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(5) describe, after the entity submitting the plan
consults with the Secretary, the performance measures
to be used to assess the performance of entities in car-
rying out the activities assisted under this section.
(f) CONSOLIDATION OF FUNDS.—Each entity receiving
assistance under subsection (c) may consolidate such assist-
ance with assistance received from related programs in ac-
cordance with the provisions of the Indian Employment,
Training and Related Services Demonstration Act 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) to participate in any activity offered
by a State or local entity under this Act; or
(2) to preclude or discourage any agreement, be-
tween any entity described in subsection (c) and any
State or local entity, to facilitate the provision of
services by such entity or to the population served by
such entity.
(h) ADMINISTRATIVE PROVISIONS.—
(1) ORGANIZATIONAL UNIT ESTABLISHED.—The
Secretary shall designate a single organizational unit
within the Department of Labor that shall have pri-
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mary responsibility for the administration of the ac-
tivities authorized under this section.
(2) REGULATIONS.—The Secretary shall consult
with the entities described in subsection (c) in—
(A) establishing regulations to carry out
this section, including performance measures for
entities receiving assistance under such sub-
section, taking into account the economic cir-
cumstances of such entities; and
(B) developing a funding distribution plan
that takes into consideration previous levels of
funding (prior to the date of enactment of this
Act) to such entities.
(3) WAIVERS.—
(A) IN GENERAL.—With respect to an entity
described in subsection (c), the Secretary, not-
withstanding any other provision of law, may,
pursuant to a request submitted by such entity
that meets the requirements established under
paragraph (2), waive any of the statutory or reg-
ulatory requirements of this title that are incon-
sistent with the specific needs of the entities de-
scribed in such subsection, except that the Sec-
retary may not waive requirements relating to
wage and labor standards, worker rights, partici-
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pation and protection of participants, grievance
procedures, and judicial review.
(B) REQUEST AND APPROVAL.—An entity
described in subsection (c) that requests a waiver
under subparagraph (A) shall submit a plan to
the Secretary to improve the program of work-
force investment activities carried out by the en-
tity, which plan shall meet the requirements es-
tablished by the Secretary and shall be generally
consistent with the requirements of section
379(i)(4)(B).
(4) ADVISORY COUNCIL.—
(A) IN GENERAL.—Using funds made avail-
able to carry out this section, the Secretary shall
establish a Native American Employment and
Training Council to facilitate the consultation
described in paragraph (2).
(B) COMPOSITION.—The Council shall be
composed of individuals, appointed by the Sec-
retary, who are representatives of the entities de-
scribed in subsection (c).
(C) DUTIES.—The Council shall advise the
Secretary on all aspects of the operation and ad-
ministration of the programs assisted under this
section, including the selection of the individual
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appointed as the head of the unit established
under paragraph (1).
(D) PERSONNEL MATTERS.—
(i) COMPENSATION
OF
MEMBERS.—
Members of the Council shall serve without
compensation.
(ii) TRAVEL EXPENSES.—The members
of the Council shall be allowed travel ex-
penses, including per diem in lieu of sub-
sistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of
title 5, United States Code, while away
from their homes or regular places of busi-
ness in the performance of services for the
Council.
(iii) ADMINISTRATIVE SUPPORT.—The
Secretary shall provide the Council with
such administrative support as may be nec-
essary to perform the functions of the Coun-
cil.
(E) CHAIRPERSON.—The Council shall se-
lect a chairperson from among its members.
(F) MEETINGS.—The Council shall meet not
less than twice each year.
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(G) APPLICATION.—Section 14 of the Fed-
eral Advisory Committee Act (5 U.S.C. App.)
shall not apply to the Council.
(5) TECHNICAL
ASSISTANCE.—The Secretary,
acting through the unit established under paragraph
(1), is authorized to provide technical assistance to
entities described in subsection (c) that receive assist-
ance under subsection (c) to enable such entities to
improve the activities authorized under this section
that are provided by such entities.
SEC. 362. MIGRANT AND SEASONAL FARMWORKER PRO-
GRAMS.
(a) IN GENERAL.—Every 2 years, the Secretary shall,
on a competitive basis, make grants to, or enter into con-
tracts with, eligible entities to carry out the activities de-
scribed 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 eligible mi-
grant and seasonal farmworkers (including dependents), a
familiarity with the area to be served, and the ability to
demonstrate a capacity to administer effectively a diversi-
fied program of workforce investment activities (including
youth activities) and related assistance for eligible migrant
and seasonal farmworkers.
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(c) PROGRAM PLAN.—
(1) IN
GENERAL.—To be eligible to receive a
grant or enter into a contract under this section, an
entity described in subsection (b) shall submit to the
Secretary a plan that describes a 2-year strategy for
meeting the needs of eligible migrant and seasonal
farmworkers in the area to be served by such entity.
(2) ADMINISTRATION.—Grants and contracts
awarded under this section shall be centrally admin-
istered by the Department of Labor and competitively
awarded by the Secretary using procedures consistent
with standard Federal Government competitive pro-
curement policies.
(3) COMPETITION.—
(A) IN
GENERAL.—The competition for
grants made and contracts entered into under
this section shall be conducted every 2 years.
(B) 
EXCEPTION.—Notwithstanding 
sub-
paragraph (A), if a recipient of such a grant or
contract has performed satisfactorily under the
terms of the grant agreement or contract, the
Secretary may waive the requirement for such
competition for such recipient upon receipt from
the recipient of a satisfactory 2-year plan de-
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workers, which may include employment, training, edu-
cational assistance, literacy assistance, an English lan-
guage program, worker safety training, supportive services,
dropout prevention activities, follow-up services for those
individuals placed in employment, self-employment and re-
lated business enterprise development education as needed
by eligible migrant and seasonal farmworkers and identi-
fied pursuant to the plan required by subsection (c), and
technical assistance relating to capacity enhancement in
such areas as management information technology.
(e) CONSULTATION WITH GOVERNORS
AND LOCAL
PARTNERSHIPS.—In making grants and entering into con-
tracts under this section, the Secretary shall consult with
the Governors and local partnerships of the States in which
the eligible entities will carry out the activities described
in subsection (d).
(f) REGULATIONS.—The Secretary shall consult with
eligible migrant and seasonal farmworkers groups and
States in establishing regulations to carry out this section,
including performance measures for eligible entities that
take into account the economic circumstances and demo-
graphics of eligible migrant and seasonal farmworkers.
(g) DEFINITIONS.—In this section:
(1) DISADVANTAGED.—The term ‘‘disadvan-
taged’’, used with respect to a farmworker, means a
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farmworker whose income, for 12 consecutive months
out of the 24 months prior to application for the pro-
gram involved, does not exceed the higher of—
(A) the poverty line (as defined in section
334(a)(2)(B)) for an equivalent period; or
(B) 70 percent of the lower living standard
income level, for an equivalent period.
(2) ELIGIBLE
MIGRANT
AND
SEASONAL
FARM-
WORKERS.—The term ‘‘eligible migrant and seasonal
farmworkers’’ means individuals who are eligible mi-
grant farmworkers or are eligible seasonal farm-
workers.
(3) ELIGIBLE
MIGRANT
FARMWORKER.—The
term ‘‘eligible migrant farmworker’’ means—
(A) an eligible seasonal farmworker de-
scribed in paragraph (4)(A) whose agricultural
labor requires travel to a job site such that the
farmworker is unable to return to a permanent
place of residence within the same day; and
(B) a dependent of the farmworker described
in subparagraph (A).
(4) ELIGIBLE
SEASONAL
FARMWORKER.—The
term ‘‘eligible seasonal farmworker’’ means—
(A) a disadvantaged person who, for 12
consecutive months out of the 24 months prior to
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application for the program involved, has been
primarily employed in agricultural labor that is
characterized by chronic unemployment or
underemployment; and
(B) a dependent of the person described in
subparagraph (A).
SEC. 
363. 
VETERANS’ 
WORKFORCE 
INVESTMENT 
PRO-
GRAMS.
(a) AUTHORIZATION.—
(1) IN GENERAL.—The Secretary shall conduct,
directly or through grants or contracts, programs to
meet the needs for workforce investment activities of
veterans with service-connected disabilities, veterans
who have significant barriers to employment, veterans
who served on active duty in the armed forces during
a war or in a campaign or expedition for which a
campaign badge has been authorized, and recently
separated veterans.
(2) CONDUCT
OF
PROGRAMS.—Programs sup-
ported under this section may be conducted through
grants and contracts with public agencies and private
nonprofit organizations, including recipients of Fed-
eral assistance under other provisions of this title,
that the Secretary determines have an understanding
of the unemployment problems of veterans described
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in paragraph (1), familiarity with the area to be
served, and the capability to administer effectively a
program of workforce investment activities for such
veterans.
(3) REQUIRED ACTIVITIES.—Programs supported
under this section shall include—
(A) activities to enhance services provided
to veterans by other providers of workforce in-
vestment activities funded by Federal, State, or
local government;
(B) activities to provide workforce invest-
ment activities to such veterans that are not ade-
quately provided by other public providers of
workforce investment activities; and
(C) outreach and public information activi-
ties to develop and promote maximum job and
job training opportunities for such veterans and
to inform such veterans about employment, job
training, on-the-job training and educational op-
portunities under this title, under title 38,
United States Code, and under other provisions
of law, which activities shall be coordinated with
activities provided through the one-stop customer
service centers.
(b) ADMINISTRATION OF PROGRAMS.—
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(1) IN GENERAL.—The Secretary shall admin-
ister programs supported under this section through
the Assistant Secretary for Veterans’ Employment
and Training.
(2) ADDITIONAL RESPONSIBILITIES.—In carry-
ing out responsibilities under this section, the Assist-
ant Secretary for Veterans’ Employment and Train-
ing shall—
(A) be responsible for the awarding of
grants and contracts and the distribution of
funds under this section and for the establish-
ment of appropriate fiscal controls, accountabil-
ity, and program performance measures for re-
cipients of grants and contracts under this sec-
tion; and
(B) consult with the Secretary of Veterans
Affairs and take steps to ensure that programs
supported under this section are coordinated, to
the maximum extent feasible, with related pro-
grams and activities conducted under title 38,
United States Code, including programs and ac-
tivities conducted under subchapter II of chapter
77 of such title, chapters 30, 31, 32, and 34 of
such title, and sections 1712A, 1720A, 3687, and
4103A of such title.
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SEC. 364. YOUTH OPPORTUNITY GRANTS.
(a) GRANTS.—
(1) IN GENERAL.—Using funds made available
under section 302(b)(3)(A), the Secretary shall make
grants to eligible local partnerships and eligible enti-
ties described in subsection (d) to provide activities
described in subsection (b) for youth to increase the
long-term employment of eligible youth who live in
empowerment zones, enterprise communities, and high
poverty areas and who seek assistance.
(2) GRANT PERIOD.—The Secretary may make a
grant under this section for a 1-year period, and may
renew the grant for each of the 4 succeeding years.
(3) GRANT AWARDS.—In making grants under
this section, the Secretary shall ensure that grants are
distributed equitably among local partnerships and
entities serving urban areas and local partnerships
and entities serving rural areas, taking into consider-
ation the poverty rate in such urban and rural areas,
as described in subsection (c)(3)(B).
(b) USE OF FUNDS.—
(1) IN GENERAL.—A local partnership or entity
that receives a grant under this section shall use the
funds made available through the grant to provide ac-
tivities that meet the requirements of section 316, ex-
cept as provided in paragraph (2), as well as youth
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development activities such as activities relating to
leadership development, citizenship, and community
service, and recreation activities.
(2) INTENSIVE
PLACEMENT
AND
FOLLOWUP
SERVICES.—In providing activities under this section,
a local partnership or entity shall provide—
(A) intensive placement services; and
(B) followup services for not less than 24
months after the completion of participation in
the other activities described in this subsection,
as appropriate.
(c) ELIGIBLE LOCAL PARTNERSHIPS.—To be eligible
to receive a grant under this section, a local partnership
shall serve a community that—
(1) has been designated as an empowerment zone
or enterprise community under section 1391 of the
Internal Revenue Code of 1986;
(2)(A) is a State without a zone or community
described in paragraph (1); and
(B) has been designated as a high poverty area
by the Governor of the State; or
(3) is 1 of 2 areas in a State that—
(A) have been designated by the Governor as
areas for which a local partnership may apply
for a grant under this section; and
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(B) meet the poverty rate criteria set forth
in subsections (a)(4), (b), and (d) of section 1392
of the Internal Revenue Code of 1986.
(d) ELIGIBLE ENTITIES.—To be eligible to receive a
grant under this section, an entity (other than a local part-
nership) shall—
(1) be a recipient of financial assistance under
section 361; and
(2) serve a community that—
(A) meets the poverty rate criteria set forth
in subsections (a)(4), (b), and (d) of section 1392
of the Internal Revenue Code of 1986; and
(B) is located on an Indian reservation.
(e) APPLICATION.—To be eligible to receive a grant
under this section, a local partnership or entity shall sub-
mit an application to the Secretary at such time, in such
manner, and containing such information as the Secretary
may require, including—
(1) a description of the activities that the local
partnership or entity will provide under this section
to youth in the community described in subsection
(c);
(2) a description of the performance measures
negotiated under subsection (f), and the manner in
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which the local partnerships or entities will carry out
the activities to meet the performance measures;
(3) a description of the manner in which the ac-
tivities will be linked to activities described in section
316; and
(4) a description of the community support, in-
cluding financial support through leveraging addi-
tional public and private resources, for the activities.
(f) PERFORMANCE MEASURES.—
(1) IN GENERAL.—The Secretary shall negotiate
and reach agreement with the local partnership or en-
tity on performance measures for the indicators of
performance referred to in paragraphs (2) and (3) of
section 321(b) that will be used to evaluate the per-
formance of the local partnership or entity in carry-
ing out the activities described in subsection (b). Each
local performance measure shall consist of such a in-
dicator of performance, and a performance level re-
ferred to in paragraph (2).
(2) PERFORMANCE LEVELS.—The Secretary shall
negotiate and reach agreement with the local partner-
ship or entity regarding the levels of performance ex-
pected to be achieved by the local partnership or en-
tity on the indicators of performance.
(g) ROLE MODEL ACADEMY PROJECT.—
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(1) IN GENERAL.—Using the funds made avail-
able pursuant to section 302(b)(3)(A)(iv) for fiscal
year 1999, the Secretary shall provide assistance to
an entity to carry out a project establishing a role
model academy for out-of-school youth.
(2) RESIDENTIAL CENTER.—The entity shall use
the assistance to establish an academy that consists of
a residential center located on the site of a military
installation closed or realigned pursuant to a law
providing for closures and realignments of such in-
stallations.
(3) SERVICES.—The academy established pursu-
ant to this subsection shall provide services that—
(A) utilize a military style model that em-
phasizes leadership skills and discipline, or an-
other model of demonstrated effectiveness; and
(B) include vocational training, secondary
school course work leading to a secondary school
diploma or recognized equivalent, and the use of
mentors who serve as role models and who pro-
vide academic training and career counseling to
the youth.
SEC. 365. INCENTIVE GRANTS.
(a) IN GENERAL.—Effective July 1, 2000, the Sec-
retary may make grants to States that exceed the expected
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levels of performance for performance measures established
under this Act.
(b) USE OF FUNDS.—A State that receives an incen-
tive grant under this section shall use the funds made avail-
able through the grant to carry out innovative vocational
education, adult education and literacy, or workforce in-
vestment activity programs, as determined by the State.
(c) INCENTIVE GRANT REGULATIONS.—The Secretary
of Labor and the Secretary of Education shall jointly pro-
mulgate 1 set of regulations for incentive grants under sec-
tions 116 and 243 and this section.
SEC. 366. TECHNICAL ASSISTANCE.
(a) TRANSITION ASSISTANCE.—The Secretary shall
provide technical assistance to assist States in making tran-
sitions from carrying out activities under provisions de-
scribed in section 391 to carrying out activities under this
title.
(b) PERFORMANCE IMPROVEMENT.—
(1) GENERAL ASSISTANCE.—
(A) AUTHORITY.—The Secretary—
(i) shall provide technical assistance to
States who fail to meet 1⁄3 or more of the
State performance measures for a program
year; and
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(ii) may provide technical assistance
to other States, local areas, and recipients
of financial assistance under any of sections
361 through 364 to promote the continuous
improvement of the programs and activities
authorized under this title.
(B) FORM
OF
ASSISTANCE.—In carrying
out this paragraph on behalf of a State, or recip-
ient of financial assistance under any of sections
361 through 364, the Secretary, after consulta-
tion with the State or grant recipient, may
award grants and enter into contracts and coop-
erative agreements.
(C) 
LIMITATION.—Grants 
or 
contracts
awarded under this paragraph that are for
amounts in excess of $50,000 shall only be
awarded on a competitive basis.
(2) DISLOCATED
WORKER
TECHNICAL
ASSIST-
ANCE.—
(A) AUTHORITY.—Of the amounts available
pursuant to section 302(a)(2), the Secretary shall
reserve not more than 5 percent of such amounts
to provide technical assistance to States that do
not meet the State performance measures de-
scribed in section 321(b) with respect to employ-
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ment and training activities for dislocated work-
ers. Using such reserved funds, the Secretary
may provide such assistance to other States,
local areas, business and labor organizations,
and other entities involved in providing assist-
ance to dislocated workers, to promote the con-
tinuous improvement of assistance provided to
dislocated workers, under this title.
(B) TRAINING.—Amounts reserved under
this paragraph may be used to provide for the
training of staff, including specialists, who pro-
vide rapid response services. Such training shall
include instruction in proven methods of promot-
ing, establishing, and assisting labor-manage-
ment committees. Such projects shall be adminis-
tered through the dislocated worker office de-
scribed in section 369(b).
SEC. 367. DEMONSTRATION, PILOT, MULTISERVICE, RE-
SEARCH, AND MULTISTATE PROJECTS.
(a) STRATEGIC PLAN.—
(1) 
IN
GENERAL.—After 
consultation 
with
States, localities, and other interested parties, the Sec-
retary shall, every 2 years, publish in the Federal
Register, a plan that describes the demonstration and
pilot (including dislocated worker demonstration and
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pilot), multiservice, research, and multistate project
priorities of the Department of Labor concerning em-
ployment and training for the 5-year period following
the submission of the plan. Copies of the plan shall
be transmitted to the appropriate committees of Con-
gress.
(2) LIMITATION.—With respect to a plan pub-
lished under paragraph (1), the Secretary shall ensure
that research projects (referred to in subsection (d))
are considered for incorporation into the plan only
after projects referred to in subsections (b), (c), and
(e) have been considered and incorporated into the
plan, and are funded only as funds remain to permit
the funding of such research projects.
(3) FACTORS.—The plan published under para-
graph (1) shall contain strategies to address national
employment and training problems and take into ac-
count factors such as—
(A) the availability of existing research (as
of the date of the publication);
(B) the need to ensure results that have
interstate validity;
(C) the benefits of economies of scale and the
efficiency of proposed projects; and
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(D) the likelihood that the results of the
projects will be useful to policymakers and stake-
holders in addressing employment and training
problems.
(b) DEMONSTRATION AND PILOT PROJECTS.—
(1) IN GENERAL.—Under a plan published under
subsection (a), the Secretary shall, through grants or
contracts, carry out demonstration and pilot projects
for the purpose of developing and implementing tech-
niques and approaches, and demonstrating the effec-
tiveness of specialized methods, in addressing employ-
ment and training needs. Such projects shall include
the provision of direct services to individuals to en-
hance employment opportunities and an evaluation
component.
(2) LIMITATIONS.—
(A) COMPETITIVE AWARDS.—Grants or con-
tracts awarded for carrying out demonstration
and pilot projects under this subsection shall be
awarded only on a competitive basis, except that
a noncompetitive award may be made in the
case of a project that is funded jointly with other
public or private sector entities that provide a
substantial portion of the funding for the project.
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(B) ELIGIBLE
ENTITIES.—Grants or con-
tracts may be awarded under this subsection
only to—
(i) entities with recognized expertise
in—
(I) 
conducting 
national 
dem-
onstration projects;
(II) utilizing state-of-the-art dem-
onstration methods; and
(III) conducting evaluations of
employment and training projects; or
(ii) State and local entities with exper-
tise in operating or overseeing employment
and training programs.
(C) TIME LIMITS.—The Secretary shall es-
tablish appropriate time limits for carrying out
demonstration and pilot projects under this sub-
section.
(c) MULTISERVICE PROJECTS.—
(1) IN GENERAL.—Under a plan published under
subsection (a), the Secretary shall, through grants or
contracts, carry out multiservice projects—
(A) that will test an array of approaches to
the provision of employment and training serv-
ices to a variety of targeted populations;
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(B) in which the entity carrying out the
project, in conjunction with employers, organized
labor, and other groups such as the disability
community, will design, develop, and test var-
ious training approaches in order to determine
effective practices; and
(C) that will assist in the development and
replication of effective service delivery strategies
for targeted populations for the national employ-
ment and training system as a whole.
(2) LIMITATIONS.—
(A) COMPETITIVE AWARDS.—Grants or con-
tracts awarded for carrying out multiservice
projects under this subsection shall be awarded
only on a competitive basis.
(B) TIME
LIMITS.—A grant or contract
shall not be awarded under this subsection to the
same organization for more than 3 consecutive
years unless such grant or contract is competi-
tively reevaluated within such period.
(d) RESEARCH.—
(1) IN GENERAL.—Under a plan published under
subsection (a), the Secretary shall, through grants or
contracts, carry out research projects that will con-
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tribute to the solution of employment and training
problems in the United States.
