I
105TH CONGRESS
1ST SESSION
H. R. 1385
To consolidate, coordinate, and improve employment, training, literacy, and
vocational rehabilitation programs in the United States, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 17, 1997
Mr. MCKEON (for himself, Mr. GOODLING, and Mr. KILDEE) introduced the
following bill; which was referred to the Committee on Education and the
Workforce
A BILL
To consolidate, coordinate, and improve employment, train-
ing, literacy, and vocational rehabilitation programs in
the United States, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Employment, Training,
and Literacy Enhancement Act of 1997’’.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) DIVISIONS.—This Act is organized into two divi-
sions as follows:
(1) Division A—Employment, Training, and
Literacy Programs.
(2) Division B—Vocational Rehabilitation Pro-
grams.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
DIVISION A—EMPLOYMENT, TRAINING, AND LITERACY
PROGRAMS
TITLE I—AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM
REQUIREMENTS
Subtitle A—General Provisions
Sec. 101. Statement of purpose.
Sec. 102. Authorization of appropriations.
Sec. 103. Definitions.
Subtitle B—State and Local Administrative Provisions
Sec. 111. State administrative provisions.
Sec. 112. Local administrative provisions.
Subtitle C—Program and Fiscal Provisions
CHAPTER 1—GENERAL PROVISIONS
Sec. 121. General program requirements.
Sec. 122. Benefits.
Sec. 123. Labor standards.
Sec. 124. Grievance procedure.
Sec. 125. Identification of additional imposed requirements.
Sec. 126. Authority of State legislature.
Sec. 127. Interstate agreements.
CHAPTER 2—PERFORMANCE ACCOUNTABILITY PROVISIONS
Sec. 131. Performance accountability provisions.
CHAPTER 3—OTHER PROVISIONS
Sec. 141. Prompt allocation of funds.
Sec. 142. Fiscal controls; sanctions.
Sec. 143. Reports; recordkeeping; and investigations.
Sec. 144. Administrative adjudication.
Sec. 145. Nondiscrimination.
Sec. 146. Judicial review.
Sec. 147. Administrative provisions.
Sec. 148. Presidential awards for outstanding private sector involvement in job
training programs.
Sec. 149. Construction.
Sec. 150. Limitation on certain costs.
Subtitle D—Miscellaneous Provisions
Sec. 161. Criminal provisions.
Sec. 162. Reference.
Sec. 163. Repealers.
TITLE II—AMENDMENTS TO EMPLOYMENT AND TRAINING
PROGRAMS FOR DISADVANTAGED YOUTH
Sec. 201. Adult training program.
Sec. 202. Summer youth employment and training program.
Sec. 203. Disadvantaged youth employment and training opportunities grants.
TITLE III—AMENDMENTS TO EMPLOYMENT AND TRAINING
PROGRAMS FOR ADULTS
Sec. 301. Adult employment and training opportunities grants.
TITLE IV—AMENDMENTS TO FEDERALLY ADMINISTERED
PROGRAMS
Subtitle A—Employment and Training Programs for Native Americans and
Migrant and Seasonal Farmworkers
Sec. 401. Native American program.
Sec. 402. Migrant and seasonal farmworker program.
Subtitle B—Job Corps
Sec. 411. Statement of purpose.
Sec. 412. Individuals eligible for the Job Corps.
Sec. 413. Screening and selection of applicants; general provisions.
Sec. 414. Job Corps centers.
Sec. 415. Standards of conduct.
Sec. 416. Counseling and job placement.
Sec. 417. Experimental and developmental projects and coordination with other
programs.
Subtitle C—National Activities
Sec. 421. Research, demonstration, evaluation, and capacity building.
Sec. 422. Nontraditional employment demonstration program.
Subtitle D—Repealers
Sec. 451. Repealers.
TITLE V—AMENDMENTS TO ADULT EDUCATION PROGRAMS
Sec. 501. Repeal of Jobs for Employable Dependent Individuals Incentive
Bonus Program.
Sec. 502. Transfer and Amendment of Adult Education Act.
Sec. 503. Repeal of National Literacy Act of 1991.
Sec. 504. Conforming amendments.
TITLE VI—MISCELLANEOUS PROVISIONS
Sec. 601. Repealers.
Sec. 602. Conforming amendments.
TITLE VII—AMENDMENTS TO STATE HUMAN RESOURCE
INVESTMENT COUNCIL
Sec. 701. Amendments to Council.
Sec. 702. Transfer of Council.
Sec. 703. Conforming amendments.
TITLE VIII—AMENDMENTS TO WAGNER-PEYSER ACT
Sec. 801. Definitions.
Sec. 802. Functions.
Sec. 803. Designation of State agencies.
Sec. 804. Appropriations.
Sec. 805. Disposition of allotted funds.
Sec. 806. State plans.
Sec. 807. Federal advisory council.
Sec. 808. Regulations.
Sec. 809. Effective date.
TITLE IX—TECHNICAL AND CONFORMING AMENDMENTS
Subtitle A—Amendments to the Job Training Partnership Act
Sec. 901. Short title; table of contents.
Sec. 902. Definitions.
Sec. 903. Amendments to title I.
Sec. 904. Amendments to title IV.
Sec. 905. Amendments to title VI.
Subtitle B—Amendments to Other Acts
Sec. 911. Amendments to other Acts.
TITLE X—EFFECTIVE DATE AND TRANSITION PROVISIONS
Sec. 1001. Effective date.
Sec. 1002. Transition provisions.
DIVISION B—VOCATIONAL REHABILITATION PROGRAMS
TITLE XXI—AMENDMENTS TO GENERAL PROVISIONS
Sec. 2101. Rehabilitation Services Administration.
Sec. 2102. Definitions.
TITLE XXII—AMENDMENTS TO VOCATIONAL REHABILITATION
SERVICES
Subtitle A—General Provisions
Sec. 2201. Declaration of policy; authorization of appropriations.
Sec. 2202. State plans.
Sec. 2203. Individualized written rehabilitation program.
Sec. 2204. Scope of vocational rehabilitation services.
‘‘(2) TITLE III.—(A) Such sums as may be nec-
essary for each of the fiscal years 1999 through
2003 to carry out section 312(a)(1).
‘‘(B) Such sums as may be necessary for each
of the fiscal years 1999 through 2003 to carry out
section 312(a)(2).
‘‘(3) PARTS A, C, D, AND E OF TITLE IV.—Sub-
ject to subsection (b), such sums as may be nec-
essary for each of the fiscal years 1999 through
2003 to carry out parts A, C, D, and E of title IV.
‘‘(4) PART B OF TITLE IV.—Such sums as may
be necessary for each of the fiscal years 1999
through 2003 to carry out part B of title IV.
‘‘(b) RESERVATIONS.—Of the amount appropriated
under subsection (a)(3) for a fiscal year—
‘‘(1) $70,000,000 shall be reserved for carrying
out section 401;
‘‘(2) $70,000,000 shall be reserved for carrying
out section 402; and
‘‘(3) the remainder shall be reserved for carry-
ing out parts C, D, and E of title IV.
‘‘(c) REALLOTMENT.—
‘‘(1) IN
GENERAL.—The Secretary of Labor
shall, in accordance with this subsection, reallot to
eligible States amounts appropriated for programs
authorized under titles II and title III of this Act
that are available for reallotment.
‘‘(2) AMOUNT.—The amount available for real-
lotment is equal to the amount by which the unobli-
gated balance of the State allotment under title II
or title III, respectively, at the end of the program
year prior to the program year for which the deter-
mination under this paragraph is made exceeds 15
percent of such allotment for the prior program
year.
‘‘(3) REALLOTMENT.—In making reallotments
to eligible States of amounts available pursuant to
paragraph (2) for a program year, the Secretary
shall allot to each eligible State an amount based on
the relative amount allotted to such State under title
II or title III, respectively, for the prior program
year as compared to the total amount allotted to all
eligible States under title II or title III, respectively,
for such prior program year.
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible State means a State which has
obligated at least 85 percent of its allocations under
title II or title III, respectively, for the program year
prior to the program year for which the determina-
tion under this subsection is made.
‘‘(5) PROCEDURES.—The Governor of each
State shall prescribe uniform procedures for the obli-
gation of funds by workforce development areas
within the State in order to avoid the requirement
that funds be made available for reallotment under
this subsection. The Governor shall further prescribe
equitable procedures for making funds available
from the State and workforce development areas in
the event that a State is required to make funds
available for reallotment under this paragraph.’’.
SEC. 103. DEFINITIONS.
Section 4 of the Job Training Partnership Act (29
U.S.C. 1503) is amended—
(1) by amending paragraph (1) to read as fol-
lows:
‘‘(1) ADULT EDUCATION AND LITERACY ACTIVI-
TIES.—The term ‘adult education and literacy activi-
ties’ means the activities authorized under section
515.’’;
(2) by striking paragraph (2);
(3) by inserting after paragraph (1) the follow-
ing:
‘‘(2) APPROPRIATE SECRETARY.—The term ‘ap-
propriate Secretary’ means—
‘‘(A) the Secretary of Labor, with respect
to programs authorized under titles II, III, and
IV of this Act; and
‘‘(B) the Secretary of Education, with re-
spect to programs authorized under title V of
this Act.’’;
(4) in paragraph (3), by striking ‘‘under parts
A and C of title II’’ and inserting ‘‘under title II
and title III’’;
(5) in paragraph (4) to read as follows:
‘‘(4) CHIEF
ELECTED
OFFICIAL.—The term
‘chief elected official’ means the chief elected execu-
tive officer of a unit of general local government in
a workforce development area.’’;
(6) in paragraph (5) to read as follows:
‘‘(5) COMMUNITY-BASED ORGANIZATION.—The
term ‘community-based organization’ means a pri-
vate nonprofit organization that is representative of
a community or a significant segment of a commu-
nity and that has demonstrated the ability, or that
can demonstrate a capacity, to effectively administer
a program under this Act.’’;
(7) by striking paragraph (6);
(8) by inserting after paragraph (5) the follow-
ing:
‘‘(6) DISLOCATED
WORKER.—The term ‘dis-
located worker’ means an individual who—
‘‘(A)(i) has been terminated or laid off, or
who has received a notice of termination or lay-
off, from employment;
‘‘(ii) is eligible for or has exhausted entitle-
ment to unemployment compensation; and
‘‘(iii) is unlikely to return to a previous in-
dustry or occupation;
‘‘(B) has been terminated or laid off, or
has received a notice of termination or layoff,
from employment as a result of any permanent
closure of, or and substantial layoff at, a plant,
facility, or enterprise;
‘‘(C) has been unemployed long-term and
has limited opportunities for employment or re-
employment in the same or a similar occupation
in the area in which such individual resides;
‘‘(D) was self-employed (including a farm-
er and a rancher) but is unemployed as a result
of general economic conditions in the commu-
nity in which the individual resides or because
of natural disasters;
‘‘(E) is a displaced homemaker; or
‘‘(F) has become unemployed as a result of
a Federal action that limits the use of, or re-
stricts access to, a marine natural resource.’’;
(9) in paragraph (10) to read as follows:
‘‘(10) INDIVIDUAL
WITH
A
DISABILITY.—(A)
The term ‘individual with a disability’ means an in-
dividual with any disability (as defined in section 3
of the Americans with Disabilities Act of 1990 (42
U.S.C. 12102)).
‘‘(B) The term ‘individuals with disabilities’
means more than one individual with a disability.’’;
(10) by striking paragraph (11);
(11) in paragraph (14), by striking ‘‘section
521(22) of the Carl D. Perkins Vocational Edu-
cation Act’’ and inserting ‘‘section 14101 of the Ele-
mentary and Secondary Education Act of 1965 (20
U.S.C. 8801)’’;
(12) in paragraph (18), by striking all after
‘‘institution of higher education’’ and inserting ‘‘(as
such term is defined in section 481 of the Higher
Education Act of 1965 (20 U.S.C. 1088)) that con-
tinues to meet the eligibility and certification re-
quirements under title IV of such Act (20 U.S.C.
1070 et seq.).’’;
(13) by striking paragraph (19);
‘‘(1) the Governor;
‘‘(2) representatives, appointed by the Gov-
ernor, of—
‘‘(A) business and industry;
‘‘(B) local chief elected officials (represent-
ing both cities and counties, where appro-
priate);
‘‘(C) local educational agencies (including
adult education and literacy providers);
‘‘(D) postsecondary institutions (including
community and technical colleges);
‘‘(E) organizations representing individuals
served by programs authorized under this Act
(including community-based organizations);
‘‘(F) parents; and
‘‘(G) employees (which may include labor);
‘‘(3) the lead State agency official or officials
for—
‘‘(A) employment security;
‘‘(B) job training;
‘‘(C) the State educational agency;
‘‘(D) the eligible agency for vocational edu-
cation;
‘‘(E) the eligible agency for adult edu-
cation and literacy;
‘‘(F) the State agency responsible for post-
secondary education;
‘‘(G) the State agency responsible for wel-
fare; and
‘‘(H) the State agency responsible for vo-
cational rehabilitation, and where applicable,
the State agency providing vocational rehabili-
tation program activities for the blind;
‘‘(4) such other State agency officials, including
officials responsible for economic development, as
the Governor may designate;
‘‘(5) representatives of the State legislature;
and
‘‘(6) the representative of the Veterans’ Em-
ployment and Training Service assigned to the State
under section 4103 of title 38, United States Code.
‘‘(b) CLARIFICATION.—For purposes of complying
with subsection (a), a State may use any State collabo-
rative process (including a council, board, State Human
Resource Investment Council established under section
103, or a similar entity) that meets or is conformed to
meet the requirements of such subsection.
‘‘(c) ADDITIONAL FUNCTIONS
OF
THE COLLABO-
RATIVE PROCESS.—In addition to development of the
State plan, the individuals and entities described in sub-
section (a) shall collaborate in—
‘‘(1) the designation of local workforce areas as
required under section 121;
‘‘(2) the development of allocation formulas for
the distribution of funds to local workforce develop-
ment areas for programs authorized under title II
and title III;
‘‘(3) the development of the State goals and
benchmarks as required under part C of this title,
including the continued updating of such goals and
benchmarks;
‘‘(4) the provision of management guidance and
review for all programs in the State, including re-
view of the operation of programs conducted in each
local workforce development area, and the availabil-
ity, responsiveness, and adequacy of State services,
and make recommendations to the Governor, the
State legislature, appropriate chief elected officials,
local workforce development boards, and service pro-
viders throughout the State regarding the findings
of such review;
‘‘(5) the continued development of linkages be-
tween employment, training, literacy, and other
human resource and workforce preparation pro-
grams in the State;
‘‘(6) comment at least once annually on the
measures taken pursuant to section 113(b)(14) of
the Carl D. Perkins Vocational Education Act; and
‘‘(7) review plans of all State agencies providing
employment, training, and related services, and pro-
vide comments and recommendations to the Gov-
ernor, the State legislature, the State agencies, and
the appropriate federal agencies on the relevancy
and effectiveness of employment, training, and relat-
ed delivery systems in the State.’’.
SEC. 112. LOCAL ADMINISTRATIVE PROVISIONS.
Part B of title I of the Job Training Partnership Act
(29 U.S.C. 1531 et seq.) is amended by striking sections
121 through 123 and inserting the following:
‘‘PART B—LOCAL ADMINISTRATIVE PROVISIONS
‘‘SEC. 121. LOCAL WORKFORCE DEVELOPMENT AREAS.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), a State that desires to receive a grant under title II
or title III shall, through the collaborative process estab-
lished under section 102 and after consultation with local
chief elected officials, and after consideration of comments
received through the public comment process as described
in paragraph (7) of the State plan, designate local
workforce development areas within the State that are
consistent with labor market areas, or a substantial por-
tion of a labor market area, and that take into consider-
ation the following:
‘‘(1) Units of general local government.
‘‘(2) Geographic areas served by local edu-
cational agencies and intermediate educational agen-
cies.
‘‘(3) Geographic areas served by postsecondary
institutions and area vocational education schools.
‘‘(4) Service delivery areas established under
section 101 of this Act (as such section was in effect
on the day before the date of the enactment of the
Employment, Training, and Literacy Enhancement
Act of 1997).
‘‘(5) The distance that individuals will need to
travel to receive services.
‘‘(b) SMALL STATES.—Any State determined to be
eligible to receive a minimum allotment under section
203(b)(1)(C) or paragraph (1)(B)(iii) or paragraph
(2)(B)(iii) of section 312(b) may designate itself, through
the collaborative process established pursuant to section
102, and after consultation with local chief elected offi-
cials, and consideration of comments received through the
public comment process described in paragraph (7) of the
State plan, as a single State workforce development area
for purposes of this Act.
‘‘SEC. 122. LOCAL WORKFORCE DEVELOPMENT BOARDS.
‘‘(a) ESTABLISHMENT.—There shall be established in
each local workforce development area of a State, and cer-
tified by the Governor of the State, a local workforce de-
velopment board (hereinafter referred to as the ‘local
board’), reflecting business and community interests in
employment, training, and other workforce preparation ac-
tivities.
‘‘(b) MEMBERSHIP.—
‘‘(1) STATE CRITERIA.—The Governor of the
State, through the collaborative process described in
section 102, shall establish criteria for use by local
chief elected officials in the local workforce develop-
ment areas for appointment of members of the local
boards in such local areas in accordance with the re-
quirements of paragraph (2).
‘‘(2) COMPOSITION.—Such criteria shall require
at a minimum, that the membership of each local
board consist of—
‘‘(A) a majority of members who are rep-
resentatives of business and industry in the
local workforce development area, who are own-
ers of businesses, chief executives or chief oper-
ployment, training and workforce prepara-
tion activities in the local area;
‘‘(iii) a description of the local bench-
marks negotiated with the Governor pursu-
ant to paragraph (6)(A), to be used by the
local board for measuring the performance
of the local administrative entity (where
appropriate), eligible providers of services
authorized under titles II and III, and the
performance of the full service employment
and training delivery system in the local
workforce development area;
‘‘(iv) a description of the local full
service employment and training delivery
system to be established or designated in
the local workforce development area, in-
cluding—
‘‘(I) a description of the process
negotiated with the Governor pursu-
ant to paragraph (6)(B) that the local
board will use to designate or certify
full service eligible providers in the
local workforce development area,
which ensures that the most effective
and efficient providers will be chosen;
‘‘(II) a description of how the
local board will ensure the continuous
improvement of such full service eligi-
ble providers and that such providers
will continue to meet the labor market
needs of local employers and partici-
pants; and
‘‘(III) an identification of the
roles of individual employment, train-
ing, and other human resources pro-
grams, as determined appropriate, in-
cluding programs authorized by the
Wagner-Peyser Act (20 U.S.C. 49 et
seq.), in carrying out the functions of
the full service employment and train-
ing delivery system, including a de-
scription of the funding sources to be
used in the operation of the full serv-
ice employment and training system;
‘‘(v) an identification of the adminis-
trative entity designated by the local board
in accordance with paragraph (5);
‘‘(vi) a description of the steps the
local board will take to work with local
educational agencies, postsecondary edu-
cational institutions (including community
colleges, where applicable), vocational edu-
cators, providers of adult education and lit-
eracy services, and other representatives of
the educational community to address local
employment, 
education, 
and 
training
needs, including a description of linkages
established with such individuals and enti-
ties to enhance the provision of services
and avoid duplication;
‘‘(vii) a description of the process that
will be used by the local board to fully in-
volve representatives of the local commu-
nity, including community-based organiza-
tions with experience in serving disadvan-
taged youth, the local education commu-
nity (including vocational educators and
teachers), parents, local law enforcement
agencies, and representatives of business
and employees (which may include labor)
in the development and implementation of
disadvantaged youth programs in the local
workforce development area, including a
description of the process used (involving
the individuals and organizations described
in this clause) to ensure that the most ef-
fective and efficient providers are chosen to
carry out the activities authorized under
title II; and
‘‘(viii) such other information as the
Governor may require.
