IB
Union Calendar No. 70
104TH CONGRESS
1ST SESSION
H. R. 1617
[Report No. 104–152]
To consolidate and reform workforce development and literacy programs,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 11, 1995
Mr. MCKEON (for himself, Mr. GOODLING, Mr. CUNNINGHAM, Mr. GUNDER-
SON, Mr. RIGGS, Mr. DELAY, Mr. BOEHNER, Mr. KASICH, Mr.
MCINTOSH, Mr. PETRI, Mrs. ROUKEMA, Mr. FUNDERBURK, Mr.
SOUDER, Mr. FAWELL, Mr. BALLENGER, Mr. BARRETT of Nebraska, Mr.
HOEKSTRA, Mr. CASTLE, Mrs. MEYERS of Kansas, Mr. SAM JOHNSON
of Texas, Mr. TALENT, Mr. GREENWOOD, Mr. HUTCHINSON, Mr.
KNOLLENBERG, Mr. GRAHAM, Mr. WELDON of Florida, Mr. NORWOOD,
and Mr. DAVIS) introduced the following bill; which was referred to the
Committee on Economic and Educational Opportunities
JUNE 22, 1995
Additional sponsors: Mr. WELLER, Mr. HERGER, Mrs. SEASTRAND, Mr.
LINDER, Mrs. JOHNSON of Connecticut, Mr. ROGERS, Mr. GOODLATTE,
Mr. HANCOCK, and Mr. SENSENBRENNER
JUNE 22, 1995
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 May 11, 1995]
A BILL
To consolidate and reform workforce development and
literacy programs, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the—
(1) ‘‘Consolidated and Reformed Education, Em-
ployment, and Rehabilitation Systems Act’’; or
(2) ‘‘CAREERS Act’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings and purpose.
Sec. 4. Authorization of appropriations.
Sec. 5. Definitions.
Sec. 6. Transition.
TITLE I—WORKFORCE DEVELOPMENT INFRASTRUCTURE
Sec. 101. Purpose of title.
Subtitle A—State and Local Responsibilities
Sec. 102. State requirements.
Sec. 103. Collaborative process regarding State system.
Sec. 104. Consolidated State workforce development and literacy plan.
Sec. 105. Establishment of workforce development areas.
Sec. 106. Provisions regarding local workforce development boards.
Sec. 107. Establishment of one-stop career center systems.
Sec. 108. Certification of education, training, and vocational rehabilitation serv-
ice providers.
Sec. 109. Management information systems.
Sec. 110. Performance accountability system.
Subtitle B—Amendments to Wagner-Peyser Act
Sec. 131. General program requirements.
Sec. 132. Labor market information.
Subtitle C—Worker Rights
Sec. 141. Requirements.
TITLE II—YOUTH DEVELOPMENT AND CAREER PREPARATION
CONSOLIDATION GRANT
Sec. 201. Purposes.
Sec. 202. Definitions.
Subtitle A—State Funding
Sec. 211. National and State funding.
Sec. 212. Within State allocation.
Subtitle B—State Organizational, Planning, and Reporting Responsibilities
Sec. 221. State plan.
Sec. 222. State programs and State activities.
Sec. 223. Incentive awards.
Sec. 224. Core standards, performance goals, and measures.
Subtitle C—Subgrants for In-School and At-Risk Youth
Sec. 231. Partnership agreements.
Sec. 232. Distribution of funds.
CHAPTER 1—IN-SCHOOL YOUTH
Sec. 241. Uses of funds for in-school youth.
CHAPTER 2—AT-RISK YOUTH
Sec. 245. Uses of funds for at-risk youth.
Sec. 246. At-risk youth providers.
Subtitle D—National Programs
Sec. 251. Research activities.
Sec. 252. Assessment and data collection of youth development and career prepa-
ration programs.
Sec. 253. National center or centers for research.
TITLE III—ADULT EMPLOYMENT AND TRAINING CONSOLIDATION
GRANT
Subtitle A—Adult Employment and Training Consolidation Grant
Sec. 301. Purpose.
Sec. 302. Authorization.
Sec. 303. Allotment among States.
Sec. 304. Allocation within States.
Sec. 305. Additional State plan requirements.
Sec. 306. Use of amounts.
Sec. 307. Core standards, performance goals, and measures.
Subtitle B—Federal Programs
Sec. 311. National discretionary grants.
Sec. 312. Disaster relief employment assistance.
Sec. 313. Research, demonstration, evaluation, and capacity building.
Sec. 314. Workforce skills and development loans.
Sec. 315. Employment, training, and education assistance for Native Americans.
Sec. 316. Employment, training, and education assistance for migrant and sea-
sonal farmworkers.
TITLE IV—ADULT EDUCATION AND FAMILY LITERACY CONSOLIDA-
TION GRANT AND LIBRARY SERVICES AND TECHNOLOGY CON-
SOLIDATION GRANT
Sec. 401. Findings.
Sec. 402. Definitions.
Subtitle A—Adult Education and Family Literacy Consolidation Grant
Sec. 411. Purposes.
CHAPTER 1—FUNDING
Sec. 421. Reservations from amounts appropriated.
Sec. 422. Allotment.
CHAPTER 2—GRANTS TO STATES
Sec. 431. Requirement to make grants.
Sec. 432. Uses of funds.
Sec. 433. Additional grant requirements.
Sec. 434. Performance measures.
CHAPTER 3—NATIONAL PROGRAMS
Sec. 441. National Institute for Literacy.
Sec. 442. National leadership activities.
Subtitle B—Library Services and Technology Consolidation Grant
Sec. 451. Purposes.
Sec. 452. Authorization of appropriations.
Sec. 453. Allotments.
Sec. 454. Grants to States.
Sec. 455. Uses of funds.
Sec. 456. Annual applications.
TITLE V—AMENDMENTS TO REHABILITATION ACT OF 1973
Subtitle A—Vocational Rehabilitation Consolidation Grant
CHAPTER 1—TRANSITION PERIOD
Sec. 501. Transition.
CHAPTER 2—REVISION OF TITLE I OF REHABILITATION ACT OF 1973
Sec. 511. Revision of title I.
Subtitle B—Other Amendments to Rehabilitation Act of 1973
Sec. 521. Training and demonstration projects.
Sec. 522. Employment opportunities for individuals with disabilities.
TITLE VI—REPEALERS AND OTHER AMENDMENTS
Sec. 601. Carl D. Perkins Vocational and Applied Technology Education Act.
Sec. 602. School-to-Work Opportunities Act.
Sec. 603. Adult Education Act.
Sec. 604. National Literacy Act.
Sec. 605. Library Services and Construction Act.
Sec. 606. Technology for Education Act of 1994.
Sec. 607. Job Training Partnership Act.
Sec. 608. Stewart B. McKinney Homeless Assistance Act.
Sec. 609. Effective date.
SEC. 3. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds the following:
(1) The knowledge and skills of the United States
workforce are fundamental to the economic competi-
tiveness of the Nation today and in the future, how-
ever, the United States does not currently possess a
comprehensive, effective, and efficient system of
workforce preparation and development.
(2) Due to global competition, emerging tech-
nologies in the workplace, the emergence of quality
managing, corporate realignments, and the loss of
many low-skilled jobs, United States workers will in-
creasingly need to enhance their skills on a continu-
ing, lifelong basis through such a workforce prepara-
tion and development system.
(3) Reports from the Comptroller General of the
United States have identified 163 different Federal
programs, totaling $20,000,000,000, and administered
by 14 different Federal agencies, that offer some form
of education, job training, or employment assistance
to youth and adults.
(4) Such reports point to the many problems of
duplication and fragmentation that exist within the
varied Federal workforce preparation and develop-
ment programs, including—
(A) the additional costs of administering
overlapping workforce preparation and develop-
ment programs at the Federal, State, and local
levels which divert scarce resources that could be
better used to assist all individuals in preparing
for and entering the workforce; and
(B) conflicting eligibility requirements, an-
nual budgeting and operating cycles, planning
and reporting requirements, and performance
measurement systems which serve as barriers to
the integration of Federal workforce preparation
and development programs and result in an inef-
ficient use of resources.
(5) Major goals of any reform of the Federal
workforce preparation and development system must
be—
(A) to streamline and consolidate individ-
ual workforce preparation and development pro-
grams, eliminating unnecessary duplication and
fragmentation in such programs;
(B) to provide maximum authority and re-
sponsibility to States and local communities for
operation of State and local workforce prepara-
tion and development programs;
(C) to stress private sector partnerships, in-
cluding the use of private sector service providers
and encourage increased leadership and respon-
sibility on the part of the private sector through
the use of creative incentives for investment in
workforce training (which may include reduced
regulatory burdens, tax incentives, and employer
loans for the training of incumbent workers);
(D) to establish a system which is market-
driven, accountable, provides customer choice
and easy access to services, and reinforces indi-
vidual responsibility;
(E) to improve education, literacy, job
training, rehabilitation, and employment assist-
ance programs in the United States, encouraging
lifelong learning and skills upgrading through a
seamless system connecting elementary, second-
ary, postsecondary, rehabilitation, adult, and
work-based training and education; and
(F) to establish a comprehensive, integrated
labor market information system to ensure that
workforce preparation and development pro-
grams are related to the demand for particular
skills in local labor markets, and to ensure that
information about the employment and earnings
of the local workforce, occupations in demand,
skill requirements for such occupations, and the
performance of education, rehabilitation, and
training providers are available to job seekers,
employers, 
teachers, 
students, 
and
decisionmakers.
(6) Early exposure to career opportunities, in-
cluding opportunities in the practical arts or trade,
can enrich the education experience and provide in-
centives for students to stay in school and achieve
higher levels of learning.
(7) Millions of families in the United States are
trapped in a cycle of poverty, dependency, and inad-
equate education that is linked to illiteracy and low
educational achievement, for which adult education
and family literacy programs have been shown to be
successful in improving the educational attainment
and job skills of parents and their children, contribut-
ing to reductions in crime, welfare dependency, and
enhancing employment opportunities for such indi-
viduals.
(8) In recent years, a number of innovative
States and local communities have begun successful
efforts to integrate Federal workforce preparation and
development programs through one-stop service deliv-
ery systems, however, without exception, such States
and communities have experienced numerous Federal
barriers to such program integration.
(9) An extremely high percentage of Americans
with disabilities are unemployed, and need access to
high quality, specialized rehabilitation services that
lead to employment, independence, and full participa-
tion in the mainstream of life in America.
(b) PURPOSE.—The purpose of this Act is to transform
the vast array of Federal workforce development and lit-
eracy programs from a collection of fragmented and dupli-
cative categorical programs into a streamlined, comprehen-
sive, coherent, high-quality, cost-effective, market-based, and
accountable Federal workforce development and literacy
system that is designed to meet the education, employment,
and training needs of the workforce and the competitiveness
needs of employers of the United States, both today and in
the future.
SEC. 4. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated—
(1) for title II, $2,308,200,000 for fiscal year
1997 and such sums as may be necessary for each of
the fiscal years 1998 through 2002 to carry out the
programs under such title;
(2) for title III, $2,263,400,000 for fiscal year
1997 and such sums as may be necessary for each of
the fiscal years 1998 through 2002 to carry out the
programs under such title; and
(3) for subtitle A of title IV, $280,000,000 for fis-
cal year 1997 and such sums as may be necessary for
each of the fiscal years 1998 through 2002 to carry
out the programs under such subtitle.
(b) PROGRAM YEAR.—
(1) IN
GENERAL.—Beginning with fiscal year
1997, and thereafter, appropriations for any fiscal
year for programs and activities under this Act shall
be available for obligation only on the basis of a pro-
gram year. The program year shall begin on July 1
in the fiscal year for which the appropriation is
made.
(2) OBLIGATION.—Funds obligated for any pro-
gram year under titles II, III, and IV, may be ex-
pended by each recipient during that program year
and the two succeeding program years, except that the
Secretary shall, in accordance with paragraph (3),
reallot to eligible States the funds allotted to States
from funds appropriated for reallotments.
(3) AMOUNTS AVAILABLE FOR REALLOTMENT.—
The amount available for reallotment is equal to—
(A) the amount by which the unobligated
balance of the State allotment at the end of the
program year prior to the program year for
which the determination under this section is
made exceeds 20 percent of such allotment for the
prior program year; plus
(B) the unexpended balance of the State al-
lotment from any program year prior to the pro-
gram year in which there is such excess.
SEC. 5. DEFINITIONS.
For purposes of this Act:
(1) ADULT.—The term ‘‘adult’’ means an indi-
vidual who is 16 years of age, or beyond the age of
compulsory school attendance under State law, and
who is not enrolled or required to be enrolled in sec-
ondary school.
(2) ADULT EDUCATION.—The term ‘‘adult edu-
cation’’ means services or instruction below the post-
secondary level for adults—
for study in preparation for entering the labor
market;
(B) the department of a high school exclu-
sively or principally used for providing voca-
tional education in not less than 5 different oc-
cupational fields to individuals who are avail-
able for study in preparation for entering the
labor market;
(C) a technical institute or vocational school
used exclusively or principally for the provision
of vocational education to individuals who have
completed or left high school and who are avail-
able for study in preparation for entering the
labor market; or
(D) the department or division of a junior
college, community college or university operat-
ing under the policies of the State board and
which provides vocational education in not less
than 5 different occupational fields leading to
immediate employment but not necessarily lead-
ing to a baccalaureate degree, if, in the case of
a school, department, or division described in
subparagraph (C) or this subparagraph, it ad-
mits as regular students both individuals who
have completed high school and individuals who
have left high school.
(4) AT-RISK YOUTH.—The term ‘‘at-risk youth’’
means—
(A) an out-of-school, at-risk youth who is an
individual age 24 or younger and who is not en-
rolled in a secondary or postsecondary education
program, has not received a high school diploma
or equivalent and must overcome barriers to em-
ployment such as economic disadvantages, dis-
ability, or limited English proficiency; or
(B) an in-school, at-risk youth who is an
individual age 24 or younger who is enrolled in
an accredited secondary or postsecondary edu-
cation program but is at risk of dropping out of
school or must overcome barriers to complete an
education program, such as economic disadvan-
tages, disability, or limited English proficiency.
(5) CAREER EXPLORATION AND GUIDANCE COUN-
SELING.—The term ‘‘career exploration and guidance
counseling’’ means a program—
(A) which pertains to the body of subject
matter and related techniques and methods orga-
nized for the development in individuals of ca-
reer awareness, career planning, career decision-
making, placement skills, and knowledge and un-
derstanding of local, State, and national occupa-
tional, educational, and labor market needs,
trends, and opportunities;
(B) which assists such individuals in mak-
ing and implementing informed educational and
occupational choices; and
(C) which is comprehensive in nature and
provided through an educational program begin-
ning in as early a grade as possible, including
late elementary and middle school grades.
(6) CASE MANAGEMENT.—The term ‘‘case man-
agement’’ means the provision of a client-centered ap-
proach in the delivery of services designed to—
(A) prepare and coordinate comprehensive
employment plans, such as service strategies for
participants, to ensure access to necessary train-
ing and supportive services, using, where fea-
sible, computer-based technologies; and
(B) provide job and career counseling dur-
ing program participation and after job place-
ment.
(7) CHIEF ELECTED OFFICIAL.—The term ‘‘chief
elected official’’ means the chief elected executive offi-
cer of a unit of general local government in a
workforce development area.
(8) 
COMMUNITY-BASED
ORGANIZATION.—The
term ‘‘community-based organization’’ means a pri-
vate nonprofit organization that is representative of
a community or significant segments of a community
that provides education, vocational rehabilitation, job
training, supportive services, or internship services
and programs.
(9) DEMOGRAPHIC CHARACTERISTICS.—The term
‘‘demographic characteristics’’ means information on
population, especially with reference to size, density,
distribution, and vital statistics including, age, race,
sex, ethnic origin, and income status.
(10) DISLOCATED
WORKER.—The term ‘‘dis-
located worker’’ means an individual who—
(A) has been terminated or laid off or who
has received a notice of termination or layoff
from employment, is eligible for or has exhausted
entitlement to unemployment compensation, and
is unlikely to return to a previous industry or
occupation;
(B) has been terminated, or has received a
notice of termination of employment, as a result
of any permanent closure of, or any substantial
layoff at, a plant, facility, or enterprise;
(C) has been unemployed long-term and has
limited opportunities for employment or reem-
ployment in the same or a similar occupation in
the area in which such individual resides, in-
cluding an older individual who may have sub-
stantial barriers to employment by reason of age;
or
(D) was self-employed (including farmers
and ranchers) but is unemployed as a result of
general economic conditions in the community
in which they reside or because of natural disas-
ters.
(11) DISPLACED HOMEMAKER.—The term ‘‘dis-
placed homemaker’’ means an individual who—
(A) is an adult; and
(B)(i) has worked as an adult primarily
without remuneration to care for the home and
family, and for that reason has diminished mar-
ketable skills;
(ii) has been dependent on public assistance
or on the income of a relative but is no longer
supported by such income;
(iii) is a parent whose youngest dependent
child will become ineligible to receive assistance
under the program for aid to families with de-
pendent children under part A of title IV of the
Social Security Act within 2 years of the par-
ent’s application for assistance under title II of
this Act; or
(iv) is unemployed or underemployed and is
experiencing difficulty in obtaining any employ-
ment or suitable employment, as appropriate.
(12) EARNINGS.—The term ‘‘earnings’’ means
gross hourly wages before any deduction, plus the esti-
mated hourly value of bonuses, tips, gratuities, com-
missions, and overtime pay either expected or re-
ceived. In the case of individuals in subsidized em-
ployment, total hourly earnings include any wage
subsidy paid to the individual.
(13) ECONOMIC DEVELOPMENT AGENCIES.—The
term ‘‘economic development agencies’’ means State
and local planning and zoning commissions or
boards, community development agencies, and other
State and local agencies and institutions responsible
for regulating, promoting, or assisting in State and
local economic development.
ceive) food stamps pursuant to the Food Stamp
Act of 1977;
(D) qualifies as a homeless individual
under subsections (a) and (c) of section 103 of
the Stewart B. McKinney Homeless Assistance
Act;
(E) is a foster child on behalf of whom
State or local government payments are made;
(F) in cases permitted by regulations of the
Secretary, is an individual with a disability
whose own income meets the requirements of sub-
paragraph (A) or (B), but who is a member of
a family whose income does not meet such re-
quirements; or
(G) is an individual meeting appropriate
criteria approved by a State.
(15) EDUCATIONAL SERVICE AGENCY.—The term
‘‘educational service agency’’ means a regional public
multiservice agency authorized by State statute to de-
velop, manage, and provide services or programs to
local education agencies, and is recognized as an ad-
ministrative agency for such State’s vocational or
technical education schools or for vocational programs
within its public elementary or secondary schools.
Such term includes any other public institution or
agency having administrative control and direction
over a public elementary or secondary school.
(16) EMPLOYED.—The term ‘‘employed’’ means
an individual who is currently—
(A) a paid employee;
(B) works in his or her own business, pro-
fession, or farm;
(C) works 15 hours or more per week as an
unpaid worker in an enterprise operated by a
family member; or is one who is not working,
but has a job or business from which he or she
is temporarily absent due to illness, bad weather,
vacation, labor-management dispute, or personal
reasons; or
(D) on active military duty.
(17) ENGLISH LITERACY PROGRAM.—The term
‘‘English literacy program’’ means a program of in-
struction designed to help limited English proficient
adults, out-of-school youths, or both, achieve full com-
petence in the English language.
(18) EXCESS NUMBER.—The term ‘‘excess num-
ber’’ means, with respect to the excess number of un-
employed individuals within a State, the number that
represents the number of unemployed individuals in
excess of 4.5 percent of the civilian labor force in the
State, or the number that represents the number of
unemployed individuals in excess of 4.5 percent of the
civilian labor force in areas of substantial unemploy-
ment in such State.
(19) GOVERNOR.—The term ‘‘Governor’’ means
the chief executive of State.
(20) INDIVIDUAL
OF
LIMITED
ENGLISH
PRO-
FICIENCY.—The term ‘‘individual of limited English
proficiency’’ means an adult or out-of-school youth
who has limited ability in speaking, reading, writing,
or understanding the English language and—
(A) whose native language is a language
other than English; or
(B) who lives in a family or community en-
vironment where a language other than English
is the dominant language.
(21) INDIVIDUALS
WITH
DISABILITIES.—The
term ‘‘individuals with disabilities’’ has the meaning
given such term in the Vocational Rehabilitation Act
of 1973.
(22) INSTITUTION OF HIGHER EDUCATION.—The
term ‘‘institution of higher education’’ has the mean-
ing given such term in section 481 of the Higher Edu-
cation Act of 1965.
(23) JOB SEARCH ASSISTANCE.—The term ‘‘job
search assistance’’ means a service that helps a job-
ready individual seek, locate, apply for, and obtain
employment. Such services may include, but are not
limited to, job-finding skills, orientation to the labor
market, resume preparation assistance, job finding
clubs, job search workshops, vocational exploration,
and other employability services.