(2) FORMULA
IMPROVEMENT
STUDY
AND
RE-
PORT.—
(A) STUDY.—The Secretary shall conduct a
2-year study concerning improvements in the
formulas described in section 302(b)(1)(B) and
paragraphs (3)(A) and (4)(A) of section 306(b)
(regarding distributing funds under subtitle A to
States and local areas for adult employment and
training activities). In conducting the study, the
Secretary shall examine means of improving the
formulas by—
(i) developing formulas based on statis-
tically reliable data;
(ii) developing formulas that are con-
sistent with the goals and objectives of this
title; and
(iii) developing formulas based on or-
ganizational and financial stability of
statewide partnerships and local partner-
ships.
(B) REPORT.—The Secretary shall prepare
and submit to Congress a report containing the
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results of the study, including recommendations
for improved formulas.
(3) LIMITATIONS.—
(A) COMPETITIVE AWARDS.—Grants or con-
tracts awarded for carrying out research projects
under this subsection in amounts that exceed
$50,000 shall be awarded only on a competitive
basis, except that a noncompetitive award may
be made in the case of a project that is funded
jointly with other public or private sector enti-
ties that provide a substantial portion of the
funding for the project.
(B) ELIGIBLE
ENTITIES.—Grants or con-
tracts shall be awarded under this subsection
only to entities with nationally recognized exper-
tise in the methods, techniques, and knowledge of
the social sciences.
(C) TIME LIMITS.—The Secretary shall es-
tablish appropriate time limits for the duration
of research projects funded under this subsection.
(e) MULTISTATE PROJECTS.—
(1) IN GENERAL.—
(A) AUTHORITY.—Under a plan published
under subsection (a), the Secretary may, through
grants or contracts, carry out multistate projects
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that require demonstrated expertise that is avail-
able at the national level to effectively dissemi-
nate best practices and models for implementing
employment and training services, address the
specialized employment and training needs of
particular service populations, or address indus-
trywide skill shortages.
(B) DESIGN OF GRANTS.—Grants or con-
tracts awarded under this subsection shall be de-
signed to obtain information relating to the pro-
vision of services under different economic condi-
tions or to various demographic groups in order
to provide guidance at the national and State
levels about how best to administer specific em-
ployment and training services.
(2) LIMITATIONS.—
(A) COMPETITIVE AWARDS.—Grants or con-
tracts awarded for carrying out multistate
projects under this subsection shall be awarded
only on a competitive basis.
(B) TIME
LIMITS.—A grant or contract
shall not be awarded under this subsection to the
same organization for more than 3 consecutive
years unless such grant or contract is competi-
tively reevaluated within such period.
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(f) DISLOCATED WORKER PROJECTS.—Of the amount
made available pursuant to section 302(a)(2)(A) for any
program year, the Secretary shall use not more than 10
percent of such amount to carry out demonstration and
pilot projects, multiservice projects, and multistate projects,
relating to the employment and training needs of dislocated
workers. Of the requirements of this section, such projects
shall be subject only to the provisions relating to review and
evaluation of applications under subsection (g). Such
projects may include demonstration and pilot projects relat-
ing to promoting self-employment, promoting job creation,
averting dislocations, assisting dislocated farmers, assisting
dislocated fishermen, and promoting public works. Such
projects shall be administered through the dislocated worker
office described in section 369(b).
(g) PEER REVIEW.—The Secretary shall utilize a peer
review process to—
(1) review and evaluate all applications for
grants and contracts in amounts that exceed $100,000
that are submitted under this section; and
(2) review and designate exemplary and promis-
ing programs under this section.
SEC. 368. EVALUATIONS.
(a) PROGRAMS AND ACTIVITIES CARRIED OUT UNDER
THIS TITLE.—For the purpose of improving the manage-
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ment and effectiveness of programs and activities carried
out under this title, the Secretary shall provide for the con-
tinuing evaluation of the programs and activities. Such
evaluations shall address—
(1) the general effectiveness of such programs
and activities in relation to their cost;
(2) the effectiveness of the performance measures
relating to such programs and activities;
(3) the effectiveness of the structure and mecha-
nisms for delivery of services through such programs
and activities;
(4) the impact of the programs and activities on
the community and participants involved;
(5) the impact of such programs and activities
on related programs and activities;
(6) the extent to which such programs and ac-
tivities meet the needs of various demographic groups;
and
(7) such other factors as may be appropriate.
(b) OTHER PROGRAMS AND ACTIVITIES.—The Sec-
retary may conduct evaluations of other federally funded
employment-related programs and activities, including pro-
grams and activities administered under—
(1) the Wagner-Peyser Act (29 U.S.C. 49 et seq.);
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(2) the Older Americans Act of 1965 (42 U.S.C.
3001 et seq.);
(3) chapter 2 of title II of the Trade Act of 1974
(19 U.S.C. 2271 et seq.); and
(4) State unemployment compensation laws (in
accordance with applicable Federal law).
(c) TECHNIQUES.—Evaluations conducted under this
section shall utilize appropriate methodology and research
designs, including the use of control groups chosen by sci-
entific random assignment methodologies. The Secretary
shall conduct as least 1 multisite control group evaluation
under this section by the end of fiscal year 2004.
(d) REPORTS.—The entity carrying out an evaluation
described in subsection (a) or (b) shall prepare and submit
to the Secretary a draft report and a final report contain-
ing the results of the evaluation.
(e) REPORTS TO CONGRESS.—Not later than 30 days
after the completion of such a draft report, the Secretary
shall transmit the draft report to the appropriate commit-
tees of Congress. Not later than 60 days after the completion
of such a final report, the Secretary shall transmit the final
report to the appropriate committees of Congress.
(f) COORDINATION.—The Secretary shall ensure the co-
ordination of evaluations carried out by States pursuant
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to section 321(e) with the evaluations carried out under this
section.
SEC. 369. NATIONAL EMERGENCY GRANTS.
(a) IN GENERAL.—The Secretary is authorized to
award national emergency grants in a timely manner—
(1) to an entity described in subsection (c) to
provide employment and training assistance to work-
ers affected by major economic dislocations, such as
plant closures, mass layoffs, or closures and realign-
ments of military installations;
(2) to provide assistance to the Governor of any
State within the boundaries of which is an area that
has suffered an emergency or a major disaster as de-
fined in paragraphs (1) and (2), respectively, of sec-
tion 102 of The Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122 (1)
and (2)) (referred to in this section as the ‘‘disaster
area’’) to provide disaster relief employment in the
area; and
(3) to provide additional assistance to a State or
local partnership for eligible dislocated workers in a
case in which the State or local partnership has ex-
pended the funds provided under this section to carry
out activities described in paragraphs (1) and (2)
and can demonstrate the need for additional funds to
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provide appropriate services for such workers, in ac-
cordance with requirements prescribed by the Sec-
retary.
(b) ADMINISTRATION.—The Secretary shall designate
a dislocated worker office to coordinate the functions of the
Secretary under this title relating to employment and
training activities for dislocated workers, including activi-
ties carried out under the national emergency grants.
(c) EMPLOYMENT
AND TRAINING ASSISTANCE RE-
QUIREMENTS.—
(1) GRANT RECIPIENT ELIGIBILITY.—
(A) APPLICATION.—To be eligible to receive
a grant under subsection (a)(1), an entity shall
submit an application to the Secretary at such
time, in such manner, and containing such in-
formation as the Secretary may require.
(B) ELIGIBLE ENTITY.—In this paragraph,
the term ‘‘entity’’ means a State, a local part-
nership, an entity described in section 361(c), an
employer or employer association, a labor orga-
nization, and an entity determined to be eligible
by the Governor of the State involved.
(2) PARTICIPANT ELIGIBILITY.—
(A) IN GENERAL.—In order to be eligible to
receive employment and training assistance
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under a national emergency grant awarded pur-
suant to subsection (a)(1), an individual shall
be—
(i) a dislocated worker;
(ii) a civilian employee of the Depart-
ment of Defense employed at a military in-
stallation that is being closed, or that will
undergo realignment, within the next 24
months after the date of the determination
of eligibility;
(iii) an individual who is employed in
a nonmanagerial position with a Depart-
ment of Defense contractor, who is deter-
mined by the Secretary of Defense to be at-
risk of termination from employment as a
result of reductions in defense expenditures,
and whose employer is converting oper-
ations from defense to nondefense applica-
tions in order to prevent worker layoffs; or
(iv) a member of the Armed Forces
who—
(I) was on active duty or full-time
National Guard duty;
(II)(aa) is involuntarily sepa-
rated (as defined in section 1141 of
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title 10, United States Code) from ac-
tive duty or full-time National Guard
duty; or
(bb) is separated from active duty
or full-time National Guard duty pur-
suant to a special separation benefits
program under section 1174a of title
10, United States Code, or the vol-
untary separation incentive program
under section 1175 of that title;
(III) is not entitled to retired or
retained pay incident to the separation
described in subclause (II); and
(IV) applies for such employment
and training assistance before the end
of the 180-day period beginning on the
date of that separation.
(B) RETRAINING
ASSISTANCE.—The indi-
viduals described in subparagraph (A)(iii) shall
be eligible for retraining assistance to upgrade
skills by obtaining marketable skills needed to
support the conversion described in subpara-
graph (A)(iii).
(C) ADDITIONAL REQUIREMENTS.—The Sec-
retary shall establish and publish additional re-
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quirements related to eligibility for employment
and training assistance under the national emer-
gency grants to ensure effective use of the funds
available for this purpose.
(D) DEFINITIONS.—In this paragraph, the
terms ‘military institution’ and ‘realignment’
have the meanings given the terms in section
2910 of the Defense Base Closure and Realign-
ment Act of 1990 (Public Law 101–510; 10
U.S.C. 2687 note).
(d) DISASTER RELIEF EMPLOYMENT ASSISTANCE RE-
QUIREMENTS.—
(1) IN GENERAL.—Funds made available under
subsection (a)(2)—
(A) shall be used to provide disaster relief
employment on projects that provide food, cloth-
ing, shelter, and other humanitarian assistance
for disaster victims, and projects regarding dem-
olition, cleaning, repair, renovation, and recon-
struction of damaged and destroyed structures,
facilities, and lands located within the disaster
area;
(B) may be expended through public and
private agencies and organizations engaged in
such projects; and
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(C) may be expended to provide the services
authorized under section 315(c).
(2) ELIGIBILITY.—An individual shall be eligible
to be offered disaster relief employment under sub-
section (a)(2) if such individual is a dislocated work-
er, is a long-term unemployed individual, or is tem-
porarily or permanently laid off as a consequence of
the disaster.
(3) LIMITATIONS ON DISASTER RELIEF EMPLOY-
MENT.—No individual shall be employed under sub-
section (a)(2) for more than 6 months for work relat-
ed to recovery from a single natural disaster.
SEC. 370. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—
(1) NATIVE AMERICAN PROGRAMS; MIGRANT AND
SEASONAL FARMWORKER PROGRAMS; VETERANS’ EM-
PLOYMENT PROGRAMS.—Subject to subsection (b)(1),
there are authorized to be appropriated to carry out
sections 361 through 363 such sums as may be nec-
essary for each of the fiscal years 1999 through 2004.
(2) INCENTIVE GRANTS; TECHNICAL ASSISTANCE;
DEMONSTRATION
AND
PILOT
PROJECTS; 
EVALUA-
TIONS.—Subject to subsection (b)(2), there are author-
ized to be appropriated to carry out sections 365
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through 368, such sums as may be necessary for each
of fiscal years 1999 through 2004.
(b) RESERVATIONS.—
(1) NATIVE AMERICAN PROGRAMS; MIGRANT AND
SEASONAL FARMWORKER PROGRAMS; VETERANS’ EM-
PLOYMENT PROGRAMS.—Of the amount appropriated
under subsection (a)(1) for a fiscal year, the Sec-
retary shall—
(A) reserve not less than $55,000,000 for
carrying out section 361;
(B) reserve not less than $70,000,000 for
carrying out section 362; and
(C) reserve not less than $7,300,000 for car-
rying out section 363.
(2) INCENTIVE GRANTS; TECHNICAL ASSISTANCE;
DEMONSTRATION
AND
PILOT
PROJECTS; 
EVALUA-
TIONS.—Of the amount appropriated under sub-
section (a)(2) for a fiscal year, the Secretary shall—
(A)(i) for fiscal year 1999, reserve no funds
for carrying out section 365; and
(ii) for each of fiscal years 2000 through
2004, reserve 36.8 percent for carrying out sec-
tion 365;
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(B)(i) for fiscal year 1999, reserve 61.8 per-
cent for carrying out section 366 (other than sec-
tion 366(b)(2)); and
(ii) for each of fiscal years 2000 through
2004, reserve 25 percent for carrying out section
366 (other than section 366(b)(2));
(C) reserve 24.2 percent of a carrying out
section 367 (other than 367(f)); and
(D) reserve 14 percent for carrying out sec-
tion 368.
Subtitle D—Administration
SEC. 371. REQUIREMENTS AND RESTRICTIONS.
(a) BENEFITS.—
(1) WAGES.—
(A) IN GENERAL.—Individuals in on-the-job
training or individuals employed in programs
and activities carried out under this title shall
be compensated at the same rates, including
periodic increases, as trainees or employees who
are similarly situated in similar occupations by
the same employer and who have similar skills.
Such rates shall be in accordance with applicable
law, but in no event less than the higher of the
rate specified in section 6(a)(1) of the Fair
Labor Standards Act of 1938 (29 U.S.C.
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206(a)(1)) or the applicable State or local mini-
mum wage law.
(B) CONSTRUCTION.—The reference in sub-
paragraph (A) to section 6(a)(1) of the Fair
Labor Standards Act of 1938—
(i) shall be deemed to be a reference to
section 6(c) of that Act (29 U.S.C. 206(c))
for individuals in the Commonwealth of
Puerto Rico;
(ii) shall be deemed to be a reference to
section 6(a)(3) (29 U.S.C. 206(a)(3)) of that
Act for individuals in American Samoa;
and
(iii) shall not be applicable for indi-
viduals in other territorial jurisdictions in
which section 6 of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 206) does not
apply.
(2) TREATMENT
OF
ALLOWANCES, EARNINGS,
AND
PAYMENTS.—Allowances, earnings, and pay-
ments to individuals participating in programs and
activities carried out under this title shall not be con-
sidered to be income for the purposes of determining
eligibility for, and the amount of income transfer and
in-kind aid furnished under, any Federal or federally
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assisted program based on need, other than as pro-
vided under the Social Security Act (42 U.S.C. 301
et seq.).
(b) LABOR STANDARDS.—
(1) DISPLACEMENT.—
(A) PROHIBITION.—A participant in a pro-
gram or activity authorized under this title (re-
ferred to in this subsection as a ‘‘specified activ-
ity’’) shall not displace (including a partial dis-
placement, such as a reduction in the hours of
nonovertime work, wages, or employment bene-
fits) any currently employed employee (as of the
date of the participation).
(B) PROHIBITION ON IMPAIRMENT OF CON-
TRACTS.—A specified activity shall not impair
an existing contract for services or collective bar-
gaining agreement, and no such activity that
would be inconsistent with the terms of a collec-
tive bargaining agreement shall be undertaken
without the written concurrence of the labor or-
ganization and employer concerned.
(2) OTHER PROHIBITIONS.—A participant in a
specified activity shall not be employed in a job—
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(A) when any other individual is on layoff
from the same or any substantially equivalent
job with the participating employer;
(B) when the employer has terminated the
employment of any regular employee or other-
wise reduced the workforce of the employer with
the intention of filling the vacancy so created
with the participant; or
(C) that is created in a promotional line
that will infringe in any way on the pro-
motional opportunities of currently employed in-
dividuals (as of the date of the participation).
(3) HEALTH AND SAFETY.—Health and safety
standards established under Federal and State law
otherwise applicable to working conditions of employ-
ees shall be equally applicable to working conditions
of participants engaged in specified activities. To the
extent that a State workers’ compensation law ap-
plies, workers’ compensation shall be provided to par-
ticipants on the same basis as the compensation is
provided to other individuals in the State in similar
employment.
(4) EMPLOYMENT CONDITIONS.—Individuals in
on-the-job training or individuals employed in pro-
grams and activities carried out under this title, shall
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be provided benefits and working conditions at the
same level and to the same extent as other trainees or
employees working a similar length of time and doing
the same type of work.
(5) OPPORTUNITY TO SUBMIT COMMENTS.—In-
terested members of the public, including representa-
tives of labor organizations and businesses, shall be
provided an opportunity to submit comments to the
Secretary with respect to programs and activities pro-
posed to be funded under subtitle A.
(6) NO IMPACT ON UNION ORGANIZING.—Each
recipient of funds under this title shall provide to the
Secretary assurances that none of such funds will be
used to assist, promote, or deter union organizing.
(c) GRIEVANCE PROCEDURE.—
(1) IN GENERAL.—Each State receiving an allot-
ment under section 302 and each recipient of finan-
cial assistance under section 361 or 362 shall estab-
lish and maintain a procedure for grievances or com-
plaints alleging violations of the requirements of this
title from participants and other interested or affected
parties. Such procedure shall include an opportunity
for a hearing and be completed within 60 days after
the date of the filing of the grievance or complaint.
(2) INVESTIGATION.—
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(A) IN GENERAL.—The Secretary shall in-
vestigate an allegation of a violation described in
paragraph (1) if—
(i) a decision relating to such violation
has not been reached within 60 days after
the date of the filing of the grievance or
complaint and either party appeals the de-
cision to the Secretary; or
(ii) a decision relating to such viola-
tion has been reached within 60 days after
the date of the filing and the party to which
such decision is adverse appeals the decision
to the Secretary.
(B) ADDITIONAL REQUIREMENT.—The Sec-
retary shall make a final determination relating
to an appeal made under subparagraph (A) no
later than 120 days after the date of such appeal.
(3) REMEDIES.—Remedies that may be imposed
under this subsection for a violation of any require-
ment of this title shall be limited—
(A) to suspension or termination of pay-
ments under this title to a person that has vio-
lated any requirement of this title;
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(B) to prohibition of placement of a partici-
pant with an employer that has violated any re-
quirement of this title;
(C) where applicable, to reinstatement of an
employee, payment of lost wages and benefits,
and reestablishment of other relevant terms, con-
ditions, and privileges of employment; and
(D) where appropriate, to other equitable
relief.
(4) CONSTRUCTION.—Nothing in paragraph (3)
shall be construed to prohibit a grievant or complain-
ant from pursuing a remedy authorized under an-
other Federal, State, or local law for a violation of
this title.
(d) RELOCATION.—
(1) PROHIBITION ON USE OF FUNDS TO ENCOUR-
AGE
OR
INDUCE
RELOCATION.—No funds provided
under this title shall be used, or proposed for use, to
encourage or induce the relocation of a business or
part of a business if such relocation would result in
a loss of employment for any employee of such busi-
ness at the original location and such original loca-
tion is within the United States.
(2) PROHIBITION ON USE OF FUNDS FOR CUS-
TOMIZED OR SKILL TRAINING AND RELATED ACTIVI-
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TIES AFTER RELOCATION.—No funds provided under
this title for an employment and training activity
shall be used for customized or skill training, on-the-
job training, or company-specific assessments of job
applicants or employees, for any business or part of
a business that has relocated, until the date that is
120 days after the date on which such business com-
mences operations at the new location, if the reloca-
tion of such business or part of a business results in
a loss of employment for any employee of such busi-
ness at the original location and such original loca-
tion is within the United States.
(3) REPAYMENT.—If the Secretary determines
that a violation of paragraph (1) or (2) has occurred,
the Secretary shall require the State that has violated
such paragraph to repay to the United States an
amount equal to the amount expended in violation of
such paragraph.
(e) LIMITATION ON USE OF FUNDS.—No funds avail-
able under this title shall be used for employment generat-
ing activities, economic development activities, activities for
the capitalization of businesses, investment in contract bid-
ding resource centers, or similar activities. No funds avail-
able under subtitle A shall be used for foreign travel.
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(f) DRUG TESTING LIMITATIONS ON PARTICIPANTS IN
TRAINING SERVICES.—
(1) FINDING.—Congress finds that—
(A) the possession, distribution, and use of
drugs by participants in training services should
not be tolerated, and that such use prevents par-
ticipants from making full use of the benefits ex-
tended through training services at the expense of
taxpayers; and
(B) applicants and participants should be
tested for illegal drug use, in order to maximize
the training services and assistance provided
under this title.
(2) DRUG
TESTS.—Each eligible provider of
training services shall administer a drug test—
(A) on a random basis, to individuals who
apply to participate in training services; and
(B) to a participant in training services, 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
training services, the applicant shall agree to submit
to a drug test administered as described in paragraph
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(2)(A) and, if the test is administered to the appli-
cant, shall pass the test.
(4) ELIGIBILITY OF PARTICIPANTS.—In order for
such a participant to remain eligible to participate
in training services, the participant shall agree to
submit to a drug test administered as described in
paragraph (2)(B) and, if the test is administered to
the participant, shall pass the test. If a participant
refuses to submit to the drug test, or fails the drug
test, the eligible provider shall dismiss the participant
from participation in training services.
(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
training services. If the individual demonstrates
that the individual has completed a drug treat-
ment program and passed a drug test within the
30-day period prior to the date of the reapplica-
tion, the individual may participate in training
services, under the same terms and conditions as
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apply to other applicants and participants, in-
cluding submission to drug tests administered as
described in paragraph (2).
(B) SECOND DISQUALIFICATION OR DISMIS-
SAL.—If the individual reapplies to participate
in training services and fails a drug test admin-
istered under paragraph (2) by the eligible pro-
vider, while the individual is an applicant or a
participant, the eligible provider shall disqualify
the individual from eligibility for, or dismiss the
individual from participation in, training serv-
ices. The individual shall not be eligible to re-
apply for participation in training services for
2 years after such disqualification or dismissal.
(6) APPEAL.—A decision by an eligible provider
to disqualify an individual from eligibility for par-
ticipation in training services under paragraph (3)
or (5), or to dismiss a participant as described in
paragraph (4) or (5), shall be subject to expeditious
appeal in accordance with procedures established by
the State in which the eligible provider is located.
