I
103D CONGRESS
2D SESSION
H. R. 4040
To establish a comprehensive system of reemployment services, training and
income support for permanently laid off workers, to facilitate the estab-
lishment of one-stop career centers to serve as a common point of
access to employment, education and training information and services,
to develop an effective national labor market information system, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 16, 1994
Mr. ROSTENKOWSKI (by request) (for himself and Mr. FORD of Michigan) in-
troduced the following bill; which was referred jointly to the Committees
on Education and Labor and Ways and Means
MAY 27, 1994
Additional sponsors: Mr. HOCHBRUECKNER, Mr. BRYANT, Ms. DELAURO, Mr.
FAZIO, Mr. FORD of Tennessee, Mr. GEJDENSON, Mr. GEPHARDT, Mr.
HINCHEY, Mr. JOHNSTON of Florida, Mr. MATSUI, Mr. MILLER of Cali-
fornia, Mr. MURTHA, Mr. SABO, Mr. SAWYER, Mr. MCCURDY, Mr.
WHEAT, Mr. KOPETSKI, Mr. LEVIN, Mr. MARTINEZ, Mr. WILLIAMS, Mr.
GIBBONS, Mr. FRANK of Massachusetts, Mr. RAHALL, Mr. MCDERMOTT,
Ms. ESHOO, Mr. BERMAN, Ms. ROYBAL-ALLARD, Mr. FARR, Mr. ED-
WARDS of California, Mr. HAMBURG, Mr. DELLUMS, Mr. MINETA, Mr.
BEILENSON, Mr. ACKERMAN, Mr. SWETT, Mr. MAZZOLI, Mr. LAFALCE,
Mr. RICHARDSON, Mr. DEFAZIO, Mrs. LOWEY, Mr. SERRANO, Mr.
STARK, Mr. MANTON, Ms. PELOSI, Mr. CARDIN, Ms. HARMAN, Mr.
GENE GREEN of Texas, Mr. SYNAR, Mr. ROMERO-BARCELO´, Mr. AN-
DREWS of New Jersey, Mr. ANDREWS of Texas, and Mr. COYNE
A BILL
To establish a comprehensive system of reemployment serv-
ices, training and income support for permanently laid
off workers, to facilitate the establishment of one-stop
career centers to serve as a common point of access
to employment, education and training information and
services, to develop an effective national labor market
information system, 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 ‘‘Reemployment Act of
1994’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings and purpose.
Sec. 4. Authorization of appropriations.
Sec. 5. Definitions.
TITLE I—COMPREHENSIVE PROGRAM FOR WORKER
REEMPLOYMENT
Sec. 101. Allotment of funds.
Sec. 102. Recapture and use of unexpended funds.
Sec. 103. Eligibility for services.
PART A—STATE AND SUBSTATE DELIVERY SYSTEM
Sec. 111. State administration and oversight.
Sec. 112. Designation and functions of State dislocated worker unit.
Sec. 113. Development and maintenance of State and local labor market infor-
mation system.
Sec. 114. State coordination with worker profiling and retraining income sup-
port programs.
Sec. 115. State supplementary grants for areas of special need.
Sec. 116. State grants for job retention projects.
Sec. 117. Designation of substate administrative structure.
Sec. 118. Establishment of career centers.
Sec. 119. Services to be provided to eligible individuals.
Sec. 120. Certificates of continuing eligibility.
PART B—FEDERAL DELIVERY OF SERVICES
Sec. 131. National discretionary grant program.
Sec. 132. Disaster relief employment assistance.
Sec. 133. Evaluation, research, and demonstrations.
Sec. 134. Capacity building and technical assistance.
Sec. 135. Federal by-pass authority.
PART C—PERFORMANCE STANDARDS AND QUALITY ASSURANCE SYSTEMS
Sec. 151. Customer service compact.
Sec. 152. Performance standards.
Sec. 153. Customer feedback.
Sec. 154. Eligibility requirements for service providers.
PART D—GENERAL REQUIREMENTS
Sec. 161. General requirements.
Sec. 162. Benefits.
Sec. 163. Labor standards.
Sec. 164. Grievance procedure.
PART E—FISCAL ADMINISTRATIVE PROVISIONS
Sec. 171. Program year.
Sec. 172. Prompt allocation of funds.
Sec. 173. Monitoring.
Sec. 174. Fiscal controls; sanctions.
Sec. 175. Reports, recordkeeping and investigations.
Sec. 176. Administrative adjudication.
Sec. 177. Nondiscrimination.
Sec. 178. Judicial review.
Sec. 179. Administrative provisions.
Sec. 180. Obligational authority.
Sec. 181. Criminal provisions.
Sec. 182. References.
PART F—MISCELLANEOUS PROVISIONS
Sec. 191. Effective date.
Sec. 192. Repealers.
Sec. 193. Transition.
TITLE II—RETRAINING INCOME SUPPORT AND FLEXIBILITY IN
UNEMPLOYMENT COMPENSATION
PART A—RETRAINING INCOME SUPPORT
Sec. 201. Establishment.
Sec. 202. Eligibility requirements.
Sec. 203. Weekly amounts.
Sec. 204. Limitations on retraining income support.
