—The term
‘English literacy program’ means a program of in-
struction designed to help individuals of limited Eng-
lish proficiency achieve full competence in the English
language.
‘‘(43) FAMILY
LITERACY
SERVICES.—The term
‘family literacy services’ means services that are of
sufficient intensity in terms of hours, and of sufficient
duration, to make sustainable changes in a family
and that integrate all of the following activities:
‘‘(A) Interactive literacy activities between
parents and their children.
‘‘(B) Training for parents on how to be the
primary teacher for their children and full part-
ners in the education of their children.
‘‘(C) Parent literacy training that leads to
economic self-sufficiency.
‘‘(D) An age-appropriate education to pre-
pare children for success in school and life expe-
riences.
‘‘(44) FULL
SERVICE
ELIGIBLE
PROVIDERS.—
The term ‘full service eligible provider’ means a pro-
vider designated under section 123(c).
‘‘(45) HUMAN RESOURCE PROGRAMS.—The term
‘human resource programs’ means programs identi-
fied under section 103.
‘‘(46) INDIVIDUAL
OF
LIMITED
ENGLISH
PRO-
FICIENCY.—The term ‘individual of limited English
proficiency’ means an individual—
‘‘(A) who has limited ability in speaking,
reading, or writing the English language; and
‘‘(B)(i) whose native language is a language
other than English; or
‘‘(ii) who lives in a family or community
environment where a language other that Eng-
lish is the dominant language.
‘‘(A) provides knowledge or skills essential
to the full and adequate performance of the job;
‘‘(B) provides reimbursement to employers
of up to 50 percent of the wage rate of the par-
ticipant, for the extraordinary costs of providing
the training and additional supervision related
to the training; and
‘‘(C) is limited in duration as appropriate
to the occupation for which the participant is
being trained, taking into account the content of
the training, the prior work experience of the
participant, and the service strategy of the par-
ticipant, as appropriate.
‘‘(52) OUTLYING
AREA.—The term ‘outlying
area’ means the United States Virgin Islands, Guam,
American Samoa, the Commonwealth of the Northern
Mariana Islands, the Republic of the Marshall Is-
lands, the Federated States of Micronesia, and the Re-
public of Palau.
‘‘(53) RAPID RESPONSE ASSISTANCE.—The term
‘rapid response assistance’ means assistance provided
by a State, or by an entity designated by a State,
with funds provided by the State under section
313(a)(2) in the case of a permanent closure or mass
layoff at a plant, facility, or enterprise, or a natural
or other disaster, that results in mass job dislocation,
in order to assist dislocated workers in obtaining re-
employment as soon as possible, with services includ-
ing—
‘‘(A) the establishment of onsite contact
with employers and employee representatives—
‘‘(i) immediately after the State is no-
tified of a current or projected permanent
closure or mass layoff; or
‘‘(ii) in the case of a disaster, imme-
diately after the State is made aware of
mass job dislocation as a result of such dis-
aster;
‘‘(B) the provision of information and ac-
cess to available employment and training ac-
tivities;
‘‘(C) assistance in establishing voluntary
labor management committees with the ability to
devise and implement a strategy for assessing the
employment and training needs of dislocated
workers and obtaining services to meet those
needs;
‘‘(D) the provision of emergency assistance
adapted to the particular closure, layoff, or dis-
aster; and
‘‘(E) the provision of assistance to the local
community in developing a coordinated response
and in obtaining access to State economic devel-
opment assistance.
‘‘(54) REPRESENTATIVES OF EMPLOYEES.—For
purposes of section 122, the term ‘representatives of
employees’ means—
‘‘(A) individuals who have been elected by
organizations, associations, or a network of simi-
lar institutions to represent the economic inter-
ests of employees at a significant segment of
workplaces located in, or adjacent to, the local
workforce development area; or
‘‘(B) individuals from organizations, asso-
ciations, or a network of similar institutions,
with expertise to represent, or experience rep-
resenting, the interests of employees with respect
to the job training priorities in the local
workforce development area.
‘‘(55) SKILL
GRANT.—The term ‘skill grant’
means a voucher or credit issued to a participant
under section 314(c)(6)(A) for the purchase of train-
ing services from eligible providers of such services.
‘‘(56) STATE
ADJUSTED
BENCHMARKS.—The
term ‘state adjusted benchmarks’ means a state’s ex-
pected levels of performance established pursuant to
153(a).
‘‘(57) STATE
BENCHMARK.—The term ‘State
benchmark’ means the benchmarks established by the
state pursuant to section 152(a).
‘‘(58) STATEWIDE SYSTEM.—The term ‘statewide
system’ means a statewide employment and training
and literacy system that includes programs author-
ized under titles II and III of this Act and the Adult
Education and Family Literacy Act.’’.
Subtitle B—State and Local
Administrative Provisions
SEC. 111. STATE ADMINISTRATIVE PROVISIONS.
Part A of title I of the Job Training Partnership Act
(29 U.S.C. 1511 et seq.) is amended to read as follows:
‘‘PART A—STATE ADMINISTRATIVE PROVISIONS
‘‘SEC. 101. STATE PLAN.
‘‘(a) IN GENERAL.—For a State to be eligible to receive
an allotment under title II or III, the Adult Education and
Family Literacy Act, or section 6 of the Wagner-Peyser Act
(29 U.S.C. 49e), the Governor of the State shall submit to
Secretaries, for consideration by the appropriate Secretary,
a single comprehensive State plan that provides a 3-year
strategy and policy guidance with respect to the Statewide
system, and programs authorized under the Wagner-Peyser
Act (29 U.S.C. 49 et seq.), operated in the State. Such plan
shall meet the requirements of this section and section 102.
‘‘(b) CONTENTS.—The State plan shall include the fol-
lowing:
‘‘(1) A description of the collaborative process de-
scribed in section 102, including a description of the
manner in which the individuals and entities in-
volved in such process collaborated in the development
of the plan and will continue to collaborate in carry-
ing out the functions described in section 102(c).
‘‘(2) Information describing—
‘‘(A) the needs of the State with regard to
current and projected demands for workers, by
occupation;
‘‘(B) the skills and economic development
needs of the State; and
‘‘(C) the type and availability of employ-
ment and training services in the State.
‘‘(3)(A) A description of the State long-term
goals for the Statewide system.
‘‘(B) An identification of the benchmarks that
the State will use to measure its progress toward
meeting the goals described in subparagraph (A)
based on the core indicators of performance described
in section 154.
‘‘(C) A description of how the goals and bench-
marks will ensure continuous improvement of the
Statewide system and make such system relevant and
responsive to labor market, skill, and literacy needs at
the State and local levels.
‘‘(4) An identification of local workforce develop-
ment areas in the State, including a description of
the process used for the designation of such areas.
‘‘(5) An identification of criteria to be used by
local chief elected officials for the appointment of
members of local workforce development boards, con-
sistent with the provisions of section 122.
‘‘(6)(A) A description of measures that will be
taken by the State to assure coordination and consist-
ency and avoid duplication among employment,
training, and literacy programs receiving assistance
under this Act, and, at a minimum, programs carried
out under the Wagner-Peyser Act (29 U.S.C. 49 et
seq.), the Rehabilitation Act of 1973 (20 U.S.C. 701
et seq.), title I of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, and
programs carried out by the Veterans’ Employment
and Training Service with funds received under sec-
tion 4103 of title 38, United States Code, including
a description of common data collection and report-
ing processes.
‘‘(B) Information identifying how any funds
that a State receives through the allotments made
under this Act will be leveraged with other private
and public resources (including funds made available
to the State under the Wagner-Peyser Act (29 U.S.C.
49 et seq.)) and other human resource programs to
maximize the effectiveness of such resources, and ex-
pand the participation of business, industry, employ-
ees, and individuals in the Statewide system.
‘‘(7) A description of the process used by the
State to provide an opportunity for public comment,
and input into development of the plan, prior to sub-
mission of the plan.
‘‘(8) A description of the within-State allocation
formulas developed through the collaborative process
pursuant to sections 204(b)(2) and 313(b), through
which the State will distribute funds to local
workforce development areas, including—
‘‘(A) a description of how the individuals
and entities involved in the collaborative process,
including representatives of the State legislature,
determined the factors for such formulas;
‘‘(B) a description of how such individuals
and entities consulted with chief elected officials
in local workforce development areas throughout
the State in determining such formulas; and
‘‘(C) assurances that such formulas will re-
sult 
in 
funds 
being 
distributed 
equitably
throughout the State, that no one factor in such
formulas receive disproportionate weighting, and
that such formulas protect local workforce devel-
opment areas from significant shifts in funding
from year to year.
‘‘(9) With respect to employment and training
programs for disadvantaged youth authorized under
title II, information describing the State’s strategy for
providing comprehensive services to disadvantaged
youth, particularly those youth who are recognized as
having significant barriers to employment, and a de-
scription of how the State intends to use its State re-
serve funds (described in section 204(a)) to serve
areas in the State with high concentrations of dis-
advantaged youth.
‘‘(10) With respect to employment and training
programs for adults and dislocated workers author-
ized under title III, information—
‘‘(A) describing the employment and train-
ing activities that will be carried out with the
funds received by the State through the allot-
ments made under section 312, including a de-
scription of how the State will provide rapid re-
sponse assistance to dislocated workers from
funds reserved under section 313(a)(2);
‘‘(B) describing the strategy of the State
(including the timeframe for such strategy) for
development of a fully operational statewide full
service employment and training delivery system
as described in section 123, including the steps
that the State will take over the 3 years covered
by the plan, working with local workforce devel-
opment boards, to provide information to indi-
viduals through the full service employment and
training delivery system on the quality of em-
ployment, training, and literacy services;
‘‘(C) describing the procedures the State
will use, working with local workforce develop-
ment boards, to identify eligible providers of
training services described in section 314(c), as
required under section 124; and
‘‘(D) describing how the State will serve the
employment and training needs of dislocated
workers (including displaced homemakers), eco-
nomically disadvantaged individuals (including
welfare recipients), individuals training for non-
traditional employment, and other individuals
with multiple barriers to employment (including
older workers and individuals with disabilities).
‘‘(11) With respect to adult education and lit-
eracy activities authorized under part A of the Adult
Education and Family Literacy Act—
‘‘(A) a description of the adult education
and literacy activities that will be carried out
with any funds received such part;
‘‘(B) a description of the assessment that
will be made to determine the adult education
and family literacy needs of the State;
‘‘(C) a description of how such activities
will be integrated with other adult education, ca-
reer development, and employment and training
activities in the State or outlying area of the eli-
gible agency;
‘‘(D) a description of how the eligible agen-
cy annually will evaluate the effectiveness of the
adult education and literacy activities that are
carried out with any funds received under such
part;
‘‘(E) an assurance that any funds received
under such part will not be expended for any
purpose other than the activities described in sec-
tions 313 and 314 of the Adult Education and
Family Literacy Act;
‘‘(F) an assurance that the eligible agency
will expend any funds received under such part
only in a manner consistent with the fiscal re-
quirements in section 315 of such Act;
‘‘(G) an assurance that the eligible agency
will award grants under such part to providers
who offer flexible schedules and necessary support
services (such as child care and transportation)
to enable individuals, including individuals with
disabilities or other special needs to participate
in adult education and literacy activities; and
‘‘(H) a description of the steps the State
will take to ensure direct and equitable access, as
stipulated in section 313(c)(2) of the Adult Edu-
cation and Family Literacy Act.
‘‘(12) With respect to programs authorized under
the Wagner-Peyser Act (29 U.S.C. 49 et seq.), the
plan information required under section 8 of such
Act.
‘‘(c) PLAN SUBMISSION.—A State plan submitted to
the Secretaries under this section shall be approved by the
appropriate Secretary unless such Secretary determines
that such plan does not comply with the specific provisions
of this Act.
‘‘(d) SPECIAL RULES.—
‘‘(1) GOVERNOR.—The Governor of a State shall
have final authority to determine the content of the
portion of the State plan described in paragraphs (1)
through (10) and paragraph (12) of subsection (b).
‘‘(2) ELIGIBLE AGENCY.—The eligible agency for
adult education and literacy in a State shall have
final authority to determine the content of the portion
of the State plan described in paragraph (11) of sub-
section (b).
‘‘(e) MODIFICATIONS TO PLAN.—A State may submit
modifications to a State plan in accordance with the re-
quirements of this section and section 102 as necessary dur-
ing the 3-year period covered by the plan.
‘‘SEC. 102. COLLABORATIVE PROCESS.
‘‘(a) IN GENERAL.—A State shall use a collaborative
process in the development of the State plan described in
section 101 and in carrying out the functions described
under subsection (c). Such collaborative process shall be car-
ried out by, at a minimum, the following individuals and
entities:
‘‘(1) the Governor;
‘‘(2) representatives, appointed by the Governor,
of—
‘‘(A) business and industry;
‘‘(B) local chief elected officials (represent-
ing both cities and counties, where appropriate);
‘‘(C) local educational agencies (including
adult education and literacy providers);
‘‘(D) postsecondary institutions (including
community and technical colleges);
‘‘(E) organizations representing individuals
served by programs authorized under this Act
(including community-based organizations);
‘‘(F) organizations serving individuals par-
ticipating in programs authorized under this Act
and the Adult Education and Family Literacy
Act;
‘‘(G) parents; and
‘‘(H) employees (which may include labor);
‘‘(3) the lead State agency official or officials
for—
‘‘(A) employment security;
‘‘(B) job training;
‘‘(C) the State educational agency;
‘‘(D) the eligible agency for vocational edu-
cation;
‘‘(E) the eligible agency for adult education
and literacy;
‘‘(F) the State agency responsible for post-
secondary education;
‘‘(G) the State agency responsible for wel-
fare; and
‘‘(H) the State agency responsible for voca-
tional rehabilitation, and where applicable, the
State agency providing vocational rehabilitation
program activities for the blind;
‘‘(4) such other State agency officials, including
officials responsible for economic development, as the
Governor may designate;
‘‘(5) representatives of the State legislature; and
‘‘(6) the representative of the Veterans’ Employ-
ment and Training Service assigned to the State
under section 4103 of title 38, United States Code.
‘‘(b) CLARIFICATION.—For purposes of complying with
subsection (a), a State may use any State collaborative
process (including a council, board, State Human Resource
Investment Council established under section 103, or a
similar entity) that meets or is conformed to meet the re-
quirements of such subsection.
‘‘(c) ADDITIONAL FUNCTIONS OF THE COLLABORATIVE
PROCESS.—In addition to development of the State plan,
the individuals and entities described in subsection (a) shall
collaborate in—
‘‘(1) the designation of local workforce areas as
required under section 121;
‘‘(2) the development of allocation formulas for
the distribution of funds to local workforce develop-
ment areas for programs authorized under title II
and title III;
‘‘(3) the development of the State goals and
benchmarks as required under part C of this title, in-
cluding the continued updating of such goals and
benchmarks;
‘‘(4) the provision of management guidance and
review for all programs in the State, including review
of the operation of programs conducted in each local
workforce development area, and the availability, re-
sponsiveness, and adequacy of State services, and
make recommendations to the Governor, the State leg-
islature, appropriate chief elected officials, local
workforce development boards, and service providers
throughout the State regarding the findings of such
review;
‘‘(5) the continued development of linkages be-
tween employment, training, literacy, and other
human resource and workforce preparation programs
in the State;
‘‘(6) comment at least once annually on the
measures taken pursuant to section 113(b)(14) of the
Carl D. Perkins Vocational Education Act; and
‘‘(7) review plans of all State agencies providing
employment, training, literacy, and related services,
and provide comments and recommendations to the
Governor, the State legislature, the State agencies,
and the appropriate federal agencies on the relevancy
and effectiveness of employment, training, literacy,
and related delivery systems in the State.’’.
SEC. 112. LOCAL ADMINISTRATIVE PROVISIONS.
Part B of title I of the Job Training Partnership Act
(29 U.S.C. 1531 et seq.) is amended by striking sections
121 through 123 and inserting the following:
‘‘SEC. 121. LOCAL WORKFORCE DEVELOPMENT AREAS.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), a State that desires to receive a grant under title II
or title III shall, through the collaborative process estab-
lished under section 102 and after consultation with local
chief elected officials, and after consideration of comments
received through the public comment process as described
in section 101(b)(7) of the State plan, designate local
workforce development areas within the State that are con-
sistent with labor market areas, or a substantial portion
of a labor market area, and that take into consideration
the following:
‘‘(1) Units of general local government.
‘‘(2) Geographic areas served by local edu-
cational agencies and intermediate educational agen-
cies.
‘‘(3) Geographic areas served by postsecondary
institutions and area vocational education schools.
‘‘(4) Service delivery areas established under sec-
tion 101 of this Act (as such section was in effect on
the day before the date of the enactment of the Em-
ployment, Training, and Literacy Enhancement Act
of 1997).
‘‘(5) The distance that individuals will need to
travel to receive services.
‘‘(b) SMALL STATES.—Any State determined to be eli-
gible to receive a minimum allotment under section
203(b)(2)(D) or paragraph (1)(B)(iv) or paragraph
(2)(B)(iv) of section 312(b) may designate itself, through
the collaborative process established pursuant to section 102,
and after consultation with local chief elected officials, and
consideration of comments received through the public com-
ment process described in section 101(b)(7) of the State
plan, as a single State workforce development area for pur-
poses of this Act.
‘‘SEC. 122. LOCAL WORKFORCE DEVELOPMENT BOARDS.
‘‘(a) ESTABLISHMENT.—There shall be established in
each local workforce development area of a State, and cer-
tified by the Governor of the State, a local workforce devel-
opment board (hereinafter referred to as the ‘local board’),
reflecting business and community interests in employment,
training, and other workforce preparation activities.
‘‘(b) MEMBERSHIP.—
‘‘(1) STATE
CRITERIA.—The Governor of the
State, through the collaborative process described in
section 102, shall establish criteria for use by local
chief elected officials in the local workforce develop-
ment areas for appointment of members of the local
boards in such local areas in accordance with the re-
quirements of paragraph (2).
‘‘(2) COMPOSITION.—Such criteria shall require
at a minimum, that the membership of each local
board consist of—
‘‘(A) a majority of members who are rep-
resentatives of business and industry in the local
public who may include program participants,
parents, individuals with disabilities, older
workers, veterans, or organizations serving such
individuals, as nominated to the board by re-
gional or local agencies, institutions, or organi-
zations representing such individuals or entities;
and
‘‘(D) representatives of local welfare and
economic development agencies.
‘‘(3) CHAIRPERSON.—The local board shall elect
a chairperson from among the members of the board.
‘‘(c) APPOINTMENT AND CERTIFICATION OF BOARD.—
‘‘(1) APPOINTMENT OF BOARD MEMBERS AND AS-
SIGNMENT OF RESPONSIBILITIES.—
‘‘(A) IN GENERAL.—The chief elected official
in a local workforce development area is author-
ized to appoint the members of the local board
for such area, in accordance with the State cri-
teria established under subsection (b).
‘‘(B) MULTIPLE UNITS OF LOCAL GOVERN-
MENT IN AREA.—
‘‘(i) IN GENERAL.—In a case in which
a local workforce development area includes
more than 1 unit of general local govern-
ment, the chief elected officials of such units
may execute an agreement that specifies the
respective roles of the individual chief elect-
ed officials—
‘‘(I) in the appointment of the
members of the local board from the in-
dividuals nominated or recommended
to be such members in accordance with
the criteria established under sub-
section (b); and
‘‘(II) in carrying out any other
responsibilities assigned to such offi-
cials.
‘‘(ii) LACK OF AGREEMENT.—If, after
a reasonable effort, the chief elected officials
are unable to reach agreement as provided
under clause (i), the Governor may appoint
the members of the local board from indi-
viduals so nominated or recommended.
‘‘(2) CERTIFICATION.—
‘‘(A) IN
GENERAL.—The Governor is au-
thorized to biennially certify 1 local board for
each local workforce development area in the
State.
‘‘(B) CRITERIA.—Such certification shall be
based on factors including the criteria established
under subsection (b) and, for a second or subse-
quent certification, the extent to which the local
board has ensured that employment and training
activities and disadvantaged youth activities
carried out in the local workforce development
area have met expected levels of performance
with respect to the local benchmarks negotiated
pursuant to subsection (d)(6)(A).
‘‘(C) 
FAILURE
TO
ACHIEVE
CERTIFI-
CATION.—Failure of a local board to achieve cer-
tification shall result in reappointment and cer-
tification of another local board for the local
workforce development area pursuant to the
process described in paragraph (1) and this
paragraph.
‘‘(3) DECERTIFICATION.—
‘‘(A) FISCAL
NONCOMPLIANCE.—Notwith-
standing paragraph (2), the Governor may de-
certify a local board if it is determined as a re-
sult of financial and compliance audits that
there is a substantial violation of a specific re-
quirement under this Act and corrective action
has not been taken, in accordance with section
164. If the Governor decertifies a local board for
a local workforce development area under this
subparagraph, the Governor may require that a
new local board be appointed and certified for
the local workforce development area pursuant to
a reorganization plan developed by the Governor
under section 164(b)(1) and in accordance with
the criteria established under subsection (b).
‘‘(B) NONPERFORMANCE.—Notwithstanding
paragraph (2), the Governor may decertify a
local board if a local workforce development area
fails to meet the local benchmarks established
pursuant to section 153(b) for such local area for
two consecutive program years (in accordance
with section 156(b)(2)). If the Governor decerti-
fies a local board for a local workforce develop-
ment area under this subparagraph, the Gov-
ernor may require that a new local board be ap-
pointed and certified for the local area pursuant
to a reorganization plan developed by the Gov-
ernor under section 156(b)(2) and in accordance
with the criteria established under subsection (b).
