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(2) DRUG TESTS.—Each local entity carrying
out workforce employment activities described in sub-
paragraph (A), (B), (C), (D), (E), (G), (H), (J), or
(K) of subsection (a)(6) shall administer a drug
test—
(A) on a random basis, to individuals who
apply to participate in such activities; and
(B) to a participant in such activities, on
reasonable suspicion of drug use by the partici-
pant.
(3) ELIGIBILITY OF APPLICANTS.—In order for
such an applicant to be eligible to participate in
workforce employment activities, the applicant shall
agree to submit to a drug test administered as de-
scribed in paragraph (2) and, if the test is adminis-
tered to the applicant, shall pass the test.
(4) ELIGIBILITY OF PARTICIPANTS.—In order for
such a participant to be eligible to participate in
workforce employment activities described in subpara-
graph (A), (B), (C), (D), (E), (G), (H), (J), or (K)
of subsection (a)(6), the individual shall agree to sub-
mit to a drug test administered as described in para-
graph (2) and, if the test is administered to the par-
ticipant, shall pass the test. If a participant refuses
to submit to the drug test, or fails the drug test, the
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local entity shall dismiss the participant from par-
ticipation in the activities.
(5) REAPPLICATION.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), an individual who is an ap-
plicant and is disqualified from eligibility under
paragraph (3), or who is a participant and is
dismissed under paragraph (4), may reapply,
not earlier than 6 months after the date of the
disqualification or dismissal, to participate in
the workforce employment activities described in
subparagraph (A), (B), (C), (D), (E), (G), (H),
(J), or (K) of subsection (a)(6). If the individual
demonstrates that the individual has completed a
drug treatment program and passed a drug test
within the past 30 days, the individual may
participate in such activities, under the same
terms and conditions as apply to other appli-
cants and participants, including submission to
drug tests administered as described in para-
graph (2).
(B) SECOND DISQUALIFICATION OR DISMIS-
SAL.—If the individual reapplies to participate
in the activities and fails a drug test adminis-
tered under paragraph (2) by the local entity,
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SEC. 107. INDIAN WORKFORCE DEVELOPMENT ACTIVITIES.
(a) PURPOSE.—
(1) IN GENERAL.—The purpose of this section is
to support workforce development activities for Indian
and Native Hawaiian individuals in order—
(A) to develop more fully the academic, oc-
cupational, and literacy skills of such individ-
uals;
(B) to make such individuals more competi-
tive in the workforce; and
(C) to promote the economic and social de-
velopment of Indian and Native Hawaiian com-
munities in accordance with the goals and values
of such communities.
(2) INDIAN
POLICY.—All programs assisted
under this section shall be administered in a manner
consistent with the principles of the Indian Self-De-
termination and Education Assistance Act (25 U.S.C.
450 et seq.) and the government-to-government rela-
tionship between the Federal Government and Indian
tribal governments.
(b) DEFINITIONS.—As used in this section:
(1) ALASKA NATIVE.—The term ‘‘Alaska Native’’
means a Native as such term is defined in section
3(b) of the Alaska Native Claims Settlement Act (43
U.S.C. 1602(b)).
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(2) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANI-
ZATION.—The terms ‘‘Indian’’, ‘‘Indian tribe’’, and
‘‘tribal organization’’ have the same meanings given
such terms in subsections (d), (e), and (l), respec-
tively, of section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
(3) INSTITUTION OF HIGHER EDUCATION.—The
term ‘‘institution of higher education’’ has the mean-
ing given the term in section 1201(a) of the Higher
Education Act of 1965 (20 U.S.C. 1141(a)).
(4) NATIVE HAWAIIAN AND NATIVE HAWAIIAN OR-
GANIZATION.—The terms ‘‘Native Hawaiian’’ and
‘‘Native Hawaiian organization’’ have the same
meanings given such terms in paragraphs (1) and
(3), respectively, of section 9212 of the Native Hawai-
ian Education Act (20 U.S.C. 7912).
(5) TRIBALLY
CONTROLLED
COMMUNITY
COL-
LEGE.—The term ‘‘tribally controlled community col-
lege’’ has the same meaning given such term in sec-
tion 2(a)(4) of the Tribally Controlled Community
College Assistance Act of 1978 (25 U.S.C. 1801(a)(4)).
(6) TRIBALLY CONTROLLED POSTSECONDARY VO-
CATIONAL
INSTITUTION.—The term ‘‘tribally con-
trolled postsecondary vocational institution’’ means
an institution of higher education that—
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(A) is formally controlled, or has been for-
mally sanctioned or chartered, by the governing
body of an Indian tribe or Indian tribes;
(B) offers a technical degree or certificate
granting program;
(C) is governed by a board of directors or
trustees, a majority of whom are Indians;
(D) demonstrates adherence to stated goals,
a philosophy, or a plan of operation, that fosters
individual Indian economic and self-sufficiency
opportunity, including programs that are appro-
priate to stated tribal goals of developing indi-
vidual entrepreneurships and self-sustaining eco-
nomic infrastructures on reservations;
(E) has been in operation for at least 3
years;
(F) holds accreditation with or is a can-
didate for accreditation by a nationally recog-
nized accrediting authority for postsecondary vo-
cational education; and
(G) enrolls the full-time equivalent of not
fewer than 100 students, of whom a majority are
Indians.
(c) PROGRAM AUTHORIZED.—
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(1) ASSISTANCE AUTHORIZED.—From amounts
made available under section 124(b)(2), the Secretary
of Labor and the Secretary of Education, acting
jointly on the advice of the Federal Partnership, shall
make grants to, or enter into contracts or cooperative
agreements with, Indian tribes, tribal organizations,
Alaska Native entities, tribally controlled community
colleges, tribally controlled postsecondary vocational
institutions, Indian-controlled organizations serving
Indians, or Native Hawaiian organizations to carry
out the authorized activities described in subsection
(d).
(2) FORMULA.—The Secretary of Labor and the
Secretary of Education, acting jointly on the advice
of the Federal Partnership, shall make grants to, or
enter into contracts and cooperative agreements with,
entities as described in paragraph (1) to carry out the
activities described in paragraphs (2) and (3) of sub-
section (d) on the basis of a formula developed by the
Federal Partnership in consultation with entities de-
scribed in paragraph (1).
(d) AUTHORIZED ACTIVITIES.—
(1) IN GENERAL.—Funds made available under
this section shall be used to carry out the activities
described in paragraphs (2) and (3) that—
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(A) are consistent with this section; and
(B) are necessary to meet the needs of Indi-
ans or Native Hawaiians preparing to enter, re-
enter, or retain unsubsidized employment.
(2) WORKFORCE DEVELOPMENT ACTIVITIES AND
SUPPLEMENTAL SERVICES.—
(A) IN
GENERAL.—Funds made available
under this section shall be used for—
(i) comprehensive workforce develop-
ment activities for Indians or Native Ha-
waiians;
(ii) supplemental services for Indian or
Native Hawaiian youth on or near Indian
reservations in Oklahoma, Alaska, or Ha-
waii; or
(iii) supplemental services for recipi-
ents of public assistance on or near Indian
reservations or former reservation areas in
Oklahoma or in Alaska.
(B) SPECIAL RULE.—Notwithstanding any
other provision of this section, individuals who
were eligible to participate in programs under
section 401 of the Job Training Partnership Act
(29 U.S.C. 1671) (as such section was in effect
on the day before the date of enactment of this
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Act) shall be eligible to participate in an activ-
ity assisted under subparagraph (A)(i).
(3) VOCATIONAL EDUCATION, ADULT EDUCATION,
AND
LITERACY
SERVICES.—Funds made available
under this section shall be used for—
(A) workforce education activities conducted
by entities described in subsection (c)(1); or
(B) the support of tribally controlled post-
secondary vocational institutions in order to en-
sure continuing and expanded educational op-
portunities for Indian students.
(e) PROGRAM PLAN.—In order to receive a grant or
enter into a contract or cooperative agreement under this
section an entity described in subsection (c)(1) shall submit
to the Federal Partnership a plan that describes a 3-year
strategy for meeting the needs of Indian or Native Hawai-
ian individuals, as appropriate, in the area served by such
entity. Such plan shall—
(1) be consistent with the purposes of this sec-
tion;
(2) identify the population to be served;
(3) identify the education and employment needs
of the population to be served and the manner in
which the services to be provided will strengthen the
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ability of the individuals served to obtain or retain
unsubsidized employment;
(4) describe the services to be provided and the
manner in which such services are to be integrated
with other appropriate services; and
(5) describe the goals and benchmarks to be used
to assess the performance of entities in carrying out
the activities assisted under this section.
(f) FURTHER CONSOLIDATION OF FUNDS.—Each en-
tity receiving assistance under this section may consolidate
such assistance with assistance received from related pro-
grams in accordance with the provisions of the Indian Em-
ployment, Training and Related Services Demonstration
Act of 1992 (25 U.S.C. 3401 et seq.).
(g) NONDUPLICATIVE
AND
NONEXCLUSIVE
SERV-
ICES.—Nothing in this section shall be construed—
(1) to limit the eligibility of any entity described
in subsection (c)(1) to participate in any program of-
fered by a State or local entity under this title; or
(2) to preclude or discourage any agreement, be-
tween any entity described in subsection (c)(1) and
any State or local entity, to facilitate the provision
of services by such entity or to the population served
by such entity.
(h) PARTNERSHIP PROVISIONS.—
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SEC. 108. MIGRANT OR SEASONAL FARMWORKER PROGRAM.
(a) GENERAL AUTHORITY.—Using funds made avail-
able under section 124(b)(3), the Secretary of Labor and
the Secretary of Education, acting jointly on the advice of
the Federal Partnership, shall make grants to, or enter into
contracts with, entities to carry out the activities described
in subsection (d).
(b) ELIGIBLE ENTITIES.—To be eligible to receive a
grant or enter into a contract under this section, an entity
shall have an understanding of the problems of migrant or
seasonal farmworkers, a familiarity with the area to be
served, and a previously demonstrated capacity to admin-
ister effectively a diversified program of workforce develop-
ment activities for migrant or seasonal farmworkers.
(c) PROGRAM PLAN.—
(1) IN
GENERAL.—To be eligible to receive a
grant or enter into a contract under this section, an
entity described in subsection (b) shall submit to the
Federal Partnership a plan that describes a 3-year
strategy for meeting the needs of migrant or seasonal
farmworkers in the area to be served by such entity.
(2) CONTENTS.—Such plan shall—
(A) identify the education and employment
needs of the population to be served and the
manner in which the services to be provided will
strengthen the ability of the individuals served to
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obtain or be retained in unsubsidized employ-
ment;
(B) describe the services to be provided and
the manner in which such services are to be inte-
grated with other appropriate services; and
(C) describe the goals and benchmarks to be
used to assess the performance of such entity in
carrying out the activities assisted under this
section.
(d) AUTHORIZED ACTIVITIES.—Funds made available
under this section shall be used to carry out comprehensive
workforce development activities, and related services, for
migrant or seasonal farmworkers.
(e) CONSULTATION WITH STATE AND LOCAL PARTNER-
SHIPS AND BOARDS.—In making grants and entering into
contracts under this section, the Federal Partnership shall
consult with the Governors (or, where established, the State
workforce development boards described in section 105) and
with local partnerships (or, where established, the local
workforce development boards described in section 118(b)).
SEC. 109. GRANTS TO OUTLYING AREAS.
(a) GENERAL AUTHORITY.—Using funds made avail-
able under section 124(b)(4), the Secretary of Labor and
the Secretary of Education, acting jointly on the advice of
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the Federal Partnership, shall make grants to outlying
areas to carry out workforce development activities.
(b) APPLICATION.—The Federal Partnership shall
issue regulations specifying the provisions of this subtitle
that shall apply to outlying areas that receive funds under
this subtitle.
CHAPTER 2—LOCAL PROVISIONS
SEC. 111. LOCAL APPORTIONMENT BY ACTIVITY.
(a) WORKFORCE EMPLOYMENT ACTIVITIES.—
(1) IN GENERAL.—The sum of—
(A) the funds made available to a State for
any fiscal year under section 103(a)(1), less any
portion of such funds made available under sec-
tion 6 of the Wagner-Peyser Act (29 U.S.C. 49e);
and
(B) the funds made available to a State for
any fiscal year under section 103(a)(3) for
workforce employment activities;
shall be made available to the Governor of such State
for use in accordance with paragraph (2).
(2) DISTRIBUTION.—Of the sum described in
paragraph (1), for a program year—
(A) 25 percent shall be reserved by the Gov-
ernor to carry out workforce employment activi-
ties through the statewide system, of which not
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more than 20 percent of such 25 percent may be
used for administrative expenses; and
(B) 75 percent shall be distributed by the
Governor to local entities to carry out workforce
employment activities through the statewide sys-
tem, based on—
(i) such factors as the relative distribu-
tion among substate areas of individuals
who are not less than 15 and not more than
65, individuals in poverty, unemployed in-
dividuals, and adult recipients of assist-
ance, as determined using the definitions
specified and the determinations described
in section 102(b); and
(ii) such additional factors as the Gov-
ernor (in consultation with local partner-
ships or, where established, local workforce
development boards described in section
118(b)), determines to be necessary.
(b) WORKFORCE EDUCATION ACTIVITIES.—
(1) IN GENERAL.—The sum of the funds made
available to a State for any program year under
paragraphs (2) and (3) of section 103(a) for
workforce education activities shall be made available
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to the State educational agency serving such State for
use in accordance with paragraph (2).
(2) DISTRIBUTION.—Of the sum described in
paragraph (1), for a program year—
(A) 20 percent shall be reserved by the State
educational agency to carry out statewide
workforce education activities through the state-
wide system, of which not more than 5 percent
of such 20 percent may be used for administra-
tive expenses; and
(B) 80 percent shall be distributed by the
State educational agency to entities eligible for
financial assistance under section 112, 113, or
114, to carry out workforce education activities
through the statewide system.
(3) STATE ACTIVITIES.—Activities to be carried
out under paragraph (2)(A) may include professional
development, technical assistance, and program as-
sessment activities.
(4) STATE DETERMINATIONS.—From the amount
available to a State educational agency under para-
graph (2)(B) for a program year, such agency shall
determine the percentage of such amount that will be
distributed in accordance with sections 112, 113, and
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114 for such year for workforce education activities in
such State in each of the following areas:
(A) Secondary school vocational education,
or postsecondary and adult vocational education,
or both; and
(B) Adult education.
(c) SPECIAL RULE.—Nothing in this subtitle shall be
construed to prohibit any individual, entity, or agency in
a State (other than the State educational agency) that is
administering workforce education activities or setting edu-
cation policies consistent with authority under State law
for workforce education activities, on the day preceding the
date of enactment of this Act from continuing to administer
or set education policies consistent with authority under
State law for such activities under this subtitle.
SEC. 112. DISTRIBUTION FOR SECONDARY SCHOOL VOCA-
TIONAL EDUCATION.
(a) ALLOCATION.—Except as otherwise provided in
this section and section 115, each State educational agency
shall distribute the portion of the funds made available for
any program year (from funds made available for the cor-
responding fiscal year, as determined under section 124(c))
by such agency for secondary school vocational education
under section 111(b)(4)(A) to local educational agencies
within the State as follows:
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(1) SEVENTY
PERCENT.—From 70 percent of
such portion, each local educational agency shall be
allocated an amount that bears the same relationship
to such 70 percent as the amount such local edu-
cational agency was allocated under section 1124 of
the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6333) for the preceding fiscal year
bears to the total amount received under such section
by all local educational agencies in the State for such
year.
(2) TWENTY PERCENT.—From 20 percent of such
portion, each local educational agency shall be allo-
cated an amount that bears the same relationship to
such 20 percent as the number of students with dis-
abilities who have individualized education programs
under section 614(a)(5) of the Individuals with Dis-
abilities Education Act (20 U.S.C. 1414(a)(5)) served
by such local educational agency for the preceding fis-
cal year bears to the total number of such students
served by all local educational agencies in the State
for such year.
(3) TEN PERCENT.—From 10 percent of such
portion, each local educational agency shall be allo-
cated an amount that bears the same relationship to
such 10 percent as the number of students enrolled in
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schools and adults enrolled in training programs
under the jurisdiction of such local educational agen-
cy for the preceding fiscal year bears to the number
of students enrolled in schools and adults enrolled in
training programs under the jurisdiction of all local
educational agencies in the State for such year.
(b) MINIMUM ALLOCATION.—
(1) IN GENERAL.—Except as provided in para-
graph (2), no local educational agency shall receive
an allocation under subsection (a) unless the amount
allocated to such agency under subsection (a) is not
less than $15,000. A local educational agency may
enter into a consortium with other local educational
agencies for purposes of meeting the minimum alloca-
tion requirement of this paragraph.
(2) WAIVER.—The State educational agency may
waive the application of paragraph (1) in any case
in which the local educational agency—
(A) is located in a rural, sparsely populated
area; and
(B) demonstrates that such agency is unable
to enter into a consortium for purposes of pro-
viding services under this section.
(3) REDISTRIBUTION.—Any amounts that are
not allocated by reason of paragraph (1) or (2) shall
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be redistributed to local educational agencies that
meet the requirements of paragraph (1) or (2) in ac-
cordance with the provisions of this section.
(c) LIMITED JURISDICTION AGENCIES.—
(1) IN GENERAL.—In applying the provisions of
subsection (a), no State educational agency receiving
assistance under this subtitle shall allocate funds to a
local educational agency that serves only elementary
schools, but shall distribute such funds to the local
educational agency or regional educational agency
that provides secondary school services to secondary
school students in the same attendance area.
(2) SPECIAL RULE.—The amount to be allocated
under paragraph (1) to a local educational agency
that has jurisdiction only over secondary schools shall
be determined based on the number of students that
entered such secondary schools in the previous year
from the elementary schools involved.
(d) ALLOCATIONS TO AREA VOCATIONAL EDUCATION
SCHOOLS AND EDUCATIONAL SERVICE AGENCIES.—
(1) IN GENERAL.—Each State educational agen-
cy shall distribute the portion of funds made available
for any program year by such agency for secondary
school 
vocational 
education 
under 
section
111(b)(4)(A) to the appropriate area vocational edu-
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cation school or educational service agency in any
case in which—
(A) the area vocational education school or
educational service agency, and the local edu-
cational agency concerned—
(i) have formed or will form a consor-
tium for the purpose of receiving funds
under this section; or
(ii) have entered into or will enter into
a cooperative arrangement for such purpose;
and
(B)(i) the area vocational education school
or educational service agency serves an approxi-
mately equal or greater proportion of students
who are individuals with disabilities or are low-
income than the proportion of such students at-
tending the secondary schools under the jurisdic-
tion of all of the local educational agencies send-
ing students to the area vocational education
school or the educational service agency; or
(ii) the area vocational education school,
educational service agency, or local educational
agency demonstrates that the vocational edu-
cation school or educational service agency is un-
able to meet the criterion described in clause (i)
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due to the lack of interest by students described
in clause (i) in attending vocational education
programs in that area vocational education
school or educational service agency.
(2) ALLOCATION BASIS.—If an area vocational
education school or educational service agency meets
the requirements of paragraph (1), then—
(A) the amount that will otherwise be dis-
tributed to the local educational agency under
this section shall be allocated to the area voca-
tional education school, the educational service
agency, and the local educational agency, based
on each school’s or agency’s relative share of stu-
dents described in paragraph (1)(B)(i) who are
attending vocational education programs (based,
if practicable, on the average enrollment for the
prior 3 years); or
(B) such amount may be allocated on the
basis of an agreement between the local edu-
cational agency and the area vocational edu-
cation school or educational service agency.
(3) STATE DETERMINATION.—
(A) IN GENERAL.—For the purposes of this
subsection, the State educational agency may de-
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come, and are served by such local educational
agency; and
(B) transfer such allocation to the area vo-
cational education school or educational service
agency.
(e) SPECIAL RULE.—Each State educational agency
distributing funds under this section shall treat a secondary
school funded by the Bureau of Indian Affairs within the
State as if such school were a local educational agency with-
in the State for the purpose of receiving a distribution
under this section.
SEC. 113. DISTRIBUTION FOR POSTSECONDARY AND ADULT
VOCATIONAL EDUCATION.
(a) ALLOCATION.—
(1) IN GENERAL.—Except as provided in sub-
section (b) and section 115, each State educational
agency, using the portion of the funds made available
for any program year by such agency for postsecond-
ary and adult vocational education under section
111(b)(4)(A)—
(A) shall reserve funds to carry out sub-
section (d); and
(B) shall distribute the remainder to eligible
institutions or consortia of the institutions with-
in the State.
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(2) FORMULA.—Each such eligible institution or
consortium shall receive an amount for the program
year (from funds made available for the correspond-
ing fiscal year, as determined under section 124(c))
from such remainder that bears the same relationship
to such remainder as the number of individuals who
are Pell Grant recipients or recipients of assistance
from the Bureau of Indian Affairs and are enrolled
in programs offered by such institution or consortium
for the preceding fiscal year bears to the number of
all such individuals who are enrolled in any such
program within the State for such preceding year.
