137
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
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.
138
‘‘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 and dislocated workers in the State, in accord-
ance 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—
‘‘(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
139
‘‘(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
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-
140
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
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
141
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
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.—
142
‘‘(A) 
RESERVATION
FOR
OUTLYING
AREAS.—
‘‘(i) IN GENERAL.—Of the amount al-
lotted under subsection (a)(2)(A), 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-
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 dislocated worker employment
143
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
‘‘(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
144
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-
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.
145
‘‘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;
‘‘(iii) incentives for program coordina-
tion and integration, performance awards,
and research and demonstrations;
‘‘(iv) implementation of innovative in-
cumbent worker training programs, which
146
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, dem-
onstration projects, and the provision of
employment and training services 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;
‘‘(viii) support for the identification of
eligible training providers as required
under section 124; and
‘‘(ix) implementation of innovative
programs for displaced homemakers and
147
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-
er unit, working in conjunction with the
local workforce development board and the
chief elected official in an affected local
workforce development area; and
148
‘‘(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.—Such
activities may include those activities described
in paragraph (1)(B).
‘‘(D) LIMITATION.—Of the amount re-
served by the Governor under subparagraph (A)
not more than 10 percent of the total amount
allotted to the State under section 312(b)(2) for
a fiscal year may be used for activities de-
scribed in paragraph (1)(B) and of that amount
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.—
‘‘(A) IN GENERAL.—The Governor of the
State shall allocate the remainder of the
149
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)(B), shall
be used by a local workforce development area
to contribute proportionately to the costs of the
local full service employment and training deliv-
ery system, and to pay for services provided to
adults, in the local area, consistent with section
314.
‘‘(ii) Funds allocated under paragraph
(2)(C), shall be used by a local workforce devel-
opment area to contribute proportionately to
the costs of the local full service employment
and training delivery 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
102, and after consultation with local chief
150
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
ALLOCATIONS.—
‘‘(i) ADULT EMPLOYMENT AND TRAIN-
ING FORMULA ALLOCATIONS.—Each State
shall allocate not less than 70 percent of
the remainder of funds described in sub-
section (a)(1)(A) to workforce development
areas within the State pursuant to the for-
mula contained in clause (ii) for the provi-
sion of adult employment and training
services in accordance with section 314.
‘‘(ii) FORMULA.—Of the amounts de-
scribed in clause (i)—
‘‘(I) 331⁄3 percent shall be allo-
cated on the basis of the relative num-
ber of unemployed individuals residing
in areas of substantial unemployment
in each workforce development area as
151
compared to the total number of such
unemployed individuals in all such
areas of substantial unemployment in
the State;
‘‘(II) 331⁄3 percent shall be allo-
cated on the basis of the relative ex-
cess number of unemployed individ-
uals who reside in each workforce de-
velopment area as compared to the
total excess number of unemployed in-
dividuals in all workforce development
areas in the State; and
‘‘(III) 331⁄3 percent shall be allo-
cated on the basis of the relative num-
ber of economically disadvantaged
adults in each workforce development
area as compared to the total number
of 
disadvantaged 
adults 
in 
all
workforce development areas in the
State.
‘‘(iii) 
ADULT
EMPLOYMENT
AND
TRAINING DISCRETIONARY ALLOCATION.—
The State, through the collaborative proc-
ess, is authorized to allocate not more than
30 percent of the remainder of funds de-
152
scribed 
in 
subsection 
(a)(1)(A) 
to
workforce development areas for the provi-
sion of adult employment and training
services in accordance with section 314.
Such funds shall be allocated to urban,
rural, and suburban areas throughout the
State and shall be allocated promptly in
accordance with section 162(e).
‘‘(C) DISLOCATED WORKER EMPLOYMENT
AND TRAINING ALLOCATIONS.—
‘‘(i) DISLOCATED
WORKER
EMPLOY-
MENT
AND
TRAINING
FORMULA
ALLOCA-
TIONS.—Each State shall allocate not less
than 70 percent of the remainder of funds
described 
in 
subsection 
(a)(2)(A) 
to
workforce development areas within the
State pursuant to the formula contained in
clause (ii) for the provision of employment
and training services to dislocated workers
in accordance with section 314.
‘‘(ii) FORMULA.—Of the amounts de-
scribed in clause (i)—
‘‘(I) 331⁄3 percent shall be allo-
cated on the basis of the relative num-
ber of unemployed individuals residing
153
in areas of substantial unemployment
in each workforce development area as
compared to the total number of such
unemployed individuals in all such
areas of substantial unemployment in
the State;
‘‘(II) 331⁄3 percent shall be allo-
cated on the basis of the relative ex-
cess number of unemployed individ-
uals who reside in each workforce de-
velopment area as compared to the
total excess number of unemployed in-
dividuals in all workforce development
areas in the State; and
‘‘(III) 331⁄3 percent shall be allo-
cated on the basis of the relative num-
ber of individuals who have been un-
employed for 15 weeks or more within
each workforce development area of
the State as compared to the total
number of such individuals in all
workforce development areas in the
State.
‘‘(iii) DISLOCATED WORKER EMPLOY-
MENT AND TRAINING DISCRETIONARY AL-
154
LOCATION.—The State, through the col-
laborative process, is authorized to allocate
not more than 30 percent of the remainder
of funds described in subsection (a)(2)(A)
to workforce development areas for the
provision employment and training services
to dislocated workers in accordance with
section 314. Such funds shall be allocated
to urban, rural, and suburban areas
throughout the State and shall be allocated
promptly 
in 
accordance 
with 
section
162(e).
‘‘(3) 
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 for adults
under section 313(b)(2)(B) and for dislocated workers
under section 313(b)(2)(C) shall be used to provide core
services described in section 123(d) to adults and dis-
located workers, respectively, through a full service em-
155
ployment and training delivery system in accordance with
such section.
‘‘(b) INTENSIVE SERVICES.—
‘‘(1) IN
GENERAL.—Amounts allocated for
adults under section 313(b)(2)(B) and for dislocated
workers under section 313(b)(2)(C) shall be used to
provide intensive services to adults and dislocated
workers, respectively—
‘‘(A)(i) who are unable to obtain employ-
ment through core services under subsection
(a); and
‘‘(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
156
‘‘(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—
‘‘(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).
157
‘‘(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 for
adults under section 313(b)(2)(B) and for dislocated
workers under section 313(b)(2)(C) shall be used to
provide training services to adults and dislocated
workers, respectively—
‘‘(A) who are unable to obtain employment
through core services under subsection (a);
‘‘(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.
158
‘‘(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
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.
159
‘‘(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.
‘‘(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.—
160
‘‘(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—
‘‘(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-
161
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
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-
162
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
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