(7) NATIONAL UNIFORM GUIDELINES.—
(A) IN GENERAL.—The Secretary of Labor
shall develop voluntary guidelines to assist eligi-
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ble providers concerning the drug testing re-
quired under this subsection.
(B) PRIVACY.—The guidelines shall pro-
mote, to the maximum extent practicable, indi-
vidual privacy in the collection of specimen sam-
ples for such drug testing.
(C) LABORATORIES
AND
PROCEDURES.—
With respect to standards concerning labora-
tories and procedures for such drug testing, the
guidelines shall incorporate the Mandatory
Guidelines for Federal Workplace Drug Testing
Programs, 53 Fed. Reg. 11970 (1988) (or a suc-
cessor to such guidelines), including the portion
of the mandatory guidelines that—
(i) establishes comprehensive standards
for all aspects of laboratory drug testing
and laboratory procedures, including stand-
ards that require the use of the best avail-
able technology for ensuring the full reliabil-
ity and accuracy of drug tests and strict
procedures governing the chain of custody of
specimen samples;
(ii) establishes the minimum list of
drugs for which individuals may be tested;
and
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(iii) establishes appropriate standards
and procedures for periodic review of lab-
oratories and criteria for certification and
revocation of certification of laboratories to
perform such drug testing.
(D) SCREENING AND CONFIRMATION.—The
guidelines described in subparagraph (A) shall
provide that, for drug testing conducted under
this subsection—
(i) each laboratory involved in the
drug testing of any individual shall have
the capability and facility, at such labora-
tory, of performing screening and confirma-
tion tests;
(ii) all tests that indicate the use, in
violation of law (including Federal regula-
tion) of a drug by the individual shall be
confirmed by a scientifically recognized
method of testing capable of providing
quantitative data regarding the drug;
(iii) each specimen sample shall be
subdivided, secured, and labeled in the pres-
ence of the individual; and
(iv) a portion of each specimen sample
shall be retained in a secure manner to pre-
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vent the possibility of tampering, so that if
the confirmation test results are positive the
individual has an opportunity to have the
retained portion assayed by a confirmation
test done independently at a second certified
laboratory, if the individual requests the
independent test not later than 3 days after
being advised of the results of the first con-
firmation test.
(E) 
CONFIDENTIALITY.—The 
guidelines
shall provide for the confidentiality of the test re-
sults and medical information (other than infor-
mation relating to a drug) of the individuals
tested under this subsection, except that the pro-
visions of this subparagraph shall not preclude
the use of test results for the orderly imposition
of appropriate sanctions under this subsection.
(F) SELECTION FOR RANDOM TESTS.—The
guidelines shall ensure that individuals who
apply to participate in training services are se-
lected for drug testing on a random basis, using
nondiscriminatory and impartial methods.
(8) NONLIABILITY OF LOCAL PARTNERSHIPS.—A
local partnership, and the individual members of a
local partnership, shall be immune from civil liability
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with respect to any claim based in whole or part on
activities carried out to implement this subsection.
(9) REPORTING
REQUIREMENTS.—An eligible
provider shall make records of drug testing conducted
under this subsection available for inspection by other
eligible providers, including eligible providers in other
local areas, for the sole purpose of enabling the pro-
viders to determine the eligibility status of an appli-
cant pursuant to this subsection.
(10) USE OF DRUG TESTS.—No Federal, State,
or local prosecutor may use drug test results obtained
under this subsection in a criminal action.
(11) DEFINITIONS.—As used in this subsection:
(A) DRUG.—The term ‘‘drug’’ means a con-
trolled substance, as defined in section 102(6) of
the Controlled Substances Act (21 U.S.C.
802(6)).
(B) DRUG
TEST.—The term ‘‘drug test’’
means a biochemical drug test carried out by a
facility that is approved by the eligible provider
administering the test.
(C) RANDOM BASIS.—For purposes of the
application of this subsection in a State, the
term ‘‘random basis’’ has the meaning deter-
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mined by the Governor of the State, in the sole
discretion of the Governor.
(D) TRAINING SERVICES.—The term ‘‘train-
ing services’’ means services described in section
315(c)(3).
SEC. 372. PROMPT ALLOCATION OF FUNDS.
(a) ALLOTMENTS
BASED
ON
LATEST
AVAILABLE
DATA.—All allotments under section 302 shall be based on
the latest available data and estimates satisfactory to the
Secretary. All data relating to disadvantaged adults, dis-
advantaged youth, and low-income individuals shall be
based on the most recent satisfactory data from the Bureau
of the Census.
(b) PUBLICATION IN FEDERAL REGISTER RELATING
TO FORMULA FUNDS.—Whenever the Secretary allots funds
required to be allotted under section 302, the Secretary shall
publish in a timely fashion in the Federal Register the pro-
posed amount to be distributed to each recipient of the
funds.
(c) REQUIREMENT FOR FUNDS DISTRIBUTED BY FOR-
MULA.—All funds required to be allotted or allocated under
section 302 or 306 shall be allotted or allocated within 45
days after the date of enactment of the Act appropriating
the funds, except that, if such funds are appropriated in
advance as authorized by section 379(g), such funds shall
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be allotted or allocated not later than the March 31 preced-
ing the program year for which such funds are to be avail-
able for obligation.
(d) AVAILABILITY OF FUNDS.—Funds shall be made
available under section 306 to the chief elected official for
a local area not later than 30 days after the date the funds
are made available to the Governor involved, under section
302, or 7 days after the date the local plan for the area
is approved, whichever is later.
SEC. 373. MONITORING.
(a) IN GENERAL.—The Secretary is authorized to
monitor all recipients of financial assistance under this
title to determine whether the recipients are complying with
the provisions of this title, including the regulations issued
under this title.
(b) INVESTIGATIONS.—The Secretary may investigate
any matter the Secretary determines to be necessary to de-
termine the compliance of the recipients with this title, in-
cluding the regulations issued under this title. The inves-
tigations authorized by this subsection may include exam-
ining records (including making certified copies of the
records), questioning employees, and entering any premises
or onto any site in which any part of a program or activity
of such a recipient is conducted or in which any of the
records of the recipient are kept.
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(c) ADDITIONAL REQUIREMENT.—For the purpose of
any investigation or hearing conducted under this title by
the Secretary, the provisions of section 9 of the Federal
Trade Commission Act (15 U.S.C. 49) (relating to the at-
tendance of witnesses and the production of documents)
apply to the Secretary, in the same manner and to the same
extent as the provisions apply to the Federal Trade Com-
mission.
SEC. 374. FISCAL CONTROLS; SANCTIONS.
(a) ESTABLISHMENT
OF
FISCAL
CONTROLS
BY
STATES.—
(1) IN
GENERAL.—Each State shall establish
such fiscal control and fund accounting procedures as
may be necessary to assure the proper disbursal of,
and accounting for, Federal funds allocated to local
areas under subtitle A. Such procedures shall ensure
that all financial transactions carried out under sub-
title A are conducted and records maintained in ac-
cordance with generally accepted accounting prin-
ciples applicable in each State.
(2) COST PRINCIPLES.—
(A) IN GENERAL.—Each State (including
the Governor of the State), local area (including
the chief elected official for the area), and pro-
vider receiving funds under this title shall com-
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ply with the applicable uniform cost principles
included in the appropriate circulars of the Of-
fice of Management and Budget for the type of
entity receiving the funds.
(B) EXCEPTION.—The funds made available
to a State for administration of statewide work-
force investment activities in accordance with
section 314(c)(2) shall be allocable to the overall
administration of workforce investment activi-
ties, but need not be specifically allocable to—
(i) the administration of adult employ-
ment and training activities;
(ii) the administration of dislocated
worker employment and training activities;
or
(iii) the administration of youth ac-
tivities.
(3) 
UNIFORM
ADMINISTRATIVE
REQUIRE-
MENTS.—
(A) IN GENERAL.—Each State (including
the Governor of the State), local area (including
the chief elected official for the area), and pro-
vider receiving funds under this title shall com-
ply with the appropriate uniform administrative
requirements for grants and agreements applica-
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ble for the type of entity receiving the funds, as
promulgated in circulars or rules of the Office of
Management and Budget.
(B) ADDITIONAL REQUIREMENT.—Procure-
ment transactions under this title between local
partnerships and units of State or local govern-
ments shall be conducted only on a cost-reim-
bursable basis.
(4) MONITORING.—Each Governor of a State
shall conduct onsite monitoring of each local area
within the State to ensure compliance with the uni-
form administrative requirements referred to in para-
graph (3).
(5) ACTION BY GOVERNOR.—If the Governor de-
termines that a local area is not in compliance with
the uniform administrative requirements referred to
in paragraph (3), the Governor shall—
(A) require corrective action to secure
prompt compliance; and
(B) impose the sanctions provided under
subsection (b) in the event of failure to take the
required corrective action.
(6) CERTIFICATION.—The Governor shall, every
3 years, certify to the Secretary that—
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(A) the State has implemented the uniform
administrative requirements referred to in para-
graph (3);
(B) the State has monitored local areas to
ensure compliance with the uniform administra-
tive requirements as required under paragraph
(4); and
(C) the State has taken appropriate action
to secure compliance pursuant to paragraph (5).
(7) ACTION
BY
THE
SECRETARY.—If the Sec-
retary determines that the Governor has not fulfilled
the requirements of this subsection, the Secretary
shall—
(A) require corrective action to secure
prompt compliance; and
(B) impose the sanctions provided under
subsection (f) in the event of failure of the Gov-
ernor to take the required appropriate action to
secure compliance.
(b) SUBSTANTIAL VIOLATION.—
(1) ACTION BY GOVERNOR.—If, as a result of a
financial or compliance audit or otherwise, the Gov-
ernor determines that there is a substantial violation
of a specific provision of this title, including regula-
tions issued under this title, and corrective action has
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not been taken, the Governor shall impose a reorga-
nization plan, which may include—
(A) decertifying the local partnership in-
volved in accordance with section 308(c)(3);
(B) prohibiting the use of providers who
have been identified as eligible providers of work-
force investment activities under chapter 3 of
subtitle A;
(C) selecting an alternative entity to ad-
minister a program or activity for the local area
involved;
(D) merging the local area into 1 or more
other local areas; or
(E) making such other changes as the Sec-
retary or Governor determines to be necessary to
secure compliance.
(2) APPEAL.—The action taken by the Governor
pursuant to paragraph (1) may be appealed to the
Secretary, who shall make a final decision on the ap-
peal not later than 60 days after the receipt of the ap-
peal.
(3) ACTION
BY
SECRETARY.—If the Governor
fails to take promptly the action required under para-
graph (1), the Secretary shall take such action.
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(c) ACCESS
BY COMPTROLLER GENERAL.—For the
purpose of evaluating and reviewing programs and activi-
ties established or provided for by this title, the Comptroller
General shall have access to and the right to copy any books,
accounts, records, correspondence, or other documents perti-
nent to such programs and activities that are in the posses-
sion, custody, or control of a State, a local partnership, any
recipient of funds under this title, or any subgrantee or con-
tractor of such a recipient.
(d) REPAYMENT
OF CERTAIN AMOUNTS
TO
THE
UNITED STATES.—
(1) IN
GENERAL.—Every recipient of funds
under this title shall repay to the United States
amounts found not to have been expended in accord-
ance with this title.
(2) OFFSET OF REPAYMENT.—If the Secretary
determines that a State has expended funds made
available under this title in a manner contrary to the
requirements of this title, the Secretary may offset re-
payment of such expenditures against any other
amount to which the State is or may be entitled, ex-
cept as provided under subsection (e)(1).
(3) REPAYMENT FROM DEDUCTION BY STATE.—
If the Secretary requires a State to repay funds as a
result of a determination that a local area of the
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State has expended funds contrary to the require-
ments of this title, the Governor of the State may use
an amount deducted under paragraph (4) to repay
the funds, except as provided under subsection (e)(1).
(4) DEDUCTION BY STATE.—The Governor may
deduct an amount equal to the misexpenditure de-
scribed in paragraph (3) from subsequent program
year allocations to the local area from funds reserved
for the administrative costs of the local programs in-
volved, as appropriate.
(5) LIMITATIONS.—A deduction made by a State
as described in paragraph (4) shall not be made until
such time as the Governor has taken appropriate cor-
rective action to ensure full compliance within such
local area with regard to appropriate expenditures of
funds under this title.
(e) REPAYMENT OF AMOUNTS.—
(1) IN GENERAL.—Each recipient of funds under
this title shall be liable to repay the amounts de-
scribed in subsection (d)(1), from funds other than
funds received under this title, upon a determination
by the Secretary that the misexpenditure of funds was
due to willful disregard of the requirements of this
title, gross negligence, failure to observe accepted
standards of administration, or a pattern of
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misexpenditure as described in paragraphs (2) and
(3) of subsection (d). No such determination shall be
made under this subsection or subsection (d) until no-
tice and opportunity for a fair hearing has been given
to the recipient.
(2) FACTORS IN IMPOSING SANCTIONS.—In deter-
mining whether to impose any sanction authorized by
this section against a recipient for violations by a
subgrantee or contractor of such recipient under this
title (including the regulations issued under this
title), the Secretary shall first determine whether such
recipient has adequately demonstrated that the recipi-
ent has—
(A) established and adhered to an appro-
priate system for the award and monitoring of
grants and contracts with subgrantees and con-
tractors that contains acceptable standards for
ensuring accountability;
(B) entered into a written grant agreement
or contract with such subgrantee or contractor
that established clear goals and obligations in
unambiguous terms;
(C) acted with due diligence to monitor the
implementation of the grant agreement or con-
tract, including the carrying out of the appro-
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priate monitoring activities (including audits)
at reasonable intervals; and
(D) taken prompt and appropriate correc-
tive action upon becoming aware of any evidence
of a violation of this title, including regulations
issued under this title, by such subgrantee or
contractor.
(3) WAIVER.—If the Secretary determines that
the recipient has demonstrated substantial compliance
with the requirements of paragraph (2), the Secretary
may waive the imposition of sanctions authorized by
this section upon such recipient. The Secretary is au-
thorized to impose any sanction consistent with the
provisions of this title and any applicable Federal or
State law directly against any subgrantee or contrac-
tor for violation of this title, including regulations
issued under this title.
(f) IMMEDIATE TERMINATION OR SUSPENSION OF AS-
SISTANCE IN EMERGENCY SITUATIONS.—In emergency situ-
ations, if the Secretary determines it is necessary to protect
the integrity of the funds or ensure the proper operation
of the program or activity involved, the Secretary may im-
mediately terminate or suspend financial assistance, in
whole or in part, to the recipient if the recipient is given
prompt notice and the opportunity for a subsequent hearing
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within 30 days after such termination or suspension. The
Secretary shall not delegate any of the functions or author-
ity specified in this subsection, other than to an officer
whose appointment is required to be made by and with the
advice and consent of the Senate.
(g) DISCRIMINATION AGAINST PARTICIPANTS.—If the
Secretary determines that any recipient of funds under this
title has discharged or in any other manner discriminated
in violation of section 378 against, a participant or any
other individual in connection with the administration of
the program or activity involved, or any individual because
such individual has filed any complaint or instituted or
caused to be instituted any proceeding under or related to
this title, or has testified or is about to testify in any such
proceeding or investigation under or related to this title,
or otherwise unlawfully denied to any individual a benefit
to which that individual is entitled under the provisions
of this title, including regulations issued under this title,
the Secretary shall, within 30 days after the date of the
determination, take such action or order such corrective
measures, as may be necessary, with respect to the recipient
or the aggrieved individual.
(h) REMEDIES.—The remedies described in this section
shall not be construed to be the exclusive remedies available
for violations described in this section.
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SEC. 375. REPORTS; RECORDKEEPING; INVESTIGATIONS.
(a) REPORTS.—
(1) IN GENERAL.—Recipients of funds under this
title shall keep records that are sufficient to permit
the preparation of reports required by this title and
to permit the tracing of funds to a level of expendi-
ture adequate to ensure that the funds have not been
spent unlawfully.
(2) SUBMISSION
TO
THE
SECRETARY.—Every
such recipient shall maintain such records and sub-
mit such reports, in such form and containing such
information, as the Secretary may require regarding
the performance of programs and activities carried
out under this title. Such records and reports shall be
submitted to the Secretary but shall not be required
to be submitted more than once each quarter unless
specifically requested by Congress or a committee of
Congress.
(3) 
MAINTENANCE
OF
STANDARDIZED
RECORDS.—In order to allow for the preparation of
the reports required under subsection (c), such recipi-
ents shall maintain standardized records for all indi-
vidual participants and provide to the Secretary a
sufficient number of such records to provide for an
adequate analysis of the records.
(4) AVAILABILITY TO THE PUBLIC.—
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(A) IN GENERAL.—Except as provided in
subparagraph (B), records maintained by such
recipients pursuant to this subsection shall be
made available to the public upon request.
(B) EXCEPTION.—Subparagraph (A) shall
not apply to—
(i) information, the disclosure of which
would constitute a clearly unwarranted in-
vasion of personal privacy; and
(ii) trade secrets, or commercial or fi-
nancial information, that is obtained from
a person and privileged or confidential.
(C) FEES TO RECOVER COSTS.—Such re-
cipients may charge fees sufficient to recover
costs applicable to the processing of requests for
records under subparagraph (A).
(b) INVESTIGATIONS OF USE OF FUNDS.—
(1) IN GENERAL.—
(A) SECRETARY.—In order to evaluate com-
pliance with the provisions of this title, the Sec-
retary shall conduct, in several States, in each
fiscal year, investigations of the use of funds re-
ceived by recipients under this title.
(B) 
COMPTROLLER
GENERAL
OF
THE
UNITED STATES.—In order to ensure compliance
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with the provisions of this title, the Comptroller
General of the United States may conduct inves-
tigations of the use of funds received under this
title by any recipient.
(2) PROHIBITION.—In conducting any investiga-
tion under this title, the Secretary or the Comptroller
General of the United States may not request the
compilation of any information that the recipient is
not otherwise required to compile and that is not
readily available to such recipient.
(3) AUDITS.—
(A) IN
GENERAL.—In carrying out any
audit under this title (other than any initial
audit survey or any audit investigating possible
criminal or fraudulent conduct), either directly
or through grant or contract, the Secretary, the
Inspector General of the Department of Labor, or
the Comptroller General of the United States
shall furnish to the State, recipient, or other en-
tity to be audited, advance notification of the
overall objectives and purposes of the audit, and
any extensive recordkeeping or data requirements
to be met, not later than 14 days (or as soon as
practicable), prior to the commencement of the
audit.
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(B) NOTIFICATION
REQUIREMENT.—If the
scope, objectives, or purposes of the audit change
substantially during the course of the audit, the
entity being audited shall be notified of the
change as soon as practicable.
(C) ADDITIONAL
REQUIREMENT.—The re-
ports on the results of such audits shall cite the
law, regulation, policy, or other criteria applica-
ble to any finding contained in the reports.
(D) RULE
OF
CONSTRUCTION.—Nothing
contained in this title shall be construed so as to
be inconsistent with the Inspector General Act of
1978 (5 U.S.C. App.) or government auditing
standards issued by the Comptroller General of
the United States.
(c) ACCESSIBILITY OF REPORTS.—Each State, each
local partnership, and each recipient (other than a sub-
recipient, subgrantee, or contractor of a recipient) receiving
funds under this title shall—
(1) make readily accessible such reports concern-
ing its operations and expenditures as shall be pre-
scribed by the Secretary;
(2) prescribe and maintain comparable manage-
ment information systems, in accordance with guide-
lines that shall be prescribed by the Secretary, de-
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signed to facilitate the uniform compilation, cross
tabulation, and analysis of programmatic, partici-
pant, and financial data, on statewide, local area,
and other appropriate bases, necessary for reporting,
monitoring, and evaluating purposes, including data
necessary to comply with section 378; and
(3) monitor the performance of providers in com-
plying with the terms of grants, contracts, or other
agreements made pursuant to this title.
(d) INFORMATION TO BE INCLUDED IN REPORTS.—
(1) IN GENERAL.—The reports required in sub-
section (c) shall include information regarding pro-
grams and activities carried out under this title per-
taining to—
(A) the relevant demographic characteristics
(including race, ethnicity, sex, and age) and
other related information regarding participants;
(B) the programs and activities in which
participants are enrolled, and the length of time
that participants are engaged in such programs
and activities;
(C) outcomes of the programs and activities
for participants, including the occupations of
participants, and placement for participants in
nontraditional employment;
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(D) specified costs of the programs and ac-
tivities; and
(E) information necessary to prepare re-
ports to comply with section 378.
(2) ADDITIONAL REQUIREMENT.—The Secretary
shall ensure that all elements of the information re-
quired for the reports described in paragraph (1) are
defined and reported uniformly.
(e) RETENTION
OF RECORDS.—The Governor of a
State that receives funds under this title shall ensure that
requirements are established for retention of all records of
the State pertinent to all grants awarded, and contracts
and agreements entered into, under this title, including fi-
nancial, statistical, property, and participant records and
supporting documentation. For funds allotted to a State
under this title for any program year, the State shall retain
the records for 2 subsequent program years. The State shall
retain records for nonexpendable property that is used to
carry out this title for a period of 3 years after final dis-
position of the property.
(f) QUARTERLY FINANCIAL REPORTS.—
(1) IN GENERAL.—Each local partnership in the
State shall submit quarterly financial reports to the
Governor with respect to programs and activities car-
ried out under this title. Such reports shall include
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information identifying all program and activity
costs by cost category in accordance with generally
accepted accounting principles and by year of the ap-
propriation involved.
(2) ADDITIONAL
REQUIREMENT.—Each State
shall submit to the Secretary, on a quarterly basis, a
summary of the reports submitted to the Governor
pursuant to paragraph (1).