Sec. 205. Agreements with States.
Sec. 206. Administration absent State agreement.
Sec. 207. Liabilities of certifying and disbursing officers.
Sec. 208. Fraud and recovery of overpayments.
Sec. 209. Penalties.
Sec. 210. Definitions.
Sec. 211. Regulations.
Sec. 212. Effective date.
PART B—RETRAINING INCOME SUPPORT ACCOUNT
Sec. 221. Establishment of retraining income support account.
Sec. 222. Funds for administration.
Sec. 223. Conforming amendments.
Sec. 224. Effective date.
PART C—FINANCING PROVISIONS
Sec. 231. Modifications to Federal unemployment tax.
Sec. 232. Voluntary withholding of Federal individual income tax.
PART D—INTEGRATION OF TRADE-IMPACTED WORKERS INTO THE
COMPREHENSIVE REEMPLOYMENT SYSTEM
Sec. 241. Phaseout of trade adjustment assistance program.
Sec. 242. Temporary program for the certification of trade-impacted workers.
PART E—UNEMPLOYMENT COMPENSATION FLEXIBILITY
Sec. 251. Treatment of short-time compensation programs.
Sec. 252. Treatment of reemployment bonus programs.
Sec. 253. Extension of self-employment assistance program.
Sec. 254. Effective date.
TITLE III—ONE-STOP CAREER CENTER SYSTEM
Sec. 301. Purpose.
PART A—COMPONENTS OF VOLUNTARY ONE-STOP CAREER CENTER SYSTEM
Sec. 311. General requirements.
Sec. 312. Workforce investment boards.
Sec. 313. Establishment of one-stop career centers.
Sec. 314. Services to be provided through one-stop career centers.
Sec. 315. Participating programs.
Sec. 316. Operating agreements.
Sec. 317. Quality assurance systems.
Sec. 318. State human resource investment council.
PART B—GRANTS AND WAIVERS TO PROMOTE THE DEVELOPMENT AND
IMPLEMENTATION OF ONE-STOP CAREER CENTER SYSTEM
Sec. 331. State planning and development grants.
Sec. 332. State implementation grants.
Sec. 333. Waiver of federal statutory and regulatory requirements.
Sec. 334. Pooling of administrative resources.
PART C—ADDITIONAL ACTIVITIES IN SUPPORT OF ONE-STOP CAREER
CENTER SYSTEMS
Sec. 351. Customer service compact.
Sec. 352. Additional State responsibilities.
Sec. 353. Additional Federal responsibilities.
PART D—EFFECTIVE DATE
Sec. 371. Effective date.
TITLE IV—NATIONAL LABOR MARKET INFORMATION SYSTEM
Sec. 401. Purpose.
Sec. 402. National strategy.
Sec. 403. Components of system.
Sec. 404. Coordination.
Sec. 405. Effective date.
TITLE V—REINVENTION LABS FOR JOB TRAINING FOR THE
ECONOMICALLY DISADVANTAGED
Sec. 501. Establishment of labs.
Sec. 502. Modification of tuition definition.
Sec. 503. Effective date.
SEC. 3. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds that—
(1) in recent years, both the nature of job un-
certainty and job loss has changed due to such
forces as evolving technologies, corporate restructur-
ing, and intensifying global competition;
(2) a substantial number of Americans lose jobs
because of structural changes in the economy rather
than cyclical downturns, with more than 2 million
full-time workers permanently displaced annually
due to plant closures, production cutbacks, and lay-
offs;
(3) job uncertainty and dislocation carry sub-
stantial emotional and financial costs to the Nation,
with tax revenues and economic output declining
when workers are idle and demands on government
support rise;
(4) all Americans—whether seeking first jobs,
new jobs, or better jobs—confront an economy in
continuous transition and must have access to new
skills and better job and career information in order
to harness this change for increased economic secu-
rity and a rising standard of living;
(5) our current worker adjustment policies were
designed for an earlier economy and often do not
equip Americans to prosper in the current and
emerging atmosphere of constant change;
(6) the primary governmental response to job
loss—the unemployment insurance system—is effec-
tive in providing income support to persons on tem-
porary layoffs, but was not designed to build reem-
ployment security, and is ill-equipped by itself to en-
sure that those people who are permanently laid off
will receive needed reemployment services;
(7) the current government response to disloca-
tion is a patchwork of categorical programs, with
varying eligibility requirements and different sets of
services and benefits;
(8) job search assistance and retraining are not
available to all who need them and income support
is typically not available to facilitate long-term train-
ing;
(9) a lack of comprehensive labor market infor-
mation—
(A) means that job seekers, training pro-
viders, and employers must make hiring and
training decisions based on fragmented and in-
complete data;
(B) adds time and costs to employers’ re-
cruitment efforts; and
(C) hinders the ability of rapidly-growing
firms to recruit and screen new employees;
(10) administrative and regulatory obstacles
hamper the efforts of States and localities to estab-
lish comprehensive reemployment systems for all
their citizens seeking first jobs, new jobs, and better
jobs.