(3) CONSORTIUM REQUIREMENTS.—In order for
a consortium of eligible institutions described in
paragraph (1) to receive assistance pursuant to such
paragraph such consortium shall operate joint
projects that—
(A) provide services to all postsecondary in-
stitutions participating in the consortium; and
(B) are of sufficient size, scope, and quality
to be effective.
(b) WAIVER FOR MORE EQUITABLE DISTRIBUTION.—
The Federal Partnership may waive the application of sub-
section (a) in the case of any State educational agency that
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submits to the Federal Partnership an application for such
a waiver that—
(1) demonstrates that the formula described in
subsection (a) does not result in a distribution of
funds to the institutions or consortia within the State
that have the highest numbers of low-income individ-
uals and that an alternative formula will result in
such a distribution; and
(2) includes a proposal for an alternative for-
mula that may include criteria relating to the num-
ber of individuals attending the institutions or con-
sortia within the State who—
(A) receive need-based postsecondary finan-
cial aid provided from public funds;
(B) are members of families receiving as-
sistance under a State program funded under
part A of title IV of the Social Security Act;
(C) are enrolled in postsecondary edu-
cational institutions that—
(i) are funded by the State;
(ii) do not charge tuition; and
(iii) serve only low-income students;
(D) are enrolled in programs serving low-
income adults; or
(E) are Pell Grant recipients.
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(c) MINIMUM AMOUNT.—
(1) IN GENERAL.—No distribution of funds pro-
vided to any institution or consortium for a program
year under this section shall be for an amount that
is less than $50,000.
(2) REDISTRIBUTION.—Any amounts that are
not distributed by reason of paragraph (1) shall be re-
distributed to eligible institutions or consortia in ac-
cordance with the provisions of this section.
(d) SPECIAL RULE FOR CRIMINAL OFFENDERS.—Each
State educational agency shall distribute the funds reserved
under subsection (a)(1)(A) to 1 or more State corrections
agencies to enable the State corrections agencies to admin-
ister vocational education programs for juvenile and adult
criminal offenders in correctional institutions in the State,
including correctional institutions operated by local au-
thorities.
(e) DEFINITIONS.—For the purposes of this section—
(1) the term ‘‘eligible institution’’ means a post-
secondary educational institution, a local educational
agency serving adults, or an area vocational edu-
cation school serving adults that offers or will offer a
program that seeks to receive financial assistance
under this section;
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(2) the term ‘‘low-income’’, used with respect to
a person, means a person who is determined under
guidelines developed by the Federal Partnership to be
low-income, using the most recent available data pro-
vided by the Bureau of the Census, prior to the deter-
mination; and
(3) the term ‘‘Pell Grant recipient’’ means a re-
cipient of financial aid under subpart 1 of part A of
title IV of the Higher Education Act of 1965 (20
U.S.C. 1070a et seq.).
SEC. 114. DISTRIBUTION FOR ADULT EDUCATION.
(a) IN GENERAL.—Except as provided in subsection
(b)(3), from the amount made available by a State edu-
cational agency for adult education under section
111(b)(4)(B) for a program year, such agency shall award
grants, on a competitive basis, to local educational agencies,
correctional education agencies, community-based organiza-
tions of demonstrated effectiveness, volunteer literacy orga-
nizations, libraries, public or private nonprofit agencies,
postsecondary educational institutions, public housing au-
thorities, and other nonprofit institutions that have the
ability to provide literacy services to adults and families,
or consortia of agencies, organizations, or institutions de-
scribed in this subsection, to enable such agencies, organiza-
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tions, institutions, and consortia to establish or expand
adult education programs.
(b) GRANT REQUIREMENTS.—
(1) ACCESS.—Each State educational agency
making funds available for any program year for
adult education under section 111(b)(4)(B) shall en-
sure that the entities described in subsection (a) will
be provided direct and equitable access to all Federal
funds provided under this section.
(2) 
CONSIDERATIONS.—In 
awarding 
grants
under this section, the State educational agency shall
consider—
(A) the past effectiveness of applicants in
providing services (especially with respect to re-
cruitment and retention of educationally dis-
advantaged adults and the learning gains dem-
onstrated by such adults);
(B) the degree to which an applicant will
coordinate and utilize other literacy and social
services available in the community; and
(C) the commitment of the applicant to
serve individuals in the community who are
most in need of literacy services.
(3) CONSORTIA.—A State educational agency
may award a grant under subsection (a) to a consor-
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tium that includes an entity described in subsection
(a) and a for-profit agency, organization, or institu-
tion, if such agency, organization, or institution—
(A) can make a significant contribution to
carrying out the objectives of this subtitle; and
(B) enters into a contract with the entity
described in subsection (a) for the purpose of es-
tablishing or expanding adult education pro-
grams.
(c) LOCAL ADMINISTRATIVE COST LIMITS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), of the funds provided under this section by
a State educational agency to an agency, organiza-
tion, institution, or consortium described in sub-
section (a), at least 95 percent shall be expended for
provision of adult education instructional activities.
The remainder shall be used for planning, adminis-
tration, personnel development, and interagency co-
ordination.
(2) SPECIAL RULE.—In cases where the cost lim-
its described in paragraph (1) will be too restrictive
to allow for adequate planning, administration, per-
sonnel development, and interagency coordination
supported under this section, the State educational
agency shall negotiate with the agency, organization,
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institution, or consortium described in subsection (a)
in order to determine an adequate level of funds to be
used for noninstructional purposes.
SEC. 115. SPECIAL RULE FOR MINIMAL ALLOCATION.
(a) GENERAL AUTHORITY.—For any program year for
which a minimal amount is made available by a State edu-
cational agency for distribution under section 112 or 113
such agency may, notwithstanding the provisions of section
112 or 113, respectively, in order to make a more equitable
distribution of funds for programs serving the highest num-
bers of low-income individuals (as defined in section
113(e)), distribute such minimal amount—
(1) on a competitive basis; or
(2) through any alternative method determined
by the State educational agency.
(b) MINIMAL AMOUNT.—For purposes of this section,
the term ‘‘minimal amount’’ means not more than 15 per-
cent of the total amount made available by the State edu-
cational agency under section 111(b)(4)(A) for section 112
or 113, respectively, for such program year.
SEC. 116. REDISTRIBUTION.
(a) IN GENERAL.—In any program year that an en-
tity receiving financial assistance under section 112 or 113
does not expend all of the amounts distributed to such entity
for such year under section 112 or 113, respectively, such
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entity shall return any unexpended amounts to the State
educational agency for distribution under section 112 or
113, respectively. The State educational agency may waive
the requirements of the preceding sentence, on a case-by-
case basis, for good cause as determined by such agency.
(b) REDISTRIBUTION OF AMOUNTS RETURNED LATE
IN A PROGRAM YEAR.—In any program year in which
amounts are returned to the State educational agency under
subsection (a) for programs described in section 112 or 113
and the State educational agency is unable to redistribute
such amounts according to section 112 or 113, respectively,
in time for such amounts to be expended in such program
year, the State educational agency shall retain such
amounts for distribution in combination with amounts pro-
vided under such section for the following program year.
SEC. 117. LOCAL APPLICATION FOR WORKFORCE EDU-
CATION ACTIVITIES.
(a) IN GENERAL.—
(1) IN GENERAL.—Each eligible entity desiring
financial assistance under this subtitle for workforce
education activities shall submit an application to the
State educational agency at such time, in such man-
ner and accompanied by such information as such
agency (in consultation with such other educational
entities as the State educational agency determines to
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be appropriate) may require. Such application shall
cover the same period of time as the period of time
applicable to the State workforce development plan.
(2) DEFINITION.—For the purpose of this section
the term ‘‘eligible entity’’ means an entity eligible for
financial assistance under section 112, 113, or 114
from a State educational agency.
(b) CONTENTS.—Each application described in sub-
section (a) shall, at a minimum—
(1) describe how the workforce education activi-
ties required under section 106(b), and other
workforce education activities, will be carried out
with funds received under this subtitle;
(2) describe how the activities to be carried out
relate to meeting the State goals, and reaching the
State benchmarks, concerning workforce education ac-
tivities;
(3) describe how the activities to be carried out
are an integral part of the comprehensive efforts of
the eligible entity to improve education for all stu-
dents and adults;
(4) describe the process that will be used to inde-
pendently evaluate and continuously improve the per-
formance of the eligible entity; and
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(5) describe how the eligible entity will coordi-
nate the activities of the entity with the activities of
the local workforce development board, if any, in the
substate area.
SEC. 
118. 
LOCAL 
PARTNERSHIPS, 
AGREEMENTS, 
AND
WORKFORCE DEVELOPMENT BOARDS.
(a) LOCAL AGREEMENTS.—
(1) IN GENERAL.—
(A) NEGOTIATION AND AGREEMENT.—After
a Governor submits the State plan described in
section 104 to the Federal Partnership, the Gov-
ernor shall negotiate and enter into a local
agreement regarding the workforce development
activities to be carried out in each substate area
in the State with local partnerships (or, where
established, local workforce development boards
described in subsection (b)).
(B) WORKFORCE EDUCATION ACTIVITIES.—
In carrying out activities under this section, a
local partnership or local workforce development
board described in subsection (b) may make rec-
ommendations with respect to the allocation of
funds for, or administration of, workforce edu-
cation activities in the State involved, but such
allocation and administration shall be carried
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out in accordance with sections 111 through 117
and section 119.
(2) LOCAL PARTNERSHIPS.—
(A) IN GENERAL.—A local partnership re-
ferred to in paragraph (1) shall be established by
the local chief elected official, in accordance with
subparagraphs (B) and (C), and shall consist of
individuals representing business, industry, and
labor, local secondary schools, local postsecond-
ary education institutions, local adult education
providers, local elected officials, rehabilitation
agencies and organizations, community-based or-
ganizations, and veterans, within the appro-
priate substate area.
(B) MULTIPLE
JURISDICTIONS.—In any
case in which there are 2 or more units of gen-
eral local government in the substate area in-
volved, the chief elected official of each such unit
shall appoint members of the local partnership
in accordance with an agreement entered into by
such chief elected officials. In the absence of such
an agreement, such appointments shall be made
by the Governor of the State involved from the
individuals nominated or recommended by the
chief elected officials.
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(C) SELECTION OF BUSINESS AND INDUS-
TRY REPRESENTATIVES.—Individuals represent-
ing business and industry in the local partner-
ship shall be appointed by the chief elected offi-
cial from nominations submitted by business or-
ganizations in the substate area involved. Such
individuals shall reasonably represent the indus-
trial and demographic composition of the busi-
ness community. Where possible, at least 50 per-
cent of such business and industry representa-
tives shall be representatives of small business.
(3) BUSINESS AND INDUSTRY INVOLVEMENT.—
The business and industry representatives shall have
a lead role in the design, management, and evalua-
tion of the activities to be carried out in the substate
area under the local agreement.
(4) CONTENTS.—
(A) STATE
GOALS
AND
STATE
BENCH-
MARKS.—Such an agreement shall include a de-
scription of the manner in which funds allocated
to a substate area in accordance with section
111(a) or in accordance with sections 111(b),
112, 113, and 114 will be spent to meet the State
goals and reach the State benchmarks in a man-
ner that reflects local labor market conditions.
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(B) LOCAL RESPONSIBILITIES.—The agree-
ment shall also include a description of the re-
sponsibilities of the local partnership (or, where
established, local workforce development board
described in subsection (b)) for carrying out
workforce development activities under this sub-
title.
(C) COLLABORATION.—The agreement shall
also include information that demonstrates the
manner in which—
(i) the Governor; and
(ii) the local partnership (or, where es-
tablished, the local workforce development
board);
collaborated in reaching the agreement.
(5) FAILURE TO REACH AGREEMENT.—If, after a
reasonable effort, the Governor is unable to enter into
an agreement with the local partnership (or, where es-
tablished, the local workforce development board), the
Governor shall notify the partnership or board, as ap-
propriate, and provide the partnership or board, as
appropriate, with the opportunity to comment, not
later than 30 days after the date of the notification,
on the manner in which funds allocated to such sub-
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state area will be spent to meet the State goals and
reach the State benchmarks.
(6) EXCEPTION.—A State that indicates in the
State plan described in section 104 that the State will
be treated as a substate area for purposes of the appli-
cation of this subtitle shall not be subject to this sub-
section.
(b) LOCAL WORKFORCE DEVELOPMENT BOARDS.—
(1) IN GENERAL.—Each State may facilitate the
establishment of local workforce development boards
in each substate area to set policy and provide over-
sight over the workforce development activities in the
substate area.
(2) MEMBERSHIP.—
(A) STATE CRITERIA.—The Governor shall
establish criteria for use by local chief elected of-
ficials in each substate area in the selection of
members of the local workforce development
boards, in accordance with the requirements of
subparagraph (B).
(B) 
REPRESENTATION
REQUIREMENT.—
Such criteria shall require, at a minimum, that
a local workforce development board consist of—
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(i) representatives of business and in-
dustry in the substate area, who shall con-
stitute a majority of the board;
(ii) representatives of labor, workers,
and community-based organizations, who
shall constitute not less than 25 percent of
the members of the board;
(iii) representatives of local secondary
schools, postsecondary education institu-
tions, and adult education providers;
(iv) representatives of veterans; and
(v) 1 or more individuals with disabil-
ities, or their representatives.
(C) CHAIR.—Each local workforce develop-
ment board shall select a chairperson from
among the members of the board who are rep-
resentatives of business and industry.
(3) CONFLICT OF INTEREST.—No member of a
local workforce development board shall vote on a
matter relating to the provision of services by the
member (or any organization that the member di-
rectly represents) or vote on a matter that would pro-
vide direct financial benefit to such member or the
immediate family of such member or engage in any
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other activity determined by the Governor to con-
stitute a conflict of interest.
(4) FUNCTIONS.—The functions of the local
workforce development board shall include—
(A) submitting to the Governor a single
comprehensive 
3-year 
strategic 
plan 
for
workforce development activities in the substate
area that includes information—
(i) identifying the workforce develop-
ment needs of local industries, students, job-
seekers, and workers;
(ii) identifying the workforce develop-
ment activities to be carried out in the sub-
state area with funds received through the
allotment made to the State under section
102, to meet the State goals and reach the
State benchmarks;
(iii) 
identifying 
how 
the 
local
workforce development board will obtain the
active and continuous participation of busi-
ness, industry, and labor in the development
and 
continuous 
improvement 
of 
the
workforce development activities carried out
in the substate area; and
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(iv) identifying how the local workforce
development board will obtain the active
and continuous participation of secondary
school teachers, secondary school students
involved in workforce education activities
carried out under this subtitle, and parents
of such students, in the development and
continuous improvement of the workforce
education activities carried out in the sub-
state area;
(B) entering into local agreements with the
Governor as described in subsection (a);
(C) overseeing the operations of the one-stop
delivery of core services described in section
106(a)(2) in the substate area, including the re-
sponsibility to—
(i) designate local entities to operate
the one-stop delivery in the substate area,
consistent with the criteria referred to in
section 106(a)(2); and
(ii) develop and approve the budgets
and annual operating plans of the providers
of the one-stop delivery; and
(D) submitting annual reports to the Gov-
ernor on the progress being made in the substate
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area toward meeting the State goals and reach-
ing the State benchmarks.
(5) CONSULTATION.—A local workforce develop-
ment board that serves a substate area shall conduct
the functions described in paragraph (4) in consulta-
tion with the chief elected officials in the substate
area.
(c) ECONOMIC DEVELOPMENT ACTIVITIES.—A State
shall be eligible to use not more than 50 percent of the funds
made available to the State through the flex account for
flexible workforce activities to carry out economic develop-
ment activities if—
(1) the boards described in section 105 and sub-
section (b) are established in the State;
(2) in the case of a State that indicates in the
State plan described in section 104 that the State will
be treated as a substate area for purposes of the appli-
cation of this subtitle, the board described in section
105 is established in the State; or
(3) beginning with program year 2000, in the
case of a State that elects to offer activities for per-
sons age 18 or older under section 106(a)(6), the State
uses the authority of section 106(a)(9) to deliver some
or all of such activities through a system of vouchers.
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SEC. 119. CONSTRUCTION.
Nothing in this title shall be construed—
(1) to prohibit a local educational agency (or a
consortium thereof) that receives assistance under sec-
tion 112, from working with an eligible entity (or
consortium thereof) that receives assistance under sec-
tion 113, to carry out secondary school vocational
education activities in accordance with this subtitle;
or
(2) to prohibit an eligible entity (or consortium
thereof) that receives assistance under section 113,
from working with a local educational agency (or
consortium thereof) that receives assistance under sec-
tion 112, to carry out postsecondary and adult voca-
tional education activities in accordance with this
subtitle.
CHAPTER 3—ADMINISTRATION
SEC. 121. ACCOUNTABILITY.
(a) REPORT.—
(1) IN GENERAL.—Each State that receives an
allotment under section 102 shall annually prepare
and submit to the Federal Partnership, a report that
states how the State is performing on State bench-
marks, and the status and results of any State eval-
uations specified in subsection (f), that relate to
workforce development activities (and workforce prep-
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aration activities for at-risk youth) carried out
through the statewide system of the State. In prepar-
ing the report, the State may include information on
such additional benchmarks as the State may estab-
lish to meet the State goals.
(2) CONSOLIDATED REPORT.—In lieu of submit-
ting separate reports under paragraph (1) and section
409(a) of the Social Security Act, the State may pre-
pare a consolidated report. Any consolidated report
prepared under this paragraph shall contain the in-
formation described in paragraph (1) and subsections
(a) through (h) of section 409 of the Social Security
Act. The State shall submit any consolidated report
prepared under this paragraph to the Federal Part-
nership, the Secretary of Agriculture, and the Sec-
retary of Health and Human Services, on the dates
specified in section 409(a) of the Social Security Act.
(b) GOALS.—
(1) MEANINGFUL EMPLOYMENT.—Each statewide
system supported by an allotment under section 102
shall be designed to meet the goal of assisting partici-
pants in obtaining meaningful unsubsidized employ-
ment opportunities in the State.
(2) EDUCATION.—Each statewide system sup-
ported by an allotment under section 102 shall be de-
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signed to meet the goal of enhancing and developing
more fully the academic, occupational, and literacy
skills of all segments of the population of the State.
(c) BENCHMARKS.—
(1) MEANINGFUL EMPLOYMENT.—To be eligible
to receive an allotment under section 102, a State
shall develop, in accordance with paragraph (5), and
identify in the State plan of the State, proposed
quantifiable benchmarks to measure the statewide
progress of the State toward meeting the goal de-
scribed in subsection (b)(1), which shall include, at a
minimum, measures of—
(A) placement in unsubsidized employment
of participants;
(B) retention of the participants in such
employment (12 months after completion of the
participation); and
(C) increased earnings for the participants.
(2) EDUCATION.—To be eligible to receive an al-
lotment under section 102, a State shall develop, in
accordance with paragraph (5), and identify in the
State plan of the State, proposed quantifiable bench-
marks to measure the statewide progress of the State
toward meeting the goal described in subsection
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(b)(2), which shall include, at a minimum, measures
of—
(A) student mastery of academic knowledge
and work readiness skills;
(B) student mastery of occupational and in-
dustry-recognized skills according to skill pro-
ficiencies for students in career preparation pro-
grams;
(C) placement in, retention in, and comple-
tion of secondary education (as determined
under State law) and postsecondary education,
and placement and retention in employment and
in military service; and
(D) mastery of the literacy, knowledge, and
skills adults need to be productive and respon-
sible citizens and to become more actively in-
volved in the education of their children.
(3) POPULATIONS.—To be eligible to receive an
allotment under section 102, a State shall develop, in
accordance with paragraph (5), and identify in the
State plan of the State, proposed quantifiable bench-
marks to measure progress toward meeting the goals
described in subsection (b) for populations including,
at a minimum—
(A) welfare recipients;
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(B) individuals with disabilities;
(C) at-risk youth;
(D) dislocated workers; and
(E) veterans.
(4) SPECIAL RULE.—If a State has developed for
all students in the State performance indicators, at-
tainment levels, or assessments for skills according to
challenging academic, occupational, or industry-rec-
ognized skill proficiencies, the State shall use such
performance indicators, attainment levels, or assess-
ments in measuring the progress of all students served
under this title in attaining the skills.
(5) NEGOTIATIONS.—
(A) INITIAL
DETERMINATION.—On receipt
of a State plan submitted under section 104, the
Federal Partnership shall, not later than 30
days after the date of the receipt, determine—
(i) how the proposed State benchmarks
identified by the State in the State plan
compare to the model benchmarks estab-
lished by the Federal Partnership under sec-
tion 182(b)(2);
(ii) how the proposed State benchmarks
compare with State benchmarks proposed by
other States in their State plans; and
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(iii) whether the proposed State bench-
marks, taken as a whole, are sufficient—
(I) to enable the State to meet the
State goals; and
(II) to make the State eligible for
an incentive grant under section
122(a).