(g) MAINTENANCE OF ADDITIONAL RECORDS.—Each
State and local partnership shall maintain records with re-
spect to programs and activities carried out under this title
that identify—
(1) any income or profits earned, including such
income or profits earned by subrecipients; and
(2) any costs incurred (such as stand-in costs)
that are otherwise allowable except for funding limi-
tations.
(h) COST
CATEGORIES.—In requiring entities to
maintain records of costs by category under this title, the
Secretary shall require only that the costs be categorized as
administrative or programmatic costs.
SEC. 376. ADMINISTRATIVE ADJUDICATION.
(a) IN GENERAL.—Whenever any applicant for finan-
cial assistance under this title is dissatisfied because the
Secretary has made a determination not to award financial
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assistance in whole or in part to such applicant, the appli-
cant may request a hearing before an administrative law
judge of the Department of Labor. A similar hearing may
also be requested by any recipient for whom a corrective
action has been required or a sanction has been imposed
by the Secretary under section 374. Except to the extent
provided for in section 371(c) or 378, all other disputes
arising under this title relating to the manner in which
the recipient carries out a program or activity under this
title shall be adjudicated under grievance procedures estab-
lished by the recipient or under applicable law other than
this title.
(b) APPEAL.—The decision of the administrative law
judge shall constitute final action by the Secretary unless,
within 20 days after receipt of the decision of the adminis-
trative law judge, a party dissatisfied with the decision or
any part of the decision has filed exceptions with the Sec-
retary specifically identifying the procedure, fact, law, or
policy to which exception is taken. Any exception not spe-
cifically urged shall be deemed to have been waived. After
the 20-day period the decision of the administrative law
judge shall become the final decision of the Secretary unless
the Secretary, within 30 days after such filing, has notified
the parties that the case involved has been accepted for re-
view.
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(c) TIME LIMIT.—Any case accepted for review by the
Secretary under subsection (b) shall be decided within 180
days after such acceptance. If the case is not decided within
the 180-day period, the decision of the administrative law
judge shall become the final decision of the Secretary at the
end of the 180-day period.
(d) ADDITIONAL REQUIREMENT.—The provisions of
section 377 shall apply to any final action of the Secretary
under this section.
SEC. 377. JUDICIAL REVIEW.
(a) REVIEW.—
(1) PETITION.—With respect to any final order
by the Secretary under section 376 by which the Sec-
retary awards, declines to award, or only condi-
tionally awards, financial assistance under this title,
or any final order of the Secretary under section 376
with respect to a corrective action or sanction im-
posed under section 374, any party to a proceeding
which resulted in such final order may obtain review
of such final order in the United States Court of Ap-
peals having jurisdiction over the applicant or recipi-
ent of funds involved, by filing a review petition
within 30 days after the date of issuance of such final
order.
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(2) ACTION ON PETITION.—The clerk of the court
shall transmit a copy of the review petition to the
Secretary who shall file the record on which the final
order was entered as provided in section 2112 of title
28, United States Code. The filing of a review peti-
tion shall not stay the order of the Secretary, unless
the court orders a stay. Petitions filed under this sub-
section shall be heard expeditiously, if possible within
10 days after the date of filing of a reply to the peti-
tion.
(3) STANDARD AND SCOPE OF REVIEW.—No ob-
jection to the order of the Secretary shall be consid-
ered by the court unless the objection was specifically
urged, in a timely manner, before the Secretary. The
review shall be limited to questions of law and the
findings of fact of the Secretary shall be conclusive if
supported by substantial evidence.
(b) JUDGMENT.—The court shall have jurisdiction to
make and enter a decree affirming, modifying, or setting
aside the order of the Secretary in whole or in part. The
judgment of the court regarding the order shall be final,
subject to certiorari review by the Supreme Court as pro-
vided in section 1254(1) of title 28, United States Code.
SEC. 378. NONDISCRIMINATION.
(a) PROHIBITED DISCRIMINATION.—
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(1) PROHIBITION ON DISCRIMINATION IN FED-
ERAL PROGRAMS AND ACTIVITIES.—For the purpose
of applying the prohibitions against discrimination
on the basis of age under the Age Discrimination Act
of 1975 (42 U.S.C. 6101 et seq.), on the basis of dis-
ability under section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794), on the basis of sex under title
IX of the Education Amendments of 1972 (20 U.S.C.
1681 et seq.), on the basis of race, color, or national
origin under title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.), or on the basis of religion
under any applicable provision of Federal law, pro-
grams and activities funded or otherwise financially
assisted in whole or in part under this title shall be
considered to be programs and activities receiving
Federal financial assistance, and education programs
and activities receiving Federal financial assistance.
(2) PROHIBITION OF DISCRIMINATION REGARD-
ING PARTICIPATION, BENEFITS, AND EMPLOYMENT.—
Except as otherwise permitted under title IX of the
Education Amendments of 1972, no individual shall
be excluded from participation in, denied the benefits
of, subjected to discrimination under, or denied em-
ployment in the administration of or in connection
with, any such program or activity because of race,
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color, religion, sex, national origin, age, disability, or
political affiliation or belief.
(3) PROHIBITION ON ASSISTANCE FOR FACILI-
TIES
FOR
SECTARIAN
INSTRUCTION
OR
RELIGIOUS
WORSHIP.—Participants shall not be employed under
this title to carry out the construction, operation, or
maintenance of any part of any facility that is used
or to be used for sectarian instruction or as a place
for religious worship (except with respect to the main-
tenance of a facility that is not primarily or inher-
ently devoted to sectarian instruction or religious
worship, in a case in which the organization operat-
ing the facility is part of a program or activity pro-
viding services to participants).
(4) PROHIBITION ON DISCRIMINATION ON BASIS
OF PARTICIPANT STATUS.—No person may discrimi-
nate against an individual who is a participant in
a program or activity that receives funds under this
title, with respect to the terms and conditions affect-
ing, or rights provided to, the individual, solely be-
cause of the status of the individual as a participant,
in carrying out any endeavor that involves—
(A) participants in programs and activities
that receive funding under this title; and
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(B) persons who receive no assistance under
this title.
(5) PROHIBITION ON DISCRIMINATION AGAINST
CERTAIN
NONCITIZENS.—Participation in programs
and activities or receiving funds under this title shall
be available to citizens and nationals of the United
States, lawfully admitted permanent resident aliens,
refugees, asylees, and parolees, other aliens lawfully
present in the United States, and other individuals
authorized by the Attorney General to work in the
United States.
(b) ACTION OF SECRETARY.—Whenever the Secretary
finds that a State or other recipient of funds under this
title has failed to comply with a provision of law referred
to in subsection (a)(1), or with paragraph (2), (3), (4), or
(5) of subsection (a), including an applicable regulation
prescribed to carry out such provision or paragraph, the
Secretary shall notify such State or recipient and shall re-
quest that the State or recipient comply. If within a reason-
able period of time, not to exceed 60 days, the State or recip-
ient fails or refuses to comply, the Secretary may—
(1) refer the matter to the Attorney General with
a recommendation that an appropriate civil action be
instituted;
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(2) exercise the powers and functions provided to
the head of a Federal department or agency under the
Age Discrimination Act of 1975, section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), title IX
of the Education Amendments of 1972, or title VI of
the Civil Rights Act of 1964, as may be applicable;
or
(3) take such other action as may be provided by
law.
(c) ACTION OF ATTORNEY GENERAL.—When a matter
is referred to the Attorney General pursuant to subsection
(b)(1), or whenever the Attorney General has reason to be-
lieve that a State or other recipient of funds under this title
is engaged in a pattern or practice of discrimination in
violation of a provision of law referred to in subsection
(a)(1) or in violation of paragraph (2), (3), (4), or (5) of
subsection (a), the Attorney General may bring a civil ac-
tion in any appropriate district court of the United States
for such relief as may be appropriate, including injunctive
relief.
(d) JOB CORPS MEMBERS.—For purposes of this sec-
tion, Job Corps members shall be considered as the ultimate
beneficiaries of a program or activity receiving Federal fi-
nancial assistance and an education program or activity
receiving Federal financial assistance.
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SEC. 379. ADMINISTRATIVE PROVISIONS.
(a) IN GENERAL.—The Secretary may, in accordance
with chapter 5 of title 5, United States Code, prescribe rules
and regulations to carry out this title to the extent necessary
to implement, administer, and ensure compliance with the
requirements of this title. Such rules and regulations may
include provisions making adjustments authorized by sec-
tion 6504 of title 31, United States Code. All such rules
and regulations shall be published in the Federal Register
at least 30 days prior to their effective dates. Copies of each
such rule or regulation shall be transmitted to the appro-
priate committees of Congress on the date of such publica-
tion and shall contain, with respect to each material provi-
sion of such rule or regulation, a citation to the particular
substantive section of law that is the basis for the provision.
(b) ACQUISITION OF CERTAIN PROPERTY AND SERV-
ICES.—The Secretary is authorized, in carrying out this
title, to accept, purchase, or lease in the name of the Depart-
ment of Labor, and employ or dispose of in furtherance of
the purposes of this title, any money or property, real, per-
sonal, or mixed, tangible or intangible, received by gift, de-
vise, bequest, or otherwise, and to accept voluntary and un-
compensated services notwithstanding the provisions of sec-
tion 1342 of title 31, United States Code.
(c) AUTHORITY TO ENTER INTO CERTAIN AGREE-
MENTS AND TO MAKE CERTAIN EXPENDITURES.—The Sec-
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retary may make such grants, enter into such contracts or
agreements, establish such procedures, and make such pay-
ments, in installments and in advance or by way of reim-
bursement, or otherwise allocate or expend such funds under
this title, as may be necessary to carry out this title, includ-
ing making expenditures for construction, repairs, and cap-
ital improvements, and including making necessary adjust-
ments in payments on account of over-payments or under-
payments.
(d) ANNUAL REPORT.—The Secretary shall prepare
and submit to Congress an annual report regarding the pro-
grams and activities carried out under this title. The Sec-
retary shall include in such report—
(1) a summary of the achievements, failures, and
problems of the programs and activities in meeting
the objectives of this title;
(2) a summary of major findings from research,
evaluations, pilot projects, and experiments conducted
under this title in the fiscal year prior to the submis-
sion of the report;
(3) recommendations for modifications in the
programs and activities based on analysis of such
findings; and
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HR 1385 EAS
(4) such other recommendations for legislative or
administrative action as the Secretary determines to
be appropriate.
(e) UTILIZATION OF SERVICES AND FACILITIES.—The
Secretary is authorized, in carrying out this title, under
the same procedures as are applicable under subsection (c)
or to the extent permitted by law other than this title, to
accept and use the services and facilities of departments,
agencies, and establishments of the United States. The Sec-
retary is also authorized, in carrying out this title, to ac-
cept and use the services and facilities of the agencies of
any State or political subdivision of a State, with the con-
sent of the State or political subdivision.
(f) OBLIGATIONAL AUTHORITY.—Notwithstanding any
other provision of this title, the Secretary shall have no au-
thority to enter into contracts, grant agreements, or other
financial assistance agreements under this title except to
such extent and in such amounts as are provided in ad-
vance in appropriations Acts.
(g) PROGRAM YEAR.—
(1) IN GENERAL.—
(A) PROGRAM YEAR.—Except as provided
in subparagraph (B), appropriations for any fis-
cal year for programs and activities carried out
under this title shall be available for obligation
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only on the basis of a program year. The pro-
gram year shall begin on July 1 in the fiscal
year for which the appropriation is made.
(B) YOUTH
ACTIVITIES.—The Secretary
may make available for obligation, beginning
April 1 of any fiscal year, funds appropriated
for such fiscal year to carry out youth activities
under subtitle A.
(2) AVAILABILITY.—Funds obligated for any pro-
gram year for a program or activity carried out
under this title may be expended by each State receiv-
ing such funds during that program year and the 2
succeeding program years. Funds obligated for any
program year for a program or activity carried out
under section 367 or 368 shall remain available until
expended. Funds received by local areas from States
under this title during a program year may be ex-
pended during that program year and the succeeding
program year. No amount of the funds described in
this paragraph shall be deobligated on account of a
rate of expenditure that is consistent with a State
plan, an operating plan described in section 341, or
a plan, grant agreement, contract, application, or
other agreement described in subtitle C, as appro-
priate.
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(h) ENFORCEMENT OF MILITARY SELECTIVE SERVICE
ACT.—The Secretary shall ensure that each individual par-
ticipating in any program or activity established under this
title, or receiving any assistance or benefit under this title,
has not violated section 3 of the Military Selective Service
Act (50 U.S.C. App. 453) by not presenting and submitting
to registration as required pursuant to such section. The
Director of the Selective Service System shall cooperate with
the Secretary to enable the Secretary to carry out this sub-
section.
(i) WAIVERS AND SPECIAL RULES.—
(1) EXISTING WAIVERS.—With respect to a State
that has been granted a waiver under the provisions
relating to training and employment services of the
Department of Labor in title I of the Departments of
Labor, Health and Human Services, and Education,
and Related Agencies Appropriations Act, 1997 (Pub-
lic Law 104–208; 110 Stat. 3009–234), the authority
provided under such waiver shall continue in effect
and apply, and include a waiver of the related provi-
sions of subtitle A and this subtitle, for the duration
of the initial waiver.
(2) SPECIAL
RULE
REGARDING
DESIGNATED
AREAS.—A State that enacts, not later than December
31, 1997, a State law providing for the designation
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of service delivery areas for the delivery of workforce
investment activities, may use such areas as local
areas under this title, notwithstanding section 307(a).
(3) SPECIAL RULE REGARDING SANCTIONS.—A
State that enacts, not later than December 31, 1997,
a State law providing for the sanctioning of such
service delivery areas for failure to meet performance
measures for workforce investment activities, may use
the State law to sanction local areas for failure to
meet State performance measures under this title.
(4) GENERAL WAIVERS OF STATUTORY OR REGU-
LATORY REQUIREMENTS.—
(A) GENERAL
AUTHORITY.—Notwithstand-
ing any other provision of law, the Secretary
may waive for a State, or a local area in a
State, pursuant to a request submitted by the
Governor of the State (in consultation with ap-
propriate local elected officials) that meets the re-
quirements of subparagraph (B)—
(i) any of the statutory or regulatory
requirements of subtitle A or this subtitle
(except for requirements relating to wage
and labor standards, worker rights, partici-
pation and protection of workers, grievance
procedures 
and 
judicial 
review, 
non-
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discrimination, allocation of funds to local
areas, eligibility of providers or partici-
pants, the establishment and functions of
local areas and local partnerships, and pro-
cedures for review and approval of plans);
and
(ii) any of the statutory or regulatory
requirements of sections 8 through 10 of the
Wagner-Peyser Act (29 U.S.C. 49g through
49i) (excluding requirements relating to the
provision of services to unemployment in-
surance claimants and veterans, and re-
quirements relating to universal access to
basic labor exchange services without cost to
jobseekers).
(B) REQUESTS.—A Governor requesting a
waiver under subparagraph (A) shall submit a
plan to the Secretary to improve the statewide
workforce investment system that—
(i) identifies the statutory or regu-
latory requirements that are requested to be
waived and the goals that the State or local
area in the State, as appropriate, intends to
achieve as a result of the waiver;
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(ii) describes the actions that the State
or local area, as appropriate, has under-
taken to remove State or local statutory or
regulatory barriers;
(iii) describes the goals of the waiver
and the expected programmatic outcomes if
the request is granted;
(iv) describes the individuals impacted
by the waiver; and
(v) describes the process used to mon-
itor the progress in implementing such a
waiver, and the process by which notice and
an opportunity to comment on such request
has been provided to the organizations iden-
tified in section 308(c)(2).
(C) CONDITIONS.—Not later than 90 days
after the date of the original submission of a re-
quest for a waiver under subparagraph (A), the
Secretary shall provide a waiver under this
paragraph if and only to the extent that—
(i) the Secretary determines that the
requirements requested to be waived impede
the ability of the State or local area, as ap-
propriate, to implement the plan described
in subparagraph (B); and
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(ii) the State has executed a memoran-
dum of understanding with the Secretary
requiring such State to meet, or ensure that
the local area meets, agreed-upon outcomes
and to implement other appropriate meas-
ures to ensure accountability.
SEC. 380. STATE LEGISLATIVE AUTHORITY.
(a) AUTHORITY OF STATE LEGISLATURE.—Nothing in
this title shall be interpreted to preclude the enactment of
State legislation providing for the implementation, consist-
ent with the provisions of this title, of the activities assisted
under this title. Any funds received by a State under this
title shall be subject to appropriation by the State legisla-
ture, consistent with the terms and conditions required
under this title.
(b) 
INTERSTATE
COMPACTS
AND
COOPERATIVE
AGREEMENTS.—In the event that compliance with provi-
sions of this title would be enhanced by compacts and coop-
erative agreements between States, the consent of Congress
is given to States to enter into such compacts and agree-
ments to facilitate such compliance, subject to the approval
of the Secretary.
SEC. 381. WORKFORCE FLEXIBILITY PARTNERSHIP PLANS.
(a) PLANS.—A State may submit to the Secretary,
and the Secretary may approve, a workforce flexibility
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partnership plan under which the State is authorized to
waive, in accordance with the plan—
(1) any of the statutory or regulatory require-
ments applicable under this title to local areas, pur-
suant to applications for such waivers from the local
areas, except for requirements relating to the basic
purposes of this title, wage and labor standards,
grievance procedures and judicial review, non-
discrimination, eligibility of participants, allocation
of funds to local areas, establishment and functions of
local areas and local partnerships, review and ap-
proval of local plans, and worker rights, participa-
tion, and protection;
(2) any of the statutory or regulatory require-
ments applicable under sections 8 through 10 of the
Wagner-Peyser Act (29 U.S.C. 49g through 49i) to the
State, except for requirements relating to the provi-
sion of services to unemployment insurance claimants
and veterans, and to universal access to basic labor
exchange services without cost to jobseekers; and
(3) any of the statutory or regulatory require-
ments applicable under the Older Americans Act of
1965 (42 U.S.C. 3001 et seq.) to State agencies on
aging with respect to activities carried out using
funds allotted under section 506(a)(3) of such Act (42
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U.S.C. 3056d(a)(3)), except for requirements relating
to the basic purposes of such Act, wage and labor
standards, eligibility of participants in the activities,
and standards for agreements.
(b) CONTENT OF PLANS.—A workforce flexibility part-
nership plan implemented by a State under subsection (a)
shall include descriptions of—
(1)(A) the process by which local areas in the
State may submit and obtain approval by the State
of applications for waivers of requirements applicable
under this title; and
(B) the requirements described in subparagraph
(A) that are likely to be waived by the State under
the plan;
(2) the requirements applicable under sections 8
through 10 of the Wagner-Peyser Act that are pro-
posed to be waived, if any;
(3) the requirements applicable under the Older
Americans Act of 1965 that are proposed to be
waived, if any;
(4) the outcomes to be achieved by the waivers
described in paragraphs (1) through (3); and
(5) other measures to be taken to ensure appro-
priate accountability for Federal funds in connection
with the waivers.
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(c) PERIODS.—The Secretary may approve a work-
force flexibility partnership plan for a period of not more
than 5 years.
(d) OPPORTUNITY FOR PUBLIC COMMENTS.—Prior to
submitting a workforce flexibility partnership plan to the
Secretary for approval, the State shall provide to all inter-
ested parties and to the general public adequate notice and
a reasonable opportunity for comment on the waiver re-
quests proposed to be implemented pursuant to such plan.
SEC. 382. USE OF CERTAIN REAL PROPERTY.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, pursuant to a plan submitted by a Governor
of a State and approved by the Secretary, the Governor may
authorize a public agency to use, for any of the functions
of a one-stop customer service system within the State, real
property in which, as of the effective date of this Act, the
Federal Government has acquired equity through use of
funds provided under title III of the Social Security Act
(42 U.S.C. 501 et seq.), section 903(c) of such Act (42
U.S.C. 1103(c)), or the Wagner-Peyser Act (29 U.S.C. 49
et seq.).
(b) USE OF FUNDS.—Subsequent to the commencement
of the use of the property described in subsection (a) for
the functions of a one-stop customer service system, funds
provided under the provisions of law described in subsection
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(a) may only be used to acquire further equity in such prop-
erty, or to pay operating and maintenance expenses relat-
ing to such property in proportion to the extent of the use
of such property attributable to the activities authorized
under such provisions of law.
SEC. 383. CONTINUATION OF STATE ACTIVITIES AND POLI-
CIES.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of this title, the Secretary may not deny approval of
a State plan for a covered State, or an application of a
covered State for financial assistance, under this title or
find a covered State (including a statewide partnership or
Governor), or a local area (including a local partnership
or chief elected official) in a covered State, in violation of
a provision of this title, on the basis that—
(1)(A) the State proposes to allocate or disburse,
allocates, or disburses, within the State, funds made
available to the State under section 302 in accordance
with the allocation formula for the type of activities
involved, or in accordance with a disbursal procedure
or process, used by the State under prior consistent
State law; or
(B) a local partnership in the State proposes to
disburse, or disburses, within the local area, funds
made available to a State under section 302 in ac-
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cordance with a disbursal procedure or process used
by a private industry council under prior consistent
State law;
(2) the State proposes to carry out or carries out
a State procedure through which local areas use, as
fiscal agents for funds made available to the State
under section 302 and allocated within the State, fis-
cal agents selected in accordance with a process estab-
lished under prior consistent State law;
(3) the State proposes to carry out or carries out
a State procedure through which the local partner-
ships in the State (or the local partnerships, the chief
elected officials in the State, and the Governor) des-
ignate or select the one-stop partners and one-stop
customer service center operators of the statewide sys-
tem in the State under prior consistent State law, in
lieu of making the appointment, designation, or cer-
tification described in section 311 (regardless of the
date the one-stop customer service systems involved
have been established);
(4) the State proposes to carry out or carries out
a State procedure through which the persons respon-
sible for selecting eligible providers for purposes of
subtitle A are permitted to determine that a provider
shall not be selected to provide both intake services
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under section 315(c)(2) and training services under
section 315(c)(3), under prior consistent State law;
(5) the State proposes to designate or designates
a statewide partnership, or proposes to assign or as-
signs functions and roles of the statewide partnership
(including determining the time periods for develop-
ment and submission of a State plan required under
section 304), for purposes of subtitle A in accordance
with prior consistent State law; or
(6) a local partnership in the State proposes to
use or carry out, uses, or carries out a local plan (in-
cluding assigning functions and roles of the local
partnership) for purposes of subtitle A in accordance
with the authorities and requirements applicable to
local plans and private industry councils under prior
consistent State law.