‘‘(4) SINGLE
STATE
AREA.—Notwithstanding
subsection (b) and paragraphs (1) and (2), if a State
described in section 121(b) indicates in the State plan
that the State will be treated as a local workforce de-
velopment area for purposes of the application of this
Act, the Governor may designate the individuals and
entities involved in the collaborative process described
in section 105 to carry out the functions described
in subsection (d).
‘‘(d) FUNCTIONS OF LOCAL BOARD.—The functions of
the local board shall include the following:
‘‘(1) LOCAL PLAN.—
‘‘(A) IN GENERAL.—Each local board shall
develop and submit to the Governor a com-
prehensive 3-year strategic local plan. The local
plan shall be consistent with the State goals and
State plan described in section 101.
‘‘(B) CONTENTS.—The local plan shall in-
clude—
‘‘(i) an identification of the workforce
development needs of local industries, job
seekers, and workers;
‘‘(ii) a description of the disadvan-
taged youth activities and the employment
and training activities for adults and dis-
located workers to be carried out in the local
workforce development area as required
under titles II and III, that, with activities
authorized under the Wagner-Peyser Act (29
U.S.C. 49 et seq.), will contribute to the co-
herent delivery of employment, training and
workforce preparation activities in the local
area;
‘‘(iii) a description of the local bench-
marks negotiated with the Governor pursu-
ant to paragraph (6)(A), to be used by the
local board for measuring the performance
of the local administrative entity (where ap-
propriate), eligible providers of services au-
thorized under titles II and III, and the
performance of the full service employment
and training delivery system in the local
workforce development area;
‘‘(iv) a description of the local full
service employment and training delivery
system to be established or designated in the
local workforce development area, includ-
ing—
‘‘(I) a description of the process
negotiated with the Governor pursuant
to paragraph (6)(B) that the local
board will use to designate or certify
full service eligible providers in the
local 
workforce 
development 
area,
which ensures that the most effective
and efficient providers will be chosen;
‘‘(II) a description of how the
local board will ensure the continuous
improvement of such full service eligi-
ble providers and that such providers
will continue to meet the labor market
needs of local employers and partici-
pants; and
‘‘(III) an identification of the
roles of individual employment, train-
ing, and other human resources pro-
grams, as determined appropriate, in-
cluding programs authorized by the
Wagner-Peyser Act (20 U.S.C. 49 et
seq.), in carrying out the functions of
the full service employment and train-
ing delivery system, including a de-
scription of the funding sources to be
used in the operation of the full service
employment and training system;
‘‘(v) an identification of the adminis-
trative entity designated by the local board
in accordance with paragraph (5);
‘‘(vi) a description of the steps the local
board will take to work with local edu-
cational agencies, postsecondary educational
institutions (including community colleges,
where applicable), vocational educators,
providers of adult education and literacy
services, and other representatives of the
educational community to address local em-
ployment, education, and training needs,
including a description of linkages estab-
lished with such individuals and entities to
enhance the provision of services, including
supportive services, and avoid duplication;
‘‘(vii) a description of the process that
will be used by the local board to fully in-
volve representatives of the local commu-
nity, including community-based organiza-
tions with experience in serving disadvan-
taged youth, the local education community
(including vocational educators and teach-
ers), parents, youth, local law enforcement
agencies, and representatives of business
and employees (which may include labor)
in the development and implementation of
disadvantaged youth programs in the local
workforce development area, including a de-
scription of the process used (involving the
individuals and organizations described in
this clause) to ensure that the most effective
and efficient providers are chosen to carry
out the activities authorized under title II;
and
‘‘(viii) such other information as the
Governor may require.
‘‘(C) 
CONSULTATION.—The 
local 
board
shall—
‘‘(i) consult with the chief elected offi-
cial in the appropriate local workforce de-
velopment area in the development of the
local plan; and
‘‘(ii) provide the chief elected official
with a copy of the local plan.
‘‘(D) APPROVAL.—
‘‘(i) IN GENERAL.—The chief elected of-
ficial shall—
‘‘(I) approve the local plan; or
‘‘(II) reject the local plan and
make recommendations to the local
board on how to improve the local
plan.
‘‘(ii) SUBMISSION.—If, after a reason-
able effort, the local board is unable to ob-
tain the approval of the chief elected official
for the local plan, the local board may sub-
mit the plan to the Governor for approval
under subparagraph (A), and shall submit
the recommendations of the chief elected offi-
cial to the Governor along with the plan,
consistent with subsection (e)(2).
‘‘(2) SELECTION OF PROVIDERS.—
‘‘(A) SELECTION OF FULL SERVICE PROVID-
ERS.—Consistent with section 123 and the agree-
ment negotiated with the Governor under para-
graph (6)(B)(i), the local board is authorized to
designate or certify full service eligible providers,
and to terminate for cause, the eligibility of such
providers.
‘‘(B) 
SELECTION
OF
DISADVANTAGED
YOUTH
PROVIDERS.—Consistent with section
207, the local board is authorized to award
grants on a competitive basis to eligible provid-
ers of disadvantaged youth activities in the local
workforce development area.
‘‘(3) IDENTIFICATION
OF
ELIGIBLE
PROVIDERS
OF TRAINING SERVICES.—Consistent with section 124,
the local board is authorized to work in partnership
with the Governor concerning the identification of eli-
gible providers of training services described in sec-
tion 314(c) in the local workforce development area.
‘‘(4) BUDGET AND PROGRAM OVERSIGHT.—
‘‘(A) BUDGETING.—
‘‘(i) IN GENERAL.—The local workforce
development board shall develop a budget
for the purpose of carrying out local pro-
grams established under titles II and III
and section 123.
‘‘(ii) APPROVAL
OF
BUDGET.—Such
budget shall be subject to the approval of the
chief elected official or officials in the local
workforce development area.
‘‘(B) 
PROGRAM
OVERSIGHT.—The 
local
workforce development board, in partnership
with the chief elected official or officials in the
local workforce development area, shall conduct
oversight of the programs established under titles
II and III and section 123.
‘‘(5) ADMINISTRATION.—
‘‘(A) DESIGNATION OF ADMINISTRATIVE EN-
TITY.—
‘‘(i) IN GENERAL.—The local workforce
development board may designate itself as
the administrative entity for receipt and
disbursement of funds made available for
carrying out programs authorized under
title II and title III of this Act, or the local
board may designate an administrative en-
tity (which may be the State through a mu-
tual agreement between the local board and
the State), for the purpose of receipt and
disbursement of such funds.
‘‘(ii) ADDITIONAL
FISCAL
RESPON-
SIBILITIES.—Each 
administrative 
entity
shall be responsible for the distribution of
funds and shall have responsibility to take
action against its subcontractors, sub-
grantees, and other recipients to eliminate
abuses in the programs being carried out in
the local workforce development area and to
prevent any misuse of funds by subcontrac-
tors, subgrantees, and other recipients.
‘‘(B) STAFF; GRANTS
AND
OTHER
CON-
TRIBUTIONS.—The local board may employ its
own staff, independent of local programs and
service providers, and may solicit or accept
grants and contributions from sources other than
from this Act.
‘‘(C) PROHIBITION
ON
DIRECT
PROVISION
OF SERVICES.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii), a local board or employees of
such board may not directly provide serv-
ices under programs established under this
Act.
‘‘(ii) WAIVER.—The Governor of the
State in which the local board is located
may grant to the local board a written
waiver of the prohibition under clause (i)
where necessary to improve performance or
to provide a full array of services in the
local area as may be particularly necessary
in rural areas.
‘‘(D) CONFLICT OF INTEREST.—A member
of a local board may not—
‘‘(i) vote on a matter under consider-
ation by the local board—
‘‘(I) regarding the provision of
services by such member (or by an or-
ganization that such member rep-
resents); or
‘‘(II) that would provide direct fi-
nancial benefit to such member or the
immediate family of such member; or
‘‘(ii) engage in any other activity de-
termined by the Governor to constitute a
conflict of interest.
‘‘(6) NEGOTIATIONS.—
‘‘(A) 
LOCAL
BENCHMARKS.—The 
local
board, the local chief elected official, and the
Governor shall negotiate and reach agreement on
local benchmarks designed to meet the State goals
described in the State plan under section 101 for
the local workforce development area. In deter-
mining such benchmarks, the Governor, the local
chief elected official, and the local board shall
take into account the State adjusted benchmarks
described in section 153(a) with respect to pro-
grams authorized under titles II and III, and
specific economic, demographic, and other char-
acteristics of the populations to be served in the
local workforce development area.
‘‘(B) LOCAL DELIVERY OF SERVICES.—
‘‘(i) IN GENERAL.—The local board, the
local chief elected official, and the Governor
shall negotiate and reach agreement on a
process to be used by the local board that
meets the requirements of subclauses (I) and
(II) of paragraph (1)(B)(iv) for—
‘‘(I) the designation or certifi-
cation of full service eligible providers
(as described in section 123(c)) in the
local workforce development area, in-
cluding, consistent with State statute,
a determination of the role of providers
of activities authorized under the Wag-
ner-Peyser Act (29 U.S.C. 49 et seq.)
in the full service delivery of services
in the local workforce development
area; and
‘‘(II) the continued role of the
local board and the local elected official
in conducting oversight with respect to
full service eligible providers that are
providers of activities authorized under
the Wagner-Peyser Act (29 U.S.C. 49
et seq.).
‘‘(ii) ESTABLISHED FULL SERVICE EM-
PLOYMENT
AND
TRAINING
DELIVERY
SYS-
TEM.—Notwithstanding this subsection and
section 123(c), if a full service employment
and training delivery system has been es-
tablished in a local workforce development
area prior to the date of enactment of this
Act, or if approval has been obtained for a
plan for a full service employment and
training delivery system under the Wagner-
Peyser Act (29 U.S.C. 49 et seq.) prior to
the date of enactment of this Act, the local
board and the Governor involved may agree
to certify such full service employment and
training delivery system for purposes of this
subparagraph.
‘‘(e) SUNSHINE PROVISION.—
‘‘(1) IN GENERAL.—The local board shall make
available to the public, on a regular basis, informa-
tion regarding the activities of the local board, includ-
ing information regarding membership, the designa-
tion and certification of full service employment and
training center eligible providers, and the award of
grants to eligible providers of disadvantaged youth
activities.
‘‘(2) LOCAL PLAN.—Prior to the submission of
the local plan to the Governor, under subsection
(d)(1)(D)(ii), the local board shall make such plan
available for review and comment to—
‘‘(A) appropriate community-based organi-
zations and local educational and other public
agencies in the local workforce development area;
‘‘(B) local business organizations and rep-
resentatives of employees in the local workforce
development area; and
‘‘(C) the general public through such means
as public hearings and local news media.
‘‘SEC. 123. FULL SERVICE EMPLOYMENT AND TRAINING DE-
LIVERY SYSTEM.
‘‘(a) IN GENERAL.—There shall be established in a
State that receives an allotment under section 312, a full
service employment and training delivery system that—
‘‘(1) shall provide the core services described in
subsection (d), including the information described in
part E of title IV and labor exchange services author-
ized under the Wagner-Peyser Act (29 U.S.C. 49 et
seq.);
‘‘(2) shall provide access to the activities carried
out under subsection (e), if any; and
‘‘(3) shall provide access to intensive and train-
ing services described in section 314, including serv-
ing as the point of distribution of skill grants for
training services to participants in accordance with
section 314(c)(6)(A).
‘‘(b) ACCESS TO DELIVERY OF SERVICES.—
‘‘(1) IN GENERAL.—The State’s full service em-
ployment and training delivery system shall provide
individuals and employers with access to the services
described in subsection (a) through a network of eligi-
ble providers that assures participants that such serv-
ices will be available, regardless of where the partici-
pants initially enter the system. At a minimum, such
services shall be available—
‘‘(A) through a network of full service em-
ployment and training delivery centers, estab-
lished in all local workforce development areas in
the State, that provide all of the services de-
scribed in subsection (a); or
‘‘(B) at not less than one full service em-
ployment and training delivery center in each
local workforce development area in the State
that provides all of the services described in sub-
section (a), supplemented with multiple affili-
ated sites that provide one or more of such serv-
ices and are linked through electronic and tech-
nological access points.
‘‘(2) SPECIALIZED CENTERS.—Of the full service
employment and training delivery centers or affili-
ated sites described in paragraph (1), such centers or
sites may have a specialization in addressing special
needs, such as the needs of dislocated workers.
‘‘(c) ELIGIBILITY FOR DESIGNATION.—Any entity or
consortium of entities located in a local workforce develop-
ment area may be designated or certified by the local
workforce development board (in accordance with section
122(d)(2)(A)) through a competitive process, or through an
agreement reached between the local board and a consor-
tium of entities, to operate a full service employment and
training delivery center or to participate as an affiliated
site in the full service employment and training delivery
system. Such entities shall be known as ‘full service eligible
providers’ and may include—
‘‘(1) institutions of higher education;
‘‘(2) local employment service offices established
under the Wagner-Peyser Act (29 U.S.C 49 et seq.);
‘‘(3) private, nonprofit organizations (including
community-based organizations);
‘‘(4) private for-profit entities;
‘‘(5) agencies of local government; and
‘‘(6) other interested organizations and entities
of demonstrated effectiveness, including local cham-
bers of commerce and other business organizations,
consistent with State criteria as described in the
State plan under section 101.
‘‘(d) CORE SERVICES.—Funds made available to local
workforce development areas under section 313(b), in addi-
tion to funds made available under the Wagner-Peyser Act,
part E of title IV, and other related programs, shall be used
to provide core services, which shall be available to all indi-
viduals through the full service employment and training
delivery system and shall, at a minimum, include—
‘‘(1) outreach, intake (which may include worker
profiling), and orientation to the information and
other services available through the full service em-
ployment and training delivery system;
‘‘(2) initial assessment of skill levels, aptitudes,
abilities, and supportive service needs;
‘‘(3) job search and placement assistance, and
where appropriate, career counseling;
‘‘(4) provision of accurate information relating
to local, regional, and national labor markets, includ-
ing—
‘‘(A) job vacancy listings in such markets;
and
‘‘(B) information relating to local occupa-
tions in demand and the earnings and skill re-
quirements for such occupations;
‘‘(5) provision of accurate information relating
to the quality and availability of employment, train-
ing, and literacy activities authorized under titles II
and III of this Act and the Adult Education and
Family Literacy Act, and of vocational rehabilitation
program activities as appropriate, and referral to
such activities;
‘‘(6) provision of information relating to unem-
ployment compensation, publicly funded employment
and training programs (including registered appren-
ticeships), and forms of public financial assistance,
such as student aid programs, that may be available
in order to enable individuals to participate in em-
ployment, training, literacy, and other workforce
preparation activities;
‘‘(7) soliciting and accepting job orders submit-
ted by employers in the local workforce development
area, and screening and referring applicants in ac-
cordance with such orders;
‘‘(8) dissemination of lists of eligible training
providers and performance information regarding
such providers in accordance with section 124; and
‘‘(9) any additional performance information
with respect to the full service employment and train-
ing delivery system in the local workforce development
area.
‘‘(e) PERMISSIBLE SERVICES.—Funds made available
to local workforce development areas under section 313(b)
may be used to contribute to, through the full service em-
ployment and training delivery system—
‘‘(1) co-location of services related to employ-
ment, training, and literacy activities, such as unem-
ployment insurance, vocational rehabilitation pro-
gram activities, veterans’ employment services, pro-
grams authorized under the Wagner-Peyser Act (29
U.S.C. 49 et seq.), employment-related services for
welfare recipients, or other public assistance activi-
ties;
‘‘(2) customized screening and referral of quali-
fied participants to employment; and
‘‘(3) customized employment-related services to
employers on a fee-for-service basis.
‘‘SEC. 124. IDENTIFICATION OF TRAINING PROVIDERS.
‘‘(a) ELIGIBILITY REQUIREMENTS.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (e), to be identified as an eligible provider of
training services under title III and to receive funds
made available for the provision of training services
described in section 314(c) (referred to in this section
as ‘training services’), a provider of such services
shall meet the requirements of this section.
‘‘(2) POSTSECONDARY
EDUCATIONAL
INSTITU-
TION.—Subject to the provisions of this section, a
postsecondary educational institution shall automati-
cally be eligible to provide training services under
title III for—
‘‘(A) a program that leads to an associate,
baccalaureate, professional, or graduate degree;
‘‘(B) a program that—
‘‘(i) is at least 2 academic years in
length; and
‘‘(ii) is acceptable for academic credit
toward a baccalaureate degree; or
‘‘(C) a program that—
‘‘(i) is at least 1 academic year in
length;
‘‘(ii) is a training program;
‘‘(iii) leads to a certificate, degree, or
other recognized educational credential; and
‘‘(iv) prepares a student for gainful
employment in a recognized occupation.
‘‘(3) OTHER ELIGIBLE PROVIDERS.—
‘‘(A) PROCEDURE.—
‘‘(i) IN GENERAL.—The Governor shall
establish a procedure for use by local
workforce development boards in determin-
ing the eligibility of public and private pro-
viders not described in paragraph (2) (in-
cluding eligibility of postsecondary edu-
cational institutions for programs not de-
scribed in paragraph (2)) to receive such
funds.
‘‘(ii) FACTORS.—In developing such
procedure, the Governor—
‘‘(I) shall solicit and take into
consideration the recommendations of
local workforce development boards and
providers of training services within
the State; and
‘‘(II) shall take into consider-
ation—
‘‘(aa) the specific economic,
geographic, and demographic fac-
tors in the local areas in which el-
igible providers are located; and
‘‘(bb) the characteristics of
the populations served by the eli-
gible 
providers, 
including 
the
demonstrated difficulties in serv-
ing such populations, where ap-
plicable.
‘‘(B) LEVELS
OF
PERFORMANCE.—At a
minimum, the procedure described in subpara-
graph (A) shall require such a provider to meet
minimum acceptable levels of performance based
on verifiable program-specific performance infor-
mation described in subsection (b) and submitted
to the State agency designated under subsection
(c), as required under paragraphs (2) and (3) of
subsection (c).
‘‘(b) PERFORMANCE INFORMATION.—
‘‘(1) REQUIRED
INFORMATION.—Pursuant to
subsection (c)(2), to be eligible to provide training
services under title III, a provider shall submit infor-
mation on—
‘‘(A) program completion rates for individ-
uals in the applicable program conducted by the
provider;
‘‘(B) the percentage of individuals in the
applicable program who obtain employment,
which may also include information specifying
the percentage of individuals who obtain employ-
ment in an occupation related to the program
conducted; and
‘‘(C) the earnings at placement of individ-
uals who complete the program.
‘‘(2) ADDITIONAL
INFORMATION.—Subject to
paragraph (3), in addition to the performance infor-
mation described in paragraph (1), the Governor may
require that a provider described in this paragraph
submit such other performance information as the
Governor determines to be appropriate, which may
include information relating to—
‘‘(A) the retention in employment and the
subsequent earnings of the individuals who com-
plete the applicable program;
‘‘(B) where appropriate, the rates of licen-
sure or certification of individuals who complete
the program;
‘‘(C) the percentage of individuals who com-
plete the program who attain industry-recog-
nized occupational skills in the subject, occupa-
tion, or industry for which training is provided,
where applicable; and
‘‘(D) the adequacy of space, staff, equip-
ment, instructional materials, and student sup-
port services offered by the provider through a
program conducted by the provider.
‘‘(3) CONDITIONS.—
‘‘(A) IN GENERAL.—If the Governor requests
additional information pursuant to paragraph
(2) that imposes extraordinary costs on provid-
ers, the Governor shall provide access to cost-ef-
fective methods for the collection of such informa-
tion or provide additional resources to assist
providers in the collection of such information
from funds made available under section 313(a).
‘‘(B) TRANSITION
PERIOD
FOR
PERFORM-
ANCE-BASED INFORMATION.—For program years
1999 and 2000, the performance-based informa-
tion to be submitted by a provider under this
subsection shall only be required to be provided
relating to the performance of participants as-
sisted under title III in lieu of all individuals
participating in the program of the provider.
Nothing in this subparagraph shall be construed
to prohibit the submission of performance-based
information for all individuals participating in
the program of the provider as soon as is prac-
ticable prior to program year 2001 and each
provider shall be encouraged to submit such in-
formation.
‘‘(c) ADMINISTRATION.—
‘‘(1) DESIGNATION.—The Governor shall des-
ignate a State agency to collect and disseminate the
performance information described in subsection (b)
eligible provider under subsection (a) substantially
violates any requirement under this Act, the agency,
or the local board through the State agency, may ter-
minate the eligibility of such provider to receive funds
described in subsection (a) for such program or take
such other action as the agency or local board deter-
mines to be appropriate.
‘‘(3) NONPERFORMANCE.—
‘‘(A) 
TERMINATION
FOR
NONPERFORM-
ANCE.—(i) If the designated State agency deter-
mines that an eligible provider under subsection
(a)(2) or a program of training services carried
out by an eligible provider under subsection
(a)(2) substantially fails to meet for 2 or more
consecutive years, performance criteria estab-
lished by the Governor, the agency may termi-
nate the eligibility of such provider.
‘‘(ii) If the designated State agency, or the
local workforce development board working
through the State agency, determines that an eli-
gible provider under subsection (a)(3) or a pro-
gram of training services carried out by such an
eligible provider fails to meet acceptable levels of
performance consistent with the procedure estab-
lished under subsection (a)(3), the agency, or the
local board through the State agency, may termi-
nate the eligibility of such provider.