(B) NOTIFICATION.—The Federal Partner-
ship shall immediately notify the State of the de-
terminations referred to in subparagraph (A). If
the Federal Partnership determines that the pro-
posed State benchmarks are not sufficient to
make the State eligible for an incentive grant
under section 122(a), the Federal Partnership
shall provide the State with guidance on the
steps the State may take to allow the State to be-
come eligible for the grant.
(C) REVISION.—Not later than 30 days
after the date of receipt of the notification re-
ferred to in subparagraph (B), the State may re-
vise some or all of the State benchmarks identi-
fied in the State plan in order to become eligible
for the incentive grant or provide reasons why
the State benchmarks should be sufficient to
make the State eligible for the incentive grant.
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(D) DETERMINATION.—After reviewing any
revised State benchmarks or information submit-
ted by the State in accordance with subpara-
graph (C), the Federal Partnership shall make a
determination on the eligibility of the State for
the incentive grant, as described in paragraph
(6), and provide advice to the Secretary of Labor
and the Secretary of Education. The Secretary of
Labor and the Secretary of Education, acting
jointly on the advice of the Federal Partnership,
may award a grant to the State under section
122(a).
(6) INCENTIVE GRANTS.—Each State that sets
high benchmarks under paragraph (1), (2), or (3) and
reaches or exceeds the benchmarks, as determined by
the Federal Partnership, shall be eligible to receive an
incentive grant under section 122(a).
(7) SANCTIONS.—A State that has failed to dem-
onstrate sufficient progress toward reaching the State
benchmarks established under this subsection for the 3
years covered by a State plan described in section
104, as determined by the Federal Partnership, may
be subject to sanctions under section 122(b).
(d) JOB PLACEMENT ACCOUNTABILITY SYSTEM.—
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(1) IN GENERAL.—Each State that receives an
allotment under section 102 shall establish a job
placement accountability system, which will provide a
uniform set of data to track the progress of the State
toward reaching the State benchmarks.
(2) DATA.—
(A) IN
GENERAL.—In order to maintain
data relating to the measures described in sub-
section (c)(1), each such State shall establish a
job placement accountability system using quar-
terly wage records available through the unem-
ployment insurance system. The State agency or
entity within the State responsible for labor
market and occupational information, as des-
ignated in section 183(c)(1)(B), in conjunction
with the Commissioner of Labor Statistics, shall
maintain the job placement accountability sys-
tem and match information on participants
served by the statewide systems of the State and
other States with quarterly employment and
earnings records.
(B) REIMBURSEMENT.—Each local entity
that carries out workforce employment activities
or workforce education activities and that re-
ceives funds under this title shall provide infor-
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mation regarding the social security numbers of
the participants served by the entity and such
other information as the State may require to
the State agency or entity within the State re-
sponsible for labor market and occupational in-
formation, as designated in section 183(c)(1)(B).
(C) CONFIDENTIALITY.—The State agency
or entity within the State responsible for labor
market and occupational information, as des-
ignated in section 183(c)(1)(B), shall protect the
confidentiality of information obtained through
the job placement accountability system through
the use of recognized security procedures.
(e) INDIVIDUAL ACCOUNTABILITY.—Each State that
receives an allotment under section 102 shall devise and im-
plement procedures to provide, in a timely manner, infor-
mation on participants in activities carried out through the
statewide system who are participating as a condition of
receiving welfare assistance. The procedures shall require
that the State provide the information to the State and local
agencies carrying out the programs through which the wel-
fare assistance is provided, in a manner that ensures that
the agencies can monitor compliance with the conditions
regarding the receipt of the welfare assistance.
(f) EVALUATION OF STATE PROGRAMS.—
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(1) IN GENERAL.—Each State that receives an
allotment under section 102 shall conduct ongoing
evaluations of workforce employment activities, flexi-
ble workforce activities, and activities provided
through Job Corps centers, carried out in the State
under this title.
(2) METHODS.—The State shall—
(A) conduct such evaluations through con-
trolled experiments using experimental and con-
trol groups chosen by random assignment;
(B) in conducting the evaluations, deter-
mine, at a minimum, whether job training and
job placement services provided through the ac-
tivities described in paragraph (1) effectively
raise the hourly wage rates of individuals receiv-
ing the services through such activities; and
(C) conduct at least 1 such evaluation at
any given time during any period in which the
State is receiving funding under this title for
such activities.
SEC. 122. INCENTIVES AND SANCTIONS.
(a) INCENTIVES.—
(1) IN GENERAL.—The Secretary of Labor and
the Secretary of Education, acting jointly on the ad-
vice of the Federal Partnership, may award incentive
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grants of not more than $15,000,000 per program
year to a State that—
(A) reaches or exceeds State benchmarks es-
tablished under section 121(c), with an emphasis
on the benchmarks established under section
121(c)(3), in accordance with section 121(c)(6);
(B) demonstrates to the Federal Partnership
that the State has made substantial reductions
in the number of adult recipients of assistance,
as defined in section 102(b)(1)(A), resulting from
increased placement of such adult recipients in
unsubsidized employment; or
(C) in the case of a State that elects to offer
activities for persons age 18 or older under sec-
tion 106(a)(6), uses the authority of section
106(a)(9) to deliver some or all of such activities
through a system of vouchers.
(2) USE OF FUNDS.—A State that receives such
a grant may use the funds made available through the
grant to carry out any workforce development activi-
ties authorized under this title.
(b) SANCTIONS.—
(1) FAILURE
TO
DEMONSTRATE
SUFFICIENT
PROGRESS.—
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(A) FINDING.—If the Federal Partnership
determines, after notice and an opportunity for
a hearing, that a State has failed to demonstrate
sufficient progress toward reaching the State
benchmarks established under section 121(c) for
the 3 years covered by a State plan described in
section 104, the Federal Partnership shall—
(i) make a finding regarding whether
the failure is attributable to the workforce
employment activities, or workforce edu-
cation activities, of the State; and
(ii) provide advice to the Secretary of
Labor and the Secretary of Education.
(B) REDUCTIONS.—
(i) FAILURE ATTRIBUTABLE TO BOTH
CATEGORIES.—Except as provided in sub-
paragraph (C), if the Federal Partnership
finds that the failure referred to in subpara-
graph (A) is attributable to both categories
referred to in subparagraph (A)(i), the Sec-
retary of Labor and the Secretary of Edu-
cation, acting jointly on the advice of the
Federal Partnership, may reduce the allot-
ment of the State under section 102 by not
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more than 10 percent per program year for
not more than 3 years.
(ii) FAILURE ATTRIBUTABLE TO ONE
CATEGORY.—Unless the Governor of the
State has developed an integrated State
plan under section 104(b)(5), if the Federal
Partnership finds that the failure referred
to in subparagraph (A) is attributable to 1
category of activities referred to in subpara-
graph (A)(i) but not to the remaining cat-
egory, the Secretary of Labor and the Sec-
retary of Education, acting jointly on the
advice of the Federal Partnership, may de-
cide to reduce by 10 percent only the por-
tion of the allotment for the category of ac-
tivities to which the failure is attributable.
(C) COMBINATION
AND
REDUCTION.—Not-
withstanding sections 103 and 111, if the Fed-
eral Partnership finds that the Governor of the
State has developed an integrated State plan
under section 104(b)(5), and the failure referred
to in subparagraph (A) is attributable to 1 cat-
egory of activities referred to in subparagraph
(A)(i) but not to the remaining category, the
Secretary of Labor and the Secretary of Edu-
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cation, acting jointly on the advice of the Fed-
eral Partnership, in lieu of making a reduction
under subparagraph (B), shall—
(i) reduce the portion of the allotment
for the category of activities to which the
failure is attributable by a percentage deter-
mined by the Secretaries, but not to exceed
5 percent of such portion, for a period de-
termined by the Secretaries;
(ii) require the State to combine, for
such period—
(I) 
an 
additional 
percentage,
equal to the percentage determined
under clause (i), of the funds made
available through such portion; and
(II) the funds made available to
the State under this subtitle for the re-
maining category; and
(iii) require the State to expend the
combined funds in accordance with the inte-
grated State plan of the State referred to in
section 104(b)(5) to carry out the remaining
category of activities.
(D) CONSTRUCTION.—Notwithstanding any
other provision of this title, funds referred to in
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subparagraph (C)(ii)(I) that are combined under
subparagraph (C) shall be considered—
(i) to be made available under section
103(a)(1) if the combined funds are re-
quired to be expended for workforce employ-
ment activities; and
(ii) to be made available under section
103(a)(2) if the combined funds are re-
quired to be expended for workforce edu-
cation activities.
(E) DEFINITION.—As used in this para-
graph, the term ‘‘portion of the allotment’’—
(i) used with respect to workforce em-
ployment activities, means the funds made
available under paragraph (1) or (3) of sec-
tion 103(a) for workforce employment ac-
tivities (less any portion of such funds made
available under section 6 of the Wagner-
Peyser Act (29 U.S.C. 49e)); and
(ii) used with respect to workforce edu-
cation activities, means the funds made
available under paragraph (2) or (3) of sec-
tion 103(a) for workforce education activi-
ties.
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(2) EXPENDITURE CONTRARY TO TITLE.—If the
Governor of a State determines that a local entity
that carries out workforce employment activities in a
substate area of the State has expended funds made
available under this title in a manner contrary to the
objectives of this title, and such expenditures do not
constitute fraudulent activity, the Governor may de-
duct an amount equal to the funds from a subsequent
program year allocation to the substate area.
(c) FUNDS
RESULTING
FROM
REDUCED
ALLOT-
MENTS.—The Secretary of Labor and the Secretary of Edu-
cation, acting jointly on the advice of the Federal Partner-
ship, may use an amount retained as a result of a reduction
in an allotment made under subsection (b)(1) to award an
incentive grant under subsection (a).
SEC. 123. UNEMPLOYMENT TRUST FUND.
(a) IN GENERAL.—Section 901(c) of the Social Secu-
rity Act (42 U.S.C. 1101(c)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)(iii), by striking
‘‘carrying into effect section 4103’’ and inserting
‘‘carrying out the activities described in sections
4103, 4103A, 4104, and 4104A’’; and
(B) in subparagraph (B), in the matter pre-
ceding clause (i), by striking ‘‘Department of
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(5) 5.0 percent shall be reserved for making in-
centive grants under section 122(a), for making na-
tional discretionary grants under section 184, and for
the administration of this title;
(6) 1.4 percent shall be reserved for carrying out
section 183; and
(7) 0.15 percent shall be reserved for carrying
out sections 185 and 186 and the National Literacy
Act of 1991 (20 U.S.C. 1201 note).
(c) PROGRAM YEAR.—
(1) IN GENERAL.—Appropriations for any fiscal
year for programs and activities under this title 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) ADMINISTRATION.—Funds obligated for any
program year may be expended by each recipient dur-
ing the program year and the 2 succeeding program
years and no amount shall be deobligated on account
of a rate of expenditure that is consistent with the
provisions of the State plan specified in section 104
that relate to workforce employment activities.
SEC. 125. EFFECTIVE DATE.
This subtitle shall take effect July 1, 1998.
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Subtitle B—Job Corps and Other
Workforce Preparation Activities
for At-Risk Youth
CHAPTER 1—GENERAL PROVISIONS
SEC. 131. DEFINITIONS.
As used in this subtitle:
(1) AT-RISK YOUTH.—The term ‘‘at-risk youth’’
means an individual who—
(A) is not less than age 15 and not more
than age 24;
(B) is low-income (as defined in section
113(e));
(C) is 1 or more of the following:
(i) Basic skills deficient.
(ii) A school dropout.
(iii) Homeless or a runaway.
(iv) Pregnant or parenting.
(v) An individual who requires addi-
tional education, training, or intensive
counseling and related assistance, in order
to secure and hold employment or partici-
pate successfully in regular schoolwork.
(2) ENROLLEE.—The term ‘‘enrollee’’ means an
individual enrolled in the Job Corps.
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(3) GOVERNOR.—The term ‘‘Governor’’ means
the chief executive officer of a State.
(4) JOB CORPS.—The term ‘‘Job Corps’’ means
the Job Corps described in section 142.
(5) JOB CORPS CENTER.—The term ‘‘Job Corps
center’’ means a center described in section 142.
(6) OPERATOR.—The term ‘‘operator’’ means an
entity selected under this chapter to operate a Job
Corps center.
(7) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Labor.
CHAPTER 2—JOB CORPS
SEC. 141. PURPOSES.
The purposes of this chapter are—
(1) to maintain a national Job Corps program,
carried out in partnership with States and commu-
nities, to assist at-risk youth who need and can bene-
fit from an unusually intensive program, operated in
a group setting, to become more responsible, employ-
able, and productive citizens;
(2) to set forth standards and procedures for se-
lecting individuals as enrollees in the Job Corps;
(3) to authorize the establishment of Job Corps
centers in which enrollees will participate in inten-
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sive programs of workforce development activities;
and
(4) to prescribe various other powers, duties, and
responsibilities incident to the operation and continu-
ing development of the Job Corps.
SEC. 142. ESTABLISHMENT.
There shall be established in the Department of Labor
a Job Corps program, to carry out, in conjunction with
the activities carried out by the National Board as specified
in section 156, activities described in this chapter for indi-
viduals enrolled in the Job Corps and assigned to a center.
SEC. 143. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.
To be eligible to become an enrollee, an individual
shall be an at-risk youth.
SEC. 144. SCREENING AND SELECTION OF APPLICANTS.
(a) STANDARDS AND PROCEDURES.—
(1) IN GENERAL.—The Secretary shall prescribe
specific standards and procedures for the screening
and selection of applicants for the Job Corps, after
considering recommendations from the Governors,
State workforce development boards established under
section 105, local partnerships and local workforce de-
velopment boards established under section 118(b),
and other interested parties.
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(2) METHODS.—In prescribing standards and
procedures under paragraph (1) for the screening and
selection of Job Corps applicants, the Secretary
shall—
(A) require enrollees to take drug tests with-
in 30 days of enrollment in the Job Corps;
(B) allocate, where necessary, additional re-
sources to increase the applicant pool;
(C) establish standards for outreach to and
screening of Job Corps applicants;
(D) where appropriate, take measures to
improve the professional capability of the indi-
viduals conducting such screening; and
(E) require Job Corps applicants to pass
background checks, conducted in accordance with
procedures established by the Secretary.
(3) IMPLEMENTATION.—To the extent prac-
ticable, the standards and procedures shall be imple-
mented through arrangements with—
(A) centers providing the one-stop delivery
of core services described in section 106(a)(2);
(B) agencies and organizations such as
community action agencies, professional groups,
and labor organizations; and
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(C) agencies and individuals that have con-
tact with youth over substantial periods of time
and are able to offer reliable information about
the needs and problems of the youth.
(4) CONSULTATION.—The standards and proce-
dures shall provide for necessary consultation with in-
dividuals and organizations, including court, proba-
tion, parole, law enforcement, education, welfare, and
medical authorities and advisers.
(b) SPECIAL LIMITATIONS.—No individual shall be se-
lected as an enrollee unless the individual or organization
implementing the standards and procedures determines
that—
(1) there is a reasonable expectation that the in-
dividual considered for selection can participate suc-
cessfully in group situations and activities, is not
likely to engage in behavior that would prevent other
enrollees from receiving the benefit of the program or
be incompatible with the maintenance of sound dis-
cipline and satisfactory relationships between the Job
Corps center to which the individual might be as-
signed and surrounding communities; and
(2) the individual manifests a basic understand-
ing of both the rules to which the individual will be
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subject and of the consequences of failure to observe
the rules.
SEC. 145. ENROLLMENT AND ASSIGNMENT.
(a) RELATIONSHIP BETWEEN ENROLLMENT AND MILI-
TARY OBLIGATIONS.—Enrollment in the Job Corps shall
not relieve any individual of obligations under the Military
Selective Service Act (50 U.S.C. App. 451 et seq.).
(b) ASSIGNMENT.—After the Secretary has determined
that an enrollee is to be assigned to a Job Corps center,
the enrollee shall be assigned to the center that is closest
to the residence of the enrollee, except that the Secretary
may waive this requirement for good cause, including to
ensure an equitable opportunity for at-risk youth from var-
ious sections of the Nation to participate in the Job Corps
program, to prevent undue delays in assignment of an en-
rollee, to adequately meet the educational or other needs of
an enrollee, and for efficiency and economy in the operation
of the program.
(c) PERIOD OF ENROLLMENT.—No individual may be
enrolled in the Job Corps for more than 2 years, except—
(1) in a case in which completion of an ad-
vanced career training program under section 147(d)
would require an individual to participate for more
than 2 years; or
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(2) as the Secretary may authorize in a special
case.
SEC. 146. JOB CORPS CENTERS.
(a) OPERATORS AND SERVICE PROVIDERS.—
(1) ELIGIBLE
ENTITIES.—The Secretary shall
enter into an agreement with a Federal, State, or
local agency, which may be a State board or agency
that operates or wishes to develop an area vocational
education school facility or residential vocational
school, or with a private organization, for the oper-
ation of each Job Corps center. The Secretary shall
enter into an agreement with an appropriate entity
to provide services for a Job Corps center.
(2) SELECTION PROCESS.—Except as provided
in subsections (c) and (d), the Secretary shall select
an entity to operate a Job Corps center on a competi-
tive basis, after reviewing the operating plans de-
scribed in section 149. In selecting a private or public
entity to serve as an operator for a Job Corps Center,
the Secretary shall, at the request of the Governor of
the State in which the center is located, convene and
obtain the recommendation of a selection panel de-
scribed in section 151(b). In selecting an entity to
serve as an operator or to provide services for a Job
Corps center, the Secretary shall take into consider-
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ation the previous performance of the entity, if any,
relating to operating or providing services for a Job
Corps center.
(b) CHARACTER AND ACTIVITIES.—Job Corps centers
may be residential or nonresidential in character, and shall
be designed and operated so as to provide enrollees, in a
well-supervised setting, with access to activities described
in section 147. In any year, no more than 20 percent of
the individuals enrolled in the Job Corps may be
nonresidential participants in the Job Corps.
(c) CIVILIAN CONSERVATION CENTERS.—
(1) IN GENERAL.—The Job Corps centers may
include Civilian Conservation Centers operated under
agreements with the Secretary of Agriculture or the
Secretary of the Interior, located primarily in rural
areas, which shall provide, in addition to other train-
ing and assistance, programs of work experience to
conserve, develop, or manage public natural resources
or public recreational areas or to develop community
projects in the public interest.
(2) SELECTION PROCESS.—The Secretary may
select an entity to operate a Civilian Conservation
Center on a competitive basis, as provided in sub-
section (a), if the center fails to meet such national
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performance standards as the Secretary shall estab-
lish.
(d) INDIAN TRIBES.—
(1) DEFINITION.—As used in this subsection:
(A) INDIAN.— The term ‘‘Indian’’ means a
person who is a member of an Indian tribe.
(B) INDIAN
TRIBE.—The term ‘‘Indian
tribe’’ means any Indian tribe, band, nation, or
other organized group or community, which is
recognized as eligible for the special programs
and services provided by the United States to In-
dians because of their status as Indians.
(2) GENERAL AUTHORITY.—The Secretary may
enter into agreements with Indian tribes to operate
Job Corps centers for Indians.
SEC. 147. PROGRAM ACTIVITIES.
(a) ACTIVITIES PROVIDED THROUGH JOB CORPS CEN-
TERS.—Each Job Corps center shall provide enrollees as-
signed to the center with access to activities described in
section 106(a)(2)(B), and such other workforce development
activities as may be appropriate to meet the needs of the
enrollees, including providing work-based learning through-
out the enrollment of the enrollees and assisting the enrollees
in obtaining meaningful unsubsidized employment, partici-
pating successfully in secondary education or postsecondary
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education programs, enrolling in other suitable training
programs, or satisfying Armed Forces requirements, on
completion of their enrollment.
(b) ARRANGEMENTS.—The Secretary shall arrange for
enrollees assigned to Job Corps centers to receive workforce
development activities through or in coordination with the
statewide system, including workforce development activi-
ties provided through local public or private educational
agencies, vocational educational institutions, or technical
institutes.
(c) JOB
PLACEMENT
ACCOUNTABILITY.—The Sec-
retary shall establish a job placement accountability system
for Job Corps centers, and coordinate the activities carried
out through the system with activities carried out through
the job placement accountability systems described in sec-
tion 121(d) for the States in which Job Corps centers are
located.
(d) ADVANCED CAREER TRAINING PROGRAMS.—
(1) IN GENERAL.—The Secretary may arrange
for programs of advanced career training for selected
enrollees in which the enrollees may continue to par-
ticipate for a period of not to exceed 1 year in addi-
tion to the period of participation to which the enroll-
ees would otherwise be limited.
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(2) POSTSECONDARY
EDUCATIONAL
INSTITU-
TIONS.—The advanced career training may be pro-
vided through a postsecondary educational institution
for an enrollee who has obtained a secondary school
diploma or its recognized equivalent, has dem-
onstrated commitment and capacity in previous Job
Corps participation, and has an identified occupa-
tional goal.