(b) PURPOSE.—It is the purpose of this Act to—
(1) better integrate the existing unemployment
system into a comprehensive, universal, high-quality
system for reemployment, so that it can serve effec-
tively the structurally unemployed as well as those
on temporary layoffs;
(2) promote equity and efficiency by consolidat-
ing the array of specific programs for dislocated
workers into a single comprehensive program for all
workers who have been permanently laid off, regard-
less of the cause of dislocation;
(3) facilitate effective, quality training for per-
manently laid-off workers who want and need it;
(4) provide customer-centered, high-quality em-
ployment and training services that give dislocated
workers the tools to make informed career and train-
ing choices;
(5) provide universal access to basic reemploy-
ment services, including assessment of skill levels
and service needs, labor market information, and job
search assistance;
(6) begin to transform the fragmented employ-
ment and training system through a network of
streamlined, one-stop career centers providing uni-
versal access to all Americans who want and need
new jobs, better jobs, and first jobs;
(7) replicate and expand the innovative efforts
of States and localities to provide comprehensive,
high-quality reemployment and training systems;
and
(8) create a National Labor Market Informa-
tion System that gives employers, training providers,
students, job seekers, and employees high-quality
and timely data on the local economy, labor market,
and other occupational information.
SEC. 4. AUTHORIZATION OF APPROPRIATIONS.
(a) TITLE I.—There are authorized to be appro-
priated to carry out title I—
(1) $1,465,000,000 for fiscal year 1995; and
(2) such sums as may be necessary for each
succeeding fiscal year.
(b) TITLES III AND IV.—There are authorized to be
appropriated to carry out titles III and IV—
(1) $250,000,000 for each of fiscal years 1995
through 1999; and
(2) such sums as may be necessary for each of
fiscal years 2000 through 2003.
SEC. 5. DEFINITIONS.
For the purposes of this Act, the following definitions
apply:
(1) The term ‘‘career center’’ means such cen-
ter established pursuant to section 118.
(2) The term ‘‘community-based organizations’’
means private nonprofit organizations which are rep-
resentative of communities or significant segments
of communities and which provide education, train-
ing and related services.
(3) The term ‘‘economic development agencies’’
includes State and local planning and zoning com-
missions or boards, community development agen-
cies, and other State and local agencies and institu-
tions responsible for regulating, promoting, or assist-
ing in State and local economic development.
(4) The term ‘‘Governor’’ means the chief exec-
utive of any State.
(5) The term ‘‘labor market area’’ means an
economically integrated geographic area within
which individuals can reside and find employment
within a reasonable commuting distance or can
change employment without changing their place of
residence. Such areas shall be identified by the Sec-
retary in accordance with criteria used by the Bu-
reau of Labor Statistics of the Department of Labor
or the Bureau of the Census of the Department of
Commerce in defining such areas.
(6) The term ‘‘local elected official’’ means the
chief elected executive officer of a unit of general
local government in a substate area.
(7) The term ‘‘nontraditional employment’’ as
applied to women refers to occupations or fields of
work where women comprise less than 25 percent of
the individuals employed in such occupation or field
of work.
(8) The term ‘‘one-stop career center’’ means
such center established pursuant to section 313.
(9) The term ‘‘private industry council’’ means
the private industry council established under sec-
tion 102 of the Job Training Partnership Act.
(10) The term ‘‘representatives of employees’’
means representatives from labor organizations (in-
cluding local, State, or national bodies, as appro-
priate) where such organization represents a sub-
stantial number of employees.
(11) The term ‘‘Secretary’’ means the Secretary
of Labor.
(12) The term ‘‘service delivery area’’ means
such an area as established in section 101 of the
Job Training Partnership Act.
(13) The term ‘‘service provider’’ means a pub-
lic agency, private nonprofit organization, or private-
for-profit entity that delivers basic reemployment,
intensive reemployment, educational, training, or
supportive services.
(14) The term ‘‘State’’ means any of the sev-
eral States, the District of Columbia, and the Com-
monwealth of Puerto Rico.
(15) The term ‘‘State council’’ means the State
job training coordinating council established under
section 122 of the Job Training Partnership Act.
(16) The term ‘‘State Human Resource Invest-
ment Council’’ means the council established under
section 701 of the Job Training Partnership Act.
(17) The term ‘‘substate area’’ means that geo-
graphic area in a State established pursuant to
section 117.
(18) The term ‘‘substate grantee’’ means that
agency, organization, or consortium thereof selected
to administer programs pursuant to section 117(b).
(19) The term ‘‘unit of general local govern-
ment’’ means any general purpose political subdivi-
sion of a State which has the power to levy taxes
and spend funds, as well as general corporate and
police powers.
TITLE I—COMPREHENSIVE PROGRAM FOR
WORKER REEMPLOYMENT
SEC. 101. ALLOTMENT OF FUNDS.
(a) IN GENERAL.—Of the funds appropriated pursu-
ant to section 4(a) for any fiscal year, the Secretary
shall—
(1) allot 75 percent among the States in ac-
cordance with subsection (b); and
(2) reserve 25 percent to carry out part B, sub-
ject to the reservation required by subsection (e).