‘‘(C) CONSULTATION.—The local board
shall—
‘‘(i) consult with the chief elected offi-
cial in the appropriate local workforce de-
velopment area in the development of the
local plan; and
‘‘(ii) provide the chief elected official
with a copy of the local plan.
‘‘(D) APPROVAL.—
‘‘(i) IN GENERAL.—The chief elected
official shall—
‘‘(I) approve the local plan; or
‘‘(II) reject the local plan and
make recommendations to the local
board on how to improve the local
plan.
‘‘(ii) SUBMISSION.—If, after a reason-
able effort, the local board is unable to ob-
tain the approval of the chief elected offi-
cial for the local plan, the local board may
submit the plan to the Governor for ap-
proval under subparagraph (A), and shall
submit the recommendations of the chief
elected official to the Governor along with
the plan.
‘‘(2) SELECTION OF PROVIDERS.—
‘‘(A) SELECTION OF FULL SERVICE PRO-
VIDERS.—Consistent with section 123 and the
agreement negotiated with the Governor under
paragraph (6)(B)(i), the local board is author-
ized to designate or certify full service eligible
providers.
‘‘(B) SELECTION OF AT-RISK YOUTH PRO-
VIDERS.—Consistent with section 207, the local
board is authorized to award grants on a com-
petitive basis to eligible providers of disadvan-
taged youth activities in the local workforce de-
velopment area.
‘‘(3) IDENTIFICATION OF ELIGIBLE PROVIDERS
OF
TRAINING
SERVICES.—Consistent with section
124, the local board is authorized to work in part-
nership with the Governor concerning the identifica-
tion of eligible providers of training services de-
scribed in section 314(c) in the local workforce de-
velopment area.
‘‘(4) BUDGET AND PROGRAM OVERSIGHT.—
‘‘(A) BUDGETING.—
‘‘(i) 
IN
GENERAL.—The 
local
workforce development board shall develop
a budget for the purpose of carrying out
local programs established under titles II
and III and section 123.
‘‘(ii) APPROVAL
OF
BUDGET.—Such
budget shall be subject to the approval of
the chief elected official or officials in the
local workforce development area.
‘‘(B) PROGRAM
OVERSIGHT.—The local
workforce development board, in partnership
with the chief elected official or officials in the
local workforce development area, shall conduct
oversight of the programs established under ti-
tles II and III and section 123.
‘‘(5) ADMINISTRATION.—
‘‘(A) DESIGNATION
OF
ADMINISTRATIVE
ENTITY.—
‘‘(i) 
IN
GENERAL.—The 
local
workforce development board may des-
ignate itself as the administrative entity
for receipt and disbursement of funds
made available for carrying out programs
authorized under title II and title III of
this Act, or the local board may designate
an administrative entity (which may be the
State through a mutual agreement between
the local board and the State), for the pur-
pose of receipt and disbursement of such
funds.
‘‘(ii) ADDITIONAL
FISCAL
RESPON-
SIBILITIES.—Each administrative entity
shall be responsible for the distribution of
funds and shall have responsibility to take
action against its subcontractors, sub-
grantees, and other recipients to eliminate
abuses in the programs being carried out
in the local workforce development area
and to prevent any misuse of funds by sub-
contractors, subgrantees, and other recipi-
ents.
‘‘(B) STAFF; GRANTS
AND
OTHER
CON-
TRIBUTIONS.—The local board may employ its
own staff, independent of local programs and
service providers, and may solicit or accept
grants and contributions from sources other
than from this Act.
‘‘(C) PROHIBITION ON DIRECT OPERATION
OF PROGRAMS.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a local board or em-
ployees of such board may not directly pro-
vide services under programs established
under this Act.
‘‘(ii) WAIVER.—The Governor of the
State in which the local board is located
may grant to the local board a written
waiver of the prohibition under clause (i)
where necessary to improve performance or
to provide a full array of services in the
local area.
‘‘(D) CONFLICT OF INTEREST.—A member
of a local board may not—
‘‘(i) vote on a matter under consider-
ation by the local board—
‘‘(I) regarding the provision of
services by such member (or by an or-
ganization that such member rep-
resents); or
‘‘(II) that would provide direct fi-
nancial benefit to such member or the
immediate family of such member; or
‘‘(ii) engage in any other activity de-
termined by the Governor to constitute a
conflict of interest.
‘‘(6) NEGOTIATIONS.—
‘‘(A) LOCAL
BENCHMARKS.—The local
board, the local chief elected official, and the
Governor shall negotiate and reach agreement
on local benchmarks designed to meet the State
goals described in the State plan under section
101 for the local workforce development area.
In determining such benchmarks, the Governor,
the local chief elected official, and the local
board shall take into account the State adjusted
benchmarks described in section 153(a) with re-
spect to programs authorized under titles II
and III, and specific economic, demographic,
and other characteristics of the populations to
be served in the local workforce development
area.
‘‘(B) LOCAL DELIVERY OF SERVICES.—
‘‘(i) IN GENERAL.—The local board,
the local chief elected official, and the Gov-
ernor shall negotiate and reach agreement
on a process to be used by the local board
that meets the requirements of subclauses
(I) and (II) of paragraph (1)(B)(iv) for—
‘‘(I) the designation or certifi-
cation of full service eligible providers
(as described in section 123(c)) in the
local workforce development area, in-
cluding a determination of the role of
providers 
of 
activities 
authorized
under the Wagner-Peyser Act (29
U.S.C. 49 et seq.) in the full service
delivery of services in the local
workforce development area; and
‘‘(II) the continued role of the
local board and the local elected offi-
cial in conducting oversight with re-
spect to full service eligible providers
that are providers of activities author-
ized under the Wagner-Peyser Act (29
U.S.C. 49 et seq.), including the abil-
ity of the local board to terminate for
cause the eligibility of such providers.
‘‘(ii) ESTABLISHED
FULL
SERVICE
EMPLOYMENT
AND
TRAINING
DELIVERY
SYSTEM.—Notwithstanding this subsection
and section 123(c), if a full service employ-
ment and training delivery system has
been established in a local workforce devel-
opment area prior to the date of enactment
of this Act, or if approval has been ob-
tained for a plan for a full service employ-
ment and training delivery system under
the Wagner-Peyser Act (29 U.S.C. 49 et
seq.) prior to the date of enactment of this
Act, the local board and the Governor in-
volved may agree to certify such full serv-
ice employment and training delivery sys-
tem for purposes of this subparagraph.
‘‘(e) SUNSHINE PROVISION.—The local board shall
make available to the public, on a regular basis, informa-
tion regarding the activities of the local board, including
information regarding membership, the designation and
certification of full service employment and training center
eligible providers, and the award of grants to eligible pro-
viders of disadvantaged youth activities.
‘‘SEC. 123. FULL SERVICE EMPLOYMENT AND TRAINING DE-
LIVERY SYSTEM.
‘‘(a) IN GENERAL.—There shall be established in a
State that receives an allotment under section 312, a full
service employment and training delivery system that—
‘‘(1) shall provide the core services described in
subsection (d), including the information described
in part E of title IV and labor exchange services au-
thorized under the Wagner-Peyser Act (29 U.S.C.
49 et seq.);
‘‘(2) shall provide access to the activities car-
ried out under subsection (e), if any; and
‘‘(3) shall provide access to intensive and train-
ing services described in section 314, including serv-
ing as the point of distribution of skill grants for
training services to participants in accordance with
section 314(c)(6)(A).
‘‘(b) ACCESS TO DELIVERY OF SERVICES.—
‘‘(1) IN GENERAL.—The State’s full service em-
ployment and training delivery system shall provide
individuals and employers with access to the services
described in subsection (a) through a network of eli-
gible providers that assures participants that such
services will be available, regardless of where the
participants initially enter the system. At a mini-
mum, such services shall be available—
pensation, publicly funded employment and training
programs (including registered apprenticeships), and
forms of public financial assistance, such as student
aid programs, that may be available in order to en-
able individuals to participate in employment, train-
ing, literacy, and other workforce preparation activi-
ties;
‘‘(7) assistance in filing initial claims for unem-
ployment compensation;
‘‘(8) soliciting and accepting job orders submit-
ted by employers in the local workforce development
area, and screening and referring applicants in ac-
cordance with such orders;
‘‘(9) dissemination of lists of eligible training
providers and performance information regarding
such providers in accordance with section 124; and
‘‘(10) any additional performance information
with respect to the full service employment and
training delivery system in the local workforce devel-
opment area.
‘‘(e) PERMISSIBLE SERVICES.—Funds made avail-
able to local workforce development areas under section
313(b) may be used to contribute to, through the full serv-
ice employment and training delivery system—
‘‘(1) co-location of services related to employ-
ment, training, and literacy activities, such as unem-
ployment insurance, vocational rehabilitation pro-
gram activities, veterans’ employment services, pro-
grams authorized under the Wagner-Peyser Act (29
U.S.C 49 et seq.), employment-related services for
welfare recipients, or other public assistance activi-
ties;
‘‘(2) customized screening and referral of quali-
fied participants to employment; and
‘‘(3) customized employment-related services to
employers on a fee-for-service basis.
‘‘SEC. 124. IDENTIFICATION OF TRAINING PROVIDERS.
‘‘(a) ELIGIBILITY REQUIREMENTS.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (e), to be identified as an eligible provider of
training services under title III and to receive funds
made available for the provision of training services
described in section 314(c) (referred to in this sec-
tion as ‘training services’), a provider of such serv-
ices shall meet the requirements of this section.
‘‘(2) POSTSECONDARY EDUCATIONAL INSTITU-
TION.—Subject to the provisions of this section, a
postsecondary educational institution shall automati-
cally be eligible to provide training services under
title III for—
‘‘(A) a program that leads to an associate,
baccalaureate, professional, or graduate degree;
‘‘(B) a program that—
‘‘(i) is at least 2 academic years in
length; and
‘‘(ii) is acceptable for academic credit
toward a baccalaureate degree; or
‘‘(C) a program that—
‘‘(i) is at least 1 academic year in
length;
‘‘(ii) is a training program;
‘‘(iii) leads to a certificate, degree, or
other recognized educational credential;
and
‘‘(iv) prepares a student for gainful
employment in a recognized occupation.
‘‘(3) OTHER ELIGIBLE PROVIDERS.—
‘‘(A) PROCEDURE.—
‘‘(i) IN
GENERAL.—The Governor
shall establish a procedure for use by local
workforce development boards in determin-
ing the eligibility of public and private pro-
viders not described in paragraph (2) (in-
cluding eligibility of postsecondary edu-
cational institutions for programs not de-
scribed in paragraph (2)) to receive such
funds.
‘‘(ii) FACTORS.—In developing such
procedure, the Governor—
‘‘(I) shall solicit and take into
consideration the recommendations of
local workforce development boards
and providers of training services
within the State; and
‘‘(II) shall take into consider-
ation—
‘‘(aa) the specific economic,
geographic, and demographic fac-
tors in the local areas in which
eligible providers are located; and
‘‘(bb) the characteristics of
the populations served by the eli-
gible providers, including the
demonstrated difficulties in serv-
ing such populations, where ap-
plicable.
‘‘(B) LEVELS
OF
PERFORMANCE.—At a
minimum, the procedure described in subpara-
graph (A) shall require such a provider to meet
minimum acceptable levels of performance
based on verifiable program-specific perform-
ance information described in subsection (b)
and submitted to the State agency designated
under subsection (c), as required under para-
graphs (2) and (3) of subsection (c).
‘‘(b) PERFORMANCE INFORMATION.—
‘‘(1) REQUIRED
INFORMATION.—Pursuant to
subsection (c)(2), to be eligible to provide training
services under title III, a provider shall submit infor-
mation on—
‘‘(A) program completion rates for individ-
uals in the applicable program conducted by the
provider;
‘‘(B) the percentage of individuals in the
applicable program who obtain employment,
which may also include information specifying
the percentage of individuals who obtain em-
ployment in an occupation related to the pro-
gram conducted; and
‘‘(C) the earnings and placement of indi-
viduals who complete the program.
‘‘(2) ADDITIONAL
INFORMATION.—Subject to
paragraph (3), in addition to the performance infor-
mation described in paragraph (1), the Governor
may require that a provider described in this para-
graph submit such other performance information as
the Governor determines to be appropriate, which
may include information relating to—
‘‘(A) the retention in employment and the
subsequent earnings of the individuals who
complete the applicable program;
‘‘(B) where appropriate, the rates of licen-
sure or certification of individual who complete
the program;
‘‘(C) the percentage of individuals who
complete the program who attain industry-rec-
ognized occupational skills in the subject, occu-
pation, or industry for which training is pro-
vided, where applicable; and
‘‘(D) the adequacy of space, staff, equip-
ment, instructional materials, and student sup-
port services offered by the provider through a
program conducted by the provider.
‘‘(3) CONDITIONS.—
‘‘(A) IN
GENERAL.—If the Governor re-
quests additional information pursuant to para-
graph (2) that imposes extraordinary costs on
providers, the Governor shall provide access to
cost-effective methods for the collection of such
information or provide additional resources to
assist providers in the collecting such informa-
tion from funds made available under section
313(a).
‘‘(B) TRANSITION PERIOD FOR PERFORM-
ANCE-BASED
INFORMATION.—For 
program
years 1999 and 2000, the performance-based
information to be submitted by a provider
under this subsection shall only be required to
be provided relating to the performance of par-
ticipants assisted under title III in lieu of all in-
dividuals participating in the program of the
provider. Nothing in this subparagraph shall be
construed to prohibit the submission of per-
formance-based information for all individuals
participating in the program of the provider as
soon as is practicable prior to program year
2001 and each provider shall be encouraged to
submit such information.
‘‘(c) ADMINISTRATION.—
‘‘(1) DESIGNATION.—The Governor shall des-
ignate a State agency to collect and disseminate the
performance information described in subsection (b)
‘‘(ii) providers determined to be eligi-
ble by local workforce development boards,
subject to subsection (a)(3).
‘‘(B) 
AVAILABILITY.—The 
designated
State agency shall disseminate such lists and
information to the full service employment and
training delivery system and to local boards.
Such list and information shall be made widely
available to participants in employment and
training programs authorized under title III
and others through the full service employment
and training delivery system described in sec-
tion 123.
‘‘(d) ENFORCEMENT.—
‘‘(1) ACCURACY OF INFORMATION.—If the des-
ignated State agency determines that a provider or
individual supplying information on behalf of a pro-
vider intentionally supplies inaccurate information
under this section, the agency shall terminate the
eligibility of the eligible provider to receive funds de-
scribed in subsection (a) for a period of time, but
not less than 2 years, as prescribed in regulations is-
sued by the Governor.
‘‘(2) NON-COMPLIANCE.—If the designated
State agency, or the local workforce development
board working through the State agency, determines
that an eligible provider under subsection (a) sub-
stantially violates any requirement under this Act,
the agency may terminate the eligibility of such pro-
vider to receive funds described in subsection (a) for
such program or take such other action as the agen-
cy determines to be appropriate.
‘‘(3) NON-PERFORMANCE.—
‘‘(A) TERMINATION
FOR
NONPERFORM-
ANCE.—(i) If the designated State agency de-
termines that an eligible provider under sub-
section (a)(2) or a program of training services
carried out by an eligible provider under sub-
section (a)(2) substantially fails to meet for 2
or more consecutive years, performance criteria
established by the Governor, the agency may
terminate the eligibility of such provider.
‘‘(ii) If the designated State agency, or the
local workforce development board working
through the State agency, determines that an
eligible provider under subsection (a)(3) or a
program of training services carried out by such
an eligible provider fails to meet acceptable lev-
els of performance consistent with the proce-
dure established under subsection (a)(3), the
agency, or the local board through the State
agency, may terminate the eligibility of such
provider.
‘‘(B) FACTORS.—In establishing the per-
formance criteria described under subparagraph
(A)(i), the Governor shall—
‘‘(i) solicit and take into consideration
the recommendations of local workforce de-
velopment boards and providers of training
services within the State; and
‘‘(ii) take into consideration—
‘‘(I) the specific economic, geo-
graphic, and demographic factors in
the local areas in which eligible pro-
viders are located; and
‘‘(II) the characteristics of the
populations served by the eligible pro-
viders, including the demonstrated dif-
ficulties in serving such populations,
where applicable.
‘‘(4) ELIGIBILITY
UNDER
THE
HIGHER
EDU-
CATION ACT OF 1965.—If the designated State agen-
cy determines that the eligibility of an eligible pro-
vider described in subsection (a)(2) under title IV of
the Higher Education Act of 1965 has been termi-
nated, the agency—
‘‘(A) shall terminate the automatic eligi-
bility of the provider under subsection (a)(2);
and
‘‘(B) shall require the provider to meet the
requirements of subsection (a)(3) to be eligible
to receive funds as described in subsection (a).
‘‘(5) REPAYMENT.—A provider whose eligibility
is terminated under paragraph (1) or (2) for a pro-
gram shall be liable for repayment of all funds de-
scribed in subsection (a) received for the program
during any period of noncompliance described in
such paragraph.
‘‘(6) APPEAL.—The Governor shall establish a
procedure for an eligible provider to appeal a deter-
mination by the local board or the designated state
agency that results in the denial or termination of
eligibility under this subsection. Such procedure
shall provide an opportunity for a hearing and pre-
scribe appropriate time limits to ensure prompt reso-
lution of the appeal.
‘‘(e) ON-THE-JOB TRAINING EXCEPTION.—
‘‘(1) IN
GENERAL.—Providers of on-the-job
training shall not be subject to the requirements of
subsection (a), (b), (c), or (d).
‘‘(2) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—A full-service eligible provider in a
local workforce development area shall collect such
performance information from on-the-job training
providers as the Governor may require, and dissemi-
nate such information through the delivery of core
services described in section 123, as appropriate.’’.
Subtitle C—Program and Fiscal
Provisions
CHAPTER 1—GENERAL PROVISIONS
SEC. 121. GENERAL PROGRAM REQUIREMENTS.
(a) EMPLOYMENT AND TRAINING OPPORTUNITIES.—
Section 141(a) of the Job Training Partnership Act (29
U.S.C. 1551(a)) is amended—
(1) by striking ‘‘and shall make efforts’’ and all
that follows and inserting a period; and
(2) by adding at the end the following: ‘‘In ad-
dition, efforts shall be made to develop programs
which contribute to occupational development, up-
ward mobility, development of new careers, and over-
coming sex-stereotyping in occupations traditional
for the other sex.’’.
(b) RELOCATION.—Section 141(c) of such Act (29
U.S.C. 1551(c)) is amended to read as follows:
‘‘(c) RELOCATION.—
‘‘(1) PROHIBITION ON USE OF FUNDS TO EN-
COURAGE OR INDUCE RELOCATION.—No funds pro-
vided under title II, III, or IV shall be used or pro-
posed for use to encourage or induce the relocation,
of a business or part of a business, that results in
a loss of employment for any employee of such busi-
ness at the original location, if such original location
is within the United States.
‘‘(2) PROHIBITION ON USE OF FUNDS FOR CUS-
TOMIZED OR SKILL TRAINING AND RELATED ACTIVI-
TIES
AFTER
RELOCATION.—No funds provided
under title II, III, or IV for an employment and
training activity shall be used for customized or skill
training, on-the-job training, or company-specific as-
sessments of job applicants or employees, for any
business or part of a business, that has relocated,
until 120 days after the date on which such business
commences operations at the new location, if the re-
location of such business or part of a business, re-
sults in a loss of employment for any employee of
such business at the original location and such origi-
nal location is within the United States.
(e) PROHIBITION ON CERTAIN VOTES.—Subsection
(f) of section 141 of such Act (29 U.S.C. 1551(f)) is here-
by repealed.
(f) PAYMENTS
TO EMPLOYERS
FOR ON-THE-JOB
TRAINING.—Section 141(g) of such Act (29 U.S.C.