(3) 
COMPANY-SPONSORED
TRAINING
PRO-
GRAMS.—The Secretary may enter into contracts with
appropriate entities to provide the advanced career
training through intensive training in company-spon-
sored training programs, combined with internships
in work settings.
(4) BENEFITS.—
(A) IN
GENERAL.—During the period of
participation in an advanced career training
program, an enrollee shall be eligible for full Job
Corps benefits, or a monthly stipend equal to the
average value of the residential support, food, al-
lowances, and other benefits provided to enrollees
assigned to residential Job Corps centers.
(B) CALCULATION.—The total amount for
which an enrollee shall be eligible under sub-
paragraph (A) shall be reduced by the amount of
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any scholarship or other educational grant as-
sistance received by such enrollee for advanced
career training.
(5) DEMONSTRATION.—Each year, any operator
seeking to enroll additional enrollees in an advanced
career training program shall demonstrate that par-
ticipants in such program have achieved a reasonable
rate of completion and placement in training-related
jobs before the operator may carry out such addi-
tional enrollment.
SEC. 148. SUPPORT.
The Secretary shall provide enrollees assigned to Job
Corps centers with such personal allowances, including re-
adjustment allowances, as the Secretary may determine to
be necessary or appropriate to meet the needs of the enroll-
ees.
SEC. 149. OPERATING PLAN.
(a) IN GENERAL.—To be eligible to operate a Job
Corps center, an entity shall prepare and submit an operat-
ing plan to the Secretary for approval. Prior to submitting
the plan to the Secretary, the entity shall submit the plan
to the Governor of the State in which the center is located
for review and comment. The entity shall submit any com-
ments prepared by the Governor on the plan to the Sec-
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retary with the plan. Such plan shall include, at a mini-
mum, information indicating—
(1) in quantifiable terms, the extent to which the
center will contribute to the achievement of the pro-
posed State goals and State benchmarks identified in
the State plan submitted under section 104 for the
State in which the center is located;
(2) the extent to which workforce employment ac-
tivities and workforce education activities delivered
through the Job Corps center are directly linked to the
workforce development needs of the region in which
the center is located;
(3) an implementation strategy to ensure that all
enrollees assigned to the Job Corps center will have
access to services through the one-stop delivery of core
services described in section 106(a)(2) by the State;
and
(4) an implementation strategy to ensure that
the curricula of all such enrollees is integrated into
the school-to-work activities of the State, including
work-based learning, work experience, and career-
building activities, and that such enrollees have the
opportunity to obtain secondary school diplomas or
their recognized equivalent.
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(b) APPROVAL.—The Secretary shall not approve an
operating plan described in subsection (a) for a center if
the Secretary determines that the activities proposed to be
carried out through the center are not sufficiently integrated
with the activities carried out through the statewide system
of the State in which the center is located.
SEC. 150. STANDARDS OF CONDUCT.
(a) PROVISION AND ENFORCEMENT.—The Secretary
shall provide, and directors of Job Corps center shall strin-
gently enforce, standards of conduct within the centers.
Such standards of conduct shall include provisions forbid-
ding the actions described in subsection (b)(2)(A).
(b) DISCIPLINARY MEASURES.—
(1) IN GENERAL.—To promote the proper moral
and disciplinary conditions in the Job Corps, the di-
rectors of Job Corps centers shall take appropriate
disciplinary measures against enrollees. If such a di-
rector determines that an enrollee has committed a
violation of the standards of conduct, the director
shall dismiss the enrollee from the Job Corps if the di-
rector determines that the retention of the enrollee in
the Job Corps will jeopardize the enforcement of such
standards or diminish the opportunities of other en-
rollees.
(2) ZERO TOLERANCE POLICY.—
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(A) 
GUIDELINES.—The 
Secretary 
shall
adopt guidelines establishing a zero tolerance
policy for an act of violence, for use, sale, or pos-
session of a controlled substance, for abuse of al-
cohol, or for other illegal or disruptive activity.
(B) DEFINITIONS.—As used in this para-
graph:
(i) 
CONTROLLED
SUBSTANCE.—The
term ‘‘controlled substance’’ has the mean-
ing given the term in section 102 of the
Controlled Substances Act (21 U.S.C. 802).
(ii) ZERO
TOLERANCE
POLICY.—The
term ‘‘zero tolerance policy’’ means a policy
under which an enrollee shall be automati-
cally dismissed from the Job Corps after a
determination by the director that the en-
rollee has carried out an action described in
subparagraph (A).
(c) APPEAL.—A disciplinary measure taken by a di-
rector under this section shall be subject to expeditious ap-
peal in accordance with procedures established by the Sec-
retary.
SEC. 151. COMMUNITY PARTICIPATION.
(a) ACTIVITIES.—The Secretary shall encourage and
cooperate in activities to establish a mutually beneficial re-
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lationship between Job Corps centers in the State and near-
by communities. The activities shall include the use of any
local partnerships or local workforce development boards es-
tablished in the State under section 118(b) to provide a
mechanism for joint discussion of common problems and
for planning programs of mutual interest.
(b) SELECTION PANELS.—The Governor may rec-
ommend individuals to serve on a selection panel convened
by the Secretary to provide recommendations to the Sec-
retary regarding any competitive selection of an operator
for a center in the State. The panel shall have not more
than 7 members. In recommending individuals to serve on
the panel, the Governor may recommend members of State
workforce development boards established under section 105,
if any, members of any local partnerships or local workforce
development boards established in the State under section
118(b), or other representatives selected by the Governor.
The Secretary shall select at least 1 individual rec-
ommended by the Governor.
(c) ACTIVITIES.—Each Job Corps center director
shall—
(1) give officials of nearby communities appro-
priate advance notice of changes in the rules, proce-
dures, or activities of the Job Corps center that may
affect or be of interest to the communities;
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(2) afford the communities a meaningful voice in
the affairs of the Job Corps center that are of direct
concern to the communities, including policies govern-
ing the issuance and terms of passes to enrollees; and
(3) encourage the participation of enrollees in
programs for improvement of the communities, with
appropriate advance consultation with business,
labor, professional, and other interested groups, in the
communities.
SEC. 152. COUNSELING AND PLACEMENT.
The Secretary shall ensure that enrollees assigned to
Job Corps centers receive academic and vocational counsel-
ing and job placement services, which shall be provided, to
the maximum extent practicable, through the delivery of
core services described in section 106(a)(2).
SEC. 153. ADVISORY COMMITTEES.
The Secretary is authorized to make use of advisory
committees in connection with the operation of the Job
Corps program, and the operation of Job Corps centers,
whenever the Secretary determines that the availability of
outside advice and counsel on a regular basis would be of
substantial benefit in identifying and overcoming problems,
in planning program or center development, or in strength-
ening relationships between the Job Corps and agencies, in-
stitutions, or groups engaged in related activities.
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SEC. 154. APPLICATION OF PROVISIONS OF FEDERAL LAW.
(a) ENROLLEES NOT CONSIDERED TO BE FEDERAL
EMPLOYEES.—
(1) IN GENERAL.—Except as otherwise provided
in this subsection and in section 8143(a) of title 5,
United States Code, enrollees shall not be considered
to be Federal employees and shall not be subject to the
provisions of law relating to Federal employment, in-
cluding such provisions regarding hours of work, rates
of compensation, leave, unemployment compensation,
and Federal employee benefits.
(2) PROVISIONS RELATING TO TAXES AND SOCIAL
SECURITY BENEFITS.—For purposes of the Internal
Revenue Code of 1986 and title II of the Social Secu-
rity Act (42 U.S.C. 401 et seq.), enrollees shall be
deemed to be employees of the United States and any
service performed by an individual as an enrollee
shall be deemed to be performed in the employ of the
United States.
(3) PROVISIONS RELATING TO COMPENSATION TO
FEDERAL
EMPLOYEES
FOR
WORK
INJURIES.—For
purposes of subchapter I of chapter 81 of title 5, Unit-
ed States Code (relating to compensation to Federal
employees for work injuries), enrollees shall be deemed
to be civil employees of the Government of the United
States within the meaning of the term ‘‘employee’’ as
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defined in section 8101 of title 5, United States Code,
and the provisions of such subchapter shall apply as
specified in section 8143(a) of title 5, United States
Code.
(4) FEDERAL
TORT
CLAIMS
PROVISIONS.—For
purposes of the Federal tort claims provisions in title
28, United States Code, enrollees shall be considered
to be employees of the Government.
(b) ADJUSTMENTS AND SETTLEMENTS.—Whenever the
Secretary finds a claim for damages to a person or property
resulting from the operation of the Job Corps to be a proper
charge against the United States, and the claim is not cog-
nizable under section 2672 of title 28, United States Code,
the Secretary may adjust and settle the claim in an amount
not exceeding $1,500.
(c) PERSONNEL OF THE UNIFORMED SERVICES.—Per-
sonnel of the uniformed services who are detailed or as-
signed to duty in the performance of agreements made by
the Secretary for the support of the Job Corps shall not be
counted in computing strength under any law limiting the
strength of such services or in computing the percentage au-
thorized by law for any grade in such services.
SEC. 155. SPECIAL PROVISIONS.
(a) ENROLLMENT OF WOMEN.—The Secretary shall
immediately take steps to achieve an enrollment of 50 per-
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cent women in the Job Corps program, consistent with the
need to—
(1) promote efficiency and economy in the oper-
ation of the program;
(2) promote sound administrative practice; and
(3) meet the socioeconomic, educational, and
training needs of the population to be served by the
program.
(b) 
STUDIES, 
EVALUATIONS, 
PROPOSALS, 
AND
DATA.—The Secretary shall assure that all studies, evalua-
tions, proposals, and data produced or developed with Fed-
eral funds in the course of carrying out the Job Corps pro-
gram shall become the property of the United States.
(c) GROSS RECEIPTS.—Transactions conducted by a
private for-profit contractor or a nonprofit contractor in
connection with the operation by the contractor of a Job
Corps center or the provision of services by the contractor
for a Job Corps center shall not be considered to be generat-
ing gross receipts. Such a contractor shall not be liable, di-
rectly or indirectly, to any State or subdivision of a State
(nor to any person acting on behalf of such a State or sub-
division) for any gross receipts taxes, business privilege
taxes measured by gross receipts, or any similar taxes im-
posed on, or measured by, gross receipts in connection with
any payments made to or by such contractor for operating
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or providing services for a Job Corps center. Such a con-
tractor shall not be liable to any State or subdivision of
a State to collect or pay any sales, excise, use, or similar
tax imposed on the sale to or use by such contractor of any
property, service, or other item in connection with the oper-
ation of or provision of services for a Job Corps center.
(d) MANAGEMENT FEE.—The Secretary shall provide
each operator or entity providing services for a Job Corps
center with an equitable and negotiated management fee of
not less than 1 percent of the contract amount.
(e) DONATIONS.—The Secretary may accept on behalf
of the Job Corps or individual Job Corps centers charitable
donations of cash or other assistance, including equipment
and materials, if such donations are available for appro-
priate use for the purposes set forth in this chapter.
SEC. 156. REVIEW OF JOB CORPS CENTERS.
(a) NATIONAL JOB CORPS REVIEW.—Not later than
March 31, 1997, the National Board shall conduct a review
of the activities carried out under part B of title IV of the
Job Training Partnership Act (29 U.S.C. 1691 et seq.), and
submit to the appropriate committees of Congress a report
containing the results of the review, including—
(1) information on the amount of funds expended
for fiscal year 1996 to carry out activities under such
part, for each State and for the United States;
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(2) for each Job Corps center funded under such
part, information on the amount of funds expended
for fiscal year 1996 under such part to carry out ac-
tivities related to the direct operation of the center,
including funds expended for student training, out-
reach or intake activities, meals and lodging, student
allowances, medical care, placement or settlement ac-
tivities, and administration;
(3) for each Job Corps center, information on the
amount of funds expended for fiscal year 1996 under
such part through contracts to carry out activities not
related to the direct operation of the center, including
funds expended for student travel, national outreach,
screening, and placement services, national vocational
training, and national and regional administrative
costs;
(4) for each Job Corps center, information on the
amount of funds expended for fiscal year 1996 under
such part for facility construction, rehabilitation, and
acquisition expenses;
(5) information on the amount of funds required
to be expended under such part to complete each new
or proposed Job Corps center, and to rehabilitate and
repair each existing Job Corps center, as of the date
of the submission of the report;
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(6) a summary of the information described in
paragraphs (2) through (5) for all Job Corps centers;
(7) an assessment of the need to serve at-risk
youth in the Job Corps program, including—
(A) a cost-benefit analysis of the residential
component of the Job Corps program;
(B) the need for residential education and
training services for at-risk youth, analyzed for
each State and for the United States; and
(C) the distribution of training positions in
the Job Corps program, as compared to the need
for the services described in subparagraph (B),
analyzed for each State;
(8) an overview of the Job Corps program as a
whole and an analysis of individual Job Corps cen-
ters, including a 5-year performance measurement
summary that includes information, analyzed for the
program and for each Job Corps center, on—
(A) the number of enrollees served;
(B) the number of former enrollees who en-
tered employment, including the number of
former enrollees placed in a position related to
the job training received through the program
and the number placed in a position not related
to the job training received;
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(C) the number of former enrollees placed in
jobs for 32 hours per week or more;
(D) the number of former enrollees who en-
tered employment and were retained in the em-
ployment for more than 13 weeks;
(E) the number of former enrollees who en-
tered the Armed Forces;
(F) the number of former enrollees who com-
pleted vocational training, and the rate of such
completion, analyzed by vocation;
(G) the number of former enrollees who en-
tered postsecondary education;
(H) the number and percentage of early
dropouts from the Job Corps program;
(I) the average wage of former enrollees, in-
cluding wages from positions described in sub-
paragraph (B);
(J) the number of former enrollees who ob-
tained a secondary school diploma or its recog-
nized equivalent;
(K) the average level of learning gains for
former enrollees; and
(L) the number of former enrollees that did
not—
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(i) enter employment or postsecondary
education;
(ii) complete a vocational education
program; or
(iii) make identifiable learning gains;
(9) information regarding the performance of all
existing Job Corps centers over the 3 years preceding
the date of submission of the report; and
(10) job placement rates for each Job Corps cen-
ter and each entity providing services to a Job Corps
center.
(b) RECOMMENDATIONS OF NATIONAL BOARD.—
(1) RECOMMENDATIONS.—The National Board
shall, based on the results of the review described in
subsection (a), make recommendations to the Sec-
retary of Labor, regarding improvements in the oper-
ation of the Job Corps program, including—
(A) closing 5 Job Corps centers by Septem-
ber 30, 1997, and 5 additional Job Corps centers
by September 30, 2000;
(B) relocating Job Corps centers described
in paragraph (2)(A)(iii) in cases in which facil-
ity rehabilitation, renovation, or repair is not
cost-effective; and
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(C) taking any other action that would im-
prove the operation of a Job Corps center or any
other appropriate action.
(2) CONSIDERATIONS.—
(A) IN GENERAL.—In determining whether
to recommend that the Secretary of Labor close
a Job Corps center, the National Board shall
consider whether the center—
(i) has consistently received low per-
formance measurement ratings under the
Department of Labor or the Office of In-
spector General Job Corps rating system;
(ii) is among the centers that have ex-
perienced the highest number of serious in-
cidents of violence or criminal activity in
the past 5 years;
(iii) is among the centers that require
the largest funding for renovation or repair,
as specified in the Department of Labor Job
Corps Construction/Rehabilitation Funding
Needs Survey, or for rehabilitation or re-
pair, as reflected in the portion of the re-
view described in subsection (a)(5);
(iv) is among the centers for which the
highest relative or absolute fiscal year 1996
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expenditures were made, for any of the cat-
egories of expenditures described in para-
graph (2), (3), or (4) of subsection (a), as
reflected in the review described in sub-
section (a);
(v) is among the centers with the least
State and local support; or
(vi) is among the centers with the low-
est rating on such additional criteria as the
National Board may determine to be appro-
priate.
(B) COVERAGE OF STATES AND REGIONS.—
Notwithstanding subparagraph (A), the National
Board shall not recommend that the Secretary of
Labor close the only Job Corps center in a State
or a region of the United States.
(C) ALLOWANCE FOR NEW JOB CORPS CEN-
TERS.—Notwithstanding any other provision of
this section, if the planning or construction of a
Job Corps center that received Federal funding
for fiscal year 1994 or 1995 has not been com-
pleted by the date of enactment of this Act—
(i) the appropriate entity may com-
plete the planning or construction and
begin operation of the center; and
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(ii) the National Board shall not
evaluate the center under this title sooner
than 3 years after the first date of operation
of the center.
(3) REPORT.—Not later than June 30, 1997, the
National Board shall submit a report to the Secretary
of Labor, which shall contain a detailed statement of
the findings and conclusions of the National Board
resulting from the review described in subsection (a)
together with the recommendations described in para-
graph (1).
(c) IMPLEMENTATION
OF PERFORMANCE IMPROVE-
MENTS.—The Secretary shall, after reviewing the report
submitted under subsection (b)(3), implement improve-
ments in the operation of the Job Corps program, including
closing 10 individual Job Corps centers pursuant to sub-
section (b). In implementing such improvements, the Sec-
retary may close such additional Job Corps centers as the
Secretary determines to be appropriate. Funds saved
through the implementation of such improvements shall be
used to maintain overall Job Corps program service levels,
improve facilities at existing Job Corps centers, relocate Job
Corps centers, initiate new Job Corps centers, and make
other performance improvements in the Job Corps program.
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(d) REPORT TO CONGRESS.—The Secretary shall an-
nually report to Congress the information specified in para-
graphs (8), (9), and (10) of subsection (a) and such addi-
tional information relating to the Job Corps program as
the Secretary may determine to be appropriate.
SEC. 157. ADMINISTRATION.
The Secretary shall carry out the responsibilities speci-
fied for the Secretary in this chapter, notwithstanding any
other provision of this title.
SEC. 158. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection
(b), this chapter shall take effect on July 1, 1998.
(b) REPORT.—Section 156 shall take effect on the date
of enactment of this Act.
CHAPTER 3—OTHER WORKFORCE PREPA-
RATION 
ACTIVITIES 
FOR 
AT-RISK
YOUTH
SEC. 161. WORKFORCE PREPARATION ACTIVITIES FOR AT-
RISK YOUTH.
(a) IN GENERAL.—For program year 1998 and each
subsequent program year, the Secretary of Labor and the
Secretary of Education, acting jointly on the advice of the
Federal Partnership, shall make allotments under sub-
section (c) for States, to enable the Secretary of Labor to
carry out in the States, and to assist the States in paying
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for the cost of carrying out, workforce preparation activities
for at-risk youth, as described in this section.
(b) STATE USE OF FUNDS.—
(1) CORE
JOB
CORPS
ACTIVITIES.—The Sec-
retary of Labor shall use the funds made available for
a State through an allotment made under subsection
(c)(2) to establish and operate Job Corps centers as
described in chapter 2, if a center located in the State
received assistance under part B of title IV of the Job
Training Partnership Act for fiscal year 1996 and
was not closed in accordance with section 156.
(2) CORE WORK-BASED LEARNING OPPORTUNI-
TIES.—
(A) IN GENERAL.—The State shall use a
portion of the funds made available to the State
through an allotment received under subsection
(c)(3) to make grants to eligible entities in sub-
state areas, in accordance with the procedures
described in subsection (e), to assist the substate
areas in organizing summer jobs programs that
provide work-based learning opportunities in the
private and public sectors that are directly
linked to year-round school-to-work activities in
the substate areas.
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(B) LIMITATION.—No funds provided under
this subtitle shall be used to displace employed
workers.
(3) PERMISSIBLE ACTIVITIES.—The State may
use a portion of the funds made available to the State
through an allotment received under subsection (c)(3)
to—
(A) make grants to eligible entities in sub-
state areas, in accordance with the procedures
described in subsection (e), to assist each such
entity in carrying out alternative programs to
assist out-of-school at-risk youth in participating
in school-to-work activities in the substate area;
and
(B) carry out other workforce development
activities specifically for at-risk youth.
(4) LAWS AND PROCEDURES APPLICABLE TO EX-
PENDITURE OF STATE FUNDS.—Any funds received by
a State under this subtitle shall be expended only in
accordance with the laws and procedures applicable to
expenditures of the State’s own revenues, subject to the
terms and conditions required under this subtitle,
particularly this section.
(c) ALLOTMENTS AND RESERVATION.—
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(1) IN GENERAL.—The Secretary of Labor and
the Secretary of Education, acting jointly on the ad-
vice of the Federal Partnership, shall allot for the
State an amount equal to the total of—
(A) the amount made available for the State
under paragraph (2); and
(B) the amounts made available to the State
under subparagraphs (C), (D), and (E) of para-
graph (4).