(b) DEFINITION.—In this section:
(1) COVERED STATE.—The term ‘‘covered State’’
means a State that enacted a State law described in
paragraph (2).
(2) PRIOR CONSISTENT STATE LAW.—The term
‘‘prior consistent State law’’ means a State law, not
inconsistent with the Job Training Partnership Act
or any other applicable Federal law, that took effect
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on September 1, 1993, September 1, 1995, or Septem-
ber 1, 1997.
Subtitle E—Repeals and
Conforming Amendments
SEC. 391. REPEALS.
(a) GENERAL 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.), except section 738 of such title (42 U.S.C.
11448).
(6) Subchapter I of chapter 421 of title 49,
United States Code.
(b) SUBSEQUENT REPEALS.—The following provisions
are repealed:
(1) The Job Training Partnership Act (29
U.S.C. 1501 et seq.).
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(2) Title VII of the Stewart B. McKinney Home-
less Assistance Act (42 U.S.C. 11421 et seq.), except
subtitle B and section 738 of such title (42 U.S.C.
11431 et seq. and 11448).
SEC. 392. CONFORMING AMENDMENTS.
(a) PREPARATION.—After consultation with the appro-
priate committees of Congress and the Director of the Office
of Management and Budget, the Secretary shall prepare rec-
ommended legislation containing technical and conforming
amendments to reflect the changes made by this subtitle.
(b) SUBMISSION
TO CONGRESS.—Not later than 6
months after the date of enactment of this Act, the Secretary
shall submit to Congress the recommended legislation re-
ferred to under subsection (a).
SEC. 393. EFFECTIVE DATES.
(a) IMMEDIATE REPEALS.—The repeals made by sec-
tion 391(a) shall take effect on the date of enactment of this
Act.
(b) SUBSEQUENT REPEALS.—The repeals made by sec-
tion 391(b) shall take effect on July 1, 1999.
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TITLE IV—WORKFORCE INVEST-
MENT-RELATED ACTIVITIES
Subtitle A—Wagner-Peyser Act
SEC. 401. DEFINITIONS.
Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a)
is amended—
(1) in paragraph (1)—
(A) by striking ‘‘or officials’’; and
(B) by striking ‘‘Job Training Partnership
Act’’ and inserting ‘‘Workforce Investment Part-
nership Act of 1998’’;
(2) by striking paragraphs (2) and (4);
(3) by redesignating paragraphs (3) and (5) as
paragraphs (5) and (6), respectively;
(4) by inserting after paragraph (1) the follow-
ing:
‘‘(2) the term ‘local workforce investment area’
means a local workforce investment area designated
under section 307 of the Workforce Investment Part-
nership Act of 1998;
‘‘(3) the term ‘local workforce investment part-
nership’ means a local workforce investment partner-
ship established under section 308 of the Workforce
Investment Partnership Act of 1998;
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‘‘(4) the term ‘one-stop customer service system’
means a one-stop customer service system established
under section 315(b) of the Workforce Investment
Partnership Act of 1998;’’; and
(5) in paragraph (5) (as redesignated in para-
graph (3)), by striking the semicolon and inserting ‘‘;
and’’.
SEC. 402. FUNCTIONS.
(a) IN GENERAL.—Section 3 of the Wagner-Peyser Act
(29 U.S.C. 49b) is amended—
(1) in subsection (a), by striking ‘‘United States
Employment Service’’ and inserting ‘‘Secretary’’; and
(2) by adding at the end the following:
‘‘(c) The Secretary shall—
‘‘(1) assist in the coordination and development
of a nationwide system of public labor exchange serv-
ices, provided as part of the one-stop customer service
systems of the States;
‘‘(2) assist in the development of continuous im-
provement models for such nationwide system that en-
sure private sector satisfaction with the system and
meet the demands of jobseekers relating to the system;
and
‘‘(3) ensure, for individuals otherwise eligible to
receive unemployment compensation, the provision of
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reemployment services and other activities in which
the individuals are required to participate to receive
the compensation.’’.
(b) CONFORMING AMENDMENTS.—Section 508(b)(1) of
the Unemployment Compensation Amendments of 1976 (42
U.S.C. 603a(b)(1)) is amended—
(1) by striking ‘‘the third sentence of section
3(a)’’ and inserting ‘‘section 3(b)’’; and
(2) by striking ‘‘49b(a)’’ and inserting ‘‘49b(b))’’.
SEC. 403. DESIGNATION OF STATE AGENCIES.
Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c)
is amended—
(1) by striking ‘‘, through its legislature,’’ and
inserting ‘‘, pursuant to State statute,’’;
(2) by inserting after ‘‘the provisions of this Act
and’’ the following: ‘‘, in accordance with such State
statute, the Governor shall’’; and
(3) by striking ‘‘United States Employment
Service’’ and inserting ‘‘Secretary’’.
SEC. 404. APPROPRIATIONS.
Section 5(c) of the Wagner-Peyser Act (29 U.S.C.
49d(c)) is amended by striking paragraph (3).
SEC. 405. DISPOSITION OF ALLOTTED FUNDS.
Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f)
is amended—
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(1) in subsection (b)(2), by striking ‘‘private in-
dustry council’’ and inserting ‘‘local workforce invest-
ment partnership’’;
(2) in subsection (c)(2), by striking ‘‘any pro-
gram under’’ and all that follows and inserting ‘‘any
workforce investment activity carried out under the
Workforce Investment Partnership Act of 1998.’’;
(3) in subsection (d)—
(A) by striking ‘‘United States Employment
Service’’ and inserting ‘‘Secretary’’; and
(B) by striking ‘‘Job Training Partnership
Act’’ and inserting ‘‘Workforce Investment Part-
nership Act of 1998’’; and
(4) by adding at the end the following:
‘‘(e) All job search, placement, recruitment, labor mar-
ket information, and other labor exchange services author-
ized under subsection (a) shall be provided, consistent with
the other requirements of this Act, as part of the one-stop
customer service system established by the State.’’.
SEC. 406. STATE PLANS.
Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g)
is amended—
(1) in subsection (a) to read as follows:
‘‘(a) Any State desiring to receive assistance under
this Act shall submit to the Secretary, as part of the State
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plan submitted under section 304 of the Workforce Invest-
ment Partnership Act of 1998, detailed plans for carrying
out the provisions of this Act within such State.’’;
(2) by striking subsections (b) and (c);
(3) by redesignating subsection (d) as subsection
(b);
(4) by inserting after subsection (b) the follow-
ing:
‘‘(c) The part of the State plan described in subsection
(a) shall include the information described in paragraphs
(9) and (17) of section 304(b) of the Workforce Investment
Partnership Act of 1998.’’;
(5) by redesignating subsection (e) as subsection
(d); and
(6) in subsection (d) (as redesignated in para-
graph (5)), by striking ‘‘such plans’’ and inserting
‘‘such detailed plans’’.
SEC. 407. REPEAL OF FEDERAL ADVISORY COUNCIL.
Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j)
is amended by striking ‘‘11.’’ and all that follows through
‘‘(b) In’’ and inserting ‘‘11. In’’.
SEC. 408. REGULATIONS.
Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k)
is amended by striking ‘‘The Director, with the approval
of the Secretary of Labor,’’ and inserting ‘‘The Secretary’’.
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SEC. 409. LABOR MARKET INFORMATION.
The Wagner-Peyser Act is amended—
(1) by redesignating section 15 (29 U.S.C. 49
note) as section 16; and
(2) by inserting after section 14 (29 U.S.C. 49l–
1) the following:
‘‘SEC. 15. LABOR MARKET INFORMATION.
‘‘(a) SYSTEM CONTENT.—
‘‘(1) IN GENERAL.—The Secretary, in accordance
with the provisions of this section, shall oversee the
development, maintenance, and continuous improve-
ment of a system of labor market information that in-
cludes—
‘‘(A) statistical data from cooperative sta-
tistical survey and projection programs and data
from administrative reporting systems that,
taken together, enumerate, estimate, and project
the employment opportunities at the national,
State, and local levels in a timely manner, in-
cluding data on—
‘‘(i) employment and unemployment
status of the national, State, and local pop-
ulations, as such data are developed by the
Bureau of Labor Statistics and other
sources;
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‘‘(ii) industrial distribution of occupa-
tions, as well as current and projected em-
ployment opportunities and skill trends by
occupation and industry, with particular
attention paid to State and local employ-
ment opportunities;
‘‘(iii) the incidence of, industrial and
geographical location of, and number of
workers displaced by, permanent layoffs
and plant closings; and
‘‘(iv) 
employee 
information 
main-
tained in a longitudinal manner and col-
lected (as of the date of enactment of the
Workforce Investment Partnership Act of
1998) by States;
‘‘(B) State and local employment informa-
tion, and other appropriate statistical data re-
lated to labor market dynamics (compiled for
States and localities with technical assistance
provided by the Secretary), which shall—
‘‘(i) be current and comprehensive, as
of the date used;
‘‘(ii) assist individuals to make in-
formed choices relating to employment and
training; and
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‘‘(iii) assist employers to locate, iden-
tify skill traits of, and train individuals
who are seeking employment and training;
‘‘(C) technical standards (which the Sec-
retary shall make publicly available) for data
and information described in subparagraphs (A)
and (B) that, at a minimum, meet the criteria
of chapter 35 of title 44, United States Code;
‘‘(D) procedures to ensure compatibility and
additivity of the data and information described
in subparagraphs (A) and (B) from national,
State, and local levels;
‘‘(E) procedures to support standardization
and aggregation of data from administrative re-
porting systems described in subparagraph (A)
of employment-related programs;
‘‘(F) analysis of data and information de-
scribed in subparagraphs (A) and (B) for uses
such as State and local policymaking;
‘‘(G) wide dissemination of such data, in-
formation, and analysis, training for users of the
data, information, and analysis, and voluntary
technical standards for dissemination mecha-
nisms; and
‘‘(H) programs of—
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‘‘(i) research and demonstration; and
‘‘(ii) technical assistance for States
and localities.
‘‘(2) INFORMATION TO BE CONFIDENTIAL.—
‘‘(A) IN GENERAL.—No officer or employee
of the Federal Government or agent of the Fed-
eral Government may—
‘‘(i) use any submission that is fur-
nished for exclusively statistical purposes
under the provisions of this section for any
purpose other than the statistical purposes
for which the submission is furnished;
‘‘(ii) make any publication or media
transmittal of the data contained in the
submission described in clause (i) that per-
mits information concerning individual
subjects to be reasonably inferred by either
direct or indirect means; or
‘‘(iii) permit anyone other than a
sworn officer, employee, or agent of any
Federal department or agency, or a contrac-
tor (including an employee of a contractor)
of such department or agency, to examine
an individual submission described in
clause (i);
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without the consent of the individual, agency, or
other person who is the subject of the submission
or provides that submission.
‘‘(B) IMMUNITY
FROM
LEGAL
PROCESS.—
Any submission (including any data derived
from the submission) that is collected and re-
tained by a Federal department or agency, or an
officer, employee, agent, or contractor of such a
department or agency, for exclusively statistical
purposes under this section shall be immune
from the legal process and shall not, without the
consent of the individual, agency, or other person
who is the subject of the submission or provides
that submission, be admitted as evidence or used
for any purpose in any action, suit, or other ju-
dicial or administrative proceeding.
‘‘(C) CONSTRUCTION.—Nothing in this sec-
tion shall be construed to provide immunity
from the legal process for such submission (in-
cluding any data derived from the submission) if
the submission is in the possession of any person,
agency, or entity other than the Federal Govern-
ment or an officer, employee, agent, or contractor
of the Federal Government, or if the submission
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is independently collected, retained, or produced
for purposes other than the purposes of this Act.
‘‘(b) SYSTEM RESPONSIBILITIES.—
‘‘(1) IN GENERAL.—The labor market informa-
tion system shall be planned, administered, overseen,
and evaluated through a cooperative governance struc-
ture involving the Federal Government and States.
‘‘(2) DUTIES.—The Secretary, with respect to
data collection, analysis, and dissemination of labor
market information for the system, shall carry out the
following duties:
‘‘(A) Assign responsibilities within the De-
partment of Labor for elements of the system de-
scribed in subsection (a) to ensure that all statis-
tical and administrative data collected is con-
sistent with appropriate Bureau of Labor Statis-
tics standards and definitions.
‘‘(B) Actively seek the cooperation of other
Federal agencies to establish and maintain
mechanisms for ensuring complementarity and
nonduplication in the development and oper-
ation of statistical and administrative data col-
lection activities.
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‘‘(C) Eliminate gaps and duplication in
statistical undertakings, with the systemization
of wage surveys as an early priority.
‘‘(D) In collaboration with the Bureau of
Labor Statistics and States, develop and main-
tain the elements of the system described in sub-
section (a), including the development of consist-
ent definitions for use by the States in collecting
the data and information described in subpara-
graphs (A) and (B), of subsection (a)(1) and the
development of the annual plan under subsection
(c).
‘‘(E) Establish procedures for the system to
ensure that—
‘‘(i) such data and information are
timely;
‘‘(ii) administrative records for the
system are consistent in order to facilitate
aggregation of such data and information;
‘‘(iii) paperwork and reporting for the
system are reduced to a minimum; and
‘‘(iv) States and localities are fully in-
volved in the maintenance and continuous
improvement of the system at the State and
local levels.
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‘‘(c) ANNUAL PLAN.—The Secretary, with the assist-
ance of the States and the Bureau of Labor Statistics, and
with the assistance of other appropriate Federal agencies,
shall prepare an annual plan which shall be the mechanism
for achieving cooperative management of the nationwide
labor market information system described in subsection (a)
and the statewide labor market information systems that
comprise the nationwide system. The plan shall—
‘‘(1)(A) describe the elements of the system de-
scribed in subsection (a), including standards, defini-
tions, formats, collection methodologies, and other nec-
essary system elements, for use in collecting data and
information described in subparagraphs (A) and (B)
of subsection (a)(1); and
‘‘(B) include assurances that—
‘‘(i) the data will be timely and detailed;
‘‘(ii) administrative records will be stand-
ardized to facilitate the aggregation of the data
from local areas to State and national levels and
to support the creation of new statistical series
from program records; and
‘‘(iii) paperwork and reporting require-
ments for employers and individuals will be re-
duced;
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‘‘(2) include a report on the results of an annual
consumer satisfaction review concerning the perform-
ance of the system, including the performance of the
system in addressing the needs of Congress, States, lo-
calities, employers, jobseekers, and other consumers;
‘‘(3) evaluate the performance of the system and
recommend needed improvements, taking into consid-
eration the results of the consumer satisfaction review,
with particular attention paid to the improvements
needed at the State and local levels;
‘‘(4) describe annual priorities, and priorities
over 5 years, for the system;
‘‘(5) describe current (as of the date of the sub-
mission of the plan) spending and spending needs to
carry out activities under this section, including the
costs to States and localities of meeting the require-
ments of subsection (e)(2); and
‘‘(6) describe the involvement of States in the de-
velopment of the plan, through formal consultations
conducted by the Secretary in cooperation with rep-
resentatives of the Governors of every State, and with
representatives of local partnerships, pursuant to a
process established by the Secretary in cooperation
with the States.
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‘‘(d) COORDINATION WITH THE STATES.—The Sec-
retary and the Bureau of Labor Statistics, in cooperation
with the States, shall—
‘‘(1) develop the annual plan described in sub-
section (c) by holding formal consultations, at least
once each quarter, on the products and administra-
tion of the nationwide labor market information sys-
tem; and
‘‘(2) hold the consultations with representatives
from each of the 10 Federal regions of the Employ-
ment and Training Administration, elected (pursuant
to a process established by the Secretary) by and from
the State labor market information directors affiliated
with the State agencies that perform the duties de-
scribed in subsection (e)(2).
‘‘(e) STATE RESPONSIBILITIES.—
‘‘(1) DESIGNATION OF STATE AGENCY.—In order
to receive Federal financial assistance under this sec-
tion, the Governor of a State—
‘‘(A)(i) except as provided in clause (ii),
shall designate a single State agency to be re-
sponsible for the management of the portions of
the system described in subsection (a) that com-
prise a statewide labor market information sys-
tem; and
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‘‘(ii) may assign the State occupa-
tional information coordinating committee
established under section 422 of the Carl D.
Perkins Vocational and Applied Technology
Education Act (as in effect on the day be-
fore the date of enactment of the Workforce
Investment Partnership Act of 1998), the re-
sponsibility to carry out the functions of the
system relating to labor market information
that such committee carried out on the day
prior to such date of enactment; and
‘‘(B) shall establish a process for the over-
sight of such system.
‘‘(2) DUTIES.—In order to receive Federal finan-
cial assistance under this section, the State agency
shall—
‘‘(A) consult with State and local employ-
ers, participants, and local partnerships about
the labor market relevance of the data to be col-
lected and disseminated through the statewide
labor market information system;
‘‘(B) consult with State educational agen-
cies and local educational agencies concerning
providing labor market information in order to
meet the needs of secondary school and post-
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secondary school students who seek such informa-
tion;
‘‘(C) collect and disseminate for the system,
on behalf of the State and localities in the State,
the information and data described in subpara-
graphs (A) and (B) of subsection (a)(1);
‘‘(D) maintain and continuously improve
the statewide labor market information system
in accordance with this section;
‘‘(E) perform contract and grant respon-
sibilities for data collection, analysis, and dis-
semination for such system;
‘‘(F) conduct such other data collection,
analysis, and dissemination activities as will en-
sure an effective statewide labor market informa-
tion system;
‘‘(G) actively seek the participation of other
State and local agencies in data collection, anal-
ysis, and dissemination activities in order to en-
sure complementarity, compatibility, and useful-
ness of data;
‘‘(H) participate in the development of the
annual plan described in subsection (c); and
‘‘(I) utilize the quarterly records described
in sections 321(f)(2) and 312 of the Workforce
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Investment Partnership Act of 1998 to assist the
State and other States in measuring State
progress on State performance measures.
‘‘(3) RULE OF CONSTRUCTION.—Nothing in this
section 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 section.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section such
sums as may be necessary for each of fiscal years 1999
through 2004.
‘‘(g) DEFINITIONS.—In this section, the terms ‘local
area’ and ‘local partnership’ have the meanings given the
terms in section 2 of the Workforce Investment Partnership
Act of 1998.’’.
SEC. 410. TECHNICAL AMENDMENTS.
Sections 3(b), 6(b)(1), and 7(d) of the Wagner-Peyser
Act (29 U.S.C. 49b(b), 49e(b)(1), and 49f(d)) are amended
by striking ‘‘Secretary of Labor’’ and inserting ‘‘Secretary’’.
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Subtitle B—Linkages With Other
Programs
SEC. 421. TRADE ACT OF 1974.
Section 241 of the Trade Act of 1974 (19 U.S.C. 2313)
is amended by adding at the end the following:
‘‘(d) To be eligible to receive funds under this section,
a State shall submit to the Secretary an application that
includes the description and information described in para-
graphs (9) and (17) of section 304(b) of the Workforce In-
vestment Partnership Act of 1998.’’.
SEC. 422. VETERANS’ EMPLOYMENT PROGRAMS.
Chapter 41 of title 38, United States Code, is amended
by adding at the end the following:
‘‘§ 4110B. Coordination and nonduplication
‘‘In carrying out this chapter, the Secretary shall re-
quire that an appropriate administrative entity in each
State enter into an agreement with the Secretary regarding
the implementation of this Act that includes the description
and information described in paragraphs (9) and (17) of
section 304(b) of the Workforce Investment Partnership Act
of 1998.’’.
SEC. 423. OLDER AMERICANS ACT OF 1965.
Section 502(b)(1) of the Older Americans Act of 1965
(42 U.S.C. 3056(b)(1)) is amended—
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(1) in subparagraph (O), by striking ‘‘; and’’
and inserting a semicolon;
(2) in subparagraph (P), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following subpara-
graph:
‘‘(Q) will provide to the Secretary the description
and information described in paragraphs (9) and
(17) of section 304(b) of the Workforce Investment
Partnership Act of 1998.’’.
Subtitle C—Twenty-First Century
Workforce Commission
SEC. 431. SHORT TITLE.
This subtitle may be cited as the ‘‘Twenty-First Cen-
tury Workforce Commission Act’’.
SEC. 432. FINDINGS.
Congress finds that—
(1) information technology is one of the fastest
growing areas in the United States economy;
(2) the United States is a world leader in the in-
formation technology industry;
(3) the continued growth and prosperity of the
information technology industry is important to the
continued prosperity of the United States economy;
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(4) highly skilled employees are essential for the
success of business entities in the information tech-
nology industry and other business entities that use
information technology;
(5) employees in information technology jobs are
highly paid;
(6) as of the date of enactment of this Act, these
employees are in high demand in all industries and
all regions of the United States; and
(7) through a concerted effort by business enti-
ties, the Federal Government, the governments of
States and political subdivisions of States, and edu-
cational institutions, more individuals will gain the
skills necessary to enter into a technology-based job
market, ensuring that the United States remains the
world leader in the information technology industry.
SEC. 433. DEFINITIONS.
In this subtitle:
(1) BUSINESS ENTITY.—The term ‘‘business en-
tity’’ means a firm, corporation, association, partner-
ship, consortium, joint venture, or other form of enter-
prise.
