120
the Secretary in accordance with the Act of March
3, 1921 (40 U.S.C. 276a–276a–5), commonly known
as the Davis-Bacon Act.
(2) AUTHORITY
AND
FUNCTIONS
OF
SEC-
RETARY.—The Secretary shall have, with respect to
such labor standards, the authority and functions
set forth in Reorganization Plan Numbered 14 of
1950 (15 F.R. 3176; 64 Stat. 1267) and section 2
of the Act of June 1, 1934, as amended (48 Stat.
948, as amended; 40 U.S.C. 276(c)).
(3) NONAPPLICABILITY TO TRAINING PROGRAM
PARTICIPANTS.—The provisions of this subsection
shall not apply to a bona fide participant in a train-
ing program under this title.
(4) NONDISCRIMINATION.—The provisions of
section 157(a)(4) shall apply to such trainees.
SEC. 144. GRIEVANCE PROCEDURE.
(a) IN GENERAL.—Each substate grantee, contrac-
tor, and grantee under this Act shall establish and main-
tain a grievance procedure for grievances or complaints
relating to its programs and activities from participants,
subgrantees, subcontractors, and other interested persons.
Any determination, decision, or other action which affects
the payment of unemployment compensation benefits shall
not be subject to the grievance procedure established
121
under the preceding sentence. Hearings on any grievance
shall be conducted within 30 days of filing of a grievance
and decisions shall be made not later than 60 days after
the filing of a grievance. Except for complaints alleging
fraud or criminal activity, complaints shall be made within
one year of the alleged occurrence.
(b) GRIEVANCE PROCEDURE FOR EMPLOYEES OF
PARTICIPANTS.—Each recipient of financial assistance
under this title which is an employer of participants under
this title shall continue to operate or establish and main-
tain a grievance procedure relating to the terms and condi-
tions of employment.
(c) EXHAUSTION
OF GRIEVANCE PROCEDURE.—
Upon exhaustion of the recipient’s grievance procedure
without decision, or where the Secretary has reason to be-
lieve that the recipient is failing to comply with the re-
quirements of this title, the Secretary shall investigate the
allegation or belief and determine within 120 days after
receiving the complaint whether such allegation or com-
plaint is true.
(d) INVESTIGATION BY SECRETARY.—
(1) IN GENERAL.—If a person alleges a viola-
tion of section 143 and such person exhausts the re-
cipient’s grievance procedure or the 60-day time pe-
riod described in subsection (a) has elapsed without
122
a decision, either party to such procedure may sub-
mit the grievance to the Secretary. The Secretary
shall investigate the allegations contained in the
grievance and make a determination as to whether
a violation of section 143 has occurred.
(2) MODIFICATION
OR
REVERSAL
OF
DECI-
SION.—If the results of the investigation conducted
pursuant to paragraph (1) indicate that a modifica-
tion or reversal of the decision issued pursuant to
the recipient’s grievance procedure is warranted, or
the 60-day time period described in subsection (a)
has elapsed without a decision, the Secretary may
modify or reverse the decision, or issue a decision if
no decision has been issued, as the case may be,
after an opportunity for a hearing in accordance
with the procedures under section 156.
(3) FINAL DECISION.—If the Secretary deter-
mines that the decision issued pursuant to the re-
cipient’s grievance procedure is appropriate, the de-
termination shall become the final decision of the
Secretary.
(e) BINDING GRIEVANCE PROCEDURE.—
(1) IN GENERAL.—A person alleging a violation
of section 143 may, as an alternative to the proce-
dures described in this section, submit the grievance
123
involving such violation to a binding grievance proce-
dure if a collective bargaining agreement covering
the parties to the grievance so provides.
(2) REMEDIES.—The remedies available under
paragraph (1) shall be limited to the remedies avail-
able under subsection (f)(1)(C) and subsection
(f)(2).
(f) REMEDIES AVAILABLE TO GRIEVANTS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), remedies available to grievants under this
section for violations of section 143 shall be limited
to—
(A) suspension or termination of payments
under this Act;
(B) prohibition of placement of a partici-
pant, for at least 2 years, in a program under
this Act with an employer that has violated sec-
tion 143, as determined under subsection (d) or
(e); and
(C) appropriate equitable relief (other than
back pay).
(2) ADDITIONAL REMEDIES.—In addition to the
remedies available under paragraph (1), remedies
available under this section for violations of sub-
124
section (a)(4), paragraphs (1) and (3) of subsection
(b), and subsection (d) of section 143 may include—
(A) reinstatement of the grievant to the
position held by such grievant prior to displace-
ment;
(B) payment of lost wages and benefits;
and
(C) reestablishment of other relevant
terms, conditions, and privileges of employment.
(g) REMEDIES UNDER OTHER LAWS.—Nothing in
subsection (f) shall be construed to prohibit a grievant
from pursuing a remedy authorized under another Fed-
eral, State, or local law for a violation of section 143.
Subtitle E—Fiscal Administrative
Provisions
SEC. 151. PROGRAM YEAR.
(a) OBLIGATION OF FUNDS.—Except as provided in
subsection (b), beginning with fiscal year 1995 and there-
after, amounts appropriated for any fiscal year for pro-
grams and activities under this title shall be available for
obligation only on the basis of a program year. The pro-
gram year shall begin on July 1 in the fiscal year for which
the appropriation is made.