(2) ALLOTMENTS BASED ON FISCAL YEAR 1996
APPROPRIATIONS.—Using a portion of the funds ap-
propriated under subsection (h) for a fiscal year, the
Secretary of Labor and the Secretary of Education,
acting jointly on the advice of the Federal Partner-
ship, shall make available for each State, for the oper-
ation of Job Corps centers—
(A) the amount that Job Corps centers in
the State expended for fiscal year 1996 under
part B of title IV of the Job Training Partner-
ship Act to enable the Secretary of Labor to
carry out activities described in paragraphs (2)
and (3), and to pay for rehabilitation expenses
described in paragraph (4), of section 156(a), as
determined under such paragraphs; and
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(B) such amount as may be necessary for
the planning, construction, and operation de-
scribed in section 156(b)(2)(C) for any center de-
scribed in such section in the State.
(3) RESERVATION OF FUNDS FOR INDIANS AND
NATIVE HAWAIIANS.—The Secretary of Labor and the
Secretary of Education, acting jointly, may reserve a
portion of the funds that are appropriated under sub-
section (h) for a fiscal year, and that are not made
available under paragraph (2), to carry out sub-
section (g).
(4) ALLOTMENTS BASED ON POPULATIONS.—
(A) DEFINITIONS.—As used in this para-
graph:
(i) 
INDIVIDUAL
IN
POVERTY.—The
term ‘‘individual in poverty’’ means an in-
dividual who—
(I) is not less than age 18;
(II) is not more than age 64; and
(III) is a member of a family (of
1 or more members) with an income at
or below the poverty line.
(ii) POVERTY LINE.—The term ‘‘pov-
erty line’’ means the poverty line (as de-
fined by the Office of Management and
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Budget, and revised annually in accordance
with section 673(2) of the Community Serv-
ices Block Grant Act (42 U.S.C. 9902(2))
applicable to a family of the size involved,
using the most recent available data pro-
vided by the Bureau of the Census, prior to
the program year for which the allotment is
made, and applying the definition of pov-
erty used by the Bureau of the Census in
compiling the 1990 decennial census.
(B) TOTAL ALLOTMENTS.—The Secretary of
Labor and the Secretary of Education, acting
jointly on the advice of the Federal Partnership,
shall use the remainder of the funds that are ap-
propriated under subsection (h) for a fiscal year,
and that are not made available under para-
graph (2) or (3), to make amounts available
under this paragraph.
(C) 
UNEMPLOYED
INDIVIDUALS.—From
funds equal to 331⁄3 percent of such remainder,
the Secretary of Labor and the Secretary of Edu-
cation, acting jointly on the advice of the Fed-
eral Partnership, shall make available to each
State an amount that bears the same relation-
ship to such funds as the average number of un-
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employed individuals (as determined by the Sec-
retary of Labor for the most recent 24-month pe-
riod for which data are available, prior to the
program year for which the allotment is made)
in the State bears to the average number of un-
employed individuals (as so determined) in the
United States.
(D) INDIVIDUALS IN POVERTY.—From funds
equal to 331⁄3 percent of such remainder, the Sec-
retary of Labor and the Secretary of Education,
acting jointly on the advice of the Federal Part-
nership, shall make available to each State an
amount that bears the same relationship to such
funds as the total number of individuals in pov-
erty in the State bears to the total number of in-
dividuals in poverty in the United States.
(E) AT-RISK YOUTH.—From funds equal to
331⁄3 percent of such remainder, the Secretary of
Labor and the Secretary of Education, acting
jointly on the advice of the Federal Partnership,
shall make available to each State an amount
that bears the same relationship to such funds as
the total number of at-risk youth in the State
bears to the total number of at-risk youth in the
United States.
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(f) WITHIN STATE DISTRIBUTION.—Of the funds allot-
ted to a State under subsection (c)(4) for workforce prepara-
tion activities for at-risk youth for a program year—
(1) 15 percent shall be reserved by the Governor
to carry out such activities through the statewide sys-
tem; and
(2) 85 percent shall be distributed to local enti-
ties to carry out such activities through the statewide
system.
(g) FINANCIAL ASSISTANCE FOR INDIANS AND NATIVE
HAWAIIANS.—The Secretary of Labor and the Secretary of
Education, acting jointly, may use the funds reserved under
subsection (c)(3), if any, to make grants to, or enter into
contracts or cooperative agreements with, the entities de-
scribed in section 107(c)(1) to carry out workforce prepara-
tion activities for at-risk youth who are Indians (as defined
in section 107(b)(2)) or Native Hawaiians (as defined in
section 107(b)(4)). To be eligible to receive such a grant,
or enter into such a contract or cooperative agreement, such
an entity shall submit to the Federal Partnership an appli-
cation at such time, in such manner, and containing such
information as the Federal Partnership may require.
(h) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this subtitle,
$2,100,000,000 for each of fiscal years 1998 through 2001.
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(i) EFFECTIVE DATE.—This chapter shall take effect
on July 1, 1998.
Subtitle C—Transition Provisions
SEC. 171. WAIVERS.
(a) WAIVER AUTHORITY.—
(1) IN
GENERAL.—Notwithstanding any other
provision of Federal law, and except as provided in
subsection (d), the Secretary may waive any require-
ment under any provision of law relating to a covered
activity, or of any regulation issued under such a
provision, for—
(A) a State that requests such a waiver and
submits an application as described in sub-
section (b); or
(B) a local entity that requests such a waiv-
er and complies with the requirements of sub-
section (c);
in order to assist the State or local entity in planning
or developing a statewide system or workforce develop-
ment activities, or workforce preparation activities
for at-risk youth, to be carried out through the state-
wide system.
(2) TERM.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), each waiver approved pursu-
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ant to this section shall be for a period beginning
on the date of the approval and ending on June
30, 1998.
(B) FAILURE TO SUBMIT INTERIM PLAN.—
If a State receives a waiver under this section
and fails to submit an interim plan under sec-
tion 173 by June 30, 1997, the waiver shall be
deemed to terminate on September 30, 1997. If
a local entity receives a waiver under this sec-
tion, and the State in which the local entity is
located fails to submit an interim plan under
section 173 by June 30, 1997, the waiver shall
be deemed to terminate on September 30, 1997.
(b) STATE REQUEST FOR WAIVER.—
(1) IN GENERAL.—A State may submit to the
Secretary a request for a waiver of 1 or more require-
ments referred to in subsection (a). The request may
include a request for different waivers with respect to
different areas within the State.
(2) APPLICATION.—To be eligible to receive a
waiver described in subsection (a), a State shall sub-
mit an application to the Secretary at such time, in
such manner, and containing such information as the
Secretary may require, including information—
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(A) identifying the requirement to be
waived and the goal that the State (or the local
agency applying to the State under subsection
(c)) intends to achieve through the waiver;
(B) identifying, and describing the actions
that the State will take to remove, similar State
requirements;
(C) describing the activities to which the
waiver will apply, including information on how
the activities may be continued, or related to ac-
tivities carried out, under the statewide system of
the State;
(D) describing the number and type of per-
sons to be affected by such waiver; and
(E) providing evidence of support for the
waiver request by the State agencies or officials
with jurisdiction over the requirement to be
waived.
(c) LOCAL ENTITY REQUEST FOR WAIVER.—
(1) IN GENERAL.—A local entity that seeks a
waiver of such a requirement shall submit to the
State a request for the waiver and an application
containing sufficient information to enable the State
to comply with the requirements of subsection (b)(2).
The State shall determine whether to submit a request
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and an application for a waiver to the Secretary, as
provided in subsection (b).
(2) TIME LIMIT.—
(A) IN GENERAL.—The State shall make a
determination concerning whether to submit the
request and application for a waiver as described
in paragraph (1) not later than 30 days after
the date on which the State receives the applica-
tion from the local entity.
(B) DIRECT SUBMISSION.—
(i) IN GENERAL.—If the State does not
make a determination to submit or does not
submit the request and application within
the 30-day time period specified in sub-
paragraph (A), the local entity may submit
the request and application to the Sec-
retary.
(ii) REQUIREMENTS.—In submitting
such a request, the local entity shall obtain
the agreement of the State involved to com-
ply with the requirements of this section
that would otherwise apply to a State sub-
mitting a request for a waiver. In reviewing
an application submitted by a local entity,
the Secretary shall comply with the require-
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ments of this section that would otherwise
apply to the Secretary with respect to re-
view of such an application submitted by a
State.
(d) WAIVERS NOT AUTHORIZED.—The Secretary may
not waive any requirement of any provision referred to in
subsection (a), or of any regulation issued under such provi-
sion, relating to—
(1) the allocation of funds to States, local enti-
ties, or individuals;
(2) public health or safety, civil rights, occupa-
tional safety and health, environmental protection,
displacement of employees, or fraud and abuse;
(3) the eligibility of an individual for participa-
tion in a covered activity, except in a case in which
the State or local entity can demonstrate that the in-
dividuals who would have been eligible to participate
in such activity without the waiver will participate
in a similar covered activity; or
(4) a required supplementation of funds by the
State or a prohibition against the State supplanting
such funds.
(e) ACTIVITIES.—Subject to subsection (d), the Sec-
retary may approve a request for a waiver described in sub-
section (a) that would enable a State or local entity to—
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(1) use the assistance that would otherwise have
been used to carry out 2 or more covered activities (if
the State or local entity were not using the assistance
as described in this section)—
(A) to address the high priority needs of un-
employed persons and at-risk youth in the ap-
propriate State or community for workforce em-
ployment activities or workforce education ac-
tivities;
(B) to improve efficiencies in the delivery of
the covered activities; or
(C) in the case of overlapping or duplicative
activities—
(i) by combining the covered activities
and funding the combined activities; or
(ii) by eliminating 1 of the covered ac-
tivities and increasing the funding to the
remaining covered activity; and
(2) use the assistance that would otherwise have
been used for administrative expenses relating to a
covered activity (if the State or local entity were not
using the assistance as described in this section) to
pay for the cost of developing an interim State plan
described in section 173 or a State plan described in
section 104.
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(f) APPROVAL OR DISAPPROVAL.—The Secretary shall
approve or disapprove any request submitted pursuant to
subsection (b) or (c), not later than 45 days after the date
of the submission, and shall issue a decision that shall in-
clude the reasons for approving or disapproving the request.
(g) FAILURE TO ACT.—If the Secretary fails to ap-
prove or disapprove the request within the 45-day period
described in subsection (f), the request shall be deemed to
be approved on the day after such period ends. If the Sec-
retary subsequently determines that the waiver relates to
a matter described in subsection (d) and issues a decision
that includes the reasons for the determination, the waiver
shall be deemed to terminate on the date of issuance of the
decision.
(h) DEFINITION.—As used in this section:
(1) LOCAL
ENTITY.—The term ‘‘local entity’’
means—
(A) a local educational agency, with respect
to any act by a local agency or organization re-
lating to a covered activity that is a workforce
education activity; and
(B) the local public or private agency or or-
ganization responsible for carrying out the cov-
ered activity at issue, with respect to any act by
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a local agency or organization relating to any
other covered activity.
(2) 
SECRETARY.—The 
term 
‘‘Secretary’’
means—
(A) the Secretary of Labor, with respect to
any act relating to a covered activity carried out
by the Secretary of Labor; and
(B) the Secretary of Education, with respect
to any act relating to a covered activity carried
out by the Secretary of Education.
(3) STATE.—The term ‘‘State’’ means—
(A) a State educational agency, with respect
to any act by a State entity relating to a covered
activity that is a workforce education activity;
and
(B) the Governor, with respect to any act by
a State entity relating to any other covered ac-
tivity.
(i) CONFORMING AMENDMENTS.—
(1) Section 501 of the School-to-Work Opportuni-
ties Act of 1994 (20 U.S.C. 6211) is amended—
(A) in subsection (a), by striking ‘‘sections
502 and 503’’ and inserting ‘‘section 502’’;
(B) in subsection (b)(2)(B)(ii)—
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(i) by striking ‘‘section 502(a)(1)(C) or
503(a)(1)(C), as appropriate,’’ and insert-
ing ‘‘section 502(a)(1)(C)’’; and
(ii) by striking ‘‘section 502 or 503, as
appropriate,’’ and inserting ‘‘section 502’’;
(C) in subsection (c), by striking ‘‘section
502 or 503’’ and inserting ‘‘section 502’’; and
(D) by striking ‘‘Secretaries’’ each place the
term appears and inserting ‘‘Secretary of Edu-
cation’’.
(2) Section 502(b) of such Act (20 U.S.C.
6212(b)) is amended—
(A) in paragraph (4), by striking the semi-
colon and inserting ‘‘; and’’;
(B) in paragraph (5), by striking ‘‘; and’’
and inserting a period; and
(C) by striking paragraph (6).
(3) Section 503 of such Act (20 U.S.C. 6213) is
repealed.
(4) Section 504 of such Act (20 U.S.C. 6214) is
amended—
(A) in subsection (a)(2)(B), by striking
clauses (i) and (ii) and inserting the following
clauses:
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‘‘(i) the provisions of law listed in
paragraphs (2) through (5) of section
502(b);
‘‘(ii) the Job Training Partnership Act
(29 U.S.C. 1501 et seq.); and
‘‘(iii) the Carl D. Perkins Vocational
and Applied Technology Education Act (20
U.S.C. 2301 et seq.).’’; and
(B) in subsection (b), by striking ‘‘para-
graphs (1) through (3), and paragraphs (5) and
(6), of section 503(b)’’ and inserting ‘‘para-
graphs (2) through (4) and paragraphs (6) and
(7) of section 505(b)’’.
(5) Section 505(b) of such Act (20 U.S.C.
6215(b)) is amended to read as follows:
‘‘(b) USE OF FUNDS.—A State may use, under the re-
quirements of this Act, Federal funds that are made avail-
able to the State and combined under subsection (a) to
carry out school-to-work activities, except that the provi-
sions relating to—
‘‘(1) the matters specified in section 502(c);
‘‘(2) basic purposes or goals;
‘‘(3) maintenance of effort;
‘‘(4) distribution of funds;
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‘‘(5) eligibility of an individual for participa-
tion;
‘‘(6) public health or safety, labor standards,
civil rights, occupational safety and health, or envi-
ronmental protection; or
‘‘(7) prohibitions or restrictions relating to the
construction of buildings or facilities;
that relate to the program through which the funds de-
scribed in subsection (a)(2)(B) were made available, shall
remain in effect with respect to the use of such funds.’’.
SEC. 172. FLEXIBILITY DEMONSTRATION PROGRAM.
(a) DEFINITION.—As used in this section:
(1) ELIGIBLE STATE.—The term ‘‘eligible State’’
means a State that—
(A)(i) has submitted an interim State plan
under section 173;
(ii) has an executed memorandum of under-
standing with the Federal Government; or
(iii) is a designated ‘‘Ed-Flex Partnership
State’’ under section 311(e) of the Goals 2000:
Educate America Act (20 U.S.C. 5891(e)); and
(B) waives State statutory or regulatory re-
quirements relating to workforce development ac-
tivities while holding local entities within the
State that are effected by such waivers account-
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able for the performance of the participants who
are affected by such waivers.
(2) LOCAL
ENTITY; SECRETARY; STATE.—The
terms ‘‘local entity’’, ‘‘Secretary’’, and ‘‘State’’ have
the meanings given the terms in section 171(h).
(b) DEMONSTRATION PROGRAM.—
(1) ESTABLISHMENT.—In addition to providing
for the waivers described in section 171(a), the Sec-
retary shall establish a workforce flexibility dem-
onstration program under which the Secretary shall
permit not more than 6 eligible States (or local enti-
ties within such States) to waive any statutory or
regulatory requirement applicable to any covered ac-
tivity described in section 171(a), other than the re-
quirements described in section 171(d).
(2) SELECTION
OF
PARTICIPANT
STATES.—In
carrying out the program under paragraph (1), the
Secretary shall select for participation in the pro-
gram 3 eligible States that each have a population of
not less than 3,500,000 individuals and 3 eligible
States that each have a population of not more than
3,500,000 individuals, as determined in accordance
with the most recent decennial census of the popu-
lation as provided by the Bureau of the Census.
(3) APPLICATION.—
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(A) SUBMISSION.—To be eligible to partici-
pate in the program established under paragraph
(1), a State shall prepare and submit an appli-
cation, in accordance with section 171(b)(2),
that includes—
(i) a description of the process the eli-
gible State will use to evaluate applications
from local entities requesting waivers of—
(I) Federal statutory or regu-
latory requirements described in sec-
tion 171(a); and
(II) State statutory or regulatory
requirements relating to workforce de-
velopment activities; and
(ii) a detailed description of the State
statutory or regulatory requirements relat-
ing to workforce development activities that
the State will waive.
(B) APPROVAL.—The Secretary may ap-
prove an application submitted under subpara-
graph (A) if the Secretary determines that such
application demonstrates substantial promise of
assisting the State and local entities within such
State in carrying out comprehensive reform of
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workforce development activities and in other-
wise meeting the purposes of this Act.
(C) LOCAL ENTITY APPLICATIONS.—A State
participating in the program established under
paragraph (1) shall not approve an application
by a local entity for a waiver under this sub-
section unless the State determines that such
waiver will assist the local entity in reaching the
goals of the local entity.
(4) MONITORING.—A State participating in the
program established under paragraph (1) shall annu-
ally monitor the activities of local entities receiving
waivers under this subsection and shall submit an an-
nual report regarding such monitoring to the Sec-
retary. The Secretary shall periodically review the
performance of such States and shall terminate the
waiver of a State under this subsection if the Sec-
retary determines, after notice and opportunity for a
hearing, that the performance of such State has been
inadequate to a level that justifies discontinuation of
such authority.
(5) REFERENCE.—Each eligible State partici-
pating in the program established under paragraph
(1) shall be referred to as a ‘‘Work-Flex Partnership
State’’.
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SEC. 173. INTERIM STATE PLANS.
(a) IN GENERAL.—For a State or local entity in a
State to use a waiver received under section 171 or 172
through June 30, 1998, and for a State to be eligible to
submit a State plan described in section 104 for program
year 1998, the Governor of the State shall submit an in-
terim State plan to the Federal Partnership. The Governor
shall submit the plan not later than June 30, 1997.
(b) REQUIREMENTS.—The interim State plan shall
comply with the requirements applicable to State plans de-
scribed in section 104.
(c) PROGRAM YEAR.—In submitting the interim State
plan, the Governor shall indicate whether the plan is sub-
mitted—
(1) for review and approval for program year
1997; or
(2) solely for review.
(d) REVIEW.—In reviewing an interim State plan, the
Secretary of Labor and the Secretary of Education, acting
jointly on the advice of the Federal Partnership, may—
(1) in the case of a plan submitted for review
and approval for program year 1997—
(A) approve the plan and permit the State
to use a waiver as described in section 171 or
172 to carry out the plan; or
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(B)(i) disapprove the plan and provide to
the State reasons for the disapproval; and
(ii) direct the Federal Partnership to pro-
vide technical assistance to the State for develop-
ing an approvable plan to be submitted under
section 104 for program year 1998; and
(2) in the case of a plan submitted solely for re-
view, review the plan and provide to the State tech-
nical assistance for developing an approvable plan to
be submitted under section 104 for program year
1998.
(e) EFFECT OF DISAPPROVAL.—Disapproval of an in-
terim plan shall not affect the ability of a State to use a
waiver as described in section 171 or 172 through June 30,
1998.
SEC. 174. APPLICATIONS AND PLANS UNDER COVERED
ACTS.
Notwithstanding any other provision of law, no State
or local entity shall be required to comply with any provi-
sion of a covered Act that would otherwise require the entity
to submit an application or a plan to a Federal agency
during fiscal year 1996 or 1997 for funding of a covered
activity. In determining whether to provide funding to the
State or local entity for the covered activity, the Secretary
of Labor or the Secretary of Education, as appropriate,
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(b) ADULT EDUCATION ACT.—
(1) IN GENERAL.—Section 313(a) of the Adult
Education Act (20 U.S.C. 1201b(a)) is amended by
striking ‘‘for each of the fiscal years’’ and all that fol-
lows through ‘‘1995’’ and inserting ‘‘for each of fiscal
years 1993 through 1998’’.
(2) STATE LITERACY RESOURCE CENTERS.—Sec-
tion 356(k) of such Act (20 U.S.C. 1208aa(k)) is
amended by striking ‘‘for each of the fiscal years 1994
and 1995’’ and inserting ‘‘for each of fiscal years
1994 and 1995’’.
(3) BUSINESS, INDUSTRY, LABOR, AND
EDU-
CATION PARTNERSHIPS FOR WORKPLACE LITERACY.—
Section 371(e)(1) of such Act (20 U.S.C. 1211(e)(1))
is amended by striking ‘‘for each of the fiscal years’’
and all that follows through ‘‘1995’’ and inserting
‘‘for each of fiscal years 1993 through 1998’’.
(4) NATIONAL INSTITUTE FOR LITERACY.—Sec-
tion 384(n)(1) of such Act (20 U.S.C. 1213c(n)(1)) is
amended by striking ‘‘for each of the fiscal years’’ and
all that follows through ‘‘1996’’ and inserting ‘‘for
each of fiscal years 1992 through 1995’’.