(24) LABOR
MARKET
AREA.—The term ‘‘labor
market area’’ means an economically integrated geo-
graphic area within which individuals can reside and
find employment within a reasonable distance or can
readily change employment without changing their
place of residence. Such areas shall be identified in
accordance with criteria used by the Bureau of Labor
Statistics of the Department of Labor in defining
such areas or similar criteria established by a Gov-
ernor.
(25) LIBRARY.—The term ‘‘library’’ includes—
(A) a public library;
(B) a public elementary or secondary school
library;
(C) an academic library;
(D) a research library; and
(E) a private library, but only if the State
in which such private library is located deter-
mines that the library should be considered a li-
brary for purposes of this Act.
(26) LITERACY.—The term ‘‘literacy’’ means an
individual’s ability to read, write, and speak in Eng-
lish, and compute and solve problems, at levels of pro-
ficiency necessary—
(A) to function on the job, in the individ-
ual’s family and in society;
(B) to achieve the individual’s goals; and
(C) to develop the individual’s knowledge
potential.
(27) LOCAL EDUCATIONAL AGENCY.—The term
‘‘local educational agency’’ has the same meaning
given such term in section 14101 of the Elementary
and Secondary Education Act of 1965.
(28) NATIVE
AMERICAN.—The term ‘‘native
American’’ means Indians, Alaskan natives, and Ha-
waiian natives.
(29) NONTRADITIONAL EMPLOYMENT.—The term
‘‘nontraditional employment’’ as applied to women
refers to occupations or fields of work where women
comprise less than 25 percent of the individuals em-
ployed in such occupation or field of work.
(30) ON-THE-JOB TRAINING.—The term ‘‘on-the-
job training’’ means training in the public or private
sector that is provided to a paid employee while he
or she is engaged in productive work that—
(A) provides knowledge or skills essential to
the full and adequate performance of the job;
(B) provides reimbursement to employers,
up to 50 percent of the participant’s wage rate,
for the costs of providing training and addi-
tional supervision; and
(C) is based on the Occupational Employ-
ment Statistics Program Dictionary.
(31) POSTSECONDARY
EDUCATIONAL
INSTITU-
TION.—The term ‘‘postsecondary educational institu-
tion’’ means an institution of higher education (as
such term is defined in section 481 of the Higher
Education Act of 1965) which continues to meet the
eligibility and certification requirements under title
IV of such Act (20 U.S.C. 1070 et seq.).
(32) PREEMPLOYMENT
SKILLS
TRAINING; JOB
READINESS
SKILLS
TRAINING.—The 
terms
‘‘preemployment skills training’’ and ‘‘job readiness
skills training’’ mean training that helps prepare in-
dividuals for work by assuring that they are familiar
with general workplace expectations and exhibit work
behavior and attitudes necessary to compete success-
fully in the job market.
(33) PUBLIC ASSISTANCE.—The term ‘‘public as-
sistance’’ means Federal, State, or local government
cash payments for which eligibility is determined by
a needs or income test.
(34) RAPID
RESPONSE.—The term ‘‘rapid re-
sponse’’ means assistance that is directly provided by
the State, or by local grantees with funds provided by
the State, in the case of mass layoffs or plant closures,
and that establishes on-site contact with employer and
employee representatives within a short period of time
(preferably 48 hours or less) after becoming aware of
a current or projected permanent closure or substan-
tial layoff in order to—
(A) provide information on, and facilitate
access to, available public programs and services
for workers losing jobs as a result of such layoff
or closure;
(B) provide emergency assistance adapted
to the particular closure or layoff;
(C) promote the formation of labor-manage-
ment committees, where appropriate;
(D) collect information related to economic
dislocation and available resources within the
State for dislocated workers;
(E) provide or obtain appropriate financial
and technical advice and liaison with economic
development agencies and other organizations to
assist in efforts to avert worker dislocation; and
(F) assist the local community in develop-
ing its own coordinated response and in obtain-
ing access to State economic development assist-
ance.
(35) REGISTERED APPRENTICESHIP.—The term
‘‘registered apprenticeship’’ means a program reg-
istered by the Bureau of Apprenticeship and Training
in the United States Department of Labor, or a State
Apprenticeship Agency recognized and approved by
the Bureau of Apprenticeship and Training as the
appropriate body for State registration or approval of
local apprenticeship programs and agreements.
(36) SCHOOL DROPOUT.—The term ‘‘school drop-
out’’ means a youth who is no longer attending any
school and who has not received a secondary school
diploma or a certificate from a program of equiva-
lency for such a diploma.
(37) SKILL CERTIFICATE.—The term ‘‘skill cer-
tificate’’ means a portable, industry-recognized cre-
dential issued by programs authorized under this Act,
that certifies that an individual has mastered skills at
levels that are at least as challenging as skill stand-
ards endorsed by the National Skill Standards Board,
except that until such skill standards are developed,
the term ‘‘skill certificate’’ means a credential issued
under a process determined by the State.
(38) STATE.—The term ‘‘State’’ means any of
the several States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Virgin Islands, Amer-
ican Samoa, Guam, and the Commonwealth of the
Northern Mariana Islands.
(39) STATE
EDUCATIONAL
AGENCY.—The term
‘‘State educational agency’’ has the meaning given
such term in section 14101 of the Elementary and
Secondary Education Act of 1965.
(40) STATE
LIBRARY
ADMINISTRATIVE
AGEN-
CY.—The term ‘‘State library administrative agency’’
means the official agency of a State charged by the
law of the State with the extension and development
of public library services throughout the State.
(41) SUPPORTIVE
SERVICES.—The term ‘‘sup-
portive services’’ means services which are necessary
to enable an individual eligible for training under
this Act, but who cannot afford to pay for such serv-
ices, to participate in a training or vocational reha-
bilitation program or job search activities funded
under this Act. Such supportive services may include
transportation, individual and family counseling,
child care and dependent care, meals, temporary shel-
ter, financial counseling, needs-based payments, and
other reasonable expenses required for participation
in a training, job preparation, or job placement pro-
gram. Such services may be provided in-kind or
through cash assistance, except that such services will
be provided with funds provided under this Act only
after alternative funding sources specifically des-
ignated for such services have been exhausted.
(42) UNEMPLOYED.—The term ‘‘unemployed’’ re-
fers to an individual who is not employed, who is
available for work, and who has made specific efforts
to find a job within the prior 4 weeks. Included as
unemployed are individuals who are not working, are
available for work, and are waiting to be called back
to a job from which they have been laid off.
(43) UNIT OF GENERAL LOCAL GOVERNMENT.—
The term ‘‘unit of general local government’’ means
any general purpose political subdivision of a State
which has the power to levy taxes and spend funds,
as well as general corporate and police powers.
(44) VETERAN.—The term ‘‘veteran’’ has the
meaning given such term in section 101(2) of title 38,
United States Code.
(45) WORK EXPERIENCE.—The term ‘‘work expe-
rience’’ means a time-limited work activity that pro-
vides an individual with the opportunity to acquire
the general skills and knowledge necessary to obtain
employment.
(46) WORKPLACE
MENTOR.—The term ‘‘work-
place mentor’’ means an employee or other individ-
ual, approved by the employer at a workplace, who
possesses the skills and knowledge to be mastered by
a student or program participant, and who instructs,
critiques the performance, and challenges the student
or program participant to perform well, and works in
consultation with classroom teachers, training provid-
ers, and the employer of the student or program par-
ticipant.
(47) YOUTH.—The term ‘‘youth’’ means an indi-
vidual under the age of 24.
SEC. 6. TRANSITION.
The Secretary of Education and the Secretary of Labor
shall take such steps as they determine to be appropriate
to provide for the orderly transition from any authority
under provisions of statutes amended or repealed by this
Act or any related authority under provisions of this Act.
TITLE I—WORKFORCE DEVELOP-
MENT INFRASTRUCTURE
SEC. 101. PURPOSE OF TITLE.
The purpose of this title is to provide for the establish-
ment of an infrastructure within States on which to build
a comprehensive system of workforce development and lit-
eracy.
Subtitle A—State and Local
Responsibilities
SEC. 102. STATE REQUIREMENTS.
(a) IN GENERAL.—For fiscal year 1997 and subse-
quent fiscal years, a State that desires to receive a grant
under one or more of the programs specified in subsection
(b) shall—
(1) establish a collaborative process, pursuant to
section 103;
(2) develop a State workforce development and
literacy plan, pursuant to section 104; and
(3) otherwise comply with the requirements of
this Act.
(b) WORKFORCE DEVELOPMENT AND LITERACY PRO-
GRAMS.—
(1) IN GENERAL.—The programs referred to in
subsection (a) are the following:
(A) The program under title II, the Youth
Development and Career Preparation Consolida-
tion Grant.
(B) The program under title III, the Adult
Employment and Training Consolidation Grant.
(C) The program under subtitle A of title
IV, the Adult Education and Family Literacy
Consolidation Grant.
(D) The program amended by subtitle A of
title V (relating to title I of the Rehabilitation
Act of 1973).
(2) DEFINITION.—For purposes of this Act, the
term ‘‘Workforce Development and Literacy pro-
grams’’ means the programs specified in paragraph
(1).
SEC. 103. COLLABORATIVE PROCESS REGARDING STATE
SYSTEM.
(a) IN GENERAL.—The Governor of a State that de-
sires to receive a grant under one or more of the programs
specified in section 102(b) shall certify to the Secretary of
Education and the Secretary of Labor that a collaborative
process, as described in subsection (b) or (c), has been used
in complying with the applicable provisions of this Act.
(b) COLLABORATIVE
PROCESS.—The collaborative
process referred to in subsection (a) is a process for making
decisions which includes as participants, at a minimum,
the Governor and—
(1) representatives of the following (which rep-
resentatives are appointed by the Governor)—
(A) business and industry;
(B) local chief elected officials (representing
both cities and counties);
(C) local educational agencies (including
vocational educators);
(D) postsecondary institutions (including
community and technical colleges);
(E) the State rehabilitation advisory coun-
cil;
(F) organizations representing individuals
served by programs established under this Act
(including community-based organizations); and
(G) employees.
(2) the lead State agency official or officials
for—
(A) the State educational agency (including
representatives of vocational education, adult
education and literacy, and libraries);
(B) the State agency responsible for eco-
nomic development;
(C) the State agency responsible for employ-
ment; security (and the State agency responsible
for job training where different from such agen-
cy);
(D) the State agency responsible for post-
secondary education;
(E) the State agency responsible for voca-
tional rehabilitation, and where applicable, the
State agency providing vocational rehabilitation
services for the blind;
(F) the State agency responsible for welfare;
and
(G) the representative of the Veterans’ Serv-
ice assigned to the State under section 4103 of
title 38, United States Code.
(c) RULE OF CONSTRUCTION.—With respect to compli-
ance with subsection (b)—
(1) a State may use any existing State process
(including any council or similar entity) that sub-
stantially meets the purposes of such subsection; or
(2) if prior to the date of enactment of this Act,
a State has developed a one-stop career center system
or a school-to-work system through a collaborative
process substantially similar to the process described
in subsection (b), the State may use such process.
SEC. 104. CONSOLIDATED STATE WORKFORCE DEVELOP-
MENT AND LITERACY PLAN.
(a) IN GENERAL.—The Governor of a State that de-
sires to receive a grant under one or more of the programs
specified in section 102(b) shall submit a strategic State
workforce development and literacy plan to provide policy
guidance with respect to workforce development programs
operated in the State, and that meets the requirements of
this section to—
(1) the Secretary of Education; and
(2) the Secretary of Labor.
(b) CONTENTS.—A State workforce development and
literacy plan shall include the following:
(1) A description of the collaborative process
under section 103 used in developing the plan.
(2) A statement of the goals of the State
workforce development and literacy system, that in-
cludes—
(A) a description of how the State will
progress toward achieving the goals and purpose
of this Act as established in sections 3(a)(5) and
3(b);
(B) an assessment of the needs of the State
with regard to current and projected demands
for workers by occupation, the skills and edu-
cation levels of the workforce, the vocational re-
habilitation needs of individuals with severe dis-
abilities residing in the State, the skill and eco-
nomic development needs of the State, and an as-
sessment of the type and availability of workforce
development, adult education, vocational reha-
bilitation, and literacy programs in the State;
(C) the identification of progress indicators,
based on the performance measures described in
titles II and III, subtitle A of title IV, and title
I of the Vocational Rehabilitation Act of 1973,
and a model of continuous improvement, that the
State will use to measure progress made by the
State, local workforce development boards, and
other applicable local entities who are recipients
of financial assistance under this Act in meeting
such goals; and
(D) a description of how performance meas-
ures are consistent across the 4 grant programs
established in titles II and III, subtitle A of title
IV, and title I of the Vocational Rehabilitation
Act of 1973.
(3) A description of how the State has complied,
or will comply, with the provisions of sections 105
through 108.
(4) A description of how a State will participate
in the National Labor Market Information system
pursuant to subtitle B.
(5) Any information required to be included in
the plan under any of titles II through IV, and title
I of the Vocational Rehabilitation Act of 1973, (in the
case of a State that desires to receive a grant under
any such title).
(6) A description of the measures that will be
taken by the State to ensure coordination and consist-
ency and avoid duplication among programs receiv-
ing assistance under this Act, including a description
of common data collection and reporting processes
(including the establishment of a common manage-
ment information system) across such programs.
(7) A description of the process used by the State
to provide an opportunity for public comment, and
input into the development of the plan, prior to sub-
mission of the plan.
(8) A description of the process used by the State
to consult with representatives of business and indus-
try with respect to the requirements of subparagraphs
(A), (B), and (C) of paragraph (2) of this subsection.
(9) Assurances that the State will provide for fis-
cal control and fund accounting procedures that may
be necessary to ensure the proper disbursement of, and
accounting for, funds paid to the State under this
Act.
(10) A description of the sanctions which the
State may impose (including restrictions from future
participation or consideration for funding) in in-
stances where recipients of funds under this Act fail
to achieve agreed upon performance measures, fail to
adhere to State mandated fiscal control and funds ac-
counting procedures, or take or fail to take other ac-
tions required under the State plan, contracts, or
other agreements.
(c) AUTHORITY OF GOVERNOR.—
(1) FINAL AUTHORITY.—If, after a reasonable ef-
fort, a Governor is unable to obtain agreement
through the collaborative process described in sub-
section (b)(1), the Governor shall have final authority
to make decisions and submit a plan for the design
of a comprehensive system of workforce development
and literacy for the State under subsection (a).
(2) DISAGREEMENT.—The Governor shall accept
and include with the plan submitted under paragraph
(1) any disagreeing views submitted by a participant
of the collaborative process if such views represent dis-
agreement in the area in which such participant was
selected for representation.
(3) EXCEPTION.—Nothing in this Act shall be
construed to negate or supersede the legal authority,
under State law or other applicable law, of any State
agency, State entity, or State public official over pro-
grams that are under the jurisdiction of the agency,
entity, or official. Nothing in this Act shall be con-
strued to interfere with the authority of such agency,
entity, or official to enter into a contract under any
provision of law.
(d) MODIFICATIONS TO PLAN.—A plan submitted by
a State in accordance with this section remains in effect
until the State submits to the Secretary such modifications
as the State determines necessary. This section applies to
the modifications to the same extent and in the same man-
ner as this section applies to the original plan.
(e) ALLOCATION OF RESPONSIBILITIES OF SECRETAR-
IES.—The Secretary of Education and the Secretary of
Labor shall collaborate in establishing and using a common
procedure in making determinations regarding compliance
by the States with the requirements established in this title.
SEC. 105. ESTABLISHMENT OF WORKFORCE DEVELOPMENT
AREAS.
The Governor of a State that desires to receive a grant
under one or more of the programs specified in section
102(b) shall, through the collaborative process established
under section 103 and after consultation with local chief
elected officials, and after consideration of comments re-
ceived through the public participation process as described
in the State plan, designate local workforce development
areas within the State. Such areas shall be designated tak-
ing into consideration the following:
(1) Existing labor market areas.
(2) Units of general local government.
(3) Geographic areas served by local educational
agencies and intermediate educational agencies.
(4) Geographic areas served by postsecondary in-
stitutions and area vocational education schools.
(5) Service delivery areas established under sec-
tion 101 of the Job Training Partnership Act (29
U.S.C. 1511) (as such Act was in effect on the day
before the date of the enactment of this Act).
(6) The distance that individuals will need to
travel to receive services from one-stop career centers.
SEC. 106. PROVISIONS REGARDING LOCAL WORKFORCE DE-
VELOPMENT BOARDS.
(a) IN GENERAL.—The Governor of a State that de-
sires to receive a grant under one or more of the programs
specified in section 102(b) shall ensure the establishment of
a local workforce development board in each local workforce
development area within the State.
(b) STATE CRITERIA.—The Governor, through the col-
laborative process described under section 103, shall estab-
lish criteria for use by local chief elected officials in the
workforce development area, in the selection of members of
local workforce development boards, in accordance with re-
quirements prescribed under subsections (c) and (d).
(c) REPRESENTATION REQUIREMENT.—Such criteria
shall require, at a minimum, that a local workforce develop-
ment board consist of—
(1) a majority of members who are representa-
tives of business and industry, including individuals
who are owners of businesses, chief executives or chief
operating officers of private business, and other busi-
ness executives with optimum policymaking authority
in local businesses, selected from among nominees sub-
mitted by local business organizations and trade asso-
ciations;
(2) an individual or individuals with disabil-
ities, who have special knowledge or expertise in the
area of vocational rehabilitation;
(3) representatives of education, including local
educational agencies and postsecondary institutions,
selected from among individuals nominated by re-
gional or local educational agencies, vocational edu-
cation institutions, institutions of postsecondary in-
stitutions (including community colleges), or general
organizations 
of 
such 
institutions 
within 
the
workforce development area; and
(4) representatives of community-based organiza-
tions, employees, and veterans as nominated or rec-
ommended to the board through a process established
by the Governors through the collaborative process.
(d) ESTABLISHMENT OF BOARD.—
(1) SELECTION OF BOARD MEMBERS.—
(A) SINGLE UNIT OF LOCAL GOVERNMENT
IN AREA.—In the case of a workforce develop-
ment area that is comprised of only one unit of
general local government, the chief elected official
of such unit shall select the members of the local
workforce development board for such area, in
accordance with the State criteria developed pur-
suant to subsection (b).
(B) MULTIPLE UNITS IN AREA.—In the case
of a workforce development area that is com-
prised of more than one unit of general local gov-
ernment, the chief elected official of such units
shall select the members of the local workforce de-
velopment board from the individuals so nomi-
nated or recommended for such area in accord-
ance with an agreement entered into by such of-
ficials and with the State criteria developed
under subsection (b). In the absence of such an
agreement, the appointments shall be made by
the Governor, through the collaborative process,
from the individuals so nominated or rec-
ommended.
(2) CERTIFICATION.—The Governor shall bienni-
ally certify one local workforce development board for
each workforce development area.
(3) EXCEPTION.—In any case in which a local
workforce development area is a State, the individuals
comprising the Governor’s collaborative process as de-
scribed in section 103, may be reconstituted to meet
the requirements of this section.
(e) DUTIES OF LOCAL WORKFORCE DEVELOPMENT
BOARD.—
(1) LOCAL WORKFORCE DEVELOPMENT PLAN.—
Each local workforce development board shall develop
a biennial strategic plan and provide policy guidance
with respect to workforce development programs oper-
ated within their respective workforce development
areas. Such strategic plan shall be consistent with the
State’s collaborative workforce development and lit-
eracy plan, shall be approved by the appropriate chief
elected official or officials, and shall be submitted to
the Governor for approval. If after a reasonable effort,
a local workforce development board is unable to ob-
tain the approval of the chief elected official or offi-
cials, the Board has the authority to forward the
plan, with the comments of the chief elected official or
officials, to the Governor for final approval or dis-
approval. Such local plan shall include the following:
(A) Both short-term and long-term goals,
and related strategies, to ensure that workforce
preparation and development programs, includ-
ing programs established pursuant to this Act,
title I of the Rehabilitation Act of 1973, and the
Wagner-Peyser Act, contribute to a coherent
workforce development system in the workforce
development area.
(B) A description of the performance meas-
ures to be used by the local workforce develop-
ment board for measuring the performance of
local service providers under chapter 2 of title II,
title III, and title I of the Rehabilitation Act of
1973, and the performance of one-stop career
center operators, with whom the Board contracts.
(C) A description of the local one-stop ca-
reer center system to be established in the
workforce development area, including—
(i) a description of the process the local
workforce development board will use to des-
ignate or establish career center system
which ensures that the most effective and ef-
ficient service providers are chosen;
(ii) an identification of the roles of in-
dividual workforce development programs,
including programs authorized by the Wag-
ner-Peyser Act; and
(iii) a description of the funding
sources to be used in the operation of the ca-
reer center system.
(D) A description of strategies the local
workforce development board will undertake to
fully involve local employers, local educational
agencies, postsecondary education institutions,
adult education and literacy providers, local
service providers, and other consumers, including
individuals with disabilities, in the development
of the workforce development system.
(E) Such other information as requested by
the State.