(b) EXPENDITURE OF OBLIGATED FUNDS UNDER
SUBTITLE B.—Funds obligated to carry out subtitle B for
125
any program year may be expended by each recipient dur-
ing that program year and the two succeeding program
years.
SEC. 152. PROMPT ALLOCATION OF FUNDS.
(a) PUBLICATION OF FORMULA ALLOCATIONS AND
ALLOTMENTS.—Whenever the Secretary allots and allo-
cates funds required to be allotted or allocated by formula
under this title, the Secretary shall publish in a timely
fashion in the Federal Register the proposed amount to
be distributed to each recipient.
(b) PUBLICATION OF DISCRETIONARY ALLOCATION
FORMULA.—Whenever the Secretary utilizes a formula to
allot or allocate funds made available for distribution at
the Secretary’s discretion under this Act, the Secretary
shall, not later than 30 days prior to such allotment or
allocation, publish such formula in the Federal Register
for comments along with the rationale for the formula and
the proposed amounts to be distributed to each State and
area. After consideration of any comments received, the
Secretary shall publish final allotments and allocations in
the Federal Register.
SEC. 153. MONITORING.
(a) IN GENERAL.—The Secretary is authorized to
monitor all recipients of financial assistance under this
title to determine whether such recipients are complying
126
with the provisions of this title and the regulations issued
under this title.
(b) INVESTIGATIONS.—The Secretary may inves-
tigate any matter the Secretary determines is necessary
to determine compliance with the provisions of this title
and regulations issued under this title. The investigation
of any such matter may include examining records (includ-
ing making certified copies thereof), questioning employ-
ees, and entering any premises or onto any site in which
any part of a program of a recipient is conducted or in
which any of the records of the recipient are kept.
(c) WITNESSES AND DOCUMENTS.—For the purpose
of any investigation or hearing under this Act, the provi-
sions of section 9 of the Federal Trade Commission Act
(15 U.S.C. 49) (relating to the attendance of witnesses
and the production of books, papers, and documents) are
made applicable to the Secretary.
SEC. 154. FISCAL CONTROLS AND SANCTIONS.
(a) IN GENERAL.—
(1) FISCAL CONTROL AND FUND ACCOUNTING
PROCEDURES.—Each State shall establish such fis-
cal control and fund accounting procedures as may
be necessary to assure the proper disbursal of, and
accounting for, Federal funds paid to the recipient
under this title. Such procedures shall ensure that
127
all financial transactions are conducted and records
maintained in accordance with generally accepted ac-
counting principles applicable in each State.
(2) UNIFORM
COST
PRINCIPLES.—The Sec-
retary shall prescribe regulations establishing uni-
form cost principles substantially equivalent to such
principles generally applicable to recipients of Fed-
eral grants funds. At a minimum, such standard
shall provide that, to be allowable, costs must—
(A) be necessary and reasonable for proper
and efficient administration of the program
under this title;
(B) be allocable to the program under this
title; and
(C) not be a general expense required to
carry out the overall responsibilities of State or
local governments, except as specifically pro-
vided by this title.
(3) PROCUREMENT
STANDARDS.—The Gov-
ernor, in accordance with minimum requirements es-
tablished in regulations by the Secretary, shall pre-
scribe and implement procurement standards to en-
sure fiscal accountability and prevent fraud and
abuse in programs administered under this title. The
Secretary, in establishing such minimum require-
128
ments, shall consult with the Inspector General of
the Department of Labor and take into consider-
ation relevant aspects of the circulars issued by the
Director of the Office of Management and Budget.
Such minimum requirements shall include provisions
to ensure that for States and substate areas—
(A) procurements shall be conducted in a
manner providing full and open competition;
(B) the use of sole source procurements
shall be minimized to the extent practicable, but
in every case shall be justified;
(C) procurements shall include an appro-
priate analysis of the reasonableness of costs
and prices;
(D) procurements shall not provide excess
program income (for nonprofit and government
entities) or excess profit (for private for-profit
entities), and that appropriate factors shall be
utilized in determining whether such income or
profit is excessive, such as—
(i) the complexity of the work to be
performed;
(ii) the risk borne by the contractor;
and
129
(iii) market conditions in the sur-
rounding geographical area;
(E) procurements shall clearly specify
deliverables and the basis for payment;
(F) written procedures shall be established
for procurement transactions;
(G) a grantee, contractor, subgrantee, or
subcontractor shall not engage in any conflict of
interest, actual or apparent, in the selection,
award, or administration of a contract or grant
under this title;
(H) all grantees and subgrantees shall con-
duct oversight to ensure compliance with pro-
curement standards; and
(I) procurement transactions between units
of State or local governments shall be con-
ducted on a cost reimbursable basis.
(4) ON-SITE MONITORING.—The Governor shall
annually conduct on-site monitoring of each substate
grantee within the State to ensure compliance with
the procurement standards established pursuant to
paragraph (3).
(5) CORRECTIVE ACTION AND SANCTIONS WITH
RESPECT TO SUBSTATE GRANTEE.—If the Governor
determines that a substate grantee is not in compli-
130
ance with the procurement standards established
pursuant to paragraph (3), the Governor shall—
(A) require corrective action to secure
prompt compliance; and
(B) impose the sanctions provided under
subsection (b) in the event of failure to take the
required corrective action.