(b) ALLOTMENT AMONG STATES.—(1) Subject to the
provisions of paragraphs (2) and (3), the Secretary shall
allot the amount available in each fiscal year under sub-
section (a)(1) on the basis of the following factors:
(A) One-third of such amount shall be allotted
among the States on the basis of the relative num-
ber of unemployed individuals who reside in each
State as compared to the total number of unem-
ployed individuals in all the States.
(B) One-third of such amount shall be allotted
among the States on the basis of the relative excess
number of unemployed individuals who reside in
each State as compared to the total excess number
of unemployed individuals in all the States. For pur-
poses of this paragraph, the term ‘‘excess number’’
means the number which represents unemployed in-
dividuals in excess of 4.5 percent of the civilian labor
force in the State.
(C) One-third of such amount shall be allotted
among the States on the basis of the relative num-
ber of individuals who have been unemployed for
more than 26 weeks and who reside in each State
as compared to the total number of such individuals
in all the States.
(2) As soon as satisfactory data are available under
section 133(b)(2), the Secretary shall allot the amount
available in each fiscal year under subsection (a)(1) as fol-
lows:
(A) 25 percent of such amount shall be allotted
on the basis of each of the factors described in sub-
paragraphs (A), (B), and (C) of paragraph (1), re-
spectively, for a total of 75 percent of the amount
allotted; and
(B) 25 percent of such amount shall be allotted
on the basis of the relative number of dislocated
workers who reside in each State as compared to the
total number of dislocated workers in all States.
(3)(A) 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.
(B) No State shall be allotted more than 130 percent
of its allotment percentage for the fiscal year preceding
the fiscal year for which the determination is made.
(C)(i) Except as provided in clause (ii), for purposes
of this paragraph the allotment percentage of a State for
a fiscal year shall be the percentage of funds allotted to
the State under this subsection.
(ii) For the purposes of this paragraph, the allotment
percentage for fiscal year 1994 shall be the percentage of
funds allotted to the State under section 302 of the Job
Training Partnership Act.
(c) RESERVATIONS FOR STATE ACTIVITIES.—
(1) The Governor may reserve up to 30 percent
of the amount allotted to the State under subsection
(b) to carry out State activities in accordance with
this title.
(2) Of the amount reserved by the Governor
pursuant to paragraph (1)—
(A) not more than 15 percent shall be
available for the costs of administration of pro-
grams authorized under this title;
(B) not more than 20 percent shall be
available for the costs of administration of pro-
grams authorized under this title and the costs
of technical assistance; and
(C) not more than 5 percent shall be avail-
able to carry out the job retention projects au-
thorized under section 116.
(d) WITHIN STATE DISTRIBUTION.—
(1) The Governor shall allocate the remainder
of the amount allotted to the State under subsection
(b) to substate areas to carry out activities author-
ized under this title based on an allocation formula
prescribed by the Governor. Such formula may be
amended by the Governor not more than once for
each program year. Such formula shall include the
factors described in subsection (b) and such addi-
tional objective and measurable factors as the Gov-
ernor determines are appropriate.
(2) Of the amount allocated to each substate
area pursuant to paragraph (1) for each program
year, not more than 15 percent shall be available for
the costs of administration.
(e) RESERVATION FOR THE TERRITORIES.—Of the
amount reserved by the Secretary under subsection (a)(2)
for any fiscal year, not more than 0.3 percent shall be
allocated among Guam, the Virgin Islands, American
Samoa, the Commonwealth of the Northern Mariana Is-
lands, the Federated States of Micronesia, the Republic
of the Marshall Islands, and Palau to carry out activities
authorized under this title.
(f) RESERVATIONS FOR NATIONAL ACTIVITIES.—Of
the remainder reserved by the Secretary under subsection
(a)(2):
(1) For each of fiscal years 1995 through
1999—
(A) not less than 80 percent shall be avail-
able for national discretionary grants under sec-
tions 131 and 132; and
(B) not more than 20 percent shall be
available for—
(i) evaluation of program perform-
ance, research, and pilot and demonstra-
tion projects described in section 133; and
(ii) capacity building, staff develop-
ment and training, and technical assist-
ance described under section 134.
(2) For fiscal year 2000 and each succeeding
fiscal year—
(A) not less than 85 percent shall be avail-
able for national discretionary grants under sec-
tions 131 and 132; and
(B) not more than 15 percent shall be
available for—
(i) evaluation of program perform-
ance, research, and pilot and demonstra-
tion projects described in section 133; and
(ii) capacity building, staff develop-
ment and training, and technical assist-
ance described under section 134.
SEC. 102. RECAPTURE AND USE OF UNEXPENDED FUNDS.
(a) IN GENERAL.—For program years beginning
July 1, 1996 and thereafter, the Secretary shall, in ac-
cordance with this section—
(1) recapture funds appropriated for such pro-
gram years that are available for recapture, and
(2) use the funds recaptured under paragraph
(1) to carry out the national discretionary grant pro-
gram under section 131.
(b) AMOUNTS AVAILABLE
FOR RECAPTURE.—The
amount available for recapture is equal to—
(1) the amount by which the unexpended bal-
ance of the State allotment (under section 101(b))
at the end of the program year prior to the program
year for which the determination under this section
is made exceeds 20 percent of such allotment for
that prior program year, plus
(2) the unexpended balance of the State allot-
ment from any program year prior to the program
year in which there is such excess.