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Subtitle D—National Activities
SEC. 181. FEDERAL PARTNERSHIP.
(a) ESTABLISHMENT.—There is established in the De-
partment of Labor and the Department of Education a
Workforce Development Partnership, under the joint control
of the Secretary of Labor and the Secretary of Education.
(b) ADMINISTRATION.—Notwithstanding the Depart-
ment of Education Organization Act (20 U.S.C. 3401 et
seq.), the General Education Provisions Act (20 U.S.C.
1221 et seq.), the Act entitled ‘‘An Act To Create a Depart-
ment of Labor’’, approved March 4, 1913 (29 U.S.C. 551
et seq.), and section 169 of the Job Training Partnership
Act (29 U.S.C. 1579), the Secretary of Labor and the Sec-
retary of Education, acting jointly, in accordance with the
plan approved or determinations made by the President
under section 187(c), shall provide for, and exercise final
authority over, the effective and efficient administration of
this title (other than subtitle B), the Act amended by sub-
title B of title II, the provisions amended by sections 241
and 242, and the officers and employees of the Federal Part-
nership.
(c) RESPONSIBILITIES OF SECRETARY OF LABOR AND
SECRETARY OF EDUCATION.—The Secretary of Labor and
the Secretary of Education, working jointly through the
Federal Partnership, shall—
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(1) approve applications and plans under sec-
tions 104, 107, 108, 109, 173, and 184;
(2) award financial assistance under sections
102, 107, 108, 109, 122(a), 161, 184, and 185;
(3) approve State benchmarks in accordance
with section 121(c); and
(4) apply sanctions described in section 122(b).
(d) WORKPLANS.—The Secretary of Labor and the
Secretary of Education, acting jointly, shall prepare and
submit the workplans described in sections 187(c) and
188(b).
(e) INFORMATION AND TECHNICAL ASSISTANCE RE-
SPONSIBILITIES.—The Secretary of Labor and the Sec-
retary of Education, acting jointly, shall, in appropriate
cases, disseminate information and provide technical assist-
ance to States on the best practices for establishing and car-
rying out activities through statewide systems, including
model programs to provide structured work and learning
experiences for welfare recipients.
SEC. 182. NATIONAL WORKFORCE DEVELOPMENT BOARD
AND PERSONNEL.
(a) NATIONAL BOARD.—
(1) COMPOSITION.—The Federal Partnership
shall be directed by a National Board that shall be
composed of 13 individuals, including—
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(A) 7 individuals who are representative of
business and industry in the United States, ap-
pointed by the President by and with the advice
and consent of the Senate;
(B) 2 individuals who are representative of
labor and workers in the United States, ap-
pointed by the President by and with the advice
and consent of the Senate;
(C) 2 individuals who are representative of
education providers, 1 of whom is a State or
local adult education provider and 1 of whom is
a State or local vocational education provider,
appointed by the President by and with the ad-
vice and consent of the Senate; and
(D) 2 Governors, representing different po-
litical parties, appointed by the President by
and with the advice and consent of the Senate.
(2) TERMS.—Each member of the National
Board shall serve for a term of 3 years, except that,
as designated by the President—
(A) 5 of the members first appointed to the
National Board shall serve for a term of 2 years;
(B) 4 of the members first appointed to the
National Board shall serve for a term of 3 years;
and
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(C) 4 of the members first appointed to the
National Board shall serve for a term of 4 years.
(3) VACANCIES.—Any vacancy in the National
Board shall not affect the powers of the National
Board, but shall be filled in the same manner as the
original appointment. Any member appointed to fill
such a vacancy shall serve for the remainder of the
term for which the predecessor of such member was
appointed.
(4) DUTIES
AND
POWERS
OF
THE
NATIONAL
BOARD.—
(A) OVERSIGHT.—Subject to section 181(b),
the National Board shall oversee all activities of
the Federal Partnership.
(B) RECOMMENDATIONS ABOUT IMPLEMEN-
TATION.—If the Secretary of Labor and the Sec-
retary of Education fail to reach agreement with
respect to the implementation of their duties and
responsibilities under this Act (other than sub-
title B) and the amendments made by this Act,
the National Board shall review the issues about
which disagreement exists and make a rec-
ommendation to the President regarding a solu-
tion to the disagreement.
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(5) CHAIRPERSON.—The position of Chairperson
of the National Board shall rotate annually among
the appointed members described in paragraph
(1)(A).
(6) MEETINGS.—The National Board shall meet
at the call of the Chairperson but not less often than
4 times during each calendar year. Seven members of
the National Board shall constitute a quorum. All de-
cisions of the National Board with respect to the exer-
cise of the duties and powers of the National Board
shall be made by a majority vote of the members of
the National Board.
(7) COMPENSATION AND TRAVEL EXPENSES.—
(A) COMPENSATION.—In accordance with
the plan approved or the determinations made
by the President under section 187(c), each mem-
ber of the National Board shall be compensated
at a rate to be fixed by the President but not to
exceed the daily equivalent of the maximum rate
authorized for a position above GS–15 of the
General Schedule under section 5108 of title 5,
United States Code, for each day (including
travel time) during which such member is en-
gaged in the performance of the duties of the Na-
tional Board.
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(B) EXPENSES.—While away from their
homes or regular places of business on the busi-
ness of the National Board, members of such Na-
tional Board shall be allowed travel expenses, in-
cluding per diem in lieu of subsistence, at rates
authorized for employees of agencies under sub-
chapter I of chapter 57 of title 5, United States
Code, for persons employed intermittently in the
Government service.
(8) DATE
OF
APPOINTMENT.—The National
Board shall be appointed not later than 120 days
after the date of enactment of this Act.
(b) DUTIES AND POWERS OF THE FEDERAL PARTNER-
SHIP.—The Federal Partnership shall—
(1) oversee the development, maintenance, and
continuous improvement of the nationwide integrated
labor market and occupational information system
described in section 183, and the relationship between
such system and the job placement accountability sys-
tem described in section 121(d);
(2) establish model benchmarks for each of the
benchmarks referred to in paragraph (1), (2), or (3)
of section 121(c), at achievable levels based on existing
(as of the date of the establishment of the benchmarks)
workforce development efforts in the States;
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(3) negotiate State benchmarks with States in
accordance with section 121(c);
(4) provide advice to the Secretary of Labor and
the Secretary of Education regarding the review and
approval of applications and plans described in sec-
tion 181(c)(1) and the approval of financial assist-
ance described in section 181(c)(2);
(5) receive and review reports described in sec-
tion 121(a);
(6) prepare and submit to the appropriate com-
mittees of Congress an annual report on the absolute
and relative performance of States toward reaching
the State benchmarks;
(7) provide advice to the Secretary of Labor and
the Secretary of Education regarding applying sanc-
tions described in section 122(b);
(8) review all federally funded programs provid-
ing workforce development activities or workforce
preparation activities for at-risk youth, other than
programs carried out under this title, and submit rec-
ommendations to Congress on how the federally fund-
ed programs could be integrated into the statewide
systems of the States, including recommendations on
the development of common terminology for activities
and services provided through the programs;
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(9) prepare an annual plan for the nationwide
integrated labor market and occupational information
system, as described in section 183(b)(2); and
(10) perform the duties specified for the Federal
Partnership in this Act and the amendments made by
this Act.
(c) DIRECTOR.—
(1) IN GENERAL.—There shall be in the Federal
Partnership a Director, who shall be appointed by the
President, by and with the advice and consent of the
Senate.
(2) COMPENSATION.—The Director shall be com-
pensated at the rate provided for level IV of the Exec-
utive Schedule under section 5315 of title 5, United
States Code.
(3) DUTIES.—The Director shall make rec-
ommendations to the National Board regarding the
activities described in subsection (b).
(4) DATE OF APPOINTMENT.—The Director shall
be appointed not later than 120 days after the date
of enactment of this Act.
(d) PERSONNEL.—
(1) APPOINTMENTS.—The Director may appoint
and fix the compensation of such officers and employ-
ees as may be necessary to carry out the functions of
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the Federal Partnership. Except as otherwise provided
by law, such officers and employees shall be appointed
in accordance with the civil service laws and their
compensation fixed in accordance with title 5, United
States Code.
(2) EXPERTS AND CONSULTANTS.—The Director
may obtain the services of experts and consultants in
accordance with section 3109 of title 5, United States
Code, and compensate such experts and consultants
for each day (including travel time) at rates not in
excess of the rate of pay for level IV of the Executive
Schedule under section 5315 of such title. The Direc-
tor may pay experts and consultants who are serving
away from their homes or regular places of business
travel expenses and per diem in lieu of subsistence at
rates authorized by sections 5702 and 5703 of such
title for persons in Government service employed
intermittently.
(3) DETAIL OF GOVERNMENT EMPLOYEES.—Any
Federal Government employee may be detailed to the
Federal Partnership without reimbursement, and such
detail shall be without interruption or loss of civil
service or privilege. The Secretary of Education and
the Secretary of Labor shall detail a sufficient num-
ber of employees to the Federal Partnership for the
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period beginning October 1, 1996 and ending June
30, 1998 to carry out the functions of the Federal
Partnership during such period.
(4) USE OF VOLUNTARY AND UNCOMPENSATED
SERVICES.—Notwithstanding section 1342 of title 31,
United States Code, the Secretary of Labor and the
Secretary of Education are authorized to accept vol-
untary and uncompensated services in furtherance of
the purposes of this Act.
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated for fiscal years 1996 and
1997 $500,000 to the National Board for the administra-
tion of the duties and responsibilities of the Federal Part-
nership under this title.
SEC. 183. LABOR MARKET AND OCCUPATIONAL INFORMA-
TION.
(a) FEDERAL RESPONSIBILITIES.—The Federal Part-
nership, in accordance with the provisions of this section,
shall oversee the development, maintenance, and continuous
improvement of a nationwide integrated labor market and
occupational information system that shall include—
(1) statistical data from cooperative statistical
survey and projection programs and data from ad-
ministrative reporting systems, that, taken together,
shall enumerate, estimate, and project the supply and
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demand for labor at the substate, State, and national
levels in a timely manner, including data on—
(A) the demographics, socioeconomic charac-
teristics, and current employment status of the
substate, State, and national populations (as of
the date of the collection of the data), including
self-employed, part-time, and seasonal workers;
(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-
lations;
(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 the information is collected by the
States; and
(E) the incidence, industrial and geographi-
cal location, and number of workers displaced by
permanent layoffs and plant closings;
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(2) State and substate area employment and
consumer information (which shall be current, com-
prehensive, automated, accessible, easy to understand,
and in a form useful for facilitating immediate em-
ployment, entry into education and training pro-
grams, and career exploration) on—
(A) job openings, locations, hiring require-
ments, and application procedures, including
profiles of industries in the local labor market
that describe the nature of work performed, em-
ployment requirements, and patterns in wages
and benefits;
(B) jobseekers, including the education,
training, and employment experience of the job-
seekers; and
(C) the cost and effectiveness of providers of
workforce employment activities, workforce edu-
cation activities, and flexible workforce activities,
including the percentage of program completion,
acquisition of skills to meet industry-recognized
skill standards, continued education, job place-
ment, and earnings, by participants, and other
information that may be useful in facilitating
informed choices among providers by partici-
pants;
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(3) technical standards for labor market and oc-
cupational information that will—
(A) ensure compatibility of the information
and the ability to aggregate the information
from substate areas to State and national levels;
(B) support standardization and aggrega-
tion of the data from administrative reporting
systems;
(C) include—
(i) classification and coding systems
for industries, occupations, skills, programs,
and courses;
(ii) nationally standardized definitions
of labor market terms, including terms re-
lated to State benchmarks established pursu-
ant to section 121(c);
(iii) quality control mechanisms for
the collection and analysis of labor market
and occupational information; and
(iv) common schedules for collection
and dissemination of labor market and oc-
cupational information; and
(D) eliminate gaps and duplication in sta-
tistical undertakings, with a high priority given
to the systemization of wage surveys;
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(4) an analysis of data and information de-
scribed in paragraphs (1) and (2) for uses such as—
(A) national, State, and substate area eco-
nomic policymaking;
(B) planning and evaluation of workforce
development activities;
(C) the implementation of Federal policies,
including the allocation of Federal funds to
States and substate areas;
(D) research on labor market and occupa-
tional dynamics; and
(E) career development planning and deci-
sionmaking;
(5) dissemination mechanisms for data and
analysis, including mechanisms that may be stand-
ardized among the States; and
(6) programs of technical assistance for States
and substate areas in the development, maintenance,
utilization, and continuous improvement of the data,
information, standards, analysis, and dissemination
mechanisms, described in paragraphs (1) through (5),
including training of counselors, teachers, and other
persons to use the products of the nationwide inte-
grated labor market and occupational information
system to improve career decisionmaking.
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(b) JOINT FEDERAL-STATE RESPONSIBILITIES.—
(1) IN
GENERAL.—The nationwide integrated
labor market and occupational information system
shall be planned, administered, overseen, and evalu-
ated through a cooperative governance structure in-
volving the Federal Government and the States receiv-
ing financial assistance under this title.
(2) ANNUAL
PLAN.—The Federal Partnership
shall, with the assistance of the Bureau of Labor Sta-
tistics and other Federal agencies, where appropriate,
prepare an annual plan that shall be the mechanism
for achieving the cooperative Federal-State governance
structure for the nationwide integrated labor market
and occupational information system. The plan
shall—
(A) establish goals for the development and
improvement of a nationwide integrated labor
market and occupational information system
based on information needs for achieving eco-
nomic growth and productivity, accountability,
fund allocation equity, and an understanding of
labor market characteristics and dynamics;
(B) describe the elements of the system, in-
cluding—
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(i) standards, definitions, formats, col-
lection methodologies, and other necessary
system elements, for use in collecting the
data and information described in para-
graphs (1) and (2) of subsection (a); and
(ii) assurances that—
(I) data will be sufficiently timely
and detailed for uses including the uses
described in subsection (a)(4);
(II) administrative records will be
standardized to facilitate the aggrega-
tion of data from substate areas to
State and national levels and to sup-
port the creation of new statistical se-
ries from program records; and
(III) paperwork and reporting re-
quirements on employers and individ-
uals will be reduced;
(C) recommend needed improvements in ad-
ministrative reporting systems to be used for the
nationwide integrated labor market and occupa-
tional information system;
(D) describe the current spending on inte-
grated labor market and occupational informa-
tion activities from all sources, assess the ade-
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quacy of the funds spent, and identify the spe-
cific budget needs of the Federal Government and
States with respect to implementing and improv-
ing the nationwide integrated labor market and
occupational information system;
(E) develop a budget for the nationwide in-
tegrated labor market and occupational informa-
tion system that—
(i) accounts for all funds described in
subparagraph (D) and any new funds made
available pursuant to this title; and
(ii) describes the relative allotments to
be made for—
(I) operating the cooperative sta-
tistical programs pursuant to sub-
section (a)(1);
(II) developing and providing em-
ployment and consumer information
pursuant to subsection (a)(2);
(III) 
ensuring 
that 
technical
standards are met pursuant to sub-
section (a)(3); and
(IV) providing the analysis, dis-
semination mechanisms, and technical
assistance under paragraphs (4), (5),
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and (6) of subsection (a), and match-
ing data;
(F) describe the involvement of States in de-
veloping the plan by holding formal consulta-
tions conducted in cooperation with representa-
tives of the Governors of each State or the State
workforce development board described in section
105, where appropriate, pursuant to a process
established by the Federal Partnership; and
(G) provide for technical assistance to the
States for the development of statewide com-
prehensive labor market and occupational infor-
mation systems described in subsection (c), in-
cluding assistance with the development of easy-
to-use software and hardware, or uniform infor-
mation displays.
For purposes of applying Office of Management and
Budget Circular A–11 to determine persons eligible to
participate in deliberations relating to budget issues
for the development of the plan, the representatives of
the Governors of each State and the State workforce
development board described in subparagraph (F)
shall be considered to be employees of the Department
of Labor.
(c) STATE RESPONSIBILITIES.—
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(1) DESIGNATION OF STATE AGENCY.—In order
to receive Federal financial assistance under this title,
the Governor of a State shall—
(A) establish an interagency process for the
oversight of a statewide comprehensive labor
market and occupational information system
and for the participation of the State in the co-
operative Federal-State governance structure for
the nationwide integrated labor market and oc-
cupational information system; and
(B) designate a single State agency or en-
tity within the State to be responsible for the
management of the statewide comprehensive
labor market and occupational information sys-
tem.
(2) DUTIES.—In order to receive Federal finan-
cial assistance under this title, the State agency or
entity within the State designated under paragraph
(1)(B) shall—
(A) consult with employers and local
workforce development boards described in sec-
tion 118(b), where appropriate, about the labor
market relevance of the data to be collected and
displayed through the statewide comprehensive
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labor market and occupational information sys-
tem;
(B) develop, maintain, and continuously
improve the statewide comprehensive labor mar-
ket and occupational information system, which
shall—
(i) include all of the elements described
in paragraphs (1), (2), (3), (4), (5), and (6)
of subsection (a); and
(ii) provide the consumer information
described in clauses (v) and (vi) of section
106(a)(2)(B) in a manner that shall be re-
sponsive to the needs of business, industry,
workers, and jobseekers;
(C) ensure the performance of contract and
grant responsibilities for data collection, analy-
sis, and dissemination, through the statewide
comprehensive labor market and occupational
information system;
(D) conduct such other data collection,
analysis, and dissemination activities to ensure
that State and substate area labor market and
occupational information is comprehensive;
(E) actively seek the participation of other
State and local agencies, with particular atten-
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tion to State education, economic development,
human services, and welfare agencies, in data
collection, analysis, and dissemination activities
in order to ensure complementarity and compat-
ibility among data;
(F) participate in the development of the
national annual plan described in subsection
(b)(2); and
(G) ensure that the matches required for the
job placement accountability system by section
121(d)(2)(A) are made for the State and for
other States.
(3) RULE OF CONSTRUCTION.—Nothing in this
title shall be construed as limiting the ability of a
State agency to conduct additional data collection,
analysis, and dissemination activities with State
funds or with Federal funds from sources other than
this title.
(d) EFFECTIVE DATE.—This section shall take effect
on July 1, 1998.
SEC. 184. NATIONAL DISCRETIONARY GRANTS.
(a) NATIONAL GRANTS.—Using funds made available
under section 124(b)(5), the Secretary of Labor and the Sec-
retary of Education, acting jointly on the advice of the Fed-
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eral Partnership, may in a timely manner award a na-
tional grant—
(1) to an eligible entity described in subsection
(b) to carry out the activities described in such sub-
section; and
(2) at the request of an officer described in sub-
section (c), to such an officer to carry out the activi-
ties described in such subsection.
(b) RAPID RESPONSE GRANTS.—
(1) IN GENERAL.—
(A) 
MAJOR
ECONOMIC
DISLOCATION.—
Funds made available under this section to an
eligible entity described in this subsection may
be used to provide adjustment assistance to work-
ers affected by a major economic dislocation that
results from a closure, layoff, or realignment de-
scribed in section 3(8)(B).
(B) EMERGENCY
DETERMINATION.—Such
funds may also be used to provide adjustment as-
sistance to dislocated workers whenever the Fed-
eral Partnership (with the agreement of the Gov-
ernor involved) determines that an emergency ex-
ists with respect to any particular distressed in-
dustry or any particularly distressed area. The
Federal Partnership may make arrangements for
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the immediate provision of such emergency fi-
nancial assistance for the purposes of this sub-
section with any necessary supportive docu-
mentation to be submitted on a date agreed to by
the Governor and the Federal Partnership.
(2) ELIGIBLE ENTITIES.—To be eligible to re-
ceive a grant under this section for activities de-
scribed in this subsection, an eligible entity shall be
a State or local entity.
(3) APPLICATION.—To be eligible to receive a
grant under this section for activities described in
this subsection, an eligible entity shall submit an ap-
plication to the Federal Partnership at such time, in
such manner, and containing such information as the
Federal Partnership determines to be appropriate.
(c) DISASTER RELIEF EMPLOYMENT ASSISTANCE.—
(1) IN GENERAL.—Funds made available under
this section to officers described in this subsection
shall be used solely to provide individuals in a disas-
ter area with employment in projects to provide cloth-
ing, shelter, and other humanitarian assistance for
disaster victims and in projects regarding the demoli-
tion, cleanup, repair, renovation, and reconstruction
of damaged and destroyed structures, facilities, and
lands located within the disaster area.
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(2) OFFICERS.—To be eligible to receive a grant
under this section for activities described in this sub-
section, an officer shall be a chief executive officer of
a State within which is located an area that has suf-
fered an emergency or a major disaster as defined in
paragraph (1) or (2), respectively, of section 102 of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122(1) and (2)) (referred
to in this section as a ‘‘disaster area’’).
SEC. 185. NATIONAL CENTER FOR RESEARCH IN EDU-
CATION AND WORKFORCE DEVELOPMENT.