1551(g)) is amended—
(1) by striking paragraphs (1) through (3); and
(2) in paragraph (4)—
(A) by striking ‘‘(4)’’;
(B) by striking ‘‘In accordance with regu-
lations issued by the Secretary, on-the-job
training contracts’’ and inserting ‘‘On-the-job
training contracts’’; and
(C) by striking ‘‘with wages and employ-
ment benefits’’ and all that follows and insert-
ing a period.
(g) DUPLICATE FACILITIES OR SERVICES.—Section
141(h) of such Act (29 U.S.C. 1551(h)) is amended to
read as follows:
‘‘(h)(1) Upon the approval of the Governor, real prop-
erty in which, as of July 1, 1998, equity has resulted from
funds provided under title III of the Social Security Act,
section 903(c) of such Act (commonly referred to as the
‘Reed Act’), or the Wagner-Peyser Act (29 U.S.C. 49 et
seq.) may be used for the purposes of a full service employ-
ment and training delivery center.
‘‘(2) Unless otherwise provided in a plan approved
pursuant to section 101, subsequent to the commencement
of the use of the property described in paragraph (1) for
the purposes of a full service employment and training de-
livery center, funds provided under the provisions of law
described paragraph (1) may only be used to acquire fur-
ther equity in such property, or to pay operating and
maintenance expenses relating to such property in propor-
tion to the extent of the use of such property attributable
to the activities authorized under such provisions of law.’’.
(h) RESPONSIBILITIES OF ADMINISTRATIVE ENTI-
TIES.—Section 141(i) of such Act (29 U.S.C. 1551(i)) is
hereby repealed.
(i) PROHIBITION ON CERTAIN SUBSIDIZED EMPLOY-
MENT.—Section 141(k) of such Act (29 U.S.C. 1551(k))
is hereby repealed.
(k) 
CONSULTATION
REQUIREMENTS.—Section
141(n) of such Act (29 U.S.C 1551(n)) is amended—
(1) by striking ‘‘private industry councils’’ each
place it appears and inserting ‘‘local workforce devel-
opment boards’’;
(2) by striking ‘‘councils’’ and inserting
‘‘boards’’;
(3) by striking ‘‘service delivery area’’ each
place it appears and inserting ‘‘local workforce devel-
opment area’’; and
(4) by striking ‘‘this Act’’ each place it appears
and inserting ‘‘title II or title III’’.
(l) PROHIBITION ON USE OF FUNDS FOR PUBLIC
SERVICE EMPLOYMENT.—Section 141(p) of such Act (29
U.S.C 1551(p)) is amended—
(1) by striking ‘‘part B of this title or part A
or C of title II’’ and inserting ‘this Act’’; and
(2) by inserting at the end before the period the
following: ‘‘except as specifically authorized under
this Act’’.
(m) PROHIBITION ON USE OF FUNDS FOR CERTAIN
ECONOMIC ACTIVITIES.—Section 141(q) of such Act (29
U.S.C 1551(p)) is amended in the first sentence by insert-
ing at the end before the period the following: ‘‘which are
not directly related to training or related services for eligi-
ble individuals under this Act’’.
(n) PRIORITY FOR EXCESS PROPERTY OF THE DE-
PARTMENT OF DEFENSE.—Section 141(s) of such Act (29
U.S.C. 1551(s)) is hereby repealed.
(o) PROHIBITION ON ENTITLEMENT TO SERVICE.—
Section 141 of such Act (29 U.S.C. 1551) is amended by
adding at the end the following:
‘‘(s) PROHIBITION ON ENTITLEMENT TO SERVICE.—
Nothing in this Act shall be construed to provide an indi-
vidual with an entitlement to a service under this Act.’’.
SEC. 122. BENEFITS.
Section 142(a) of the Job Training Partnership Act
(29 U.S.C. 1552(a)) is amended—
(1) by striking all that precedes paragraph (4)
and inserting the following:
‘‘(a) WAGES.—
‘‘(1) IN
GENERAL.—Individuals in on-the-job
training or individuals employed in activities under
this Act shall be compensated at the same rates, in-
cluding periodic increases, as trainees or employees
who are similarly situated in similar occupations by
the same employer and who have similar training,
experience and skills, and such rates shall be in ac-
cordance 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. 206(a)(1)) or the applicable State or
local minimum wage law.’’; and
(2) by redesignating paragraph (4) as para-
graph (2)
SEC. 123. LABOR STANDARDS.
Section 143 of the Job Training Partnership Act (29
U.S.C. 1553) is amended to read as follows:
‘‘SEC. 143. LABOR STANDARDS.
‘‘(a) LIMITATIONS
ON ACTIVITIES THAT IMPACT
WAGES OF EMPLOYEES.—No funds provided under this
title shall be used to pay the wages of incumbent employ-
ees during their participation in economic development ac-
tivities provided through the statewide system.
‘‘(b) DISPLACEMENT.—
‘‘(1) PROHIBITION.—A participant in an activ-
ity authorized under title II, III, or IV of this Act
(referred to in this section as a ‘specified activity’)
shall not displace (including a partial displacement,
such as a reduction in the hours of nonovertime
work, wages, or employment benefits) any currently
employed employee (as of the date of the participa-
tion).
‘‘(2) PROHIBITION
ON
IMPAIRMENT
OF
CON-
TRACTS.—A specified activity shall not impair an ex-
isting contract for services or collective bargaining
agreement, and no such activity that would be incon-
sistent with the terms of a collective bargaining
agreement shall be undertaken without the written
concurrence of the labor organization and employer
concerned.
‘‘(d) OTHER PROHIBITIONS.—A participant in a
specified activity shall not be employed in a job—
‘‘(1) when any other individual is on layoff from
the same or any substantially equivalent job;
‘‘(2) when the employer has terminated the em-
ployment of any regular employee or otherwise re-
duced the workforce of the employer with the inten-
tion of filling the vacancy so created with the partic-
ipant; or
‘‘(3) which is created in a promotional line that
will infringe in any way upon the promotional oppor-
tunities of currently employed individuals.
‘‘(e) HEALTH
AND SAFETY.—Health and safety
standards established under Federal and State law other-
wise applicable to working conditions of employees shall
be equally applicable to working conditions of participants
engaged in specified activities. To the extent that a State
workers’ compensation law applies, workers’ compensation
shall be provided to participants on the same basis as the
compensation is provided to other individuals in the State
in similar employment.
‘‘(f) EMPLOYMENT CONDITIONS.—Individuals in on-
the-job training or individuals employed in activities under
this Act, shall 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.
‘‘(g) OPPORTUNITY TO SUBMIT COMMENTS.—Inter-
ested parties shall be provided an opportunity to submit
comments with respect to training programs proposed to
be funded under this Act.’’.
SEC. 124. GRIEVANCE PROCEDURE.
Section 144 of the Job Training Partnership Act (29
U.S.C. 1554) is amended to read as follows:
‘‘SEC. 144. GRIEVANCE PROCEDURE.
‘‘(a) IN GENERAL.—Each State receiving an allot-
ment under this Act shall establish and maintain a proce-
dure for grievances or complaints alleging violations of the
requirements of this Act from participants and other in-
terested or affected parties. Such procedure shall include
an opportunity for a hearing and be completed within 60
days of filing the compliant.
‘‘(b) INVESTIGATION.—
‘‘(1) IN GENERAL.—The Secretary shall inves-
tigate an allegation of a violation described in sub-
section (a) if—
‘‘(A) 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 to the Secretary; or
‘‘(B) a decision relating to such violation
has been reached within such 60 days and the
party to which such decision is adverse appeals
such decision to the Secretary.
‘‘(2) ADDITIONAL
REQUIREMENT.—The Sec-
retary shall make a final determination relating to
an appeal made under paragraph (1) no later than
120 days after receiving such appeal.
‘‘(c) REMEDIES.—Remedies shall be limited—
‘‘(1) to suspension or termination of payments
under this Act;
‘‘(2) to prohibition of placement of a partici-
pant with an employer that has violated any require-
ments under this Act;
‘‘(3) where applicable, to reinstatement of an
employee, payment of lost wages and benefits, and
reestablishment of other relevant terms, conditions
and privileges of employment; and
‘‘(4) where appropriate, to other equitable re-
lief.’’.
SEC. 125. IDENTIFICATION OF ADDITIONAL IMPOSED RE-
QUIREMENTS.
Section 124 of the Job Training Partnership Act (29
U.S.C. 1534) is amended—
(1) by redesignating such section as section 146
of such Act; and
(2) by inserting such section after section 145
of such Act.
SEC. 126. AUTHORITY OF STATE LEGISLATURE.
Section 126 of the Job Training Partnership Act (29
U.S.C. 1536) is amended—
(1) by redesignating such section as section 147
of such Act; and
(2) by inserting such section after section 146
of such Act.
SEC. 127. INTERSTATE AGREEMENTS.
Section 127 of the Job Training Partnership Act (29
U.S.C. 1537) is amended—
(1) by redesignating such section as section 148
of such Act; and
(2) by inserting such section after section 147
of such Act.
CHAPTER 2—PERFORMANCE
ACCOUNTABILITY PROVISIONS
SEC. 131. PERFORMANCE ACCOUNTABILITY PROVISIONS.
The Job Training Partnership Act (29 U.S.C. 1501
et seq.) is amended by inserting after part C of title I
of such Act the following:
‘‘SEC. 151. PERFORMANCE ACCOUNTABILITY SYSTEM.
‘‘In order to promote high levels of performance and
to ensure an appropriate return on the Nation’s invest-
ment in employment, training, and literacy programs, each
State receiving funds under this Act shall implement a
statewide performance accountability system that meets
the requirements of this subpart.
‘‘SEC. 152. INDICATORS OF PERFORMANCE.
‘‘(a) STATE BENCHMARKS.—
‘‘(1) IN GENERAL.—Each State receiving funds
under this Act shall identify indicators and related
levels of performance (hereinafter referred to as
‘State benchmarks’), for each of the programs estab-
lished under titles II, III, and V of this Act, to be
used to measure the State’s progress in meeting the
State long-term goals described in the State plan
under section 101. Such State benchmarks shall, at
a minimum—
‘‘(A) include the core indicators of per-
formance described in section 154;
‘‘(B) be expressed in an objective, quantifi-
able, and measurable form; and
‘‘(C) show the progress of the State to con-
tinuously improve in performance over the 3-
year period covered by the State plan.
‘‘(2) CUSTOMER
SATISFACTION.—Such State
benchmarks may also include post-program surveys
and other measures of customer satisfaction of both
employers and program participants.
‘‘(b) TECHNICAL DEFINITIONS
OF CORE INDICA-
TORS.—In order to ensure nationwide comparability of
performance data, the Secretary of Labor and the Sec-
retary of Education, in collaboration with the States, local-
ities, representatives of business and industry, employees,
employment and training service providers, State directors
of adult education, providers of adult education and lit-
eracy services, individuals with expertise in serving the
employment and training needs of disadvantaged youth,
participants, parents and other interested parties with ex-
pertise in the provision of employment, training, literacy,
and related services, shall promulgate definitions of each
of the core indicators of performance described in section
154, with the exception of the indicators described under
subsections (a)(6), (c)(1), and (c)(5) of such section, to
be used under this Act in measuring performance.
‘‘SEC. 153. STATE ADJUSTED BENCHMARKS.
‘‘(a) NEGOTIATION.—
‘‘(1) IN GENERAL.—In order to ensure an ade-
quate return on the investment of Federal funds in
employment, training, and literacy programs author-
ized under this Act, the appropriate Secretary is au-
thorized to negotiate with each State the levels of
performance expected to be achieved by such State
based upon the State’s benchmarks established pur-
suant to section 152(a)(1) (hereinafter referred to as
the ‘State adjusted benchmarks’), for the core indi-
cators of performance described in section 154 (ex-
cept for the indicators described under subsection
(a)(6), (c)(1), and (c)(5) of such section). Such ne-
gotiations shall take into account—
‘‘(A) whether the levels will enable each
State to attain the State goals;
‘‘(B) how the levels compare with the levels
established by other States, taking into consid-
eration the specific circumstances, including
economic circumstances, of each State;
‘‘(C) how the levels compare with the
model levels of performance identified pursuant
to subsection (c); and
‘‘(D) the extent to which such levels dem-
onstrate continuous improvement in perform-
ance by such State and ensure an adequate re-
turn on the investment of Federal funds.
‘‘(2) AUTHORITY
OF
GOVERNOR.—The Gov-
ernor of a State is authorized to carry out the nego-
tiation described in paragraph (1) for programs au-
thorized under titles II and III.
‘‘(3) AUTHORITY
OF
ELIGIBLE
STATE
AGEN-
CY.—The eligible State agency for adult education
and literacy programs is authorized to carry out the
negotiation described in paragraph (1) for programs
authorized under title V.
‘‘(b) LOCAL BENCHMARKS FOR EMPLOYMENT AND
TRAINING PROGRAMS.—Based on the expected levels of
performance established pursuant to subsection (a), each
State shall negotiate with the local workforce development
board and the chief local elected official in each local
workforce development area (consistent with section
122(d)(6)(A)) the levels of performance for each indicator
that are expected for such local workforce development
areas. Such levels of performance shall be known as ‘local
benchmarks’.
‘‘(c) MODEL LEVELS OF PERFORMANCE.—In order
to encourage high levels of performance and advance the
Nation’s competitiveness, the Secretary of Labor and the
Secretary of Education, in collaboration with the States,
localities, and with representatives of business and indus-
try, employees, employment and training service providers,
State directors of adult education, providers of adult edu-
cation and literacy services, individuals with expertise in
serving the employment and training needs of disadvan-
taged youth, participants, parents and other interested
parties with expertise in the provision of employment,
training, literacy, and related services, shall identify chal-
lenging model levels of performance (hereinafter referred
to as ‘model levels of performance’) with respect to the
core indicators of performance described in section 154,
with the exception of the indicators described under para-
graphs (a)(6) and (c)(1).
‘‘SEC. 154. CORE INDICATORS OF PERFORMANCE.
‘‘(a) COMMON CORE INDICATORS FOR ADULT PRO-
GRAMS.—The common core indicators of performance for
programs authorized under titles III and V of this Act
shall include measures of—
‘‘(1) placement in unsubsidized employment;
‘‘(2) retention in unsubsidized employment for
not less than 6 months and for not less than 12
months, respectively;
‘‘(3) increases in earnings or in earnings in
combination with employer-assisted benefits;
‘‘(4) reductions in welfare dependency;
‘‘(5) attainment of industry-recognized occupa-
tional skills;
‘‘(6) attainment of a high school diploma or a
general equivalency diploma; and
‘‘(7) such other measures of performance as the
State may wish to collect.
‘‘(b) ADDITIONAL CORE INDICATORS
FOR ADULT
EDUCATION AND LITERACY PROGRAMS.—In addition to
the common core indicators described in subsection (a),
the core indicators of performance for programs conducted
under title V shall include measures of—
‘‘(1) demonstrated improvements in State lit-
eracy and numeracy skill levels;
‘‘(2) placement in, retention in, or completion
of, post-secondary education, or training; and
‘‘(3) attainment of the literacy skills and knowl-
edge individuals need to be productive and respon-
sible citizens and to become more actively involved in
the education of their children.
‘‘(c) 
CORE
INDICATORS
FOR
DISADVANTAGED
YOUTH.—The core indicators of performance for pro-
grams conducted under title II shall include measures of—
‘‘(1) attainment of challenging State academic
proficiencies;
‘‘(2) attainment of secondary school diplomas
or general equivalency diplomas;
‘‘(3) attainment of industry-recognized work
readiness and occupational skills;
‘‘(4) placement in, retention in, and completion
of postsecondary education or advanced training, or
placement and retention in military service, employ-
ment, or qualified apprenticeships; and
‘‘(5) such other measures of performance as the
State may wish to collect.
‘‘(d) POPULATION INDICATORS.—
‘‘(1) ADULT EMPLOYMENT AND TRAINING PRO-
GRAMS.—The core indicators of performance for
programs conducted under title III, as provided
under subsection (a), shall include measures of the
success of individuals with multiple barriers to em-
ployment, including economically disadvantaged indi-
viduals (including welfare recipients), older workers,
and other individuals as determined by the State.
‘‘(2) ADULT EDUCATION AND LITERACY PRO-
GRAMS.—The core indicators of performance for
programs conducted under title V, as provided under
subsections (a) and (b), shall include measures of
the success of economically disadvantaged individ-
uals, individuals with limited literacy (as determined
by the eligible agency), and other individuals as de-
termined by the eligible agency.
‘‘(3) DISADVANTAGED YOUTH PROGRAMS.—The
core indicators of performance for programs con-
ducted under title II, as provided under subsection
(c), shall include measures of the success of hard to
serve youth, including individuals who are school
dropouts or whose educational attainment is one or
more grade levels below the grade level appropriate
to the age of the individual, and other individuals as
determined by the State.
‘‘SEC. 155. REPORT ON PERFORMANCE.
‘‘(a) IN GENERAL.—Each State that receives funds
under titles II, III, and V of this Act shall annually pre-
pare and submit to the Secretary of Labor and the Sec-
retary of Education (for consideration by the appropriate
Secretary) a report on the levels of performance achieved
by the State with respect to the State adjusted bench-
marks identified pursuant to section 153(a), and by each
local workforce development area with respect to the local
benchmarks identified pursuant to section 153(b) for pro-
grams authorized under title II and title III for each pro-
gram year. In preparing such report, the State may in-
clude information on such additional benchmarks as the
State may establish to meet the State goals.
‘‘(b) INFORMATION DISSEMINATION.—The Secretary
of Labor and the Secretary of Education—
‘‘(1) shall make the information contained in
such reports available to the general public through
publication and other appropriate methods;
‘‘(2) shall disseminate State-by-State compari-
sons of the information; and
‘‘(3) shall provide the appropriate congressional
committees with copies of such reports.
‘‘SEC. 156. INCENTIVE GRANTS AND SANCTIONS.
‘‘(a) INCENTIVE GRANTS.—
‘‘(1) AWARD OF GRANTS.—From amounts made
available under section 452 and section 502 for any
fiscal year, the Secretaries may award incentive
grants to States that—
‘‘(A) exceed, during the most recent 12-
month period for which data are available, the
adjusted State benchmarks described under sec-
tion 153(a);
‘‘(B) demonstrate continuing progress to-
ward exceeding, during the 3-year period cov-
ered by the State plan submitted under section
101, the adjusted State benchmarks described
under section 153(a); or
‘‘(C) demonstrate significant progress in
the coordination and integration of employment,
training, literacy, and other human resource
and workforce preparation programs within the
State, and demonstrate high performance in
such programs.
‘‘(2) TECHNICAL ASSISTANCE.—The Secretary,
upon request, shall provide technical assistance to
any State that does not qualify for receipt of an in-
centive grant under paragraph (1).
‘‘(3) USE OF FUNDS.—A State that receives an
incentive grant under paragraph (1) may use funds
made available under such grant only to carry out
employment, training, or literacy activities.
‘‘(b) SANCTIONS.—
‘‘(1) STATES.—
‘‘(A) TECHNICAL ASSISTANCE.—If a State
fails to meet expected levels of performance for
a program for any program year as established
pursuant to section 153(a), the Secretary of
Labor for programs established under title II
and title III, or the Secretary of Education for
programs established under title V, shall, upon
request, provide technical assistance, including
assistance in the development of a performance
improvement plan.
‘‘(B) 
REDUCTION
IN
AMOUNT
OF
GRANT.—If such failure continues for a second
consecutive year, the appropriate Secretary may
reduce by not more than 5 percent, the amount
of the grant that would (in the absence of this
paragraph) be payable to the State under such
program for the immediately succeeding pro-
gram year. Such penalty shall be based on the
degree of failure to meet adjusted levels of per-
formance.
‘‘(2) LOCAL AREAS.—
‘‘(A) TECHNICAL ASSISTANCE.—If a local
workforce development area, or other applicable
local administrative entity, fails to meet ex-
pected levels of performance for a program for
any program year under section 153(b), the
Governor, upon request to the Secretary, shall
provide technical assistance, including the devel-
opment of a performance improvement plan.