(2) IDENTIFICATION
OF
OCCUPATIONS
IN
DE-
MAND AND TRAINING NEEDS.—The local workforce de-
velopment board shall use available labor market in-
formation and other appropriate methods in order to
identify and assess the needs of the workforce develop-
ment area with regard to—
(A) current and projected demand for work-
ers by occupation;
(B) skill levels, including literacy and basic
skills, of the local workforce and the needs of
business and industry for a skilled workforce;
(C) economic development needs of the area;
(D) the type and availability of workforce
preparation and development programs in the
area; and
(E) the needs for vocational rehabilitation
among individuals with disabilities.
Such information shall be used to develop the goals of,
and activities provided by the workforce development
programs in the local area.
(3) BUDGET AND PROGRAM OVERSIGHT.—
(A) BUDGETING.—
(i) The local workforce development
board, working through the State adminis-
trative agent, shall develop a budget for the
purpose of carrying out local programs es-
tablished under chapter 2 of title II, title
III, and title I of the Rehabilitation Act of
1973, and for one-stop career center systems
established or designated under section 107.
(ii) Such budget shall be subject to the
approval of the appropriate chief elected of-
ficial or officials in the workforce develop-
ment area.
(B) 
PROGRAM
OVERSIGHT.—The 
local
workforce development board, in partnership
with the chief elected official or officials in the
workforce development area, shall conduct over-
sight of the workforce development programs list-
ed in subparagraph (A), and of one-stop career
centers established under this title.
(4) ADMINISTRATION.—
(A) FISCAL AGENT.—
(i) The local workforce development
board may receive and disburse funds made
available for carrying out programs author-
ized under chapter 2 of title II, title III,
and title I of the Rehabilitation Act of 1973
of this Act, or the local workforce develop-
ment board may designate a fiscal agent
(which may include the State through a
mutual agreement between the local board
and the State), for the purpose of disburse-
ment of funds to one-stop centers and other
service providers, as designated by the local
workforce development board.
(ii) The Board may employ its own
staff, independent of local programs and
service providers, and may solicit or accept
grants and contributions from sources other
than from this Act.
(B) LIMITATION.—The workforce develop-
ment board, or employees of such board, may not
operate programs established under this Act.
(C) CONFLICT OF INTEREST.—A member of
a workforce development board may not—
(i) discuss or participate in board con-
sideration; or
(ii) cast a vote;
regarding the provision of services by such mem-
ber (or by an organization that such member
represents) or regarding any matter that would
provide direct financial benefit to such member.
The Governor may enforce more rigorous conflict
of interest standards, as determined appropriate.
(D) INDEPENDENT AUTHORITY.—
(i) The Board shall elect its own chair-
person from among the members of the
board.
(ii) The board may adopt bylaws and
other operating procedures as consistent
with the purposes of this Act, and with the
policies established in the State workforce
development and literacy plan.
(5) OTHER.—Each local workforce development
board shall carry out such other duties as determined
to be appropriate by the Governor and the individ-
uals and entities described in section 103, through the
collaborative process described in the State plan.
SEC. 107. ESTABLISHMENT OF ONE-STOP CAREER CENTER
SYSTEMS.
(a) IN GENERAL.—The Governor of a State that de-
sires to receive a grant under one or more of the programs
specified in section 102(b) shall ensure that each local
workforce development board shall establish or designate a
one-stop career center system in the workforce development
area of such board, consistent with criteria established
under subsection (b).
(b) STATE CRITERIA.—The Governor, through the col-
laborative process described under section 103, shall estab-
lish statewide criteria for use by local workforce develop-
ment boards in the designation or establishment of one-stop
career center systems to ensure that the most effective and
efficient service providers are chosen. Such criteria shall be
consistent with the requirements prescribed under sub-
section (c).
(c) ONE-STOP CAREER CENTER SYSTEM REQUIRE-
MENTS.—At a minimum, one-stop career center systems
shall include—
(1) common intake;
(2) preliminary assessment;
(3) integrated job search assistance;
(4) to the extent practicable, as determined by
the Governor, unified and linked computer systems,
including the availability of labor market informa-
tion as described under subtitle B, and linkages
through uniform management information systems;
and
(5) to the extent practicable, as determined by
the Governor, at least one physical, co-located site
which provides comprehensive and fully integrated
workforce development services to any individual seek-
ing such services.
Local workforce development areas are encouraged to estab-
lish a network of comprehensive and fully-integrated co-lo-
cated one-stop career centers to provide the services de-
scribed in subsection (f), supplemented with multiple affili-
ated sites or satellites that provide one or more of such serv-
ices and are linked through electronic and technological ac-
cess points. Such affiliated sites may include entities des-
ignated as having a specialization in addressing special
needs, such as the needs of individuals with disabilities.
(d) COMMON ACCESS.—Information pertaining to the
labor market which is compiled pursuant to the Wagner-
Peyser Act, as described in subtitle B of this title, shall be
available, to the extent practicable, through integrated elec-
tronic networks, at all one-stop career centers and affiliated
sites.
(e) ELIGIBILITY FOR DESIGNATION.—Any entity or
consortium of entities located in the workforce development
area may be designated by the local workforce development
board to operate a one-stop career center or to participate
in a one-stop career center system. Such entities may in-
clude the following:
(1) Institutions of higher education.
(2) Local educational agencies.
(3) Area vocational education schools.
(4) Local employment service offices, established
under the Wagner-Peyser Act.
(5) Private nonprofit organizations (including
community-based organizations).
(6) Private for-profit entities.
(7) Agencies of local governments.
(8) Other interested organizations and entities of
demonstrated effectiveness, including local chambers
of commerce and other business organizations, consist-
ent with State criteria established pursuant to sub-
section (b).
(f) DUTIES.—Each one-stop career center shall carry
out the following duties:
(1) PROVISION
OF
CORE
SERVICES.—A center
shall make available the following information and
core services to individuals on a universal and non-
discriminatory basis, with reasonable accommoda-
tions to address the needs of individuals with disabil-
ities, in the workforce development area in which such
center is located:
(A) Outreach and intake for services pro-
vided under chapter 2 of title II, title III, sub-
title A of title IV, and title I of the Rehabilita-
tion Act of 1973.
(B) A preliminary assessment of the skill
levels and the need for services of the individual
for programs under chapter 2 of title II, title III,
subtitle A of title IV, and title I of the Rehabili-
tation Act of 1973 of individuals, which may in-
clude such factors as basic skills, occupational
skills, career development skills, prior work expe-
rience, employability, interests, aptitudes, voca-
tional rehabilitation needs, and supportive serv-
ice needs.
(C) Information relating to local and State,
and if appropriate, to regional or national, occu-
pations in demand and skill requirements for
such occupations.
(D) Information relating to youth services,
including information on at-risk youth workforce
development programs authorized under title II,
on school-to-work opportunities, and on youth
apprenticeship opportunities.
formance standards described in the State plan,
and the performance-based information provided
by the State to local workforce development
boards on certified providers of education and
training, as required under section 108(d)(3).
(K) Information on industry-recognized
skill standards and assessments.
(L) Job listings for local labor market op-
portunities.
(M) Acceptance of applications for unem-
ployment compensation.
(N) Other appropriate activities to assist
individuals into employment.
(2) DISTRIBUTION
OF
VOUCHERS
AND
SKILL
GRANTS.—A center shall serve as the point of dis-
tribution of vouchers for education, training, and vo-
cational rehabilitation services to eligible individuals
in accordance with section 108.
(3) SPECIAL ARRANGEMENTS.—For the purpose
of providing core services to individuals with severe
disabilities in the most effective and efficient manner
possible, the one-stop career center may arrange to
have such core services provided to an individual by
a certified provider, either on a contract basis or
through the use of vouchers.
(g) ADDITIONAL SERVICES.—One-stop career centers
may provide customized workforce development services to
employers on a fee-for-service basis, as determined by the
local workforce development board.
(h) ALTERNATIVE STATE PROCEDURE.—Through the
collaborative process described in section 103, the Governor
has the authority to develop alternative procedures to the
one-stop career center system, which are designed to accom-
plish the full integration of workforce development pro-
grams. These alternative procedures shall be described in
a proposal to the Secretaries of Education and Labor for
joint review and approval or disapproval within 60 days.
SEC. 108. CERTIFICATION OF EDUCATION, TRAINING, AND
VOCATIONAL REHABILITATION SERVICE PRO-
VIDERS.
(a) ELIGIBILITY REQUIREMENTS.—A program offered
by a provider of education and training services shall be
eligible to receive funds under title III, and title I of the
Vocational Rehabilitation Act of 1973 through the receipt
of vouchers, skill grants, or through contract, if such pro-
gram and provider—
(1) are either—
(A) eligible to participate in title IV of the
Higher Education Act of 1965, or
(B) determined to be eligible under the pro-
cedures described in subsection (b); and
(2) provides the performance-based information
required pursuant to subsection (c), except that pro-
viders eligible under subparagraph (A) only have to
provide information for programs other than pro-
grams leading to a degree.
(b) ALTERNATIVE ELIGIBILITY PROCEDURE.—(1) The
Governor shall establish an alternative eligibility procedure
for providers of education, training, and vocational reha-
bilitation services in any State desiring to receive funds
under title III of this Act and title I of the Vocational Reha-
bilitation Act of 1973, but that are not eligible to partici-
pate in title IV of the Higher Education Act of 1965. Such
procedure shall establish minimum acceptable levels of per-
formance for such providers, and shall be based on guide-
lines developed by the Secretaries of Labor and Education.
The Governor shall utilize the local workforce development
boards, for the identification and certification of qualified
providers of education, training, and vocational rehabilita-
tion services. During a transition period, not to exceed 2
years, certification of programs and providers under this
subsection shall be based on the performance of such pro-
grams and providers under the Job Training Partnership
Act, the Vocational Rehabilitation Act, or other objective
measures of previous performance, such as employer evalua-
tions.
(2) Notwithstanding paragraph (1), if the participa-
tion of an institution of higher education in any of the pro-
grams under such title of such Act is terminated, such insti-
tution shall not be eligible to receive funds under this Act
for a period of two years.
(c) PERFORMANCE-BASED INFORMATION.—The State
shall identify performance-based information that is to be
submitted by providers of services for programs to be eligible
under this section. Such information may include informa-
tion, consistent with guidelines developed by the Secretaries
of Education and Labor, relating to—
(1) the percentage of students completing the pro-
grams conducted by the provider;
(2) the rates of licensure of graduates of the pro-
grams conducted by the provider;
(3) the percentage of graduates of the programs
meeting skill standards and certification requirements
endorsed by the National Skill Standards Board es-
tablished under the Goals 2000: Educate America Act;
(4) the rates of placement and retention in em-
ployment, and earnings of the graduates of the pro-
grams conducted by the provider;
(5) the percentage of students who obtained em-
ployment in an occupation related to the program
conducted by the provider;
(6) the warranties or guarantees provided by
such provider relating to the skill levels or employ-
ment to be attained by students; and
(7) other information for providers of services
under title I of the Rehabilitation Act of 1973 that re-
flects the priority of serving individuals with severe
disabilities.
(d) ADMINISTRATION.—
(1) STATE
AGENCY.—The Governor shall des-
ignate a State agency to collect, verify, and dissemi-
nate the performance-based information submitted
pursuant to subsection (c).
(2) APPLICATION.—A provider of education and
training services that desires to be eligible to receive
funds under this title shall submit the information re-
quired under subsection (c) to the State agency des-
ignated under paragraph (1) at such time and in
such form as such State agency may require.
(3) LIST OF ELIGIBLE PROVIDERS.—The State
agency shall compile a list of eligible programs and
providers, accompanied by the performance-based in-
formation submitted, and disseminate such list and
information to the local workforce development boards
within the State.
(4) ACCURACY OF INFORMATION.—
(A) IN GENERAL.—If the State agency de-
termines that information concerning a provider
is inaccurate, such provider shall be disqualified
from receiving funds under this title for a period
of not less than two years, unless such provider
can demonstrate to the satisfaction of the Gov-
ernor or his or her designee, that the information
was provided in good faith.
(B) APPEAL.—The Governor shall establish
a procedure for a service provider to appeal a
determination by a State agency that results in
a disqualification under subparagraph (A). Such
procedure shall provide an opportunity for a
hearing and prescribe appropriate time limits to
ensure prompt resolution of the appeal.
(5) ASSISTANCE IN DEVELOPING INFORMATION.—
The State agency established pursuant to paragraph
(1) may provide technical assistance to education,
training, and vocational rehabilitation providers in
developing the information required under subsection
(b). Such assistance may include facilitating the uti-
lization of State administrative records, such as un-
employment compensation wage records, and other
appropriate coordination activities.
(e) ON-THE-JOB TRAINING EXCEPTION.—
(1) IN GENERAL.—Providers of on-the-job train-
ing shall not be subject to the requirements of sub-
sections (a), (b), (c), and (d).
(2) COLLECTION AND DISSEMINATION OF INFOR-
MATION.—The Workforce Development Board shall
collect such performance-based information from on-
the-job training providers as the Governor may re-
quire, and shall disseminate such information to the
one-stop career centers.
SEC. 109. MANAGEMENT INFORMATION SYSTEMS.
(a) IN GENERAL.—Each State shall use a portion of
the funds it receives under this Act to design a unified man-
agement information system that is in accordance with
guidelines established jointly by the Secretaries in consulta-
tion with the Governors.
(b) REQUIREMENTS.—Each unified management in-
formation system shall, to the extent practicable as deter-
mined by the Governor—
(1) be utilized for federally required fiscal report-
ing and monitoring for each of the programs author-
ized under this Act;
(2) be used by all agencies involved in workforce
development activities, including one-stop career cen-
ters which shall have the capability to track the over-
all public investments within the State and workforce
development areas, and to inform policymakers as to
the results being achieved and the demographic char-
acteristics of the individuals served through that in-
vestment;
(3) contain a common structure of financial re-
porting requirements, fiscal systems and monitoring
for all workforce development expenditures included
in the workforce development system that shall utilize
common data elements and the definitions included in
section 5;
(4) support local efforts to establish workforce de-
velopment systems, including intake and eligibility
determination for all services;
(5) contain data on the demographic characteris-
tics on the individual participants served by pro-
grams authorized under this Act, which shall be col-
lected, produced, and published by the Secretaries;
and
(6) be in accordance with guidelines established
jointly by the Secretaries in consultation with the
States.
SEC. 110. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) IN GENERAL.—In order to promote high levels of
performance and to ensure an appropriate return on the
Nation’s investment in the workforce development and lit-
eracy system, each State receiving funds under this Act
shall develop, or have developed, a statewide performance
accountability system in accordance with the provisions of
this section.
(b) INDICATORS OF PERFORMANCE.—
(1) IN GENERAL.—Each State receiving funds
under this Act shall identify indicators of perform-
ance for each of the programs established under titles
II through IV of this Act and title I of the Vocational
Rehabilitation Act of 1973, consistent with State
goals as described in the State plan in accordance
with section 104. Such indicators shall at a mini-
mum include core indicators described in such titles.
Such indicators may also take into account post-pro-
gram surveys measuring customer satisfaction of both
employers and program participants.
(2) TECHNICAL DEFINITIONS OF CORE INDICA-
TORS.—In order to ensure nationwide comparability
of performance data, the Secretary of Labor and the
Secretary of Education, in collaboration with the
States and with representatives of business and in-
dustry, employees, educational agencies, service pro-
viders, participants, and other interested parties,
shall promulgate technical definitions of each of the
core indicators described in titles II through IV of
this Act and in title I of the Vocational Rehabilita-
tion Act. Such definitions shall be used under this Act
in measuring performance.
(c) EXPECTED LEVELS OF PERFORMANCE.—
(1) IN GENERAL.—(A) Each State shall identify
the level of performance, consistent with State goals
described under section 104, that is expected for local
workforce development areas and other applicable
local administrative entities under this Act. In deter-
mining such levels, the State shall take into account
the world class levels identified under paragraph (2),
and shall initially develop baseline levels of perform-
ance upon which States will measure continuous im-
provement.
(B) The Governor, through the collaborative
process, may adjust the expected level of performance
with respect to each local area taking into account
specific economic, demographic, and geographic fac-
tors, and the characteristics of the population to be
served.
(2) WORLD CLASS LEVELS OF PERFORMANCE.—
In order to encourage high levels of performance and
advance the Nation’s competitiveness in the global
economy, the Secretary of Labor and the Secretary of
Education, in collaboration with the States and with
representatives of business and industry, employees,
educational agencies, service providers, participants,
and other interested parties, shall identify world class
levels of performance with respect to appropriate core
indicators selected from among the core indicators de-
scribed in titles II through IV and in title I of the
Vocational Rehabilitation Act of 1973. Where applica-
ble, such world class standards shall reflect industry-
recognized skill standards and the National Edu-
cation Goals.
(d) REPORT ON PERFORMANCE.—
(1) IN GENERAL.—The State shall report to the
Secretary of Labor and the Secretary of Education,
the levels of performance achieved by local workforce
development areas and other applicable local admin-
istrative entities with respect to the indicators identi-
fied pursuant to subsection (b)(1) for each program
year. The Secretaries shall make such information
available to the general public through publication
and other appropriate methods, and shall disseminate
State-by-State comparisons, and comparisons with
other industrialized nations (where appropriate).
(2) REPORTING OPTIONS.—In the collection and
reporting of such data, States are encouraged to uti-
lize administrative reporting data on quarterly earn-
ings, establishment and industry affiliation, and geo-
graphic location of employment, such as unemploy-
ment insurance wage-data records.
(e) CONSEQUENCES FOR POOR PERFORMANCE.—
(1) CRITERIA.—The Governor, through the col-
laborative process, shall establish criteria for deter-
mining whether local workforce development areas
and other applicable local administrative entities
have failed to meet expected levels of performance with
respect to programs under this Act.
(2) CONSEQUENCES FOR POOR PERFORMANCE.—
(A) STATE
CONSEQUENCES.—If a State
fails to meet expected levels of performance for a
program for any program year as established
pursuant to subsection (a), the Secretary of Edu-
cation or the Secretary of Labor, as appropriate
to the particular program, may provide tech-
nical assistance, including assistance in the de-
velopment of a performance improvement plan.
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 expected levels of performance.
(B) LOCAL CONSEQUENCES.—(i) 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 the criteria established in
paragraph (1), the Governor, through the collabo-
rative process, may provide technical assistance,
including the development of a performance im-
provement plan.
(ii) If such failure continues for a second
consecutive year, the Governor may take correc-
tive actions, such as the withholding of funds, the
redesignation of a local administrative entity, or
such other actions as the Governor, through the
collaborative process, determines are appropriate,
consistent with State law, section 104(c)(3) of
this Act, and the requirements of this Act.
Subtitle B—Amendments to
Wagner-Peyser Act
SEC. 131. GENERAL PROGRAM REQUIREMENTS.
(a) DEFINITIONS.—Section 2 of the Act of June 6,
1933 (commonly known as the ‘‘Wagner-Peyser Act’’) (29
U.S.C. 49a) is amended—
(1) in paragraph (1), by striking ‘‘Job Training
Partnership Act’’ and inserting ‘‘Consolidated and
Reformed Education, Employment, and Rehabilita-
tion Systems Act’’;
(2) in paragraph (2) to read as follows:
‘‘(2) the term ‘local workforce development board’
means a local workforce development board estab-
lished under title I of the Consolidated and Reformed
Education, Employment, and Rehabilitation Systems
Act;’’;
(3) in paragraph (4) to read as follows:
‘‘(4) the term ‘local workforce development area’
means a local workforce development area established
under title I of the Consolidated and Reformed Edu-
cation, Employment, and Rehabilitation Systems
Act;’’;
(4) in paragraph (5), by striking the period at
the end and inserting a semicolon; and
(5) by adding at the end the following new para-
graphs:
‘‘(6) the term ‘local public service office’ means
an office which provides employment services to the
general public under a one-stop career center system;
and
‘‘(7) the term ‘one-stop career center system’
means a one-stop career center system established
under title I of the Consolidated and Reformed Edu-
cation, Employment, and Rehabilitation Systems
Act.’’.
(b) DUTIES.—Section 3(a) of such Act (29 U.S.C.
49b(a)) is amended to read as follows:
‘‘(a) The Secretary of Labor shall, pursuant to title
II of the Wagner-Peyser Act—
‘‘(1) assist in the coordination and development
of a nationwide system of labor exchange services for
the general public, provided through the one-stop ca-
reer center system, in coordination with the public
employment services;
‘‘(2) assist in the development of performance
standards, benchmarks, and continuous improvement
models for such nationwide system which ensures pri-
vate sector satisfaction and meets the demands of job-
seekers; and
‘‘(3) ensure the continued services for individuals
receiving unemployment compensation.’’.
(c) REQUIREMENTS FOR RECEIPT OF FUNDS.—Sec-
tion 4 of such Act (29 U.S.C. 49c) is amended by striking
‘‘a State shall, through its legislature’’ and inserting ‘‘the
Governor of a State, through the collaborative process de-
scribed in title I of the Consolidated and Reformed Edu-
cation, Employment, and Rehabilitation Systems Act’’.
(d) AUTHORIZATION OF APPROPRIATIONS.—Section 5
of such Act (29 U.S.C. 49d) is amended by inserting before
the period at the end the following: ‘‘, of which not less than
25 percent shall be for carrying out both section 14 and
title II of this Act’’.