(2) 
COMMISSION.—The 
term 
‘‘Commission’’
means the Twenty-First Century Workforce Commis-
sion established under section 434.
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(3) INFORMATION TECHNOLOGY.—The term ‘‘in-
formation technology’’ has the meaning given that
term in section 5002 of the Information Technology
Management Reform Act of 1996 (110 Stat. 679).
(4) STATE.—The term ‘‘State’’ means each of the
several States of the United States and the District of
Columbia.
SEC. 434. ESTABLISHMENT OF TWENTY-FIRST CENTURY
WORKFORCE COMMISSION.
(a) ESTABLISHMENT.—There is established a commis-
sion to be known as the Twenty-First Century Workforce
Commission.
(b) MEMBERSHIP.—
(1) COMPOSITION.—
(A) IN GENERAL.—The Commission shall be
composed of 21 members, of which—
(i) 7 members shall be appointed by
the President;
(ii) 7 members shall be appointed by
the Majority Leader of the Senate; and
(iii) 7 members shall be appointed by
the Speaker of the House of Representatives.
(B) GOVERNMENTAL
REPRESENTATIVES.—
Of the members appointed under this sub-
section—
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(i) 1 member shall be an officer or em-
ployee of the Department of Labor, who
shall be appointed by the President;
(ii) 1 member shall be an officer or em-
ployee of the Department of Education, who
shall be appointed by the President; and
(iii) 2 members shall be representatives
of the governments of States and political
subdivisions of States, 1 of whom shall be
appointed by the Majority Leader of the
Senate and 1 of whom shall be appointed by
the Speaker of the House of Representatives.
(C) EDUCATORS.—Of the members ap-
pointed under this subsection, 6 shall be edu-
cators who are selected from among elementary,
secondary, vocational, and postsecondary edu-
cators—
(i) 2 of whom shall be appointed by the
President;
(ii) 2 of whom shall be appointed by
the Majority Leader of the Senate; and
(iii) 2 of whom shall be appointed by
the Speaker of the House of Representatives.
(D) BUSINESS REPRESENTATIVES.—
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(i) IN GENERAL.—Of the members ap-
pointed under this subsection, at least 4
shall be individuals who are employed by
non-information technology business enti-
ties.
(ii) SIZE.—Members appointed under
this subsection in accordance with clause (i)
shall, to the extent practicable, include indi-
viduals from business entities of a size that
is small or average for a non-information
technology business entity.
(2) DATE.—The appointments of the members of
the Commission shall be made by the later of—
(A) October 31, 1998; or
(B) the date that is 45 days after the date
of enactment of this Act.
(c) PERIOD OF APPOINTMENT; VACANCIES.—Members
shall be appointed for the life of the Commission. Any va-
cancy in the Commission shall not affect its powers, but
shall be filled in the same manner as the original appoint-
ment.
(d) INITIAL MEETING.—No later than 30 days after
the date on which all members of the Commission have been
appointed, the Commission shall hold its first meeting.
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(e) MEETINGS.—The Commission shall meet at the call
of the Chairperson.
(f) QUORUM.—A majority of the members of the Com-
mission shall constitute a quorum, but a lesser number of
members may hold hearings.
(g) CHAIRPERSON
AND VICE CHAIRPERSON.—The
Commission shall select a chairperson and vice chairperson
from among its members.
SEC. 435. DUTIES OF THE COMMISSION.
(a) STUDY.—
(1) IN GENERAL.—The Commission shall conduct
a thorough study of all matters relating to the infor-
mation technology workforce in the United States.
(2) MATTERS STUDIED.—The matters studied by
the Commission shall include an examination of—
(A) the skills necessary to enter the informa-
tion technology workforce;
(B) ways to expand the number of skilled
information technology workers; and
(C) the relative efficacy of programs in the
United States and foreign countries to train in-
formation technology workers, with special em-
phasis on programs that provide for secondary
education or postsecondary education in a pro-
gram other than a 4-year baccalaureate program
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(including associate degree programs and grad-
uate degree programs).
(3) PUBLIC HEARINGS.—As part of the study
conducted under this subsection, the Commission shall
hold public hearings in each region of the United
States concerning the issues referred to in subpara-
graphs (A) and (B) of paragraph (2).
(4) EXISTING
INFORMATION.—To the extent
practicable, in carrying out the study under this sub-
section, the Commission shall identify and use exist-
ing information related to the issues referred to in
subparagraphs (A) and (B) of paragraph (2).
(5) CONSULTATION
WITH
CHIEF
INFORMATION
OFFICERS COUNCIL.—In carrying out the study under
this subsection, the Commission shall consult with the
Chief Information Officers Council established under
Executive Order No. 13011.
(b) REPORT.—Not later than 6 months after the first
meeting of the Commission, the Commission shall submit
a report to the President and the Congress that shall con-
tain a detailed statement of the findings and conclusions
of the Commission resulting from the study, together with
its recommendations for such legislation and administra-
tive actions as the Commission considers to be appropriate.
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(c) FACILITATION OF EXCHANGE OF INFORMATION.—
In carrying out the study under subsection (a), the Commis-
sion shall, to the extent practicable, facilitate the exchange
of information concerning the issues that are the subject of
the study among—
(1) officials of the Federal Government and the
governments of States and political subdivisions of
States; and
(2) educators from Federal, State, and local in-
stitutions of higher education and secondary schools.
SEC. 436. POWERS OF THE COMMISSION.
(a) HEARINGS.—The Commission may hold such hear-
ings, sit and act at such times and places, take such testi-
mony, and receive such evidence as the Commission consid-
ers advisable to carry out the purposes of this subtitle.
(b) INFORMATION FROM FEDERAL AGENCIES.—The
Commission may secure directly from any Federal depart-
ment or agency such information as the Commission con-
siders necessary to carry out the provisions of this subtitle.
Upon request of the Chairperson of the Commission, the
head of such department or agency shall furnish such infor-
mation to the Commission.
(c) POSTAL SERVICES.—The Commission may use the
United States mails in the same manner and under the
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same conditions as other departments and agencies of the
Federal Government.
(d) GIFTS.—The Commission may accept, use, and
dispose of gifts or donations of services or property.
SEC. 437. COMMISSION PERSONNEL MATTERS.
(a) COMPENSATION OF MEMBERS.—Except as pro-
vided in subsection (b), each member of the Commission who
is not an officer or employee of the Federal Government
shall serve without compensation. All members of the Com-
mission who are officers or employees of the United States
shall serve without compensation in addition to that re-
ceived for their services as officers or employees of the
United States.
(b) TRAVEL EXPENSES.—The members of the Commis-
sion shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or regular places
of business in the performance of services for the Commis-
sion.
(c) STAFF.—
(1) IN GENERAL.—The Chairperson of the Com-
mission may, without regard to the civil service laws
and regulations, appoint and terminate an executive
director and such other additional personnel as may
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be necessary to enable the Commission to perform its
duties. The employment of an executive director shall
be subject to confirmation by the Commission.
(2) COMPENSATION.—The Chairperson of the
Commission may fix the compensation of the execu-
tive director and other personnel without regard to
the provisions of chapter 51 and subchapter III of
chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay
rates, except that the rate of pay for the executive di-
rector and other personnel may not exceed the rate
payable for level V of the Executive Schedule under
section 5316 of such title.
(d) DETAIL OF GOVERNMENT EMPLOYEES.—Any Fed-
eral Government employee may be detailed to the Commis-
sion without reimbursement, and such detail shall be with-
out interruption or loss of civil service status or privilege.
(e) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The Chairperson of the Commission may
procure temporary and intermittent services under section
3109(b) of title 5, United States Code, at rates for individ-
uals that do not exceed the daily equivalent of the annual
rate of basic pay prescribed for level V of the Executive
Schedule under section 5316 of such title.
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SEC. 438. TERMINATION OF THE COMMISSION.
The Commission shall terminate on the date that is
90 days after the date on which the Commission submits
its report under section 435(b).
SEC. 439. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated such sums as may be necessary for fiscal year 1999
to the Commission to carry out the purposes of this subtitle.
(b) AVAILABILITY.—Any sums appropriated under the
authorization contained in this section shall remain avail-
able, without fiscal year limitation, until expended.
TITLE V—GENERAL PROVISIONS
SEC. 501. STATE UNIFIED PLAN.
(a) DEFINITION OF APPROPRIATE SECRETARY.—In
this section, the term ‘‘appropriate Secretary’’ means the
head of the Federal agency who exercises administrative au-
thority over an activity or program described in subsection
(b).
(b) STATE UNIFIED PLAN.—
(1) IN GENERAL.—A State may develop and sub-
mit to the appropriate Secretaries a State unified
plan for 2 or more of the activities or programs set
forth in paragraph (2). The State unified plan shall
cover 1 or more of the activities set forth in subpara-
graphs (A) through (C) of paragraph (2) and may
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cover 1 or more of the activities set forth in subpara-
graphs (D) through (M) of paragraph (2).
(2) ACTIVITIES.—The activities and programs
referred to in paragraph (1) are as follows:
(A) Activities authorized under title I.
(B) Activities authorized under title II.
(C) Activities authorized under title III.
(D) Programs authorized under section 6(d)
of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)).
(E) Work programs authorized under sec-
tion 6(o) of the Food Stamp Act of 1977 (7
U.S.C. 2015(o)).
(F) Activities authorized under chapter 2 of
title II of the Trade Act of 1974 (19 U.S.C. 2271
et seq.).
(G) Programs authorized under the Wagner-
Peyser Act (29 U.S.C. 49 et seq.).
(H) Programs authorized under title I of
the Rehabilitation Act of 1973 (29 U.S.C. 720 et
seq.), other than section 112 of such Act (29
U.S.C. 732).
(I) Activities authorized under chapter 41
of title 38, United States Code.
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(J) Programs authorized under State unem-
ployment compensation laws (in accordance with
applicable Federal law).
(K) Programs authorized under part A of
title IV of the Social Security Act (42 U.S.C.
601 et seq.).
(L) Programs authorized under title V of
the Older Americans Act of 1965 (42 U.S.C.
3056 et seq.).
(M) Training activities carried out by the
Department of Housing and Urban Develop-
ment.
(c) REQUIREMENTS.—
(1) IN GENERAL.—The portion of a State unified
plan covering an activity or program described in
subsection (b) shall be subject to the requirements, if
any, applicable to a plan or application for assist-
ance under the Federal statute authorizing the activ-
ity or program.
(2) ADDITIONAL SUBMISSION NOT REQUIRED.—A
State that submits a State unified plan covering an
activity or program described in subsection (b) that
is approved under subsection (d) shall not be required
to submit any other plan or application in order to
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receive Federal funds to carry out the activity or pro-
gram.
(3) COORDINATION.—A State unified plan shall
include—
(A) a description of the methods used for
joint planning and coordination of the programs
and activities included in the unified plan; and
(B) an assurance that the methods included
an opportunity for the entities responsible for
planning or administering such programs and
activities to review and comment on all portions
of the unified plan.
(d) APPROVAL BY THE APPROPRIATE SECRETARIES.—
(1) JURISDICTION.—The appropriate Secretary
shall have the authority to approve the portion of the
State unified plan relating to the activity or program
over which the appropriate Secretary exercises ad-
ministrative authority. On the approval of the appro-
priate Secretary, the portion of the plan relating to
the activity or program shall be implemented by the
State pursuant to the applicable portion of the State
unified plan.
(2) APPROVAL.—
(A) IN GENERAL.—A portion of the State
unified plan covering an activity or program de-
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scribed in subsection (b) that is submitted to the
appropriate Secretary under this section shall be
considered to be approved by the appropriate
Secretary at the end of the 90-day period begin-
ning on the day the appropriate Secretary re-
ceives the portion, unless the appropriate Sec-
retary makes a written determination, during
the 90-day period, that the portion is not con-
sistent with the requirements of the Federal stat-
ute authorizing the activity or program includ-
ing the criteria for approval of a plan or appli-
cation, if any, under such statute or the plan is
not consistent with the requirements of sub-
section (c)(3).
(B) SPECIAL RULE.—In subparagraph (A),
the term ‘‘criteria for approval of a State plan’’,
relating to activities carried out under title I, II,
or III, includes a requirement for agreement be-
tween the State and the appropriate Secretary
regarding State performance measures, including
levels of performance.
SEC. 502. DEFINITIONS FOR CORE INDICATORS OF PER-
FORMANCE.
(a) IN GENERAL.—In order to ensure nationwide com-
parability of performance data, the Secretary of Labor and
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the Secretary of Education, after consultation with the rep-
resentatives described in subsection (b), shall issue defini-
tions for performance measures established under titles I
and II and definitions for core indicators of performance
for performance measures established under title III.
(b) REPRESENTATIVES.—The representatives referred
to in subsection (a) are representatives of States and politi-
cal subdivisions, business and industry, employees, eligible
providers of employment and training activities (as defined
in section 2(13)(B)), educators, participants in activities
carried out under this Act, State Directors of vocational
education, State Directors of adult education, providers of
vocational education, providers of adult education, provid-
ers of literacy services, individuals with expertise in serving
the employment and training needs of disadvantaged youth
(as defined in section 302(b)(3)(C)), parents, and other in-
terested parties, with expertise regarding activities author-
ized under this Act.
SEC. 503. TRANSITION PROVISIONS.
The Secretary of Education or the Secretary of Labor,
as appropriate, shall take such steps as such Secretary de-
termines to be appropriate to provide for the orderly transi-
tion to the authority of this Act from any authority under
provisions of law to be repealed under subtitle E of title
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I, subtitle B of title II, or subtitle E of title III, or any
related authority.
SEC. 504. PRIVACY.
Nothing in this Act shall be construed to supersede the
privacy protections afforded parents and students under
section 444 of the General Education Provisions Act (20
U.S.C. 1232g), as added by the Family Educational Rights
and Privacy Act of 1974 (section 513 of Public Law 93–
380; 88 Stat. 571).
SEC. 505. LIMITATION.
None of the funds made available under this Act may
be used to carry out activities authorized under the School-
to-Work Opportunities Act of 1994 (20 U.S.C. 6101 et seq.).
SEC. 506. EFFECTIVE DATE.
(a) IN GENERAL.—Except as otherwise provided in
this Act, this Act takes effect on July 1, 1999.
(b) EARLY IMPLEMENTATION.—At the option of a
State, the Governor of the State and the chief official of
the eligible agencies in the State may use funds made avail-
able under a provision of law described in section 503, or
any related authority to implement this Act at any time
prior to July 1, 1999.
(c) EARLY IMPLEMENTATION AND TRANSITION PROVI-
SIONS.—Section 503 and this section take effect on the date
of enactment of this Act.
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(d) TWENTY-FIRST CENTURY WORKFORCE COMMIS-
SION.—Subtitle C of title IV takes effect on the date of en-
actment of this Act.
TITLE VI—REHABILITATION ACT
AMENDMENTS OF 1998
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘Rehabilitation Act
Amendments of 1998’’.
SEC. 602. TITLE.
The title of the Rehabilitation Act of 1973 is amended
by striking ‘‘to establish special responsibilities’’ and all
that follows and inserting the following: ‘‘to create linkage
between State vocational rehabilitation programs and work-
force investment activities carried out under the Workforce
Investment Partnership Act of 1998, to establish special re-
sponsibilities for the Secretary of Education for coordina-
tion of all activities with respect to individuals with dis-
abilities within and across programs administered by the
Federal Government, and for other purposes.’’.
SEC. 603. GENERAL PROVISIONS.
The Rehabilitation Act of 1973 is amended by striking
the matter preceding title I and inserting the following:
‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
‘‘(a) SHORT TITLE.—This Act may be cited as the ‘Re-
habilitation Act of 1973’.
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‘‘(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
‘‘Sec. 1. Short title; table of contents.
‘‘Sec. 2. Findings; purpose; policy.
‘‘Sec. 3. Rehabilitation Services Administration.
‘‘Sec. 4. Advance funding.
‘‘Sec. 5. Joint funding.
‘‘Sec. 7. Definitions.
‘‘Sec. 8. Allotment percentage.
‘‘Sec. 10. Nonduplication.
‘‘Sec. 11. Application of other laws.
‘‘Sec. 12. Administration of the Act.
‘‘Sec. 13. Reports.
‘‘Sec. 14. Evaluation.
‘‘Sec. 15. Information clearinghouse.
‘‘Sec. 16. Transfer of funds.
‘‘Sec. 17. State administration.
‘‘Sec. 18. Review of applications.
‘‘Sec. 19. Carryover.
‘‘Sec. 20. Client assistance information.
‘‘Sec. 21. Traditionally underserved populations.
‘‘TITLE I—VOCATIONAL REHABILITATION SERVICES
‘‘PART A—GENERAL PROVISIONS
‘‘Sec. 100. Declaration of policy; authorization of appropriations.
‘‘Sec. 101. State plans.
‘‘Sec. 102. Eligibility and individualized rehabilitation employment plan.
‘‘Sec. 103. Vocational rehabilitation services.
‘‘Sec. 104. Non-Federal share for establishment of program.
‘‘Sec. 105. State Rehabilitation Council.
‘‘Sec. 106. Evaluation standards and performance indicators.
‘‘Sec. 107. Monitoring and review.
‘‘Sec. 108. Expenditure of certain amounts.
‘‘Sec. 109. Training of employers with respect to Americans with Disabilities Act
of 1990.
‘‘PART B—BASIC VOCATIONAL REHABILITATION SERVICES
‘‘Sec. 110. State allotments.
‘‘Sec. 111. Payments to States.
‘‘Sec. 112. Client assistance program.
‘‘PART C—AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES
‘‘Sec. 121. Vocational rehabilitation services grants.
‘‘PART D—VOCATIONAL REHABILITATION SERVICES CLIENT INFORMATION
‘‘Sec. 131. Data sharing.
‘‘TITLE II—RESEARCH AND TRAINING
‘‘Sec. 200. Declaration of purpose.
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‘‘Sec. 201. Authorization of appropriations.
‘‘Sec. 202. National Institute on Disability and Rehabilitation Research.
‘‘Sec. 203. Interagency Committee.
‘‘Sec. 204. Research and other covered activities.
‘‘Sec. 205. Rehabilitation Research Advisory Council.
‘‘TITLE III—PROFESSIONAL DEVELOPMENT AND SPECIAL
PROJECTS AND DEMONSTRATIONS
‘‘Sec. 301. Declaration of purpose and competitive basis of grants and contracts.
‘‘Sec. 302. Training.
‘‘Sec. 303. Special demonstration program.
‘‘Sec. 304. Migrant and seasonal farmworkers.
‘‘Sec. 305. Recreational programs.
‘‘Sec. 306. Measuring of project outcomes and performance.
‘‘TITLE IV—NATIONAL COUNCIL ON DISABILITY
‘‘Sec. 400. Establishment of National Council on Disability.
‘‘Sec. 401. Duties of National Council.
‘‘Sec. 402. Compensation of National Council members.
‘‘Sec. 403. Staff of National Council.
‘‘Sec. 404. Administrative powers of National Council.
‘‘Sec. 405. Authorization of Appropriations.
‘‘TITLE V—RIGHTS AND ADVOCACY
‘‘Sec. 501. Employment of individuals with disabilities.
‘‘Sec. 502. Architectural and Transportation Barriers Compliance Board.
‘‘Sec. 503. Employment under Federal contracts.
‘‘Sec. 504. Nondiscrimination under Federal grants and programs.
‘‘Sec. 505. Remedies and attorneys’ fees.
‘‘Sec. 506. Secretarial responsibilities.
‘‘Sec. 507. Interagency Disability Coordinating Council.
‘‘Sec. 508. Electronic and information technology regulations.
‘‘Sec. 509. Protection and advocacy of individual rights.
‘‘TITLE VI—EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH
DISABILITIES
‘‘Sec. 601. Short title.
‘‘PART A—PROJECTS IN TELECOMMUTING AND SELF-EMPLOYMENT FOR
INDIVIDUALS WITH DISABILITIES
‘‘Sec. 611. Findings, policies, and purposes.
‘‘Sec. 612. Projects in telecommuting for individuals with disabilities.
‘‘Sec. 613. Projects in self-employment for individuals with disabilities.
‘‘Sec. 614. Discretionary authority for dual-purpose applications.
‘‘Sec. 615. Authorization of appropriations.
‘‘PART B—PROJECTS WITH INDUSTRY
‘‘Sec. 621. Projects with industry.
‘‘Sec. 622. Authorization of appropriations.
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‘‘PART C—SUPPORTED EMPLOYMENT SERVICES FOR INDIVIDUALS WITH THE
MOST SIGNIFICANT DISABILITIES
‘‘Sec. 631. Purpose.
‘‘Sec. 632. Allotments.
‘‘Sec. 633. Availability of services.
‘‘Sec. 634. Eligibility.
‘‘Sec. 635. State plan.
‘‘Sec. 636. Restriction.
‘‘Sec. 637. Savings provision.
‘‘Sec. 638. Authorization of appropriations.
‘‘TITLE VII—INDEPENDENT LIVING SERVICES AND CENTERS FOR
INDEPENDENT LIVING
‘‘CHAPTER 1—INDIVIDUALS WITH SIGNIFICANT DISABILITIES
‘‘PART A—GENERAL PROVISIONS
‘‘Sec. 701. Purpose.
‘‘Sec. 702. Definitions.
‘‘Sec. 703. Eligibility for receipt of services.
‘‘Sec. 704. State plan.
‘‘Sec. 705. Statewide Independent Living Council.
‘‘Sec. 706. Responsibilities of the Commissioner.
‘‘PART B—INDEPENDENT LIVING SERVICES
‘‘Sec. 711. Allotments.
‘‘Sec. 712. Payments to States from allotments.
‘‘Sec. 713. Authorized uses of funds.
‘‘Sec. 714. Authorization of appropriations.