‘‘(B) CORRECTIVE ACTIONS.—
‘‘(i) IN
GENERAL.—If such failure
continues for a second consecutive year,
the Governor shall take corrective actions,
which may include development of a reor-
ganization plan through which the Gov-
ernor may require the appointment of a
new local board (consistent with the cri-
teria established under section 122(b)),
prohibit the use of designated service pro-
viders, require the redesignation of a local
administrative entity (in such case chosen
jointly by the Governor and the chief elect-
ed official in the local workforce develop-
ment area), or such other actions as the
Governor determines are appropriate, con-
sistent with State law, and the require-
ments of this subparagraph.
‘‘(ii) APPEAL BY WORKFORCE DEVEL-
OPMENT AREA.—A workforce development
area that is subject to a reorganization
plan under clause (i) may, not later than
30 days after receiving notice thereof, ap-
peal to the Secretary to rescind or revise
such plan. In such case, the Secretary shall
make a final decision not later than 45
days after the receipt of the appeal.
‘‘(iii) EFFECTIVE DATE.—The actions
taken by the Governor under clause (i)
shall not become effective until the time
the appeal has expired (consistent with
clause (ii)), or the Secretary has issued a
final decision.’’.
CHAPTER 3—OTHER PROVISIONS
SEC. 141. PROMPT ALLOCATION OF FUNDS.
Section 162 of the Job Training Partnership Act (29
U.S.C. 1572) is amended—
(1) in the second sentence of subsection (a), by
striking ‘‘1980 Census or later data’’ and inserting
‘‘the most recent satisfactory data from the Bureau
of the Census’’; and
(2) by striking subsection (f).
SEC. 142. FISCAL CONTROLS; SANCTIONS.
(a) ESTABLISHMENT
OF
FISCAL
CONTROLS
BY
STATES.—Section 164(a) of the Job Training Partnership
Act (29 U.S.C. 1574(a)) is amended—
(1) in paragraph (2)(C), by striking ‘‘except as
specifically provided by this Act’’ and inserting ‘‘,
and procurement transactions between workforce de-
velopment boards and such governments shall be
conducted only on a cost-reimbursable basis’’;
(2) in paragraph (3), by striking the second
sentence and all that follows;
(3) in paragraph (4), by striking ‘‘service deliv-
ery 
area 
and 
substate 
area’’ 
and 
inserting
‘‘workforce development area’’;
(4) in paragraph (5), by striking ‘‘service deliv-
ery area or substate area’’ and inserting ‘‘workforce
development area’’; and
(5) by striking paragraph (8).
(b) SANCTIONS.—Section 164(b) of such Act (29
U.S.C. 1574(b)) is amended—
(1) in paragraph (1)—
(A) in the matter preceding subparagraph
(A)—
(i) by striking ‘‘provision of’’ and in-
serting ‘‘requirement under’’; and
(ii) by striking ‘‘or the regulations
under this Act’’;
(B) in subparagraph (A), by inserting
‘‘local’’ before ‘‘plan’’; and
(C) in subparagraph (B)—
(i) in clause (i), by striking ‘‘private
industry council’’ and inserting ‘‘workforce
development board’’;
(ii) in clause (iii), by striking ‘‘service
delivery’’ and inserting ‘‘workforce develop-
ment’’; and
(iii) in clause (iv), by striking ‘‘service
delivery’’ each place it appears and insert-
ing ‘‘workforce development’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) in the matter preceding clause
(i)—
(I) 
by 
striking 
‘‘paragraph
(1)(A)’’ and inserting ‘‘subparagraphs
(A) and (B) of paragraph (1)’’; and
(II) by striking ‘‘under the same
terms and conditions as the dis-
approval of the plan’’; and
(ii) in clause (i), by inserting ‘‘the’’
before ‘‘appeal’’; and
(B) in subparagraph (B)—
(i) by striking ‘‘The actions’’ and all
that follows through ‘‘, who’’ and inserting
‘‘The Secretary’’; and
(ii) by striking ‘‘60’’ and inserting
‘‘45’’.
(c) EVALUATION
BY COMPTROLLER GENERAL
OF
THE UNITED STATES.—Subsection (c) of section 164 of
such Act (29 U.S.C. 1574(c)) is hereby repealed.
(d) REPAYMENT
OF MISEXPENDITURES
TO
THE
UNITED STATES.—Subsection (d) of section 164 of such
Act (29 U.S.C. 1574(d)) is amended to read as follows:
‘‘(d) REPAYMENT OF CERTAIN AMOUNTS TO THE
UNITED STATES.—
‘‘(1) IN
GENERAL.—Every recipient of funds
under titles II and III of this Act shall repay to the
United States amounts found not to have been ex-
pended in accordance with this Act.
‘‘(2) OFFSET OF REPAYMENT.—If the Secretary
determines that a State has expended funds made
available under this Act in a manner contrary to the
requirements of this Act, the Secretary may offset
repayment of such expenditures against any other
amount to which the State is or may be entitled to,
except 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 re-
cipient or a subgrantee of such recipient in a local
workforce development area of the State has ex-
pended funds contrary to the requirements of this
Act, 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
described in paragraph (3) from subsequent pro-
gram year allocations to the local workforce develop-
ment area from funds reserved for the administra-
tive costs of such local programs under title II or
title III, as appropriate.
‘‘(5) LIMITATIONS.—A deduction made by a
State as described under paragraph (4) shall not be
made until such time as the Governor has taken ap-
propriate corrective action to ensure full compliance
within such local workforce development area with
regard to appropriate expenditures of funds under
this Act.’’.
(e) REPAYMENT
OF CERTAIN AMOUNTS
TO
THE
UNITED STATES.—Subsection (e) of section 164 of such
Act (29 U.S.C. 1574(e)) is amended—
(1) in paragraph (1)—
(A) in the first sentence—
(i) by inserting ‘‘by the Secretary’’
after ‘‘upon a determination’’;
(ii) by striking ‘‘or failure’’ and in-
serting ‘‘failure’’; and
(iii) by inserting before the period at
the end the following: ‘‘, or a pattern of
failure with respect to paragraphs (2) and
(3) of subsection (d); and
(B) in the second sentence—
(i) by inserting ‘‘under this subsection
or subsection (d)’’ after ‘‘shall be made’’;
and
(ii) by inserting before the period at
the end the following: ‘‘has been given to
the recipient’’; and
(2) in paragraph (3), by striking the second
sentence.
(f) REMEDIES CONSTRUED
AS EXCLUSIVE REM-
EDIES.—Subsection (h) of section 164 of such Act (29
U.S.C. 1574(h)) is hereby repealed.
SEC. 143. REPORTS; RECORDKEEPING; INVESTIGATIONS.
Section 165 of the Job Training Partnership Act (29
U.S.C. 1575) is amended by striking subsection (h).
SEC. 144. ADMINISTRATIVE ADJUDICATION.
Section 166(a) of the Job Training Partnership Act
(29 U.S.C. 1576(a)) is amended by striking the last sen-
tence.
SEC. 145. NONDISCRIMINATION.
Section 167 of the Job Training Partnership Act (29
U.S.C. 1577) is amended to read as follows:
‘‘SEC. 167. NONDISCRIMINATION.
‘‘(a) EFFECT ON OTHER LAWS.—Nothing in this Act
shall be construed to modify or affect any Federal or State
law prohibiting discrimination on the basis of race, color,
religion, sex, national origin, age, or disability.
‘‘(b) NONDISCRIMINATION.—No individual may be
discriminated against with respect to participation in spec-
ified activities because of race, color, religion, sex, national
origin, age, or disability, consistent with other applicable
laws.’’.
SEC. 146. JUDICIAL REVIEW.
Section 168 of the Job Training Partnership Act (29
U.S.C. 1578) is hereby repealed.
SEC. 147. ADMINISTRATIVE PROVISIONS.
Section 169 of the Job Training Partnership Act (29
U.S.C. 1579) is amended—
(1) in the first sentence of subsection (a), by
striking ‘‘such rules and regulations’’ and all that
follows and inserting ‘‘rules and regulations only to
the extent necessary to administer and ensure com-
pliance with the specific requirements of this Act.’’;
and
(2) by striking subsection (e).
SEC. 148. PRESIDENTIAL AWARDS FOR OUTSTANDING PRI-
VATE SECTOR INVOLVEMENT IN JOB TRAIN-
ING PROGRAMS.
Section 172 of the Job Training Partnership Act (29
U.S.C. 1582) is hereby repealed.
SEC. 149. CONSTRUCTION.
Section 173 of the Job Training Partnership Act (29
U.S.C. 1583) is hereby repealed.
SEC. 150. LIMITATION ON CERTAIN COSTS.
Part D of the Job Training Partnership Act (29
U.S.C. 1571 et seq.), as amended by this Act, is further
amended by adding at the end the following:
‘‘SEC. 172. LIMITATION ON CERTAIN COSTS.
‘‘(a) IN GENERAL.—The Secretary, after consulta-
tion with the Inspector General of the Department of
Labor and the Comptroller General of the United States,
shall develop regulations that define ‘administrative costs’
for purposes of programs under titles II and III. Such def-
inition shall reflect generally accepted accounting prin-
ciples.
‘‘(b) LIMITATION.—
‘‘(1) IN GENERAL.—Of the amounts allocated
to local workforce development areas for a program
year under titles II and III, not more that 10 per-
cent of such amounts may be expended for adminis-
trative costs.
‘‘(2) DEFINITION.—For purposes of paragraph
(1), the term ‘allocated’ means allocated for a pro-
gram year, as adjusted for reallocations and reallot-
ments and for transfers of funds in accordance with
this Act.’’.
Subtitle D—Miscellaneous
Provisions
SEC. 161. CRIMINAL PROVISIONS.
(a) IN GENERAL.—Section 182 of the Job Training
Partnership Act is hereby repealed.
(b) SAVINGS PROVISION.—The repeal of section 182
of such Act made by subsection (a) does not affect in any
way the amendment made by such section 182.
SEC. 162. REFERENCE.
Section 183 of the Job Training Partnership Act (29
U.S.C. 1592) is amended to read as follows:
‘‘SEC. 183. REFERENCE.
‘‘Effective on the date of the enactment of the Em-
ployment, Training, and Literacy Enhancement Act of
1997, all references in any other provision of law (other
than section 665 of title 18, United States Code) to the
Comprehensive Employment and Training Act, or to the
Job Training Partnership Act, as the case may be, shall
be deemed to refer to Employment, Training, and Literacy
Enhancement Act.’’.
SEC. 163. REPEALERS.
(a) IN GENERAL.—Section 184 of the Job Training
Partnership Act (29 U.S.C. 801 et seq.) is hereby re-
pealed.
100
(b) SAVINGS PROVISION.—The repeal of section 184
of such Act made by subsection (a) does not affect in any
way the repealers made by such section 184.
TITLE II—AMENDMENTS TO EM-
PLOYMENT 
AND 
TRAINING
PROGRAMS FOR DISADVAN-
TAGED YOUTH
SEC. 201. ADULT TRAINING PROGRAM.
Title II of the Job Training Partnership Act (29
U.S.C. 1601 et seq.) is amended by striking part A of
such title.
SEC. 202. SUMMER YOUTH EMPLOYMENT AND TRAINING
PROGRAM.
Title II of the Job Training Partnership Act (29
U.S.C. 1601 et seq.) is amended by striking part B of
such title.
SEC. 203. DISADVANTAGED YOUTH EMPLOYMENT AND
TRAINING OPPORTUNITIES GRANTS.
(a) AUTHORIZATION.—Title II of the Job Training
Partnership Act (29 U.S.C. 1601 et seq.), as amended by
this Act, is further amended—
(1) in the heading to read as follows:
101
‘‘TITLE 
II—DISADVANTAGED
YOUTH 
EMPLOYMENT 
AND
TRAINING 
OPPORTUNITIES
GRANTS’’;
(2) by striking the heading for part C of such
title;
(3) by redesignating section 261 as section 201;
and
(4) by inserting after section 201 (as redesig-
nated) the following:
‘‘SEC. 202. AUTHORIZATION.
‘‘(a) IN GENERAL.—In the case of each State that
in accordance with the requirements of sections 101 and
102 submits to the Secretary of Labor (hereinafter in this
title referred to as the ‘Secretary’) a State plan, the Sec-
retary shall provide a grant to the State for the purpose
of providing employment, job training, educational, and
related assistance for disadvantaged youth in the State.
‘‘(b) AMOUNT.—The grant shall consist of the allot-
ment determined for the State under section 203.’’.
(b) 
ALLOTMENT
AND
ALLOCATION
AMONG
STATES.—Title II of the Job Training Partnership Act
(29 U.S.C. 1601 et seq.), as amended by this Act, is fur-
ther amended—
102
(1) by redesignating section 262 as section 203;
and
(2) in section 203 (as redesignated)—
(A) in the heading to read as follows:
‘‘SEC. 203. ALLOTMENT AND ALLOCATION AMONG STATES.’’;
(B) by striking subsections (b) and (c);
(C) by redesignating subsections (a) and
(d) as subsections (b) and (c), respectively;
(D) by inserting before subsection (b) (as
redesignated) the following:
‘‘(a) IN GENERAL.—Of the amount appropriated pur-
suant to section 3(a)(1) to carry out this title for a fiscal
year, the Secretary shall allot such amount in accordance
with subsection (b).’’;
(E) in subsection (b) (as redesignated)—
(i) in the heading to read as follows:
‘‘(b) ALLOTMENT AMONG STATES.—’’;
(ii) in paragraph (1) to read as fol-
lows:
‘‘(1) OUTLYING AREAS.—
‘‘(A) IN GENERAL.—From the amount ap-
propriated for any fiscal year to carry out this
title, the Secretary shall reserve not more than
one quarter of one percent to provide assistance
to the outlying areas and, for each of the fiscal
103
years 1998 through 2001, the freely associated
states, except that the amount reserved for the
freely associated states for any such fiscal year
shall not exceed the amount received by such
states for fiscal year 1997 from amounts re-
served under section 262(a)(1) of the Job
Training 
Partnership 
Act 
(29 
U.S.C.
1642(a)(1)) (as such section was in effect on
the day before the date of the enactment of
Employment, Training, and Literacy Enhance-
ment Act of 1997).
‘‘(B) LIMITATION
FOR
FREELY
ASSOCI-
ATED STATES.—
‘‘(i) COMPETITIVE
GRANTS.—Using
funds allotted for the freely associated
states under subparagraph (A), the Sec-
retary shall award grants to Guam, Amer-
ican Samoa, the Commonwealth of the
Northern Mariana Islands, and the freely
associated states to carry out the purposes
of this title.
‘‘(ii) AWARD
BASIS.—The Secretary
shall award grants pursuant to clause (i)
on a competitive basis and pursuant to the
recommendations of experts in the field of
104
employment and training, working through
the Pacific Region Educational Laboratory
in Honolulu, Hawaii.
‘‘(iii) ASSISTANCE REQUIREMENTS.—
A freely associated state that desires to re-
ceive amounts under this title shall include
in its application for assistance—
‘‘(I) information demonstrating
that it will meet all conditions that
apply to States under this title;
‘‘(II) an assurance that, notwith-
standing any other provision of this
title, it will use such amounts only for
the direct provision of services; and
‘‘(III) such other information and
assurances as the Secretary may re-
quire.
‘‘(iv) 
TERMINATION
OF
ELIGI-
BILITY.—Notwithstanding any other provi-
sion of law, the freely associated states
shall not receive any funds under this title
for any program year that begins after
September 30, 2001.
‘‘(v) ADMINISTRATIVE
COSTS.—The
Secretary may provide not more than 5
105
percent of the amount made available for
grants under this subparagraph to pay the
administrative costs of the Pacific Region
Educational Laboratory in Honolulu, Ha-
waii, regarding activities assisted under
this section.
‘‘(C) ADDITIONAL
REQUIREMENT.—The
provisions of Public Law 95–134, permitting
the consolidation of grants by the outlying
areas, shall not apply to funds provided to those
areas or to the freely associated states under
this section.
‘‘(D) DEFINITION.—For purposes of this
paragraph, the term ‘freely associated states’
means the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Repub-
lic of Palau.’’; and
(iii) in paragraph (2)—
(I) by inserting after the heading
the following:
‘‘(A) IN GENERAL.—’’;
(II) by striking ‘‘82 percent of
the remainder’’ and all that follows
and inserting the following: ‘‘the re-
maining amount to the States pursu-
106
ant to the formula contained in sub-
paragraph (B).’’; and
(III) by adding at the end the
following:
‘‘(B) FORMULA.—Subject to the provisions
of subparagraphs (C) and (D) of the amounts
allotted to States for this title for each fiscal
year—
‘‘(i) 331⁄3 percent shall be allotted on
the basis of the relative number of unem-
ployed individuals residing in areas of sub-
stantial unemployment within each State
as compared to the total number of such
unemployed individuals in all such areas of
substantial unemployment in all States;
‘‘(ii) 331⁄3 percent shall be allotted on
the basis of the relative excess number of
unemployed individuals who reside in each
State as compared to the total excess num-
ber of unemployed individuals in all States;
and
‘‘(iii) 331⁄3 percent shall be allotted on
the basis of the relative number of eco-
nomically disadvantaged youth within each
State as compared to the total number of
107
economically disadvantaged youth in all
States.
‘‘(C) MINIMUM ALLOTMENT.—
‘‘(i) 
MINIMUM
PERCENTAGE.—No
State shall be allotted less than 90 percent
of its allotment percentage for the fiscal
year preceding the fiscal year for which the
determination is made.
‘‘(ii) 
MAXIMUM
PERCENTAGE.—No
State shall be allotted more than 130 per-
cent of its allotment percentage for the fis-
cal year preceding the fiscal year for which
the determination is made.
‘‘(D) SMALL
STATE
MINIMUM
ALLOT-
MENT.—No State shall receive less than one-
quarter of one percent of the amount available
under this title for a fiscal year. Amounts nec-
essary for increasing such payments to States
to comply with the preceding sentence shall be
obtained by ratably reducing the amounts to be
paid to other States.’’; and
(F) in subsection (c)(1)(A) (as redesig-
nated)—
(i) in the heading, by striking ‘‘ECO-
NOMICALLY’’; and
108
(ii) in the matter preceding clause (i),
by striking ‘‘economically’’.
(c) ALLOCATION WITHIN STATES.—Title II of the
Job Training Partnership Act (29 U.S.C. 1601 et seq.),
as amended by this Act, is further amended by inserting
after section 203 the following:
‘‘SEC. 204. ALLOCATION WITHIN STATES.
‘‘(a) RESERVATION FOR STATE ACTIVITIES.—
‘‘(1) IN GENERAL.—The Governor of the State
shall reserve not more than 15 percent of the
amount allotted to the State under section 212(b)
for a fiscal year to carry out the activities described
in this subsection.
‘‘(2) REQUIRED
ACTIVITIES.—Such activities
shall include the provision of additional assistance to
areas that have high concentrations of disadvan-
taged youth to carry out the activities described in
section 206.
‘‘(3) DISCRETIONARY ACTIVITIES.—Such activi-
ties may include—
‘‘(A) subject to paragraph (4), administra-
tion by the State of programs under this title;
‘‘(B) capacity building and technical assist-
ance to local workforce development areas and
to providers of disadvantaged youth services as
109
authorized under this title, including the devel-
opment and training of staff, members of local
workforce development boards, and employers
and workplace mentors providing training
through programs authorized under this title;
‘‘(C) incentives for program coordination
and integration, performance awards, and re-
search and demonstrations;
‘‘(D) implementation of innovative dis-
advantaged youth employment and training pro-
grams, 
pilot 
projects, 
and 
demonstration
projects which further the purposes of this title;
and
‘‘(E) support for a common management
information system across employment, train-
ing, literacy, and human resource programs as
identified in section 103.