(e) USE OF FUNDS UNDER THIS ACT.—Section 7(c)(2)
of such Act (29 U.S.C. 49f(c)(2)) is amended by striking
‘‘any of the following provisions of law’’ and all that follows
and inserting ‘‘the Consolidated and Reformed Education,
Employment, and Rehabilitation Systems Act.’’.
(f) STATE PLAN.—Section 8 of such Act (29 U.S.C.
49g) is amended—
(1) in subsection (a) to read as follows:
‘‘(a) Any State desiring to receive assistance under
this Act shall submit to the Secretary, as part of the State
workforce development and literacy plan authorized under
title I of the Consolidated and Reformed Education, Em-
ployment, and Rehabilitation Systems Act, detailed plans
for carrying out the provisions of this Act within such
State.’’;
(2) by striking subsections (b), (c), and (e); and
(3) by redesignating subsection (d) as subsection
(b).
(g) ELIMINATION OF FEDERAL ADVISORY COUNCIL.—
Section 11 of such Act (29 U.S.C. 49j) is hereby repealed.
(h) CONFORMING AMENDMENTS.—
(1) After section 2 of such Act insert the follow-
ing new heading:
‘‘TITLE I—GENERAL PROGRAM
REQUIREMENTS’’
(2) Section 4 of such Act is amended by striking
‘‘United States Employment Service’’ and inserting
‘‘Secretary of Labor’’.
(3) Section 7(b)(2) of such Act is amended by
striking ‘‘private industry council’’ and inserting
‘‘local workforce development board’’.
(4) Section 7(d) of such Act is amended—
(A) by striking ‘‘United States Employment
Service’’ and inserting ‘‘Secretary of Labor’’;
and
(B) by striking ‘‘Job Training Partnership
Act’’ and inserting ‘‘Consolidated and Reformed
Education, Employment, and Rehabilitation
Systems Act’’.
(5) Section 12 of such Act is amended by strik-
ing ‘‘The Director, with the approval of the Secretary
of Labor,’’ and inserting ‘‘The Secretary of Labor’’.
SEC. 132. LABOR MARKET INFORMATION.
The Act of June 6, 1933 (commonly known as the
‘‘Wagner-Peyser Act’’; 29 U.S.C. 49), as amended by section
131, is further amended by adding at the end the following
new title:
‘‘TITLE II—LABOR MARKET
INFORMATION
‘‘SEC. 21. PURPOSE.
‘‘The purpose of this title is to ensure a comprehensive
and coordinated system of labor market information which
will provide locally based, accurate, up-to-date, easily acces-
sible, and user friendly labor market information through
a cooperative Federal, State, and local governance structure
which includes partnerships with the private sector at all
levels.
‘‘SEC. 22. SYSTEM CONTENT.
‘‘The Secretary of Labor, in accordance with the provi-
sions of this title, shall oversee the development, mainte-
nance, and continuous improvement of a nationwide system
of labor market information using data from all available
and appropriate sources, which shall include—
‘‘(1) statistical data from survey and projection
programs and data from administrative reporting
systems, which, taken together, shall enumerate, esti-
mate, and project the supply and demand for labor
at national, State, and local levels in a timely man-
ner, including data on—
‘‘(A) the demographic characteristics, as de-
fined in title I of the Careers Act, socioeconomic
characteristics, and current employment status
of the population, including self-employed, part-
time, and seasonal workers, and individuals
with severe disabilities;
‘‘(B) job vacancies, education and training
requirements, skills, wages, benefits, working con-
ditions, and industrial distribution of occupa-
tions, as well as current and projected employ-
ment opportunities and trends by industry and
occupation;
‘‘(C) the educational attainment, training,
skills, skill levels, and occupations of the popu-
lation by demographic characteristics such as
unemployment insurance wage data records;
‘‘(D) information maintained in a longitu-
dinal manner on the quarterly earnings, estab-
lishment and industry affiliation, and geo-
graphic location of employment for all individ-
uals for whom such information is collected by
the States; and
‘‘(E) the incidence, industrial and geo-
graphical location, and number of workers dis-
placed by permanent layoffs and plant closings;
‘‘(2) State and local employment and consumer
information on—
‘‘(A) job openings, locations, hiring require-
ments, and application procedures, as well as
profiles of employers in the local labor market
describing the nature of work performed, employ-
ment requirements, wages, benefits, and hiring
patterns;
‘‘(B) job seekers, including their education
and training, skills, skill levels, employment ex-
perience, and employment goals; and
‘‘(C) education courses, training programs,
job placement programs, and vocational rehabili-
tation programs (where appropriate), includ-
ing—
‘‘(i) performance information, such as
the ratio of program completion, acquisition
of industry-recognized skill standards, job
placement, earnings, and the level of satis-
faction of the participants and their em-
ployers; and
‘‘(ii) descriptive information, such as
eligibility requirements, costs, financial
support, or other supportive services, and
other appropriate information which may
be available with these courses and pro-
grams;
‘‘(3) technical standards for data and informa-
tion that will—
‘‘(A) ensure compatibility and additivity of
data and information from local to State and
national levels;
‘‘(B) support standardization and aggrega-
tion of data and information from the adminis-
trative reporting systems of employment-related
programs; and
‘‘(C) include—
‘‘(i) classification and coding systems
for industries, occupations, skills, programs,
and courses;
‘‘(ii) nationally standardized defini-
tions of terms;
‘‘(iii) a common system for designating
geographic areas;
‘‘(iv) quality control mechanisms for
data collection and analysis; and
‘‘(v) common schedules for data collec-
tion and dissemination;
‘‘(4) analysis of data and information for uses
including—
‘‘(A) national, State, and local economic
policymaking;
‘‘(B) the implementation of Federal policies,
including the allocation of Federal funds to
States and localities and the facilitation of job
search and hiring in local labor markets;
‘‘(C) national, State, and local program
planning and evaluation; and
‘‘(D) research on labor market dynamics;
‘‘(5) dissemination mechanisms for data and
analysis, including mechanisms which may be stand-
ardized among the States and technical standards in
the design of automated databases, and the design of
user interfaces and communications protocols;
‘‘(6) programs of technical assistance for States
and localities in the development, maintenance, and
utilization of data, analysis, and dissemination mech-
anisms, including assistance in adopting and utiliz-
ing automated systems and improving the access,
through electronic and other means, of youth, adults,
and employers to labor market information for local-
ities, States, and the Nation;
‘‘(7) programs of research and demonstration,
which may be carried out by States and other public
or private entities, on ways to improve the products
and processes authorized in this title; and
‘‘(8) objective performance measures, which will
allow for the continuous monitoring of the progress of
the labor market information system at national,
State, and local levels.
‘‘SEC. 23. FEDERAL RESPONSIBILITIES.
‘‘(a) IN GENERAL.—The Nation’s labor market infor-
mation system shall be planned, administered, overseen,
and evaluated by a cooperative governance structure involv-
ing the Federal Government and the States.
‘‘(b) DUTIES.—The Secretary, with respect to data col-
lection, analysis, and dissemination of labor market infor-
mation, shall carry out the following duties:
‘‘(1) Ensure that all statistical and administra-
tive data collection activities within the Department
of Labor, including the Employment and Training
Administration, Veterans’ Employment and Training
Service, Employment Standards Administration, and
Occupational Health and Safety Administration, are
consistent with those of the Bureau of Labor Statis-
tics.
‘‘(2) Assign responsibilities, as appropriate, to
agencies such as the Employment and Training Ad-
ministration to work with the Bureau of Labor Sta-
tistics in the collection, analysis and, particularly, in
the dissemination of labor market information, and
in the provision of training and technical assistance
to users of information, including the States, employ-
ers, youth, and adults.
‘‘(3) In cooperation with other Federal agencies,
including but not limited to the Departments of Com-
merce, Defense, Treasury, Education, Health and
Human Services, Agriculture, Veterans’ Affairs, and
the Office of Management and Budget, establish and
maintain mechanisms for ensuring complementarity
and nonduplication in the development and operation
of statistical and administrative data collection ac-
tivities, in order to ensure a comprehensive labor
market information system.
‘‘(4) Actively seek the participation of other Fed-
eral agencies, particularly the National Center for
Education Statistics and the Division of Adult and
Vocational Education, and the Rehabilitation Serv-
ices Administration of the Department of Education,
the Veterans’ Employment and Training Service of
the Department of Labor and the Department of Vet-
erans’ Affairs with respect to vocational rehabilitation
programs in the design and provision of standardized
information to the States to support section 22(2),
and in the dissemination of labor market informa-
tion.
‘‘(5) Establish confidentiality standards for the
labor market information system at national, State,
and local levels, including such provisions as may be
necessary, to be taken in coordination with the States,
to ensure that privacy and confidentiality protections
are guaranteed with respect to individuals and firm
data.
‘‘(c) ADDITIONAL DUTIES.—The Secretary, in collabo-
ration with the Bureau of Labor Statistics, with the assist-
ance of other agencies of the Department where appropriate,
shall—
‘‘(1) establish and maintain, with the coopera-
tion of the States, elements of the system described in
sections 22(1) and 22(3);
‘‘(2) develop and promulgate standards, defini-
tions, formats, collection methodologies, and other nec-
essary system elements for the use of the States in
their assembling and presentation of the employment
information specified in section 22(2);
‘‘(3) eliminate gaps and duplication in statis-
tical undertakings, with the systemization of wage
surveys as an early priority;
‘‘(4) recommend any needed improvements in
administrative reporting systems to support the devel-
opment of labor market information from their data;
and
‘‘(5) ensure that—
‘‘(A) data are sufficiently timely and locally
detailed for uses including those specified in sec-
tion 22(4);
‘‘(B) administrative records are standard-
ized to facilitate the aggregation of data from
local to State and national levels and to support
the creation of new statistical series from pro-
gram records; and
‘‘(C) paperwork and reporting requirements
on employers and individuals are reduced.
‘‘SEC. 24. ANNUAL PLAN.
‘‘(a) IN GENERAL.—The Secretary of Labor, working
through the Bureau of Labor Statistics, and in consultation
with other appropriate Federal agencies, shall prepare an
annual plan, which shall be the operational mechanism for
achieving a cooperative Federal/State governance structure
for labor market information. The annual plan shall pro-
vide the verbal justification for the Department of Labor’s
budget request to Congress by describing the activities of
the Bureau, other agencies of the Department of Labor, and
other Federal agencies with regard to data collection, analy-
sis, and dissemination of labor market information for fis-
cal years succeeding the fiscal year in which the plan is
developed and shall include—
‘‘(1) the results of a periodic review of users’
needs, including the identification of new employment
issues and the attendant emergence of new needs, on
the part of Congress, the States, employers, youth,
and adults, for data, analysis, and dissemination;
‘‘(2) an evaluation, including the results of objec-
tive measures, of the performance of the labor market
information system in meeting these needs and the
steps to be taken to overcome deficiencies;
‘‘(3) a summary of ongoing data programs and
activities under section 22 and a description of the
development of new data programs, analytical tech-
niques, definitions and standards, dissemination
mechanisms, training and technical assistance, gov-
ernance mechanisms, and funding processes to meet
new needs; and
‘‘(4) the results of an annual review of the costs
to the States of meeting contract requirements for
data production under this title, including a descrip-
tion of how the Secretary’s requested budget will cover
these costs.
‘‘(b) COOPERATION WITH
THE STATES.—The Sec-
retary shall involve the States with the Bureau of Labor
Statistics in a cooperative manner in the development of
the plan by—
‘‘(1) establishing procedures and mechanisms for
holding formal and periodic consultations on products
and administration of the system, at least once each
quarter, with representatives of the States from each
of the 10 Federal regions of the Department of Labor,
elected by and from among the State directors of labor
market information, according to a process set forth
by the Secretary; and
‘‘(2) incorporating in the annual plan, for its
submission to Congress, the results of these consulta-
tions, including any supplementary or dissenting
views from representatives of the States.
‘‘(c) REPRESENTATIVES OF STATES DEEMED TO BE
FEDERAL EMPLOYEES.—For purposes of the development
of the annual plan and to meet the provisions of Office of
Management and Budget Circular A–11, the representatives
of the States, elected in accordance with subsection (b)(1),
shall be considered to be employees of the Department of
Labor.
‘‘SEC. 25. GOVERNOR’S RESPONSIBILITIES.
‘‘(a) DESIGNATION OF STATE AGENCY.—The Governor
of each State shall designate a single State agency to be
the agency responsible for the management and oversight
of a statewide comprehensive labor market information sys-
tem and for the State’s participation in the cooperative
Federal/State governance structure for the nationwide labor
market information system.
‘‘(b) DUTIES.—In order to receive Federal financial
assistance under this Act, the State agency shall—
‘‘(1) develop, maintain, and continuously im-
prove a comprehensive labor market information sys-
tem, which shall—
‘‘(A) include all the elements specified in
section 22; and
‘‘(B) be responsive to the needs of the State
and its localities for planning and evaluative
data, including employment and economic anal-
yses and projections, as required by this Act, the
Consolidated and Reformed Education, Employ-
ment, and Rehabilitation Systems Act, the So-
cial Security Act, and other provisions of law
under which Congress has required the use of
labor market information;
‘‘(2) ensure the performance of contract and
grant responsibilities for data collection, analysis,
and dissemination;
‘‘(3) conduct such other data collection, analysis,
and dissemination activities as will ensure com-
prehensive State and local labor market information;
‘‘(4) actively seek the participation of other State
and local agencies, with particular attention to State
education, economic development, human services,
and welfare agencies, in data collection, analysis, and
dissemination 
activities 
in 
order 
to 
ensure
complementarity and compatibility among data; and
‘‘(5) participate in the development of the na-
tional annual plan.
‘‘(c) RULE OF CONSTRUCTION.—Nothing in this Act
shall be construed as limiting the State agency’s ability to
conduct additional data collection, analysis, and dissemi-
nation activities with State funds or with Federal funds
from sources other than this Act.’’.
Subtitle C—Worker Rights
SEC. 141. REQUIREMENTS.
The following requirements shall apply to programs
under titles II and III of this Act:
(1) PROHIBITION ON DISPLACEMENT.—A partici-
pant in a program under titles II or III shall not dis-
place any currently employed worker (including a
partial displacement, such as a reduction in the hours
of non-overtime work, wages, or employment benefits).
(2) PROHIBITION
ON
IMPAIRMENT
OF
CON-
TRACTS.—A program under title II or III shall not
impair existing contracts for services or collective bar-
gaining agreements, and no such program that would
be inconsistent with the terms of a collective bargain-
ing agreement shall be undertaken without the written
concurrence of the labor organization and employer
concerned.
(3) PROHIBITION ON REPLACEMENT.—A partici-
pant in a program under title II or III shall not be
employed—
(A) when any other individual is on tem-
porary layoff, with the clear possibility of recall,
from the same or any substantially equivalent
job with the participating employer; or
(B) when the employer has terminated the
employment of any regular employee or other-
wise reduced the workforce of the employer with
the intention of filling the vacancy so created
with the student.
(4) WORKPLACES.—A participant in a program
under title II or III shall be provided with adequate
and safe equipment and safe and healthful workplaces
in conformity with all health and safety requirements
of Federal, State, and local law.
(5) EFFECT ON OTHER LAWS.—Nothing in this
Act shall be construed to modify or affect any Federal
or State law prohibiting discrimination on the basis
of race, religion, color, ethnicity, national origin, gen-
der, age, or disability, or to modify or affect any
right to enforcement of this Act that may exist under
other Federal laws, except as expressly provided by
this Act.
TITLE II—YOUTH DEVELOPMENT
AND CAREER PREPARATION
CONSOLIDATION GRANT
SEC. 201. PURPOSES.
It is the purpose of this title to provide States and
local communities maximum flexibility in designing
workforce preparation programs that—
(1) help individuals attain the academic skills,
as well as occupational skills, needed to be successful
in a global economy and for lifelong learning;
(2) best suit the needs of in-school and at-risk
youth in their communities, as well as the skill needs
of State and local employers;
(3) promote strong connections between in-school
and at-risk programs, to ensure that youth are pre-
pared for good jobs and further education opportuni-
ties, and promote youth development and career prep-
aration programs that provide opportunities for indi-
viduals to receive postsecondary education and occu-
pational training;
(4) promote the formation of business and edu-
cation partnerships that are dedicated to linking the
worlds of school and work; and
(5) promote high academic and occupational
standards and quality vocational-technical education,
including improved secondary and postsecondary pro-
grams, by focusing resources on program improve-
ment initiatives that help prepare students for further
education and training and high-wage jobs in high-
performance workplaces.
SEC. 202. DEFINITIONS.
For purposes of this title:
(1) The term ‘‘administration’’ means activities
of a State necessary for the proper and efficient per-
formance of its duties under this title, including su-
pervision, but does not include curriculum develop-
ment activities, personnel development, or research
activities.
(2) The term ‘‘all aspects of the industry’’ means
strong experience in, and understanding of, all as-
pects of the industry the students are preparing to
enter, including planning, management, finances,
technical and production skills, underlying principles
of technology, labor issues, and health and safety.
(3) The term ‘‘articulation agreement’’ means a
commitment to a program designed to provide stu-
dents with a nonduplicative sequence of progressive
coursework in secondary and postsecondary edu-
cation.
(4) The term ‘‘cooperative education’’ means a
method of instruction of vocational education for in-
dividuals who, through written cooperative arrange-
ments between the school and employers, receive in-
struction, including required academic courses and
related vocational instruction by alternation of study
in school with a job in any occupational field. Such
alternation shall be planned and supervised by the
school and employers so that each contributes to the
student’s education and employability. Work periods
and school attendance may be on alternate half days,
full days, weeks, or other periods of time in fulfilling
the cooperative program.
(5) The term ‘‘corrections vocational education’’
means programs administered by the State to assist
juvenile and adult criminal offenders in correctional
institutions in the State, including correctional insti-
tutions operated by local authorities.
(6) The term ‘‘curricula’’ means instructional
and related or supportive material, including mate-
rials using advanced learning technology, in any oc-
cupational field which is designed to strengthen the
academic foundation and prepare individuals for em-
ployment at the entry level or to upgrade occupa-
tional competencies of those previously or presently
employed in any occupational field, and appropriate
counseling and guidance material.
(7) Except as otherwise provided, the term ‘‘eli-
gible institution’’ means a local educational agency,
an area vocational education school, an intermediate
educational agency, an institution of higher education
(as such term is defined in section 1201(a) of the
Higher Education Act of 1965), a State corrections
educational agency, or consortia of such entities.
(8) The term ‘‘partnership’’ means a local entity
that is responsible for local youth development and
career preparation programs and may consist of em-
ployers, representatives of local educational agencies
and local postsecondary educational institutions (in-
cluding representatives of area vocational education
schools, where applicable), local educators (such as
teachers, counselors, or administrators), representative
employee organizations, and students; and include
other entities.
(9) The term ‘‘Secretary’’ means the Secretary of
Education.
(10) The term ‘‘sequential course of study’’
means an integrated series of courses which are di-
rectly related to the educational and occupational
skills preparation of individuals for jobs, or prepara-
tion for postsecondary education.
(11) The term ‘‘single parent’’ means an individ-
ual who—
(A) is unmarried or legally separated from
a spouse; and
(B)(i) has a minor child or children for
whom the parent has either custody or joint cus-
tody; or
(ii) is pregnant.
(12) The term ‘‘special populations’’ includes in-
dividuals with disabilities, economically disadvan-
taged individuals, individuals of limited English pro-
ficiency, and individuals in nontraditional training
and employment.
(13) The term ‘‘tech-prep education program’’
means a program of study which—
(A) combines at least 2 years of secondary
and 2 years of postsecondary education in a
nonduplicative sequence;
(B) integrates academic and vocational in-
struction;
(C) provides technical preparation in at
least 1 field of engineering technology, applied
science, mechanical, industrial, or practical art
or trade, or agriculture, health occupations, or
business;
(D) builds student competence in mathe-
matics, science, communications, and workplace
skills, through applied academics and integrated
instruction in a coherent sequence of courses;
(E) leads to an associate degree or certifi-
cate in a specific career field;
(F) leads to placement in appropriate em-
ployment or further education; and
(G) enables a student to fulfill a career
pathway plan relating to labor market needs.
(14) The term ‘‘vocational education’’ means or-
ganized educational programs offering a sequence of
courses which are directly related to the preparation
of individuals in paid or unpaid employment in cur-
rent 
or 
emerging 
occupations, 
including
nonbaccalaureate certificate and degree programs and
baccalaureate vocational degree programs. Such pro-
grams include competency-based applied learning
which contributes to an individual’s academic knowl-
edge, higher-order reasoning, and problem-solving
skills, work attitudes, general employability skills,
and the occupational-specific skills necessary for eco-
nomic independence as a productive and contributing
member of society. Such term also includes applied
technology education.
(15) The term ‘‘vocational student organiza-
tions’’ means those organizations for individuals en-
rolled in vocational education programs which engage
in activities as an integral part of the instructional
program. Such organizations may have State and na-
tional units which aggregate the work and purposes
of instruction in vocational education at the local
level.
Subtitle A—State Funding
SEC. 211. NATIONAL AND STATE FUNDING.