(6) BIENNIAL CERTIFICATION.—The Governor
shall biennially certify to the Secretary that—
(A) the State has implemented the pro-
curement standards established pursuant to
paragraph (3);
(B) the State has monitored substate
grantees to ensure compliance with the procure-
ment standards as required under paragraph
(4); and
(C) the State has taken appropriate action
to secure compliance pursuant to paragraph
(5).
(7) CORRECTIVE ACTION AND SANCTIONS WITH
RESPECT TO STATE.—If the Secretary determines
that the Governor has not fulfilled the requirements
of this subsection, the Secretary shall—
(A) require corrective action to secure
prompt compliance; and
131
(B) impose the sanctions provided under
subsection (f) in the event of failure of the Gov-
ernor to take the required corrective action.
(b) SUBSTANTIAL VIOLATIONS.—
(1) IMPOSITION OF REORGANIZATION PLAN.—
If, as a result of financial and compliance audits or
otherwise, the Governor determines that there is a
substantial violation of a specific provision of this
title or the regulations under this title, and correc-
tive action has not been taken, the Governor shall
impose a reorganization plan, which may include—
(A) redesignating the substate grantee;
(B) prohibiting the use of designated serv-
ice providers;
(C) merging the substate area into 1 or
more other existing substate areas; or
(D) other such changes as the Secretary or
Governor determines necessary to secure com-
pliance.
(2) APPEALS PROCESS.—(A) The actions taken
by the Governor pursuant to paragraph (1)(A) may
be appealed to the Secretary and shall not become
effective until—
(i) the time for appeal has expired; or
(ii) the Secretary has issued a decision.
132
(B) The actions taken by the Governor pursu-
ant to paragraph (1)(B) may be appealed to the
Secretary, who shall make a final decision not later
than 60 days of the receipt of the appeal.
(3) FAILURE BY GOVERNOR TO TAKE PROMPT
ACTION.—If the Governor fails to promptly take the
actions required under paragraph (1), the Secretary
shall take such actions.
(c) REPAYMENT OF FUNDS.—Every recipient shall
repay to the United States amounts found not to have
been expended in accordance with this title. The Secretary
may offset such amounts against any other amount to
which the recipient is or may be entitled under this Act
unless the Secretary determines that such recipient should
be held liable pursuant to subsection (d). No such action
shall be taken except after notice and opportunity for a
hearing have been given to the recipient.
(d) LIABILITY FOR REPAYMENT OF FUNDS.—
(1) IN GENERAL.—Each recipient shall be liable
to repay such amounts, from funds other than funds
received under this title, upon a determination that
the misexpenditures of funds was due to willful dis-
regard of the requirements of this title, gross neg-
ligence, or failure to observe accepted standards of
133
administration. No such finding shall be made ex-
cept after notice and opportunity for a fair hearing.
(2) REQUIREMENTS.—In determining whether
to impose any sanction authorized by this section
against a recipient for violations by a subgrantee of
such recipient under this title or the regulations
under this title, the Secretary shall first determine
whether such recipient has adequately demonstrated
that it has—
(A) established and adhered to an appro-
priate system for the award and monitoring of
contracts with subgrantees which contains ac-
ceptable standards for ensuring accountability;
(B) entered into a written contract with
such subgrantee which established clear goals
and obligations in unambiguous terms;
(C) acted with due diligence to monitor the
implementation of the subgrantee contract, in-
cluding the carrying out of the appropriate
monitoring activities (including audits) at rea-
sonable intervals; and
(D) taken prompt and appropriate correc-
tive action upon becoming aware of any evi-
dence of a violation of this Act or the regula-
tions under this Act by such subgrantee.
134
(3) WAIVER.—If the Secretary determines that
the recipient has demonstrated substantial compli-
ance with the requirements of paragraph (2), the
Secretary may waive the imposition of sanctions au-
thorized by this section upon such recipient. The
Secretary is authorized to impose any sanction con-
sistent with the provisions of this title and any ap-
plicable Federal or State law directly against any
subgrantee for violation of this Act or the regula-
tions under this Act.
(e) EMERGENCY TERMINATION OF FINANCIAL AS-
SISTANCE.—
(1) IN GENERAL.—In emergency situations, if
the Secretary determines it is necessary to protect
the integrity of the funds or ensure the proper oper-
ation of the program, the Secretary may imme-
diately terminate or suspend financial assistance, in
whole or in part, if the recipient is given prompt no-
tice and the opportunity for a subsequent hearing
within 30 days after such termination or suspension.
(2) NONDELEGATION
OF
FUNCTIONS.—The
Secretary shall not delegate any of the functions
specified in paragraph (1), other than to an officer
whose appointment was required to be made by and
with the advice and consent of the Senate.
135
(f) CORRECTIVE MEASURES.—If the Secretary deter-
mines that any recipient under this title has discharged
or in any other manner discriminated against a partici-
pant or against any individual in connection with the ad-
ministration of the program involved, or against any indi-
vidual because such individual has filed any complaint or
instituted or caused to be instituted any proceeding under
or related to this title, or has testified or is about to testify
in any such proceeding or investigation under or related
to this title, or otherwise unlawfully denied to any individ-
ual a benefit under the provisions of this title, or the Sec-
retary’s regulations, the Secretary shall, within thirty
days, take such action or order such corrective measures,
as necessary, with respect to the recipient or the aggrieved
individual, or both.