‘‘(4) LIMITATION.—Of the amount reserved by
the Governor under paragraph (1), not more than 5
percent of the total amount allotted to the State
under section 203(b) may be used for administration
by the State of programs under this title.
‘‘(b) WITHIN STATE ALLOCATION.—
‘‘(1) IN GENERAL.—The Governor of the State
shall allocate the remainder of the amount allotted
110
to the State under section 203(b) to workforce devel-
opment areas designated under section 121, for the
purpose of providing services for disadvantaged
youth in accordance with section 206.
‘‘(2) WITHIN STATE FORMULA.—
‘‘(A) 
ESTABLISHMENT.—The 
Governor,
through the collaborative process under section
102, and after consultation with local chief
elected officials in the local workforce develop-
ment area, shall develop a formula for the allo-
cation of the remainder of funds described in
paragraph (1) to workforce development areas,
taking into account—
‘‘(i) the relative number of unem-
ployed individuals residing in areas of sub-
stantial unemployment within each local
workforce development area, as compared
to the total number of such unemployed in-
dividuals residing within the State;
‘‘(ii) the relative number of disadvan-
taged youth residing within each local
workforce development area as compared
to the total number of disadvantaged youth
residing within the State;
111
‘‘(iii) the relative excess number of
unemployed individuals who reside within
each local workforce development area as
compared to the total excess number of un-
employed individuals residing withing the
State; and
‘‘(iv) such additional factors as are
determined appropriate by the State.
‘‘(B) ADDITIONAL FACTORS.—In establish-
ing such formula, the Governor shall ensure
that—
‘‘(i) funds are distributed equitably
throughout the State;
‘‘(ii) factors described in subpara-
graph (A) do not receive disproportionate
weighting; and
‘‘(iii) such formula protects local
workforce development areas from signifi-
cant funding shifts from year to year.’’.
(d) ELIGIBILITY FOR SERVICES.—Title II of the Job
Training Partnership Act (29 U.S.C. 1601 et seq.), as
amended by this Act, is further amended—
(1) by redesignating section 263 as section 205;
and
(2) in section 205 (as redesignated)—
112
(A) in subsection (a)—
(i) in the heading to read as follows:
‘‘(a) IN GENERAL.—’’;
(ii) in the matter preceding paragraph
(1)—
(I) by striking ‘‘subsections (e)
and (g)’’ and inserting ‘‘subsection
(c)’’;
(II) by striking ‘‘who is in
school’’; and
(III) by striking ‘‘part’’ and in-
serting ‘‘title’’; and
(iii) in paragraph (1)(B) to read as
follows:
‘‘(B) if provided in the local plan developed pur-
suant to section 122(d)(1), is age 14 through 24;
and’’;
(B) in subsection (b)—
(i) by amending the heading to read
as follows:
‘‘(b) PRIORITY FOR SERVICE.—’’;
(ii) by redesignating paragraphs (1)
through (7) as subparagraphs (B) through
(H), respectively, and moving the margin
113
for each such subparagraph two ems to the
right;
(iii) by inserting before subparagraph
(B) (as redesignated) the following:
‘‘(A) Individuals who are school drop-
outs.’’;
(iv) in subparagraph (H) (as redesig-
nated) to read as follows:
‘‘(H) Other disadvantaged youth who face
serious barriers to employment as identified by
the local workforce development area.’’; and
(v) by amending the matter preceding
subparagraph (A) (as added by clause (iii))
to read as follows:
‘‘(1) PRIORITY.—Of the disadvantaged youth
described in subsection (a), priority for service shall
be given to school dropouts and to other hard-to-
serve youth.
‘‘(2) DEFINITION.—For the purposes of this
title, the term ‘hard-to-serve youth’ includes—’’;
(C) by striking subsections (c), (d), (f),
(g), and (h);
(D) by redesignating subsection (e) as sub-
section (c); and
(E) in subsection (c) (as redesignated)—
114
(i) by striking ‘‘subsection (a)(2) or
(c)(2)’’ and inserting ‘‘subsection (a)’’; and
(ii) by striking ‘‘of individuals who
face’’ and all that follows and inserting
‘‘described in subparagraphs (A) through
(G) of subsection (b)(2).’’.
(e) USE OF FUNDS.—Title II of the Job Training
Partnership Act (29 U.S.C. 1601 et seq.), as amended by
this Act, is further amended—
(1) by redesignating section 264 as section 206;
(2) in section 206 (as redesignated)—
(A) by striking subsection (a);
(B) by redesignating subsections (b), (c),
and (d) as subsections (a), (b), and (c), respec-
tively;
(C) in subsection (a) (as redesignated)—
(i) in the heading to read as follows:
‘‘(a) PROGRAM DESIGN.—’’;
(ii) in paragraph (1)—
(I) in the heading to read as fol-
lows:
‘‘(1) ESSENTIAL ELEMENTS.—’’;
(II) in the matter preceding sub-
paragraph (A)—
115
(aa) by striking ‘‘part’’ and
inserting ‘‘title’’; and
(bb) by striking ‘‘include’’;
(III) in subparagraph (A)—
(aa) by inserting ‘‘provide’’
after ‘‘(A)’’;
(bb) by striking ‘‘skill levels
and service needs’’ and inserting
‘‘academic levels, skill levels, and
service needs’’; and
(cc) by striking ‘‘and sup-
portive service needs’’ and insert-
ing ‘‘supportive service needs,
and developmental needs of such
participants’’;
(IV) in subparagraph (B)—
(aa) by striking ‘‘develop-
ment’’ and inserting ‘‘develop’’;
(bb) by inserting ‘‘for each
participant’’ after ‘‘of service
strategies’’; and
(V) by amending subparagraphs
(C) and (D) to read as follows:
‘‘(C) integrate academic, occupational, and
work-based learning opportunities;
116
‘‘(D) provide comprehensive guidance and
counseling;
‘‘(E) provide postsecondary educational or
training opportunities, where appropriate;
‘‘(F) involve employers and parents in the
design and implementation of programs; and
‘‘(G) provide adult mentoring.’’;
(iii) in paragraph (2)—
(I) in subparagraph (A)—
(aa) in the matter preceding
clause (i), by striking ‘‘service de-
livery’’ and inserting ‘‘workforce
development’’; and
(bb) in clause (i), by striking
‘‘service delivery’’ and inserting
‘‘workforce development’’; and
(II) in subparagraph (B)—
(aa) in clause (i), by striking
‘‘(i)’’; and
(bb) by striking clause (ii);
(D) in subsection (b) (as redesignated)—
(i) in the matter preceding paragraph
(1), by striking ‘‘part’’ and inserting
‘‘title’’;
(ii) in paragraph (1)—
117
(I) in subparagraph (A), by strik-
ing ‘‘section 204(b)(1)’’ and inserting
‘‘section 314(c)(4)’’;
(II) in subparagraph (C), by
striking ‘‘section 141(o)(1)’’ and in-
serting ‘‘section 141(11)(A)’’;
(III) in subparagraph (F), by in-
serting after ‘‘(F)’’ the following:
‘‘paid and unpaid work experience, in-
cluding summer employment opportu-
nities that are directly linked to aca-
demic, occupational, and workbased
learning opportunities, which may in-
clude’’;
(IV) in subparagraph (G)—
(aa) by striking ‘‘in public
agencies, nonprofit agencies, and
other appropriate agencies, insti-
tutions, and organizations’’; and
(bb) by adding ‘‘and’’ at the
end;
(V) by amending subparagraph
(H) to read as follows:
‘‘(H) such other training and transition
services that assist disadvantaged youth in
118
making the transition to employment or to post-
secondary education or training, as determined
appropriate by the local workforce development
area.’’; and
(VI) by striking subparagraphs
(I) through (L); and
(iii) in paragraph (2)—
(I) in subparagraph (A) to read
as follows:
‘‘(A) assessment, outreach, staff develop-
ment, job development, and job search assist-
ance activities;’’;
(II) in subparagraph (C), by
striking ‘‘and’’ at the end;
(III) in subparagraph (D)—
(aa) by striking ‘‘cash’’; and
(bb) by striking the period
at the end and inserting ‘‘; and’’;
and
(IV) by adding at the end the fol-
lowing:
‘‘(E) peer-centered activities encouraging
responsibility and other positive social behaviors
during non-school hours.’’;
(E) in subsection (c) (as redesignated)—
119
(i) in paragraph (1)—
(I) by striking ‘‘service delivery’’
and inserting ‘‘workforce develop-
ment’’;
(II) by striking ‘‘private industry
council’’ and inserting ‘‘local board’’;
and
(III) by striking ‘‘section 453(c)’’
and inserting ‘‘part D of title IV’’;
(ii) in clauses (i) through (iii) of para-
graph (2)(B), by striking ‘‘service delivery’’
each 
place 
it 
occurs 
and 
inserting
‘‘workforce development’’;
(iii) in paragraph (3)—
(I) in subparagraph (A)—
(aa) in the heading to read
as follows:
‘‘(A) WORK-RELATED ACTIVITIES.—’’;
(bb) in the first sentence, by
inserting after ‘‘work maturity
skills training’’ the following: ‘‘,
summer employment, job search
assistance, job club activities, and
other work-related activities’’;
120
(cc) in the first sentence, by
striking ‘‘part’’ and inserting
‘‘title’’;
(dd) in the first sentence, by
striking ‘‘by either work experi-
ence or other additional services’’
and inserting ‘‘by occupational
and academic learning opportuni-
ties’’;
(ee) in the first sentence, by
striking ‘‘basic education or occu-
pational skills’’ and inserting
‘‘basic education and occupa-
tional skills’’; and
(ff) in the second sentence,
by striking ‘‘, including the Job
Corps’’;
(II) by striking subparagraph
(B);
(III) by redesignating subpara-
graph (C) as subparagraph (B); and
(IV) in subparagraph (B) (as re-
designated)—
(aa) by striking clause (i);
121
(bb) by redesignating clause
(ii) as clause (i);
(cc) in clause (i) (as redesig-
nated), by striking ‘‘part’’ and
inserting ‘‘title’’; and
(dd) by redesignating clause
(iii) as clause (ii)
(iv) in paragraph (5)—
(I) in the heading, by striking
‘‘COUNSELING’’ and inserting ‘‘FOL-
LOW-UP, COUNSELING’’;
(II) by striking ‘‘part’’ and in-
serting ‘‘title’’; and
(III) by striking ‘‘for a period of
up to 1 year’’;
(v) by striking paragraph (6);
(vi) in paragraph (7), by striking
‘‘service delivery’’ and inserting ‘‘workforce
development’’ and
(vii) by redesignating paragraph (7)
as paragraph (6).
(f) SELECTION OF SERVICE PROVIDERS.—Title II of
the Job Training Partnership Act (29 U.S.C. 1601 et
seq.), as amended by this Act, is further amended by add-
ing after section 206 (as redesignated), the following:
122
‘‘SEC. 207. SELECTION OF SERVICE PROVIDERS.
‘‘From funds made available under section 204(b) to
a local workforce development area, the local board for
such local area shall award grants, on a competitive basis,
to eligible providers to carry out the disadvantaged youth
programs described in section 206.’’.
(g) EDUCATIONAL LINKAGES.—Title II of the Job
Training Partnership Act (29 U.S.C. 1601 et seq.), as
amended by this Act, is further amended—
(1) by redesignating section 265 as section 208;
(2) in section 208 (as redesignated)—
(A) in subsection (a), by striking ‘‘service
delivery’’ and inserting ‘‘workforce develop-
ment’’;
(B) in subsection (b)—
(i) in the matter preceding paragraph
(1), by striking ‘‘service delivery’’ and in-
serting ‘‘workforce development’’; and
(ii) in paragraph (6) to read as fol-
lows:
‘‘(6) title I of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996;’’;
(C) in subsection (c)—
(i) in the first sentence, by striking
‘‘service delivery’’ and inserting ‘‘workforce
development’’; and
123
(ii) in the second sentence, by striking
‘‘, including programs conducted under
part A’’; and
(D) by striking subsection (d).
(h) TRANSFER
OF FUNDS.—Title II of the Job
Training Partnership Act (29 U.S.C. 1601 et seq.), as
amended by this Act, is further amended by striking sec-
tion 266.
TITLE III—AMENDMENTS TO EM-
PLOYMENT 
AND 
TRAINING
PROGRAMS FOR ADULTS
SEC. 301. ADULT EMPLOYMENT AND TRAINING OPPORTU-
NITIES GRANTS.
Title III of the Job Training Partnership Act (29
U.S.C. 1651 et seq.) is amended to read as follows:
‘‘TITLE 
III—ADULT 
EMPLOY-
MENT AND TRAINING OPPOR-
TUNITIES GRANTS
‘‘SEC. 301. PURPOSE.
‘‘The purpose of this title is to establish a high-qual-
ity, efficient system of employment, job training, and re-
lated assistance that—
‘‘(1) provides individuals with choice in the se-
lection of employment and training options that will
124
facilitate the transition of such individuals into pro-
ductive, high skills, private sector jobs;
‘‘(2) provides quality training of such individ-
uals for the 21st century; and
‘‘(3) drives resources and authority to States
and local communities for the design of job training
programs.
‘‘PART A—ADULT EMPLOYMENT AND TRAINING
OPPORTUNITIES GRANTS
‘‘SEC. 311. AUTHORIZATION.
‘‘(a) IN GENERAL.—In the case of each State that
in accordance with the requirements of sections 101 and
102 submits to the Secretary of Labor (hereinafter in this
title referred to as the ‘Secretary’) a State plan, the Sec-
retary shall provide funds to the State for the purpose of
providing employment, job training, and related assistance
for adults in the State, in accordance with this title.
‘‘(b) AMOUNT.—The funds described in subsection
(a) shall consist of the allotments determined for the State
under section 312.
‘‘SEC. 312. ALLOTMENT AMONG STATES.
‘‘(a) IN GENERAL.—Of the amount appropriated pur-
suant to section 3(a)(2) to carry out this title for a fiscal
year, the Secretary—
125
‘‘(1) shall allot the total amount appropriated
pursuant to section 3(a)(2)(A) in accordance with
subsection (b)(1); and
‘‘(2)(A) shall allot 80 percent of the amount ap-
propriated pursuant to section 3(a)(2)(B) in accord-
ance with the subsection (b)(2); and
‘‘(B) shall reserve the remainder of the amount
appropriated pursuant to section 3(a)(2)(B) for use
under part B.
‘‘(b) ALLOTMENT AMONG STATES.—
‘‘(1) ADULT EMPLOYMENT AND TRAINING.—
‘‘(A) 
RESERVATION
FOR
OUTLYING
AREAS.—
‘‘(i) IN GENERAL.—Of the amount al-
lotted under subsection (a)(1), the Sec-
retary shall allot not more than one quar-
ter of one percent among the outlying
areas.
‘‘(ii) APPLICABILITY OF ADDITIONAL
REQUIREMENTS.—Of the amount allotted
under clause (i), the Secretary shall award
grants to Guam, American Samoa, the
Commonwealth of the Northern Mariana
Islands, and the freely associated states in
126
accordance with the requirements of sec-
tion 203(b)(1).
‘‘(B) STATES.—
‘‘(i) IN GENERAL.—After determining
the amount to be allotted under subpara-
graph (A), the Secretary shall allot the re-
maining amount to the States pursuant to
the formula contained in clause (ii).
‘‘(ii) FORMULA.—Subject to the provi-
sions of clause (iii), of the amounts allotted
to States for adult employment and train-
ing under this title for each fiscal year—
‘‘(I) 331⁄3 percent shall be allot-
ted on the basis of the relative num-
ber of unemployed individuals residing
in areas of substantial unemployment
within each State as compared to the
total number of such unemployed indi-
viduals in all such areas of substantial
unemployment in all States;
‘‘(II) 331⁄3 percent shall be allot-
ted on the basis of the relative excess
number of unemployed individuals
within each State as compared to the
127
total excess number of unemployed in-
dividuals in all States; and
‘‘(III) 331⁄3 percent shall be allot-
ted on the basis of the relative num-
ber of economically disadvantaged
adults within each State as compared
to the total number of economically
disadvantaged adults in all States.
‘‘(iii) MINIMUM ALLOTMENT.—
‘‘(I) MINIMUM
PERCENTAGE.—
No State shall be allotted less than 90
percent of its allotment percentage for
the fiscal year preceding the fiscal
year for which the determination is
made.
‘‘(II) MAXIMUM PERCENTAGE.—
No State shall be allotted more than
130 percent of its allotment percent-
age for the fiscal year preceding the
fiscal year for which the determina-
tion is made.
‘‘(iv) SMALL STATE MINIMUM ALLOT-
MENT.—No State shall receive less than
one-quarter of one percent of the amount
available under this subparagraph for a
128
fiscal year. Amounts necessary for increas-
ing such payments to States to comply
with the preceding sentence shall be ob-
tained by ratably reducing the amounts to
be paid to other States.
‘‘(2) DISLOCATED WORKERS.—
‘‘(A) 
RESERVATION
FOR
OUTLYING
AREAS.—
‘‘(i) IN GENERAL.—Of the amount al-
lotted under subsection (a)(2), the Sec-
retary shall allot not more than one quar-
ter of one percent among the outlying
areas.
‘‘(ii) APPLICABILITY OF ADDITIONAL
REQUIREMENTS.—Of the amount allotted
under clause (i), the Secretary shall award
grants to Guam, American Samoa, the
Commonwealth of the Northern Mariana
Islands, and the freely associated states in
accordance with the requirements of sec-
tion 203(b)(1).
‘‘(B) STATES.—
‘‘(i) IN GENERAL.—After determining
the amount to be allotted under subpara-
graph (A), the Secretary shall allot the re-
129
maining amount to the States pursuant to
the formula contained in clause (i).
‘‘(ii) FORMULA.—Subject to the provi-
sions of clause (iii), of the amounts allotted
to States for dislocated worker employment
and training under this title for each fiscal
year—
‘‘(I) 331⁄3 percent shall be allot-
ted among the States on the basis of
the relative number of unemployed in-
dividuals who reside in each State as
compared to the total number of un-
employed individuals in all the States;
‘‘(II) 331⁄3 percent shall be allot-
ted among the States on the basis of
the relative excess number of unem-
ployed individuals who reside in each
State as compared to the total excess
number of unemployed individuals in
all the States (for purposes of this
subclause, the term ‘excess number’
means the number which represents
unemployed individuals in excess of
4.5 percent of the civilian labor force
in the State); and
130
‘‘(III) 331⁄3 percent shall be allot-
ted among the States on the basis of
the relative number of individuals who
have been unemployed for 15 weeks or
more and who reside in each State as
compared to the total number of such
individuals in all the States.
‘‘(iii) MINIMUM ALLOTMENT.—
‘‘(I) MINIMUM
PERCENTAGE.—
No State shall be allotted less than 90
percent of its allotment percentage for
the fiscal year preceding the fiscal
year for which the determination is
made.
‘‘(II) MAXIMUM PERCENTAGE.—
No State shall be allotted more than
130 percent of its allotment percent-
age for the fiscal year preceding the
fiscal year for which the determina-
tion is made.
‘‘(iv) SMALL STATE MINIMUM ALLOT-
MENT.—No State shall receive less than
one-quarter of one percent of the amount
available under this subparagraph for a
fiscal year. Amounts necessary for increas-
131
ing such payments to States to comply
with the preceding sentence shall be ob-
tained by ratably reducing the amounts to
be paid to other States.
‘‘SEC. 313. ALLOCATION WITHIN STATES.
‘‘(a) RESERVATIONS FOR STATE ACTIVITIES.—
‘‘(1) ADULT EMPLOYMENT AND TRAINING.—
‘‘(A) IN GENERAL.—The Governor of the
State shall reserve not more than 15 percent of
the total amount allotted to the State under
section 312(b)(1) for a fiscal year for statewide
activities for employment, job training, and re-
lated assistance for adults.