(a) NATIONAL PROGRAMS.—In each fiscal year, of the
amounts made available under section 4, the Secretary shall
reserve 20 percent or $25,000,000, whichever is less, to carry
out the provisions of subtitle D.
(b) STATE ALLOTMENT.—
(1) IN GENERAL.—Of the funds remaining after
the reservation under subsection (a), the Secretary
shall allot to each State for each fiscal year an
amount based on that State’s allotment percentage.
(2) ALLOTMENT
PERCENTAGE.—(A) Except as
provided in subparagraph (B), the allotment percent-
age of a State for a fiscal year shall be the same per-
centage of funds allotted to the State under this sec-
tion in the preceding fiscal year.
(B) The allotment percentage of a State for fiscal
year 1996 shall be the percentage of funds allotted to
the State in fiscal year 1995 under—
(i) section 101 or 101A of the Carl D. Per-
kins Vocational and Applied Technology Edu-
cation Act as such Act was in effect on the day
before the date of the enactment of this Act; and
(ii) the funding allotted in fiscal year 1995
under section 252 and 262 of the Job Training
Partnership Act as such Act was in effect on the
day before the date of the enactment of this Act.
(3) STATE
MINIMUM.—Notwithstanding any
other provision of law and subject to paragraph (1),
any fiscal year for which the amounts appropriated
for programs authorized by this title exceed the
amounts available for fiscal year 1985, a State shall
not receive less than one-quarter of one percent of the
amount available for each such program for that fis-
cal year under this subsection. Amounts necessary for
increasing such payments to States to comply with
the preceding sentence shall be obtained by ratably re-
ducing the amounts to be paid to other States.
(4) DEFINITION.—For the purposes of this sub-
section the term ‘‘State’’ means, in addition to the
several States, the District of Columbia, the Common-
wealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, and the Northern Mariana Islands.
(c) FUNDING FOR STATE PROGRAMS.—Of the funds al-
lotted to a State under subsection (b) for each fiscal year,
the Governor, through the collaborative process, shall—
(1) make available not less than 90 percent to
local providers;
(2) make available not more than 8 percent for
State programs described in section 222; and
(3) make available not more than 2 percent for
administrative purposes.
SEC. 212. WITHIN STATE ALLOCATION.
(a) IN GENERAL.—From the amounts made available
pursuant to section 211(c)(1), the Governor, through the col-
laborative process, shall—
(1) allocate to eligible institutions an amount
equal to not less than 40 percent of such amount for
in-school youth programs described in section 241;
(2) allocate to local workforce development
boards an amount equal to not less than 40 percent
of such amount for at-risk youth programs described
in section 245;
(3) provide an amount equal to 10 percent of the
remainder to eligible institutions or local workforce
development boards; and
(4) allocate the remainder of any amounts under
this subsection to carry out the purposes of paragraph
(1) or (2).
(b) WITHIN STATE FORMULA.—
(1) ESTABLISHMENT.—The Governor, through
the collaborative process, and after consultation with
local chief elected officials in the local workforce devel-
opment area and, where appropriate, local educators
in such area, shall develop a formula for the alloca-
tion of funds in accordance with paragraphs (1), (2),
and (4) of subsection (a). Such formula shall take
into account—
(A) poverty rates within each local commu-
nity, as determined by the State;
(B) the proportion of the State’s youth pop-
ulation residing within each local community;
and
(C) such other factors as considered appro-
priate.
(2) ADDITIONAL FACTORS.—In establishing such
formula, the Governor shall ensure that funds are dis-
tributed equitably throughout the State, and that the
factors described in paragraph (1) do not receive dis-
proportionate weighting.
(c) MINIMUM GRANT AMOUNTS.—
(1) LOCAL
EDUCATIONAL
AGENCIES.—A local
educational agency or consortium of such agencies
that receives a subgrant from a State under this sub-
title for any fiscal year shall receive not less than
$15,000.
(2) POSTSECONDARY
INSTITUTIONS.—A post-
secondary institution or consortium of such institu-
tions that receives a subgrant from a State under this
subtitle for any fiscal year shall receive not less than
$50,000.
(3) LOCAL DEVELOPMENT BOARD.—A local devel-
opment board that receives a subgrant from a State
under this subtitle for any fiscal year shall receive not
less than $15,000.
(4) SECONDARY-POSTSECONDARY
CONSORTIA.—
One or more local educational agencies and one or
more eligible institutions may enter into a consor-
tium agreement. A consortium formed pursuant to
this paragraph that receives a subgrant from a State
under this subtitle shall receive not less than $50,000
in any fiscal year.
(d) FUNDS TO CONSORTIUM.—Funds allocated to a
consortium formed to meet the minimum grant require-
ments of this section shall be used only for purposes and
activities that are mutually beneficial to all members of the
consortium. Such funds may not be reallocated to individ-
ual members of the consortium for purposes or activities
benefiting only one member of the consortium.
(e) WAIVER.—The State may waive the application of
subsection (c) in any case in which a grant recipient—
(1) is located in a rural, sparsely-populated
area; and
(2) demonstrates an inability to enter into a
consortium for purposes of providing services under
this title.
Subtitle B—State Organizational,
Planning, and Reporting Re-
sponsibilities
SEC. 221. STATE PLAN.
In addition to the requirements described in title I,
a State that desires to receive funds for any fiscal year
under this title shall, as part of the State Workforce Devel-
opment and Literacy Plan under title I, submit to the Sec-
retary of Education information that includes—
(1) a description of how the State will adopt, de-
velop, or assist local providers to adopt or develop
model curricula and innovative instructional meth-
odologies, to be used in the postsecondary, secondary,
and where possible, the elementary grades, and in
programs for at-risk youth that integrate academic,
vocational, and work-based learning, stressing applied
and contextual learning, and promote career aware-
ness;
(2) a description of how the State will expand
and improve career exploration and guidance counsel-
ing for students in the elementary and secondary
grades, which may include linkages to career explo-
ration, guidance counseling and labor market infor-
mation services outside of the school system and shall
describe how the State will effectively demonstrate the
system of career preparation for youth, which in-
cludes elements such as professional development, and
secondary-postsecondary collaborations;
(3) a description of the strategy of the State for
integrating academic, vocational, and work-based
learning, including a description of how the State
will promote collaboration between secondary and
postsecondary occupational and academic programs
and institutions;
(4) a description of the State’s plan to develop
the academic and occupational skills of students and
100
provide the attainment of challenging vocational-tech-
nical education standards, including industry-ap-
proved skill standards and workplace competencies,
and a description of how the State will develop a
State process for issuing skill certificates that, to the
extent feasible, are consistent with the skill standards
certification systems endorsed by the National Skill
Standards Board;
(5) a description of how the State will promote
the active involvement of business (including small-
and medium-sized businesses) in the planning, devel-
opment, and implementation of youth development
and career preparation programs authorized under
this title; and
(6) a description of how the State will coordinate
the Goals 2000: Educate America Act, and Improving
America’s Schools Act of 1994, and other State edu-
cation improvement plans.
SEC. 222. STATE PROGRAMS AND STATE ACTIVITIES.
(a) GENERAL
AUTHORITY.—From amounts made
available to a State under section 211, each State shall con-
duct State programs and activities.
(b) REQUIRED USES OF FUNDS.—The programs and
activities described in subsection (a) shall include an assess-
101
ment of programs conducted with assistance under this
title, including the development of—
(1) performance standards and measures for
such programs; and
(2) program improvement and accountability
with respect to such programs.
(c) ADDITIONAL USES OF FUNDS.—The programs and
activities described in subsection (a) may include—
(1) the support for tech-prep education;
(2) support for workforce preparation programs
for single parents, displaced homemakers, and single
pregnant women;
(3) support for corrections vocational education;
(4) professional development activities for voca-
tional teachers, academic teachers, school administra-
tors, counselors, workplace mentors, and local provid-
ers regarding integration of vocational, academic, and
work-based curricula, including—
(A) inservice and preservice training of
teachers and faculty in state-of-the-art programs
and techniques and nontraditional training and
employment; and
(B) support of public teacher-education pro-
grams to ensure vocational teachers stay current
102
with the needs, expectations, and methods of in-
dustry to meet employer standards;
(5) development, dissemination, and field testing
of curricula, especially—
(A) curricula that integrate vocational, aca-
demic, and work-based methodologies;
(B) curricula that provide a coherent se-
quence of courses through which academic and
occupational skills may be measured; and
(C) curricula for work-based learning;
(6) leadership and instructional programs in
technology education;
(7) data collection, including support for man-
agement information systems as defined in section
109;
(8) support for 1-stop career centers described in
section 107;
(9) support for cooperative education and family
and consumer science programs;
(10) creative use of technologies, including pro-
fessional development in the use of such technologies
for instructional purposes and to increase counselor’s
and students’ knowledge of, and use of, additional in-
formation resources to make career pathways and
coursework decisions;
103
(11) support for vocational student organiza-
tions; and
(12) improving career guidance and counseling.
SEC. 223. INCENTIVE AWARDS.
The State, may, from the amount made available
under section 211(c)(2) for any fiscal year make perform-
ance awards to 1 or more eligible institutions or local pro-
viders that have—
(1) exceeded in the performance goals described
in section 224;
(2) implemented exemplary youth development
and career preparation programs at the local level in
accordance with the purposes described in section 201;
or
(3) provided exemplary education services and
activities for at-risk youth.
SEC. 224. CORE STANDARDS, PERFORMANCE GOALS, AND
MEASURES.
(a) GENERAL AUTHORITY.—
(1) STANDARDS AND MEASURES.—In addition to
the State’s goals described in section 104, each State
receiving funds under this title shall have developed
or shall develop and implement a statewide system of
core standards and measures of performance for youth
104
development and career preparation programs in co-
ordination with other titles of this Act.
(2) STATEWIDE
SYSTEM.—Each statewide sys-
tem, in accordance with the provisions of section 104,
shall—
(A) establish or have established perform-
ance goals to define the level of performance to
be achieved by youth served under this title and
to evaluate the quality and effectiveness of serv-
ices and activities under this title;
(B) express such goals in an objective, quan-
tifiable, and measurable form;
(C) establish progress indicators that the
State and local recipients will use in measuring
or assessing progress toward achieving such
goals; and
(D) provide biennial reports to the public
and to the Secretary on the State’s progress in
achieving its goals.
(b) REQUIREMENTS.—Each system developed under
subsection (a) shall include—
(1) measures of academic and occupational com-
petency gains, including progress in the achievement
of the following:
105
(A) Academic and occupational competency
attainment which includes—
(i) attainment of challenging State
academic standards;
(ii) attainment of challenging voca-
tional-technical education standards; and
(iii) attainment of industry-recognized
occupational standards, including basic
workplace competencies and industry-recog-
nized skill standards (endorsed by the Na-
tional Skill Standards Board), which may
include the receipt of a skill certificate in
the occupation for which the student has
been prepared;
(B) retention in school or completion of sec-
ondary school or the equivalent;
(C) placement into additional training or
postsecondary education, military service, reg-
istered apprenticeship, or employment; and
(D) employment retention and earnings lev-
els;
(2) reduction of the drop-out rate; and
(3) success of special populations in meeting
these performance standards, including nontradi-
tional training and employment.
106
(c) PERFORMANCE GOALS AND MEASURES.—The Gov-
ernor shall, acting through the collaborative process, work
to ensure that the performance goals are consistent with
challenging State academic standards, industry-recognized
skill standards once established by the National Skill
Standards Board and the State goals established under this
title.
Subtitle C—Subgrants for In-School
and At-Risk Youth
SEC. 231. PARTNERSHIP AGREEMENTS.
(a) PARTNERSHIP.—A local workforce development
board and an eligible institution that desires to receive a
subgrant from a State under this subtitle in any fiscal year
shall form a partnership for the purposes of collaborative
planning, coordination of in-school and at-risk programs,
and effective public participation.
(b) PLAN.—The partnership referred to in subsection
(a) shall, in collaboration, develop and submit for approval
to the Governor through the State collaborative process a
comprehensive youth development and career preparation
plan for in-school and at-risk youth. Such plan shall de-
scribe how the youth development and career preparation
system meets the requirements of sections 241 and 245 and
shall address comments received through the collaborative
process. The partnership shall assure the involvement of
107
parents, teachers, and the community in the collaborative
planning process which involves design of the standards,
strategies, articulation, and cooperative agreements, assess-
ments, and evaluation of program activities.
SEC. 232. DISTRIBUTION OF FUNDS.
(a) IN-SCHOOL PROGRAMS.—Based upon an applica-
tion submitted by the partnership to the Governor through
the State collaborative process, a State shall distribute
funds made available in a fiscal year as provided in section
212(a)(1) to eligible institutions to carry out in-school
youth programs described in section 241.
(b) AT-RISK YOUTH PROGRAMS.—A State shall dis-
tribute funds made available in any fiscal year as provided
in section 212(a)(2) to local workforce development boards
to carry out at-risk youth programs described in section
245.
CHAPTER 1—IN-SCHOOL YOUTH
SEC. 241. USES OF FUNDS FOR IN-SCHOOL YOUTH.
(a) GENERAL AUTHORITY.—Each eligible institution
that receives a subgrant under this chapter shall use funds
provided under such grant to improve youth development
and career preparation programs.
(b) REQUIREMENTS FOR USES OF FUNDS.—Funds
provided by a State pursuant to section 212(a)(1) shall be
108
used to provide in-school youth development and career
preparation programs that—
(1) are of such size, scope, and quality as to be
effective;
(2) integrate academic, vocational, and work-
based learning, stressing applied and contextual
learning, through a coherent sequence of courses so
that youth achieve both academic and occupational
competencies;
(3) involve employers in the design and imple-
mentation of programs, including the development of
curriculum;
(4) establish effective linkages between at-risk
youth programs, secondary and postsecondary edu-
cation;
(5) provide work-based learning experiences with
adult mentoring where appropriate; and, to the extent
possible, with strong experiences and understanding
of all aspects of an industry appropriately tied to the
student’s career major; and
(6) provide career exploration, including explo-
ration in the practical arts or trade, career awareness
and career guidance opportunities, beginning in the
earliest grades possible.
109
(c) ADDITIONAL USES OF FUNDS.—In carrying out
the provisions of subsection (b), funds may be used by
schools for in-school youth activities such as—
(1) purchasing, leasing, or upgrading of equip-
ment, including instructional aides and material;
(2) inservice training of vocational instructors,
academic instructors, employers, and workplace men-
tors, to integrate academic and vocational education,
and provide high-quality work-based learning experi-
ences;
(3) tech-prep education programs;
(4) supplementary services designed to meet the
needs of special populations;
(5) adaptation of equipment;
(6) apprenticeship programs;
(7) comprehensive mentoring programs in insti-
tutions of higher education offering comprehensive
programs in teacher preparation which seek to fully
use the skills and work experience of individuals cur-
rently or formerly employed in business and industry
who are interested in becoming classroom instructors
and to meet the need of vocational educators who wish
to upgrade their teaching competencies;
110
(8) local education and business partnerships for
developing and implementing workforce preparation
systems;
(9) support for vocational student organizations;
and
(10) establishing effective activities and proce-
dures to enable program participants and their par-
ents to participate directly in decisions that influence
the character of programs, including providing infor-
mation and assistance needed for informed and effec-
tive participation.
CHAPTER 2—AT-RISK YOUTH
SEC. 245. USES OF FUNDS FOR AT-RISK YOUTH.
(a) GENERAL AUTHORITY.—Each local workforce de-
velopment board that receives a subgrant under this chapter
shall use funds provided under such grant to improve youth
development and career preparation programs.
(b) REQUIREMENTS FOR USES OF FUNDS.—Funds
provided by a State pursuant to section 212(a)(2) shall be
used to provide youth development and career preparation
programs for at-risk youth that—
(1) are of such size, scope, and quality as to be
effective;
(2) integrate academic, vocational, and work-
based learning, stressing applied and contextual
111
learning, through a coherent sequence of courses so
that students and at-risk youth achieve both academic
and occupational competencies;
(3) involve employers in the design and imple-
mentation of programs, including the development of
curriculum;
(4) establish effective linkages between at-risk
youth programs, and secondary and postsecondary
education;
(5) provide work-based learning experiences, in-
cluding experiences in the practical arts or trade, if
applicable;
(6) provide adult mentoring as a core component
of the program;
(7) provide an objective assessment of the aca-
demic and skill levels, and service needs of each par-
ticipant; and
(8) provide career exploration and counseling.
(c) ADDITIONAL USES OF FUNDS.—In carrying out
the provisions of subsection (b), providers of at-risk youth
programs, as selected by the local workforce development
board, may provide activities such as—
(1) tutoring, study skills training and instruc-
tion leading to completion of high school;
(2) alternative high school services;
112
(3) training or education that is combined with
community service, and service learning opportuni-
ties;
(4) paid work experience, including limited in-
ternships, entry-employment experience programs,
and summer employment opportunities that are inte-
grated with the year-round school-based or alternative
school-based program;
(5) drop-out prevention strategies and strategies
to encourage at-risk youth to reenter high school or al-
ternative high school programs and programs that en-
courage pregnant and parenting youth to stay in
school;
(6) preemployment and work maturity skills
training;
(7) peer-centered activities encouraging respon-
sibility and other positive social behaviors during
non-school hours; and
(8) training-related supportive services.
(d) LIMITATIONS ON USE OF FUNDS.—Not more than
10 percent of the funds provided under this chapter to a
local workforce development board may be used for adminis-
trative purposes.
113
SEC. 246. AT-RISK YOUTH PROVIDERS.
(a) ROLE OF WORKFORCE DEVELOPMENT BOARD.—
A workforce development board that receives funds under
this chapter shall not operate programs, but shall contract
with eligible providers of demonstrated effectiveness, or with
eligible providers utilizing service methodologies with dem-
onstrated effectiveness in serving the workforce preparation
needs of at-risk youth, for the purpose of providing services
under this chapter.
(b) ELIGIBLE PROVIDERS.—For purposes of this chap-
ter, eligible providers may include—
(1) an ‘‘eligible institution’’ as defined under
section 202(7);
(2) a unit of local government;
(3) a private, nonprofit organization (including
community-based organizations);
(4) a private, for profit entity;
(5) a designated 1-stop career center; or
(6) other organizations or entities of dem-
onstrated effectiveness and approved by the local
Board.
Subtitle D—National Programs
SEC. 251. RESEARCH ACTIVITIES.
(a) GENERAL AUTHORITY.—
(1) IN GENERAL.—In order to carry out the pur-
pose of this title, the Secretary may, directly or
114
through grants, contracts, or cooperative agreements,
carry out research, development, dissemination, rep-
lication of model programs, demonstration programs,
evaluation, capacity-building, and technical assist-
ance activities with regard to the services and activi-
ties carried out under this title.
(2) INFORMATION SYSTEMS.—Activities carried
out under this section may include support for occu-
pational and career information systems.
(b) DISSEMINATION.—The Secretary shall establish a
system for disseminating information resulting from re-
search and development activities carried out under this
title.
SEC. 252. ASSESSMENT AND DATA COLLECTION OF YOUTH
DEVELOPMENT AND CAREER PREPARATION
PROGRAMS.
(a) IN GENERAL.—The Secretary, through the Office
of Educational Research and Improvement, shall conduct
a biennial assessment of services and activities assisted
under this title, through studies and analyses conducted
independently through competitive awards.
(b) CONTENTS.—The assessment required under sub-
section (a) shall examine the extent to which services and
activities assisted under this title have achieved their in-
115
tended purposes and results, including the extent to
which—
(1) State and local services and activities have
developed, implemented, or improved systems estab-
lished under this title;
(2) services and activities assisted under this
title succeed in preparing students, including students
who are members of special populations, for post-
secondary education, further learning, or entry into
high-skill, high-wage careers;
(3) students who participate in services and ac-
tivities supported under this title succeed in meeting
challenging State academic and industry-based skill
standards; and
(4) the system improvement, participation, local
and State assessment, and accountability provisions
of this title, including the performance goals and in-
dicators established under section 224, are effective.
SEC. 253. NATIONAL CENTER OR CENTERS FOR RESEARCH.
(a) GENERAL AUTHORITY.—
(1) NATIONAL
CENTER.—The Secretary may,
through a grant or contract, establish one or more na-
tional centers for conducting applied research, devel-
opment, dissemination, and technical assistance ac-
tivities which would focus on improving the career
116
preparation of individuals. The Secretary shall con-
sult with States prior to establishing one or more
such centers.
(2) ELIGIBILITY.—Entities eligible to receive
funds under this section are institutions of higher
education, other public or private nonprofit organiza-
tions or agencies, and consortia of such institutions,
organizations, or agencies.
(3) PREVIOUS CENTER.—The national center in
existence on the day before the date of the enactment
of the this Act shall continue to receive assistance
under this section in accordance with the terms of its
current award.