(c) EXCLUSION.—For purposes of this section, funds
awarded to the State from the discretionary funds of the
Secretary pursuant to sections 131 and 132 shall not be
included in calculating the amounts available for recap-
ture.
(d) METHOD OF RECAPTURE.—The Secretary may,
as a method of recapturing funds for the purposes of sub-
section (a)(1), reduce the allotment to the State under sec-
tion 101(b) for the program year subsequent to the pro-
gram year for which the determination is made by an
amount equal to the amount available for recapture.
SEC. 103. ELIGIBILITY FOR SERVICES.
(a) IN GENERAL.—An individual shall be eligible to
receive services under this title if such individual—
(1) has been permanently laid off from full-
time, part-time, or seasonal (including farmworkers
and fishermen) employment within the preceding 12-
month period, and
(A) such individual is unlikely to obtain
employment in the same or similar occupation
due to obsolete skills or a lack of employment
opportunities; or
(B) such layoff resulted from any perma-
nent closure or any substantial layoff at a
plant, facility or enterprise;
(2) has received a notice that such individual
will be permanently laid off, and
(A) such individual is unlikely to obtain
employment in the same or similar occupation
due to obsolete skills or a lack of employment
opportunities; or
(B) such layoff will result from any perma-
nent closure or substantial layoff at a plant, fa-
cility, or enterprise;
(3) is employed at a facility where the employer
has publicly announced that such facility will be
closed within one year and such individual is un-
likely to—
(A) remain employed with such employer
at another location; or
(B) retire permanently from the labor
force on or before such closure;
(4) is long-term unemployed and has limited op-
portunities for employment in the same or similar
occupation in which such individual was previously
employed;
(5) was self-employed (including farmers, fish-
ermen and ranchers) and is unemployed as a result
of general economic conditions in the community in
which such individual resides or because of natural
disasters;
(6) is certified as eligible under the transitional
certification of trade impacted workers program au-
thorized under part D of title II of this Act; or
(7) was identified and referred to the program
under this title, in accordance with regulations is-
sued by the Secretary, by a State worker profiling
system established under section 303(j) of the Social
Security Act.
(b) DISPLACED HOMEMAKERS.—An individual who is
a displaced homemaker shall be eligible to receive services
described in section 119(b) and such other services au-
thorized under this title as the Governor determines are
appropriate to provide to such individuals if—
(1) the displacement occurred within the pre-
ceding 12-month period,
(2) such individual is unemployed, and
(3) such individual meets the requirements re-
lating to services provided under this title, other
than the requirements of subsection (a).
(c) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘permanently laid off’’ means a
layoff under which a recall is not expected within 26
weeks.
(2) The term ‘‘long-term unemployed’’ means a
period of unemployment defined by the Governor,
except that such period shall not be less than 27
weeks.
(3) The term ‘‘displaced homemakers’’ has the
same meaning given such term in section 4(29) of
the Job Training Partnership Act.
PART A—STATE AND SUBSTATE DELIVERY
SYSTEM
SEC. 111. STATE ADMINISTRATION AND OVERSIGHT.
The State shall be responsible for developing and op-
erating administrative and management systems which en-
sure proper control and accountability for the use of
funds, in accordance with the requirements of part E of
this title, and the accomplishment of the objectives of this
title.
SEC. 112. DESIGNATION AND FUNCTIONS OF STATE DIS-
LOCATED WORKER UNIT.
(a) IN GENERAL.—The Governor shall designate or
establish a dislocated worker unit at the State level (here-
after referred to as the ‘‘State dislocated worker unit’’)
to carry out the functions described in this section.
(b) FUNCTIONS OF UNIT.—
(1) RAPID
RESPONSE.—The State dislocated
worker unit shall carry out the following rapid re-
sponse activities:
(A) receive notices provided pursuant to
the Worker Adjustment and Retraining Notifi-
cation Act and collect information identifying
the site of other permanent closures and layoffs
affecting 50 or more workers;
(B) establish contact with representatives
of the employer, affected workers and affected
unions, and affected substate grantees within
48 hours of being informed of or otherwise
identifying such closure or layoff;
(C) provide assistance on site within five
working days of being informed of or otherwise
identifying such closure or layoff (unless rep-
resentatives of the affected workers agree to
defer the commencement of assistance), includ-
ing—
(i) the provision of information relat-
ing to, and assistance in obtaining access
to, available programs and services;
(ii) the provision of appropriate reem-
ployment services on an emergency basis;
and
(iii) the provision of basic reemploy-
ment services in a group setting;
(D) promote the formation of worker-man-
agement 
transition 
assistance 
committees,
which meet the requirements of subsection (d),
by—
(i) providing immediate assistance in
the establishment of such committees, in-
cluding—
(I) providing immediate financial
assistance to cover start-up costs of
the committee;
(II) providing a list of individuals
from which the chairperson of the
committee may be selected; and
(III) requesting the list of com-
mittee members from the employer
and union, or providing assistance in
the selection of worker representatives
in the event no union is present; and
(ii) providing technical assistance in
the development by such committees of a
strategy for assessing the employment and
training needs of each affected worker and
for obtaining the services and assistance
necessary to meet those needs, which may
include—
(I) providing technical advice as
well as information on sources of as-
sistance, and
(II) serving as liaison with other
public and private services and pro-
grams;
(E) prepare an action plan for the provi-
sion of reemployment and training services to
eligible individuals, including group counseling,
preliminary assessments, and labor market in-
formation, which may include assistance in
planning for the establishment of an on-site
transition center described in section 115(c).