‘‘(B) ALLOWABLE
ACTIVITIES.—Such ac-
tivities may include—
‘‘(i) subject to subparagraph (C), ad-
ministration by the State of programs
under this title;
‘‘(ii) capacity building and technical
assistance to local workforce development
areas, full service employment and training
delivery systems, and service providers in-
cluding the development and training of
staff and the development of exemplary
program activities;
132
‘‘(iii) incentives for program coordina-
tion and integration, performance awards,
and research and demonstrations;
‘‘(iv) implementation of innovative in-
cumbent worker training programs, which
may include the establishment and imple-
mentation of an employer loan program to
assist in skills upgrading, and the estab-
lishment and implementation of programs
targeted to empowerment zones;
‘‘(v) implementation of experimen-
tation, model activities, pilot projects, and
demonstration projects which further the
goals and purposes of this Act;
‘‘(vi) additional assistance for the de-
velopment and implementation of the full
service employment and training delivery
system established in accordance with sec-
tion 123;
‘‘(vii) support for a common manage-
ment information system across employ-
ment, training, literacy, and human re-
source programs as identified in section
103;
133
‘‘(viii) support for the identification of
eligible training providers as required
under section 124; and
‘‘(ix) implementation of innovative
programs to increase the number of indi-
viduals training and placed in nontradi-
tional employment.
‘‘(C) LIMITATION.—Of the amount re-
served by the Governor under subparagraph (A)
not more than 5 percent of the total amount al-
lotted to the State under section 312(b)(1) for
a fiscal year may be used for administration by
the State of programs under this part.
‘‘(2) DISLOCATED WORKERS EMPLOYMENT AND
TRAINING.—
‘‘(A) IN GENERAL.—The Governor of the
State shall reserve not more than 30 percent of
the total amount allotted to the State under
section 312(b)(2) for a fiscal year for statewide
activities for employment, job training, and re-
lated assistance for dislocated workers.
‘‘(B) REQUIRED ACTIVITIES.—Such activi-
ties shall include—
‘‘(i) rapid response activities carried
out by a designated State dislocated work-
134
er unit, working in conjunction with the
local workforce development board and the
chief elected official in an affected local
workforce development area; and
‘‘(ii) additional assistance to areas
that experience disasters, mass layoffs or
plant closings, or other events that precipi-
tate substantial increases in the number of
unemployed workers, working in conjunc-
tion with the local workforce development
board and the chief elected official in af-
fected local workforce development areas.
‘‘(C) DISCRETIONARY ACTIVITIES.—
‘‘(i) IN
GENERAL.—Such activities
may include those activities described in
section 315(a)(1)(B).
‘‘(D) LIMITATION.—Of the amount re-
served by the Governor under subparagraph (A)
not more than 5 percent of the total amount al-
lotted to the State under section 312(b)(2) for
a fiscal year may be used for administration by
the State of programs under this part.
‘‘(b) WITHIN STATE ALLOCATION.—
‘‘(1) ALLOCATION.—
135
‘‘(A) IN GENERAL.—The Governor of the
State shall allocate the remainder of the
amounts allotted to the State under section 312
to workforce development areas designated
under section 121 for the purpose of providing
a single system of employment and training
services for adults and dislocated workers in ac-
cordance with section 314.
‘‘(B) 
ADDITIONAL
REQUIREMENTS.—(i)
Funds allocated under paragraph (2)(A), shall
be used by a local workforce development area
to contribute to the costs of the local full serv-
ice employment and training delivery system,
and to pay for services provided to adults, in
the local area, consistent with section 314.
‘‘(ii) Funds allocated under paragraph
(2)(B), shall be used by a local workforce devel-
opment area to contribute to the costs of the
local full service employment and training deliv-
ery system, and to pay for services provided to
dislocated workers, in the local area, consistent
with section 314.
‘‘(2) METHODS.—
‘‘(A) 
IN
GENERAL.—The 
Governor,
through the collaborative process under section
136
102, and after consultation with local chief
elected officials in the local workforce develop-
ment areas, shall allocate the remainder of
funds described in subsection (a)(1)(A) for
adult employment and training in accordance
with subparagraph (B), and the funds described
in subsection (a)(2)(A) for dislocated workers in
accordance with subparagraph (C).
‘‘(B) ADULT EMPLOYMENT AND TRAINING
FORMULA.—In allocating the funds for adult
employment and training, the individuals de-
scribed in subparagraph (A) shall take into ac-
count—
‘‘(i) the relative number of unem-
ployed individuals residing in local areas of
substantial unemployment within each
workforce development area in the State as
compared to the total number of such un-
employed individuals in all such areas of
substantial unemployment in the State;
‘‘(ii) the relative excess number of un-
employed individuals within each local
workforce development area of the State as
compared to the total excess number of un-
employed individuals in the State;
137
‘‘(iii) the relative number of economi-
cally disadvantaged adults within each
workforce development area of the State as
compared to the total number of economi-
cally disadvantaged adults in the State;
and
‘‘(iv) such other factors as determined
appropriate by the State.
‘‘(C) DISLOCATED WORKER FORMULA.—In
allocating funds for dislocated workers, individ-
uals described in subparagraph (A) shall take
into account—
‘‘(i) the relative number of unem-
ployed individuals residing in local areas of
substantial unemployment within each
workforce development area in the State as
compared to the total number of such un-
employed individuals in all such areas of
substantial unemployment in the State;
‘‘(ii) the relative excess number of un-
employed individuals within each local
workforce development area of the State as
compared to the total excess number of un-
employed individuals in the State;
138
‘‘(iii) the relative number of individ-
uals who have been unemployed for 15
weeks or more within each workforce devel-
opment area of the State as compared to
the total number of such unemployed indi-
viduals in the State; and
‘‘(iv) such other factors as determined
appropriate by the State, which may in-
clude—
‘‘(I) insured unemployment data;
‘‘(II) unemployment concentra-
tions;
‘‘(III) plant closing and mass lay-
off data;
‘‘(IV) declining industries data;
‘‘(V) 
farmer-rancher 
economic
hardship data; and
‘‘(VI) long-term unemployment
data.
‘‘(3) ADDITIONAL
FACTORS.—In establishing
the formulas described in paragraph (2), the Gov-
ernor shall ensure that—
‘‘(A) such formulas distribute funds equi-
tably throughout the State;
139
‘‘(B) no one factor described in paragraph
(2) receives disproportionate weighting; and
‘‘(C) such formulas protect local workforce
development areas from significant funding
shifts from year to year.
‘‘(4) 
TRANSFER
AUTHORITY.—A 
local
workforce development area is authorized to transfer
up to 20 percent of the funds received under this
subsection between adult employment and training
and dislocated worker allocations if such transfer is
approved by the Governor.
‘‘SEC. 314. USE OF AMOUNTS.
‘‘(a) CORE SERVICES.—Amounts allocated under sec-
tion 313(b) shall be used to provide core services described
in section 123(d) to adults through a full service employ-
ment and training delivery system in accordance with such
section.
‘‘(b) INTENSIVE SERVICES.—
‘‘(1) IN
GENERAL.—Amounts allocated under
section 313(b) shall be used to provide intensive
services to adults—
‘‘(A)(i) who are unable to obtain employ-
ment through core services under subsection
(a); and
140
‘‘(ii) who have been determined to be in
need of more intensive services in order to gain
employment; or
‘‘(B)(i) who are employed but are economi-
cally disadvantaged despite such employment;
and
‘‘(ii) who are determined to be in need of
such intensive services in order to gain employ-
ment that allows for self-sufficiency.
‘‘(2) DELIVERY OF SERVICES.—Such intensive
services shall be provided—
‘‘(A) directly through full service eligible
providers identified pursuant to section 123(c);
or
‘‘(B) through contracts through full service
employment and training delivery systems with
service 
providers 
approved 
by 
the 
local
workforce development board, which may in-
clude private, for-profit providers.
‘‘(3) TYPES OF SERVICES.—Such intensive serv-
ices may include the following:
‘‘(A) Comprehensive and specialized as-
sessments of the skill levels and service needs of
adults, which may include—
141
‘‘(i) diagnostic testing and other as-
sessment tools; and
‘‘(ii) in-depth interviewing and evalua-
tion to identify employment barriers and
appropriate employment goals.
‘‘(B) Development of an individual employ-
ment plan, to identify the employment goals,
appropriate achievement objectives, and the ap-
propriate combination of services for the partic-
ipant to achieve the employment goal.
‘‘(C) Group counseling.
‘‘(D) Individual counseling and career
planning.
‘‘(E) Case management for participants re-
ceiving training services under subsection (c).
‘‘(F) Follow-up services for participants
placed in training or employment, for up to 1
year, to assist in retention or advancement in
employment.
‘‘(c) TRAINING SERVICES.—
‘‘(1) IN
GENERAL.—Amounts allocated under
section 313(b) shall be used to provide training serv-
ices to participants—
‘‘(A) who are unable to obtain employment
through core services under subsection (a);
142
‘‘(B) who are in need of training services
in order to gain employment as a result of de-
terminations made through—
‘‘(i) initial assessments under sub-
section (a); or
‘‘(ii) comprehensive and specialized
assessments under subsection (b)(3)(A); or
‘‘(C)(i) who are employed but are economi-
cally disadvantaged despite such employment;
and
‘‘(ii) who are determined to be in need of
such training services in order to gain employ-
ment that allows for self-sufficiency.
‘‘(2) PARTICIPANT QUALIFICATION.—
‘‘(A) REQUIREMENTS.—Except as provided
in subparagraph (B), provision of such training
services shall be limited to participants who—
‘‘(i) are unable to obtain other grant
assistance for such services, including Fed-
eral Pell Grants established under title IV
of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.); or
‘‘(ii) require assistance beyond the as-
sistance made available under other grant
143
assistance programs, including Federal
Pell Grants.
‘‘(B) REIMBURSEMENTS.—Training serv-
ices may be provided under this subsection to
an individual who otherwise meets the require-
ments of this subsection while an application
for a Federal Pell Grant or other grant assist-
ance is pending, except that if such individual
is subsequently awarded a Federal Pell Grant
or other grant assistance, appropriate reim-
bursement shall be made to the local workforce
development area from such Federal Pell Grant
or other grant assistance.
‘‘(3) PROVIDER QUALIFICATION.—Such training
services shall be provided through training providers
identified under in accordance with section 124.
‘‘(4) TYPES OF SERVICES.—Such training serv-
ices may include the following:
‘‘(A) Basic skills training, including reme-
dial education, literacy training, and English
literacy program instruction.
‘‘(B) Occupational skills training, including
training for nontraditional employment.
‘‘(C) On-the-job training.
144
‘‘(D) Programs that combine workplace
training with related instruction, which may in-
clude cooperative education programs.
‘‘(E) Training programs operated by the
private sector.
‘‘(F) Skill upgrading and retraining.
‘‘(G) Entrepreneurial training.
‘‘(H) Employability training to enhance
basic workplace competencies.
‘‘(I) Customized training conducted with a
commitment by an employer or group of em-
ployers to employ an individual upon successful
completion of the training.
‘‘(5) INDIVIDUAL CHOICE REQUIREMENTS.—
‘‘(A) IN GENERAL.—All training services
under this section shall be provided through
service delivery methods that, to the extent
practicable, maximize consumer choice in the
selection of eligible providers of training serv-
ices.
‘‘(B) INFORMATION ON ELIGIBLE PROVID-
ERS.—Each local workforce development board,
through the full service employment and train-
ing delivery system, shall make available—
145
‘‘(i) the list of eligible providers of
training services required under section
124, with a description of the training
courses available from such providers and
a list of the names of on-the-job training
providers; and
‘‘(ii) the performance information de-
scribed in section 124 relating to such pro-
viders.
‘‘(C) PURCHASE OF SERVICES.—An indi-
vidual eligible for training services under this
section may select an eligible provider of train-
ing services from the list of providers described
in subparagraph (B)(i). Upon such selection,
the full service eligible provider shall, to the ex-
tent practicable, refer such individual to the se-
lected eligible provider of training services and
arrange for payment for such services.
‘‘(6) ADDITIONAL REQUIREMENTS.—
‘‘(A) USE OF SKILL GRANTS.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii) and clause (iii), training
services under this section shall be pro-
vided through the use of skill grants in ac-
cordance with this subsection, and shall be
146
distributed to eligible individuals through
full service eligible providers or affiliated
sites as described in section 123.
‘‘(ii) EXCEPTIONS.—Training services
authorized under this title may be provided
pursuant to a contract for services in lieu
of a skill grant if the requirements of para-
graph (5) are met and if—
‘‘(I) such services are on-the-job
training provided by an employer;
‘‘(II) the local workforce develop-
ment board determines there are an
insufficient number of qualified pro-
viders of training services in the
workforce development area to accom-
plish the purposes of a skill grant sys-
tem;
‘‘(III) the local workforce devel-
opment board determines that the
qualified providers of training services
in the workforce development area are
unable to provide effective services to
special participant populations; or
‘‘(IV) the local workforce devel-
opment board decides to enter into a
147
direct training contract with a com-
munity based organization.
‘‘(iii) TRANSITION.—Each State shall,
not later than three years after the date of
the enactment of the Employment, Train-
ing, and Literacy Enhancement Act of
1997, fully implement the requirements of
clause (i). Nothing in this Act shall pro-
hibit a State from beginning such imple-
mentation at an earlier date.
‘‘(B) LINKAGE
TO
OCCUPATIONS
IN
DE-
MAND.—Training services under this subsection
shall be directly linked to occupations for which
there is a demand in the local workforce devel-
opment area, or in another area to which an
adult receiving such services is willing to relo-
cate, except that a local workforce development
board may approve training in occupations de-
termined by the local board to be in sectors of
the economy which have a high potential for
sustained demand or growth in the local
workforce development area.
‘‘(d) ADDITIONAL USES OF AMOUNTS.—
‘‘(1) SUPPORTIVE SERVICES.—Supportive serv-
ices may be provided for individuals—
148
‘‘(A) who are receiving assistance under
any of subsections (a) through (c); and
‘‘(B) who are unable to receive such serv-
ices through other programs providing such
services.
‘‘(2) NEEDS-RELATED PAYMENTS.—
‘‘(A) IN
GENERAL.—Amounts allocated
under section 313(b) may be used to provide
needs-related payments to adults who are un-
employed and do not qualify for (or have ceased
to qualify for) unemployment compensation for
the purpose of enabling such adults to partici-
pate in training programs under subsection (c).
‘‘(B) ADDITIONAL
ELIGIBILITY
REQUIRE-
MENTS.—In addition to the requirements con-
tained in subparagraph (A), a dislocated worker
who has exhausted unemployment insurance
benefits may be eligible to receive needs-related
payments under this paragraph only if such
worker was enrolled in training by the end of
the 13th week of the worker’s most recent lay-
off, or, if later, by the end of the 8th week after
the worker is informed that a short-term layoff
will in fact exceed 6 months.
149
‘‘(e) PROHIBITION ON PRIVATE RIGHT OF ACTION.—
Nothing in this section may be construed to establish a
right for a participant to bring an action to obtain services
under a program established under this Act.
‘‘PART B—NATIONAL PROGRAMS
‘‘SEC. 321. NATIONAL EMERGENCY GRANTS.
‘‘(a) IN GENERAL.—From the amount reserved
under section 312(a)(2), the Secretary of Labor is author-
ized to award national emergency grants in a timely man-
ner—
‘‘(1) to an entity described in subsection (b) 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; and
‘‘(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 defined in paragraphs (1) and (2), respectively, of
section 102 of The Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C.
5122(1) and (2)) (referred to in this section as the
‘disaster area’).
‘‘(b) EMPLOYMENT AND TRAINING ASSISTANCE RE-
QUIREMENTS.—
150
‘‘(1) APPLICATION.—To be eligible to receive a
grant under subsection (a)(1), an entity shall submit
an application to the Secretary of Labor at such
time, in such manner, and accompanied by such in-
formation, as the Secretary may reasonably require.
‘‘(2) ELIGIBLE ENTITY.—For purposes of this
section, the term ‘entity’ means a State, local
workforce development board, employer or employer
association, worker-management transition assist-
ance committee or other employer-employee entity,
representative of employees, community development
corporation or community-based organization, or an
industry consortia
‘‘(c) DISASTER RELIEF EMPLOYMENT ASSISTANCE
REQUIREMENTS.—
‘‘(1) IN
GENERAL.—Funds made available
under subsection (a)(2)—
‘‘(A) shall be used exclusively to provide
employment on projects that provide food,
clothing, shelter, and other humanitarian assist-
ance for disaster victims, and projects regard-
ing demolition, cleaning, repair, renovation, and
reconstruction of damaged and destroyed struc-
tures, facilities, and lands located within the
disaster area; and
151
‘‘(B) may be expended through public and
private agencies and organizations engaged in
such projects.
‘‘(2) ELIGIBILITY.—An individual shall be eligi-
ble to be offered disaster relief employment under
this section if such individual is a dislocated worker
or is temporarily or permanently laid off as a con-
sequence of the disaster.
‘‘(3) LIMITATIONS ON DISASTER RELIEF EM-
PLOYMENT.—No individual shall be employed under
this part for more than 6 months for work related
to recovery from a single natural disaster.’’.
‘‘SEC. 322. SKILL UPGRADING PROJECTS IN ENTERPRISE
ZONES OR EMPOWERMENT COMMUNITIES.
‘‘From funds made available under section 312(a)(2),
the Secretary of Labor is authorized to award grants to
assist projects that provide training to upgrade the skill
of employed workers who reside and are employed in en-
terprise zones or empowerment communities.’’.
152
TITLE 
IV—AMENDMENTS 
TO
FEDERALLY 
ADMINISTERED
PROGRAMS
Subtitle 
A—Employment 
and
Training Programs for Native
Americans 
and 
Migrant 
and
Seasonal Farmworkers
SEC. 401. NATIVE AMERICAN PROGRAM.
Section 401 of the Job Training Partnership Act (29
U.S.C. 1671) is amended to read as follows:
‘‘SEC. 401. NATIVE AMERICAN PROGRAMS.
‘‘(a) PURPOSE.—
‘‘(1) IN GENERAL.—The purpose of this section
is to support employment and training activities for
Indian, Alaska Native, and Native Hawaiian individ-
uals in order—
‘‘(A) to develop more fully the academic,
occupational, and literacy skills of such individ-
uals;
‘‘(B) to make such individuals more com-
petitive in the workforce; and
‘‘(C) to promote the economic and social
development of Indian, Alaska Native, and Na-
tive Hawaiian communities in accordance with
the goals and values of such communities.
153
‘‘(2) INDIAN
POLICY.—All programs assisted
under this section shall be administered in a manner
consistent with the principles of the Indian Self-De-
termination and Education Assistance Act (25
U.S.C. 450 et seq.) and the government-to-govern-
ment relationship between the Federal Government
and Indian tribal governments.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) ALASKA NATIVE.—The term ‘Alaska Na-
tive’ means a Native as such term is defined in sec-
tion 3(b) of the Alaska Native Claims Settlement
Act (43 U.S.C. 1602(b)).
‘‘(2) INDIAN, INDIAN TRIBE, AND TRIBAL ORGA-
NIZATION.—The terms ‘Indian’, ‘Indian tribe’, and
‘tribal organization’ have the meanings given such
terms in subsections (d), (e), and (l), respectively, of
section 4 of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b).
‘‘(4) NATIVE HAWAIIAN AND NATIVE HAWAIIAN
ORGANIZATION.—The terms ‘Native Hawaiian’ and
‘Native Hawaiian organization’ have the meanings
given such terms in paragraphs (1) and (3), respec-
tively, of section 9212 of the Native Hawaiian Edu-
cation Act (20 U.S.C. 7912).
154
‘‘(c) PROGRAM
AUTHORIZED.—The Secretary of
Labor shall make grants to, or enter into contracts or co-
operative agreements with, Indian tribes, tribal organiza-
tions, Alaska Native entities, Indian-controlled organiza-
tions serving Indians, or Native Hawaiian organizations
to carry out the authorized activities described in sub-
section (d).