‘‘(B) FACTORS.—In establishing the per-
formance criteria described under subparagraph
(A)(i), the Governor shall—
‘‘(i) solicit and take into consideration
the recommendations of local workforce de-
velopment boards and providers of training
services within the State; and
‘‘(ii) take into consideration—
‘‘(I) the specific economic, geo-
graphic, and demographic factors in
the local areas in which eligible pro-
viders are located; and
‘‘(II) the characteristics of the
populations served by the eligible pro-
viders, including the demonstrated dif-
ficulties in serving such populations,
where applicable.
‘‘(4) ELIGIBILITY
UNDER
THE
HIGHER
EDU-
CATION ACT OF 1965.—If the designated State agency
determines that the eligibility of an eligible provider
described in subsection (a)(2) under title IV of the
Higher Education Act of 1965 has been terminated,
the agency—
‘‘(A) shall terminate the automatic eligi-
bility of the provider under subsection (a)(2);
and
‘‘(B) shall require the provider to meet the
requirements of subsection (a)(3) to be eligible to
receive funds as described in subsection (a).
‘‘(5) REPAYMENT.—A provider whose eligibility
is terminated under paragraph (1) or (2) for a pro-
gram shall be liable for repayment of all funds de-
scribed in subsection (a) received for the program
during any period of noncompliance described in such
paragraph.
‘‘(6) APPEAL.—The Governor shall establish a
procedure for an eligible provider to appeal a deter-
mination by the local board or the designated state
agency that results in the denial or termination of
eligibility under this subsection. Such procedure shall
provide an opportunity for a hearing and prescribe
appropriate time limits to ensure prompt resolution
of the appeal.
‘‘(7) CONSTRUCTION.—This subsection shall be
construed to supplement, but not supplant, other civil
and criminal remedies and penalties.
‘‘(e) ON-THE-JOB TRAINING EXCEPTION.—
‘‘(1) IN GENERAL.—Providers of on-the-job train-
ing, and apprenticeship programs registered in ac-
cordance with the National Apprenticeship Act, shall
not be subject to the requirements of subsection (a),
(b), (c), or (d).
‘‘(2) COLLECTION AND DISSEMINATION OF INFOR-
MATION.—A full-service eligible provider in a local
workforce development area shall collect such perform-
ance information from on-the-job training providers
as the Governor may require, and disseminate such
information through the delivery of core services de-
scribed in section 123, as appropriate.’’.
Subtitle C—Program and Fiscal
Provisions
CHAPTER 1—GENERAL PROVISIONS
SEC. 121. GENERAL PROGRAM REQUIREMENTS.
(a) EMPLOYMENT AND TRAINING OPPORTUNITIES.—
Section 141(a) of the Job Training Partnership Act (29
U.S.C. 1551(a)) is amended—
(1) by striking ‘‘and shall make efforts’’ and all
that follows and inserting a period; and
(2) by adding at the end the following: ‘‘In addi-
tion, efforts shall be made to develop programs which
contribute to occupational development, upward mo-
bility, development of new careers, and overcoming
sex-stereotyping in occupations traditional for the
other sex.’’.
(b) RELOCATION.—Section 141(c) of such Act (29
U.S.C. 1551(c)) is amended to read as follows:
‘‘(c) RELOCATION.—
‘‘(1) PROHIBITION ON USE OF FUNDS TO EN-
COURAGE OR INDUCE RELOCATION.—No funds pro-
vided under title II, III, or IV shall be used or pro-
posed 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, if such original location is with-
in the United States.
‘‘(2) PROHIBITION ON USE OF FUNDS FOR CUS-
TOMIZED OR SKILL TRAINING AND RELATED ACTIVI-
TIES AFTER RELOCATION.—No funds provided under
title II, III, or IV for an employment and training
activity shall be used for customized or skill training,
on-the-job training, or company-specific assessments
of job applicants or employees, for any business or
part of a business, that has relocated, until 120 days
after the date on which such business commences oper-
ations at the new location, if the relocation of such
business or part of a business, results in a loss of em-
ployment for any employee of such business at the
original location and such original location is within
the United States.
‘‘(3) REPAYMENT.—If the Secretary of Labor de-
termines that a violation of paragraph (1) or (2) has
occurred, the Secretary shall require the State that
has violated such paragraph to repay to the United
States an amount equal to the amount expended in
violation of such paragraph.’’.
(c) TRAINING FOR OCCUPATIONS IN DEMAND.—Sub-
section (d) of section 141 of such Act (29 U.S.C. 1551(d))
is hereby repealed.
(d) AGREEMENTS AMONG AREAS RELATING TO EDU-
CATION, TRAINING, AND EMPLOYMENT OF PARTICIPANTS.—
Section 141(e) of such Act (29 U.S.C. 1551(e)) is amend-
ed—
(1) by striking paragraph (1); and
(2) in paragraph (2)—
(A) by striking ‘‘(2)’’;
(B) by striking ‘‘service delivery area’’ each
place it appears and inserting ‘‘local workforce
development area’’; and
(C) in the second sentence—
(i) by striking ‘‘private industry coun-
cil’’ and inserting ‘‘local workforce develop-
ment board’’; and
(ii) by striking ‘‘section 104’’ and in-
serting ‘‘section 122(d)(1)’’.
(e) PROHIBITION ON CERTAIN VOTES.—Subsection (f)
of section 141 of such Act (29 U.S.C. 1551(f)) is hereby re-
pealed.
(f) PAYMENTS
TO
EMPLOYERS
FOR
ON-THE-JOB
TRAINING.—Section 141(g) of such Act (29 U.S.C. 1551(g))
is amended—
(1) by striking paragraphs (1) through (3); and
(2) in paragraph (4)—
(A) by striking ‘‘(4)’’;
(B) by striking ‘‘In accordance with regula-
tions issued by the Secretary, on-the-job training
contracts’’ and inserting ‘‘On-the-job training
contracts’’; and
(C) by striking ‘‘with wages and employ-
ment benefits’’ and all that follows and inserting
a period.
(g) DUPLICATE FACILITIES OR SERVICES.—Section
141(h) of such Act (29 U.S.C. 1551(h)) is amended to read
as follows:
‘‘(h)(1) Upon the approval of the Governor, real prop-
erty in which, as of July 1, 1998, equity has resulted from
funds provided under title III of the Social Security Act,
section 903(c) of such Act (commonly referred to as the
‘Reed Act’), or the Wagner-Peyser Act (29 U.S.C. 49 et seq.)
may be used for the purposes of a full service employment
and training delivery center.
‘‘(2) Unless otherwise provided in a plan approved
pursuant to section 101, subsequent to the commencement
of the use of the property described in paragraph (1) for
the purposes of a full service employment and training de-
livery center, funds provided under the provisions of law
described in paragraph (1) may only be used to acquire
further equity in such property, or to pay operating and
maintenance expenses relating to such property in propor-
tion to the extent of the use of such property attributable
to the activities authorized under such provisions of law.’’.
(h) RESPONSIBILITIES
OF ADMINISTRATIVE ENTI-
TIES.—Section 141(i) of such Act (29 U.S.C. 1551(i)) is
hereby repealed.
(i) PROHIBITION ON CERTAIN SUBSIDIZED EMPLOY-
MENT.—Section 141(k) of such Act (29 U.S.C. 1551(k)) is
hereby repealed.
(j) CONSULTATION REQUIREMENTS.—Section 141(n)
of such Act (29 U.S.C. 1551(n)) is amended—
(1) by striking ‘‘private industry councils’’ each
place it appears and inserting ‘‘local workforce devel-
opment boards’’;
(2) 
by 
striking 
‘‘councils’’ 
and 
inserting
‘‘boards’’;
(3) by striking ‘‘service delivery area’’ each place
it appears and inserting ‘‘local workforce development
area’’; and
(4) by striking ‘‘this Act’’ each place it appears
and inserting ‘‘title II or title III’’.
(k) PROHIBITION ON USE OF FUNDS FOR PUBLIC
SERVICE EMPLOYMENT.—Section 141(p) of such Act (29
U.S.C. 1551(p)) is amended—
(1) by striking ‘‘part B of this title or part A
or C of title II’’ and inserting ‘‘this Act’’; and
(2) by inserting at the end before the period the
following: ‘‘except as specifically authorized under
this Act’’.
(l) PROHIBITION ON USE OF FUNDS FOR CERTAIN
ECONOMIC ACTIVITIES.—Section 141(q) of such Act (29
U.S.C. 1551(p)) is amended in the first sentence by insert-
ing at the end before the period the following: ‘‘which are
not directly related to training or related services for eligi-
ble individuals under this Act’’.
(m) PRIORITY FOR EXCESS PROPERTY OF THE DE-
PARTMENT OF DEFENSE.—Section 141(s) of such Act (29
U.S.C. 1551(s)) is hereby repealed.
(n) PROHIBITION ON ENTITLEMENT TO SERVICE.—
Section 141 of such Act (29 U.S.C. 1551) is amended by
adding at the end the following:
‘‘(s) PROHIBITION ON ENTITLEMENT TO SERVICE.—
Nothing in this Act shall be construed to provide an indi-
vidual with an entitlement to a service under this Act.
‘‘(t) FEE FOR SERVICE AUTHORITY.—Services, facili-
ties, and equipment funded under titles II and III may be
used, as appropriate, on a fee for service basis, by employers
in a local workforce development area in order to provide
employment and training services to incumbent workers—
‘‘(1) when such services, facilities, or equipment
are not in use for the provision of services for eligible
program participants under title II or title III, re-
spectively;
‘‘(2) if such use would not have an adverse affect
on the provision of services to eligible program par-
ticipants under title II or title III, respectively; and
‘‘(3) if the income derived from such fees is used
to carry out the programs authorized under title II
or title III, respectively.’’.
SEC. 122. BENEFITS.
Section 142(a) of the Job Training Partnership Act
(29 U.S.C. 1552(a)) is amended—
(1) by striking all that precedes paragraph (4)
and inserting the following:
‘‘(a) WAGES.—
‘‘(1) IN
GENERAL.—Individuals in on-the-job
training or individuals employed in activities under
this Act shall be compensated at the same rates, in-
cluding periodic increases, as trainees or employees
who are similarly situated in similar occupations by
the same employer and who have similar training, ex-
perience and skills, and such rates shall be in accord-
ance with applicable law, but in no event less than
the higher of the rate specified in section 6(a)(1) of
the Fair Labor Standards Act of 1938 (29 U.S.C.
206(a)(1)) or the applicable State or local minimum
wage law.’’; and
(2) by redesignating paragraph (4) as para-
graph (2).
SEC. 123. LABOR STANDARDS.
Section 143 of the Job Training Partnership Act (29
U.S.C. 1553) is amended to read as follows:
‘‘SEC. 143. LABOR STANDARDS.
‘‘(a) LIMITATIONS
ON
ACTIVITIES
THAT
IMPACT
WAGES OF EMPLOYEES.—No funds provided under this
title shall be used to pay the wages of incumbent employees
during their participation in economic development activi-
ties provided through the statewide system.
‘‘(b) DISPLACEMENT.—
‘‘(1) PROHIBITION.—A participant in an activ-
ity authorized under title II, III, or IV of this Act
(referred to in this section as a ‘specified activity’)
shall not displace (including a partial displacement,
such as a reduction in the hours of nonovertime work,
wages, or employment benefits) any currently em-
ployed employee (as of the date of the participation).
‘‘(2) PROHIBITION
ON
IMPAIRMENT
OF
CON-
TRACTS.—A specified activity shall not impair an ex-
isting contract for services or collective bargaining
agreement, and no such activity that would be incon-
sistent with the terms of a collective bargaining agree-
ment shall be undertaken without the written concur-
rence of the labor organization and employer con-
cerned.
‘‘(c) OTHER PROHIBITIONS.—A participant in a spec-
ified activity shall not be employed in a job—
‘‘(1) when any other individual is on layoff from
the same or any substantially equivalent job;
‘‘(2) when the employer has terminated the em-
ployment of any regular employee or otherwise re-
duced the workforce of the employer with the intention
of filling the vacancy so created with the participant;
or
‘‘(3) which is created in a promotional line that
will infringe in any way upon the promotional op-
portunities of currently employed individuals.
‘‘(d) HEALTH AND SAFETY.—Health and safety stand-
ards established under Federal and State law otherwise ap-
plicable to working conditions of employees shall be equally
applicable to working conditions of participants engaged in
specified activities. To the extent that a State workers’ com-
pensation law applies, workers’ compensation shall be pro-
vided to participants on the same basis as the compensation
is provided to other individuals in the State in similar em-
ployment.
‘‘(e) EMPLOYMENT CONDITIONS.—Individuals in on-
the-job training or individuals employed in activities under
this Act, shall be provided benefits and working conditions
at the same level and to the same extent as other trainees
or employees working a similar length of time and doing
the same type of work.
‘‘(f) OPPORTUNITY TO SUBMIT COMMENTS.—Inter-
ested parties shall be provided an opportunity to submit
comments with respect to training programs proposed to
be funded under this Act.’’.
SEC. 124. GRIEVANCE PROCEDURE.
Section 144 of the Job Training Partnership Act (29
U.S.C. 1554) is amended to read as follows:
‘‘SEC. 144. GRIEVANCE PROCEDURE.
‘‘(a) IN GENERAL.—Each State receiving an allotment
under this Act shall establish and maintain a procedure
for grievances or complaints alleging violations of the re-
quirements of this Act from participants and other inter-
ested or affected parties. Such procedure shall include an
opportunity for a hearing and be completed within 60 days
of filing the complaint.
‘‘(b) INVESTIGATION.—
‘‘(1) IN GENERAL.—The Secretary shall inves-
tigate an allegation of a violation described in sub-
section (a) if—
‘‘(A) a decision relating to such violation
has not been reached within 60 days after the
date of the filing of the grievance or complaint
and either party appeals to the Secretary; or
‘‘(B) a decision relating to such violation
has been reached within such 60 days and the
party to which such decision is adverse appeals
such decision to the Secretary.
‘‘(2) ADDITIONAL REQUIREMENT.—The Secretary
shall make a final determination relating to an ap-
peal made under paragraph (1) no later than 120
days after receiving such appeal.
‘‘(c) REMEDIES.—Remedies shall be limited—
‘‘(1) to suspension or termination of payments
under this Act;
‘‘(2) to prohibition of placement of a participant
with an employer that has violated any requirements
under this Act;
‘‘(3) where applicable, to reinstatement of an em-
ployee, payment of lost wages and benefits, and rees-
tablishment of other relevant terms, conditions and
privileges of employment; and
‘‘(4) where appropriate, to other equitable re-
lief.’’.
SEC. 125. IDENTIFICATION OF ADDITIONAL IMPOSED RE-
QUIREMENTS.
Section 124 of the Job Training Partnership Act (29
U.S.C. 1534) is amended—
(1) by redesignating such section as section 146
of such Act; and
(2) by inserting such section after section 145 of
such Act.
SEC. 126. AUTHORITY OF STATE LEGISLATURE.
Section 126 of the Job Training Partnership Act (29
U.S.C. 1536) is amended—
(1) by adding at the end ‘‘Any funds received by
a State under title II or III of this Act shall be sub-
ject to appropriation by the State legislature, consist-
ent with the terms and conditions required under this
Act.’’;
(2) by redesignating such section as section 147
of such Act; and
(3) by inserting such section after section 146 of
such Act, as amended by this Act.
SEC. 127. INTERSTATE AGREEMENTS.
Section 127 of the Job Training Partnership Act (29
U.S.C. 1537) is amended—
(1) by redesignating such section as section 148
of such Act; and
(2) by inserting such section after section 147 of
such Act, as amended by this Act.
CHAPTER 2—PERFORMANCE
ACCOUNTABILITY PROVISIONS
SEC. 131. PERFORMANCE ACCOUNTABILITY PROVISIONS.
The Job Training Partnership Act (29 U.S.C. 1501
et seq.) is amended by inserting after part C of title I of
such Act the following:
‘‘SEC. 151. PERFORMANCE ACCOUNTABILITY SYSTEM.
‘‘In order to promote high levels of performance and
to ensure an appropriate return on the Nation’s investment
in employment, training, and literacy programs, each State
receiving funds under this Act or the Adult Education and
Family Literacy Act shall implement a statewide perform-
ance accountability system that meets the requirements of
this subpart.
‘‘SEC. 152. INDICATORS OF PERFORMANCE.
‘‘(a) STATE BENCHMARKS.—
‘‘(1) IN GENERAL.—Each State receiving funds
under this Act shall identify indicators and related
levels of performance (hereinafter referred to as ‘State
benchmarks’), for each of the programs established
under titles II, III, and V of this Act, to be used to
measure the State’s progress in meeting the State
long-term goals described in the State plan under sec-
tion 101. Such State benchmarks shall, at a mini-
mum—
‘‘(A) include the core indicators of perform-
ance described in section 154;
‘‘(B) be expressed in an objective, quantifi-
able, and measurable form; and
‘‘(C) show the progress of the State to con-
tinuously improve in performance over the 3-
year period covered by the State plan.
‘‘(2) CUSTOMER
SATISFACTION.—Such State
benchmarks may also include post-program surveys
and other measures of customer satisfaction of both
employers and program participants.
‘‘(b) TECHNICAL
DEFINITIONS
OF
CORE
INDICA-
TORS.—In order to ensure nationwide comparability of per-
formance data, the Secretary of Labor and the Secretary
of Education, in collaboration with the States, localities,
representatives of business and industry, employees, em-
ployment and training service providers, State directors of
adult education, providers of adult education and literacy
services, individuals with expertise in serving the employ-
ment and training needs of disadvantaged youth, partici-
pants, parents and other interested parties with expertise
in the provision of employment, training, literacy, and re-
lated services, shall promulgate definitions of each of the
core indicators of performance described in section 154,
with the exception of the indicators described under sub-
sections (a)(6), (b)(1), (b)(5), (c)(1), and (c)(5) of such sec-
tion, to be used under this Act in measuring performance.
‘‘SEC. 153. STATE ADJUSTED BENCHMARKS.
‘‘(a) NEGOTIATION.—
‘‘(1) IN GENERAL.—In order to ensure an ade-
quate return on the investment of Federal funds in
employment, training, and literacy programs author-
ized under this Act and the Adult Education and
Family Literacy Act, the appropriate Secretary is
authorized to negotiate with each State the levels of
performance expected to be achieved by such State
based upon the State’s benchmarks established pursu-
ant to section 152(a)(1) (hereinafter referred to as the
‘State adjusted benchmarks’), for the core indicators
of performance described in section 154 (except for the
indicators described under subsections (a)(6), (b)(1),
(b)(5), (c)(1), and (c)(5) of such section). Such nego-
tiations shall take into account—
‘‘(A) whether the levels will enable each
State to attain the State goals;
‘‘(B) how the levels compare with the levels
established by other States, taking into consider-
ation the specific circumstances, including eco-
nomic circumstances, of each State;
‘‘(C) how the levels compare with the model
levels of performance identified pursuant to sub-
section (c); and
‘‘(D) the extent to which such levels dem-
onstrate continuous improvement in performance
by such State and ensure an adequate return on
the investment of Federal funds.
‘‘(2) AUTHORITY OF GOVERNOR.—The Governor
of a State is authorized to carry out the negotiation
described in paragraph (1) for programs authorized
under titles II and III.
‘‘(3) AUTHORITY OF ELIGIBLE STATE AGENCY.—
The eligible State agency for adult education and lit-
eracy programs is authorized to carry out the nego-
tiation described in paragraph (1) for programs au-
thorized under the Adult Education and Family Lit-
eracy Act.
‘‘(b) LOCAL BENCHMARKS
FOR EMPLOYMENT
AND
TRAINING PROGRAMS.—Based on the expected levels of per-
formance established pursuant to subsection (a), each State
shall negotiate with the local workforce development board
and the chief local elected official in each local workforce
development area (consistent with section 122(d)(6)(A)) the
levels of performance for each indicator that are expected
for such local workforce development areas. Such levels of
performance shall be known as ‘local benchmarks’.
‘‘(c) MODEL LEVELS OF PERFORMANCE.—In order to
encourage high levels of performance and advance the Na-
tion’s competitiveness, the Secretary of Labor and the Sec-
retary of Education, in collaboration with the States, local-
ities, and with representatives of business and industry, em-
ployees, employment and training service providers, State
directors of adult education, providers of adult education
and literacy services, individuals with expertise in serving
the employment and training needs of disadvantaged youth,
participants, parents and other interested parties with ex-
pertise in the provision of employment, training, literacy,
and related services, shall identify challenging model levels
of performance (hereinafter referred to as ‘model levels of
performance’) with respect to the core indicators of perform-
ance described in section 154, with the exception of the indi-
cators described under subsections (a)(6), (b)(1), (b)(5),
(c)(1), and (c)(5).
‘‘SEC. 154. CORE INDICATORS OF PERFORMANCE.
‘‘(a) CORE INDICATORS FOR ADULT EMPLOYMENT AND
TRAINING PROGRAMS.—The common core indicators of per-
formance for programs authorized under title III of this Act
shall include measures of—
‘‘(1) placement in unsubsidized employment;
‘‘(2) retention in unsubsidized employment for
not less than 6 months and for not less than 12
months, respectively;
‘‘(3) increases in earnings or in earnings in
combination with employer-assisted benefits;
‘‘(4) reductions in welfare dependency;
‘‘(5) attainment of industry-recognized occupa-
tional skills;
‘‘(6) attainment of a high school diploma or a
general equivalency diploma; and
‘‘(7) such other measures of performance as the
State may wish to collect.