(2) INFORMATION COLLECTION AND DISSEMI-
NATION.—The State dislocated worker unit shall
carry out the following information collection and
dissemination activities:
(A) provide to employers and employees
throughout the State information relating to
the Worker Adjustment and Retraining Notifi-
cation Act, including the requirements of such
Act, and information relating to the eligibility
requirements and services and benefits available
under this title;
(B) collect information relating to—
(i) economic dislocation, including po-
tential closings and layoffs and the impact
of closures and layoffs to which such unit
has responded, and
(ii) available programs and resources
within the State to serve affected workers;
(C) disseminate the information collected
pursuant to subparagraph (B) to the Governor
to assist in providing an adequate information
base for effective program management, review,
and evaluation; and
(D) disseminate information throughout
the State on the services and activities carried
out by the State dislocated worker unit.
(3) PROGRAM SUPPORT.—The State dislocated
unit shall carry out the following program support
activities:
(A) provide technical assistance and advice
to substate grantees;
(B) work with employers and representa-
tives of employees in promoting labor-manage-
ment cooperation to achieve the objectives of
this title; and
(C) assist each local community affected by
a mass layoff or plant closing in developing and
implementing an adjustment plan, including as-
sistance in obtaining access to State economic
development assistance.
(4) 
COORDINATION.—The 
State 
dislocated
worker unit shall exchange information and coordi-
nate programs with:
(A) the appropriate economic development
agency and job retention projects authorized
under section 116, for the purpose of identify-
ing potential layoffs and for the purpose of de-
veloping strategies to avert plant closings or
mass layoffs and to accelerate the reemploy-
ment of dislocated workers;
(B) State education, training and social
services programs;
(C) State labor federations;
(D) State-level general purpose business
organizations; and
(E) all other programs available to assist
dislocated workers, including the Employment
Service, the unemployment insurance system,
one-stop career centers established under title
III of this Act, and student financial aid pro-
grams.
(c) COORDINATION WITH CAREER CENTERS.—In
carrying out this section, the State dislocated worker unit
shall coordinate its actions with the affected substate
grantees and career centers.
(d) WORKER-MANAGEMENT
TRANSITION
ASSIST-
ANCE COMMITTEES.—The worker-management transition
assistance committees promoted by the State dislocated
worker unit pursuant to subsection (b)(1)(D) shall ordi-
narily include (but not be limited to) the following:
(1) shared and equal participation by workers
(and their representatives) and management, and
which may include participation from community
representatives as appropriate;
(2) shared financial participation between the
employer and the State, using funds provided under
this title in paying for the operating expenses of the
committee;
(3) a chairperson, to oversee and guide the ac-
tivities of the committee, who shall—
(A) be jointly selected by the worker and
management representatives of the committee,
(B) not be employed or under contract
with or members of the immediate family of
labor or management at the site, and
(C) provide advice and leadership to the
committee and prepare a report on its activities;
and
(4) operations pursuant to a formal agree-
ment, terminated at will by the workers or
management, and terminated for cause by the
Governor.
(e) COVERAGE OF LAYOFFS.—The Governor may au-
thorize the provision of the rapid response activities de-
scribed in subsection (b)(1) to layoffs of less than 50
workers if such layoffs are determined by the Governor
to have a significant adverse economic impact on a local
community.
(f) PLANT BUYOUT STUDY.—In a situation involving
an impending permanent closure or substantial layoff, a
State may provide funds, where other public or private re-
sources are not expeditiously available, for a preliminary
assessment of the advisability of having a company or
group, including the workers, purchase the plant and con-
tinue it in operation. Such assessment shall not include
a feasibility study relating to such purchase.
(g) PROHIBITION ON TRANSFER OF RESPONSIBIL-
ITY.—The State shall not transfer the responsibility for
the rapid response assistance functions of the State unit
under this section to another entity, but the State may
carry out such functions through agreement, grant, con-
tract, or other arrangement with another entity, such as
a substate grantee or a career center.
(h) FEDERAL OVERSIGHT OF RAPID RESPONSE.—
The Secretary shall oversee the administration by each
State of the rapid response assistance services provided
in such State and evaluate the effectiveness, efficiency,
and timeliness of the delivery of such services. The Sec-
retary may establish performance standards relating to
the provision of such services by the State. If the Sec-
retary determines that such services are not being per-
formed adequately, the Secretary shall implement appro-
priate corrective action.
SEC. 113. DEVELOPMENT AND MAINTENANCE OF STATE
AND LOCAL LABOR MARKET INFORMATION
SYSTEMS.