‘‘PART C—CENTERS FOR INDEPENDENT LIVING
‘‘Sec. 721. Program authorization.
‘‘Sec. 722. Grants to centers for independent living in States in which Federal
funding exceeds State funding.
‘‘Sec. 723. Grants to centers for independent living in States in which State
funding equals or exceeds Federal funding.
‘‘Sec. 724. Centers operated by State agencies.
‘‘Sec. 725. Standards and assurances for centers for independent living.
‘‘Sec. 726. Definitions.
‘‘Sec. 727. Authorization of appropriations.
‘‘CHAPTER 2—INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO
ARE BLIND
‘‘Sec. 751. Definition.
‘‘Sec. 752. Program of grants.
‘‘Sec. 753. Authorization of appropriations.
‘‘FINDINGS; PURPOSE; POLICY
‘‘SEC. 2. (a) FINDINGS.—Congress finds that—
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‘‘(1) millions of Americans have one or more
physical or mental disabilities and the number of
Americans with such disabilities is increasing;
‘‘(2) individuals with disabilities constitute one
of the most disadvantaged groups in society;
‘‘(3) disability is a natural part of the human
experience and in no way diminishes the right of in-
dividuals to—
‘‘(A) live independently;
‘‘(B) enjoy self-determination;
‘‘(C) make choices;
‘‘(D) contribute to society;
‘‘(E) pursue meaningful careers; and
‘‘(F) enjoy full inclusion and integration in
the economic, political, social, cultural, and edu-
cational mainstream of American society;
‘‘(4) increased employment of individuals with
disabilities can be achieved through implementation
of statewide activities carried out under the Workforce
Investment Partnership Act of 1998 that provide
meaningful and effective participation for individuals
with disabilities in workforce investment activities
and activities carried out under the vocational reha-
bilitation program established under title I, and
through the provision of independent living services,
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support services, and meaningful opportunities for
employment in integrated work settings through the
provision of reasonable accommodations;
‘‘(5) individuals with disabilities continually en-
counter various forms of discrimination in such criti-
cal areas as employment, housing, public accommoda-
tions, 
education, 
transportation, 
communication,
recreation, institutionalization, health services, vot-
ing, and public services; and
‘‘(6) the goals of the Nation properly include the
goal of providing individuals with disabilities with
the tools necessary to—
‘‘(A) make informed choices and decisions;
and
‘‘(B) achieve equality of opportunity, full
inclusion and integration in society, employ-
ment, independent living, and economic and so-
cial self-sufficiency, for such individuals.
‘‘(b) PURPOSE.—The purposes of this Act are—
‘‘(1) to empower individuals with disabilities to
maximize employment, economic self-sufficiency, inde-
pendence, and inclusion and integration into society,
through—
‘‘(A) statewide activities carried out in ac-
cordance with the Workforce Investment Partner-
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ship Act of 1998 that include, as integral compo-
nents, comprehensive and coordinated state-of-
the-art programs of vocational rehabilitation;
‘‘(B) independent living centers and serv-
ices;
‘‘(C) research;
‘‘(D) training;
‘‘(E) demonstration projects; and
‘‘(F) the guarantee of equal opportunity;
and
‘‘(2) to ensure that the Federal Government
plays a leadership role in promoting the employment
of individuals with disabilities, especially individuals
with significant disabilities, and in assisting States
and providers of services in fulfilling the aspirations
of such individuals with disabilities for meaningful
and gainful employment and independent living.
‘‘(c) POLICY.—It is the policy of the United States that
all programs, projects, and activities receiving assistance
under this Act shall be carried out in a manner consistent
with the principles of—
‘‘(1) respect for individual dignity, personal re-
sponsibility, self-determination, and pursuit of mean-
ingful careers, based on informed choice, of individ-
uals with disabilities;
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‘‘(2) respect for the privacy, rights, and equal ac-
cess (including the use of accessible formats), of the
individuals;
‘‘(3) inclusion, integration, and full participa-
tion of the individuals;
‘‘(4) support for the involvement of an individ-
ual’s representative if an individual with a disability
requests, desires, or needs such support; and
‘‘(5) support for individual and systemic advo-
cacy and community involvement.
‘‘REHABILITATION SERVICES ADMINISTRATION
‘‘SEC. 3. (a) There is established in the Office of the
Secretary a Rehabilitation Services Administration which
shall be headed by a Commissioner (hereinafter in this Act
referred to as the ‘Commissioner’) appointed by the Presi-
dent by and with the advice and consent of the Senate. Ex-
cept for titles IV and V and part A of title VI and as other-
wise specifically provided in this Act, such Administration
shall be the principal agency, and the Commissioner shall
be the principal officer, of such Department for carrying
out this Act. The Commissioner shall be an individual with
substantial experience in rehabilitation and in rehabilita-
tion program management. In the performance of the func-
tions of the office, the Commissioner shall be directly re-
sponsible to the Secretary or to the Under Secretary or an
appropriate Assistant Secretary of such Department, as
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designated by the Secretary. The functions of the Commis-
sioner shall not be delegated to any officer not directly re-
sponsible, both with respect to program operation and ad-
ministration, to the Commissioner. Any reference in this
Act to duties to be carried out by the Commissioner shall
be considered to be a reference to duties to be carried out
by the Secretary acting through the Commissioner. In car-
rying out any of the functions of the office under this Act,
the Commissioner shall be guided by general policies of the
National Council on Disability established under title IV
of this Act.
‘‘(b) The Secretary shall take whatever action is nec-
essary to ensure that funds appropriated pursuant to this
Act, as well as unexpended appropriations for carrying out
the Vocational Rehabilitation Act (29 U.S.C. 31–42), are
expended only for the programs, personnel, and administra-
tion of programs carried out under this Act.
‘‘(c) The Secretary shall take such action as necessary
to ensure that—
‘‘(1) the staffing of the Rehabilitation Services
Administration shall be in sufficient numbers to meet
program needs and at levels which will attract and
maintain the most qualified personnel; and
‘‘(2) such staff includes individuals who have
training and experience in the provision of rehabilita-
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tion services and that staff competencies meet profes-
sional standards.
‘‘ADVANCE FUNDING
‘‘SEC. 4. (a) For the purpose of affording adequate no-
tice of funding available under this Act, appropriations
under this Act are authorized to be included in the appro-
priation Act for the fiscal year preceding the fiscal year
for which they are available for obligation.
‘‘(b) In order to effect a transition to the advance fund-
ing method of timing appropriation action, the authority
provided by subsection (a) of this section shall apply not-
withstanding that its initial application will result in the
enactment in the same year (whether in the same appro-
priation Act or otherwise) of two separate appropriations,
one for the then current fiscal year and one for the succeed-
ing fiscal year.
‘‘JOINT FUNDING
‘‘SEC. 5. Pursuant to regulations prescribed by the
President, and to the extent consistent with the other provi-
sions of this Act, where funds are provided for a single
project by more than one Federal agency to an agency or
organization assisted under this Act, the Federal agency
principally involved may be designated to act for all in ad-
ministering the funds provided, and, in such cases, a single
non-Federal share requirement may be established accord-
ing to the proportion of funds advanced by each agency.
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When the principal agency involved is the Rehabilitation
Services Administration, it may waive any grant or con-
tract requirement (as defined by such regulations) under
or pursuant to any law other than this Act, which require-
ment is inconsistent with the similar requirements of the
administering agency under or pursuant to this Act.
‘‘SEC. 7. DEFINITIONS.
‘‘For the purposes of this Act:
‘‘(1) ADMINISTRATIVE COSTS.—The term ‘admin-
istrative costs’ means expenditures incurred by the
designated State unit in the performance of adminis-
trative functions under the vocational rehabilitation
program carried out under title I, including expenses
related to program planning, development, monitor-
ing, and evaluation, including—
‘‘(A) expenses for—
‘‘(i) quality assurance;
‘‘(ii) budgeting, accounting, financial
management, information systems, and re-
lated data processing;
‘‘(iii) provision of information about
the program to the public;
‘‘(iv) technical assistance and related
support services to other State agencies, pri-
vate nonprofit organizations, and businesses
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and industries, except for technical assist-
ance and support services described in sec-
tion 103(b)(5);
‘‘(v) the State Rehabilitation Council
and other entities that advise the designated
State unit with regard to the provision of
vocational rehabilitation services;
‘‘(vi) removal of architectural barriers
in State vocational rehabilitation agency of-
fices and State operated rehabilitation fa-
cilities;
‘‘(vii) operation and maintenance of
designated State unit facilities, equipment,
and grounds;
‘‘(viii) supplies; and
‘‘(ix)(I) administration of the com-
prehensive system of personnel development
described in section 101(a)(7), including
personnel administration, and administra-
tion of affirmative action plans;
‘‘(II) training and staff development;
and
‘‘(III) administrative salaries, includ-
ing clerical and other support staff salaries,
in support of the administrative functions;
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‘‘(B) travel costs related to carrying out the
program, other than travel costs related to the
provision of services;
‘‘(C) costs incurred in conducting reviews of
rehabilitation counselor or coordinator deter-
minations; and
‘‘(D) legal expenses required in the adminis-
tration of the program.
‘‘(2) ASSESSMENT
FOR
DETERMINING
ELIGI-
BILITY AND VOCATIONAL REHABILITATION NEEDS.—
The term ‘assessment for determining eligibility and
vocational rehabilitation needs’ means, as appro-
priate in each case—
‘‘(A)(i) a review of existing data—
‘‘(I) to determine whether an individ-
ual is eligible for vocational rehabilitation
services; and
‘‘(II) to assign priority for an order of
selection described in section 101(a)(5)(A)
in the States that use an order of selection
pursuant to section 101(a)(5)(A); and
‘‘(ii) to the extent necessary, the provision
of appropriate assessment activities to obtain
necessary additional data to make such deter-
mination and assignment;
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‘‘(B) to the extent additional data is nec-
essary to make a determination of the employ-
ment outcomes, and the objectives, nature, and
scope of vocational rehabilitation services, to be
included in the individualized rehabilitation em-
ployment plan of an eligible individual, a com-
prehensive assessment to determine the unique
strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice, in-
cluding the need for supported employment, of
the eligible individual, which comprehensive as-
sessment—
‘‘(i) is limited to information that is
necessary to identify the rehabilitation
needs of the individual and to develop the
individualized rehabilitation employment
plan of the eligible individual;
‘‘(ii) uses, as a primary source of such
information, to the maximum extent pos-
sible and appropriate and in accordance
with confidentiality requirements—
‘‘(I) existing information obtained
for the purposes of determining the eli-
gibility of the individual and assign-
ing priority for an order of selection
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described in section 101(a)(5)(A) for
the individual; and
‘‘(II) such information as can be
provided by the individual and, where
appropriate, by the family of the indi-
vidual;
‘‘(iii) may include, to the degree need-
ed to make such a determination, an assess-
ment of the personality, interests, inter-
personal skills, intelligence and related
functional capacities, educational achieve-
ments, work experience, vocational apti-
tudes, personal and social adjustments, and
employment opportunities of the individual,
and the medical, psychiatric, psychological,
and other pertinent vocational, educational,
cultural, social, recreational, and environ-
mental factors, that affect the employment
and rehabilitation needs of the individual;
and
‘‘(iv) may include, to the degree need-
ed, an appraisal of the patterns of work be-
havior of the individual and services needed
for the individual to acquire occupational
skills, and to develop work attitudes, work
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habits, work tolerance, and social and be-
havior patterns necessary for successful job
performance, including the utilization of
work in real job situations to assess and de-
velop the capacities of the individual to per-
form adequately in a work environment;
‘‘(C) referral, for the provision of rehabilita-
tion technology services to the individual, to as-
sess and develop the capacities of the individual
to perform in a work environment; and
‘‘(D) an exploration of the individual’s
abilities, capabilities, and capacity to perform in
work situations, through the use of trial work ex-
periences, including experiences in which the in-
dividual is provided appropriate supports and
training.
‘‘(3) ASSISTIVE TECHNOLOGY DEVICE.—The term
‘assistive technology device’ has the meaning given
such term in section 3(2) of the Technology-Related
Assistance for Individuals With Disabilities Act of
1988 (29 U.S.C. 2202(2)), except that the reference in
such section to the term ‘individuals with disabilities’
shall be deemed to mean more than one individual
with a disability as defined in paragraph (20)(A).
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‘‘(4) ASSISTIVE
TECHNOLOGY
SERVICE.—The
term ‘assistive technology service’ has the meaning
given such term in section 3(3) of the Technology-Re-
lated Assistance for Individuals With Disabilities Act
of 1988 (29 U.S.C. 2202(3)), except that the reference
in such section—
‘‘(A) to the term ‘individual with a disabil-
ity’ shall be deemed to mean an individual with
a disability, as defined in paragraph (20)(A);
and
‘‘(B) to the term ‘individuals with disabil-
ities’ shall be deemed to mean more than one
such individual.
‘‘(5) COMMUNITY REHABILITATION PROGRAM.—
The term ‘community rehabilitation program’ means
a program that provides directly or facilitates the
provision of vocational rehabilitation services to indi-
viduals with disabilities, and that provides, singly or
in combination, for an individual with a disability
to enable the individual to maximize opportunities
for employment, including career advancement—
‘‘(A) medical, psychiatric, psychological, so-
cial, and vocational services that are provided
under one management;
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‘‘(B) testing, fitting, or training in the use
of prosthetic and orthotic devices;
‘‘(C) recreational therapy;
‘‘(D) physical and occupational therapy;
‘‘(E) speech, language, and hearing therapy;
‘‘(F) psychiatric, psychological, and social
services, including positive behavior manage-
ment;
‘‘(G) assessment for determining eligibility
and vocational rehabilitation needs;
‘‘(H) rehabilitation technology;
‘‘(I) job development, placement, and reten-
tion services;
‘‘(J) evaluation or control of specific dis-
abilities;
‘‘(K) orientation and mobility services for
individuals who are blind;
‘‘(L) extended employment;
‘‘(M) psychosocial rehabilitation services;
‘‘(N) supported employment services and ex-
tended services;
‘‘(O) services to family members when nec-
essary to the vocational rehabilitation of the in-
dividual;
‘‘(P) personal assistance services; or
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‘‘(Q) services similar to the services de-
scribed in one of subparagraphs (A) through (P).
‘‘(6) CRIMINAL
ACT.—The term ‘criminal act’
means any crime, including an act, omission, or pos-
session under the laws of the United States or a State
or unit of general local government, which poses a
substantial threat of personal injury, notwithstanding
that by reason of age, insanity, or intoxication or oth-
erwise the person engaging in the act, omission, or
possession was legally incapable of committing a
crime.
‘‘(7) DESIGNATED
STATE
AGENCY.—The term
‘designated State agency’ means an agency designated
under section 101(a)(2)(A).
‘‘(8) DESIGNATED STATE UNIT.—The term ‘des-
ignated State unit’ means—
‘‘(A) any State agency unit required under
section 101(a)(2)(B)(ii); or
‘‘(B) in cases in which no such unit is so
required, the State agency described in section
101(a)(2)(B)(i).
‘‘(9) DISABILITY.—The term ‘disability’ means—
‘‘(A) except as otherwise provided in sub-
paragraph (B), a physical or mental impair-
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ment that constitutes or results in a substantial
impediment to employment; or
‘‘(B) for purposes of sections 2, 14, and 15,
and titles II, IV, V, and VII, a physical or men-
tal impairment that substantially limits one or
more major life activities.
‘‘(10) DRUG AND ILLEGAL USE OF DRUGS.—
‘‘(A) DRUG.—The term ‘drug’ means a con-
trolled substance, as defined in schedules I
through V of section 202 of the Controlled Sub-
stances Act (21 U.S.C. 812).
‘‘(B) ILLEGAL USE OF DRUGS.—The term
‘illegal use of drugs’ means the use of drugs, the
possession or distribution of which is unlawful
under the Controlled Substances Act. Such term
does not include the use of a drug taken under
supervision by a licensed health care profes-
sional, or other uses authorized by the Controlled
Substances Act or other provisions of Federal
law.
‘‘(11) EMPLOYMENT OUTCOME.—The term ‘em-
ployment outcome’ means, with respect to an individ-
ual—
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‘‘(A) entering or retaining full-time or, if
appropriate, part-time competitive employment
in the integrated labor market;
‘‘(B) satisfying the vocational outcome of
supported employment; or
‘‘(C) satisfying any other vocational out-
come the Secretary may determine to be appro-
priate (including satisfying the vocational out-
come of self-employment or business ownership),
in a manner consistent with this Act.
‘‘(12) ESTABLISHMENT OF A COMMUNITY REHA-
BILITATION PROGRAM.—The term ‘establishment of a
community rehabilitation program’ includes the ac-
quisition, expansion, remodeling, or alteration of ex-
isting buildings necessary to adapt them to commu-
nity rehabilitation program purposes or to increase
their effectiveness for such purposes (subject, however,
to such limitations as the Secretary may determine,
in accordance with regulations the Secretary shall
prescribe, in order to prevent impairment of the objec-
tives of, or duplication of, other Federal laws provid-
ing Federal assistance in the construction of facilities
for community rehabilitation programs), and may in-
clude such additional equipment and staffing as the
Commissioner considers appropriate.
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‘‘(13) EXTENDED SERVICES.—The term ‘extended
services’ means ongoing support services and other
appropriate services, needed to support and maintain
an individual with a most significant disability in
supported employment, that—
‘‘(A) are provided singly or in combination
and are organized and made available in such a
way as to assist an eligible individual in main-
taining supported employment;
‘‘(B) are based on a determination of the
needs of an eligible individual, as specified in an
individualized rehabilitation employment plan;
and
‘‘(C) are provided by a State agency, a non-
profit private organization, employer, or any
other appropriate resource, after an individual
has made the transition from support provided
by the designated State unit.
‘‘(14) FEDERAL SHARE.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the term ‘Federal share’ means 78.7
percent.
‘‘(B) RELATIONSHIP TO EXPENDITURES BY
A POLITICAL SUBDIVISION.—For the purpose of
determining the non-Federal share with respect
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to a State, expenditures by a political subdivi-
sion thereof or by a local agency shall be re-
garded as expenditures by such State, subject to
such limitations and conditions as the Secretary
shall by regulation prescribe.
‘‘(15) 
GOVERNOR.—The 
term 
‘Governor’
means—
‘‘(A) a chief executive officer of a State; or
‘‘(B) in the case of a State that, under State
law, vests authority for the administration of the
activities carried out under this Act in an entity
other than the Governor, such as 1 or more
houses of the State legislature or an independent
board, the chief officer of that entity.
‘‘(16) IMPARTIAL HEARING OFFICER.—
‘‘(A) IN
GENERAL.—The term ‘impartial
hearing officer’ means an individual—
‘‘(i) who is not an employee of a public
agency (other than an administrative law
judge, hearing examiner, or employee of an
institution of higher education);
‘‘(ii) who is not a member of the State
Rehabilitation Council described in section
105;
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‘‘(iii) who has not been involved pre-
viously in the vocational rehabilitation of
the applicant or client;
‘‘(iv) who has knowledge of the delivery
of vocational rehabilitation services, the
State plan under section 101, and the Fed-
eral and State rules governing the provision
of such services and training with respect to
the performance of official duties; and
‘‘(v) who has no personal or financial
interest that would be in conflict with the
objectivity of the individual.
‘‘(B) CONSTRUCTION.—An individual shall
not be considered to be an employee of a public
agency for purposes of subparagraph (A)(i) sole-
ly because the individual is paid by the agency
to serve as a hearing officer.
‘‘(17) INDEPENDENT LIVING CORE SERVICES.—
The term ‘independent living core services’ means—
‘‘(A) information and referral services;
‘‘(B) independent living skills training;
‘‘(C) peer counseling (including cross-dis-
ability peer counseling); and
‘‘(D) individual and systems advocacy.
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‘‘(18) INDEPENDENT
LIVING
SERVICES.—The
term ‘independent living services’ includes—
‘‘(A) independent living core services; and
‘‘(B)(i) counseling services, including psy-
chological, psychotherapeutic, and related serv-
ices;
‘‘(ii) services related to securing housing or
shelter, including services related to community
group living, and supportive of the purposes of
this Act and of the titles of this Act, and adapt-
ive housing services (including appropriate ac-
commodations to and modifications of any space
used to serve, or occupied by, individuals with
disabilities);
‘‘(iii) rehabilitation technology;
‘‘(iv) mobility training;
‘‘(v) services and training for individuals
with cognitive and sensory disabilities, including
life skills training, and interpreter and reader
services;
‘‘(vi) personal assistance services, including
attendant care and the training of personnel
providing such services;
‘‘(vii) surveys, directories, and other activi-
ties to identify appropriate housing, recreation
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opportunities, and accessible transportation, and
other support services;
‘‘(viii) consumer information programs on
rehabilitation and independent living services
available under this Act, especially for minori-
ties and other individuals with disabilities who
have traditionally been unserved or underserved
by programs under this Act;
‘‘(ix) education and training necessary for
living in a community and participating in
community activities;
‘‘(x) supported living;
‘‘(xi) transportation, including referral and
assistance for such transportation and training
in the use of public transportation vehicles and
systems;
‘‘(xii) physical rehabilitation;
‘‘(xiii) therapeutic treatment;
‘‘(xiv) provision of needed prostheses and
other appliances and devices;
‘‘(xv) individual and group social and rec-
reational services;
‘‘(xvi) training to develop skills specifically
designed for youths who are individuals with
disabilities to promote self-awareness and esteem,
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develop advocacy and self-empowerment skills,
and explore career options;
‘‘(xvii) services for children;
‘‘(xviii) services under other Federal, State,
or local programs designed to provide resources,
training, counseling, or other assistance, of sub-
stantial benefit in enhancing the independence,
productivity, and quality of life of individuals
with disabilities;
‘‘(xix) appropriate preventive services to de-
crease the need of individuals assisted under this
Act for similar services in the future;
‘‘(xx) community awareness programs to
enhance the understanding and integration into
society of individuals with disabilities; and
‘‘(xxi) such other services as may be nec-
essary and not inconsistent with the provisions
of this Act.