‘‘(b) CORE INDICATORS FOR ADULT EDUCATION AND
LITERACY PROGRAMS.—The core indicators of performance
for programs conducted under the Adult Education and
Family Literacy Act shall include measures of—
‘‘(1) achievement in the areas of reading, writ-
ing, English language acquisition, problem solving,
numeracy, and other literacy skills;
‘‘(2) receipt of a high school diploma or a gen-
eral equivalency diploma;
‘‘(3) entry into a postsecondary school, job re-
training program, employment, or career advance-
ment;
‘‘(4) attainment of the literacy skills and knowl-
edge individuals need to be productive and responsible
citizens and to become more actively involved in the
education of their children; and
‘‘(5) such other measures of performance as the
State may wish to collect.
‘‘(c) 
CORE
INDICATORS
FOR
DISADVANTAGED
YOUTH.—The core indicators of performance for programs
conducted under title II shall include measures of—
‘‘(1) attainment of challenging State academic
proficiencies;
‘‘(2) attainment of secondary school diplomas or
general equivalency diplomas;
‘‘(3) attainment of industry-recognized work
readiness and occupational skills;
‘‘(4) placement in, retention in, and completion
of postsecondary education or advanced training, or
placement and retention in military service, employ-
ment, or qualified apprenticeships; and
‘‘(5) such other measures of performance as the
State may wish to collect.
‘‘(d) POPULATION INDICATORS.—
‘‘(1) ADULT EMPLOYMENT AND TRAINING PRO-
GRAMS.—The core indicators of performance for pro-
grams conducted under title III, as provided under
subsection (a), shall include measures of the success of
individuals with multiple barriers to employment, in-
cluding economically disadvantaged individuals (in-
cluding welfare recipients), displaced homemakers,
older workers, and other individuals as determined by
the State.
‘‘(2) ADULT
EDUCATION
AND
LITERACY
PRO-
GRAMS.—The core indicators of performance for pro-
grams conducted under the Adult Education and
Family Literacy Act, as provided under subsections
(a) and (b), shall include measures of the success of
economically disadvantaged individuals, individuals
with limited literacy (as determined by the eligible
agency), and other individuals as determined by the
eligible agency.
‘‘(3) DISADVANTAGED
YOUTH
PROGRAMS.—The
core indicators of performance for programs con-
ducted under title II, as provided under subsection
(c), shall include measures of the success of hard to
serve youth, including individuals who are school
dropouts or whose educational attainment is one or
more grade levels below the grade level appropriate to
the age of the individual, and other individuals as de-
termined by the State.
‘‘SEC. 155. REPORT ON PERFORMANCE.
‘‘(a) IN GENERAL.—Each State that receives funds
under titles II and III of this Act and the Adult Education
and Family Literacy Act shall annually prepare and sub-
mit to the Secretary of Labor and the Secretary of Edu-
cation (for consideration by the appropriate Secretary) a
report on the levels of performance achieved by the State
with respect to the State adjusted benchmarks identified
pursuant to section 153(a), and by each local workforce de-
velopment area with respect to the local benchmarks identi-
fied pursuant to section 153(b) for programs authorized
under title II and title III for each program year. In pre-
paring such report, the State may include information on
such additional benchmarks as the State may establish to
meet the State goals.
‘‘(b) INFORMATION DISSEMINATION.—The Secretary of
Labor and the Secretary of Education—
‘‘(1) shall make the information contained in
such reports available to the general public through
publication and other appropriate methods;
‘‘(2) shall disseminate State-by-State compari-
sons of the information; and
‘‘(3) shall provide the appropriate congressional
committees with copies of such reports.
‘‘SEC. 156. INCENTIVE GRANTS AND SANCTIONS.
‘‘(a) INCENTIVE GRANTS.—
‘‘(1) AWARD OF GRANTS.—From amounts made
available under section 452 and section 502 for any
fiscal year, the appropriate Secretary may award in-
centive grants to States that—
‘‘(A) exceed, during the most recent 12-
month period for which data are available, the
adjusted State benchmarks described under sec-
tion 153(a);
‘‘(B) demonstrate continuing progress to-
ward exceeding, during the 3-year period covered
by the State plan submitted under section 101,
the adjusted State benchmarks described under
section 153(a); or
‘‘(C) demonstrate significant progress in the
coordination and integration of employment,
training, literacy, and other human resource and
workforce preparation programs within the
State, and demonstrate high performance in such
programs.
‘‘(2) TECHNICAL
ASSISTANCE.—The Secretary,
upon request, shall provide technical assistance to any
State that does not qualify for receipt of an incentive
grant under paragraph (1).
‘‘(3) USE OF FUNDS.—A State that receives an
incentive grant under paragraph (1) may use funds
made available under such grant only to carry out
employment, training, or literacy activities.
‘‘(b) SANCTIONS.—
‘‘(1) STATES.—
‘‘(A) TECHNICAL ASSISTANCE.—If a State
fails to meet expected levels of performance for a
program for any program year as established
pursuant to section 153(a), the Secretary of
Labor for programs established under title II
and title III, or the Secretary of Education for
programs established under the Adult Education
and Family Literacy Act, shall, upon request,
provide technical assistance, including assistance
in the development of a performance improve-
ment plan.
‘‘(B) REDUCTION IN AMOUNT OF GRANT.—
If such failure continues for a second consecutive
year, the appropriate Secretary may reduce by
not more than 5 percent, the amount of the grant
that would (in the absence of this paragraph) be
payable to the State under such program for the
immediately succeeding program year. Such pen-
alty shall be based on the degree of failure to
meet adjusted levels of performance.
‘‘(2) LOCAL AREAS.—
‘‘(A) TECHNICAL
ASSISTANCE.—If a local
workforce development area, or other applicable
local administrative entity, fails to meet expected
levels of performance for a program for any pro-
gram year under section 153(b), the Governor,
upon request to the Secretary, shall provide tech-
nical assistance, including the development of a
performance improvement plan.
‘‘(B) CORRECTIVE ACTIONS.—
‘‘(i) IN GENERAL.—If such failure con-
tinues for a second consecutive year, the
Governor shall take corrective actions,
which may include development of a reorga-
nization plan through which the Governor
may require the appointment of a new local
board (consistent with the criteria estab-
lished under section 122(b)), prohibit the
use of designated service providers, require
the redesignation of a local administrative
entity (in such case chosen jointly by the
Governor and the chief elected official in the
local workforce development area), or such
other actions as the Governor determines
are appropriate, consistent with State law,
and the requirements of this subparagraph.
‘‘(ii) APPEAL BY WORKFORCE DEVEL-
OPMENT
AREA.—A workforce development
area that is subject to a reorganization plan
under clause (i) may, not later than 30
days after receiving notice thereof, appeal to
the Secretary to rescind or revise such plan.
In such case, the Secretary shall make a
final decision not later than 45 days after
the receipt of the appeal.
‘‘(iii) EFFECTIVE DATE.—The actions
taken by the Governor under clause (i) shall
not become effective until the time the ap-
peal has expired (consistent with clause
(ii)), or the Secretary has issued a final de-
cision.’’.
CHAPTER 3—OTHER PROVISIONS
SEC. 141. PROMPT ALLOCATION OF FUNDS.
Section 162 of the Job Training Partnership Act (29
U.S.C. 1572) is amended—
(1) in the second sentence of subsection (a), by
striking ‘‘1980 Census or later data’’ and inserting
‘‘the most recent satisfactory data from the Bureau of
the Census’’; and
(2) by striking subsection (f).
SEC. 142. FISCAL CONTROLS; SANCTIONS.
(a) ESTABLISHMENT
OF
FISCAL
CONTROLS
BY
STATES.—Section 164(a) of the Job Training Partnership
Act (29 U.S.C. 1574(a)) is amended—
(1) in paragraph (2)—
(A) in the first sentence of the matter pre-
ceding subparagraph (A), before the period at the
end insert the following: ‘‘, consistent with ap-
propriate circulars of the Office of Management
and Budget’’; and
(B) in subparagraph (C), by striking ‘‘ex-
cept as specifically provided by this Act’’ and in-
serting ‘‘, and procurement transactions between
workforce development boards and such govern-
ments shall be conducted only on a cost-reim-
bursable basis’’;
(2) in paragraph (3)—
(A) by inserting before the second comma in
the first sentence ‘‘consistent with appropriate
circulars of the Office of Management and Budg-
et’’; and
(B) by striking the second sentence and all
that follows;
(3) in paragraph (4), by striking ‘‘service deliv-
ery area and substate area’’ and inserting ‘‘workforce
development area’’;
(4) in paragraph (5), by striking ‘‘service deliv-
ery area or substate area’’ and inserting ‘‘workforce
development area’’;
(5) in paragraph (6)(B), by striking ‘‘substate
areas and service delivery areas’’ and inserting
‘‘workforce development areas’’; and
(6) by striking paragraph (8).
(b) SANCTIONS.—Section 164(b) of such Act (29 U.S.C.
1574(b)) is amended—
(1) in paragraph (1)—
(A) in the matter preceding subparagraph
(A)—
(i) by striking ‘‘provision of’’ and in-
serting ‘‘requirement under’’; and
(ii) by striking ‘‘or the regulations
under this Act’’;
(B) in subparagraph (A), by inserting
‘‘local’’ before ‘‘plan’’; and
(C) in subparagraph (B)—
(i) in clause (i), by striking ‘‘private
industry council’’ and inserting ‘‘workforce
development board’’;
(ii) in clause (iii), by striking ‘‘service
delivery’’ and inserting ‘‘workforce develop-
ment’’; and
(iii) in clause (iv), by striking ‘‘service
delivery’’ each place it appears and insert-
ing ‘‘workforce development’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i)—
(I) 
by 
striking 
‘‘paragraph
(1)(A)’’ and inserting ‘‘subparagraphs
(A) and (B) of paragraph (1)’’; and
(II) by striking ‘‘under the same
terms and conditions as the dis-
approval of the plan’’; and
(ii) in clause (i), by inserting ‘‘the’’ be-
fore ‘‘appeal’’; and
(B) in subparagraph (B)—
(i) by striking ‘‘The actions’’ and all
that follows through ‘‘, who’’ and inserting
‘‘The Secretary’’; and
(ii) by striking ‘‘60’’ and inserting
‘‘45’’.
(c) EVALUATION BY COMPTROLLER GENERAL OF THE
UNITED STATES.—Subsection (c) of section 164 of such Act
(29 U.S.C. 1574(c)) is hereby repealed.
(d) REPAYMENT OF MISEXPENDITURES TO THE UNIT-
ED STATES.—Subsection (d) of section 164 of such Act (29
U.S.C. 1574(d)) is amended to read as follows:
‘‘(d) REPAYMENT
OF CERTAIN AMOUNTS
TO
THE
UNITED STATES.—
‘‘(1) IN
GENERAL.—Every recipient of funds
under titles II and III of this Act shall repay to the
United States amounts found not to have been ex-
pended in accordance with this Act.
‘‘(2) OFFSET OF REPAYMENT.—If the Secretary
determines that a State has expended funds made
available under this Act in a manner contrary to the
requirements of this Act, the Secretary may offset re-
payment of such expenditures against any other
amount to which the State is or may be entitled, ex-
cept as provided under subsection (e)(1).
‘‘(3) REPAYMENT FROM DEDUCTION BY STATE.—
If the Secretary requires a State to repay funds as a
result of a determination that a local recipient or a
subgrantee of such recipient in a local workforce de-
velopment area of the State has expended funds con-
trary to the requirements of this Act, the Governor of
the State may use an amount deducted under para-
graph (4) to repay the funds, except as provided
under subsection (e)(1).
‘‘(4) DEDUCTION BY STATE.—The Governor may
deduct an amount equal to the misexpenditure de-
scribed in paragraph (3) from subsequent program
year allocations to the local workforce development
area from funds reserved for the administrative costs
of such local programs under title II or title III, as
appropriate.
‘‘(5) LIMITATIONS.—A deduction made by a
State as described under paragraph (4) shall not be
made until such time as the Governor has taken ap-
propriate corrective action to ensure full compliance
within such local workforce development area with re-
gard to appropriate expenditures of funds under this
Act.’’.
(e) REPAYMENT OF CERTAIN AMOUNTS TO THE UNIT-
ED STATES.—Subsection (e) of section 164 of such Act (29
U.S.C. 1574(e)) is amended—
(1) in paragraph (1)—
(A) in the first sentence—
(i) by inserting ‘‘by the Secretary’’
after ‘‘upon a determination’’;
(ii) by striking ‘‘or failure’’ and insert-
ing ‘‘failure’’; and
(iii) by inserting before the period at
the end the following: ‘‘, or a pattern of fail-
ure with respect to paragraphs (2) and (3)
of subsection (d)’’; and
(B) in the second sentence—
(i) by inserting ‘‘under this subsection
or subsection (d)’’ after ‘‘shall be made’’;
and
(ii) by inserting before the period at
the end the following: ‘‘has been given to the
recipient’’; and
(2) in paragraph (3), by striking the second sen-
tence.
100
(f) REMEDIES
CONSTRUED
AS
EXCLUSIVE
REM-
EDIES.—Subsection (h) of section 164 of such Act (29
U.S.C. 1574(h)) is hereby repealed.
SEC. 143. REPORTS; RECORDKEEPING; INVESTIGATIONS.
Section 165 of the Job Training Partnership Act (29
U.S.C. 1575) is amended—
(1) in subsection (d)(1)(C)—
(A) by striking the comma after ‘‘occupa-
tions’’; and
(B) by striking the semicolon at the end and
inserting ‘‘and placement for participants in
nontraditional employment;’’; and
(2) by striking subsection (h).
SEC. 144. ADMINISTRATIVE ADJUDICATION.
Section 166(a) of the Job Training Partnership Act
(29 U.S.C. 1576(a)) is amended by striking the last sen-
tence.
SEC. 145. NONDISCRIMINATION.
Section 167 of the Job Training Partnership Act (29
U.S.C. 1577) is amended to read as follows:
‘‘SEC. 167. NONDISCRIMINATION.
‘‘(a) IN GENERAL.—
‘‘(1) FEDERAL FINANCIAL ASSISTANCE.—For the
purpose of applying the prohibitions against dis-
crimination on the basis of age under the Age Dis-
101
crimination Act of 1975 (42 U.S.C. 6101 et seq.), on
the basis of disability under section 504 of the Reha-
bilitation Act of 1973 (29 U.S.C. 794), on the basis
of sex under title IX of the Education Amendments of
1972 (20 U.S.C. 1681 et seq.), or on the basis of race,
color, or national origin under title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et seq.), pro-
grams and activities funded or otherwise financially
assisted in whole or in part under this Act are con-
sidered to be programs and activities receiving Fed-
eral financial assistance.
‘‘(2) NONDISCRIMINATION.—No individual shall
be excluded from participation in, denied the benefits
of, subjected to discrimination under, or denied em-
ployment in the administration of or in connection
with any such program or activity because of race,
color, religion, sex, national origin, age, political af-
filiation or belief, or status as a qualified individual
with a disability or as a participant of such program
or activity.
‘‘(b) SECRETARIAL AUTHORITY.—Whenever the Sec-
retary finds that a State or other recipient has failed to
comply with a provision of this section, or with an applica-
ble regulation prescribed to carry out this section, the Sec-
retary shall notify such State or recipient and seek compli-
102
ance through the processes of conciliation, mediation or per-
suasion, as appropriate. If within a reasonable time the
State or recipient fails or refuses to comply, the Secretary
may—
‘‘(1) refer the matter to the Attorney General
with a recommendation for appropriate action; or
‘‘(2) take such other action as may be provided
by law.
‘‘(c) AUTHORITY OF ATTORNEY GENERAL.—When a
matter is referred to the Attorney General pursuant to sub-
section (b)(1), the Attorney General may bring a civil ac-
tion in any appropriate district court of the United States
for such relief as may be appropriate, including injunctive
relief.
‘‘(d) JOB CORPS.—For the purposes of this section, Job
Corps members shall be considered as the ultimate bene-
ficiaries of Federal financial assistance.
‘‘(e) REGULATIONS.—The Secretary shall issue regula-
tions necessary to implement this section not later than one
year after the date of the enactment of the Employment,
Training, and Literacy Enhancement Act of 1997. Such
regulations shall adopt standards for determining discrimi-
nation and procedures for enforcement that are consistent
with the Acts referred to in a subsection (a)(1), as well as
procedures to ensure that complaints filed under this section
103
and such Acts are processed in a manner that avoids dupli-
cation of effort.’’.
SEC. 146. JUDICIAL REVIEW.
Section 168 of the Job Training Partnership Act (29
U.S.C. 1578) is hereby repealed.
SEC. 147. ADMINISTRATIVE PROVISIONS.
Section 169 of the Job Training Partnership Act (29
U.S.C. 1579) is amended—
(1) in the first sentence of subsection (a), by
striking ‘‘such rules and regulations’’ and all that fol-
lows and inserting ‘‘rules and regulations only to the
extent necessary to administer and ensure compliance
with the specific requirements of this Act.’’; and
(2) by striking subsection (e).
SEC. 148. PRESIDENTIAL AWARDS FOR OUTSTANDING PRI-
VATE SECTOR INVOLVEMENT IN JOB TRAIN-
ING PROGRAMS.
Section 172 of the Job Training Partnership Act (29
U.S.C. 1582) is hereby repealed.
SEC. 149. CONSTRUCTION.
Section 173 of the Job Training Partnership Act (29
U.S.C. 1583) is hereby repealed.
104
SEC. 150. LIMITATION ON CERTAIN COSTS.
Part D of title I of the Job Training Partnership Act
(29 U.S.C. 1571 et seq.), as amended by this Act, is further
amended by adding at the end the following:
‘‘SEC. 172. LIMITATION ON CERTAIN COSTS.
‘‘(a) IN GENERAL.—The Secretary, after consultation
with the Inspector General of the Department of Labor and
the Comptroller General of the United States, shall develop
regulations that define ‘administrative costs’ for purposes
of programs under titles II and III. Such definition shall
reflect generally accepted accounting principles.
‘‘(b) LIMITATION.—
‘‘(1) IN GENERAL.—Of the amounts allocated to
local workforce development areas for a program year
under titles II and III, not more that 10 percent of
such amounts may be expended for administrative
costs.
‘‘(2) DEFINITION.—For purposes of paragraph
(1), the term ‘allocated’ means allocated for a pro-
gram year, as adjusted for reallocations and reallot-
ments and for transfers of funds in accordance with
this Act.’’.
105
Subtitle D—Miscellaneous
Provisions
SEC. 161. CRIMINAL PROVISIONS.
(a) IN GENERAL.—Section 182 of the Job Training
Partnership Act is hereby repealed.
(b) SAVINGS PROVISION.—The repeal of section 182 of
such Act made by subsection (a) does not affect in any way
the amendment made by such section 182.
SEC. 162. REFERENCE.
Section 183 of the Job Training Partnership Act (29
U.S.C. 1592) is amended to read as follows:
‘‘SEC. 183. REFERENCE.
‘‘Effective on the date of the enactment of the Employ-
ment, Training, and Literacy Enhancement Act of 1997,
all references in any other provision of law (other than sec-
tion 665 of title 18, United States Code) to the Comprehen-
sive Employment and Training Act, or to the Job Training
Partnership Act, as the case may be, shall be deemed to
refer to Employment, Training, and Literacy Enhancement
Act.’’.
SEC. 163. REPEALERS.
(a) IN GENERAL.—Section 184 of the Job Training
Partnership Act (29 U.S.C. 801 et seq.) is hereby repealed.
106
(b) SAVINGS PROVISION.—The repeal of section 184 of
such Act made by subsection (a) does not affect in any way
the repealers made by such section 184.
TITLE II—AMENDMENTS TO EM-
PLOYMENT 
AND 
TRAINING
PROGRAMS 
FOR 
DISADVAN-
TAGED YOUTH
SEC. 201. ADULT TRAINING PROGRAM.
Title II of the Job Training Partnership Act (29
U.S.C. 1601 et seq.) is amended by striking part A of such
title.
SEC. 202. SUMMER YOUTH EMPLOYMENT AND TRAINING
PROGRAM.
Title II of the Job Training Partnership Act (29
U.S.C. 1601 et seq.) is amended by striking part B of such
title.
SEC. 203. DISADVANTAGED YOUTH EMPLOYMENT AND
TRAINING OPPORTUNITIES GRANTS.
(a) AUTHORIZATION.—Title II of the Job Training
Partnership Act (29 U.S.C. 1601 et seq.), as amended by
this Act, is further amended—
(1) in the heading to read as follows:
107
‘‘TITLE 
II—DISADVANTAGED
YOUTH 
EMPLOYMENT 
AND
TRAINING 
OPPORTUNITIES
GRANTS’’;
(2) by striking the heading for part C of such
title;
(3) by redesignating section 261 as section 201;
and
(4) by inserting after section 201 (as redesig-
nated) the following:
‘‘SEC. 202. AUTHORIZATION.
‘‘(a) IN GENERAL.—In the case of each State that in
accordance with the requirements of sections 101 and 102
submits to the Secretary of Labor (hereinafter in this title
referred to as the ‘Secretary’) a State plan, the Secretary
shall provide a grant to the State for the purpose of provid-
ing employment, job training, educational, and related as-
sistance for disadvantaged youth in the State.
‘‘(b) AMOUNT.—The grant shall consist of the allot-
ment determined for the State under section 203.’’.
(b) ALLOTMENT AND ALLOCATION AMONG STATES.—
Title II of the Job Training Partnership Act (29 U.S.C.