(g) REMEDIES
NOT
EXCLUSIVE.—The remedies
under this section shall not be construed to be exclusive
remedies.
SEC. 155. REPORTS, RECORDKEEPING, AND INVESTIGA-
TIONS.
(a) RECORDS.—(1) Recipients shall keep records that
are sufficient to permit the preparation of reports required
by this title and to permit the tracing of funds to a level
of expenditure adequate to ensure that the funds have not
been spent unlawfully.
136
(2) Every recipient shall maintain such records and
submit such reports, in such form and containing such in-
formation, as the Secretary requires regarding the per-
formance of its programs. Such records and reports shall
be submitted to the Secretary but shall not be required
to be submitted more than once each quarter unless spe-
cifically requested by the Congress or a committee thereof.
(3) In order to allow for the preparation of national
estimates necessary to meet the requirements of sub-
section (c), recipients shall maintain standardized records
for all individual participants and provide to the Secretary
a sufficient number of such records to provide for an ade-
quate analysis.
(4)(A) Except as provided in subparagraph (B),
records maintained by recipients pursuant to this sub-
section shall be made available to the public upon request.
(B) Subparagraph (A) shall not apply to—
(i) information, the disclosure of which would
constitute a clearly unwarranted invasion of personal
privacy; and
(ii) trade secrets, or commercial or financial in-
formation, obtained from a person and privileged or
confidential.
137
(C) Recipients may charge fees sufficient to recover
costs applicable to the processing of requests for records
under subparagraph (A).
(b) INVESTIGATIONS.—(1)(A) In order to evaluate
compliance with the provisions of this title, the Secretary
shall conduct, in several States, in each fiscal year, inves-
tigations of the use of funds received by recipients under
this title.
(B) In order to ensure compliance with the provisions
of this title, the Comptroller General of the United States
may conduct investigations of the use of funds received
under this title by any recipient.
(2) In conducting any investigation under this title,
the Secretary or the Comptroller General of the United
States may not request the compilation of any new infor-
mation not readily available to such recipient.
(3)(A) In carrying out any audit under this title
(other than any initial audit survey or any audit inves-
tigating possible criminal or fraudulent conduct), either
directly or through grant or contract, the Secretary, the
Inspector General, or the Comptroller General of the Unit-
ed States shall furnish to the State, substate grantee, re-
cipient, or other entity to be audited, advance notification
of the overall objectives and purposes of the audit, and
any extensive recordkeeping or data requirements to be
138
met, not fewer than 14 days (or as soon as practicable),
prior to the commencement of the audit.
(B) If the scope, objectives, or purposes of the audit
change substantially during the course of the audit, the
entity being audited shall be notified of the change as soon
as practicable.
(C) The reports on the results of such audits shall
cite the law, regulation, policy, or other criteria applicable
to any finding.
(D) Nothing contained in this title shall be construed
so as to be inconsistent with the Inspector General Act
of 1978 (5 U.S.C. App.) or government auditing standards
issued by the Comptroller General.
(c) RESPONSIBILITIES OF FUND RECIPIENTS.—Each
State, substate grantee, and recipient (other than a sub-
recipient, grantee or contractor of a recipient) receiving
funds under this title shall—
(1) make readily accessible reports concerning
its operations and expenditures as shall be pre-
scribed by the Secretary;
(2) prescribe and maintain comparable manage-
ment information systems, in accordance with guide-
lines that shall be prescribed by the Secretary, de-
signed to facilitate the uniform compilation, cross
tabulation, and analysis of programmatic, partici-
139
pant, and financial data, on statewide and substate
area bases, necessary for reporting, monitoring, and
evaluating purposes, including data necessary to
comply with section 157; and
(3) monitor the performance of service provid-
ers in complying with the terms of grants, contracts,
or other agreements made pursuant to this Act.
(d) RETENTION OF RECORDS.—The Governor shall
ensure that requirements are established for retention of
all records pertinent to all grants awarded, and contracts
and agreements entered into, under this title, including
financial, statistical, property and participant records and
supporting documentation. For funds allotted to a State
for any program year, records shall be retained for 2 years
following the date on which the annual expenditure report
containing the final expenditures charged to such program
year’s allotment is submitted to the Secretary. Records for
nonexpendable property shall be retained for a period of
3 years after final disposition of the property. All such
records may be retained electronically.
(e) FINANCIAL RECORDS.—Each State and substate
grantee shall maintain records with respect to programs
under this title that identify—
140
(1) any program income or profits earned, in-
cluding 
such 
income 
or 
profits 
earned 
by
subrecipients; and
(2) any costs incurred (such as stand-in costs)
that are otherwise allowable except for funding limi-
tations.
SEC. 156. ADMINISTRATIVE ADJUDICATION.
(a) IN GENERAL.—Whenever any applicant for finan-
cial assistance under this title is dissatisfied because the
Secretary has made a determination not to award financial
assistance in whole or in part to such applicant, the appli-
cant may request a hearing before an administrative law
judge of the Department of Labor. A similar hearing may
also be requested by any recipient upon whom a corrective
action or a sanction has been imposed by the Secretary.