(a) GRANTS
AUTHORIZED.—From amounts made
available under section 124(b)(7), the Secretary of Labor
and the Secretary of Education, acting jointly on the advice
of the Federal Partnership, are authorized to award a
grant, on a competitive basis, to an institution of higher
education, public or private nonprofit organization or
agency, or a consortium of such institutions, organizations,
or agencies, to enable such institution, organization, agen-
cy, or consortium to establish a national center to carry
out the activities described in subsection (b).
(b) AUTHORIZED ACTIVITIES.—Grant funds made
available under this section shall be used by the national
center assisted under subsection (a)—
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(1) to increase the effectiveness and improve the
implementation of workforce development programs,
including conducting research and development and
providing technical assistance with respect to—
(A) combining academic and vocational
education;
(B) connecting classroom instruction with
work-based learning;
(C) creating a continuum of educational
programs that provide multiple exit points for
employment, which may include changes or de-
velopment of instructional materials or curricu-
lum;
(D) establishing high quality support serv-
ices for all students to ensure access to workforce
development programs, educational success, and
job placement assistance;
(E) developing new models for remediation
of basic academic skills;
(F) identifying ways to establish links
among educational and job training programs at
the State and local levels;
(G) developing new models for career guid-
ance, career information, and counseling serv-
ices;
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(H) identifying economic and labor market
changes that will affect workforce needs;
(I) developing model programs for the tran-
sition of members of the Armed Forces from
military service to civilian employment;
(J) conducting preparation of teachers,
counselors, administrators, other professionals,
and volunteers, who work with programs funded
under this title; and
(K) obtaining information on practices in
other countries that may be adapted for use in
the United States;
(2) to provide assistance to States and local re-
cipients of assistance under this title in developing
and using systems of performance measures and
standards for improvement of programs and services;
and
(3) to maintain a clearinghouse that will pro-
vide data and information to Federal, State, and
local organizations and agencies about the condition
of statewide systems and programs funded under this
title, which data and information shall be dissemi-
nated in a form that is useful to practitioners and
policymakers.
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(c) OTHER ACTIVITIES.—The Federal Partnership
may request that the national center assisted under sub-
section (a) conduct activities not described in subsection (b),
or study topics not described in subsection (b), as the Fed-
eral Partnership determines to be necessary to carry out
this title.
(d) IDENTIFICATION OF CURRENT NEEDS.—The na-
tional center assisted under subsection (a) shall identify
current needs (as of the date of the identification) for re-
search and technical assistance through a variety of sources
including a panel of Federal, State, and local level practi-
tioners.
(e) SUMMARY REPORT.—The national center assisted
under subsection (a) shall annually prepare and submit to
the Federal Partnership and the Committee on Economic
and Educational Opportunities of the House of Representa-
tives and the Committee on Labor and Human Resources
of the Senate a report summarizing the research findings
obtained, and the results of development and technical as-
sistance activities carried out, under this section.
(f) TRANSITION PERIOD.—Notwithstanding any other
provision of law, the Secretary of Labor and the Secretary
of Education, acting jointly on the advice of the Federal
Partnership, may use funds made available under section
404 of the Carl D. Perkins Vocational and Applied Tech-
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nology Education Act (20 U.S.C. 2404) to prepare, during
the period beginning on January 1, 1998, and ending June
30, 1998, to award a grant under subsection (a) on July
1, 1998.
(g) DEFINITION.—As used in this section, the term
‘‘institution of higher education’’ has the meaning given the
term in section 1201(a) of the Higher Education Act of
1965 (20 U.S.C. 1141(a)).
(h) CONFORMING AMENDMENTS.—Section 404(a)(2) of
the Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2404(a)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘for a pe-
riod of 5 years’’ and inserting ‘‘until June 30, 1998’’;
and
(2) in the first sentence of subparagraph (B), by
striking ‘‘5’’.
(i) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), this section shall take effect on
July 1, 1998.
(2) TRANSITION
PROVISIONS.—Subsection (f)
shall take effect on January 1, 1998.
(3) AMENDMENTS.—The amendments made by
subsection (h) shall take effect on the date of enact-
ment of this Act.
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SEC. 186. NATIONAL ASSESSMENT OF VOCATIONAL EDU-
CATION PROGRAMS.
(a) IN GENERAL.—The Secretary of Education (re-
ferred to in this section as the ‘‘Secretary’’) shall conduct
a national assessment of vocational education programs as-
sisted under this title, through studies and analyses con-
ducted independently through competitive awards.
(b) INDEPENDENT ADVISORY PANEL.—The Secretary
shall appoint an independent advisory panel, consisting of
vocational education administrators, educators, researchers,
and representatives of business, industry, labor, career
guidance and counseling professionals, and other relevant
groups, to advise the Secretary on the implementation of
such assessment, including the issues to be addressed and
the methodology of the studies involved, and the findings
and recommendations resulting from the assessment. The
panel, in the discretion of the panel, may submit to the
Committee on Economic and Educational Opportunities of
the House of Representatives, the Committee on Labor and
Human Resources of the Senate, and the Federal Partner-
ship an independent analysis of the findings and rec-
ommendations resulting from the assessment. The Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply
to the panel established under this subsection.
(c) CONTENTS.—The assessment required under sub-
section (a) shall include descriptions and evaluations of—
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(1) the effect of this title on State and tribal ad-
ministration of vocational education programs and
on local vocational education practices, including the
capacity of State, tribal, and local vocational edu-
cation systems to address the purposes of this title;
(2) expenditures at the Federal, State, tribal,
and local levels to address program improvement in
vocational education, including the impact of Federal
allocation requirements (such as within-State dis-
tribution formulas) on the delivery of services;
(3) preparation and qualifications of teachers of
vocational and academic curricula in vocational edu-
cation programs, as well as shortages of such teachers;
(4) participation in vocational education pro-
grams;
(5) academic and employment outcomes of voca-
tional education, including analyses of—
(A) the effect of educational reform on voca-
tional education;
(B) the extent and success of integration of
academic and vocational curricula;
(C) the success of the school-to-work transi-
tion; and
(D) the degree to which vocational training
is relevant to subsequent employment;
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(6) employer involvement in, and satisfaction
with, vocational education programs;
(7) the effect of benchmarks, performance meas-
ures, and other measures of accountability on the de-
livery of vocational education services; and
(8) the degree to which minority students are in-
volved in vocational student organizations.
(d) CONSULTATION.—
(1) IN GENERAL.—The Secretary shall consult
with the Committee on Economic and Educational
Opportunities of the House of Representatives and the
Committee on Labor and Human Resources of the
Senate in the design and implementation of the as-
sessment required under subsection (a).
(2) REPORTS.—The Secretary shall submit to the
Committee on Economic and Educational Opportuni-
ties of the House of Representatives, the Committee on
Labor and Human Resources of the Senate, and the
Federal Partnership—
(A) an interim report regarding the assess-
ment on or before January 1, 2000; and
(B) a final report, summarizing all studies
and analyses that relate to the assessment and
that are completed after the assessment, on or be-
fore July 1, 2000.
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(3) PROHIBITION.—Notwithstanding any other
provision of law or regulation, the reports required by
this subsection shall not be subject to any review out-
side of the Department of Education before their
transmittal to the Committee on Economic and Edu-
cational Opportunities of the House of Representa-
tives, the Committee on Labor and Human Resources
of the Senate, and the Federal Partnership, but the
President, the Secretary, the Federal Partnership, and
the independent advisory panel established under sub-
section (b) may make such additional recommenda-
tions to Congress with respect to the assessment as the
President, the Secretary, the Federal Partnership, or
the panel determine to be appropriate.
(e) EFFECTIVE DATE.—This section shall take effect on
July 1, 1998.
SEC. 187. TRANSFERS TO FEDERAL PARTNERSHIP.
(a) DEFINITIONS.—For purposes of this section, unless
otherwise provided or indicated by the context—
(1) the term ‘‘Federal agency’’ has the meaning
given to the term ‘‘agency’’ by section 551(1) of title
5, United States Code;
(2) the term ‘‘function’’ means any duty, obliga-
tion, power, authority, responsibility, right, privilege,
activity, or program; and
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(3) the term ‘‘office’’ includes any office, admin-
istration, agency, institute, unit, organizational en-
tity, or component thereof.
(b) TRANSFER OF FUNCTIONS.—There are transferred
to the appropriate Secretary in the Federal Partnership,
in accordance with subsection (c), all functions that the Sec-
retary of Labor or the Secretary of Education exercised be-
fore the effective date of this section (including all related
functions of any officer or employee of the Department of
Labor or the Department of Education) that relate to a cov-
ered activity and that are minimally necessary to carry
out the functions of the Federal Partnership. The authority
of a transferred employee to carry out a function that re-
lates to a covered activity shall terminate on July 1, 1998.
(c) TRANSITION WORKPLAN.—
(1) IN GENERAL.—Not later than 180 days after
the date of enactment of this Act, the Secretary of
Labor and the Secretary of Education shall prepare
and submit to the National Board a proposed
workplan as described in paragraph (2). The Sec-
retary of Labor and the Secretary of Education shall
also submit the plan to the President, the Committee
on Economic and Educational Opportunities of the
House of Representatives, and the Committee on
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Labor and Human Resources of the Senate for review
and comment.
(2) CONTENTS.—The proposed workplan shall
include, at a minimum—
(A) an analysis of the functions that officers
and employees of the Department of Labor and
the Department of Education carry out (as of the
date of the submission of the workplan) that re-
late to a covered activity;
(B) information on the levels of personnel
and funding used to carry out the functions (as
of such date);
(C) a determination of the functions de-
scribed in subparagraph (A) that are minimally
necessary to carry out the functions of the Fed-
eral Partnership;
(D) information on the levels of personnel
and other resources that are minimally necessary
to carry out the functions of the Federal Partner-
ship;
(E) a determination of the manner in
which the Secretary of Labor and the Secretary
of Education will provide personnel and other
resources of the Department of Labor and the
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Department of Education for the Federal Part-
nership;
(F) a determination of the appropriate Sec-
retary to receive the personnel, resources, and re-
lated items to be transferred under this section,
based on factors including increased efficiency
and elimination of duplication of functions;
(G) a determination of the proposed organi-
zational structure for the Federal Partnership;
and
(H) a determination of the manner in
which the Secretary of Labor and the Secretary
of Education, acting jointly through the Federal
Partnership, will carry out their duties and re-
sponsibilities under this Act (other than subtitle
B) and the amendments made by this Act.
(3) REVIEW BY NATIONAL BOARD.—
(A) IN GENERAL.—Not later than 45 days
after the date of submission of the proposed
workplan under paragraph (1), the National
Board shall—
(i) 
review 
and 
concur 
with 
the
workplan; or
(ii) reject the workplan and prepare
and submit to the President a revised
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workplan that contains the analysis, infor-
mation, and determinations described in
paragraph (2).
(B) FUNCTIONS TRANSFERRED.—If the Na-
tional 
Board 
concurs 
with 
the 
proposed
workplan, the functions described in paragraph
(2)(C), as determined in the workplan, shall be
transferred under subsection (b).
(4) REVIEW BY THE PRESIDENT.—
(A) IN GENERAL.—Not later than 30 days
after the date of submission of a revised
workplan under paragraph (3)(A)(ii), the Presi-
dent shall—
(i) review and approve the workplan;
or
(ii) reject the workplan and prepare an
alternative workplan that contains the
analysis, information, and determinations
described in paragraph (2).
(B) 
FUNCTIONS
TRANSFERRED.—If 
the
President approves the revised workplan, or pre-
pares the alternative workplan, the functions de-
scribed in paragraph (2)(C), as determined in
such revised or alternative workplan, shall be
transferred under subsection (b).
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(C) SPECIAL RULE.—If the President takes
no action on the revised workplan submitted
under paragraph (3)(A)(ii) within the 30-day
period described in subparagraph (A), the Sec-
retary of Labor, the Secretary of Education, and
the National Board may attempt to reach agree-
ment on a compromise workplan. If the Sec-
retary of Labor, the Secretary of Education, and
the National Board reach such agreement, the
functions described in paragraph (2)(C), as de-
termined in such compromise workplan, shall be
transferred under subsection (b). If, after an ad-
ditional 15-day period, the Secretary of Labor,
the Secretary of Education and the National
Board are unable to reach such agreement, the
revised workplan shall be deemed to be approved
and shall take effect on the day after the end of
such period. The functions described in para-
graph (2)(C), as determined in the revised
workplan, shall be transferred under subsection
(b).
(5) DETERMINATION BY PRESIDENT.—
(A) IN
GENERAL.—In the event that the
Secretary of Labor and the Secretary of Edu-
cation fail to reach agreement regarding, and
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submit, a proposed workplan described in para-
graph (2), the President shall make the deter-
minations described in paragraph (2)(C). The
President shall delegate full responsibility for ad-
ministration described in section 181(b) (other
than the administration of subtitle B) to 1 of the
2 Secretaries. Such Secretary shall be considered
to be the appropriate Secretary for purposes of
such administration (other than the administra-
tion of subtitle B) and shall have authority to
carry out any function that the Secretaries
would otherwise be authorized to carry out joint-
ly.
(B) TRANSFERS.—The functions described
in paragraph (2)(C), as determined by the Presi-
dent under subparagraph (A), shall be trans-
ferred under subsection (b). All positions of per-
sonnel that relate to a covered activity and that,
prior to the transfer, were within the department
headed by the other of the 2 Secretaries shall be
separated from service as provided in subsection
(i)(2)(A).
(d) DELEGATION
AND ASSIGNMENT.—Except where
otherwise expressly prohibited by law or otherwise provided
by this section, the National Board may delegate any func-
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tion transferred or granted to the Federal Partnership after
the effective date of this section to such officers and employ-
ees of the Federal Partnership as the National Board may
designate, and may authorize successive redelegations of
such functions as may be necessary or appropriate. No dele-
gation of functions by the National Board under this sub-
section or under any other provision of this section shall
relieve such National Board of responsibility for the admin-
istration of such functions.
(e) REORGANIZATION.—The National Board may allo-
cate or reallocate any function transferred or granted to the
Federal Partnership after the effective date of this section
among the officers of the Federal Partnership, and establish,
consolidate, alter, or discontinue such organizational enti-
ties in the Federal Partnership as may be necessary or ap-
propriate.
(f) RULES.—The Secretary of Labor and the Secretary
of Education, acting jointly on the advice of the Federal
Partnership, may prescribe, in accordance with the provi-
sions of chapters 5 and 6 of title 5, United States Code,
such rules and regulations as the Secretary of Labor and
the Secretary of Education, acting jointly on the advice of
the Federal Partnership, determine to be necessary or ap-
propriate to administer and manage the functions of the
Federal Partnership.
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(g) TRANSFER AND ALLOCATIONS OF APPROPRIATIONS
AND PERSONNEL.—
(1) IN GENERAL.—Except as otherwise provided
in this section, the personnel employed in connection
with, and the assets, liabilities, contracts, property,
records, and unexpended balances of appropriations,
authorizations, allocations, and other funds employed,
used, held, arising from, available to, or to be made
available in connection with the functions transferred
by this section, subject to section 1531 of title 31,
United States Code, shall be transferred to the appro-
priate Secretary in the Federal Partnership. Unex-
pended funds transferred pursuant to this subsection
shall be used only to carry out the functions of the
Federal Partnership.
(2) EXISTING FACILITIES AND OTHER FEDERAL
RESOURCES.—Pursuant to paragraph (1), the Sec-
retary of Labor and the Secretary of Education shall
supply such office facilities, office supplies, support
services, and related expenses as may be minimally
necessary to carry out the functions of the Federal
Partnership. None of the funds made available under
this title may be used for the construction of office fa-
cilities for the Federal Partnership.
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(h) INCIDENTAL TRANSFERS.—The Director of the Of-
fice of Management and Budget, at such time or times as
the Director shall provide, may make such determinations
as may be necessary with regard to the functions transferred
by this section, and to make such additional incidental dis-
positions of personnel, assets, liabilities, grants, contracts,
property, records, and unexpended balances of appropria-
tions, authorizations, allocations, and other funds held,
used, arising from, available to, or to be made available
in connection with such functions, as may be necessary to
carry out the provisions of this section. The Director of the
Office of Management and Budget shall provide for the ter-
mination of the affairs of all entities terminated by this
section and for such further measures and dispositions as
may be necessary to effectuate the objectives of this section.
(i) EFFECT ON PERSONNEL.—
(1) TERMINATION OF CERTAIN POSITIONS.—Posi-
tions whose incumbents are appointed by the Presi-
dent, by and with the advice and consent of the Sen-
ate, the functions of which are transferred by this sec-
tion, shall terminate on the effective date of this sec-
tion.
(2) ACTIONS.—
(A) IN GENERAL.—The Secretary of Labor
and the Secretary of Education shall take such
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actions as may be necessary, including reduction
in force actions, consistent with sections 3502
and 3595 of title 5, United States Code, to en-
sure that the positions of personnel that relate to
a covered activity and are not transferred under
subsection (b) are separated from service.
(B) SCOPE.—
(i) INITIAL
REDUCTIONS.—Not later
than the date of the transfer under sub-
section (b), the Secretary of Labor and the
Secretary of Education shall take the ac-
tions described in subparagraph (A) with
respect to not less than 1⁄3 of the number of
positions of personnel that relate to a cov-
ered activity.
(ii) SUBSEQUENT
REDUCTIONS.—Not
later than 5 years after the date of the
transfer under subsection (b), the Secretary
of Labor and the Secretary of Education
shall take the actions described in subpara-
graph (A)—
(I) with respect to not less than
60 percent of the number of positions
of personnel that relate to a covered ac-
tivity, unless the Secretaries submit
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(prior to the end of such 5-year period)
a report to Congress demonstrating
why such actions have not occurred; or
(II) with respect to not less than
40 percent of the number of positions
of personnel that relate to a covered ac-
tivity, if the Secretaries make the de-
termination and submit the report re-
ferred to in subclause (I).
(iii) CALCULATION.—For purposes of
calculating, under this subparagraph, the
number of positions of personnel that relate
to a covered activity, such number shall in-
clude the number of positions of personnel
who are separated from service under sub-
paragraph (A).
(j) SAVINGS PROVISIONS.—
(1) SUITS
NOT
AFFECTED.—The provisions of
this section shall not affect suits commenced before the
effective date of this section, and in all such suits,
proceedings shall be had, appeals taken, and judg-
ments rendered in the same manner and with the
same effect as if this section had not been enacted.
(2) NONABATEMENT OF ACTIONS.—No suit, ac-
tion, or other proceeding commenced by or against the
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Department of Labor or the Department of Edu-
cation, or by or against any individual in the official
capacity of such individual as an officer of the De-
partment of Labor or the Department of Education,
shall abate by reason of the enactment of this section.
(k) TRANSITION.—The National Board may utilize—
(1) the services of officers, employees, and other
personnel of the Department of Labor or the Depart-
ment of Education, other than personnel of the Fed-
eral Partnership, with respect to functions transferred
to the Federal Partnership by this section; and
(2) funds appropriated to such functions;
for such period of time as may reasonably be needed to fa-
cilitate the orderly implementation of this section.
(l) REFERENCES.—A reference in any other Federal
law, Executive order, rule, regulation, or delegation of au-
thority, or any document of or relating to—
(1) the Secretary of Labor or the Secretary of
Education with regard to functions transferred under
subsection (b), shall be deemed to refer to the Federal
Partnership; and
(2) the Department of Labor or the Department
of Education with regard to functions transferred
under subsection (b), shall be deemed to refer to the
Federal Partnership.
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(m) ADDITIONAL CONFORMING AMENDMENTS.—
(1) RECOMMENDED
LEGISLATION.—After con-
sultation with the appropriate committees of Congress
and the Director of the Office of Management and
Budget, the Federal Partnership shall prepare and
submit to Congress recommended legislation contain-
ing technical and conforming amendments to reflect
the changes made by this section.
(2) SUBMISSION TO CONGRESS.—Not later than
March 31, 1997, the Federal Partnership shall submit
the recommended legislation referred to in paragraph
(1).
(n) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), this section shall take effect on
June 30, 1998.
(2) REGULATIONS
AND
CONFORMING
AMEND-
MENTS.—Subsections (f) and (m) shall take effect on
September 30, 1996.
(3) WORKPLAN.—Subsection (c) shall take effect
on the date of enactment of this Act.
SEC. 188. TRANSFERS TO OTHER FEDERAL AGENCIES AND
OFFICES.
(a) TRANSFER.—There are transferred to the appro-
priate receiving agency, in accordance with subsection (b),
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all functions that the Secretary of Labor, acting through
the Employment and Training Administration, or the Sec-
retary of Education, acting through the Office of Vocational
and Adult Education, exercised before the effective date of
this section (including all related functions of any officer
or employee of the Employment and Training Administra-
tion or the Office of Vocational and Adult Education) that
do not relate to a covered activity.