(a) IN GENERAL.— In furtherance of the national
strategy described in section 402 of this Act to establish
a nationwide system of effective labor market information,
the Governor shall identify, or develop, and maintain a
comprehensive labor market information system in the
State that—
(1) promotes the collection, use, exchange, and
dissemination of quality labor market information
that will enhance the employment opportunities
available to permanently laid off workers and other
individuals seeking employment, and
(2) provides support for needed improvements
or adjustments in current labor market information
systems and integrates such systems to meet local
and State labor market needs.
(b) CONTENT.—The labor market information de-
scribed in subsection (a)(1) shall include the information
specified in section 403(a) of this Act relating to the na-
tional labor market information system.
(c) STANDARDS FOR INFORMATION COLLECTION AND
DISSEMINATION.—The Governor shall ensure that data
collection and dissemination systems are developed in ac-
cordance with the technical standards specified in section
403(b) of this Act relating to the national labor market
information system.
(d) COORDINATION OF DATA COLLECTION AND SUR-
VEY
CONSOLIDATION.—Consistent with the technical
standards specified in section 403(b), the Governor shall
ensure, to the extent feasible that—
(1) automated technology will be used in data
collection and dissemination;
(2) the State dislocated worker unit, the sub-
state grantees, and the career centers under this
title have timely access to and exchange information
relating to quality labor market information;
(3) administrative records are designed to re-
duce paperwork; and
(4) available administrative data and multiple
surveys are shared or consolidated to reduce duplica-
tion of record-keeping of State and local agencies.
(e) DESIGN OF STATE SYSTEM.—The Governor shall
designate an agent within the State to be responsible for
oversight and management of a statewide comprehensive
labor market and occupational information system that—
(1) meets the requirements of this section;
(2) provides such training and technical assist-
ance necessary to facilitate the collection of data and
the dissemination of information through the pro-
grams assisted under this title;
(3) provides funding for the State share of the
cooperative agreements authorized in section 402;
and
(4) funds research, evaluation, and demonstra-
tion projects designed to make improvements in the
statewide labor market information system.
(f) COORDINATION OF RESOURCES.—The Governor
shall coordinate the activities carried out under this title
with the labor market information activities carried out
in the State pursuant to other Federal laws and with the
national labor market information program described in
title IV of this Act. In maintaining the system described
under this section, the Governor may use funds that are
otherwise available to the Governor for such purposes
under other Federal laws, such as the Job Training Part-
nership Act and the Wagner-Peyser Act.
(g) METHODS
OF COLLECTION
AND DISSEMINA-
TION.—In order to facilitate the collection and dissemina-
tion of the data described in subsection (b), the Governor
shall:
(1) Identify and utilize cost-effective methods
for obtaining such data as are necessary to carry out
this section which, notwithstanding any other provi-
sion of law, may include access to earnings records,
State employment security records, records collected
under the Federal Insurance Contributions Act
(chapter 21 of the Internal Revenue Code of 1986),
State aid to families with dependent children
records, secondary and post-secondary education
records, and similar records or measures, with ap-
propriate safeguards to protect the confidentiality of
the information obtained; and
(2) Publish and make available labor market
and occupational supply and demand information
and career information to State agencies, public
agencies, libraries, employers, and individuals who
are in the process of making career choices.
SEC. 114. COORDINATION WITH WORKER PROFILING AND
RETRAINING INCOME SUPPORT PROGRAMS.
(a) WORKER PROFILING.—The Governor shall co-
ordinate programs under this title with the worker
profiling system authorized under title III of the Social
Security Act. Such coordination shall include methods for
ensuring the prompt referral, in accordance with regula-
tions issued by the Secretary, of the claimants identified
under such profiling system to career centers authorized
under this title, and the sharing of relevant information.
(b) RETRAINING INCOME SUPPORT.—The Governor
shall coordinate programs under this title with the retrain-
ing income support program authorized under part A of
title II of this Act.
SEC. 115. STATE SUPPLEMENTARY GRANTS FOR AREAS OF
SPECIAL NEED.
(a) IN GENERAL.—The Governor may award grants
to provide the services authorized under section 119 to eli-
gible individuals in areas of the State experiencing sub-
stantial increases in the number of eligible individuals due
to plant closures, base closures and mass layoffs.
(b) ELIGIBLE ENTITIES.—The grants authorized
under subsection (a) may be awarded to—
(1) the substate grantees in the areas affected
by such closures and mass layoffs;
(2) employers and employer associations;
(3) transition assistance committees and other
employer-employee entities;
(4) representatives of employees;
(5) industry consortia; and
(6) State agencies.
(c) ESTABLISHMENT OF ADDITIONAL SERVICE CEN-
TERS.—
(1) IN GENERAL.—The Governor may use the
grant funds available under this section to establish
a center, including an on-site transition center de-
scribed in paragraph (2), at the site of a plant clo-
sure, base closure or mass layoff to provide the serv-
ices described in section 119. Such center shall be
established after formal consultation with the sub-
state grantee for the affected area and shall be oper-
ated in coordination with the career centers in the
affected area.