Except to the extent provided for in section 141(b), sub-
sections (d) and (e) of section 144, or section 157, all
other disputes arising under this title shall be adjudicated
under grievance procedures established by the recipient or
under applicable law other than this title.
(b) FINAL DECISIONS.—The decision of the adminis-
trative law judge shall constitute final action by the Sec-
retary unless, within 20 days after receipt of the decision
of the administrative law judge, a party dissatisfied with
the decision or any part thereof has filed exceptions with
141
the Secretary specifically identifying the procedure, fact,
law, or policy to which exception is taken. Any exception
not specifically urged shall be deemed to have been waived.
Thereafter the decision of the administrative law judge
shall become the final decision of the Secretary unless the
Secretary, within 30 days of such filing, has notified the
parties that the case has been accepted for review.
(c) DEADLINE FOR REVIEW.—Any case accepted for
review by the Secretary shall be decided within 180 days
of such acceptance. If not so decided, the decision of the
administrative law judge shall become the final decision
of the Secretary.
(d) APPLICABLE PROVISIONS.—The provisions of
section 158 shall apply to any final action of the Secretary
under this section.
SEC. 157. NONDISCRIMINATION.
(a) IN GENERAL.—(1) For the purpose of applying
the prohibitions against discrimination on the basis of age
under the Age Discrimination Act of 1975, on the basis
of disability under section 504 of the Rehabilitation Act,
on the basis of sex under title IX of the Education Amend-
ments of 1972, or on the basis of race, color, or national
origin under title VI of the Civil Rights Act of 1964, pro-
grams and activities funded or otherwise financially as-
sisted in whole or in part under this title are considered
142
to be programs and activities receiving Federal financial
assistance.
(2) No individual shall be excluded from participation
in, denied the benefits of, subjected to discrimination
under, or denied employment in the administration of or
in connection with any such program because of race,
color, religion, sex, national origin, age, political affiliation
or belief, or status as a qualified individual with disabil-
ities.
(3) Participants shall not be employed on the con-
struction, operation, or maintenance of so much of any
facility as is used or to be used for sectarian instruction
or as a place for religious worship.
(4) With respect to terms and conditions affecting,
or rights provided to, individuals who are participants in
activities supported by funds provided under this title,
such individuals shall not be discriminated against solely
because of their status as such participants.
(5) Participation in programs and activities finan-
cially assisted in whole or in part under this title shall
be open to citizens and nationals of the United States,
lawfully admitted permanent resident aliens, lawfully ad-
mitted refugees and parolees, and other individuals au-
thorized by the Attorney General to work in the United
States.
143
(b) FAILURE TO COMPLY.—Whenever the Secretary
finds that a State or other recipient has failed to comply
with a provision of law referred to in subsection (a)(1),
with paragraph (2), (3), (4), or (5) of subsection (a), or
with an applicable regulation prescribed to carry out such
paragraphs, the Secretary shall notify such State or recipi-
ent and shall request it to comply with such provision of
law or such paragraph, as the case may be. If within a
reasonable period of time, not to exceed sixty days, the
State or recipient fails or refuses to comply, the Secretary
may—
(1) refer the matter to the Attorney General
with a recommendation that an appropriate civil ac-
tion be instituted;
(2) exercise the powers and functions provided
by title VI of the Civil Rights Act of 1964, the Age
Discrimination Act of 1975, or section 504 of the
Rehabilitation Act of 1973, as may be applicable; or
(3) take such other action as may be provided
by law.
(c) REFERRAL TO ATTORNEY GENERAL.—When a
matter is referred to the Attorney General pursuant to
subsection (b)(1), or whenever the Attorney General has
reason to believe that a State or other recipient is engaged
in a pattern or practice in violation of a provision of law
144
referred to in subsection (a)(1) or in violation of para-
graph (2), (3), (4), or (5) of subsection (a), the Attorney
General may bring a civil action in any appropriate district
court of the United States for such relief as may be appro-
priate, including injunctive relief.
SEC. 158. JUDICIAL REVIEW.
(a) IN GENERAL.—(1) With respect to any final
order by the Secretary under section 156 whereby the Sec-
retary determines to award, to not award, or to only condi-
tionally award, financial assistance, with respect to any
final order of the Secretary under section 156, with re-
spect to a corrective action or sanction imposed under sec-
tion 154, any party to a proceeding which resulted in such
final order may obtain review of such final order in the
United States Court of Appeals having jurisdiction over
the applicant or recipient of funds, by filing a review peti-
tion within 30 days of such final order.
(2) The clerk of the court shall transmit a copy of
the review petition to the Secretary, who shall file the
record upon which the final order was entered as provided
in section 2112 of title 28, United States Code. Review
petitions, unless ordered by the court, shall not stay the
Secretary’s order. Petitions under this title shall be heard
expeditiously, if possible within ten days of the filing of
a reply brief.
145
(3) No objection to the order of the Secretary shall
be considered by the court unless the objection shall have
been specifically and timely urged before the Secretary.
Review shall be limited to questions of law and the Sec-
retary’s findings of fact shall be conclusive if supported
by substantial evidence.