‘‘(19) INDIAN; AMERICAN INDIAN; INDIAN AMER-
ICAN; INDIAN TRIBE.—
‘‘(A) IN
GENERAL.—The terms ‘Indian’,
‘American Indian’, and ‘Indian American’ mean
an individual who is a member of an Indian
tribe.
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‘‘(B) INDIAN
TRIBE.—The term ‘Indian
tribe’ means any Federal or State Indian tribe,
band, rancheria, pueblo, colony, or community,
including any Alaskan native village or regional
village corporation (as defined in or established
pursuant to the Alaska Native Claims Settlement
Act).
‘‘(20) INDIVIDUAL WITH A DISABILITY.—
‘‘(A) IN
GENERAL.—Except as otherwise
provided in subparagraph (B), the term ‘individ-
ual with a disability’ means any individual
who—
‘‘(i) has a physical or mental impair-
ment which for such individual constitutes
or results in a substantial impediment to
employment; and
‘‘(ii) can benefit in terms of an em-
ployment outcome from vocational rehabili-
tation services provided pursuant to title I,
III, or VI.
‘‘(B) CERTAIN PROGRAMS; LIMITATIONS ON
MAJOR
LIFE
ACTIVITIES.—Subject to subpara-
graphs (C), (D), (E), and (F), the term ‘individ-
ual with a disability’ means, for purposes of sec-
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tions 2, 14, and 15, and titles II, IV, V, and VII
of this Act, any person who—
‘‘(i) has a physical or mental impair-
ment which substantially limits one or more
of such person’s major life activities;
‘‘(ii) has a record of such an impair-
ment; or
‘‘(iii) is regarded as having such an
impairment.
‘‘(C) RIGHTS AND ADVOCACY PROVISIONS.—
‘‘(i) IN GENERAL; EXCLUSION OF INDI-
VIDUALS
ENGAGING
IN
DRUG
USE.—For
purposes of title V, the term ‘individual
with a disability’ does not include an indi-
vidual who is currently engaging in the ille-
gal use of drugs, when a covered entity acts
on the basis of such use.
‘‘(ii) EXCEPTION FOR INDIVIDUALS NO
LONGER ENGAGING IN DRUG USE.—Nothing
in clause (i) shall be construed to exclude as
an individual with a disability an individ-
ual who—
‘‘(I) has successfully completed a
supervised drug rehabilitation program
and is no longer engaging in the illegal
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use of drugs, or has otherwise been re-
habilitated successfully and is no
longer engaging in such use;
‘‘(II) is participating in a super-
vised rehabilitation program and is no
longer engaging in such use; or
‘‘(III) is erroneously regarded as
engaging in such use, but is not engag-
ing in such use;
except that it shall not be a violation of this
Act for a covered entity to adopt or admin-
ister reasonable policies or procedures, in-
cluding but not limited to drug testing, de-
signed to ensure that an individual de-
scribed in subclause (I) or (II) is no longer
engaging in the illegal use of drugs.
‘‘(iii) EXCLUSION FOR CERTAIN SERV-
ICES.—Notwithstanding clause (i), for pur-
poses of programs and activities providing
health services and services provided under
titles I, II, and III, an individual shall not
be excluded from the benefits of such pro-
grams or activities on the basis of his or her
current illegal use of drugs if he or she is
otherwise entitled to such services.
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‘‘(iv) DISCIPLINARY ACTION.—For pur-
poses of programs and activities providing
educational services, local educational agen-
cies may take disciplinary action pertain-
ing to the use or possession of illegal drugs
or alcohol against any student who is an
individual with a disability and who cur-
rently is engaging in the illegal use of drugs
or in the use of alcohol to the same extent
that such disciplinary action is taken
against students who are not individuals
with disabilities. Furthermore, the due proc-
ess procedures at section 104.36 of title 34,
Code of Federal Regulations (or any cor-
responding similar regulation or ruling)
shall not apply to such disciplinary actions.
‘‘(v) EMPLOYMENT; EXCLUSION OF AL-
COHOLICS.—For purposes of sections 503
and 504 as such sections relate to employ-
ment, the term ‘individual with a disabil-
ity’ does not include any individual who is
an alcoholic whose current use of alcohol
prevents such individual from performing
the duties of the job in question or whose
employment, by reason of such current alco-
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hol abuse, would constitute a direct threat
to property or the safety of others.
‘‘(D) EMPLOYMENT; EXCLUSION OF INDIVID-
UALS
WITH
CERTAIN
DISEASES
OR
INFEC-
TIONS.—For the purposes of sections 503 and
504, as such sections relate to employment, such
term does not include an individual who has a
currently contagious disease or infection and
who, by reason of such disease or infection,
would constitute a direct threat to the health or
safety of other individuals or who, by reason of
the currently contagious disease or infection, is
unable to perform the duties of the job.
‘‘(E) RIGHTS
PROVISIONS; EXCLUSION
OF
INDIVIDUALS ON BASIS OF HOMOSEXUALITY OR
BISEXUALITY.—For the purposes of sections 501,
503, and 504—
‘‘(i) for purposes of the application of
subparagraph (B) to such sections, the term
‘impairment’ does not include homosexual-
ity or bisexuality; and
‘‘(ii) therefore the term ‘individual
with a disability’ does not include an indi-
vidual on the basis of homosexuality or bi-
sexuality.
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‘‘(F) RIGHTS
PROVISIONS; EXCLUSION
OF
INDIVIDUALS
ON
BASIS
OF
CERTAIN
DIS-
ORDERS.—For the purposes of sections 501, 503,
and 504, the term ‘individual with a disability’
does not include an individual on the basis of—
‘‘(i) 
transvestism, 
transsexualism,
pedophilia, exhibitionism, voyeurism, gen-
der identity disorders not resulting from
physical impairments, or other sexual be-
havior disorders;
‘‘(ii) compulsive gambling, kleptoma-
nia, or pyromania; or
‘‘(iii) psychoactive substance use dis-
orders resulting from current illegal use of
drugs.
‘‘(G) INDIVIDUALS
WITH
DISABILITIES.—
The term ‘individuals with disabilities’ means
more than one individual with a disability.
‘‘(21) INDIVIDUAL WITH A SIGNIFICANT DISABIL-
ITY.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B) or (C), the term ‘individual
with a significant disability’ means an individ-
ual with a disability—
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‘‘(i) who has a severe physical or men-
tal impairment which seriously limits one
or more functional capacities (such as mo-
bility, communication, self-care, self-direc-
tion, interpersonal skills, work tolerance, or
work skills) in terms of an employment out-
come;
‘‘(ii) whose vocational rehabilitation
can be expected to require multiple voca-
tional rehabilitation services over an ex-
tended period of time; and
‘‘(iii) who has one or more physical or
mental disabilities resulting from amputa-
tion, arthritis, autism, blindness, burn in-
jury, cancer, cerebral palsy, cystic fibrosis,
deafness, head injury, heart disease, hemi-
plegia, hemophilia, respiratory or pul-
monary dysfunction, mental retardation,
mental illness, multiple sclerosis, muscular
dystrophy, musculo-skeletal disorders, neu-
rological disorders (including stroke and
epilepsy), paraplegia, quadriplegia, and
other spinal cord conditions, sickle cell ane-
mia, specific learning disability, end-stage
renal disease, or another disability or com-
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bination of disabilities determined on the
basis of an assessment for determining eligi-
bility and vocational rehabilitation needs
described in subparagraphs (A) and (B) of
paragraph (2) to cause comparable substan-
tial functional limitation.
‘‘(B) INDEPENDENT LIVING SERVICES AND
CENTERS FOR INDEPENDENT LIVING.—For pur-
poses of title VII, the term ‘individual with a
significant disability’ means an individual with
a severe physical or mental impairment whose
ability to function independently in the family
or community or whose ability to obtain, main-
tain, or advance in employment is substantially
limited and for whom the delivery of independ-
ent living services will improve the ability to
function, continue functioning, or move towards
functioning independently in the family or com-
munity or to continue in employment, respec-
tively.
‘‘(C) RESEARCH AND TRAINING.—For pur-
poses of title II, the term ‘individual with a sig-
nificant disability’ includes an individual de-
scribed in subparagraph (A) or (B).
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‘‘(D) INDIVIDUALS WITH SIGNIFICANT DIS-
ABILITIES.—The term ‘individuals with signifi-
cant disabilities’ means more than one individ-
ual with a significant disability.
‘‘(E) INDIVIDUAL WITH A MOST SIGNIFICANT
DISABILITY.—
‘‘(i) IN GENERAL.—The term ‘individ-
ual with a most significant disability’, used
with respect to an individual in a State,
means an individual with a significant dis-
ability who meets criteria established by the
State under section 101(a)(5)(C).
‘‘(ii) INDIVIDUALS
WITH
THE
MOST
SIGNIFICANT DISABILITIES.—The term ‘in-
dividuals with the most significant disabil-
ities’ means more than one individual with
a most significant disability.
‘‘(22) INDIVIDUAL’S
REPRESENTATIVE; APPLI-
CANT’S REPRESENTATIVE.—
‘‘(A) INDIVIDUAL’S REPRESENTATIVE.—The
term ‘individual’s representative’ used with re-
spect to an eligible individual or other individ-
ual with a disability, means—
‘‘(i) any representative chosen by the
eligible individual or other individual with
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a disability, including a parent, guardian,
other family member, or advocate; or
‘‘(ii) if a representative or legal guard-
ian has been appointed by a court to rep-
resent the eligible individual or other indi-
vidual with a disability, the court-ap-
pointed representative or legal guardian.
‘‘(B) APPLICANT’S REPRESENTATIVE.—The
term ‘applicant’s representative’ means—
‘‘(i) any representative described in
subparagraph (A)(i) chosen by the appli-
cant; or
‘‘(ii) if a representative or legal guard-
ian has been appointed by a court to rep-
resent the applicant, the court-appointed
representative or legal guardian.
‘‘(23) INSTITUTION
OF
HIGHER
EDUCATION.—
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)).
‘‘(24) LOCAL AGENCY.—The term ‘local agency’
means an agency of a unit of general local govern-
ment or of an Indian tribe (or combination of such
units or tribes) which has an agreement with the des-
ignated State agency to conduct a vocational rehabili-
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tation program under the supervision of such State
agency in accordance with the State plan approved
under section 101. Nothing in the preceding sentence
of this paragraph or in section 101 shall be construed
to prevent the local agency from arranging to utilize
another local public or nonprofit agency to provide
vocational rehabilitation services if such an arrange-
ment is made part of the agreement specified in this
paragraph.
‘‘(25) LOCAL
WORKFORCE
INVESTMENT
PART-
NERSHIP.—The term ‘local workforce investment part-
nership’ means a local workforce investment partner-
ship established under section 308 of the Workforce
Investment Partnership Act of 1998.
‘‘(26) NONPROFIT.—The term ‘nonprofit’, when
used with respect to a community rehabilitation pro-
gram, means a community rehabilitation program
carried out by a corporation or association, no part
of the net earnings of which inures, or may lawfully
inure, to the benefit of any private shareholder or in-
dividual and the income of which is exempt from tax-
ation under section 501(c)(3) of the Internal Revenue
Code of 1986.
‘‘(27) ONGOING SUPPORT SERVICES.—The term
‘ongoing support services’ means services—
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‘‘(A) provided to individuals with the most
significant disabilities;
‘‘(B) provided, at a minimum, twice month-
ly—
‘‘(i) to make an assessment, regarding
the employment situation, at the worksite of
each such individual in supported employ-
ment, or, under special circumstances, espe-
cially at the request of the client, off site;
and
‘‘(ii) based on the assessment, to pro-
vide for the coordination or provision of
specific intensive services, at or away from
the worksite, that are needed to maintain
employment stability; and
‘‘(C) consisting of—
‘‘(i) a particularized assessment sup-
plementary to the comprehensive assessment
described in paragraph (2)(B);
‘‘(ii) the provision of skilled job train-
ers who accompany the individual for in-
tensive job skill training at the work site;
‘‘(iii) job development, job retention,
and placement services;
‘‘(iv) social skills training;
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‘‘(v) regular observation or supervision
of the individual;
‘‘(vi) followup services such as regular
contact with the employers, the individuals,
the individuals’ representatives, and other
appropriate individuals, in order to rein-
force and stabilize the job placement;
‘‘(vii) facilitation of natural supports
at the worksite;
‘‘(viii) any other service identified in
section 103; or
‘‘(ix) a service similar to another serv-
ice described in this subparagraph.
‘‘(28) PERSONAL
ASSISTANCE
SERVICES.—The
term ‘personal assistance services’ means a range of
services, provided by one or more persons, designed to
assist an individual with a disability to perform
daily living activities on or off the job that the indi-
vidual would typically perform if the individual did
not have a disability. Such services shall be designed
to increase the individual’s control in life and ability
to perform everyday activities on or off the job.
‘‘(29) PUBLIC OR NONPROFIT.—The term ‘public
or nonprofit’, used with respect to an agency or orga-
nization, includes an Indian tribe.
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‘‘(30) REHABILITATION TECHNOLOGY.—The term
‘rehabilitation technology’ means the systematic ap-
plication of technologies, engineering methodologies,
or scientific principles to meet the needs of and ad-
dress the barriers confronted by individuals with dis-
abilities in areas which include education, rehabilita-
tion, employment, transportation, independent living,
and recreation. The term includes rehabilitation engi-
neering, assistive technology devices, and assistive
technology services.
‘‘(31) REQUIRES
VOCATIONAL
REHABILITATION
SERVICES.—The term ‘requires vocational rehabilita-
tion services’, used with respect to an individual with
a disability as defined in paragraph (20)(A), means
that the individual is unable to prepare for, secure,
retain, or regain employment consistent with the
strengths, resources, priorities, concerns, abilities, ca-
pabilities, interests, and informed choice of the indi-
vidual without vocational rehabilitation services, be-
cause the individual—
‘‘(A) has never been employed;
‘‘(B) has lost employment;
‘‘(C) is underemployed;
‘‘(D) is at immediate risk of losing employ-
ment; or
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‘‘(E) receives benefits on the basis of disabil-
ity or blindness pursuant to title II or XVI of
the Social Security Act (42 U.S.C. 401 et seq. or
1381 et seq.), in a case in which the individual
intends to achieve an employment outcome con-
sistent with the unique strengths, resources, pri-
orities, concerns, abilities, capabilities, interests,
and informed choice of the individual.
‘‘(32) SECRETARY.—The term ‘Secretary’, except
when the context otherwise requires, means the Sec-
retary of Education.
‘‘(33) STATE.—The term ‘State’ includes, in ad-
dition to each of the several States of the United
States, the District of Columbia, the Commonwealth
of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
‘‘(34) 
STATEWIDE
WORKFORCE
INVESTMENT
PARTNERSHIP.—The term ‘statewide workforce invest-
ment partnership’ means a partnership established
under section 303 of the Workforce Investment Part-
nership Act of 1998.
‘‘(35) STATEWIDE WORKFORCE INVESTMENT SYS-
TEM.—The term ‘statewide workforce investment sys-
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tem’ means a system described in section 301 of the
Workforce Investment Partnership Act of 1998.
‘‘(36) SUPPORTED EMPLOYMENT.—
‘‘(A) IN
GENERAL.—The term ‘supported
employment’ means competitive work in inte-
grated work settings, or employment in inte-
grated work settings in which individuals are
working toward competitive work, consistent
with the strengths, resources, priorities, concerns,
abilities, capabilities, interests, and informed
choice of the individuals, for individuals with the
most significant disabilities—
‘‘(i)(I) for whom competitive employ-
ment has not traditionally occurred; or
‘‘(II) for whom competitive employ-
ment has been interrupted or intermittent
as a result of a significant disability; and
‘‘(ii) who, because of the nature and se-
verity of their disability, need intensive
supported employment services for the pe-
riod, and any extension, described in para-
graph (37)(C) and extended services after
the transition described in paragraph
(13)(C) in order to perform such work.
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‘‘(B) 
CERTAIN
TRANSITIONAL
EMPLOY-
MENT.—Such term includes transitional employ-
ment for persons who are individuals with the
most significant disabilities due to mental ill-
ness.
‘‘(37) SUPPORTED EMPLOYMENT SERVICES.—The
term ‘supported employment services’ means ongoing
support services and other appropriate services needed
to support and maintain an individual with a most
significant disability in supported employment,
that—
‘‘(A) are provided singly or in combination
and are organized and made available in such a
way as to assist an eligible individual to achieve
competitive employment;
‘‘(B) are based on a determination of the
needs of an eligible individual, as specified in an
individualized rehabilitation employment plan;
and
‘‘(C) are provided by the designated State
unit for a period of time not to extend beyond
18 months, unless under special circumstances
the eligible individual and the rehabilitation
counselor or coordinator jointly agree to extend
the time in order to achieve the rehabilitation ob-
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jectives identified in the individualized rehabili-
tation employment plan.
‘‘(38) TRANSITION SERVICES.—The term ‘transi-
tion services’ means a coordinated set of activities for
a student, designed within an outcome-oriented proc-
ess, that promotes movement from school to post
school activities, including postsecondary education,
vocational training, integrated employment (includ-
ing supported employment), continuing and adult
education, adult services, independent living, or com-
munity participation. The coordinated set of activi-
ties shall be based upon the individual student’s
needs, taking into account the student’s preferences
and interests, and shall include instruction, commu-
nity experiences, the development of employment and
other post school adult living objectives, and, when
appropriate, acquisition of daily living skills and
functional vocational evaluation.
‘‘(39) 
UNDEREMPLOYED.—The 
term 
‘under-
employed’, used with respect to an individual with a
disability, as defined in paragraph (20)(A), means a
situation in which the individual is employed in a
job that is not consistent with the strengths, resources,
priorities, concerns, abilities, capabilities, interests,
and informed choice of the individual.
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‘‘(B) NONDUPLICATION.—The State shall
not be required to submit, in the State plan for
vocational rehabilitation services, policies, proce-
dures, or descriptions required under this title
that have been previously submitted to the Com-
missioner and that demonstrate that such State
meets the requirements of this title, including
any policies, procedures, or descriptions submit-
ted under this title as in effect on the day before
the effective date of the Rehabilitation Act
Amendments of 1998.
‘‘(C) DURATION.—The State plan shall re-
main in effect subject to the submission of such
modifications as the State determines to be nec-
essary or as the Commissioner may require based
on a change in State policy, a change in Federal
law (including regulations), an interpretation of
this Act by a Federal court or the highest court
of the State, or a finding by the Commissioner
of State noncompliance with the requirements of
this Act, until the State submits and receives ap-
proval of a new State plan.
‘‘(2) DESIGNATED STATE AGENCY; DESIGNATED
STATE UNIT.—
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censure laws and who are selected by the individ-
ual;
‘‘(E) special services (including transplan-
tation and dialysis), artificial kidneys, and sup-
plies necessary for the treatment of individuals
with end-stage renal disease; and
‘‘(F) diagnosis and treatment for mental
and emotional disorders by qualified personnel
who meet State licensure laws;
‘‘(7) maintenance for additional costs incurred
while participating in an assessment for determining
eligibility and vocational rehabilitation needs or
while receiving services under an individualized reha-
bilitation employment plan;
‘‘(8) transportation, including adequate training
in the use of public transportation vehicles and sys-
tems, that is provided in connection with the provi-
sion of any other service described in this section and
needed by the individual to achieve an employment
outcome;
‘‘(9) on-the-job or other related personal assist-
ance services provided while an individual is receiv-
ing other services described in this section;
‘‘(10) interpreter services provided by qualified
personnel for individuals who are deaf or hard of
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findings of fact, with the return of such submissions
and presentations. The court shall thereafter review
such new or modified determination.
‘‘(3) STANDARDS OF REVIEW.—
‘‘(A) IN GENERAL.—Upon the filing of a pe-
tition under paragraph (1) for judicial review of
a determination, the court shall have jurisdic-
tion—
‘‘(i) to grant appropriate relief as pro-
vided in chapter 7 of title 5, United States
Code, except for interim relief with respect
to a determination under subsection (c);
and
‘‘(ii) except as otherwise provided in
subparagraph (B), to review such deter-
mination in accordance with chapter 7 of
title 5, United States Code.
‘‘(B) SUBSTANTIAL EVIDENCE.—Section 706
of title 5, United States Code, shall apply to the
review of any determination under this sub-
section, except that the standard for review pre-
scribed by paragraph (2)(E) of such section 706
shall not apply and the court shall hold unlawful
and set aside such determination if the court
finds that the determination is not supported by
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allotment (as determined under the preceding provisions of
this section) for such year.
‘‘(c)(1) For fiscal year 1987 and for each subsequent
fiscal year, the Commissioner shall reserve from the amount
appropriated under section 100(b)(1) for allotment under
this section a sum, determined under paragraph (2), to
carry out the purposes of part C.
‘‘(2) The sum referred to in paragraph (1) shall be,
as determined by the Secretary—
‘‘(A) not less than three-quarters of 1 percent
and not more than 1.5 percent of the amount referred
to in paragraph (1), for fiscal year 1998; and
‘‘(B) not less than 1 percent and not more than
1.5 percent of the amount referred to in paragraph
(1), for each of fiscal years 1999 through 2004.
‘‘PAYMENTS TO STATES
‘‘SEC. 111. (a)(1) Except as provided in paragraph
(2), from each State’s allotment under this part for any
fiscal year, the Commissioner shall pay to a State an
amount equal to the Federal share of the cost of vocational
rehabilitation services under the plan for that State ap-
proved under section 101, including expenditures for the ad-
ministration of the State plan.
‘‘(2)(A) The total of payments under paragraph (1)
to a State for a fiscal year may not exceed its allotment
under subsection (a) of section 110 for such year.