(i) the State agency responsible for
carrying out the program;
(ii) the Governor; and
(iii) the State legislature.
SEC. 106. REPORTS.
(a) REPORT TO THE SECRETARY.—Not later than 1
year after the date on which a State receives amounts
from a grant under section 102, and in each subsequent
fiscal year in which the State receives amounts from such
grant, the State shall submit to the Secretary a report
containing—
(1) the total number of individuals who applied
for participation in the program in the fiscal year;
(2) the total number of individuals enrolled in
the program in the fiscal year and the total number
of individuals who have re-enrolled in the program
for such fiscal year;
(3) the period of time spent in the program by
individuals who have separated from the program
and the rate at which such individuals successfully
obtained employment after such separation in ac-
cordance with the criteria described in subpara-
graphs (A) through (C) of section 105(b)(3); and
(4) any other appropriate information requested
by the Secretary.
(b) REPORT TO CONGRESS.—The Secretary shall an-
nually submit to the Congress a report containing—
(1) a compilation of the information contained
in the reports received by the Secretary under sub-
section (a); and
(2) an evaluation of the block grant program
under this subtitle.
SEC. 107. REDUCTION OR TERMINATION OF PAYMENTS
UNDER GRANT.
(a) DETERMINATION OF SUCCESS IN PLACING INDI-
VIDUALS IN EMPLOYMENT.—
(1) IN GENERAL.—The Secretary shall deter-
mine, based upon the information contained in the
reports submitted by a State under section 106(a),
whether or not the State has been successful in plac-
ing individuals in employment during each 2-year
period under the program.
(2) CRITERIA.—In making a determination
under paragraph (1), the Secretary shall take into
consideration appropriate criteria, including the gen-
eral economic conditions of the State during the 2-
year period referred to in such paragraph.
(b) REDUCTION OR TERMINATION OF PAYMENTS.—
If the Secretary determines under subsection (a) that a
State has not been successful in placing individuals in em-
ployment during any 2-year period under the program, the
Secretary may—
(1) reduce the amount of payments under the
grant to such State for subsequent fiscal years; or
(2) terminate payments under the grant to such
State.
(c) CONTINUATION OF PAYMENTS.—The Secretary
may reinstate payments or increase payments under a
grant with respect to a State that the Secretary has deter-
mined under subsection (a) has not been successful in
placing individuals in employment in accordance with sub-
section (b), if the Secretary subsequently determines that
such State has implemented appropriate modifications to
the program.
SEC. 108. DEFINITIONS.
For the purposes of this subtitle, the following defini-
tions apply:
(1) AREA OF SUBSTANTIAL UNEMPLOYMENT.—
The term ‘‘area of substantial unemployment’’
means any area which has an average rate of unem-
ployment of at least 6.5 percent for the most recent
twelve months as determined by the Secretary. De-
terminations of areas of substantial unemployment
shall be made once each fiscal year.
(2) 
ECONOMICALLY
DISADVANTAGED.—The
term ‘‘economically disadvantaged’’ means an indi-
vidual who (A) receives, or is a member of a family
which receives, cash welfare payments under a Fed-
eral, State, or local welfare program; (B) has, or is
a member of a family which has, received a total
family income for the six-month period prior to ap-
plication for the program involved (exclusive of un-
employment compensation, child support payments,
and welfare payments) which, in relation to family
size, was not in excess of the higher of (i) the official
poverty line (as defined by the Office of Manage-
ment and Budget, and revised annually in accord-
ance with section 673(2) of the Omnibus Budget
Reconciliation Act of 1981 (42 U.S.C. 9902(2)), or
(ii) 70 percent of the lower living standard income
level; (C) is receiving (or has been determined within
the 6-month period prior to the application for the
program involved to be eligible to receive) food
stamps pursuant to the Food Stamp Act of 1977;
(D) qualifies as a homeless individual under sub-
sections (a) and (c) of section 103 of the Stewart B.
McKinney Homeless Assistance Act; (E) is a foster
child on behalf of whom State or local government
payments are made; or (F) in cases permitted by
regulations of the Secretary, is an individual with a
disability whose own income meets the requirements
of clause (A) or (B), but who is a member of a fam-
ily whose income does not meet such requirements.
(3) INDIVIDUAL WITH A DISABILITY.—The term
‘‘individual with a disability’’ means an individual
who has a physical or mental disability which for
such individual constitutes or results in a substantial
handicap to employment.
(4) LOW-INCOME
LEVEL.—The term ‘‘low-in-
come level’’ means $7,000 with respect to income in
1969, and for any later year means that amount
which bears the same relationship to $7,000 as the
Consumer Price Index for that year bears to the
Consumer Price Index for 1969, rounded to the
nearest $1,000.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Labor.
(6) STATE.—The term ‘‘State’’ means each of
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth
of the Northern Mariana Islands, American Samoa,
Guam, the Virgin Islands, the Federated States of
Micronesia, the Republic of the Marshall Islands,
and the Republic of Palau.