(b) JURISDICTION OF THE COURT.—The court shall
have jurisdiction to make and enter a decree affirming,
modifying, or setting aside the order of the Secretary in
whole or in part. The court’s judgment shall be final, sub-
ject to certiorari review by the Supreme Court of the
United States as provided in section 1254(1) of title 28,
United States Code.
SEC. 159. ADMINISTRATIVE PROVISIONS.
(a) RULES AND REGULATIONS.—The Secretary may,
in accordance with chapter 5 of title 5, United States
Code, prescribe such rules and regulations (including per-
formance standards) as the Secretary deems necessary.
Such rules and regulations may include adjustments au-
thorized by section 204 of the Intergovernmental Coopera-
tion Act of 1968. All such rules and regulations shall be
published in the Federal Register at least thirty days prior
to their effective date. Copies of all such rules and regula-
tions shall be transmitted to the appropriate committees
of the Congress at the same time and shall contain, with
146
respect to each material provision of such rules and regu-
lations, citations to the particular substantive section of
law which is the basis therefor.
(b) GIFTS.—The Secretary is authorized, in carrying
out this title, to accept, purchase, or lease in the name
of the department, and employ or dispose of in furtherance
of the purposes of this title, any money or property, real,
personal, or mixed, tangible or intangible, received by gift,
devise, bequest, or otherwise, and to accept voluntary and
uncompensated services notwithstanding the provisions of
section 1342 of title 31, United States Code.
(c) AUTHORITY TO EXPEND FUNDS.—The Secretary
may make such grants, contracts, or agreements, establish
such procedures and make such payments, in installments
and in advance or by way of reimbursement, or otherwise
allocate or expend funds under this title as necessary to
carry out this title, including (without regard to the provi-
sions of section 4774(d) of title 10, United States Code)
expenditures for construction, repairs, and capital im-
provements, and including necessary adjustments in pay-
ments on account of overpayments of underpayments.
(d) USE OF SERVICES AND FACILITIES.—The Sec-
retary is authorized, in carrying out this title, under the
same conditions applicable under section 159(c) or to the
extent permitted by law other than this title, to accept
147
and use the services and facilities of departments, agen-
cies, and establishments of the United States. The Sec-
retary is also authorized to accept and use the services
and facilities of the agencies of any State or political sub-
division of a State, with its consent.
(e) POLITICAL ACTIVITIES.—The Secretary shall not
provide financial assistance for any program under this
title which involves political activities.
SEC. 160. OBLIGATIONAL AUTHORITY.
Notwithstanding any other provision of this title, no
authority to enter into contracts or financial assistance
agreements under this title shall be effective except to
such extent or in such amount as are provided in advance
in appropriation Acts.
Subtitle F—Consolidation
Provisions
SEC. 171. REPEALERS.
The following provisions of law are hereby repealed:
(1) Title III of the Job Training Partnership
Act (29 U.S.C. 1651 et seq.).
(2) Section 462(e) of such Act (29 U.S.C.
1752(e)).
(2) Part J of title IV of such Act (29 U.S.C.
1784 et seq.).
148
SEC. 172. CONFORMING AMENDMENTS.
(a) JOB TRAINING PARTNERSHIP ACT.—
(1) TABLE OF CONTENTS.—The table of con-
tents of the Job Training Partnership Act (29
U.S.C. 1501 note) is amended—
(A) by striking the items relating to title
III; and
(B) by striking the items relating to part
J of title IV.
(2) AUTHORIZATION
OF
APPROPRIATIONS.—
Section 3 of such Act (29 U.S.C. 1502) is amend-
ed—
(A) by striking subsection (b); and
(B) by striking paragraph (5) of sub-
section (c).
(3) OTHER REFERENCES.—
(A) Section 106 of such Act (29 U.S.C.
1516) is amended—
(i) by striking subsection (c); and
(ii) in the first sentence of subsection
(e)—
(I) by striking ‘‘and title III’’;
and
(II) by striking ‘‘subsections (b)
and (c)’’ and inserting ‘‘subsection
(b)’’.
149
(B) Section 108 of such Act (29 U.S.C.
1518) is amended by striking subsection (c) of
such section.
(C) Section 121 of such Act (29 U.S.C.
1531) is amended—
(i) in the first sentence of subsection
(b)(1), by striking ‘‘(including title III)’’;
and
(ii) by striking subsection (c)(7).
(D) Section 123(d)(2)(C) of such Act (29
U.S.C. 1533(d)(2)(C)) is amended in the sec-
ond sentence by striking ‘‘to title III partici-
pants and’’.
(E) Section 141(c) of such Act (29 U.S.C.
1551(c)) is amended by striking paragraph (5).
(b) OTHER PROVISIONS OF LAW.—
(1) CARL
D. PERKINS
VOCATIONAL
AND
AP-
PLIED TECHNOLOGY EDUCATION ACT.—
(A) Section 420A(a)(6)(D) of the Carl D.
Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2420a(a)(6)(D)) is
amended by striking ‘‘title III of the Job Train-
ing Partnership Act’’ and inserting ‘‘title I of
the Reemployment Act of 1994’’.
150
(B) Section 511(b) of such Act (20 U.S.C.