1601 et seq.), as amended by this Act, is further amended—
(1) by redesignating section 262 as section 203;
and
108
(2) in section 203 (as redesignated)—
(A) in the heading to read as follows:
‘‘SEC. 203. ALLOTMENT AND ALLOCATION AMONG STATES.’’;
(B) by striking subsections (b) and (c);
(C) by redesignating subsections (a) and (d)
as subsections (b) and (c), respectively;
(D) by inserting before subsection (b) (as re-
designated) the following:
‘‘(a) IN GENERAL.—Of the amount appropriated pur-
suant to section 3(a)(1) to carry out this title for a fiscal
year, the Secretary shall allot such amount in accordance
with subsection (b).’’;
(E) in subsection (b) (as redesignated)—
(i) in the heading to read as follows:
‘‘(b) ALLOTMENT AMONG STATES.—’’;
(ii) in paragraph (1) to read as fol-
lows:
‘‘(1) OUTLYING AREAS.—
‘‘(A) IN GENERAL.—From the amount ap-
propriated for any fiscal year to carry out this
title, the Secretary shall reserve not more than
one quarter of one percent to provide assistance
to—
‘‘(i) the outlying areas; and
109
‘‘(ii) for each of the fiscal years 1998
through 2001, to carry out the competition
described in subparagraph (B), except that
the amount reserved to carry out such sub-
paragraph for any such fiscal year shall not
exceed the amount reserved for the freely as-
sociated states for fiscal year 1997, from
amounts reserved under section 262(a)(1) of
the Job Training Partnership Act (29
U.S.C. 1642(a)(1)) (as such section was in
effect on the day before the date of the enact-
ment of Employment, Training, and Lit-
eracy Enhancement Act of 1997).
‘‘(B) LIMITATION FOR FREELY ASSOCIATED
STATES.—
‘‘(i) COMPETITIVE GRANTS.—The Sec-
retary shall use funds described in subpara-
graph (A)(ii) to award grants to Guam,
American Samoa, the Commonwealth of the
Northern Mariana Islands, and the freely
associated states to carry out the purposes
of this title.
‘‘(ii) AWARD
BASIS.—The Secretary
shall award grants pursuant to clause (i)
on a competitive basis and pursuant to the
110
recommendations of experts in the field of
employment and training, working through
the Pacific Region Educational Laboratory
in Honolulu, Hawaii.
‘‘(iii) ASSISTANCE
REQUIREMENTS.—
Any freely associated state that desires to
receive amounts under this title shall in-
clude in its application for assistance—
‘‘(I) information demonstrating
that it will meet all conditions that
apply to States under this title;
‘‘(II) an assurance that, notwith-
standing any other provision of this
title, it will use such amounts only for
the direct provision of services; and
‘‘(III) such other information and
assurances as the Secretary may re-
quire.
‘‘(iv) TERMINATION OF ELIGIBILITY.—
Notwithstanding any other provision of law,
the freely associated states shall not receive
any funds under this title for any program
year that begins after September 30, 2001.
‘‘(v) 
ADMINISTRATIVE
COSTS.—The
Secretary may provide not more than 5
111
percent of the amount made available for
grants under this subparagraph to pay the
administrative costs of the Pacific Region
Educational Laboratory in Honolulu, Ha-
waii, regarding activities assisted under
this section.
‘‘(C) ADDITIONAL REQUIREMENT.—The pro-
visions of Public Law 95–134, permitting the
consolidation of grants by the outlying areas,
shall not apply to funds provided to those areas
or to the freely associated states under this sec-
tion.
‘‘(D) DEFINITION.—For purposes of this
paragraph, the term ‘freely associated states’
means the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic
of Palau.’’; and
(iii) in paragraph (2)—
(I) by inserting after the heading
the following:
‘‘(A) IN GENERAL.—’’;
(II) by striking ‘‘82 percent of the
remainder’’ and all that follows and
inserting the following: ‘‘the remaining
amount to the States pursuant to the
112
formula contained in subparagraph
(B).’’; and
(III) by adding at the end the fol-
lowing:
‘‘(B) FORMULA.—Subject to the provisions
of subparagraphs (C) and (D) of the amounts al-
lotted to States for this title for each fiscal
year—
‘‘(i) 331⁄3 percent shall be allotted on
the basis of the relative number of unem-
ployed individuals residing in areas of sub-
stantial unemployment within each State as
compared to the total number of such unem-
ployed individuals in all such areas of sub-
stantial unemployment in all States;
‘‘(ii) 331⁄3 percent shall be allotted on
the basis of the relative excess number of un-
employed individuals who reside in each
State as compared to the total excess num-
ber of unemployed individuals in all States;
and
‘‘(iii) 331⁄3 percent shall be allotted on
the basis of the relative number of economi-
cally disadvantaged youth within each
State as compared to the total number of
113
economically disadvantaged youth in all
States.
‘‘(C) MINIMUM ALLOTMENT.—
‘‘(i) MINIMUM PERCENTAGE.—No State
shall be allotted less than 90 percent of its
allotment percentage for the fiscal year pre-
ceding the fiscal year for which the deter-
mination is made.
‘‘(ii) 
MAXIMUM
PERCENTAGE.—No
State shall be allotted more than 130 per-
cent of its allotment percentage for the fiscal
year preceding the fiscal year for which the
determination is made.
‘‘(D) 
SMALL
STATE
MINIMUM
ALLOT-
MENT.—No State shall receive less than one-
quarter of one percent of the amount available
under this title for a fiscal year. Amounts nec-
essary for increasing such payments to States to
comply with the preceding sentence shall be ob-
tained by ratably reducing the amounts to be
paid to other States.’’; and
(F) in subsection (c)(1)(A) (as redesig-
nated)—
114
(i) in the heading, by striking ‘‘ECO-
NOMICALLY DISADVANTAGED’’ and inserting
‘‘DISADVANTAGED’’; and
(ii) in the matter preceding clause (i),
by striking ‘‘economically’’.
(c) ALLOCATION WITHIN STATES.—Title II of the Job
Training Partnership Act (29 U.S.C. 1601 et seq.), as
amended by this Act, is further amended by inserting after
section 203 the following:
‘‘SEC. 204. ALLOCATION WITHIN STATES.
‘‘(a) RESERVATION FOR STATE ACTIVITIES.—
‘‘(1) IN GENERAL.—
‘‘(A) RESERVATION.—The Governor of the
State shall reserve not more than 25 percent of
the amount allotted to the State under section
203(b) for a fiscal year to carry out the activities
described in this subsection.
‘‘(B) 
MATCHING
FUNDS
FOR
OUT-OF-
SCHOOL YOUTH PROGRAMS.—Of the amount re-
served under subparagraph (A), the Governor
shall reserve 10 percent of the total amount
alloted to the State under section 203(b) for any
fiscal year to award grants in accordance with
this title to programs for disadvantaged youth
services that—
115
‘‘(i) serve only out-of-school youth; and
‘‘(ii) agree to provide funds from non-
Federal sources for such services in an
amount equal to the Federal funds received
under this title.
‘‘(2) 
REQUIRED
ACTIVITIES.—Activities 
de-
scribed in paragraph (1)(A) shall include the provi-
sion of additional assistance to areas that have high
concentrations of disadvantaged youth to carry out
the activities described in section 206.
‘‘(3) DISCRETIONARY ACTIVITIES.—Activities de-
scribed in paragraph (1)(A) may include—
‘‘(A) subject to paragraph (4), administra-
tion by the State of programs under this title;
‘‘(B) capacity building and technical assist-
ance to local workforce development areas and to
providers of disadvantaged youth services as au-
thorized under this title, including the develop-
ment and training of staff, members of local
workforce development boards, and employers
and workplace mentors providing training
through programs authorized under this title;
‘‘(C) incentives for program coordination
and integration, performance awards, and re-
search and demonstrations;
116
‘‘(D) implementation of innovative dis-
advantaged youth employment and training pro-
grams, pilot projects, and demonstration projects
which further the purposes of this title; and
‘‘(E) support for a common management
information system across employment, training,
literacy, and human resource programs as iden-
tified in section 103.
‘‘(4) LIMITATION.—Of the amount reserved by
the Governor under paragraph (1)(A), not more than
5 percent of the total amount allotted to the State
under section 203(b) may be used for administration
by the State of programs under this title.
‘‘(b) WITHIN STATE ALLOCATION.—
‘‘(1) IN GENERAL.—The Governor of the State
shall allocate the remainder of the amount allotted to
the State under section 203(b) to workforce develop-
ment areas designated under section 121, for the pur-
pose of providing services for disadvantaged youth in
accordance with section 206.
‘‘(2) WITHIN STATE FORMULA.—
‘‘(A) 
ESTABLISHMENT.—The 
Governor,
through the collaborative process under section
102, and after consultation with local chief elect-
ed officials in the local workforce development
117
areas, shall develop a formula for the allocation
of the remainder of funds described in paragraph
(1) to workforce development areas, taking into
account—
‘‘(i) the relative number of unemployed
individuals residing in areas of substantial
unemployment within each local workforce
development area, as compared to the total
number of such unemployed individuals re-
siding within the State;
‘‘(ii) the relative number of disadvan-
taged youth residing within each local
workforce development area as compared to
the total number of disadvantaged youth re-
siding within the State;
‘‘(iii) the relative excess number of un-
employed individuals who reside within
each local workforce development area as
compared to the total excess number of un-
employed individuals residing within the
State; and
‘‘(iv) such additional factors as are de-
termined appropriate by the State.
118
‘‘(B) ADDITIONAL FACTORS.—In establish-
ing such formula, the Governor shall ensure
that—
‘‘(i) funds are distributed equitably
throughout the State;
‘‘(ii) factors described in subparagraph
(A) 
do 
not 
receive 
disproportionate
weighting; and
‘‘(iii) such formula protects local
workforce development areas from signifi-
cant funding shifts from year to year.’’.
(d) ELIGIBILITY FOR SERVICES.—Title II of the Job
Training Partnership Act (29 U.S.C. 1601 et seq.), as
amended by this Act, is further amended—
(1) by redesignating section 263 as section 205;
and
(2) in section 205 (as redesignated)—
(A) in subsection (a)—
(i) in the heading to read as follows:
‘‘(a) IN GENERAL.—’’;
(ii) in the matter preceding paragraph
(1)—
(I) by striking ‘‘subsections (e)
and (g)’’ and inserting ‘‘subsection
(c)’’;
119
(II) by striking ‘‘who is in
school’’; and
(III) by striking ‘‘part’’ and in-
serting ‘‘title’’; and
(iii) in paragraph (1)(B) to read as
follows:
‘‘(B) if provided in the local plan developed pur-
suant to section 122(d)(1), is age 14 through 24;
and’’;
(B) in subsection (b)—
(i) by amending the heading to read as
follows:
‘‘(b) PRIORITY FOR SERVICE.—’’;
(ii) by redesignating paragraphs (1)
through (7) as subparagraphs (B) through
(H), respectively, and moving the margin
for each such subparagraph two ems to the
right;
(iii) by inserting before subparagraph
(B) (as redesignated) the following:
‘‘(A) Individuals who are school dropouts.’’;
(iv) in subparagraph (H) (as redesig-
nated) to read as follows:
120
‘‘(H) Other disadvantaged youth who face
serious barriers to employment as identified by
the local workforce development area.’’; and
(v) by amending the matter preceding
subparagraph (A) (as added by clause (iii))
to read as follows:
‘‘(1) PRIORITY.—Of the disadvantaged youth de-
scribed in subsection (a), priority for service shall be
given to school dropouts and to other hard-to-serve
youth.
‘‘(2) DEFINITION.—For the purposes of this title,
the term ‘hard-to-serve youth’ includes—’’;
(C) by striking subsections (c), (d), (f), (g),
and (h);
(D) by redesignating subsection (e) as sub-
section (c); and
(E) in subsection (c) (as redesignated)—
(i) by striking ‘‘subsection (a)(2) or
(c)(2)’’ and inserting ‘‘subsection (a)’’; and
(ii) by striking ‘‘of individuals who
face’’ and all that follows and inserting ‘‘de-
scribed in subparagraphs (A) through (G) of
subsection (b)(2).’’.
121
(e) USE OF FUNDS.—Title II of the Job Training
Partnership Act (29 U.S.C. 1601 et seq.), as amended by
this Act, is further amended—
(1) by redesignating section 264 as section 206;
and
(2) in section 206 (as redesignated)—
(A) by striking subsection (a);
(B) by redesignating subsections (b), (c),
and (d) as subsections (a), (b), and (c), respec-
tively;
(C) in subsection (a) (as redesignated)—
(i) in the heading to read as follows:
‘‘(a) PROGRAM DESIGN.—’’;
(ii) in paragraph (1)—
(I) in the heading to read as fol-
lows:
‘‘(1) ESSENTIAL ELEMENTS.—’’;
(II) in the matter preceding sub-
paragraph (A)—
(aa) by striking ‘‘part’’ and
inserting ‘‘title’’; and
(bb) by striking ‘‘include’’;
(III) in subparagraph (A)—
(aa) by inserting ‘‘provide’’
after ‘‘(A)’’;
122
(bb) by striking ‘‘skill levels
and service needs’’ and inserting
‘‘academic levels, skill levels, and
service needs’’; and
(cc) by striking ‘‘and sup-
portive service needs’’ and insert-
ing ‘‘supportive service needs, and
developmental needs of such par-
ticipants’’;
(IV) in subparagraph (B)—
(aa) by striking ‘‘develop-
ment of’’ and inserting ‘‘develop’’;
and
(bb) by inserting ‘‘for each
participant’’ after ‘‘service strate-
gies’’; and
(V) by amending subparagraphs
(C) and (D) to read as follows:
‘‘(C) integrate academic, occupational, and
work-based learning opportunities;
‘‘(D) provide comprehensive guidance and
counseling;
‘‘(E) provide postsecondary educational or
training opportunities, where appropriate;
123
‘‘(F) involve employers and parents in the
design and implementation of programs; and
‘‘(G) provide adult mentoring.’’;
(iii) in paragraph (2)—
(I) in subparagraph (A)—
(aa) in the matter preceding
clause (i), by striking ‘‘service de-
livery’’ and inserting ‘‘workforce
development’’; and
(bb) in clause (i), by striking
‘‘service delivery’’ and inserting
‘‘workforce development’’; and
(II) in subparagraph (B)—
(aa) in clause (i), by striking
‘‘(i) SERVICE PROVIDERS.—’’; and
(bb) by striking clause (ii);
(D) in subsection (b) (as redesignated)—
(i) in the matter preceding paragraph
(1), by striking ‘‘part’’ and inserting
‘‘title’’;
(ii) in paragraph (1)—
(I) in subparagraph (A), by strik-
ing ‘‘section 204(b)(1)’’ and inserting
‘‘section 314(c)(4)’’;
124
(II) in subparagraph (C), by
striking ‘‘section 141(o)(1)’’ and insert-
ing ‘‘section 141(11)(A)’’;
(III) in subparagraph (F), by in-
serting after ‘‘(F)’’ the following: ‘‘paid
and unpaid work experience, including
summer employment opportunities that
are directly linked to academic, occu-
pational, and workbased learning op-
portunities, which may include’’;
(IV) in subparagraph (G)—
(aa) by striking ‘‘in public
agencies, nonprofit agencies, and
other appropriate agencies, insti-
tutions, and organizations’’; and
(bb) by adding ‘‘and’’ at the
end;
(V) by amending subparagraph
(H) to read as follows:
‘‘(H) such other training and transition
services that assist disadvantaged youth in mak-
ing the transition to employment or to post-
secondary education or training, as determined
appropriate by the local workforce development
area.’’; and
125
(VI) by striking subparagraphs
(I) through (L); and
(iii) in paragraph (2)—
(I) in subparagraph (A) to read
as follows:
‘‘(A) assessment, outreach, staff develop-
ment, job development, and job search assistance
activities;’’;
(II) in subparagraph (C), by
striking ‘‘and’’ at the end;
(III) in subparagraph (D)—
(aa) by striking ‘‘cash’’; and
(bb) by striking the period at
the end and inserting ‘‘; and’’;
and
(IV) by adding at the end the fol-
lowing:
‘‘(E) peer-centered activities encouraging re-
sponsibility and other positive social behaviors
during non-school hours.’’;
(E) in subsection (c) (as redesignated)—
(i) in paragraph (1)—
(I) by striking ‘‘service delivery’’
and inserting ‘‘workforce development’’;
126
(II) by striking ‘‘private industry
council’’ and inserting ‘‘local board’’;
and
(III) by striking ‘‘section 453(c)’’
and inserting ‘‘part D of title IV’’;
(ii) in clauses (i) through (iii) of para-
graph (2)(B), by striking ‘‘service delivery’’
each 
place 
it 
occurs 
and 
inserting
‘‘workforce development’’;
(iii) in paragraph (3)—
(I) in subparagraph (A)—
(aa) in the heading to read
as follows:
‘‘(A) WORK-RELATED ACTIVITIES.—’’;
(bb) in the first sentence, by
inserting after ‘‘work maturity
skills training’’ the following: ‘‘,
summer employment, job search
assistance, job club activities, and
other work-related activities’’;
(cc) in the first sentence, by
striking ‘‘part’’ and inserting
‘‘title’’;
(dd) in the first sentence, by
striking ‘‘by either work experi-
127
ence or other additional services’’
and inserting ‘‘by occupational
and academic learning opportuni-
ties’’;
(ee) in the first sentence, by
striking ‘‘basic education or occu-
pational skills’’ and inserting
‘‘basic education and occupational
skills’’; and
(ff) in the second sentence, by
striking ‘‘, including the Job
Corps’’;
(II) by striking subparagraph
(B);
(III) by redesignating subpara-
graph (C) as subparagraph (B); and
(IV) in subparagraph (B) (as re-
designated)—
(aa) by striking clause (i);
(bb) by redesignating clause
(ii) as clause (i);
(cc) in clause (i) (as redesig-
nated), by striking ‘‘part’’ and in-
serting ‘‘title’’; and
128
(dd) by redesignating clause
(iii) as clause (ii);
(iv) in paragraph (5)—
(I) in the heading, by striking
‘‘COUNSELING’’ and inserting ‘‘FOL-
LOW-UP, COUNSELING’’;
(II) by striking ‘‘part’’ and in-
serting ‘‘title’’; and
(III) by striking ‘‘for a period of
up to 1 year’’;
(v) by striking paragraph (6);
(vi) in paragraph (7), by striking
‘‘service delivery’’ and inserting ‘‘workforce
development’’ and
(vii) by redesignating paragraph (7)
as paragraph (6).
(f) SELECTION OF SERVICE PROVIDERS.—Title II of
the Job Training Partnership Act (29 U.S.C. 1601 et seq.),
as amended by this Act, is further amended by adding after
section 206 (as redesignated), the following:
‘‘SEC. 207. SELECTION OF SERVICE PROVIDERS.
‘‘From funds made available under section 204(b) to
a local workforce development area, the local board for such
local area shall award grants, on a competitive basis, to
129
eligible providers to carry out the disadvantaged youth pro-
grams described in section 206.’’.
(g) EDUCATIONAL LINKAGES.—Title II of the Job
Training Partnership Act (29 U.S.C. 1601 et seq.), as
amended by this Act, is further amended—
(1) by redesignating section 265 as section 208;
and
(2) in section 208 (as redesignated)—
(A) in subsection (a), by striking ‘‘service
delivery’’ and inserting ‘‘workforce development’’;
(B) in subsection (b)—
(i) in the matter preceding paragraph
(1), by striking ‘‘service delivery’’ and in-
serting ‘‘workforce development’’; and
(ii) in paragraph (6) to read as fol-
lows:
‘‘(6) title I of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996;’’;
(C) in subsection (c)—
(i) in the first sentence, by striking
‘‘service delivery’’ and inserting ‘‘workforce
development’’; and
(ii) in the second sentence, by striking
‘‘, including programs conducted under part
A’’; and
130
(D) by striking subsection (d).
(h) TRANSFER OF FUNDS.—Title II of the Job Train-
ing Partnership Act (29 U.S.C. 1601 et seq.), as amended
by this Act, is further amended by striking section 266.
TITLE III—AMENDMENTS TO EM-
PLOYMENT 
AND 
TRAINING
PROGRAMS FOR ADULTS
SEC. 301. ADULT EMPLOYMENT AND TRAINING OPPORTUNI-
TIES GRANTS.
Title III of the Job Training Partnership Act (29
U.S.C. 1651 et seq.) is amended to read as follows:
‘‘TITLE III—ADULT EMPLOYMENT
AND TRAINING OPPORTUNI-
TIES GRANTS
‘‘SEC. 301. PURPOSE.
‘‘The purpose of this title is to establish a high-quality,
efficient system of employment, job training, and related
assistance that—
‘‘(1) provides individuals with choice in the se-
lection of employment and training options that will
facilitate the transition of such individuals into pro-
ductive, high skills, private sector jobs;
‘‘(2) provides quality training of such individ-
uals for the 21st century; and
131
‘‘(3) drives resources and authority to States and
local communities for the design of job training pro-
grams.
‘‘PART A—ADULT EMPLOYMENT AND TRAINING
OPPORTUNITIES GRANTS
‘‘SEC. 311. AUTHORIZATION.
‘‘(a) IN GENERAL.—In the case of each State that in
accordance with the requirements of sections 101 and 102
submits to the Secretary of Labor (hereinafter in this title
referred to as the ‘Secretary’) a State plan, the Secretary
shall provide funds to the State for the purpose of providing
employment, job training, and related assistance for adults
and dislocated workers in the State, in accordance with this
title.
‘‘(b) AMOUNT.—The funds described in subsection (a)
shall consist of the allotments determined for the State
under section 312.
‘‘SEC. 312. ALLOTMENT AMONG STATES.
‘‘(a) IN GENERAL.—Of the amount appropriated pur-
suant to section 3(a)(2) to carry out this title for a fiscal
year, the Secretary—
‘‘(1) shall allot the total amount appropriated
pursuant to section 3(a)(2)(A) in accordance with
subsection (b)(1); and
132
‘‘(2)(A) shall allot 80 percent of the amount ap-
propriated pursuant to section 3(a)(2)(B) in accord-
ance with the subsection (b)(2); and
‘‘(B) shall reserve the remainder of the amount
appropriated pursuant to section 3(a)(2)(B) for use
under part B.