‘‘(d) AUTHORIZED ACTIVITIES.—
‘‘(1) IN
GENERAL.—Funds made available
under this section shall be used to carry out the ac-
tivities described in paragraphs (2) and (3) that—
‘‘(A) are consistent with this section; and
‘‘(B) are necessary to meet the needs of
Indians or Native Hawaiians preparing to
enter, renter, or retain unsubsidized employ-
ment.
‘‘(2) EMPLOYMENT AND TRAINING ACTIVITIES
AND SUPPLEMENTAL SERVICES.—
‘‘(A) IN GENERAL.—Funds made available
under this section shall be used for—
‘‘(i) comprehensive workforce and ca-
reer development activities for Indians or
Native Hawaiians; or
‘‘(ii) supplemental services for Indian
or Native Hawaiian youth on or near In-
155
dian reservations and in Oklahoma, Alas-
ka, or Hawaii.
‘‘(B) 
SPECIAL
RULE.—Notwithstanding
any other provision of this section, individuals
who were eligible to participate in programs
under section 401 of the Job Training Partner-
ship Act (29 U.S.C. 1671) (as such section was
in effect on the day before the date of enact-
ment of this Act) shall be eligible to participate
in an activity assisted under subparagraph
(A)(i).
‘‘(e) PROGRAM PLAN.—In order to receive a grant
or enter into a contract or cooperative agreement under
this section an entity described in subsection (c) shall sub-
mit to the Secretary of Labor a plan that describes a 2-
year strategy for meeting the needs of Indian or Native
Hawaiian individuals, as appropriate, in the area served
by such entity. Such plan—
‘‘(1) shall be consistent with the purposes of
this section;
‘‘(2) shall identify the population to be served;
‘‘(3) shall identify the education and employ-
ment needs of the population to be served and the
manner in which the services to be provided will
156
strengthen the ability of the individuals served to ob-
tain or retain unsubsidized employment;
‘‘(4) shall describe the services to be provided
and the manner in which such services are to be in-
tegrated with other appropriate services; and
‘‘(5) shall describe the goals and benchmarks 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 re-
ceiving assistance under this section may consolidate such
assistance with assistance received from related programs
in accordance with the provisions of the Indian Employ-
ment, 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 de-
scribed in subsection (c) to participate in any activ-
ity offered by a State or local entity under this Act;
or
‘‘(2) to preclude or discourage any agreement,
between 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.
157
‘‘(h) ADMINISTRATIVE PROVISIONS.—
‘‘(1) ORGANIZATIONAL
UNIT
ESTABLISHED.—
The Secretary of Labor shall designate a single or-
ganizational unit that shall have as its primary re-
sponsibility the administration of the activities au-
thorized under this section.
‘‘(2) REGULATIONS.—The Secretary of Labor
shall consult with the entities described in subsection
(c)(1) in establishing regulations to carry out this
section, including performance measures for entities
receiving assistance under such subsection, taking
into account the economic circumstances of such
groups, and in developing a funding distribution
plan that takes into consideration previous levels of
funding and other sources of funds not provided
pursuant to this Act.
‘‘(3) TECHNICAL ASSISTANCE.—The Secretary
of Labor, through the unit established under para-
graph (1), are authorized to provide technical assist-
ance to entities described in subsection (c) that re-
ceive assistance under this section to enable such en-
tities to improve the workforce and career develop-
ment activities provided by such entities.’’.
158
SEC. 402. MIGRANT AND SEASONAL FARMWORKER PRO-
GRAM.
Section 402 of the Job Training Partnership Act (29
U.S.C. 1672) is amended to read as follows:
‘‘SEC. 402. MIGRANT AND SEASONAL FARMWORKER PRO-
GRAM.
‘‘(a) IN GENERAL.—The Secretary of Labor shall
make grants to, or enter into contracts with, eligible enti-
ties to carry out the activities described in subsection (d).
‘‘(b) ELIGIBLE ENTITIES.—To be eligible to receive
a grant or enter into a contract under this section, an en-
tity shall have an understanding of the problems of mi-
grant farmworkers and seasonal farmworkers, a famili-
arity with the area to be served, and the ability to dem-
onstrate a capacity to administer effectively a diversified
program of workforce and career development activities
for migrant farmworkers or seasonal farmworkers.
‘‘(c) PROGRAM PLAN.—
‘‘(1) IN GENERAL.—To be eligible to receive a
grant or enter into a contract under this section, an
entity described in subsection (b) shall submit to the
Secretary of Labor a plan that describes a 2-year
strategy for meeting the needs of migrant farm-
workers and seasonal farmworkers and their depend-
ents in the area to be served by such entity.
‘‘(2) CONTENTS.—Such plan shall—
159
‘‘(A) identify the education and employ-
ment needs of the population to be served and
the manner in which the services to be provided
will strengthen the ability of the eligible farm-
workers and dependents to obtain or be re-
tained in unsubsidized employment or stabilize
their unsubsidized employment;
‘‘(B) describe the related assistance and
supportive services to be provided and the man-
ner in which such services are to be integrated
and coordinated with other appropriate services;
and
‘‘(C) describe the goals and benchmarks to
be used to assess the performance of such en-
tity in carrying out the activities assisted under
this section.
‘‘(d) AUTHORIZED ACTIVITIES.—Funds made avail-
able under this section shall be used to carry out com-
prehensive workforce and career development activities
and related services for migrant farmworkers or seasonal
farmworkers which may include employment, training,
educational assistance, literacy assistance, an English lit-
eracy program, worker safety training, housing, supportive
services, and the continuation of the case management
160
database on participating migrant farmworkers and sea-
sonal farmworkers.
‘‘(e) CONSULTATION WITH GOVERNORS AND LOCAL
BOARDS.—In making grants and entering into contracts
under this section, the Secretary of Labor shall consult
with the Governors and local boards of the States in which
the eligible entities will carry out the activities described
in subsection (d).
‘‘(f) REGULATIONS.—The Secretaries shall consult
with migrant and seasonal farmworker groups and States
in establishing regulations to carry out this section, includ-
ing performance measures for eligible entities which take
into account the economic circumstances of migrant farm-
workers and seasonal farmworkers.
‘‘(g) DEFINITIONS.—As used in this section:
‘‘(1) MIGRANT FARMWORKER.—The term ‘mi-
grant farmworker’ means a seasonal farmworker
whose farm work requires travel such that the work-
er is unable to return to a permanent place of resi-
dence within the same day.
‘‘(2) SEASONAL FARMWORKER.—The term ‘sea-
sonal farmworker’ means a person who during the
eligibility determination period (12 consecutive
months out of 24 months prior to application)—
161
‘‘(A) has been primarily employed in farm
work that is characterized by chronic unemploy-
ment or under employment; and
‘‘(B) is economically disadvantaged at the
time of application.’’.
Subtitle B—Job Corps
SEC. 411. STATEMENT OF PURPOSE.
Section 421 of the Job Training Partnership Act (29
U.S.C. 1691) is amended in the first sentence by inserting
after ‘‘a distinct national program’’ the following: ‘‘carried
out in collaboration with States and localities’’.
SEC. 412. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.
Section 423 of the Job Training Partnership Act (29
U.S.C. 1693) is amended—
(1) in paragraph (1), by striking ‘‘14’’ and in-
serting ‘‘16’’;
(2) in paragraph (2), by striking ‘‘, and who re-
quires’’ and all that follows and inserting a semi-
colon;
(3) by redesignating paragraphs (3), (4), and
(5) as paragraphs (4), (5), and (6), respectively; and
(4) by inserting after paragraph (2) the follow-
ing:
‘‘(3) is an individual who—
‘‘(A) is deficient in basic skills;
162
‘‘(B) is a school dropout;
‘‘(C) is homeless or a runaway;
‘‘(D) is a single parent; or
‘‘(E) requires additional education, train-
ing, or intensive counseling and related assist-
ance in order to secure and hold meaningful
employment, participate successfully in regular
school work, qualify for other suitable training
programs, or satisfy Armed Forces require-
ments;’’.
SEC. 413. SCREENING AND SELECTION OF APPLICANTS;
GENERAL PROVISIONS.
Section 424(a) of the Job Training Partnership Act
(29 U.S.C. 1694(a)) is amended—
(1) in the first sentence, by adding at the end
before the period the following: ‘‘after considering
input from State, local, and community groups and
other interested parties’’;
(2) in the second sentence—
(A) by inserting after ‘‘public employment
offices,’’ the following: ‘‘full service eligible pro-
viders,’’; and
(B) by striking ‘‘and agencies’’ and insert-
ing ‘‘and entities’’; and
163
(3) in the third sentence, by inserting after
‘‘The rules shall’’ the following: ‘‘require Job Corps
applicants to pass background checks, conducted in
accordance with procedures established by the Sec-
retary, and’’.
SEC. 414. JOB CORPS CENTERS.
Section 427 of the Job Training Partnership Act (29
U.S.C. 1697) is amended—
(1) in subsection (a)(1), by adding at the end
the following: ‘‘In selecting any entity to serve as an
operator or to provide services for a Job Corps cen-
ter, the Secretary shall take into consideration the
previous performance of the entity, if any, relating
to operating or providing services for a Job Corps
center.’’;
(2) in subsection (c) to read as follows:
‘‘(c) The Secretary may select an entity to operate
a Civilian Conservation Center on a competitive basis if
such a center fails to meet performance criteria estab-
lished by the Secretary.’’; and
(3) by adding at the end the following:
‘‘(d) Notwithstanding any other provision of law, any
proceeds from the sale of Job Corps center facilities shall
be retained by the Secretary to carry out the Job Corps
program.’’.
165
SEC. 
417. 
EXPERIMENTAL 
AND 
DEVELOPMENTAL
PROJECTS AND COORDINATION WITH OTHER
PROGRAMS.
Section 433(c)(1) of the Job Training Partnership
Act (29 U.S.C. 1703(c)(1)) is amended in the first sen-
tence by striking ‘‘disseminate information’’ and inserting
‘‘disseminate to Federal, State, and local workforce devel-
opment programs information and best practices’’.
Subtitle C—National Activities
SEC. 421. RESEARCH, DEMONSTRATION, EVALUATION, AND
CAPACITY BUILDING.
Part D of the Job Training Partnership Act (29
U.S.C. 1731 et seq.) is amended by striking sections 451
through 454 and inserting the following:
‘‘SEC. 451. RESEARCH, DEMONSTRATION, EVALUATION, AND
CAPACITY BUILDING.
‘‘(a) IN GENERAL.—The Secretary is authorized to
establish and carry out research, demonstration, evalua-
tion, and capacity building activities described in sub-
sections (b) through (f).
‘‘(b) NATIONAL PARTNERSHIP AND SPECIAL TRAIN-
ING.—The Secretary may award special grants to eligible
entities to carry out programs that are most appropriately
administered at the national level. Such activities may in-
clude—
166
‘‘(1) partnership programs with national orga-
nizations with special expertise in developing, orga-
nizing, and administering employment and training
services at the national, State, and local levels, such
as industry and labor associations, public interest
groups, community-based organizations representa-
tive of groups that encounter special difficulties in
the labor market, and other organizations with spe-
cial knowledge or capabilities in education and train-
ing; and
‘‘(2) activities that—
‘‘(A) address industry-wide skill shortages;
‘‘(B) meet training needs that are best ad-
dressed on a multi-state basis;
‘‘(C) further the goals of increasing the
competitiveness of the United States labor
force;
‘‘(D) require technical expertise available
at the national level to serve the needs of par-
ticular client groups that encounter significant
barriers to employment and who the Secretary
determines require special assistance; or
‘‘(E) promote and experiment with model
activities, pilot projects, and demonstration
167
projects which further the goals and purposes
of this Act.
‘‘(c) RESEARCH.—The Secretary is authorized to
conduct continuing research, which may include studies
and other methods and techniques, that will aid in the so-
lution of the employment and training problems of the
United States. Such studies may include the extent to
which individuals who participate in programs established
under this title achieve self-sufficiency as a result of such
participation, including the identification by States and lo-
calities, to the extent practicable, of indicators measuring
such self-sufficiency.
‘‘(d) PILOT AND DEMONSTRATION PROGRAMS.—
‘‘(1) IN GENERAL.—The Secretary is authorized
to conduct pilot and demonstration programs for the
purpose of developing and improving techniques and
demonstrating the effectiveness of specialized meth-
ods in addressing employment and training needs
which may include—
‘‘(A) the establishment of advanced manu-
facturing technology skill centers developed
through local partnerships of industry, labor,
education, community-based organizations, and
economic development organizations to meet
unmet, high-tech skills of local communities;
168
‘‘(B) programs conducted jointly with the
Department of Defense to develop training pro-
grams utilizing computer-based and other inno-
vative learning technologies;
‘‘(C) projects that promote the use of dis-
tance learning, enabling students to take
courses through the use of media technology
such as videos, teleconferencing computers, and
the Internet; and
‘‘(D) programs that serve economically dis-
advantaged youth in high poverty areas.
‘‘(2) GRANTS AND CONTRACTS.—The Secretary
may award grants and enter into contracts with en-
tities to carry out this subsection.
‘‘(3) EVALUATION
AND
EFFECTIVENESS.—
Demonstration programs assisted under this sub-
section shall include a formal, rigorous evaluation
component. Pilot programs assisted under this sub-
section shall include an appropriate evaluation com-
ponent.
‘‘(4) SPECIAL
RULE.—A demonstration pro-
gram under this subsection may not be assisted
under this subsection for a period of more than 7
years. A pilot program under this subsection may
169
not be assisted under this subsection for a period of
more than 3 years.
‘‘(e) EVALUATION.—
‘‘(1) ACTIVITIES.—
‘‘(A) JOB TRAINING.—The Secretary shall
provide for the continuing evaluation of pro-
grams conducted under this Act.
‘‘(B) OTHER
PROGRAMS.—The Secretary
may conduct evaluations of federally-funded
employment-related activities under other provi-
sions of law.
‘‘(2) TECHNIQUES.—
‘‘(A) METHODS.—Evaluations conducted
under paragraph (1) shall utilize sound statis-
tical methods and techniques for the behavioral
and social sciences, including the use of control
groups chosen by scientific random assignment
methodologies when feasible.
‘‘(B) 
EFFECTIVENESS.—The 
Secretary
shall evaluate the effectiveness of programs au-
thorized under this Act with respect to—
‘‘(i) the statutory goals; and
‘‘(ii) the cost effectiveness and return-
on-investment of such programs based on
the extent to which the programs—
170
‘‘(I) enhance the employment and
earnings of participants;
‘‘(II) reduce income support costs
(including the receipt of welfare as-
sistance);
‘‘(III) improve the employment
competencies of participants in com-
parison to comparable persons who
did not participate in such programs;
and
‘‘(IV) to the extent feasible, in-
crease the level of total employment
over the level that would have existed
in the absence of such programs.
‘‘(f) TECHNICAL ASSISTANCE, DISSEMINATION, AND
REPLICATION ACTIVITIES.—The Secretary shall provide,
coordinate, and support the development of, appropriate
training, technical assistance, staff development, and other
activities, including assistance in replicating programs of
demonstrated effectiveness, to States and localities.
‘‘SEC. 452. INCENTIVE GRANTS.
From amounts authorized to be appropriated pursu-
ant to section 3(a)(3) to carry out this part for a fiscal
year, the Secretary is authorized to award incentive grants
171
to States consistent with the requirements of section
156(a).’’.
SEC. 422. NONTRADITIONAL EMPLOYMENT DEMONSTRA-
TION PROGRAM.
Section 456 of the Job Training Partnership Act (29
U.S.C. 1737) is hereby repealed.
Subtitle D—Repealers
SEC. 451. REPEALERS.
Parts F, G, H, I, and J of title IV of the Job Train-
ing Partnership Act (29 U.S.C. 1771 et seq.) are hereby
repealed.
TITLE V—AMENDMENTS TO
ADULT EDUCATION PROGRAMS
SEC. 501. REPEAL OF JOBS FOR EMPLOYABLE DEPENDENT
INDIVIDUALS INCENTIVE BONUS PROGRAM.
Title V of the Job Training Partnership Act (29
U.S.C. 1791 et seq.) is repealed.
SEC. 502. TRANSFER AND AMENDMENT OF ADULT EDU-
CATION ACT.
The Adult Education Act (20 U.S.C. 1201 et seq.)—
(1) is transferred from the Elementary and
Secondary Education Amendments of 1996 (Public
Law 89–750; 80 Stat. 1216) to the Job Training
Partnership Act (29 U.S.C. 1501 et seq.);
172
(2) is inserted in the Job Training Partnership
Act after title IV of such Act; and
(3) is amended to read as follows:
‘‘TITLE V—ADULT EDUCATION
PROGRAMS
‘‘SEC. 501. SHORT TITLE.
‘‘This title may be cited as the ‘‘Adult Education and
Family Literacy Act’’.
‘‘SEC. 502. STATEMENT OF PURPOSE.
‘‘It is the purpose of this title to assist States and
outlying areas to provide—
‘‘(1) to adults, the basic educational skills nec-
essary for employment and self-sufficiency; and
‘‘(2) to adults who are parents, the educational
skills necessary to be full partners in the educational
development of their children.
‘‘SEC. 503. DEFINITION.
‘‘For purposes of this title:
‘‘(1) ADULT EDUCATION.—The term ‘adult edu-
cation’ means services or instruction below the post-
secondary level for individuals—
‘‘(A) who have attained 16 years of age;
‘‘(B) who are not enrolled or required to be
enrolled in secondary school under State law;
‘‘(C) who—
173
‘‘(i) lack sufficient mastery of basic
educational skills to enable the individuals
to function effectively in society; or
‘‘(ii) do not have a certificate of grad-
uation from a school providing secondary
education and who have not achieved an
equivalent level of education; and
‘‘(D) who lack a mastery of basic skills
and are therefore unable to speak, read, or
write the English language.
‘‘(2) ELIGIBLE
AGENCY.—The term ‘eligible
agency’ means—
‘‘(A) the individual, entity, or agency in a
State or an outlying area responsible for admin-
istering or setting policies for adult education
and literacy services in such State or outlying
area pursuant to the law of the State or outly-
ing area; or
‘‘(B) if no individual, entity, or agency is
responsible for administering or setting such
policies pursuant to the law of the State or out-
lying area, the individual, entity, or agency in
a State or outlying area responsible for admin-
istering or setting policies for adult education
and literacy services in such State or outlying
174
area on the date of the enactment of the Em-
ployment, Training, and Literacy Enhancement
Act of 1997.
‘‘(3) ELIGIBLE PROVIDER.—The term ‘eligible
provider’, used with respect to adult education and
literacy activities described in section 514(b), means
a provider determined to be eligible for assistance in
accordance with section 513.
‘‘(4) SECRETARY.—The term ‘Secretary’ means
the Secretary of Education.
‘‘SEC. 504. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated to carry out this title such sums as may be
necessary for fiscal years 1998 through 2003.
‘‘(b) RESERVATION OF FUNDS FOR NATIONAL LEAD-
ERSHIP ACTIVITIES.—For any fiscal year, the Secretary
shall reserve—
‘‘(1) 1.5 percent of the amount appropriated
under 
subsection 
(a) 
(but 
not 
more 
than
$6,500,000) to carry out section 521; and
‘‘(2) 1.5 percent of the amount appropriated
under 
subsection 
(a) 
(but 
not 
more 
than
$6,500,000) to establish and carry out the program
of national leadership and evaluation activities de-
scribed in section 522.
175
‘‘(c) PROGRAM YEAR.—Appropriations for any fiscal
year for programs and activities carried out under part
A shall be available for obligation only on the basis of a
program year. The program year shall begin on July 1
in the fiscal year for which the appropriation is made.
‘‘PART A—GRANTS TO ELIGIBLE AGENCIES
‘‘SEC. 511. AUTHORITY TO MAKE GRANTS.