2468(b)) is amended—
(i) in paragraph (1), by striking ‘‘,
title II, and title III’’ and inserting ‘‘and
title II’’;
(ii) by redesignating paragraph (2) as
paragraph (3); and
(iii) by inserting after paragraph (2)
the following new paragraph:
‘‘(2) Title I of the Reemployment Act of
1994.’’.
(2) TITLE 5, U.S.C.—Section 3502(d)(3)(A) of
title 5, United States Code, is amended by striking
‘‘section 311(b)(2) of the Job Training Partnership
Act’’ and inserting ‘‘section 112 of the Reemploy-
ment Act of 1994’’.
(3) TITLE 18, U.S.C.—Section 665 of title 18,
United States Code, is amended by striking ‘‘or the
Job Training Partnership Act’’ each place it appears
and inserting ‘‘, the Job Training Partnership Act,
or title I of the Reemployment Act of 1994.’’
(4) TRADE ACT OF 1974.—
(A) Section 236(a)(5) of the Trade Act of
1974 (19 U.S.C. 2296(a)(5)) is amended by
striking subparagraph (B).
151
(B) Section 239(e) of such Act (19 U.S.C.
2311(e)) is amended in the first sentence by
striking ‘‘and under title III of the Job Train-
ing Partnership Act’’.
(5) WORKER
ADJUSTMENT
AND
RETRAINING
NOTIFICATION ACT.—Section 3(a) of the Worker Ad-
justment and Retraining Notification Act (29 U.S.C.
2102(a)) is amended by striking ‘‘title III of the Job
Training Partnership Act (29 U.S.C. 1651 et seq.)’’
and inserting ‘‘title I of the Reemployment Act of
1994’’.
SEC. 173. TRANSITION.
The Secretary may establish such rules and proce-
dures as may be necessary to provide for the orderly tran-
sition from the programs under the provisions of law de-
scribed in section 171 to the program authorized under
this title.
TITLE 
II—ONE-STOP 
CAREER
SYSTEM FOR EMPLOYMENT
AND TRAINING
SEC. 201. PURPOSE.
The purpose of this title is to establish a Federal pro-
gram of grants and waivers to allow States and localities
the opportunity to transform the current array of employ-
ment and training programs into a coordinated informa-
152
tion and service delivery system for individuals seeking
jobs and for employers seeking workers.
Subtitle A—Basic System
Components
SEC. 211. GENERAL REQUIREMENTS.
A one-stop career system under this title shall provide
for—
(1) integration of employment and training pro-
grams in accordance with section 212;
(2) choice of information, services, and provid-
ers of such information and services for customers
in such system in accordance with section 213;
(3) universal access to services by customers,
including individuals and employers, in accordance
with section 214; and
(4) accountability of the providers of such infor-
mation and services in accordance with section 215.
SEC. 212. INTEGRATION OF EMPLOYMENT AND TRAINING
PROGRAMS COMPONENT.
The integration of employment and training pro-
grams component of a one-stop career system shall include
the coordinated use of multiple employment and training
resources, program services, and delivery systems of the
programs described in section 242. Such component—
(1) shall include the use of—
153
(A) common intake methodology;
(B) coordinated job development and
placement for multiple programs; and
(C) unified and linked computer systems,
including uniform management information sys-
tems; and
(2) shall include the use of at least 2 of the fol-
lowing:
(A) Common assessment methodology.
(B) Cross-training of staff for joint service
delivery.
(C) Coordinated employability development
teams.
(D) Joint purchasing and integrated con-
tracting.
(E) Individual service accounts.
SEC. 213. CUSTOMER CHOICE COMPONENT.
The customer choice component of a one-stop career
system shall ensure that individuals are provided with suf-
ficient information to make an informed choice with re-
spect to the types of information and services available
under such system, the providers of such information and
services, and the location and methods for obtaining such
information and services. Such component shall include a
choice with respect to—
154
(1) the point of entry, to the extent practicable,
of such individuals into the system for the provision
of basic services described in section 243(a);
(2) the types of intensive services provided to
such individuals in accordance with section 243(b);
and
(3) the providers of education and training
services for individuals eligible for such services, to
the extent practicable, in accordance with section
243.
SEC. 214. UNIVERSAL ACCESS COMPONENT.
The universal access component of a one-stop career
system shall provide for access to a comprehensive array
of quality employment, education, and training services by
individuals and employers. Such component shall in-
clude—
(1)(A) co-location of services; or
(B) multiple points of entry into the system;
and
(2) the use of at least 2 of the following:
(A) Telecommunications and computer
technology, including the use of electronic
mailboards and toll-free telephone services.
155
(B) Information booths in public areas, in-
cluding the stationing of staff at such booths
and the use of electronic information kiosks.
(C) Mobile units and satellite offices.
(D) Services described in subparagraph
(A) or (B) of paragraph (1) that have not been
included in such component under such para-
graph.
SEC. 215. ACCOUNTABILITY COMPONENT.