(b) ACTIVITIES.—
(1) IN GENERAL.—The applied research, develop-
ment, dissemination, and technical assistance activi-
ties carried out by the national center or centers shall
include—
(A) activities that assist recipients of funds
under this title to meet the requirements of sec-
tion 224;
(B) research and development of activities
that combine academic, vocational education,
and work-based learning;
117
(C) developing new models for remediation
of basic academic skills which incorporate appro-
priate instructional methods;
(D) identifying ways to establish links
among educational and job training activities at
the State and local levels;
(E) new models for career guidance, career
information, and counseling services;
(F) studies providing longitudinal informa-
tion or formative evaluation on programs funded
under this title, including an analysis of the ef-
fectiveness of youth development and career prep-
aration programs in serving at-risk youth; and
(G) such other activities as the Secretary
determines to be appropriate to achieve the pur-
pose of this Act.
(2) DUTIES.—The center or centers shall—
(A) provide assistance to States and local
recipients in developing and using systems of
performance measures and standards for im-
provement of programs and services; and
(B) provide technical assistance and out-
reach.
(3) SUMMARY.—The center or centers conducting
the activities described in paragraph (1) shall annu-
118
ally prepare a summary of key research findings of
such center or centers and shall submit copies of the
summary to the Secretaries of Education and Labor.
The Secretary shall submit that summary to the Com-
mittee on Labor and Human Resources of the Senate,
and the Committee on Economic and Educational
Opportunities of the House of Representatives.
(c) CLEARINGHOUSE.—The center or centers shall
maintain a clearinghouse that will provide data and infor-
mation to Federal, State, and local organizations and agen-
cies about the condition of systems and programs funded
under this title.
TITLE III—ADULT EMPLOYMENT
AND TRAINING CONSOLIDA-
TION GRANT
Subtitle A—Adult Employment and
Training Consolidation Grant
SEC. 301. PURPOSE.
The purpose of this title is to establish an efficient,
high-quality, and equitable system of employment, job
training, and related assistance designed to facilitate the
transition of adults into productive, high skills, private sec-
tor employment.
119
SEC. 302. AUTHORIZATION.
(a) IN GENERAL.—In the case of each State that in
accordance with the requirements of section 102 submits to
the Secretary of Labor (hereinafter in this title referred to
as the ‘‘Secretary’’) a State workforce development and lit-
eracy plan under section 104, the Secretary shall provide
a grant to the State for the purpose of providing employ-
ment, job training, and related assistance for adults in the
State.
(b) AMOUNT.—The grant shall consist of the allotment
determined for the State under section 303.
SEC. 303. ALLOTMENT AMONG STATES.
(a) IN GENERAL.—Of the amount appropriated pursu-
ant to section 4(a)(2) to carry out this title for a fiscal
year, the Secretary shall—
(1) allot 85 percent of such amounts in accord-
ance with subsection (b); and
(2) reserve 15 percent for use under subtitle B.
(b) ALLOTMENT AMONG STATES.—
(1) RESERVATION FOR THE TERRITORIES.—Of
the amount allotted under subsection (a)(1), the Sec-
retary shall allot not more than one quarter of one
percent among the Commonwealth of the Northern
Mariana Islands, American Samoa, Guam, and the
Virgin Islands.
120
(2) STATES.—After determining the amount to
be allotted under paragraph (1), the Secretary shall
allot the remaining amount to the remaining States
so that each State receives an amount that bears the
same proportion to such remaining amount as—
(A) the amount allotted to each such State
from allotments under sections 202 and 302 of
the Job Training Partnership Act (29 U.S.C.
1602 and 1652) (as in effect before the date of
the enactment of this Act) for fiscal year 1995;
bears to
(B) the aggregate of the amounts allotted to
all such States from allotments under such sec-
tions for such fiscal year.
Notwithstanding any other provision of law and sub-
ject to paragraph (1), in any fiscal year for which the
amounts appropriated for programs authorized by
title III exceed the amounts so available for fiscal
year 1985, no State shall receive less than one-quarter
of one percent of the amount available for each such
program for that fiscal year under this subsection.
Amounts necessary for increasing such payments to
States to comply with the preceding sentence shall be
obtained by ratably reducing the amounts to be paid
to other States.
121
SEC. 304. ALLOCATION WITHIN STATES.
(a) RESERVATIONS FOR STATE ACTIVITIES.—
(1) IN
GENERAL.—The Governor of the State
shall reserve not more than 20 percent of the amount
allotted to the State under section 303(b) for a fiscal
year for statewide activities for employment, job
training, and related assistance for adults.
(2) MANDATORY
ACTIVITIES.—Such activities
shall include—
(A) rapid response activities; and
(B) additional assistance to areas that expe-
rience disasters, mass layoffs or plant closings,
or other events which precipitate substantial in-
creases in the number of unemployed workers, to
be expended in accordance with the local plan of
the relevant workforce development area.
(3) DISCRETIONARY ACTIVITIES.—
(A) IN GENERAL.—Such activities may in-
clude—
(i) subject to subparagraph (B), ad-
ministration by the State of programs
under this subtitle;
(ii) capacity building and technical
assistance to local workforce development
areas, one-stop career centers, and service
providers, including the development and
122
training of staff and the development of ex-
emplary program activities;
(iii) incentives for program coordina-
tion, performance awards, and research and
demonstrations;
(iv) implementation of innovative in-
cumbent worker training programs, which
may include the establishment and imple-
mentation of an employer loan program to
assist in skills upgrading for non-manage-
rial employees (in accordance with the re-
quirements of section 314);
(v) implementation of experimentation
model activities, pilot projects, and dem-
onstration projects which further the goals
and purposes of this Act;
(vi) additional assistance for the devel-
opment and implementation of the one-stop
delivery system of the State established in
accordance with title I of this Act; and
(vii) support for a common manage-
ment information system as described in
section 109.
(B) LIMITATION.—Not more than 1⁄4 of the
amount reserved by the Governor under para-
123
graph (1) may be used for administration by the
State of programs under this subtitle.
(b) WITHIN STATE ALLOCATION.—
(1) IN GENERAL.—The Governor of the State,
based upon an allocation formula established in ac-
cordance with paragraph (2), shall allocate the re-
mainder of the amount allotted to the State under sec-
tion 303(b) to workforce development areas designated
under title I of this Act for the purpose of providing
employment, job training, and related assistance for
adults in accordance with section 306.
(2) WITHIN STATE FORMULA.—
(A) 
ESTABLISHMENT.—The 
Governor,
through the collaborative process, and after con-
sultation with local chief elected officials in the
local workforce development area, shall develop a
formula for the allocation of funds to workforce
development areas. Such formula shall take into
account—
(i) poverty rates within each local
workforce development area, as determined
by the State;
(ii) unemployment rates within each
local workforce development area;
124
(iii) the proportion of the State’s adult
population 
residing 
within 
each 
local
workforce development area; and
(iv) such other factors as considered
appropriate.
(B) ADDITIONAL FACTORS.—In establishing
such formula, the Governor shall ensure that
funds are distributed equitably throughout the
State, and that the factors described in subpara-
graph (A) do not receive disproportionate
weighting.
(3) EXCEPTION.—Notwithstanding the provisions
of paragraphs (1) and (2), the Governor shall provide
10 percent of the remainder described in paragraph
(1) to local workforce areas designated under title I
of this Act.
SEC. 305. ADDITIONAL STATE PLAN REQUIREMENTS.
The State shall, as part of the State workforce develop-
ment and literacy plan under title I of this Act, submit
to the Secretary the following additional information:
(1) A description of how the State will serve the
employment and training needs of dislocated workers,
economically disadvantaged individuals, older work-
ers, individuals with disabilities, displaced home-
makers, veterans, and individuals with multiple bar-
125
riers to employment (as determined by the State), in-
cluding individuals who are basic skills deficient.
(2) A description of how the State will provide
rapid response assistance to workers experiencing dis-
location as a result of mass layoffs and plant closings,
either through the direct provision of services or
through the transfer of funds to local workforce devel-
opment areas for the provision of such services.
SEC. 306. USE OF AMOUNTS.
(a) CORE SERVICES.—Amounts allocated under sec-
tion 304(b) shall be used to provide core services to adults
through one-stop career centers in accordance with title I
of this Act.
(b) INTENSIVE SERVICES.—
(1) IN GENERAL.—Amounts allocated under sec-
tion 304(b) shall be used to provide intensive services
to adults—
(A) who are unable to obtain employment
through core services under subsection (a); and
(B) who have been determined to be in need
of more intensive services in order to gain em-
ployment.
(2) DELIVERY
OF
SERVICES.—Such intensive
services shall be provided—
126
(A) directly through one-stop career centers
in accordance with title I of this Act; or
(B) through contracts through such centers
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
(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 adult to
achieve the employment goal.
(C) Group counseling.
(D) Individual counseling and career plan-
ning.
127
(E) Case management for adults receiving
education and training services under subsection
(c) or supportive services under subsection (d).
(F) Follow-up counseling for adults placed
in training or employment, for up to 1 year.
(c) EDUCATION AND TRAINING SERVICES.—
(1) IN GENERAL.—Amounts allocated under sec-
tion 304(b) shall be used to provide education and
training services to adults—
(A) who are unable to obtain employment
through core services under subsection (a);
(B) who are in need of education and train-
ing services in order to gain employment as a re-
sult of determinations made through—
(i) preliminary assessments under sec-
tion 107(f)(1)(B) of this Act; or
(ii) comprehensive and specialized as-
sessments under subsection (b)(3)(A); and
(C) who are unable to obtain other grant
assistance for such services, such as through Pell
Grants established under title IV of the Higher
Education Act.
(2) DELIVERY
OF
SERVICES.—Such education
and training services shall be provided through edu-
128
cation and training providers certified in accordance
with title I of this Act.
(3) TYPES OF SERVICES.—Such education and
training services may include the following:
(A) Basic skills training, including reme-
dial education, literacy training, and English
literacy program instruction.
(B) Occupational skills training, including
training for nontraditional employment.
(C) On-the-job training.
(D) Programs that combine workplace
training with related instruction.
(E) Training programs operated by the pri-
vate 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.
(4) ADDITIONAL REQUIREMENTS.—
(A) USE OF SKILL GRANTS.—
129
(i) IN GENERAL.—Except as provided
in clause (ii), education and training serv-
ices under this section shall be provided
through the use of skill grants in accordance
with this subsection, and in accordance
with section 108 regarding the certification
of education and training providers.
(ii) 
EXCEPTIONS.—Education 
and
training services authorized under this title
may be provided pursuant to a contract for
services in lieu of a skill grant if—
(I) such services are on-the-job
training provided by an employer;
(II) the local workforce develop-
ment board determines there are an in-
sufficient number of certified providers
of education and training services in
the workforce development area to ac-
complish the purposes of a skill grant
system;
(III) the local workforce develop-
ment board determines that the cer-
tified providers of education and train-
ing in the workforce development area
130
are unable to provide effective services
to special 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 serving special
populations.
(B) LINKAGE
TO
OCCUPATIONS
IN
DE-
MAND.—Education and training services under
this subsection shall be directly linked to occupa-
tions for which there is a demand in the local
workforce development area, or in another area
to which an adult receiving such services is will-
ing to relocate.
(d) ADDITIONAL SERVICES.—
(1) SUPPORTIVE SERVICES.—Supportive services
may be provided for individuals—
(A) who are receiving assistance under any
of subsections (a) through (c); and
(B) who are unable to receive such services
through other programs providing such services.
(2) NEEDS-RELATED PAYMENTS.—
(A) IN GENERAL.—Amounts allocated under
section 304(b) may be used to provide needs-re-
lated payments to adults who are unemployed
131
and do not qualify for (or have ceased to qualify
for) unemployment compensation for the purpose
of enabling such adults to participate in edu-
cation and training programs under subsection
(c).
(B) ADDITIONAL
ELIGIBILITY
REQUIRE-
MENTS.—In addition to the requirements con-
tained in subparagraph (A), a dislocated worker
who has exhausted unemployment insurance ben-
efits shall be eligible to receive needs-related pay-
ments under this paragraph only if such worker
was enrolled in education or training by the end
of the 8th week of the worker’s initial unemploy-
ment compensation benefit period, or, if later, by
the end of the 8th week after the worker is in-
formed that a short-term layoff will in fact ex-
ceed 6 months.
(e) PRIORITY.—Local workforce development boards
shall establish a process through which priority is given to
dislocated workers and economically disadvantaged indi-
viduals, for receipt of services provided under subsections
(b) and (c), in the event that funds are limited within the
workforce development area.
(f) PROHIBITION ON PRIVATE RIGHT OF ACTION.—
Nothing in this section shall be construed to establish a
132
right for a participant to bring an action to obtain services
under a program established under this section.
(g) LIMITATIONS ON USE OF FUNDS.—Not more than
10 percent of the funds provided under this title to a local
workforce development board may be used for administra-
tive purposes.
SEC. 307. CORE STANDARDS, PERFORMANCE GOALS, AND
MEASURES.
(a) GENERAL AUTHORITY.—
(1) STANDARDS AND MEASURES.—Each State re-
ceiving a grant under this title shall have developed
or shall develop and implement a statewide system of
core standards and measures of performance for pro-
grams established under this title, based upon per-
formance standards described in paragraph (2), and
consistent with the State’s goals and objectives, and
benchmarking process described in the State plan re-
quired under section 104.
(2) STATEWIDE SYSTEM.—Each statewide system
shall—
(A) establish or have established perform-
ance goals to define the level of performance to
be achieved by adults served under this title and
to evaluate the quality and effectiveness of serv-
ices and activities under this title;
133
(B) express such goals in an objective, quan-
tifiable, and measurable form;
(C) establish performance indicators or
benchmarks that the State and local recipients of
funds will use in measuring or assessing progress
toward achieving such goals; and
(D) provide biennial reports to the public
and to the Secretary on the State’s progress in
achieving its goals.
(b) REQUIREMENTS.—Each system developed under
subsection (a) shall include measures of—
(1) placement, retention, and earnings of par-
ticipants in unsubsidized employment, including re-
tention and earnings at 6 months, and at one year
after program termination, respectively;
(2) the provision of services to dislocated work-
ers, economically disadvantaged individuals, older
workers, individuals with disabilities, displaced home-
makers, veterans, and individuals with multiple bar-
riers to employment (as determined by the State), in-
cluding individuals who are basic skills deficient; and
(3) acquisition of skills certificates pursuant to
a skill standards and skill certification system en-
dorsed by the National Skill Standards Board, once
such system is established.
134
Subtitle B—Federal Programs
SEC. 311. NATIONAL DISCRETIONARY GRANTS.
(a) GRANTS FOR DISLOCATED WORKERS.—
(1) IN GENERAL.—From amounts reserved under
section 303(a)(2) for any fiscal year, the Secretary is
authorized to award national discretionary grants to
address major economic dislocations that result from
plant closures, base closures, or mass layoffs.
(2) APPLICATION.—To receive a grant under this
section, an eligible entity shall submit an application
to the Secretary at such time, in such manner, and
accompanied by such information as the Secretary
determines is appropriate.
(3) ELIGIBLE ENTITIES.—Grants under this sec-
tion may be awarded to—
(A) the State;
(B) a local workforce development board ad-
ministering assistance under this Act;
(C) employers and employer associations;
(D) worker-management transition assist-
ance committees and other employer-employee
entities;
(E) representatives of employees;
(F) community development corporations
and community-based organizations; and
135
(G) industry consortia.
(b) INCENTIVE
GRANTS.—From amounts reserved
under section 303(a)(2) for any fiscal year, the Secretary
may provide awards to States—
(1) to assist in the implementation of exemplary
statewide workforce development system designs; and
(2) for the achievement of exceptional perform-
ance in the statewide workforce development system.
SEC. 312. DISASTER RELIEF EMPLOYMENT ASSISTANCE.
(a) IN GENERAL.—From amounts reserved under sec-
tion 303(a)(2) for any fiscal year, the Secretary may pro-
vide assistance to the Governor of any State within which
is located an area that has suffered an emergency or a
major disaster as defined in paragraphs (1) and (2), respec-
tively, of section 102 of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (referred to in this sec-
tion as the ‘‘disaster area’’).
(b) USE OF FUNDS.—
(1) 
PROJECTS
RESTRICTED
TO
DISASTER
AREAS.—Funds made available under this section—
(A) shall be used exclusively to provide em-
ployment on projects to provide food, clothing,
shelter, and other humanitarian assistance for
disaster victims and on projects regarding demo-
lition, cleanup, repair, renovation, and recon-
136
struction of damaged and destroyed structures,
facilities, and lands located within the disaster
area; and
(B) may be expended through public and
private agencies and organizations engaged in
such projects.
(2) ELIGIBILITY
REQUIREMENTS.—An individ-
ual shall be eligible to be offered disaster 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. 313. RESEARCH, DEMONSTRATION, EVALUATION, AND
CAPACITY BUILDING.
(a) IN GENERAL.—From amounts reserved under sec-
tion 303(a)(2) for any fiscal year, the Secretary shall estab-
lish and carry out research, demonstration, and capacity
building activities in accordance with this section.
(b) ACTIVITIES.—The Secretary shall carry out the fol-
lowing activities under this section:
(1) RESEARCH.—The Secretary shall conduct
continuing research, which may include studies and
137
other methods and techniques, that will aid in the so-
lution of the employment and training problems of
the United States. Such studies may include the ex-
tent to which individuals who participate in pro-
grams established under this title achieve self-suffi-
ciency as a result of such participation, including the
identification by State and locality, to the extent
practicable, of indicators measuring such self-suffi-
ciency.
(2) DEMONSTRATIONS.—The Secretary shall con-
duct pilot and demonstration projects for the purpose
of developing and improving methods and techniques
for addressing employment and training needs which
may include projects conducted jointly with the De-
partment of Defense to develop training programs uti-
lizing computer-based and other innovative learning
technologies. The Secretary may award grants and
enter into contracts with appropriate entities to carry
out such projects.
(3) EVALUATION.—
(A) ACTIVITIES.—
(i) JOB
TRAINING
ACTIVITIES.—The
Secretary shall provide for the continuing
evaluation of activities conducted under this
Act, including the cost-effectiveness of such
138
activities in achieving the purposes of this
Act.
(ii) 
OTHER
PROGRAMS.—The 
Sec-
retary may conduct evaluations of other fed-
erally funded employment-related activities
including programs administered under—
(I) the Wagner-Peyser Act (29
U.S.C. 49 et seq.);
(II) the National Apprenticeship
Act (29 U.S.C. 50 et seq.);
(III) the Older Americans Act of
1965 (42 U.S.C. 3001 et seq.); and
(IV) the Federal unemployment
insurance program under titles III, IX,
and XII of the Social Security Act (42
U.S.C. 501 et seq., 1101 et seq., and
1321 et seq.).
(B) EFFECTIVENESS.—The Secretary shall
evaluate the effectiveness of programs authorized
under this Act with respect to—
(i) the statutory goals;
(ii) the performance standards estab-
lished by the Secretary; and
(iii) the extent to which such programs
enhance the employment and earnings of
139
participants, reduce income support costs,
improve the employment competencies of
participants in comparison to comparable
persons who did not participate in such
programs, and to the extent feasible, in-
crease the level of total employment over the
level that would have existed in the absence
of such programs.
(4) 
NATIONAL
PARTNERSHIP
AND
SPECIAL
TRAINING.—The Secretary may award special grants
to eligible entities to carry out activities that are most
appropriately administered at the national level.
Such activities may include—
(A) partnerships with national organiza-
tions with special expertise in developing, orga-
nizing, and administering employment and
training services at the national, State, and local
levels, such as industry and labor associations,
public interests groups, community-based organi-
zations representative of groups that encounter
special difficulties in the labor market, in edu-
cation and training; and
(B) activities that—
(i) address industry-wide skill short-
ages;
140
(ii) meet training needs that are best
addressed on a multistate basis;
(iii) further the goals of increasing the
competitiveness of the United States labor
force; and
(iv) require technical expertise avail-
able at the national level to serve the needs
of particular client groups that encounter
significant barriers to employment and who
the Secretary determines require special as-
sistance; and
(v) promote and experiment with
model activities, pilot projects, and dem-
onstration projects which further the goals
and purposes of this Act.
(5) CAPACITY BUILDING AND TECHNICAL ASSIST-
ANCE.—
(A) IN GENERAL.—The Secretary shall pro-
vide, through grants, contracts, or other arrange-
ments, staff training and technical assistance to
States, local workforce development boards, ca-
reer centers, communities, business and labor or-
ganizations, service providers, industry consor-
tia, and other entities, to enhance their capacity
141
to develop and deliver effective employment and
training services.
(B) ACTIVITIES.—The staff training and
technical assistance authorized under subpara-
graph (A) may include—
(i) development of management infor-
mation systems;
(ii) development and maintenance of a
national capacity building, information
and dissemination network; and
(iii) grants for the replication of suc-
cessful employment and training models
and activities.
SEC. 314. WORKFORCE SKILLS AND DEVELOPMENT LOANS.
(a) AUTHORIZATION.—
(1) IN GENERAL.—From amounts reserved under
section 303(a)(2) for any fiscal year, the Secretary of
Labor may use a portion of such amounts to provide
grants to States to provide loans to eligible entities
described in paragraph (2) to assist such entities in
providing skills upgrading.