‘‘(a) IN GENERAL.—In the case of each eligible agen-
cy that in accordance with section 101 submits to the Sec-
retary a plan, the Secretary shall make a grant for each
fiscal year for which such plan is in effect to the eligible
agency for the purpose specified in subsection (b). The
grant shall consist of the initial and additional allotments
determined for the eligible agency under section 512.
‘‘(b) PURPOSE
OF GRANTS.—The Secretary may
make a grant under subsection (a) only if the applicant
involved agrees to expend the grant for adult education
and literacy activities in accordance with the provisions
of this part.
‘‘SEC. 512. ALLOTMENTS.
‘‘(a) INITIAL ALLOTMENTS.—From the sums avail-
able for the purpose of making grants under this part for
any fiscal year, the Secretary shall allot to each eligible
agency that in accordance with section 101 submits to the
Secretary a plan for the year an initial amount as follows:
176
‘‘(1) $100,000, in the case of an eligible agency
of the United States Virgin Islands, Guam, Amer-
ican Samoa, the Commonwealth of the Northern
Mariana Islands, the Republic of the Marshall Is-
lands, the Federated States of Micronesia, and the
Republic of Palau.
‘‘(2) $250,000, in the case of any other eligible
agency.
‘‘(b) ADDITIONAL ALLOTMENTS.—
‘‘(1) IN GENERAL.—From the remainder avail-
able for the purpose of making grants under this
part for any fiscal year after the application of sub-
section (a), the Secretary shall allot to each eligible
agency that receives an initial allotment under such
subsection an additional amount that bears the same
relationship to such remainder as the number of
qualifying adults in the State or outlying area of the
agency bears to the number of such adults in all
States and outlying areas.
‘‘(2) QUALIFYING
ADULT.—For purposes of
this subsection, the term ‘qualifying adult’ means an
adult who—
‘‘(A) is at least 16 years of age, but less
than 61 years of age;
177
‘‘(B) is beyond the age of compulsory
school attendance under the law of the State or
outlying area;
‘‘(C) does not have a certificate of gradua-
tion from a school providing secondary edu-
cation and has not achieved an equivalent level
of education; and
‘‘(D) is not currently enrolled in secondary
school.
‘‘(c) SPECIAL RULE.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section and using funds not to ex-
ceed the amount appropriated and reserved under
the Adult Education Act for fiscal year 1997 for the
Republic of the Marshall Islands, the Federated
States of Micronesia, and the Republic of Palau
under this section, the Secretary shall award grants
to Guam, American Samoa, the Commonwealth of
the Northern Mariana Islands, the Republic of the
Marshall Islands, the Federated States of Microne-
sia, or the Republic of Palau to carry out activities
described in this part in accordance with the provi-
sions of this part that the Secretary determines are
not inconsistent with this subsection.
178
‘‘(2) AWARD BASIS.—The Secretary shall award
grants pursuant to paragraph (1) on a competitive
basis and pursuant to recommendations from the
Pacific Region Educational Laboratory in Honolulu,
Hawaii.
‘‘(3) TERMINATION OF ELIGIBILITY.—Notwith-
standing any other provision of law, the Republic of
the Marshall Islands, the Federated States of Micro-
nesia, and the Republic of Palau shall not receive
any funds under this part for any fiscal year that
begins after September 30, 2001.
‘‘(4) ADMINISTRATIVE COSTS.—The Secretary
may provide not more than 5 percent of the funds
made available for grants under this subsection to
pay the administrative costs of the Pacific Region
Educational Laboratory regarding activities assisted
under this subsection.
‘‘(d) REALLOTMENT.—The portion of any eligible
agency’s allotment under subsection (a) or (b) for a fiscal
year that the Secretary determines will not be required
for the period such allotment is available for carrying out
activities under this part, shall be available for reallotment
from time to time, on such dates during such period as
the Secretary shall fix, to other eligible agencies in propor-
179
tion to the original allotments to such agencies under such
subsection for such year.
‘‘SEC. 513. USE OF FUNDS.
‘‘(a) IN GENERAL.—Of the sum that is made avail-
able under this part to an eligible agency for any program
year—
‘‘(1) not less than 85 percent shall be made
available to award grants in accordance with this
section to carry out adult education and literacy ac-
tivities;
‘‘(2) not more than 10 percent shall be made
available to carry out activities described in section
514(a); and
‘‘(3) subject to paragraph (1), not more than 5
percent, or $50,000, whichever is greater, shall be
made available for administrative expenses at the
State level (or the level of the outlying area).
‘‘(b) GRANTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), from the amount made available to an eli-
gible agency for adult education and literacy under
subsection (a)(1) for a program year, such agency
shall award grants, on a competitive basis, to local
educational agencies, correctional education agen-
cies, 
community-based 
organizations 
of 
dem-
180
onstrated effectiveness, volunteer literacy organiza-
tions, libraries, public or private nonprofit agencies,
postsecondary educational institutions, public hous-
ing authorities, and other nonprofit institutions, that
have the ability to provide literacy services to adults
and families, or consortia of agencies, organizations,
or institutions described in this subsection, to enable
such agencies, organizations, institutions, and con-
sortia to carry out adult education and literacy ac-
tivities.
‘‘(2) CONSORTIA.—An eligible agency may
award a grant under this section to a consortium
that includes a provider described in paragraph (1)
and a for-profit agency, organization, or institution,
if such agency, organization, or institution—
‘‘(A) can make a significant contribution
to carrying out the objectives of this title; and
‘‘(B) enters into a contract with such pro-
vider to carry out adult education and literacy
activities.
‘‘(c) GRANT REQUIREMENTS.—
‘‘(1) REQUIRED LOCAL ACTIVITIES.—An eligible
agency shall require that each provider receiving a
grant under this section use the grant in accordance
with section 514(b).
181
‘‘(2) EQUITABLE ACCESS.—Each eligible agency
awarding a grant under this section for adult edu-
cation and literacy activities shall ensure that the
providers described in subsection (b) will be provided
direct and equitable access to all Federal funds pro-
vided under this section.
‘‘(3) SPECIAL
RULE.—Each eligible agency
awarding a grant under this section shall not use
any funds made available under this title for adult
education and literacy activities for the purpose of
supporting or providing programs, services, or activi-
ties for individuals who are not individuals described
in subparagraphs (A) and (B) of section 503(1), ex-
cept that such agency may use such funds for such
purpose if such programs, services, or activities are
related to family literacy services.
‘‘(4) CONSIDERATIONS.—In awarding grants
under this section, the eligible agency shall con-
sider—
‘‘(A) the past effectiveness of a provider
described in subsection (b) in providing services
(especially with respect to recruitment and re-
tention of educationally disadvantaged adults
and the learning gains demonstrated by such
adults);
182
‘‘(B) the degree to which the provider will
coordinate with other available resources in the
community, such as by establishing strong links
with elementary and secondary schools, post-
secondary educational institutions, full service
employment and training delivery centers, job
training programs, and other literacy and social
service available in the community;
‘‘(C) the commitment of the provider to
serve individuals in the community who are
most in need of literacy services, including indi-
viduals who are low income, who have minimal
literacy skills, or both;
‘‘(D) whether or not the program is of suf-
ficient intensity and duration for participants to
achieve substantial learning gains;
‘‘(E) the degree to which the provider will
offer flexible schedules and necessary support
services (such as child care and transportation)
to enable individuals, including individuals with
disabilities or other special needs, to participate
in adult education and literacy activities;
‘‘(F) whether such provider has been suc-
cessful in recruiting, retraining, and improving
the literacy skills of, individuals; and
183
‘‘(G) whether, not later than 1 year after
the date of the enactment of the Employment,
Training, and Literacy Enhancement Act of
1997, such provider has been successful in re-
training and improving the literacy skills of in-
dividuals, consistent with the core indicators of
performance set forth in section 154.
‘‘(d) LOCAL ADMINISTRATIVE COST LIMITS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), of the funds provided under this section
by an eligible agency to a provider described in sub-
section (b), not less than 95 percent shall be ex-
pended for provision of adult education and literacy
activities. The remainder shall be used for planning,
administration, personnel development, and inter-
agency coordination.
‘‘(2) SPECIAL RULE.—In cases where the cost
limits described in paragraph (1) will be too restric-
tive to allow for adequate planning, administration,
personnel development, and interagency coordination
supported under this section, the eligible agency
shall negotiate with the provider described in sub-
section (b) in order to determine an adequate level
of funds to be used for noninstructional purposes.
184
‘‘SEC. 514. ADULT EDUCATION AND LITERACY ACTIVITIES.
‘‘(a) PERMISSIBLE AGENCY ACTIVITIES.—An eligible
agency may use not more than 10 percent of the funds
made available to the eligible agency under this part for
activities that may include—
‘‘(1) the establishment or operation of profes-
sional development programs to improve the quality
of instruction provided pursuant to local activities
required under subsection (b), including instruction
provided by volunteers or by personnel of a State or
outlying area;
‘‘(2) the provision of technical assistance to eli-
gible providers of activities authorized under this
section;
‘‘(3) the provision of technology assistance, in-
cluding staff training, to eligible providers of activi-
ties authorized under this section to enable the pro-
viders to improve the quality of such activities;
‘‘(4) the support of State or regional networks
of literacy resource centers;
‘‘(5) the monitoring and evaluation of the qual-
ity of, and the improvement in, activities and serv-
ices authorized under this section;
‘‘(6) incentives for—
‘‘(A) program coordination and integra-
tion; and
185
‘‘(B) performance awards;
‘‘(7) developing and disseminating curricula;
and
‘‘(8) other activities of statewide significance
that promote the purposes of this Act.
‘‘(b) REQUIRED LOCAL ACTIVITIES.—The eligible
agency shall require that each eligible provider receiving
a grant under section 513 use the grant to establish or
operate 1 or more programs that provide instruction or
services in 1 or more of the following categories:
‘‘(1) Adult education and literacy services.
‘‘(2) Family literacy services.
‘‘(3) English literacy programs.
‘‘(c) STATE-IMPOSED REQUIREMENTS.—Whenever a
State implements any rule or policy relating to the admin-
istration or operation of a program authorized under this
title that has the effect of imposing a requirement that
is not imposed under Federal law (including any rule or
policy based on a State interpretation of a Federal statute,
regulation, or guideline), it shall identify, to eligible pro-
viders, the rule or policy as being State-imposed.
‘‘SEC. 515. FISCAL REQUIREMENTS AND RESTRICTIONS RE-
LATED TO USE OF FUNDS.
‘‘(a) SUPPLEMENT
NOT SUPPLANT.—Funds made
available under this part for adult education and literacy
186
activities shall supplement, and may not supplant, other
public funds expended to carry out activities described in
section 514.
‘‘(b) MAINTENANCE OF EFFORT.—
‘‘(1) IN GENERAL.—
‘‘(A) DETERMINATION.—For each pro-
gram year and each eligible agency, the Sec-
retary shall determine whether the fiscal effort
per student, and the aggregate expenditures, of
such eligible agency for activities described in
section 514 for the program year preceding the
program year for which the determination is
made, was less than, equaled, or exceeded such
effort and expenditures for activities described
in such section for the second program year
preceding the program year for which the deter-
mination is made.
‘‘(B) PROPORTIONATE REDUCTION.—Sub-
ject to paragraphs (2), (3), and (4), for any
program year with respect to which the Sec-
retary determines under subparagraph (A) that
the fiscal effort and the aggregate expenditures
of an eligible agency for the preceding program
year were less than such effort and expendi-
187
tures for the second preceding program year,
the Secretary—
‘‘(i) shall determine the percentage
decreases in such effort and in such ex-
penditures; and
‘‘(ii) shall decrease the payment made
under this part for such program year to
the agency for adult education and literacy
activities by the lesser of such percentages.
‘‘(2) COMPUTATION.—In computing the fiscal
effort and aggregate expenditures under paragraph
(1), the Secretary shall exclude capital expenditures,
special one-time project costs, and similar windfalls.
‘‘(3) DECREASE IN FEDERAL SUPPORT.—If the
amount made available for adult education and lit-
eracy activities under this part for a fiscal year is
less than the amount made available for adult edu-
cation and literacy activities under this part for the
preceding fiscal year, then the fiscal effort per stu-
dent and the aggregate expenditures of an eligible
agency required in order to avoid a reduction under
paragraph (1)(B) shall be decreased by the same
percentage as the percentage decrease in the amount
so made available.
188
‘‘(4) WAIVER.—The Secretary may waive the
requirement of paragraph (1)(B) (with respect to
not more than 5 percent of expenditures required for
the preceding fiscal year by any eligible agency) for
1 program year only, after making a determination
that such waiver would be equitable due to excep-
tional or uncontrollable circumstances affecting the
ability of the eligible agency to meet such require-
ments, such as a natural disaster or an unforeseen
and precipitous decline in financial resources. No
level of funding permitted under such a waiver may
be used as the basis for computing the fiscal effort
or aggregate expenditures required under this sub-
section for years subsequent to the year covered by
such waiver. The fiscal effort and aggregate expendi-
tures for the subsequent years shall be computed on
the basis of the level of funding that would, but for
such waiver, have been required.
‘‘(c) EXPENDITURES OF NON-FEDERAL FUNDS FOR
ADULT EDUCATION
AND LITERACY ACTIVITIES.—For
any program year for which a grant is made to an eligible
agency under this part, the eligible agency shall expend,
on programs and activities relating to adult education and
literacy activities, an amount, derived from sources other
than the Federal Government, equal to 25 percent of the
189
amount made available to the eligible agency under this
part for adult education and literacy activities.
‘‘PART B—NATIONAL PROGRAMS
‘‘SEC. 521. NATIONAL INSTITUTE FOR LITERACY.
‘‘(a) PURPOSE.—The National Institute for Literacy
shall—
‘‘(1) provide national leadership with respect to
literacy in the United States;
‘‘(2) coordinate literacy services; and
‘‘(3) serve as a national resource for adult edu-
cation and family literacy by providing the best and
most current information available and supporting
the creation of new ways to offer services of proven
effectiveness.
‘‘(b) ESTABLISHMENT.—
‘‘(1) IN
GENERAL.—There is established the
National Institute for Literacy (in this section re-
ferred to as the ‘‘Institute’’). The Institute shall be
administered under the terms of an interagency
agreement entered into by the Secretary of Edu-
cation with the Secretary of Labor and the Secretary
of Health and Human Services (in this section re-
ferred to as the ‘‘Interagency Group’’). The Inter-
agency Group may include in the Institute any re-
search and development center, institute, or clear-
190
inghouse established within the Department of Edu-
cation, the Department of Labor, or the Department
of Health and Human Services whose purpose is de-
termined by the Interagency Group to be related to
the purpose of the Institute.
‘‘(2) OFFICES.—The Institute shall have offices
separate from the offices of the Department of Edu-
cation, the Department of Labor, and the Depart-
ment of Health and Human Services.
‘‘(3) BOARD RECOMMENDATIONS.—The Inter-
agency Group shall consider the recommendations of
the National Institute for Literacy Advisory Board
(in this section referred to as the ‘‘Board’’) estab-
lished under subsection (d) in planning the goals of
the Institute and in the implementation of any pro-
grams to achieve such goals.
‘‘(4) DAILY OPERATIONS.—The daily operations
of the Institute shall be carried out by the Director
of the Institute appointed under subsection (g).
‘‘(c) DUTIES.—
‘‘(1) IN GENERAL.—In order to provide leader-
ship for the improvement and expansion of the sys-
tem for delivery of literacy services, the Institute is
authorized—
191
‘‘(A) to establish, and make accessible, a
national electronic data base of information
that disseminates information to the broadest
possible audience within the literacy and basic
skills field, and that includes—
‘‘(i) effective practices in the provision
of literacy and basic skills instruction, in-
cluding the integration of such instruction
with occupational skills training;
‘‘(ii) public and private literacy and
basic skills programs and Federal, State,
and local policies affecting the provision of
literacy services at the national, State, and
local levels;
‘‘(iii) opportunities for technical as-
sistance, meetings, conferences, and other
opportunities that lead to the improvement
of literacy and basic skills services; and
‘‘(iv) a communication network for lit-
eracy programs, providers, social service
agencies, and students;
‘‘(B) to coordinate support for the provi-
sion of literacy and basic skills services across
Federal agencies and at the State and local lev-
els;
192
‘‘(C) to coordinate the support of research
and development on literacy and basic skills in
families and adults across Federal agencies, es-
pecially with the Office of Educational Research
and Improvement in the Department of Edu-
cation, and to carry out basic and applied re-
search and development on topics that are not
being investigated by other organizations or
agencies;
‘‘(D) to collect and disseminate informa-
tion on methods of advancing literacy that show
great promise;
‘‘(E) funding a network of State or re-
gional adult literacy resource centers to assist
State and local public and private nonprofit ef-
forts to improve literacy by—
‘‘(i) encouraging the coordination of
literacy services;
‘‘(ii) carrying out evaluations of the
effectiveness of adult education and lit-
eracy activities;
‘‘(iii) enhancing the capacity of State
and local organizations to provide literacy
services; and
193
‘‘(iv) serving as a reciprocal link be-
tween the Institute and providers of adult
education and literacy activities for the
purpose of sharing information, data, re-
search, expertise, and literacy resources;
‘‘(F) to coordinate and share information
with national organizations and associations
that are interested in literacy and workforce de-
velopment;
‘‘(G) to inform the development of policy
with respect to literacy and basic skills; and
‘‘(H) to undertake other activities that
lead to the improvement of the Nation’s literacy
delivery system and that complement other such
efforts being undertaken by public and private
agencies and organizations.
‘‘(2) 
GRANTS, 
CONTRACTS, 
AND
AGREE-
MENTS.—The Institute may make grants to, or
enter into contracts or cooperative agreements with,
individuals, public or private institutions, agencies,
organizations, or consortia of such institutions,
agencies, or organizations to carry out the activities
of the Institute. Such grants, contracts, or agree-
ments shall be subject to the laws and regulations
194
that generally apply to grants, contracts, or agree-
ments entered into by Federal agencies.
‘‘(d) LITERACY LEADERSHIP.—
‘‘(1) FELLOWSHIPS.—The Institute, in con-
sultation with the Board, may award fellowships,
with such stipends and allowances as the Director
considers necessary, to outstanding individuals pur-
suing careers in adult education or literacy in the
areas of instruction, management, research, or inno-
vation.
‘‘(2) 
USE
OF
FELLOWSHIPS.—Fellowships
awarded under this subsection shall be used, under
the auspices of the Institute, to engage in research,
education, training, technical assistance, or other ac-
tivities to advance the field of adult education or lit-
eracy, including the training of volunteer literacy
providers at the national, State, or local level.
‘‘(3) INTERNS AND VOLUNTEERS.—The Insti-
tute, in consultation with the Board, may award
paid and unpaid internships to individuals seeking to
assist the Institute in carrying out its mission. Not-
withstanding section 1342 of title 31, United States
Code, the Institute may accept and use voluntary
and uncompensated services as the Institute deter-
mines necessary.
195
‘‘(e) NATIONAL INSTITUTE FOR LITERACY ADVISORY
BOARD.—
‘‘(1) ESTABLISHMENT.—
‘‘(A) IN GENERAL.—There is established a
National Institute for Literacy Advisory Board.
The Board shall consist of 10 individuals, ap-
pointed by the Interagency Group, from individ-
uals who—
‘‘(i) are not otherwise officers or em-
ployees of the Federal Government; and
‘‘(ii) are representative of entities or
groups described in subparagraph (B).
‘‘(B) ENTITIES OR GROUPS DESCRIBED.—
The entities or groups referred to in subpara-
graph (A) are—
‘‘(i) literacy organizations and provid-
ers of literacy services, including—
‘‘(I) nonprofit providers of lit-
eracy services;
‘‘(II) providers of programs and
services involving English language in-
struction; and
‘‘(III) providers of services re-
ceiving assistance under this title;