The accountability component of a one-stop career
system shall provide for accountability of the providers of
information and services to the satisfaction of individuals
receiving such information and services. Such component
shall provide for accountability with respect to the attain-
ment of positive employment and training outcomes by
such individuals, including attainment of such outcomes
by individuals from various demographic groups and spe-
cial populations. Such component shall include the use
of—
(1) measures for assessing performance and the
consequences for poor performance of providers of
information and services;
(2) methods to measure the satisfaction of indi-
viduals receiving such information and services, in-
cluding surveys and focus groups; and
156
(3) consumer reports on achievement of per-
formance standards and best practices, which may
include information relating to—
(A) the types of services to be provided, in-
cluding the duration of such services and the lo-
cation at which such services will be provided;
(B) the number of individuals who have re-
ceived such services during the preceding 12-
month period; and
(C) the results of the receipt by individuals
of such services.
Subtitle B—Grants to States
SEC. 221. PURPOSE.
The purpose of this subtitle is to assist States in the
implementation of comprehensive statewide networks of
one-stop career systems in all areas of such States.
SEC. 222. AUTHORIZATION.
(a) GRANTS TO STATES.—The Secretary may provide
grants to States in such amounts as the Secretary deter-
mines to be necessary to enable such States to implement
comprehensive statewide networks of one-stop career sys-
tems in all areas of such States.
(b) GRANTS TO NATIVE AMERICAN TRIBAL ENTI-
TIES.—
157
(1) IN GENERAL.—The Secretary may provide
grants to Native American tribal entities in such
amounts as the Secretary determines to be necessary
to enable such entities to implement one-stop career
systems for such entities.
(2) 
REQUIREMENTS.—In 
providing 
grants
under paragraph (1), the Secretary shall require Na-
tive American tribal entities to comply with require-
ments similar to those requirements imposed on
States under this subtitle, except where special cir-
cumstances exist which would make such require-
ments inappropriate to the accomplishment of the
purposes of this title, as determined by the Sec-
retary.
(c) NOTIFICATION OF INTERAGENCY TASK FORCE.—
The Secretary may provide a grant under this section only
if the Secretary notifies the interagency task force estab-
lished under section 264 prior to providing such grant.
(d) PERIOD OF GRANT.—The provision of payments
under a grant under subsection (a) shall not exceed 3 fis-
cal years and shall be subject to the annual approval of
the Secretary and subject to the availability of appropria-
tions for the fiscal year involved to make the payments.
(e) LIMITATION.—A State shall be eligible to receive
only 1 grant under subsection (a).
158
SEC. 223. APPLICATION.
(a) IN GENERAL.—
(1) SUBMISSION.—Subject to paragraph (2),
the Secretary may not provide a grant under section
222 to a State unless the Governor of the State, on
behalf of the State, submits to the Secretary an ap-
plication, at such time, in such form, and containing
such information as the Secretary may reasonably
require.
(2) REVIEW AND COMMENT BY CERTAIN INDI-
VIDUALS.—If, after a reasonable effort, the Gov-
ernor is unable in accordance with subsection (c)(4)
to obtain the support of the individuals described in
subsection (b)(5) for the State plan described in
subsection (c), then the Governor shall—
(A) provide such individuals with copies of
the application;
(B) allow such individuals to submit to the
Governor, not later than the end of the 30-day
period beginning on the date on which the Gov-
ernor provides such individuals with copies of
such application under subparagraph (A), com-
ments on those portions of the plan that ad-
dress matters that, under State or other appli-
cable law, are under the jurisdiction of such in-
dividuals; and
159
(C) include any such comments in the ap-
plication in accordance with subsection (b)(5).
(3) REVIEW AND COMMENT BY CERTAIN ENTI-
TIES.—Prior to submitting to the Secretary an ap-
plication under paragraph (1), the Governor shall
provide interested employers, labor organizations,
community-based organizations, and educational and
other public agencies with copies of such application,
allow such entities to submit comments on such ap-
plication in accordance with paragraph (2)(B), and
include such comments in the application.
(b) CONTENTS.—Such application shall include—
(1) a plan for a comprehensive statewide net-
work of one-stop career systems that meets the re-
quirements of subsection (c);
(2) assurances that the State will update such
plan during the period of the grant, as determined
to be necessary by the Secretary;
(3) a description of the manner in which the
State will manage funds received from such grant,
including the manner in which the State will allocate
funds made available through such grant to all one-
stop service areas in the State;
(4) a request, if the State decides to submit
such a request, for a waiver of 1 or more require-
194
of individual one-stop service providers, and to share
such information with customers of such programs.
SEC. 248. POOLING OF ADMINISTRATIVE RESOURCES.
(a) SUBMISSION OF PLAN.—
(1) IN GENERAL.—At any point in the imple-
mentation of a comprehensive statewide network of
one-stop career systems, a State may, on behalf of
1 or more one-stop service areas in the State, submit
to the Secretary a plan for the pooling of adminis-
trative funds available to such areas under 2 or
more of the programs described in paragraphs (1)
through (6) of section 242.
(2) COMPONENTS OF POOLING.—Under a plan
submitted pursuant to paragraph (1), each partici-
pating program described in paragraphs (1) through
(6) of section 242 may propose to transfer adminis-
trative funds to the one-stop career system and to
allocate the amount transferred to the costs of ad-
ministration under such program at the time of such
transfer. Pursuant to such plan, further allocation of
the expenditure of such funds to the participating
program shall not be required subsequent to the
transfer of the funds to the one-stop career center
system. Administrative funds that are transferred
under such plan shall only be expended for the costs