‘‘(b) ALLOTMENT AMONG STATES.—
‘‘(1) ADULT EMPLOYMENT AND TRAINING.—
‘‘(A) 
RESERVATION
FOR
OUTLYING
AREAS.—
‘‘(i) IN GENERAL.—Of the amount al-
lotted under subsection (a)(1), the Secretary
shall allot not more than one quarter of one
percent among the outlying areas.
‘‘(ii) APPLICABILITY
OF
ADDITIONAL
REQUIREMENTS.—Of the amount allotted
under clause (i), the Secretary shall award
grants to Guam, American Samoa, the
Commonwealth of the Northern Mariana Is-
lands, and the freely associated states in ac-
cordance with the requirements of section
203(b)(1).
‘‘(B) STATES.—
‘‘(i) IN GENERAL.—After determining
the amount to be allotted under subpara-
133
graph (A), the Secretary shall allot the re-
maining amount to the States pursuant to
the formula contained in clause (ii).
‘‘(ii) FORMULA.—Subject to the provi-
sions of clause (iii), of the amounts allotted
to States for adult employment and train-
ing under this title for each fiscal year—
‘‘(I) 331⁄3 percent shall be allotted
on the basis of the relative number of
unemployed individuals residing in
areas of substantial unemployment
within each State as compared to the
total number of such unemployed indi-
viduals in all such areas of substantial
unemployment in all States;
‘‘(II) 331⁄3 percent shall be allot-
ted on the basis of the relative excess
number of unemployed individuals
within each State as compared to the
total excess number of unemployed in-
dividuals in all States; and
‘‘(III) 331⁄3 percent shall be allot-
ted on the basis of the relative number
of economically disadvantaged adults
within each State as compared to the
134
total number of economically disadvan-
taged adults in all States.
‘‘(iii) MINIMUM ALLOTMENT.—
‘‘(I) MINIMUM PERCENTAGE.—No
State shall be allotted less than 90 per-
cent of its allotment percentage for the
fiscal year preceding the fiscal year for
which the determination is made.
‘‘(II) MAXIMUM
PERCENTAGE.—
No State shall be allotted more than
130 percent of its allotment percentage
for the fiscal year preceding the fiscal
year for which the determination is
made.
‘‘(iv) SMALL STATE MINIMUM ALLOT-
MENT.—No State shall receive less than one-
quarter of one percent of the amount avail-
able under this subparagraph for a fiscal
year. Amounts necessary for increasing such
payments to States to comply with the pre-
ceding sentence shall be obtained by ratably
reducing the amounts to be paid to other
States.
‘‘(2) DISLOCATED WORKERS.—
135
‘‘(A) 
RESERVATION
FOR
OUTLYING
AREAS.—
‘‘(i) IN GENERAL.—Of the amount al-
lotted under subsection (a)(2)(A), the Sec-
retary shall allot not more than one quarter
of one percent among the outlying areas.
‘‘(ii) APPLICABILITY
OF
ADDITIONAL
REQUIREMENTS.—Of the amount allotted
under clause (i), the Secretary shall award
grants to Guam, American Samoa, the
Commonwealth of the Northern Mariana Is-
lands, and the freely associated states in ac-
cordance with the requirements of section
203(b)(1).
‘‘(B) STATES.—
‘‘(i) IN GENERAL.—After determining
the amount to be allotted under subpara-
graph (A), the Secretary shall allot the re-
maining amount to the States pursuant to
the formula contained in clause (ii).
‘‘(ii) FORMULA.—Subject to the provi-
sions of clause (iii), of the amounts allotted
to States for dislocated worker employment
and training under this title for each fiscal
year—
136
‘‘(I) 331⁄3 percent shall be allotted
among the States on the basis of the
relative number of unemployed indi-
viduals who reside in each State as
compared to the total number of unem-
ployed individuals in all the States;
‘‘(II) 331⁄3 percent shall be allot-
ted among the States on the basis of
the relative excess number of unem-
ployed individuals who reside in each
State as compared to the total excess
number of unemployed individuals in
all the States (for purposes of this sub-
clause, the term ‘excess number’ means
the number which represents unem-
ployed individuals in excess of 4.5 per-
cent of the civilian labor force in the
State); and
‘‘(III) 331⁄3 percent shall be allot-
ted among the States on the basis of
the relative number of individuals who
have been unemployed for 15 weeks or
more and who reside in each State as
compared to the total number of such
individuals in all the States.
137
‘‘(iii) MINIMUM ALLOTMENT.—
‘‘(I) MINIMUM PERCENTAGE.—No
State shall be allotted less than 90 per-
cent of its allotment percentage for the
fiscal year preceding the fiscal year for
which the determination is made.
‘‘(II) MAXIMUM
PERCENTAGE.—
No State shall be allotted more than
130 percent of its allotment percentage
for the fiscal year preceding the fiscal
year for which the determination is
made.
‘‘(iv) SMALL STATE MINIMUM ALLOT-
MENT.—No State shall receive less than one-
quarter of one percent of the amount avail-
able under this subparagraph for a fiscal
year. Amounts necessary for increasing such
payments to States to comply with the pre-
ceding sentence shall be obtained by ratably
reducing the amounts to be paid to other
States.
‘‘SEC. 313. ALLOCATION WITHIN STATES.
‘‘(a) RESERVATIONS FOR STATE ACTIVITIES.—
‘‘(1) ADULT EMPLOYMENT AND TRAINING.—
138
‘‘(A) IN
GENERAL.—The Governor of the
State shall reserve not more than 15 percent of
the total amount allotted to the State under sec-
tion 312(b)(1) for a fiscal year for statewide ac-
tivities for employment, job training, and related
assistance for adults.
‘‘(B) ALLOWABLE ACTIVITIES.—Such activi-
ties may include—
‘‘(i) subject to subparagraph (C), ad-
ministration by the State of programs
under this title;
‘‘(ii) capacity building and technical
assistance to local workforce development
areas, full service employment and training
delivery systems, and service providers in-
cluding the development and training of
staff and the development of exemplary pro-
gram activities;
‘‘(iii) incentives for program coordina-
tion and integration, performance awards,
and research and demonstrations;
‘‘(iv) implementation of innovative in-
cumbent worker training programs, which
may include the establishment and imple-
mentation of an employer loan program to
139
assist in skills upgrading, and the establish-
ment and implementation of programs tar-
geted to empowerment zones;
‘‘(v) implementation of experimen-
tation, model activities, pilot projects, and
demonstration projects which further the
goals and purposes of this Act;
‘‘(vi) additional assistance for the de-
velopment and implementation of the full
service employment and training delivery
system established in accordance with sec-
tion 123;
‘‘(vii) support for a common manage-
ment information system across employ-
ment, training, literacy, and human re-
source programs as identified in section
103;
‘‘(viii) support for the identification of
eligible training providers as required
under section 124; and
‘‘(ix) implementation of innovative
programs for displaced homemakers and
programs to increase the number of individ-
uals training and placed in nontraditional
employment.
140
‘‘(C) LIMITATION.—Of the amount reserved
by the Governor under subparagraph (A) not
more than 5 percent of the total amount allotted
to the State under section 312(b)(1) for a fiscal
year may be used for administration by the
State of programs under this part.
‘‘(2) DISLOCATED WORKERS EMPLOYMENT AND
TRAINING.—
‘‘(A) IN
GENERAL.—The Governor of the
State shall reserve not more than 30 percent of
the total amount allotted to the State under sec-
tion 312(b)(2) for a fiscal year for statewide ac-
tivities for employment, job training, and related
assistance for dislocated workers.
‘‘(B) REQUIRED ACTIVITIES.—Such activi-
ties shall include—
‘‘(i) rapid response activities carried
out by a designated State dislocated worker
unit, working in conjunction with the local
workforce development board and the chief
elected official in an affected local workforce
development area; and
‘‘(ii) additional assistance to areas
that experience disasters, mass layoffs or
plant closings, or other events that precipi-
141
tate substantial increases in the number of
unemployed workers, working in conjunc-
tion with the local workforce development
board and the chief elected official in af-
fected local workforce development areas.
‘‘(C) 
DISCRETIONARY
ACTIVITIES.—Such
activities may include those activities described
in paragraph (1)(B).
‘‘(D) LIMITATION.—Of the amount reserved
by the Governor under subparagraph (A) not
more than 10 percent of the total amount allot-
ted to the State under section 312(b)(2) for a fis-
cal year may be used for activities described in
paragraph (1)(B) and of that amount not more
than 5 percent of the total amount allotted to the
State under section 312(b)(2) for a fiscal year
may be used for administration by the State of
programs under this part.
‘‘(b) WITHIN STATE ALLOCATION.—
‘‘(1) ALLOCATION.—
‘‘(A) IN
GENERAL.—The Governor of the
State shall allocate the remainder of the amounts
allotted to the State under section 312 to
workforce development areas designated under
section 121 for the purpose of providing a single
142
system of employment and training services for
adults and dislocated workers in accordance with
section 314.
‘‘(B) 
ADDITIONAL
REQUIREMENTS.—(i)
Funds allocated under paragraph (2)(B), shall
be used by a local workforce development area to
contribute proportionately to the costs of the
local full service employment and training deliv-
ery system, and to pay for services provided to
adults, in the local area, consistent with section
314.
‘‘(ii) Funds allocated under paragraph
(2)(C), shall be used by a local workforce devel-
opment area to contribute proportionately to the
costs of the local full service employment and
training delivery system, and to pay for services
provided to dislocated workers, in the local area,
consistent with section 314.
‘‘(2) METHODS.—
‘‘(A) IN GENERAL.—The Governor, through
the collaborative process under section 102, and
after consultation with local chief elected officials
in the local workforce development areas, shall
allocate the remainder of funds described in sub-
section (a)(1)(A) for adult employment and
143
training in accordance with subparagraph (B),
and the funds described in subsection (a)(2)(A)
for dislocated workers in accordance with sub-
paragraph (C).
‘‘(B) ADULT
EMPLOYMENT
AND
TRAINING
FORMULA.—In allocating the funds for adult em-
ployment and training, the individuals described
in subparagraph (A) shall take into account—
‘‘(i) the relative number of unemployed
individuals residing in local areas of sub-
stantial 
unemployment 
within 
each
workforce development area in the State as
compared to the total number of such unem-
ployed individuals in all such areas of sub-
stantial unemployment in the State;
‘‘(ii) the relative excess number of un-
employed individuals within each local
workforce development area of the State as
compared to the total excess number of un-
employed individuals in the State;
‘‘(iii) the relative number of economi-
cally disadvantaged adults within each
workforce development area of the State as
compared to the total number of economi-
cally disadvantaged adults in the State; and
144
‘‘(iv) such other factors as determined
appropriate by the State.
‘‘(C) DISLOCATED WORKER FORMULA.—In
allocating funds for dislocated workers, individ-
uals described in subparagraph (A) shall take
into account—
‘‘(i) the relative number of unemployed
individuals residing in local areas of sub-
stantial 
unemployment 
within 
each
workforce development area in the State as
compared to the total number of such unem-
ployed individuals in all such areas of sub-
stantial unemployment in the State;
‘‘(ii) the relative excess number of un-
employed individuals within each local
workforce development area of the State as
compared to the total excess number of un-
employed individuals in the State;
‘‘(iii) the relative number of individ-
uals who have been unemployed for 15
weeks or more within each workforce devel-
opment area of the State as compared to the
total number of such unemployed individ-
uals in the State; and
145
‘‘(iv) such other factors as determined
appropriate by the State, which may in-
clude—
‘‘(I) insured unemployment data;
‘‘(II) unemployment concentra-
tions;
‘‘(III) plant closing and mass lay-
off data;
‘‘(IV) declining industries data;
‘‘(V) 
farmer-rancher 
economic
hardship data; and
‘‘(VI) 
long-term 
unemployment
data.
‘‘(3) ADDITIONAL FACTORS.—In establishing the
formulas described in paragraph (2), the Governor
shall ensure that—
‘‘(A) such formulas distribute funds equi-
tably throughout the State;
‘‘(B) no one factor described in paragraph
(2) receives disproportionate weighting; and
‘‘(C) such formulas protect local workforce
development areas from significant funding
shifts from year to year.
‘‘(4) TRANSFER AUTHORITY.—A local workforce
development area is authorized to transfer up to 20
146
percent of the funds received under this subsection be-
tween adult employment and training and dislocated
worker allocations if such transfer is approved by the
Governor.
‘‘SEC. 314. USE OF AMOUNTS.
‘‘(a) CORE SERVICES.—Amounts allocated for adults
under section 313(b)(2)(B) and for dislocated workers under
section 313(b)(2)(C) shall be used to provide core services
described in section 123(d) to adults and dislocated workers,
respectively, through a full service employment and train-
ing delivery system in accordance with such section.
‘‘(b) INTENSIVE SERVICES.—
‘‘(1) IN GENERAL.—Amounts allocated for adults
under section 313(b)(2)(B) and for dislocated workers
under section 313(b)(2)(C) shall be used to provide
intensive services to adults and dislocated workers, re-
spectively—
‘‘(A)(i) who are unable to obtain employ-
ment through core services under subsection (a);
and
‘‘(ii) who have been determined to be in
need of more intensive services in order to gain
employment; or
147
‘‘(B)(i) who are employed but are economi-
cally disadvantaged despite such employment;
and
‘‘(ii) who are determined to be in need of
such intensive services in order to gain employ-
ment that allows for self-sufficiency.
‘‘(2) DELIVERY
OF
SERVICES.—Such intensive
services shall be provided—
‘‘(A) directly through full service eligible
providers identified pursuant to section 123(c);
or
‘‘(B) through contracts through full service
employment and training delivery systems with
service providers approved by the local workforce
development board, which may include private,
for-profit providers.
‘‘(3) TYPES OF SERVICES.—Such intensive serv-
ices may include the following:
‘‘(A) Comprehensive and specialized assess-
ments of the skill levels and service needs of
adults, which may include—
‘‘(i) diagnostic testing and other assess-
ment tools; and
148
‘‘(ii) in-depth interviewing and evalua-
tion to identify employment barriers and
appropriate employment goals.
‘‘(B) Development of an individual employ-
ment plan, to identify the employment goals, ap-
propriate achievement objectives, and the appro-
priate combination of services for the participant
to achieve the employment goal.
‘‘(C) Group counseling.
‘‘(D) Individual counseling and career
planning.
‘‘(E) Case management for participants re-
ceiving training services under subsection (c).
‘‘(F) Follow-up services for participants
placed in training or employment, for up to 1
year, to assist in retention or advancement in
employment.
‘‘(c) TRAINING SERVICES.—
‘‘(1) IN GENERAL.—Amounts allocated for adults
under section 313(b)(2)(B) and for dislocated workers
under section 313(b)(2)(C) shall be used to provide
training services to adults and dislocated workers, re-
spectively—
‘‘(A) who are unable to obtain employment
through core services under subsection (a);
149
‘‘(B) who are in need of training services in
order to gain employment as a result of deter-
minations made through—
‘‘(i) initial assessments under sub-
section (a); or
‘‘(ii) comprehensive and specialized as-
sessments under subsection (b)(3)(A); or
‘‘(C)(i) who are employed but are economi-
cally disadvantaged despite such employment;
and
‘‘(ii) who are determined to be in need of
such training services in order to gain employ-
ment that allows for self-sufficiency.
‘‘(2) PARTICIPANT QUALIFICATION.—
‘‘(A) REQUIREMENTS.—Except as provided
in subparagraph (B), provision of such training
services shall be limited to participants who—
‘‘(i) are unable to obtain other grant
assistance for such services, including Fed-
eral Pell Grants established under title IV of
the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.); or
‘‘(ii) require assistance beyond the as-
sistance made available under other grant
150
assistance programs, including Federal Pell
Grants.
‘‘(B) REIMBURSEMENTS.—Training services
may be provided under this subsection to an in-
dividual who otherwise meets the requirements of
this subsection while an application for a Fed-
eral Pell Grant or other grant assistance is
pending, except that if such individual is subse-
quently awarded a Federal Pell Grant or other
grant assistance, appropriate reimbursement
shall be made to the local workforce development
area from such Federal Pell Grant or other grant
assistance.
‘‘(3) PROVIDER QUALIFICATION.—Such training
services shall be provided through training providers
identified under in accordance with section 124.
‘‘(4) TYPES OF SERVICES.—Such training serv-
ices may include the following:
‘‘(A) Basic skills training, including reme-
dial education, literacy training, and English
literacy program instruction.
‘‘(B) Occupational skills training, including
training for nontraditional employment.
‘‘(C) On-the-job training.
151
‘‘(D) Programs that combine workplace
training with related instruction, which may in-
clude cooperative education programs.
‘‘(E) Training programs operated by the
private sector.
‘‘(F) Skill upgrading and retraining.
‘‘(G) Entrepreneurial training.
‘‘(H) Employability training to enhance
basic workplace competencies.
‘‘(I) Customized training conducted with a
commitment by an employer or group of employ-
ers to employ an individual upon successful com-
pletion of the training.
‘‘(5) INDIVIDUAL CHOICE REQUIREMENTS.—
‘‘(A) IN
GENERAL.—All training services
under this section shall be provided through serv-
ice delivery methods that, to the extent prac-
ticable, maximize consumer choice in the selec-
tion of eligible providers of training services.
‘‘(B) INFORMATION
ON
ELIGIBLE
PROVID-
ERS.—Each local workforce development board,
through the full service employment and training
delivery system, shall make available—
‘‘(i) the list of eligible providers of
training services required under section
152
124, with a description of the training
courses available from such providers and a
list of the names of on-the-job training pro-
viders; and
‘‘(ii) the performance information de-
scribed in section 124 relating to such pro-
viders.
‘‘(C) PURCHASE
OF
SERVICES.—An indi-
vidual eligible for training services under this
section may select an eligible provider of train-
ing services from the list of providers described
in subparagraph (B)(i). Upon such selection, the
full service eligible provider shall, to the extent
practicable, refer such individual to the selected
eligible provider of training services and arrange
for payment for such services.
‘‘(6) ADDITIONAL REQUIREMENTS.—
‘‘(A) USE OF SKILL GRANTS.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii) and clause (iii), training serv-
ices under this section shall be provided
through the use of skill grants in accordance
with this subsection, and shall be distrib-
uted to eligible individuals through full
153
service eligible providers or affiliated sites
as described in section 123.
‘‘(ii) EXCEPTIONS.—Training services
authorized under this title may be provided
pursuant to a contract for services in lieu
of a skill grant if the requirements of para-
graph (5) are met and if—
‘‘(I) such services are on-the-job
training provided by an employer;
‘‘(II) the local workforce develop-
ment board determines there are an in-
sufficient number of qualified providers
of training services in the workforce
development area to accomplish the
purposes of a skill grant system;
‘‘(III) the local workforce develop-
ment board determines that the quali-
fied providers of training services in
the workforce development area are un-
able to provide effective services to spe-
cial participant populations; or
‘‘(IV) the local workforce develop-
ment board decides to enter into a di-
rect training contract with a commu-
nity based organization.
154
‘‘(iii) TRANSITION.—Each State shall,
not later than three years after the date of
the enactment of the Employment, Train-
ing, and Literacy Enhancement Act of
1997, fully implement the requirements of
clause (i). Nothing in this Act shall prohibit
a State from beginning such implementa-
tion at an earlier date.
‘‘(B) LINKAGE
TO
OCCUPATIONS
IN
DE-
MAND.—Training services under this subsection
shall be directly linked to occupations for which
there is a demand in the local workforce develop-
ment area, or in another area to which an adult
receiving such services is willing to relocate, ex-
cept that a local workforce development board
may approve training in occupations determined
by the local board to be in sectors of the economy
which have a high potential for sustained de-
mand or growth in the local workforce develop-
ment area.
‘‘(d) ADDITIONAL USES OF AMOUNTS.—
‘‘(1) SUPPORTIVE SERVICES.—Amounts allocated
for adults under section 313(b)(2)(B) and for dis-
located workers under section 313(b)(2)(C) may be
155
used to provide supportive services for adults and dis-
located workers, respectively—
‘‘(A) who are receiving assistance under
any of subsections (a) through (c); and
‘‘(B) who are unable to receive such services
through other programs providing such services.
‘‘(2) NEEDS-RELATED PAYMENTS.—
‘‘(A) 
IN
GENERAL.—Amounts 
allocated
under section 313(b) may be used to provide
needs-related payments to adults and dislocated
workers who are unemployed and do not qualify
for (or have ceased to qualify for) unemployment
compensation for the purpose of enabling such
individuals to participate in training programs
under subsection (c).
‘‘(B) ADDITIONAL
ELIGIBILITY
REQUIRE-
MENTS.—In addition to the requirements con-
tained in subparagraph (A), a dislocated worker
who has exhausted unemployment insurance ben-
efits may be eligible to receive needs-related pay-
ments under this paragraph only if such worker
was enrolled in training by the end of the 13th
week of the worker’s most recent layoff, or, if
later, by the end of the 8th week after the worker
156
is informed that a short-term layoff will in fact
exceed 6 months.
‘‘(e) PRIORITY.—From funds allocated to local
workforce development areas for adult employment and
training under section 313(b)(1)(B)(i), priority shall be
given to welfare recipients and other economically dis-
advantaged individuals with multiple barriers to employ-
ment for receipt of intensive services and training services
provided under subsections (b) and (c) of section 314, re-
spectively.
‘‘PART B—NATIONAL PROGRAMS
‘‘SEC. 321. NATIONAL EMERGENCY GRANTS.