(2) ELIGIBLE ENTITIES.—An eligible entity de-
scribed in this paragraph is—
(A) an employer;
(B) a representative of employees;
142
(C) a business association;
(D) a trade organization; or
(E) a consortium consisting of—
(i) more than 1 of the entities described
in subparagraphs (A) through (D); or
(ii) an institution of higher education
(as such term is defined in section 481 of
the Higher Education Act of 1965 (20
U.S.C. 1088) which continues to meet the
eligibility and certification requirements
under section 498 of such Act) and 1 or
more of the entities described in subpara-
graphs (A) through (D).
(b) APPLICATION.—The Secretary may provide a
grant to a State under subsection (a) only if such State
submits to the Secretary an application which contains
such information as the Secretary may reasonably require.
(c) USE OF AMOUNTS.—A State shall use amounts re-
ceived from a grant under subsection (a) to establish a loan
guarantee program to assist eligible entities described in
paragraph (2) of such subsection to provide skills upgrading
for nonmanagerial employees. In carrying out such pro-
gram, the State shall meet the following requirements:
(1) ESTABLISHMENT
OF
RESERVE
FUND
FOR
LOAN GUARANTEES.—The State shall establish a re-
143
serve fund from amounts received from such grant for
the purpose of making commitments to guarantee the
payment of principal and interest on loans made by
financial institutions to such eligible entities to pro-
vide skills upgrading for nonmanagerial employees.
(2) CRITERIA
FOR
LOAN
GUARANTEES.—The
State, in conjunction with appropriate financial in-
stitutions, shall establish and publish criteria for pro-
viding loan guarantees to eligible entities under the
program, including criteria that provides for the fol-
lowing:
(A) A loan guarantee may be issued under
the program only if, at the time such guarantee
is issued the eligible entity agrees to pay as an
insurance premium an amount equal to 1 per-
cent of the principal received by such entity
under the loan to the State’s reserve fund.
(B)(i) Subject to clause (ii), the eligible en-
tity will use amounts received from the loan to
provide skills upgrading for mid- and lower-level
employees, which may include—
(I) training in total quality manage-
ment, statistical process control, production
techniques, office automation, materials re-
source planning; and
144
(II) training to improve basic skills,
including reading, writing, and arithmetic.
(ii) In providing such skills upgrading, the
eligible 
entity 
shall 
give 
priority 
to
nonmanagerial employees who—
(I) directly produce or deliver goods or
services; or
(II) are in danger of being terminated
or laid off as a result of modernization in
the workplace, corporate downsizing, foreign
or domestic competition, or Federal policies
adversely affecting 1 or more industries.
(C) Amounts from a loan shall not be used
to pay the wages or other benefits of any em-
ployee receiving assistance under the program.
(3) PAYMENT BY STATE TO FINANCIAL INSTITU-
TIONS IN CASES OF DEFAULT.—
(A) IN GENERAL.—In accordance with cri-
teria developed by the Secretary, the State shall
make payments from the State’s reserve fund to
financial institutions that have provided loans to
eligible entities that have defaulted on such loans
for the purpose of reimbursing such institutions
for the amount of principal and interest remain-
145
ing unpaid to the institutions by reason of such
default.
(B) NO FULL FAITH AND CREDIT OF THE
UNITED STATES.—Loans provided by financial
institutions to eligible entities under loan guar-
antee programs under this section shall not be
obligations of, or guaranteed in any respect by,
the United States.
(4) INTEREST
FROM
AMOUNTS
IN
RESERVE
FUND.—Any interest earned from amounts in the
State’s reserve fund shall be credited to such fund.
(d) FEDERAL AND STATE SHARE.—
(1) FEDERAL SHARE.—The Federal share under
this section may not exceed 50 percent of the total cost
of the program established under subsection (c) for
any fiscal year.
(2) STATE
SHARE.—The State share shall be
provided from non-Federal sources and may be in
cash or in-kind, fairly evaluated.
SEC. 315. EMPLOYMENT, TRAINING, AND EDUCATION AS-
SISTANCE FOR NATIVE AMERICANS.
(a) AUTHORIZATION.—From amounts reserved under
section 303(a)(2) for any fiscal year, the Secretary of Labor
shall provide grants to, or enter into contracts or coopera-
tive agreements with, Indian tribes and tribal organiza-
146
tions, tribally-controlled colleges, tribally-controlled post-
secondary vocational institutions, Indian-controlled organi-
zations serving off-reservation areas, Alaska Native village
and regional entities serving areas as described in the Alas-
ka Native Claims Settlement Act and Hawaiian Native-
controlled organizations to provide employment, training,
vocational rehabilitation, library services, and education
assistance for Native Americans.
(b) TRANSFER OF AUTHORITY FOR VOCATIONAL EDU-
CATION ACTIVITIES.—In carrying out subsection (a), the
Secretary of Labor may enter into an agreement with the
Secretary of Education to carry out any portion of assist-
ance under such subsection devoted to vocational edu-
cational activities, including support for the United Tribes
Technical College and Crownpoint Institute of Technology.
(c) CONSOLIDATION OF FUNDS.—Entities receiving as-
sistance under subsection (a) may consolidate such assist-
ance with assistance received from related programs in ac-
cordance with the provisions of the Indian Employment,
Training and Related Services Demonstration Act (Public
Law 102–477).
(d) REGULATIONS.—The Secretary shall consult with
Indian, Alaska Native and Hawaiian Native groups in es-
tablishing regulations to carry out this section, including
performance standards for entities receiving assistance
147
under subsection (a), taking into account the economic cir-
cumstances of such groups.
SEC. 316. EMPLOYMENT, TRAINING, AND EDUCATION AS-
SISTANCE FOR MIGRANT AND SEASONAL
FARMWORKERS.
(a) AUTHORIZATION.—
(1) IN GENERAL.—From amounts reserved under
section 303(a)(2) for any fiscal year, the Secretary of
Labor shall provide grants to, or enter into contracts
or cooperative agreements with, entities described in
paragraph (2) to provide employment, training, and
education assistance for migrant and seasonal farm-
workers.
(2) ENTITIES DESCRIBED.—An entity described
in this paragraph is an entity the Secretary deter-
mines to have the capacity to administer effectively a
diversified development program for migrant and sea-
sonal farmworkers.
(b) USE OF AMOUNTS.—An entity shall use amounts
received under subsection (a) to provide employment, train-
ing, educational development, high school equivalency, post-
secondary education assistance, vocational rehabilitation,
literacy, English as a second language, work-based edu-
cation and development, worker safety training, employ-
ability enhancements, emergency or other disaster relief, in-
148
cluding housing, technical assistance, outreach, intake, as-
sessment, follow-up, stipend support, supportive services,
other needs-based assistance, self-employment and related
business enterprise development education, and the manage-
ment of a database on participating migrant and seasonal
farmworkers.
(c) TRANSFER OF AUTHORITY FOR EDUCATION AC-
TIVITIES.—In carrying out subsection (b), the Secretary of
Labor may enter into an agreement with the Secretary of
Education to carry out assistance as described in—
(1) a secondary and postsecondary high school
equivalency program to serve migrants and seasonal
farmworkers; and
(2) a college assistance migrant program to pro-
vide outreach and recruitment services for migrants
and seasonal farmworkers.
TITLE 
IV—ADULT 
EDUCATION
AND FAMILY LITERACY CON-
SOLIDATION GRANT AND LI-
BRARY SERVICES AND TECH-
NOLOGY 
CONSOLIDATION
GRANT
SEC. 401. FINDINGS.
The Congress finds as follows:
149
(1) According to the 1990 census, 21 percent of
our Nation’s adults (more than 38 million persons)
lack a high school credential or are limited English
proficient.
(2) The National Adult Literacy Survey, con-
ducted under the Adult Education Act, found that 20
percent of all adults in the United States, or about
40 million people, have minimal levels of literacy
skills and that the lack of such skills is related to un-
employment, low wages, and fewer weeks worked.
(3) The success of State efforts to reform and im-
prove public education are dependent on the ability
of the United States to break intergenerational cycles
of illiteracy and inadequate education by ensuring
that parents possess a strong educational foundation
and, as the first and most continuous teachers of their
children, model for, and instill in, their children a
commitment to family literacy and life-long learning.
(4) Generations of immigrants have contributed
to our communities and our economy, but for them to
continue to do so given recent technologies and the
competitive global economy, they must master English
as rapidly as possible.
(5) Studies have found that incarcerated adults
are twice as likely as nonincarcerated adults to lack
150
a good education and that such lack is a significant
statistical indicator of recidivism.
(6) Certain short-term and long-term goals of the
Nation may not be met unless the United States im-
proves its current system of adult education and life-
long learning through Federal leadership.
SEC. 402. DEFINITIONS.
As used in this title:
(1) CORRECTIONAL
EDUCATION
AGENCY.—The
term ‘‘correctional education agency’’ means an en-
tity that provides programs for criminal offenders in
corrections institutions and for other institutionalized
individuals which include academic programs for
basic education, special education, bilingual or Eng-
lish language instruction, vocational training, library
development, corrections education programs, guid-
ance and counseling, and other supportive services for
criminal offenders which may emphasize coordination
of educational services with educational institutions,
community-based organizations of demonstrative ef-
fectiveness, and the private sector, designed to provide
education and training.
(2) EDUCATIONALLY DISADVANTAGED ADULT.—
The term ‘‘educationally disadvantaged adult’’ means
an adult who—
151
(A) demonstrates basic skills equivalent to
or below that of students at the fifth grade level;
or
(B) has been placed in the lowest or begin-
ning level of an adult education program when
that program does not use grade level equiva-
lencies as a measure of students’ basic skills.
(3) FAMILY
LITERACY
SERVICES.—The term
‘‘family literacy services’’ means services that inte-
grate all of the following activities and are of suffi-
cient intensity in terms of hours, and of sufficient du-
ration, to make sustainable changes in a family:
(A) Interactive literacy activities between
parents and their children.
(B) Training for parents on how to be their
children’s primary teacher and full partners in
the education of their children.
(C) Parent literacy training.
(D) Early childhood education.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Education.
152
Subtitle A—Adult Education and
Family Literacy Consolidation
Grant
SEC. 411. PURPOSES.
The purposes of this subtitle are to assist States to pro-
vide—
(1) to adults, the basic educational skills nec-
essary for employment and self-sufficiency;
(2) to adults who are parents, the educational
skills necessary to be full partners in the educational
development of their children;
(3) to adults, the basic English language skills
necessary to participate in the civic, social, and eco-
nomic life of the United States; and
(4) to adults, the opportunity to attain a high
school degree or its equivalent in order to permit them
to pursue further education and training or improve
their family and work situations.
CHAPTER 1—FUNDING
SEC. 421. RESERVATIONS FROM AMOUNTS APPROPRIATED.
(a) NATIONAL INSTITUTE FOR LITERACY.—For any
fiscal year, the Secretary shall reserve $4,500,000 of the
amount appropriated under section 4(a)(3) to carry out the
activities of the National Institute for Literacy described
in section 441.
153
(b) NATIONAL LEADERSHIP ACTIVITIES.—For any fis-
cal year, the Secretary shall reserve $4,500,000 of the
amount appropriated under section 4(a)(3) to establish and
carry out the program of national leadership and evalua-
tion activities described in section 442.
SEC. 422. ALLOTMENT.
(a) INITIAL ALLOTMENT.—From the sums available
for the purpose of making grants under chapter 2 for any
fiscal year, the Secretary shall allot—
(1) $100,000 each to Guam, American Samoa,
the Commonwealth of the Northern Mariana Islands,
and the Virgin Islands; and
(2) $250,000 to each of the other States.
(b) ADDITIONAL ALLOTMENT.—
(1) IN GENERAL.—From the remainder of the
sums described in subsection (a) after the application
of the subsection, the Secretary shall allot to each
State an amount which bears the same ratio to such
remainder as the number of qualifying adults in the
State bears to the number of such adults in all States.
(2) QUALIFYING ADULT.—For purposes of this
subsection, the term ‘‘qualifying adult’’ means an
adult who—
(A) is at least 16 years of age, but less than
61 years of age;
154
(B) is beyond the age of compulsory school
attendance under State law;
(C) does not have a certificate of graduation
from a school providing secondary education (or
its equivalent); and
(D) is not currently enrolled in elementary
or secondary school.
CHAPTER 2—GRANTS TO STATES
SEC. 431. REQUIREMENT TO MAKE GRANTS.
For fiscal year 1997 and subsequent fiscal years, the
Secretary shall make a grant to a State in an amount equal
to the initial and additional allotments of the State for the
year if the State—
(1) has satisfied the requirements of title I and
section 433(a)(1);
(2) enters into a written agreement with the Sec-
retary that the State—
(A) will not expend the grant for any pur-
pose other than in accordance with section 432;
(B) will satisfy the grant requirements in
sections 433(a)(2) and 433(b); and
(C) will not expend the grant for the pur-
pose of supporting or providing programs, serv-
ices, or activities for individuals who are not
155
adults, except if such programs, services, or ac-
tivities are related to family literacy services.
SEC. 432. USES OF FUNDS.
(a) STATE USES OF FUNDS.—
(1) GRANTS TO SERVE TARGET POPULATIONS.—
(A) IN GENERAL.—Of the funds paid to a
State under this title for fiscal year 1998 and
subsequent fiscal years, 3 percent shall be distrib-
uted as performance grants made by the State on
a competitive basis, and consistent with sub-
section (b) and section 433(b)(2), to local service
providers that have provided, during the imme-
diately preceding fiscal year, adult education or
family literacy services to the target populations
described in subparagraph (C).
(B) LOCAL SERVICE PROVIDERS.—The local
service providers referred to in subparagraph (A)
may include the following:
(i) Local educational agencies.
(ii) Correctional educational agencies.
(iii) Community-based organizations.
(iv) Public or private nonprofit agen-
cies.
(v) Institutions of higher education.
(vi) Libraries.
156
(vii) Other institutions that the State
determines to have the ability to provide lit-
eracy services to adults and families.
(C) TARGET
POPULATIONS.—The target
populations referred to in subparagraph (A) are
the following:
(i) Adults with more than one barrier
to self-sufficiency, such as being unemployed
or an educationally disadvantaged adult.
(ii) Families on public assistance (as
determined by the State).
(iii) Parents who are educationally
disadvantaged adults and who have a child
who is less than 8 years of age.
(iv) Adults who are individuals with
disabilities or who have similar special
needs.
(2) GRANTS TO LOCAL SERVICE PROVIDERS.—Of
the funds paid to a State under this subtitle for any
fiscal year that remain after the application of para-
graph (1), at least 85 percent shall be distributed as
grants made by the State on a competitive basis, and
consistent with subsection (b) and section 433(b)(2),
to local service providers to establish, conduct, or ex-
pand programs, services, or activities to achieve a
157
purpose of this subtitle. Such local service providers
may include the local service providers described in
paragraph (1)(B).
(3) OTHER STATE ACTIVITIES.—A State may use
not more than 12 percent of the funds paid to the
State under this subtitle for any fiscal year that re-
main after the application of paragraph (1) for one
or more of the following purposes:
(A) The establishment or operation of pro-
fessional development programs to improve the
quality of instruction provided in local adult
education and literacy programs, including in-
struction provided by volunteers.
(B) The provision of technical assistance to
local service providers.
(C) The provision of technology assistance
to local service providers to enable them to im-
prove the quality of their programs, services, and
activities that achieve a purpose of this subtitle,
including—
(i) providing hardware and software;
(ii) paying for service connection fees
associated with gaining access to computer-
ized databases; and
158
(iii) upgrading the technological capa-
bilities of local service providers to improve
the quality of their services and to assist
them in providing services on a flexible
schedule that meets the needs of diverse pop-
ulations.
(D) The support of State or regional net-
works of literacy resource centers that—
(i) enhance the coordination of literacy
services across public and private programs
and State agencies;
(ii) enhance the capacity of the State
and local service providers to provide lit-
eracy services through the diffusion and
adoption of state-of-the-art teaching methods
and technologies;
(iii) provide linkages between the Na-
tional Institute for Literacy established
under section 441 and local service provid-
ers for the sharing of literacy information,
research, and resources;
(iv) encourage government and indus-
try partnerships; and
(v) provide training and technical as-
sistance to literacy instructors in reading
159
instruction, the use of state-of-the-art meth-
odologies, instructional materials, and tech-
nologies, and professional development.
(E) Monitoring and evaluating the quality
of, and the improvement in, services and activi-
ties conducted with Federal financial assistance
under this subtitle, including carrying out sec-
tion 433(a)(2).
(F) The support of a common management
information system as described in section 109.
(G) Carrying out other activities of state-
wide significance that promote the purposes of
this Act.
(4) ADMINISTRATIVE EXPENSES.—For any fiscal
year, a State may use not more than 3 percent of the
funds paid to the State under this subtitle that re-
main after the application of paragraph (1) or
$50,000, whichever is greater, for—
(A) planning, administration, and inter-
agency coordination associated with a grant
under this subtitle; and
(B) support for one-stop career center sys-
tems described in section 107.
(b) LOCAL USES OF FUNDS.—A State shall require
that a local service provider that receives a grant from the
160
State under paragraph (1) or (2) of subsection (a) use the
grant to establish or operate one or more programs that
provide instruction or services within one or more of the
following categories:
(1) Adult basic education that is designed for an
adult who—
(A) has minimal competence in reading,
writing, or computation;
(B) is not sufficiently competent in reading,
writing, or computation to meet the requirements
of adult life in the United States; or
(C) is not sufficiently competent in speak-
ing, reading, or writing the English language to
obtain employment commensurate with the
adult’s intellectual abilities.
(2) Adult secondary education that is designed
for an adult who is literate and can function in ev-
eryday life, but who—
(A) has not acquired basic educational
skills, including reading, writing, and computa-
tion; or
(B) does not have a certificate of graduation
from a school providing education to students in
grade 12, or its equivalent.
161
(3) English literacy instruction that is designed
for an adult—
(A) who—
(i) has limited ability in speaking,
reading, writing, or understanding the Eng-
lish language and whose native language is
a language other than English; or
(ii) lives in a family or community en-
vironment where a language other than
English is the dominant language; and
(B) who, by reason of a condition described
in subparagraph (A), has sufficient difficulty
reading, writing, or understanding the English
language that the adult is unable—
(i) to learn successfully in a classroom
where the language of instruction is Eng-
lish; or
(ii) to participate fully in the society
of the United States.
(4) Family literacy services.
SEC. 433. ADDITIONAL GRANT REQUIREMENTS.
(a) GOALS, PROGRESS INDICATORS, PERFORMANCE
MEASURES.—
162
(1) PLANNING REQUIREMENTS.—A State that de-
sires to receive a grant under this subtitle shall ac-
complish the following:
(A) Establish, through the collaborative
process described in section 103, measurable
goals for improving literacy levels, retention in
literacy programs, and long-term learning gains
of individuals in the State.
(B) Based on such goals and the perform-
ance measures described in section 434, establish,
through such collaborative process, progress indi-
cators to be used to evaluate the performance of
local service providers receiving a grant under
paragraph (1) or (2) of section 432(a).
(C) Describe such goals and progress indica-
tors in the State workforce development and lit-
eracy plan submitted to the Secretary under sec-
tion 104.
(2) IMPLEMENTATION REQUIREMENTS.—A State
that receives a grant under this subtitle shall accom-
plish the following:
(A) With respect to each local service pro-
vider receiving a grant under paragraph (1) or
(2) of section 432(a), based on the goals and
progress indicators established under paragraph
163
(1), measure the performance measures described
in section 434 and use the data produced by such
measurement to improve the quality of services
provided to program participants or service re-
cipients.
(B) Beginning on the date that is 2 years
after the first date that a local service provider
receives a grant under paragraph (1) or (2) of
section 432(a), annually assess the degree to
which the provider is meeting or exceeding the
progress indicators applicable to the provider.
(C) Annually report to the Secretary on the
performance measures described in section 434
for each category described in such section.
(b) OTHER REQUIREMENTS.—A State that receives a
grant under this subtitle shall ensure the following:
(1) EXPENDITURES OF NON-FEDERAL FUNDS.—
For any fiscal year for which a grant is made to the
State under this subtitle, the State shall expend, on
programs and activities relating to adult education
and family literacy services, an amount, derived from
sources other than the Federal Government, equal to
25 percent of the State’s initial and additional allot-
ments for the year.
164
(2) PRIORITY FOR PLANNING WITH BOARDS AND
SYSTEMS.—In awarding grants to local service pro-
viders under paragraph (1) or (2) of section 432(a),
the State shall give priority to providers that dem-
onstrate joint planning with local workforce develop-
ment boards and one-stop career center systems.
(3) EQUITABLE
ACCESS.—Local educational
agencies, public or private nonprofit agencies, com-
munity-based organizations, correctional education
agencies, institutions of higher education, libraries,
and institutions which serve educationally disadvan-
taged adults shall be provided direct and equitable ac-
cess to Federal funds provided under this subtitle in
accordance with this subtitle.
(4) PAYMENTS BY ONE-STOPS TO LOCAL SERVICE
PROVIDERS.—A one-stop career center system in a
State that refers an adult who is in need of adult edu-
cation or literacy services in order to achieve such
adult’s career goals to a local service provider shall
pay to such provider, in accordance with the biennial
strategic plan of the local workforce development
board pursuant to which such center is established or
designated, an amount appropriate to pay for such
services if such provider renders such services and—
165
(A) is receiving a grant from the State
under paragraph (1) or (2) of section 432(a); or
(B) is not receiving such a grant but has
been certified by the State as eligible to receive
such amounts.