(b) DETERMINATIONS
OF FUNCTIONS
AND APPRO-
PRIATE RECEIVING AGENCIES.—
(1) TRANSITION WORKPLAN.—Not later than 180
days after the date of enactment of this Act, the Sec-
retary of Labor and the Secretary of Education shall
prepare and submit to the President a proposed
workplan that specifies the steps that the Secretaries
will take, during the period ending on July 1, 1998,
to carry out the transfer described in subsection (a).
(2) CONTENTS.—The proposed workplan shall
include, at a minimum—
(A) a determination of the functions that of-
ficers and employees of the Employment and
Training Administration and the Office of Voca-
tional and Adult Education carry out (as of the
date of the submission of the workplan) that do
not relate to a covered activity; and
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(B) a determination of the appropriate re-
ceiving agencies for the functions, based on fac-
tors including increased efficiency and elimi-
nation of duplication of functions.
(3) REVIEW.—
(A) IN GENERAL.—Not later than 45 days
after the date of submission of the proposed
workplan under paragraph (1), the President
shall—
(i) review and approve the workplan
and submit the workplan to the Committee
on Economic and Educational Opportuni-
ties of the House of Representatives and the
Committee on Labor and Human Resources
of the Senate; or
(ii) reject the workplan, prepare an al-
ternative workplan that contains the deter-
minations described in paragraph (2), and
submit the alternative workplan to the Com-
mittee on Economic and Educational Op-
portunities of the House of Representatives
and the Committee on Labor and Human
Resources of the Senate.
(B) 
FUNCTIONS
TRANSFERRED.—If 
the
President approves the proposed workplan, or
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prepares the alternative workplan, the functions
described in paragraph (2)(A), as determined in
such proposed or alternative workplan, shall be
transferred under subsection (a) to the appro-
priate receiving agencies described in paragraph
(2)(B), as determined in such proposed or alter-
native workplan.
(C) SPECIAL RULE.—If the President takes
no action on the proposed workplan submitted
under paragraph (1) within the 45-day period
described in subparagraph (A), such workplan
shall be deemed to be approved and shall take ef-
fect on the day after the end of such period. The
functions described in paragraph (2)(A), as de-
termined in the proposed workplan, shall be
transferred under subsection (a) to the appro-
priate receiving agencies described in paragraph
(2)(B), as determined in the proposed workplan.
(4) REPORT.—Not later than July 1, 1998, the
Secretary of Labor and the Secretary of Education
shall submit to the appropriate committees of Con-
gress information on the transfers required by this
section.
(c) APPLICATION OF AUTHORITIES.—
(1) IN GENERAL.—
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(A) APPLICATION.—Subsection (a), and
subsections (d) through (m), of section 187 (other
than subsections (f), (g)(2), (i)(2), and (m)) shall
apply to transfers under this section, in the same
manner and to the same extent as the subsections
apply to transfers under section 187.
(B) 
REGULATIONS
AND
CONFORMING
AMENDMENTS.—Subsections (f) and (m) of sec-
tion 187 shall apply to transfers under this sec-
tion, in the same manner and to the same extent
as the subsections apply to transfers under sec-
tion 187.
(2) REFERENCES.—For purposes of the applica-
tion of the subsections described in paragraph (1)
(other than subsections (g)(2) and (i)(2) of section
187) to transfers under this section—
(A) references to the Federal Partnership
shall be deemed to be references to the appro-
priate receiving agency, as determined in the ap-
proved or alternative workplan referred to in
subsection (b)(3);
(B) references to the Secretary of Labor and
the Secretary of Education, the Director, or the
National Board shall be deemed to be references
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to the head of the appropriate receiving agency;
and
(C) references to transfers in section 187
shall be deemed to include transfers under this
section.
(3) ADMINISTRATION.—Unexpended funds trans-
ferred pursuant to this section shall be used only for
the purposes for which the funds were originally au-
thorized and appropriated.
(4) CONTINUING
EFFECT
OF
LEGAL
DOCU-
MENTS.—All orders, determinations, rules, regula-
tions, permits, agreements, grants, contracts, certifi-
cates, licenses, registrations, privileges, and other ad-
ministrative actions—
(A) that have been issued, made, granted, or
allowed to become effective by the President, any
Federal agency or official of a Federal agency, or
by a court of competent jurisdiction, in the per-
formance of functions that are transferred under
this section; and
(B) that are in effect on the effective date of
this section or were final before the effective date
of this section and are to become effective on or
after the effective date of this section;
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shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked
in accordance with law by the President, the appro-
priate receiving agency or other authorized official, a
court of competent jurisdiction, or by operation of
law.
(5) PROCEEDINGS NOT AFFECTED.—
(A) IN GENERAL.—The provisions of this
section shall not affect any proceedings, includ-
ing notices of proposed rulemaking, or any ap-
plication for any license, permit, certificate, or
financial assistance pending before the Depart-
ment of Labor or the Department of Education
on the date this section takes effect, with respect
to functions transferred by this section.
(B) CONTINUATION.—Such proceedings and
applications shall be continued. Orders shall be
issued in such proceedings, appeals shall be
taken from the orders, and payments shall be
made pursuant to such orders, as if this section
had not been enacted, and orders issued in any
such proceedings shall continue in effect until
modified, terminated, superseded, or revoked by a
duly authorized official, by a court of competent
jurisdiction, or by operation of law.
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(C) CONSTRUCTION.—Nothing in this para-
graph shall be deemed to prohibit the discontinu-
ance or modification of any such proceeding
under the same terms and conditions and to the
same extent that such proceeding could have been
discontinued or modified if this section had not
been enacted.
(6) ADMINISTRATIVE ACTIONS RELATING TO PRO-
MULGATION
OF
REGULATIONS.—Any administrative
action relating to the preparation or promulgation of
a regulation by the Department of Labor or the De-
partment of Education relating to a function trans-
ferred under this section may be continued by the ap-
propriate receiving agency with the same effect as if
this section had not been enacted.
(d) CONSTRUCTION.—Nothing in this section shall be
construed to require the transfer of any function described
in subsection (b)(2)(A) to the Federal Partnership.
(e) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), this section shall take effect on
June 30, 1998.
(2) REGULATIONS
AND
CONFORMING
AMEND-
MENTS.—Subsection (c)(1)(B) shall take effect on Sep-
tember 30, 1996.
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(3) WORKPLAN.—Subsection (b) shall take effect
on the date of enactment of this Act.
SEC. 189. ELIMINATION OF CERTAIN OFFICES.
(a) TERMINATION.—The Office of Vocational and
Adult Education and the Employment and Training Ad-
ministration shall terminate on July 1, 1998.
(b) OFFICE
OF
VOCATIONAL
AND
ADULT
EDU-
CATION.—
(1) TITLE
5, UNITED
STATES
CODE.—Section
5315 of title 5, United States Code, is amended by
striking ‘‘Assistant Secretaries of Education (10)’’
and inserting ‘‘Assistant Secretaries of Education
(9)’’.
(2) DEPARTMENT OF EDUCATION ORGANIZATION
ACT.—
(A) Section 202 of the Department of Edu-
cation Organization Act (20 U.S.C. 3412) is
amended—
(i) in subsection (b)(1)—
(I) by striking subparagraph (C);
and
(II) by redesignating subpara-
graphs (D) through (F) as subpara-
graphs (C) through (E), respectively;
(ii) by striking subsection (h); and
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(iii) by redesignating subsection (i) as
subsection (h).
(B) Section 206 of such Act (20 U.S.C.
3416) is repealed.
(C) Section 402(c)(1) of the Improving
America’s Schools Act of 1994 (20 U.S.C.
9001(c)(1)) is amended by striking ‘‘established
under’’ and all that follows and inserting a
semicolon.
(3) GOALS 2000: EDUCATE AMERICA ACT.—Sec-
tion 931(h)(3)(A) of the Goals 2000: Educate America
Act (20 U.S.C. 6031(h)(3)(A)) is amended—
(A) by striking clause (iii); and
(B) by redesignating clauses (iv) and (v) as
clauses (iii) and (iv), respectively.
(c) EMPLOYMENT AND TRAINING ADMINISTRATION.—
(1) TITLE
5, UNITED
STATES
CODE.—Section
5315 of title 5, United States Code, is amended by
striking ‘‘Assistant Secretaries of Labor (10)’’ and in-
serting ‘‘Assistant Secretaries of Labor (9)’’.
(2) VETERANS’ BENEFITS
AND
PROGRAMS
IM-
PROVEMENT ACT OF 1988.—Section 402(d)(3) of the
Veterans’ Benefits and Programs Improvement Act of
1988 (29 U.S.C. 1721 note) is amended by striking
‘‘and under any other program administered by the
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Employment and Training Administration of the De-
partment of Labor’’.
(3) TITLE 38, UNITED STATES CODE.—Section
4110(d) of title 38, United States Code, is amended—
(A) by striking paragraph (7); and
(B) 
by 
redesignating 
paragraphs 
(8)
through (12) as paragraphs (7) through (11), re-
spectively.
(4) NATIONAL AND COMMUNITY SERVICE ACT OF
1990.—The last sentence of section 162(b) of the Na-
tional and Community Service Act of 1990 (42
U.S.C. 12622(b)) is amended by striking ‘‘or the Of-
fice of Job Training’’.
(d) UNITED STATES EMPLOYMENT SERVICE.—
(1) TITLE
5, UNITED
STATES
CODE.—Section
3327 of title 5, United States Code, is amended—
(A) in subsection (a), by striking ‘‘the em-
ployment offices of the United States Employ-
ment Service’’ and inserting ‘‘Governors’’; and
(B) in subsection (b), by striking ‘‘of the
United States Employment Service’’.
(2) TITLE 10, UNITED STATES CODE.—
(A) Section 1143a(d) of title 10, United
States Code, is amended by striking paragraph
(3).
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(B) Section 2410k(b) of title 10, United
States Code, is amended by striking ‘‘, and
where appropriate the Interstate Job Bank (es-
tablished by the United States Employment
Service),’’.
(3) INTERNAL REVENUE CODE OF 1986.—Section
51 of the Internal Revenue Code of 1986 is amended
by striking subsection (g).
(4) NATIONAL
DEFENSE
AUTHORIZATION
ACT
FOR FISCAL YEAR 1993.—Section 4468 of the National
Defense Authorization Act for Fiscal Year 1993 (29
U.S.C. 1662d–1 note) is repealed.
(5) TITLE 38, UNITED STATES CODE.—Section
4110(d) of title 38, United States Code (as amended
by subsection (c)(3)), is further amended—
(A) by striking paragraph (10); and
(B) by redesignating paragraph (11) as
paragraph (10).
(6) TITLE 39, UNITED STATES CODE.—
(A) Section 3202(a)(1) of title 39, United
States Code is amended—
(i) in subparagraph (D), by striking
the semicolon and inserting ‘‘; and’’;
(ii) by striking subparagraph (E); and
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(iii) by redesignating subparagraph
(F) as subparagraph (E).
(B) Section 3203(b) of title 39, United
States Code, is amended by striking ‘‘(1)(E), (2),
and (3)’’ and inserting ‘‘(2) and (3)’’.
(C) Section 3206(b) of title 39, United
States Code, is amended by striking ‘‘(1)(F)’’
and inserting ‘‘(1)(E)’’.
(7) NATIONAL AND COMMUNITY SERVICE ACT OF
1990.—Section 162(b) of the National and Community
Service Act of 1990 (42 U.S.C. 12622(b)) (as amend-
ed by subsection (c)(4)) is further amended by strik-
ing the last sentence.
(e) REORGANIZATION PLANS.—Except with respect to
functions transferred under section 188, the authority
granted to the Employment and Training Administration,
the Office of Vocational and Adult Education, or any unit
of the Employment and Training Administration or the Of-
fice of Vocational and Adult Education by any reorganiza-
tion plan shall terminate on July 1, 1998.
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Subtitle E—Repeals of Employment
and Training and Vocational
and Adult Education Programs
SEC. 191. REPEALS.
(a) IMMEDIATE REPEALS.—The following provisions
are repealed:
(1) Section 204 of the Immigration Reform and
Control Act of 1986 (8 U.S.C. 1255a note).
(2) Title II of Public Law 95–250 (92 Stat.
172).
(3) The Displaced Homemakers Self-Sufficiency
Assistance Act (29 U.S.C. 2301 et seq.).
(4) Section 211 of the Appalachian Regional De-
velopment Act of 1965 (40 U.S.C. App. 211).
(5) Subtitle C of title VII of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11441
et seq.).
(6) Section 5322 of title 49, United States Code.
(7) Subchapter I of chapter 421 of title 49, Unit-
ed States Code.
(b) SUBSEQUENT REPEALS.—The following provisions
are repealed:
(1) The Adult Education Act (20 U.S.C. 1201 et
seq.).
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(2) The Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2301 et seq.).
(3) The School-to-Work Opportunities Act of
1994 (20 U.S.C. 6101 et seq.).
(4) The Job Training Partnership Act (29
U.S.C. 1501 et seq.).
(5) Title VII of the Stewart B. McKinney Home-
less Assistance Act (42 U.S.C. 11421 et seq.), other
than subtitle C of such title.
(c) EFFECTIVE DATES.—
(1) IMMEDIATE REPEALS.—The repeals made by
subsection (a) shall take effect on the date of enact-
ment of this Act.
(2) SUBSEQUENT REPEALS.—The repeals made
by subsection (b) shall take effect on July 1, 1998.
SEC. 192. CONFORMING AMENDMENTS.
(a) IMMEDIATE REPEALS.—
(1) REFERENCES TO SECTION 204 OF THE IMMI-
GRATION REFORM AND CONTROL ACT OF 1986.—The
table of contents for the Immigration Reform and
Control Act of 1986 is amended by striking the item
relating to section 204 of such Act.
(2) REFERENCES TO TITLE II OF PUBLIC LAW
95–250.—Section 103 of Public Law 95–250 (16
U.S.C. 79l) is amended—
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(A) by striking the second sentence of sub-
section (a); and
(B) by striking the second sentence of sub-
section (b).
(3) REFERENCES TO SUBTITLE C OF TITLE VII
OF THE STEWART B. MCKINNEY HOMELESS ASSIST-
ANCE ACT.—
(A) Section 762(a) of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C.
11472(a)) is amended—
(i) by striking ‘‘each of the following
programs’’ and inserting ‘‘the emergency
community services homeless grant program
established in section 751’’; and
(ii) by striking ‘‘tribes:’’ and all that
follows and inserting ‘‘tribes.’’.
(B) The table of contents of such Act is
amended by striking the items relating to sub-
title C of title VII of such Act.
(4) REFERENCES TO TITLE 49, UNITED STATES
CODE.—
(A) Sections 5313(b)(1) and 5314(a)(1) of
title 49, United States Code, are amended by
striking ‘‘5317, and 5322’’ and inserting ‘‘and
5317’’.
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(B) The table of contents for chapter 53 of
title 49, United States Code, is amended by
striking the item relating to section 5322.
(b) SUBSEQUENT REPEALS.—
(1) REFERENCES
TO
THE
ADULT
EDUCATION
ACT.—
(A) Subsection (b) of section 402 of the Ref-
ugee Education Assistance Act (8 U.S.C. 1522
note) is repealed.
(B) Paragraph (20) of section 3 of the Li-
brary Services and Construction Act (20 U.S.C.
351a(20)) is amended to read as follows:
‘‘(20) The term ‘educationally disadvantaged
adult’ means an individual who—
‘‘(A) is age 16 or older, or beyond the age
of compulsory school attendance under State law;
‘‘(B) is not enrolled in secondary school;
‘‘(C) demonstrates basic skills equivalent to
or below that of students at the fifth grade level;
or
‘‘(D) 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.’’.
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(C)(i) Section 1202(c)(1) of the Elementary
and Secondary Education Act of 1965 (20
U.S.C. 6362(c)(1)) is amended by striking
‘‘Adult Education Act’’ and inserting ‘‘Workforce
Development Act of 1995’’.
(ii) Section 1205(8)(B) of such Act (20
U.S.C. 6365(8)(B)) is amended by striking
‘‘Adult Education Act’’ and inserting ‘‘Workforce
Development Act of 1995’’.
(iii) Section 1206(a)(1)(A) of such Act (20
U.S.C. 6366(a)(1)(A)) is amended by striking
‘‘an adult basic education program under the
Adult Education Act’’ and inserting ‘‘adult edu-
cation activities under the Workforce Develop-
ment Act of 1995’’.
(iv) Section 3113(1) of such Act (20 U.S.C.
6813(1)) is amended by striking ‘‘section 312 of
the Adult Education Act’’ and inserting ‘‘section
3 of the Workforce Development Act of 1995’’.
(v) Section 9161(2) of such Act (20 U.S.C.
7881(2)) is amended by striking ‘‘section 312(2)
of the Adult Education Act’’ and inserting ‘‘sec-
tion 3 of the Workforce Development Act of
1995’’.
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(D) Section 203(b)(8) of the Older Ameri-
cans Act (42 U.S.C. 3013(b)(8)) is amended by
striking ‘‘Adult Education Act’’ and inserting
‘‘Workforce Development Act of 1995’’.
(2) REFERENCES TO THE CARL D. PERKINS VO-
CATIONAL
AND
APPLIED
TECHNOLOGY
EDUCATION
ACT.—
(A) Section 245A(h)(4)(C) of the Immigra-
tion 
and 
Nationality 
Act 
(8 
U.S.C.
1255a(h)(4)(C)) is amended by striking ‘‘Voca-
tional Education Act of 1963’’ and inserting
‘‘Workforce Development Act of 1995’’.
(B) Section 4461 of the National Defense
Authorization Act for Fiscal Year 1993 (10
U.S.C. 1143 note) is amended—
(i) by striking paragraph (4); and
(ii) by redesignating paragraphs (5)
and (6) as paragraphs (4) and (5), respec-
tively.
(C) Section 626(g) of the Individuals with
Disabilities Education Act (20 U.S.C. 1425(g))
is amended—
(i) by striking ‘‘1973,’’ and inserting
‘‘1973 and’’; and
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(ii) by striking ‘‘, and the Carl D. Per-
kins Vocational and Applied Technology
Education Act’’.
(D) The Goals 2000: Educate America Act
(20 U.S.C. 5801 et seq.) is amended—
(i) in section 306 (20 U.S.C. 5886)—
(I) in subsection (c)(1)(A), by
striking all beginning with ‘‘which
process’’ through ‘‘Act’’ and inserting
‘‘which process shall include coordina-
tion with the benchmarks described in
section 121(c)(2) of the Workforce De-
velopment Act of 1995’’; and
(II) in subsection (l), by striking
‘‘Carl D. Perkins Vocational and Ap-
plied Technology Education Act’’ and
inserting ‘‘Workforce Development Act
of 1995’’; and
(ii) in section 311(b) (20 U.S.C.
5891(b)), by striking paragraph (6).
(E) The Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6301 et seq.) is
amended—
(i) in section 1114(b)(2)(C)(v) (20
U.S.C. 6314(b)(2)(C)(v)), by striking ‘‘Carl
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D. Perkins Vocational and Applied Tech-
nology Education Act,’’ and inserting
‘‘Workforce Development Act of 1995’’;
(ii) in section 9115(b)(5) (20 U.S.C.
7815(b)(5)), by striking ‘‘Carl D. Perkins
Vocational and Applied Technology Edu-
cation Act’’ and inserting ‘‘Workforce Devel-
opment Act of 1995’’;
(iii) in section 14302(a)(2) (20 U.S.C.
8852(a)(2))—
(I) by striking subparagraph (C);
and
(II) by redesignating subpara-
graphs (D), (E), and (F) as subpara-
graphs (C), (D), and (E), respectively;
and
(iv) in the matter preceding subpara-
graph (A) of section 14307(a)(1) (20 U.S.C.
8857(a)(1)), by striking ‘‘Carl D. Perkins
Vocational and Applied Technology Edu-
cation Act’’ and inserting ‘‘Workforce Devel-
opment Act of 1995’’.
(F) Section 533(c)(4)(A) of the Equity in
Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note) is amended by striking ‘‘(20
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tablished under title I, and through the provision of
independent living services, support services,’’; and
(2) in subsection (b)(1)(A), by inserting ‘‘state-
wide workforce development systems that include, as
integral components,’’ after ‘‘(A)’’.
SEC. 203. CONSOLIDATED REHABILITATION PLAN.
(a) IN GENERAL.—Section 6 (29 U.S.C. 705) is re-
pealed.
(b) CONFORMING AMENDMENT.—The table of contents
for the Act is amended by striking the item relating to sec-
tion 6.
SEC. 204. DEFINITIONS.
Section 7 (29 U.S.C. 706) is amended by adding at
the end the following new paragraphs:
‘‘(36) The term ‘statewide workforce development sys-
tem’ means a statewide system, as defined in section 3 of
the Workforce Development Act of 1995.
‘‘(37) The term ‘workforce development activities’ has
the meaning given the term in section 3 of the Workforce
Development Act of 1995.
‘‘(38) The term ‘workforce employment activities’
means the activities described in paragraphs (2) through
(8) of section 106(a) of the Workforce Development Act of
1995, including activities described in section 106(a)(6) of