‘‘(a) IN GENERAL.—From the amount reserved under
section 312(a)(2), the Secretary of Labor is authorized to
award national emergency grants in a timely manner—
‘‘(1) to an entity described in subsection (b) to
provide employment and training assistance to work-
ers affected by major economic dislocations, such as
plant closures, mass layoffs, or closures and realign-
ments of military installations; and
‘‘(2) to provide assistance to the Governor of any
State within the boundaries of which is an area that
has suffered an emergency or a major disaster as de-
fined in paragraphs (1) and (2), respectively, of sec-
tion 102 of The Robert T. Stafford Disaster Relief
157
and Emergency Assistance Act (42 U.S.C. 5122 (1)
and (2)) (referred to in this section as the ‘disaster
area’).
‘‘(b) EMPLOYMENT AND TRAINING ASSISTANCE RE-
QUIREMENTS.—
‘‘(1) APPLICATION.—To be eligible to receive a
grant under subsection (a)(1), an entity shall submit
an application to the Secretary of Labor at such time,
in such manner, and accompanied by such informa-
tion, as the Secretary may reasonably require.
‘‘(2) ELIGIBLE
ENTITY.—For purposes of this
section, the term ‘entity’ means a State, local
workforce development board, employer or employer
association, worker-management transition assistance
committee or other employer-employee entity, rep-
resentative of employees, community development cor-
poration or community-based organization, or an in-
dustry consortia
‘‘(c) DISASTER RELIEF EMPLOYMENT ASSISTANCE
REQUIREMENTS.—
‘‘(1) IN GENERAL.—Funds made available under
subsection (a)(2)—
‘‘(A) shall be used exclusively to provide em-
ployment on projects that provide food, clothing,
shelter, and other humanitarian assistance for
158
disaster victims, and projects regarding demoli-
tion, cleaning, repair, renovation, and recon-
struction of damaged and destroyed structures,
facilities, and lands located within the disaster
area; and
‘‘(B) may be expended through public and
private agencies and organizations engaged in
such projects.
‘‘(2) ELIGIBILITY.—An individual shall be eligi-
ble to be offered disaster relief employment under this
section if such individual is a dislocated worker or is
temporarily or permanently laid off as a consequence
of the disaster.
‘‘(3) LIMITATIONS ON DISASTER RELIEF EMPLOY-
MENT.—No individual shall be employed under this
part for more than 6 months for work related to re-
covery from a single natural disaster.
‘‘SEC. 322. SKILL UPGRADING PROJECTS IN ENTERPRISE
ZONES OR EMPOWERMENT COMMUNITIES.
‘‘From funds made available under section 312(a)(2),
the Secretary of Labor is authorized to award grants to as-
sist projects that provide training to upgrade the skill of
employed workers who reside and are employed in enter-
prise zones or empowerment communities.’’.
159
TITLE 
IV—AMENDMENTS 
TO
FEDERALLY 
ADMINISTERED
PROGRAMS
Subtitle A—Employment and Train-
ing Programs for Native Ameri-
cans and Migrant and Seasonal
Farmworkers
SEC. 401. NATIVE AMERICAN PROGRAM.
Section 401 of the Job Training Partnership Act (29
U.S.C. 1671) is amended to read as follows:
‘‘SEC. 401. NATIVE AMERICAN PROGRAMS.
‘‘(a) PURPOSE.—
‘‘(1) IN GENERAL.—The purpose of this section is
to support employment and training activities for In-
dian, Alaska Native, and Native Hawaiian individ-
uals in order—
‘‘(A) to develop more fully the academic, oc-
cupational, and literacy skills of such individ-
uals;
‘‘(B) to make such individuals more com-
petitive in the workforce; and
‘‘(C) to promote the economic and social de-
velopment of Indian, Alaska Native, and Native
Hawaiian communities in accordance with the
goals and values of such communities.
160
‘‘(2) INDIAN
POLICY.—All programs assisted
under this section shall be administered in a manner
consistent with the principles of the Indian Self-De-
termination and Education Assistance Act (25 U.S.C.
450 et seq.) and the government-to-government rela-
tionship between the Federal Government and Indian
tribal governments.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) ALASKA NATIVE.—The term ‘Alaska Native’
means a Native as such term is defined in section
3(b) of the Alaska Native Claims Settlement Act (43
U.S.C. 1602(b)).
‘‘(2) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANI-
ZATION.—The terms ‘Indian’, ‘Indian tribe’, and
‘tribal organization’ have the meanings given such
terms in subsections (d), (e), and (l), respectively, of
section 4 of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b).
‘‘(3) NATIVE HAWAIIAN AND NATIVE HAWAIIAN
ORGANIZATION.—The terms ‘Native Hawaiian’ and
‘Native Hawaiian organization’ have the meanings
given such terms in paragraphs (1) and (3), respec-
tively, of section 9212 of the Native Hawaiian Edu-
cation Act (20 U.S.C. 7912).
161
‘‘(c) PROGRAM AUTHORIZED.—The Secretary of Labor
shall make grants to, or enter into contracts or cooperative
agreements with, Indian tribes, tribal organizations, Alaska
Native entities, Indian-controlled organizations serving In-
dians, or Native Hawaiian organizations to carry out the
authorized activities described in subsection (d).
‘‘(d) AUTHORIZED ACTIVITIES.—
‘‘(1) IN GENERAL.—Funds made available under
this section shall be used to carry out the activities
described in paragraphs (2) and (3) that—
‘‘(A) are consistent with this section; and
‘‘(B) are necessary to meet the needs of In-
dians or Native Hawaiians preparing to enter,
renter, or retain unsubsidized employment.
‘‘(2) EMPLOYMENT
AND
TRAINING
ACTIVITIES
AND SUPPLEMENTAL SERVICES.—
‘‘(A) IN GENERAL.—Funds made available
under this section shall be used for—
‘‘(i) comprehensive workforce and ca-
reer development activities for Indians or
Native Hawaiians; or
‘‘(ii) supplemental services for Indian
or Native Hawaiian youth on or near In-
dian reservations and in Oklahoma, Alaska,
or Hawaii.
162
‘‘(B) SPECIAL RULE.—Notwithstanding any
other provision of this section, individuals who
were eligible to participate in programs under
section 401 of the Job Training Partnership Act
(29 U.S.C. 1671) (as such section was in effect
on the day before the date of enactment of this
Act) shall be eligible to participate in an activ-
ity assisted under subparagraph (A)(i).
‘‘(e) PROGRAM PLAN.—In order to receive a grant or
enter into a contract or cooperative agreement under this
section an entity described in subsection (c) shall submit
to the Secretary of Labor a plan that describes a 2-year
strategy for meeting the needs of Indian or Native Hawai-
ian individuals, as appropriate, in the area served by such
entity. Such plan—
‘‘(1) shall be consistent with the purposes of this
section;
‘‘(2) shall identify the population to be served;
‘‘(3) shall identify the education and employ-
ment needs of the population to be served and the
manner in which the services to be provided will
strengthen the ability of the individuals served to ob-
tain or retain unsubsidized employment;
163
‘‘(4) shall describe the services to be provided and
the manner in which such services are to be inte-
grated with other appropriate services; and
‘‘(5) shall describe the goals and benchmarks to
be used to assess the performance of entities in carry-
ing out the activities assisted under this section.
‘‘(f) CONSOLIDATION OF FUNDS.—Each entity receiv-
ing assistance under this section may consolidate such as-
sistance with assistance received from related programs in
accordance with the provisions of the Indian Employment,
Training and Related Services Demonstration Act of 1992
(25 U.S.C. 3401 et seq.).
‘‘(g) NONDUPLICATIVE
AND NONEXCLUSIVE SERV-
ICES.—Nothing in this section shall be construed—
‘‘(1) to limit the eligibility of any entity de-
scribed in subsection (c) to participate in any activ-
ity offered by a State or local entity under this Act;
or
‘‘(2) to preclude or discourage any agreement,
between any entity described in subsection (c) and
any State or local entity, to facilitate the provision
of services by such entity or to the population served
by such entity.
‘‘(h) ADMINISTRATIVE PROVISIONS.—
164
‘‘(1) ORGANIZATIONAL UNIT ESTABLISHED.—The
Secretary of Labor shall designate a single organiza-
tional unit that shall have as its primary responsibil-
ity the administration of the activities authorized
under this section.
‘‘(2) REGULATIONS.—The Secretary of Labor
shall consult with the entities described in subsection
(c)(1) in establishing regulations to carry out this sec-
tion, including performance measures for entities re-
ceiving assistance under such subsection, taking into
account the economic circumstances of such groups,
and in developing a funding distribution plan that
takes into consideration previous levels of funding.
‘‘(3) TECHNICAL ASSISTANCE.—The Secretary of
Labor, through the unit established under paragraph
(1), are authorized to provide technical assistance to
entities described in subsection (c) that receive assist-
ance under this section to enable such entities to im-
prove the workforce and career development activities
provided by such entities.’’.
SEC. 402. MIGRANT AND SEASONAL FARMWORKER PRO-
GRAM.
Section 402 of the Job Training Partnership Act (29
U.S.C. 1672) is amended to read as follows:
165
‘‘SEC. 402. MIGRANT AND SEASONAL FARMWORKER PRO-
GRAM.
‘‘(a) IN GENERAL.—The Secretary of Labor shall make
grants to, or enter into contracts with, eligible entities to
carry out the activities described in subsection (d).
‘‘(b) ELIGIBLE ENTITIES.—To be eligible to receive a
grant or enter into a contract under this section, an entity
shall have an understanding of the problems of migrant
farmworkers and seasonal farmworkers, a familiarity with
the area to be served, and the ability to demonstrate a ca-
pacity to administer effectively a diversified program of
workforce and career development activities for migrant
farmworkers and seasonal farmworkers.
‘‘(c) PROGRAM PLAN.—
‘‘(1) IN GENERAL.—To be eligible to receive a
grant or enter into a contract under this section, an
entity described in subsection (b) shall submit to the
Secretary of Labor a plan that describes a 2-year
strategy for meeting the needs of migrant farmworkers
and seasonal farmworkers and their dependents in the
area to be served by such entity.
‘‘(2) CONTENTS.—Such plan shall—
‘‘(A) identify the education and employ-
ment needs of the population to be served and the
manner in which the services to be provided will
strengthen the ability of the eligible farmworkers
166
and dependents to obtain or be retained in
unsubsidized employment or stabilize their
unsubsidized employment;
‘‘(B) describe the related assistance and
supportive services to be provided and the man-
ner in which such services are to be integrated
and coordinated with other appropriate services;
and
‘‘(C) describe the goals and benchmarks to
be used to assess the performance of such entity
in carrying out the activities assisted under this
section.
‘‘(d) AUTHORIZED ACTIVITIES.—Funds made avail-
able under this section shall be used to carry out comprehen-
sive workforce and career development activities and related
services for migrant farmworkers and seasonal farmworkers
which may include employment, training, educational as-
sistance, literacy assistance, an English literacy program,
worker safety training, housing, supportive services, and the
continuation of the case management database on partici-
pating migrant farmworkers and seasonal farmworkers.
‘‘(e) CONSULTATION WITH GOVERNORS AND LOCAL
BOARDS.—In making grants and entering into contracts
under this section, the Secretary of Labor shall consult with
the Governors and local boards of the States in which the
167
eligible entities will carry out the activities described in
subsection (d).
‘‘(f) REGULATIONS.—The Secretaries shall consult
with migrant and seasonal farmworker groups and States
in establishing regulations to carry out this section, includ-
ing performance measures for eligible entities which take
into account the economic circumstances of migrant farm-
workers and seasonal farmworkers.
‘‘(g) DEFINITIONS.—As used in this section:
‘‘(1) MIGRANT
FARMWORKER.—The term ‘mi-
grant farmworker’ means a seasonal farmworker
whose farm work requires travel such that the worker
is unable to return to a permanent place of residence
within the same day.
‘‘(2) SEASONAL FARMWORKER.—The term ‘sea-
sonal farmworker’ means a person who during the eli-
gibility determination period (12 consecutive months
out of 24 months prior to application)—
‘‘(A) has been primarily employed in farm
work that is characterized by chronic unemploy-
ment or under employment; and
‘‘(B) is economically disadvantaged at the
time of application.’’.
168
Subtitle B—Job Corps
SEC. 411. STATEMENT OF PURPOSE.
Section 421 of the Job Training Partnership Act (29
U.S.C. 1691) is amended in the first sentence by inserting
after ‘‘a distinct national program’’ the following: ‘‘carried
out in collaboration with States and localities’’.
SEC. 412. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.
Section 423 of the Job Training Partnership Act (29
U.S.C. 1693) is amended—
(1) in paragraph (1), by striking ‘‘14’’ and in-
serting ‘‘16’’;
(2) in paragraph (2), by striking ‘‘, and who re-
quires’’ and all that follows and inserting a semi-
colon;
(3) by redesignating paragraphs (3), (4), and (5)
as paragraphs (4), (5), and (6), respectively; and
(4) by inserting after paragraph (2) the follow-
ing:
‘‘(3) is an individual who—
‘‘(A) is deficient in basic skills;
‘‘(B) is a school dropout;
‘‘(C) is homeless or a runaway;
‘‘(D) is a single parent; or
‘‘(E) requires additional education, train-
ing, or intensive counseling and related assist-
169
ance in order to secure and hold meaningful em-
ployment, participate successfully in regular
school work, qualify for other suitable training
programs, or satisfy Armed Forces require-
ments;’’.
SEC. 413. SCREENING AND SELECTION OF APPLICANTS;
GENERAL PROVISIONS.
Section 424(a) of the Job Training Partnership Act
(29 U.S.C. 1694(a)) is amended—
(1) in the first sentence, by adding at the end be-
fore the period the following: ‘‘after considering input
from State, local, and community groups and other
interested parties’’;
(2) in the second sentence—
(A) by inserting after ‘‘public employment
offices,’’ the following: ‘‘full service eligible pro-
viders,’’; and
(B) by striking ‘‘and agencies’’ and insert-
ing ‘‘and entities’’; and
(3) in the third sentence, by inserting after ‘‘The
rules shall’’ the following: ‘‘require Job Corps appli-
cants to pass background checks, conducted in accord-
ance with procedures established by the Secretary,
and’’.
170
SEC. 414. JOB CORPS CENTERS.
Section 427 of the Job Training Partnership Act (29
U.S.C. 1697) is amended—
(1) in subsection (a)(1), by adding at the end the
following: ‘‘In selecting any entity to serve as an op-
erator or to provide services for a Job Corps center,
the Secretary shall take into consideration the pre-
vious performance of the entity, if any, relating to op-
erating or providing services for a Job Corps center.’’;
(2) in subsection (c) to read as follows:
‘‘(c) The Secretary may select an entity to operate a
Civilian Conservation Center on a competitive basis if such
a center fails to meet performance criteria established by
the Secretary.’’; and
(3) by adding at the end the following:
‘‘(d) Notwithstanding any other provision of law, any
proceeds from the sale of Job Corps center facilities shall
be retained by the Secretary to carry out the Job Corps
program.’’.
SEC. 415. STANDARDS OF CONDUCT.
Section 430(a) of the Job Training Partnership Act
(29 U.S.C. 1700(a)) is amended—
(1) in the first sentence, by adding at the end be-
fore the period the following: ‘‘, including a policy of
zero tolerance for violence and illegal drugs under
which enrollees will receive mandatory terminations
171
for specific actions in accordance with regulations is-
sued by the Secretary’’;
(2) by inserting after the first sentence the fol-
lowing: ‘‘As part of the zero tolerance policy, drug
testing of all students shall be required in accordance
with procedures established by the Secretary.’’; and
(3) in the third sentence, by inserting after ‘‘If
violations’’ the following: ‘‘of center standards other
than those covered by the zero tolerance policy’’.
SEC. 416. COUNSELING AND JOB PLACEMENT.
Section 432(b) of the Job Training Partnership Act
(29 U.S.C. 1702(b)) is amended in the first sentence by in-
serting after ‘‘determine their capabilities and’’ the follow-
ing: ‘‘, based on these capabilities,’’.
SEC. 417. EXPERIMENTAL AND DEVELOPMENTAL PROJECTS
AND 
COORDINATION 
WITH 
OTHER 
PRO-
GRAMS.
Section 433(c)(1) of the Job Training Partnership Act
(29 U.S.C. 1703(c)(1)) is amended in the first sentence by
striking ‘‘disseminate information’’ and inserting ‘‘dissemi-
nate to Federal, State, and local workforce development pro-
grams information and best practices’’.
172
Subtitle C—National Activities
SEC. 421. RESEARCH, DEMONSTRATION, EVALUATION, AND
CAPACITY BUILDING.
Part D of the Job Training Partnership Act (29
U.S.C. 1731 et seq.) is amended by striking sections 451
through 454 and inserting the following:
‘‘SEC. 451. RESEARCH, DEMONSTRATION, EVALUATION, AND
CAPACITY BUILDING.
‘‘(a) IN GENERAL.—The Secretary is authorized to es-
tablish and carry out research, demonstration, evaluation,
and capacity building activities described in subsections (b)
through (f).
‘‘(b) NATIONAL PARTNERSHIP AND SPECIAL TRAIN-
ING.—The Secretary may award special grants to eligible
entities to carry out programs that are most appropriately
administered at the national level. Such activities may in-
clude—
‘‘(1) partnership programs with national organi-
zations with special expertise in developing, organiz-
ing, and administering employment and training
services at the national, State, and local levels, such
as industry and labor associations, public interest
groups, community-based organizations representative
of groups that encounter special difficulties in the
labor market, and other organizations with special
173
knowledge or capabilities in education and training;
and
‘‘(2) activities that—
‘‘(A) address industry-wide skill shortages;
‘‘(B) meet training needs that are best ad-
dressed on a multi-state basis;
‘‘(C) further the goals of increasing the com-
petitiveness of the United States labor force;
‘‘(D) require technical expertise available at
the national level to serve the needs of particular
client groups that encounter significant barriers
to employment and who the Secretary determines
require special assistance; or
‘‘(E) promote and experiment with model
activities, pilot projects, and demonstration
projects which further the goals and purposes of
this Act.
‘‘(c) RESEARCH.—The Secretary is authorized to con-
duct continuing research, which may include studies and
other methods and techniques, that will aid in the solution
of the employment and training problems of the United
States. Such studies may include the extent to which indi-
viduals who participate in programs established under this
title achieve self-sufficiency as a result of such participa-
tion, including the identification by States and localities,
174
to the extent practicable, of indicators measuring such self-
sufficiency.
‘‘(d) PILOT AND DEMONSTRATION PROGRAMS.—
‘‘(1) IN GENERAL.—The Secretary is authorized
to conduct pilot and demonstration programs for the
purpose of developing and improving techniques and
demonstrating the effectiveness of specialized methods
in addressing employment and training needs which
may include—
‘‘(A) the establishment of advanced manu-
facturing technology skill centers developed
through local partnerships of industry, labor,
education, community-based organizations, and
economic development organizations to meet
unmet, high-tech skills of local communities;
‘‘(B) programs conducted jointly with the
Department of Defense to develop training pro-
grams utilizing computer-based and other inno-
vative learning technologies;
‘‘(C) projects that promote the use of dis-
tance learning, enabling students to take courses
through the use of media technology such as vid-
eos, teleconferencing computers, and the Internet;
‘‘(D) projects that assist in providing com-
prehensive services to increase the employment
175
rates of out-of-school youth residing in targeted
high poverty areas within empowerment zones
and enterprise communities;
‘‘(E) the establishment of partnerships with
national organizations with special expertise in
developing, organizing, and administering em-
ployment and training services for persons with
disabilities at the national, State, and local lev-
els; and
‘‘(F) projects that assist local workforce de-
velopment areas to develop and implement local
self-sufficiency standards to evaluate the degree
to which program participants are achieving
self-sufficiency.
‘‘(2) GRANTS AND CONTRACTS.—The Secretary
may award grants and enter into contracts with enti-
ties to carry out this subsection.
‘‘(3) EVALUATION AND EFFECTIVENESS.—Dem-
onstration programs assisted under this subsection
shall include a formal, rigorous evaluation compo-
nent. Pilot programs assisted under this subsection
shall include an appropriate evaluation component.
‘‘(4) SPECIAL RULE.—A demonstration program
under this subsection may not be assisted under this
subsection for a period of more than 7 years. A pilot
176
program under this subsection may not be assisted
under this subsection for a period of more than 3
years.
‘‘(e) EVALUATION.—
‘‘(1) ACTIVITIES.—
‘‘(A) JOB TRAINING.—The Secretary shall
provide for the continuing evaluation of pro-
grams conducted under this Act.
‘‘(B) OTHER
PROGRAMS.—The Secretary
may conduct evaluations of federally-funded em-
ployment-related activities under other provi-
sions of law.
‘‘(2) TECHNIQUES.—
‘‘(A) 
METHODS.—Evaluations 
conducted
under paragraph (1) shall utilize sound statis-
tical methods and techniques for the behavioral
and social sciences, including the use of control
groups chosen by scientific random assignment
methodologies when feasible.
‘‘(B) EFFECTIVENESS.—The Secretary shall
evaluate the effectiveness of programs authorized
under this Act with respect to—
‘‘(i) the statutory goals; and
177
‘‘(ii) the cost effectiveness and return-
on-investment of such programs based on
the extent to which the programs—
‘‘(I) enhance the employment and
earnings of participants;
‘‘(II) reduce income support costs
(including the receipt of welfare assist-
ance);
‘‘(III) improve the employment
competencies of participants in com-
parison to comparable persons who did
not participate in such programs; and
‘‘(IV) to the extent feasible, in-
crease the level of total employment
over the level that would have existed
in the absence of such programs.