SEC. 434. PERFORMANCE MEASURES.
A State that receives a grant under this subtitle for
a fiscal year shall measure the performance in the following
categories for such year of the programs, services, and ac-
tivities carried out by each local service provider receiving
a grant under paragraph (1) or (2) of section 432(a):
(1) The percentage of adults served who, based on
skills or abilities acquired through such a program,
service, or activity—
(A) demonstrate skills necessary to assist
their children to succeed in school, such as the
ability to—
(i) read to their children;
(ii) provide support to their children
in the completion of homework assignments;
or
(iii) participate on an ongoing basis
in activities that support their childrens’
schools;
166
(B) enrolled in institutions of higher edu-
cation or occupational training;
(C) obtained a job;
(D) advanced in their job; or
(E) performed new job requirements essen-
tial to retaining their job.
(2) The percentage of adults served who, based on
skills or abilities acquired through such a program,
service, or activity—
(A) obtained a high school diploma; or
(B) obtained a high school equivalency di-
ploma.
(3) The percentage of adults served who, based on
skills or abilities acquired through such a program,
service, or activity—
(A) register to vote;
(B) obtain United States citizenship; or
(C) seek preventive health services.
(4) The percentage of incarcerated adults served
who, based on skills or abilities acquired through such
a program, service, or activity, during their term of
incarceration or upon the termination of such term—
(A) enrolled in job training or education
programs; or
(B) obtained employment.
167
CHAPTER 3—NATIONAL PROGRAMS
SEC. 441. NATIONAL INSTITUTE FOR LITERACY.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There shall be established a
National Institute for Literacy (in this section re-
ferred to as the ‘‘Institute’’). The Institute shall be ad-
ministered under the terms of an interagency agree-
ment entered into by the Secretary of Education with
the Secretary of Labor and the Secretary of Health
and Human Services (in this section referred to as
the ‘‘Interagency Group’’). The Secretary may include
in the Institute any research and development center,
institute, or clearinghouse established within the De-
partment of Education whose purpose is determined
by the Secretary to be related to the purpose of the
Institute.
(2) BOARD
RECOMMENDATIONS.—The Inter-
agency Group shall consider the recommendations of
the National Institute for Literacy Advisory Board
(in this section referred to as the ‘‘Board’’) established
under subsection (d) in planning the goals of the In-
stitute and in the implementation of any programs to
achieve such goals.
168
(3) DAILY OPERATIONS.—The daily operations of
the Institute shall be carried out by the Director of
the Institute appointed under subsection (g).
(b) DUTIES.—
(1) IN GENERAL.—The Institute shall—
(A) provide national leadership for the im-
provement and expansion of the system for deliv-
ery of literacy services;
(B) coordinate the delivery of such services;
(C) support the creation of new methods of
offering improved services;
(D) serve as a national resource for adult
education and family literacy services by provid-
ing to the public the best and most current infor-
mation available on the subjects; and
(E) assist States in developing levels of per-
formance.
(2) AUTHORIZED ACTIVITIES.—In order to carry
out the duties described in paragraph (1), the Insti-
tute may—
(A) establish a national electronic database
of information that includes—
(i) information on—
169
(I) effective practices in the provi-
sion of literacy and basic skills in-
struction;
(II) public and private literacy
and basic skills programs and Federal,
State, and local policies affecting the
provision of literacy services at the na-
tional, State, and local levels; and
(III) technical assistance, meet-
ings, conferences, and other opportuni-
ties that lead to the improvement of lit-
eracy and basic skills services; and
(ii) a communication network for lit-
eracy programs, providers, and students;
(B) coordinate support for the provision of
literacy and basic skills services across Federal
agencies and at the State and local level;
(C) coordinate the support of research and
development on literacy and basic skills in fami-
lies and adults across Federal agencies and carry
out basic and applied research and development
on topics that are not being investigated by other
organizations or agencies;
170
(D) collect and disseminate information on
methods of advancing literacy that show promise
of success;
(E) work with the National Education
Goals Panel established under Goals 2000: Edu-
cate America Act to assist local, State, and na-
tional organizations and agencies in making and
measuring progress toward the National Edu-
cation Goals established under such Act; and
(F) assist in the development of policy with
respect to literacy and basic skills.
(3) GRANTS, CONTRACTS, AND AGREEMENTS.—
The Institute may enter into contracts or cooperative
agreements with, or make grants to, individuals, pub-
lic or private institutions, agencies, organizations, or
consortia of such institutions, agencies, or organiza-
tions to carry out the activities of the Institute. Such
grants, contracts, or agreements shall be subject to the
laws and regulations that generally apply to grants,
contracts, or agreements entered into by Federal agen-
cies.
(c) LITERACY LEADERSHIP.—
(1) FELLOWSHIPS.—The Institute, in consulta-
tion with the Board, may award fellowships, with
such stipends and allowances as the Director consid-
171
ers necessary, to outstanding individuals pursuing ca-
reers in adult education or literacy in the areas of in-
struction, management, research, or innovation.
(2) USE OF FELLOWSHIPS.—Fellowships award-
ed under this subsection shall be used, under the aus-
pices of the Institute, to engage in research, education,
training, technical assistance, or other activities to
advance the field of adult education or literacy, in-
cluding the training of volunteer literacy providers at
the national, State, or local level.
(3) INTERNS AND VOLUNTEERS.—The Institute,
in consultation with the Board, may award paid and
unpaid internships to individuals seeking to assist the
Institute in carrying out its mission. Notwithstand-
ing section 1342 of title 31, United States Code, the
Institute may accept and use voluntary and uncom-
pensated services as the Institute determines nec-
essary.
(d) NATIONAL INSTITUTE FOR LITERACY ADVISORY
BOARD.—
(1) ESTABLISHMENT.—
(A) IN
GENERAL.—There shall be a Na-
tional Institute for Literacy Advisory Board.
The Board shall consist of 10 individuals ap-
172
pointed by the President with the advice and
consent of the Senate from individuals who—
(i) are not otherwise officers or em-
ployees of the Federal Government; and
(ii) are representative of entities or
groups described in subparagraph (B).
(B) ENTITIES
OR
GROUPS
DESCRIBED.—
The entities or groups referred to in subpara-
graph (A) are—
(i) literacy organizations and provid-
ers of literacy services, including—
(I) nonprofit providers of literacy
services;
(II) providers of programs and
services involving English language in-
struction; and
(III) providers of services receiv-
ing assistance under this subtitle;
(ii) businesses that have demonstrated
interest in literacy programs;
(iii) literacy students;
(iv) experts in the area of literacy re-
search;
(v) State and local governments; and
(vi) organized labor.
173
(2) DUTIES.—The Board shall—
(A) make recommendations concerning the
appointment of the Director and staff of the In-
stitute;
(B) provide independent advice on the oper-
ation of the Institute; and
(C) receive reports from the Interagency
Group and the Director.
(3) TERMS.—
(A) IN
GENERAL.—Each member of the
Board shall be appointed for a term of 3 years,
except that the initial terms for members may be
1, 2, or 3 years in order to establish a rotation
in which 1⁄3 of the members are selected each
year.
(B) VACANCY APPOINTMENTS.—Any member
appointed to fill a vacancy occurring before the
expiration of the term for which the member’s
predecessor was appointed shall be appointed
only for the remainder of that term. A member
may serve after the expiration of that members’
term until a successor has taken office. A va-
cancy in the Board shall be filled in the manner
in which the original appointment was made. A
174
vacancy in the Board shall not affect the powers
of the Board.
(4) QUORUM.—A majority of the members of the
Board shall constitute a quorum but a lesser number
may hold hearings. Any recommendation may be
passed only by a majority of its members present.
(5) CHAIRPERSON AND VICE CHAIRPERSON.—The
chairperson and vice chairperson of the Board shall
be elected by the members. The term of office of the
chairperson and vice chairperson shall be 1 year.
(6) MEETINGS.—The Board shall meet at the call
of the chairperson or a majority of its members.
(e) GIFTS, BEQUESTS, AND DEVISES.—The Institute
may accept, administer, and use gifts or donations of serv-
ices, money, or property, both real and personal.
(f) MAILS.—The Board and the Institute may use the
United States mails in the same manner and under the
same conditions as other departments and agencies of the
United States.
(g) STAFF.—The Interagency Group, after considering
recommendations made by the Board, shall appoint and fix
the pay of a Director.
(h) APPLICABILITY
OF
CERTAIN
CIVIL
SERVICE
LAWS.—The Director and staff of the Institute may be ap-
pointed without regard to the provisions of title 5, United
175
States Code, governing appointments in the competitive
service, and may be paid without regard to the provisions
of chapter 51 and subchapter III of chapter 53 of that title
relating to classification and General Schedule pay rates,
except that an individual so appointed may not receive pay
in excess of the maximum rate payable under section 5376
of title 5, United States Code.
(i) EXPERTS AND CONSULTANTS.—The Board and the
Institute may procure temporary and intermittent services
under section 3109(b) of title 5, United States Code.
(j) REPORT.—The Institute shall submit a biennial re-
port to the Interagency Group and the Congress.
SEC. 442. NATIONAL LEADERSHIP ACTIVITIES.
(a) IN GENERAL.—The Secretary shall establish and
carry out a program of national leadership and evaluation
activities to enhance the quality of adult education and
family literacy programs nationwide.
(b) REQUIRED ACTIVITY.—
(1) IN GENERAL.—The program of national lead-
ership and evaluation activities under subsection (a)
shall include a national evaluation, conducted by the
Secretary, of the programs and activities carried out
by States and local service providers with Federal
funds received under this subtitle. Such evaluation
shall include information on the following:
176
(A) The manner in which States and local
service providers use Federal funds, including
the manner in which States allocate such funds
among such providers.
(B) The manner in which States establish
goals and performance standards and use such
goals and standards to manage and improve
programs.
(C) The effectiveness of the funds used under
subparagraphs (B) and (C) of section 432(a)(3).
(D) The manner in which economically dis-
advantaged individuals and educationally dis-
advantaged adults are being served by States
and local service providers.
(E) The coordination between programs and
activities carried out with Federal funds received
under titles II and III and programs and activi-
ties carried out with Federal funds received
under this subtitle.
(F) The percentage of individuals receiving
a service from a one-stop career center system
who are referred by such system to a local service
provider providing adult education or literacy
services.
177
(2) REPORT.—Not later than September 30,
2001, the Secretary shall provide to the Congress and
publicly publish the results of the evaluation con-
ducted under paragraph (1).
(c) AUTHORIZED ACTIVITIES.—
(1) IN GENERAL.—The program of national lead-
ership and evaluation activities under subsection (a)
may include the following:
(A) Assisting States in developing levels of
performance.
(B) Research and development.
(C) Demonstration of model and innovative
programs.
(D) Evaluations, including independent
evaluations of adult education and family lit-
eracy programs carried out with financial assist-
ance received pursuant to this subtitle.
(E) Data collection.
(F) Professional development.
(G) Technical assistance to States and local
service providers receiving Federal financial as-
sistance pursuant to this subtitle.
(H) Making grants to State or regional net-
works of literacy resource centers described in
section 432(a)(3)(D).
178
(I) Other activities to enhance the quality of
adult education and family literacy programs
nationwide.
(2) GRANTS, 
CONTRACTS, 
AND
COOPERATIVE
AGREEMENTS.—The Secretary may carry out the ac-
tivities described in paragraph (1) directly or through
grants, contracts, and cooperative agreements.
Subtitle B—Library Services and
Technology Consolidation Grant
SEC. 451. PURPOSES.
The purposes of this subtitle are—
(1) to consolidate Federal library service pro-
grams;
(2) to improve public access to information
through electronic networks; and
(3) to provide linkages among and between li-
braries and one-stop career center systems.
SEC. 452. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated to carry out this subtitle $110,000,000 for each of
the fiscal years 1997 through 2002.
(b) ADVANCE NOTICE OF FUNDING.—For the purpose
of affording adequate notice of funding available under this
subtitle, an appropriation to carry out this subtitle is au-
thorized to be included in an appropriation Act for the fis-
179
cal year preceding the fiscal year for which such appropria-
tion is first available for obligation.
SEC. 453. ALLOTMENTS.
(a) INITIAL ALLOTMENTS.—
(1) IN GENERAL.—From the sums appropriated
under section 452 for any fiscal year, the Secretary
shall allot—
(A) $40,000 each to Guam, American
Samoa, the Commonwealth of the Northern Mar-
iana Islands, and the Virgin Islands; and
(B) $200,000 to each of the other States.
(2) RATABLE REDUCTION.—If the sums appro-
priated under section 452 for any fiscal year are in-
sufficient to pay all of the allotments under para-
graph (1), each such allotment shall be ratably re-
duced.
(b) ADDITIONAL ALLOTMENTS.—
(1) IN GENERAL.—From the remainder of the
sums appropriated under section 452 for any fiscal
year after the application of subsection (a), the Sec-
retary shall allot to each State an amount which
bears the same ratio to such remainder as the popu-
lation of the State bears to the population of all
States.
180
(2) 
DETERMINATION
OF
POPULATION
OF
STATES.—For the purpose of this subsection, the pop-
ulation of each State, and the total population of all
States, shall be determined by the Secretary on the
basis of the most recent census data available to the
Secretary, and the Secretary shall use for such pur-
pose, if available, the annual interim current census
data produced by the Secretary of Commerce pursu-
ant to section 181 of title 13, United States Code.
SEC. 454. GRANTS TO STATES.
(a) IN GENERAL.—The Secretary shall make a grant
for a fiscal year to a State if the State—
(1) has submitted to the Secretary for the year
an annual application that has been approved by the
Secretary under section 456; and
(2) has entered into a written agreement with
the Secretary that—
(A) the State will provide 100 percent of the
funds paid to the State under this subtitle for the
year to the State library administrative agency
for the State;
(B) such agency will be required to use such
funds to carry out activities that—
(i) are described in such annual appli-
cation;
181
(ii) achieve the purposes of this sub-
title; and
(iii) satisfy the requirements of section
455;
(C) there will be available from State and
local sources for expenditure by such agency to
carry out such activities an amount that equals
or exceeds 25 percent of the total cost (as deter-
mined by the Secretary) of carrying out such ac-
tivities for the year; and
(D) such agency has the fiscal and legal au-
thority and capability to administer all aspects
of such activities.
(b) AMOUNT OF GRANTS.—The amount of a grant to
a State under subsection (a) for a fiscal year shall equal
the lesser of the following:
(1) The sum of the initial and additional allot-
ments of the State for the year.
(2) 75 percent of the total cost (as determined by
the Secretary) of carrying out the activities described
in subsection (a)(2)(B) for the year.
SEC. 455. USES OF FUNDS.
(a) IN GENERAL.—Of the funds provided to a State
library administrative agency under section 454(a)(2)(A),
182
the agency shall expend at least 97 percent for one or more
of the following purposes:
(1) Electronically connecting libraries with one-
stop career center systems designated or established
under section 107 and local service providers receiv-
ing grants under paragraph (1) or (2) of section
432(a).
(2) Establishing or enhancing linkages among li-
braries.
(3) Assisting libraries in accessing information
through electronic networks.
(4) Encouraging libraries in different Federal,
State, and local jurisdictions, and different types of
libraries, to establish consortia and share resources.
(5) Paying costs for libraries to acquire or share
computer systems and telecommunications tech-
nologies.
(6) Improving library and information services
for individuals who have difficulty using a library or
who need special library materials or services, includ-
ing individuals under the age of 18.
(b) ADMINISTRATIVE EXPENSES.—In any fiscal year,
a State library administrative agency may use not more
than 3 percent of the funds provided to the agency under
section 454(a)(2)(A) for planning, administration, evalua-
183
tions, and interagency coordination associated with a grant
under this subtitle.
SEC. 456. ANNUAL APPLICATIONS.
(a) SUBMISSION.—A State that desires to receive a
grant under this subtitle for a fiscal year shall submit to
the Secretary, in such form and manner and before such
deadline as the Secretary shall specify in regulations, an
application for such year. Such application shall—
(1) establish goals, and specify priorities, for the
State consistent with the purposes of this subtitle;
(2) describe activities that are consistent with
such goals and priorities, the purposes of this subtitle,
and the requirements of section 455 that the State li-
brary administrative agency will carry out during
such year using such grant;
(3) describe the procedures that such agency will
use to carry out such activities;
(4) describe the methodology that such agency
will use to evaluate the success of such activities in
achieving such goals and meeting such priorities;
(5) describe procedures that such agency will use
to involve libraries and library users throughout the
State in policy decisions regarding implementation of
this subtitle; and
184
(6) provide assurances satisfactory to the Sec-
retary that such agency will make such reports, in
such form and containing such information, as the
Secretary may reasonably require to carry out this
subtitle and to determine the extent to which funds
provided under this subtitle have been effective in car-
rying out its purposes.
(b) APPROVAL.—
(1) IN GENERAL.—The Secretary shall approve
each application submitted under subsection (a) that
satisfies the requirements of the subsection.
(2) RIGHTS OF STATES UPON DISAPPROVAL.—If
the Secretary determines that an application submit-
ted by a State under subsection (a) does not satisfy
the requirements of such subsection, the Secretary
shall—
(A) immediately notify the State of such de-
termination and the reasons for such determina-
tion; and
(B) offer the State an opportunity to revise
its application to correct any deficiencies.
185
TITLE V—AMENDMENTS TO
REHABILITATION ACT OF 1973
Subtitle A—Vocational
Rehabilitation Consolidation Grant
CHAPTER 1—TRANSITION PERIOD
SEC. 501. TRANSITION.
With respect to the amendment made by section 511(4)
to title I of the Rehabilitation Act of 1973, the Secretary
of Education, acting through the Commissioner of the Reha-
bilitation Services Administration, shall administer the
amendment in accordance with the following:
(1) During fiscal year 1996, the Secretary shall
develop administrative policies for implementing the
amendment.
(2) During the fiscal years 1997 and 1998, the
Secretary shall begin implementing the amendment in
accordance with paragraph (4).
(3) The Secretary shall ensure that, by the first
day of fiscal year 1999, the amendment is fully im-
plemented.
(4) For purposes of paragraph (2), the Secretary
shall ensure that, before the first day of fiscal year
1999, the following requirements, administered as
conditions on the receipt of grants under such title,
have been met:
186
(A) The States have complied with section
103(b)(4) of such title (as amended by section
511) regarding the participation of certain pro-
viders.
(B) The States have established policies and
made arrangements for the operation of the sys-
tem of vouchers described in section 103(c) of
such title, including with respect to the reim-
bursement of providers.
(C) The States have established policies and
made arrangements under section 103(b)(12) of
such title regarding the training of the manage-
ment and staff of one-stop career centers with re-
spect to individuals with disabilities.
(D) The States have established policies and
made arrangements under section 104 of such
title regarding the establishment of such centers,
including providing for the significant partici-
pation of community-based providers in the pro-
gram carried out by the State pursuant to such
title.
(E) Such other requirements under the
amendment as the Secretary determines to be ap-
propriate.
187
(5)(A) Notwithstanding the amendment, during
the fiscal years 1996 through 1998, the provisions of
title I of the Rehabilitation Act of 1973 that were in
effect on the day before the date of the enactment of
this Act continue to be in effect, subject to paragraphs
(1) through (4). In implementing the amendment, the
Secretary shall seek to avoid unnecessarily disrupting
the provision of services under such title to individ-
uals who, as of the date of the enactment of this Act,
were receiving services pursuant to an individualized
plan under such title.
(B) On and after the first day of fiscal year
1999, the provisions referred to in the first sentence
of subparagraph (A) do not have any legal effect.
CHAPTER 2—REVISION OF TITLE I OF
REHABILITATION ACT OF 1973
SEC. 511. REVISION OF TITLE I.
(a) IN GENERAL.—Effective October 1, 1995, the Reha-
bilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended—
(1) by transferring section 112 from the current
placement of the section;
(2) by redesignating such section as section 510;
(3) by adding such section at the end of title V;
and
(4) by amending title I to read as follows:
188
‘‘TITLE I—VOCATIONAL
REHABILITATION SERVICES
‘‘SEC. 100. PURPOSE.
‘‘The purpose of this title is to assist States in making
available to individuals with disabilities a program of em-
ployment, training, and rehabilitation services that is con-
sistent with their strengths, resources, priorities, concerns,
abilities, and capabilities; that maximizes individuals’ con-
trol over their vocational and career choices; and that is
in accordance with the goal of assuring equality of oppor-
tunity, full participation, independent living, and economic
self-sufficiency for such individuals.
‘‘SEC. 101. FORMULA GRANTS.
‘‘(a) IN GENERAL.—
‘‘(1) FORMULA
GRANTS.—In the case of each
State that submits to the Secretary a workforce devel-
opment and literacy plan for fiscal year 1999 or any
subsequent fiscal year that meets the requirement of
section 104 of the Consolidated and Reformed Edu-
cation, Employment, and Rehabilitation Systems Act,
the Secretary shall make a grant for the year to the
State as the Federal share of carrying out the pur-
poses specified in this title. The grant shall consist of
the allotment determined for the State under section
107.