(2) ON-SITE
TRANSITION
CENTERS.—Funds
available under this section may be used to establish
a transition center that—
(A) is located at the site of a plant closure,
base closure, or mass layoff for the purpose of
providing reemployment services to eligible indi-
viduals affected by such layoff or closure,
(B) includes substantial funding from
sources other than public funds,
(C) is operated with the concurrence and
participation of affected workers and their rep-
resentatives and the affected employer, includ-
ing the worker-management transition assist-
ance committee established in accordance with
section 112(d) if such committee is established,
(D) provides the reemployment services de-
scribed in sections 119 (b) and (c) directly or
through contracts with other entities, such as
outplacement agencies, and
(E) is administered in coordination with
the career centers in the substate area, includ-
ing arrangements to ensure that the affected
workers have the opportunity to receive services
at the career centers in addition to or in lieu of
receiving such services at the transition center.
SEC. 116. STATE GRANTS FOR JOB RETENTION PROJECTS.
(a) IN GENERAL.—The Governor may, consistent
with the limitation contained in section 101(c)(2)(B),
award grants to assist projects that—
(1) provide services to upgrade the skills of em-
ployed workers who are at risk of being permanently
laid off; and
(2) assist in retraining employed workers in
new technologies and work processes that will facili-
tate the conversion or restructuring of businesses
into high performance work organizations and avert
plant closings or substantial layoffs.
(b) STATE
AND EMPLOYER CONTRIBUTION RE-
QUIRED.—In order for a project to be eligible for assist-
ance under subsection (a), the amount of the grant to be
awarded shall be matched by an equal amount provided
by a combination of—
(1) funds provided by the State, from funds
other than federal funds; and
(2) funds provided by the affected employers or
businesses.
(c) CONSULTATIONS.—Prior to awarding grants
under this section, the Governor shall consult with unions
representing affected workers regarding the proposed
projects.
SEC. 117. ESTABLISHMENT OF SUBSTATE ADMINISTRATIVE
STRUCTURE.
(a) DESIGNATION OF SUBSTATE AREAS.—
(1) The Governor of each State shall, after con-
sultation with the State council and local elected of-
ficials, designate substate areas for the State.
(2) Each service delivery area within a State
shall be included within a substate area and no serv-
ice delivery area shall be divided among two or more
substate areas.
(3) In making designations of substate areas,
the Governor shall consider—
(A) the availability of services throughout
the State;
(B) the capability to coordinate the deliv-
ery of services with other job training, human
services and economic development programs;
and
(C) the geographic boundaries of labor
market areas within the State.
(4) Subject to paragraphs (2) and (3), the Gov-
ernor—
(A) shall designate as a substate area any
single service delivery area that—
(i) has a population of 200,000 or
more, and
(ii) requests such designation;
(B) shall designate as a substate area any
two or more contiguous service delivery areas—
(i) that in the aggregate have a popu-
lation of 200,000 or more, and
(ii) that request such designation; and
(C) shall designate as a substate area any
concentrated employment program grantee for
a 
rural 
area 
described 
in 
section
101(a)(4)(A)(iii) of the Job Training Partner-
ship Act.
(5) The Governor may deny a request for des-
ignation under paragraph (4)(B) if the Governor de-
termines that such designation would not be consist-
ent with the effective delivery of services to eligible
dislocated workers in various labor market areas (in-
cluding urban and rural areas) within the State, or
would not otherwise be appropriate to carry out the
purposes of this title.
(6) The Governor shall not designate as a sub-
state area any area with a population of less than
200,000 unless such area meets the requirements of
paragraph (4)(C).
(7) From the funds reserved under section
101(c)(1), the Governor may award grants to en-
courage the formation of substate areas that are
based on labor market areas.
(8) The Governor may designate as substate
areas under this title areas designated as substate
areas under title III of the Job Training Partnership
Act prior to the enactment of this Act if such areas
meet the requirements of this subsection.
ing, counseling, placement, monitoring, followup,
and other services to be provided directly by the
brokering contractor within its own organization, the
services to be provided by the employers conducting
the on-the-job training, and the services to be pro-
vided, with or without cost, by other agencies and
subcontractors.
(C) If a brokering contractor enters into a con-
tract with a subcontractor to provide training or
other services, the brokering contractor shall ensure,
through on-site monitoring, compliance with the sub-
contract terms prior to making payment to the sub-
contractor.
(4) In accordance with regulations issued by the
Secretary, on-the-job training contracts under this
title shall not be entered into with employers who
have received payments under previous contracts
and have exhibited a pattern of failing to provide on-
the-job training participants with continued long-
term employment as regular employees with wages
and employment benefits (including health benefits)
and working conditions at the same level and to the
same extent as other employees working a similar
length of time and doing the same type of work.
205
outs, individuals with disabilities, older
workers with obsolete skills, economically
disadvantaged individuals, and others who
face serious barriers to employment;
(iii) acquisition of skills pursuant to a
skill standards and skill certification sys-
tem endorsed by the National Skill Stand-
ards Board established under the Goals
2000: Educate America Act;
(iv) satisfaction of participants with
services provided and the employment out-
comes;
(v) satisfaction of employers with job
performance of individuals placed; and
(vi) measures of the cost efficiency of
the one-stop career centers.
(B) In the case of the workforce invest-
ment boards—
(i) job openings received from employ-
ers, including the proportion of employers
in the one-stop service area that list jobs
with the one-stop career centers;
(ii) job openings filled through the
one-stop career centers; and