‘‘(f) TECHNICAL ASSISTANCE, DISSEMINATION, AND
REPLICATION ACTIVITIES.—The Secretary shall provide,
coordinate, and support the development of, appropriate
training, technical assistance, staff development, and other
activities, including assistance in replicating programs of
demonstrated effectiveness, to States and localities.
‘‘SEC. 452. INCENTIVE GRANTS.
‘‘From amounts authorized to be appropriated pursu-
ant to section 3(a)(3) to carry out this part for a fiscal
178
year, the Secretary is authorized to award incentive grants
to States consistent with the requirements of section
156(a).’’.
SEC. 422. NONTRADITIONAL EMPLOYMENT DEMONSTRA-
TION PROGRAM.
Section 456 of the Job Training Partnership Act (29
U.S.C. 1737) is hereby repealed.
Subtitle D—Repealers
SEC. 451. REPEALERS.
Parts F, G, H, I, and J of title IV of the Job Training
Partnership Act (29 U.S.C. 1771 et seq.) are hereby re-
pealed.
TITLE V—AMENDMENTS TO
ADULT EDUCATION PROGRAMS
SEC. 501. REPEAL OF JOBS FOR EMPLOYABLE DEPENDENT
INDIVIDUALS INCENTIVE BONUS PROGRAM.
Title V of the Job Training Partnership Act (29 U.S.C.
1791 et seq.) is repealed.
SEC. 502. AMENDMENT TO ADULT EDUCATION ACT.
The Adult Education Act (20 U.S.C. 1201 et seq.) is
amended to read as follows:
179
‘‘TITLE III—ADULT EDUCATION
AND FAMILY LITERACY PRO-
GRAMS
‘‘SEC. 301. SHORT TITLE.
‘‘This title may be cited as the ‘Adult Education and
Family Literacy Act’.
‘‘SEC. 302. STATEMENT OF PURPOSE.
‘‘It is the purpose of this title to assist States and out-
lying areas to provide—
‘‘(1) to adults, the basic educational skills nec-
essary for employment and self-sufficiency; and
‘‘(2) to adults who are parents, the educational
skills necessary to be full partners in the educational
development of their children.
‘‘SEC. 303. DEFINITION.
‘‘For purposes of this title:
‘‘(1) ADULT EDUCATION.—The term ‘adult edu-
cation’ means services or instruction below the post-
secondary level for individuals—
‘‘(A) who have attained 16 years of age;
‘‘(B) who are not enrolled or required to be
enrolled in secondary school under State law;
and
‘‘(C) who—
180
‘‘(i) lack sufficient mastery of basic
educational skills to enable the individuals
to function effectively in society;
‘‘(ii) do not have a certificate of grad-
uation from a school providing secondary
education and who have not achieved an
equivalent level of education; or
‘‘(iii) are unable to speak, read, or
write the English language.
‘‘(2) ADULT EDUCATION AND LITERACY ACTIVI-
TIES.—The term ‘adult education and literacy activi-
ties’ has the meaning given such term in section 4 of
the Employment, Training, and Literacy Enhance-
ment Act.
‘‘(3) COMMUNITY-BASED
ORGANIZATION.—The
term ‘community-based organization’ has the mean-
ing given such term in section 4 of the Employment,
Training, and Literacy Enhancement Act.
‘‘(4) DIRECT
AND
EQUITABLE
ACCESS.—The
term ‘direct and equitable access’, when used with re-
spect to the requirement in section 313(c)(2), means
that—
‘‘(A) all eligible providers are given the
same opportunity to apply for and receive funds
under part A; and
181
‘‘(B) the same announcement and applica-
tion process is used for all eligible providers.
‘‘(5) ELIGIBLE
AGENCY.—The term ‘eligible
agency’ means—
‘‘(A) the individual, entity, or agency in a
State or an outlying area responsible for admin-
istering or setting policies for adult education
and literacy services in such State or outlying
area pursuant to the law of the State or outlying
area; or
‘‘(B) if no individual, entity, or agency is
responsible for administering or setting such
policies pursuant to the law of the State or out-
lying area, the individual, entity, or agency in
a State or outlying area responsible for admin-
istering or setting policies for adult education
and literacy services in such State or outlying
area on the date of the enactment of the Employ-
ment, Training, and Literacy Enhancement Act
of 1997.
‘‘(6) ELIGIBLE
PROVIDER.—The term ‘eligible
provider’, used with respect to adult education and
literacy activities described in section 314(b), means
a provider determined to be eligible for assistance in
accordance with section 313.
182
‘‘(7) ENGLISH LITERACY PROGRAM.—The term
‘English literacy program’ has the meaning given
such term in section 4 of the Employment, Training,
and Literacy Enhancement Act.
‘‘(8) FAMILY
LITERACY
SERVICES.—The term
‘family literacy services’ has the meaning given such
term in section 4 of the Employment, Training, and
Literacy Enhancement Act.
‘‘(9) INDIVIDUAL
OF
LIMITED
ENGLISH
PRO-
FICIENCY.—The term ‘individual of limited English
proficiency’ has the meaning given such term in sec-
tion 4 of the Employment, Training, and Literacy
Enhancement Act.
‘‘(10) INDIVIDUAL
WITH
A
DISABILITY.—The
terms ‘individual with a disability’ and ‘individuals
with disabilities’ have the meaning given such terms
in section 4 of the Employment, Training, and Lit-
eracy Enhancement Act.
‘‘(11) LITERACY.—The term ‘literacy’ has the
meaning given such term in section 4 of the Employ-
ment, Training, and Literacy Enhancement Act.
‘‘(12) LOCAL
EDUCATIONAL
AGENCY.—The term
‘local educational agency’ has the meaning given such
term in section 14101 of the Elementary and Second-
ary Education Act of 1965 (20 U.S.C. 8801).
183
‘‘(13) OUTLYING
AREA.—The term ‘outlying
area’ has the meaning given such term in section 4
of the Employment, Training, and Literacy Enhance-
ment Act.
‘‘(14) POSTSECONDARY
EDUCATIONAL
INSTITU-
TION.—The term ‘postsecondary educational institu-
tion’ has the meaning given such term in section 4
of the Employment, Training, and Literacy Enhance-
ment Act.
‘‘(15) SECRETARY.—The term ‘Secretary’ means
the Secretary of Education.
‘‘(16) STATE.—The term ‘State’ has the meaning
given such term in section 4 of the Employment,
Training, and Literacy Enhancement Act.
‘‘SEC. 304. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be appro-
priated to carry out this title such sums as may be nec-
essary for fiscal years 1998 through 2003.
‘‘(b) RESERVATION OF FUNDS FOR NATIONAL LEADER-
SHIP ACTIVITIES.—For any fiscal year, the Secretary shall
reserve—
‘‘(1) 1.5 percent of the amount appropriated
under subsection (a) (but not more than $6,500,000)
to carry out section 321; and
184
‘‘(2) 1.5 percent of the amount appropriated
under subsection (a) (but not more than $6,500,000)
to establish and carry out the program of national
leadership and evaluation activities described in sec-
tion 322.
‘‘PART A—GRANTS TO ELIGIBLE AGENCIES
‘‘SEC. 311. AUTHORITY TO MAKE GRANTS.
‘‘(a) IN GENERAL.—In the case of each eligible agency
that in accordance with section 101 of the Employment,
Training, and Literacy Enhancement Act submits to the
Secretary a plan, the Secretary shall make a grant for each
fiscal year for which such plan is in effect to the eligible
agency for the purpose specified in subsection (b). The grant
shall consist of the initial and additional allotments deter-
mined for the eligible agency under section 312.
‘‘(b) PURPOSE OF GRANTS.—The Secretary may make
a grant under subsection (a) only if the applicant involved
agrees to expend the grant for adult education and literacy
activities in accordance with the provisions of this part.
‘‘SEC. 312. ALLOTMENTS.
‘‘(a) INITIAL ALLOTMENTS.—From the sums available
for the purpose of making grants under this part for any
fiscal year, the Secretary shall allot to each eligible agency
that in accordance with section 101 of the Employment,
185
Training, and Literacy Enhancement Act submits to the
Secretary a plan for the year an initial amount as follows:
‘‘(1) $100,000, in the case of an eligible agency
of the United States Virgin Islands, Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, the Republic of the Marshall Islands, the Fed-
erated States of Micronesia, and the Republic of
Palau.
‘‘(2) $250,000, in the case of any other eligible
agency.
‘‘(b) ADDITIONAL ALLOTMENTS.—
‘‘(1) IN GENERAL.—From the remainder avail-
able for the purpose of making grants under this part
for any fiscal year after the application of subsection
(a), the Secretary shall allot to each eligible agency
that receives an initial allotment under such sub-
section an additional amount that bears the same re-
lationship to such remainder as the number of quali-
fying adults in the State or outlying area of the agen-
cy bears to the number of such adults in all States
and outlying areas.
‘‘(2) QUALIFYING ADULT.—For purposes of this
subsection, the term ‘qualifying adult’ means an adult
who—
186
‘‘(A) is at least 16 years of age, but less
than 61 years of age;
‘‘(B) is beyond the age of compulsory school
attendance under the law of the State or outlying
area;
‘‘(C) does not have a certificate of gradua-
tion from a school providing secondary education
and has not achieved an equivalent level of edu-
cation; and
‘‘(D) is not currently enrolled in secondary
school.
‘‘(c) SPECIAL RULE.—
‘‘(1) IN GENERAL.—Using funds not to exceed
the amount appropriated and reserved under the
Adult Education Act for fiscal year 1997 for the Re-
public of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau, the Sec-
retary shall award grants, from funds made available
under subsections (a) and (b), to Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, the Republic of the Marshall Islands, the Fed-
erated States of Micronesia, or the Republic of Palau
to carry out activities described in this part in ac-
cordance with the provisions of this part that the Sec-
187
retary determines are not inconsistent with this sub-
section.
‘‘(2) AWARD BASIS.—The Secretary shall award
grants pursuant to paragraph (1) on a competitive
basis and pursuant to recommendations from the Pa-
cific Region Educational Laboratory in Honolulu,
Hawaii.
‘‘(3) TERMINATION
OF
ELIGIBILITY.—Notwith-
standing any other provision of law, the Republic of
the Marshall Islands, the Federated States of Microne-
sia, and the Republic of Palau shall not receive any
funds under this part for any fiscal year that begins
after September 30, 2001.
‘‘(4) ADMINISTRATIVE
COSTS.—The Secretary
may provide not more than 5 percent of the funds
made available for grants under this subsection to
pay the administrative costs of the Pacific Region
Educational Laboratory regarding activities assisted
under this subsection.
‘‘(d) HOLD-HARMLESS.—
‘‘(1) IN GENERAL.—Notwithstanding subsection
(a)—
‘‘(A) for fiscal year 1998, no eligible agency
shall receive an allotment that is less than 90
percent of the payments made to the State of the
188
agency for fiscal year 1997 for programs for
which funds were authorized to be appropriated
under section 313 of the Adult Education Act (as
such Act was in effect on the day before the date
of the enactment of the Employment, Training,
and Literacy Enhancement Act of 1997); and
‘‘(B) for fiscal year 1999 and each succeed-
ing fiscal year, no eligible agency shall receive
an allotment that is less than 90 percent of the
amount the agency received for the preceding fis-
cal year for programs under this Act.
‘‘(2) RATABLE
REDUCTION.—If for any fiscal
year the amount available for allotment under this
section is insufficient to satisfy the provisions of
paragraph (1), the Secretary shall ratably reduce the
payments to all eligible agencies, as necessary.
‘‘(e) REALLOTMENT.—The portion of any eligible agen-
cy’s allotment under subsection (a) or (b) for a fiscal year
that the Secretary determines will not be required for the
period such allotment is available for carrying out activities
under this part, shall be available for reallotment from time
to time, on such dates during such period as the Secretary
shall fix, to other eligible agencies in proportion to the origi-
nal allotments to such agencies under such subsection for
such year.
189
‘‘SEC. 313. USE OF FUNDS.
‘‘(a) IN GENERAL.—Of the sum that is made available
under this part to an eligible agency for any program
year—
‘‘(1) not less than 85 percent shall be made
available to award grants in accordance with this sec-
tion to carry out adult education and literacy activi-
ties; and
‘‘(2) not more than 15 percent shall be made
available to carry out activities described in section
314(a), of which not more than 5 percentage points,
or $50,000, whichever is greater, shall be made avail-
able for administrative expenses at the State level (or
the level of the outlying area).
‘‘(b) GRANTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), from the amount made available to an eli-
gible agency for adult education and literacy under
subsection (a)(1) for a program year, such agency
shall award grants, on a competitive basis, to local
educational agencies, correctional education agencies,
community-based organizations of demonstrated effec-
tiveness, volunteer literacy organizations, libraries,
public or private nonprofit agencies, postsecondary
educational institutions, public housing authorities,
and other nonprofit institutions, that have the ability
190
to provide literacy services to adults and families, or
consortia of agencies, organizations, or institutions
described in this subsection, to enable such agencies,
organizations, institutions, and consortia to carry out
adult education and literacy activities.
‘‘(2) CONSORTIA.—An eligible agency may
award a grant under this section to a consortium that
includes a provider described in paragraph (1) and
a for-profit agency, organization, or institution, if
such agency, organization, or institution—
‘‘(A) can make a significant contribution to
carrying out the objectives of this title; and
‘‘(B) enters into a contract with such pro-
vider to carry out adult education and literacy
activities.
‘‘(c) GRANT REQUIREMENTS.—
‘‘(1) REQUIRED LOCAL ACTIVITIES.—An eligible
agency shall require that each provider receiving a
grant under this section use the grant in accordance
with section 314(b).
‘‘(2) EQUITABLE ACCESS.—Each eligible agency
awarding a grant under this section for adult edu-
cation and literacy activities shall ensure that the
providers described in subsection (b) will be provided
191
direct and equitable access to all Federal funds pro-
vided under this section.
‘‘(3) SPECIAL
RULE.—Each eligible agency
awarding a grant under this section shall not use any
funds made available under this title for adult edu-
cation and literacy activities for the purpose of sup-
porting or providing programs, services, or activities
for individuals who are not individuals described in
subparagraphs (A) and (B) of section 303(1), except
that such agency may use such funds for such purpose
if such programs, services, or activities are related to
family literacy services.
‘‘(4) CONSIDERATIONS.—In awarding grants
under this section, the eligible agency shall consider—
‘‘(A) the past effectiveness of a provider de-
scribed in subsection (b) in providing services
(especially with respect to recruitment and reten-
tion of educationally disadvantaged adults and
the learning gains demonstrated by such adults);
‘‘(B) the degree to which the provider will
establish measurable goals for client outcomes,
such as levels of literacy achieved and the attain-
ment of a high school diploma or its equivalent,
that are tied to challenging State performance
standards for literacy proficiency;
192
‘‘(C) the degree to which the program is
staffed by well-trained instructors and adminis-
trators;
‘‘(D) the degree to which the provider will
coordinate with other available resources in the
community, such as by establishing strong links
with elementary and secondary schools, post-
secondary educational institutions, full service
employment and training delivery centers, job
training programs, and other literacy and social
service available in the community;
‘‘(E) the commitment of the provider to
serve individuals in the community who are
most in need of literacy services, including indi-
viduals who are low income, who have minimal
literacy skills, or both;
‘‘(F) whether or not the program is of suffi-
cient intensity and duration for participants to
achieve substantial learning gains;
‘‘(G) the degree to which the provider will
offer flexible schedules and necessary support
services (such as child care and transportation)
to enable individuals, including individuals with
disabilities or other special needs, to participate
in adult education and literacy activities;
193
‘‘(H) whether such provider has been suc-
cessful in recruiting, retaining, and improving
the literacy skills of, individuals; and
‘‘(I) whether, not later than 1 year after the
date of the enactment of the Employment, Train-
ing, and Literacy Enhancement Act of 1997,
such provider has been successful in retraining
and improving the literacy skills of individuals,
consistent with the core indicators of perform-
ance set forth in section 154 of the Employment,
Training, and Literacy Enhancement Act.
‘‘(d) LOCAL ADMINISTRATIVE COST LIMITS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), of the funds provided under this section by
an eligible agency to a provider described in sub-
section (b), not less than 95 percent shall be expended
for provision of adult education and literacy activi-
ties. The remainder shall be used for planning, ad-
ministration, personnel development, and interagency
coordination.
‘‘(2) SPECIAL RULE.—In cases where the cost
limits described in paragraph (1) will be too restric-
tive to allow for adequate planning, administration,
personnel development, and interagency coordination
supported under this section, the eligible agency shall
194
negotiate with the provider described in subsection (b)
in order to determine an adequate level of funds to be
used for noninstructional purposes.
‘‘SEC. 314. ADULT EDUCATION AND LITERACY ACTIVITIES.
‘‘(a) PERMISSIBLE AGENCY ACTIVITIES.—An eligible
agency may use funds made available to the eligible agency
under section 313(a)(2) for activities that may include—
‘‘(1) the establishment or operation of profes-
sional development programs to improve the quality
of instruction provided pursuant to local activities re-
quired under subsection (b), including instruction
provided by volunteers or by personnel of a State or
outlying area;
‘‘(2) the provision of technical assistance to eligi-
ble providers of activities authorized under this sec-
tion;
‘‘(3) the provision of technology assistance, in-
cluding staff training, to eligible providers of activi-
ties authorized under this section to enable the pro-
viders to improve the quality of such activities;
‘‘(4) the support of State or regional networks of
literacy resource centers;
‘‘(5) the monitoring and evaluation of the qual-
ity of, and the improvement in, activities and services
authorized under this section;
195
‘‘(6) incentives for—
‘‘(A) program coordination and integration;
and
‘‘(B) performance awards;
‘‘(7) developing and disseminating curricula;
‘‘(8) other activities of statewide significance
that promote the purposes of this title; and
‘‘(9) the provision of support services, such as
transportation, child care, and other assistance de-
signed to increase rates of enrollment in, and success-
ful completion of, adult education and literacy activi-
ties, to adults enrolled in such activities.
‘‘(b) REQUIRED
LOCAL
ACTIVITIES.—The eligible
agency shall require that each eligible provider receiving a
grant under section 313 use the grant to establish or operate
1 or more programs that provide instruction or services in
1 or more of the following categories:
‘‘(1) Adult education and literacy services, in-
cluding services provided on the work site.
‘‘(2) Family literacy services.
‘‘(3) English literacy programs.
‘‘(c) STATE-IMPOSED REQUIREMENTS.—Whenever a
State implements any rule or policy relating to the admin-
istration or operation of a program authorized under this
title that has the effect of imposing a requirement that is
196
not imposed under Federal law (including any rule or pol-
icy based on a State interpretation of a Federal statute,
regulation, or guideline), it shall identify, to eligible provid-
ers, the rule or policy as being State-imposed.
‘‘SEC. 315. FISCAL REQUIREMENTS AND RESTRICTIONS RE-
LATED TO USE OF FUNDS.
‘‘(a) SUPPLEMENT
NOT
SUPPLANT.—Funds made
available under this part for adult education and literacy
activities shall supplement, and may not supplant, other
public funds expended to carry out activities described in
section 314.
‘‘(b) MAINTENANCE OF EFFORT.—
‘‘(1) IN GENERAL.—
‘‘(A) DETERMINATION.—An eligible agency
may receive funds under this Act for any fiscal
year if the Secretary finds that the fiscal effort
per student or the aggregate expenditures of such
eligible agency for adult education and literacy,
in the second preceding fiscal year, was not less
than 90 percent of the fiscal effort per student or
the aggregate expenditures of such eligible agency
for adult education and literacy, in the third
preceding fiscal year.
‘‘(B) PROPORTIONATE REDUCTION.—Subject
to paragraphs (2), (3), and (4), for any program
197
year with respect to which the Secretary deter-
mines under subparagraph (A) that the fiscal ef-
fort and the aggregate expenditures of an eligible
agency for the preceding program year were less
than such effort and expenditures for the second
preceding program year, the Secretary—
‘‘(i) shall determine the percentage de-
creases in such effort and in such expendi-
tures; and
‘‘(ii) shall decrease the payment made
under this part for such program year to
the agency for adult education and literacy
activities by the lesser of such percentages.
‘‘(2) COMPUTATION.—In computing the fiscal ef-
fort and aggregate expenditures under paragraph (1),
the Secretary shall exclude capital expenditures and
special one-time project costs.
‘‘(3) DECREASE IN FEDERAL SUPPORT.—If the
amount made available for adult education and lit-
eracy activities under this part for a fiscal year is
less than the amount made available for adult edu-
cation and literacy activities under this part for the
preceding fiscal year, then the fiscal effort per student
and the aggregate expenditures of an eligible agency
required in order to avoid a reduction under para-
198
graph (1)(B) shall be decreased by the same percent-
age as the percentage decrease in the amount so made
available.
‘‘(4) WAIVER.—The Secretary may waive the re-
quirements of this subsection for 1 fiscal year only, if
the Secretary determines that a waiver would be equi-
table due to exceptional or uncontrollable cir-
cumstances, such as a natural disaster or an unfore-
seen and precipitous decline in the financial resources
of the State of the eligible agency. If the Secretary
grants a waiver under the preceding sentence for a
fiscal year, the level of effort required under para-
graph (1) shall not be reduced in the subsequent fiscal
year because of the waiver.
‘‘(c) EXPENDITURES OF NON-FEDERAL FUNDS FOR
ADULT EDUCATION AND LITERACY ACTIVITIES.—For any
program year for which a grant is made to an eligible agen-
cy under this part, the eligible agency shall expend, on pro-
grams and activities relating to adult education and lit-
eracy activities, an amount, derived from sources other than
the Federal Government, equal to 25 percent of the amount
made available to the eligible agency under this part for
adult education and literacy activities.