(B) CONTENTS.—An applicant may not be
selected as a career center operator under this
title unless such applicant demonstrates to the
satisfaction of the substate grantee the ability
to operate a career center that would—
(i) provide the services described in
section 119;
(ii) utilize automated information sys-
tems to facilitate the exchange of informa-
tion among career centers;
(iii) meet the performance standards
prescribed pursuant to section 152;
(iv) meet the fiscal control require-
ments provided in part E;
(v) administer the process of referring
participants to education and training
services in an objective and equitable man-
ner; and
(vi) meet such other requirements as
the substate grantee determines is appro-
priate.
(C) LEVEL OF WAGES AND BENEFITS.—
The level of wages and benefits paid to non-
managerial employees by an applicant may not
be considered as a factor in the selection of a
career center operator. Other cost factors may
be taken into account in such selection.
(5) PERIOD
OF
SELECTION.—The substate
grantee shall select career center operators pursuant
to the requirements of this subsection once every
four years.
(6) ENFORCEMENT OF HONEST BROKER FUNC-
TIONS.—The substate grantee shall review, at least
once each program year, the education and training
referral practices of any career center that is oper-
ated by an entity that concurrently provides edu-
cation and training services to participants under
this title. If the substate grantee determines that
such center has engaged in a pattern of inappropri-
ate referrals to the education and training services
provided by the operator of such center, the substate
grantee may terminate the agreement to operate
such center or may require such operator to cease
providing education and training services to partici-
pants under this title as a condition for continuing
to operate such center.
(d) ON-SITE TRANSITION CENTERS.—In addition to
the career centers established under this section, a sub-
state grantee may use funds allocated to the substate area
to establish temporary, on-site transition centers that
meet the requirements described in section 115(c)(2).
Such centers may be established pursuant to grants, con-
tracts, or other arrangements with the entities described
in subsection (c)(2) of this section.
SEC. 119. SERVICES TO BE PROVIDED TO ELIGIBLE INDI-
VIDUALS.
(a) IN GENERAL.—Funds allocated to substate areas
pursuant to section 101(d) may be used to provide—
(1) basic reemployment services in accordance
with subsection (b);
(2) intensive reemployment services in accord-
ance with subsection (c);
(3) education and training services in accord-
ance with subsection (d);
(4) retraining income support in accordance
with subsection (e);
(5) supportive services in accordance with sub-
section (f); and
(6) supplemental wage allowances for older
workers in accordance with subsection (g).
(b) BASIC REEMPLOYMENT SERVICES.—Each career
center established pursuant to this title shall make avail-
able to eligible individuals the following services:
(1) outreach and provision of information to
make individuals aware of, and encourage the use of,
reemployment and training services, including efforts
to expand awareness of training and placement op-
portunities for hard-to-serve individuals such as
those with limited English proficiency and those with
disabilities;
(2) intake and determination of eligibility for
assistance under this title;
(3) orientation to the information and services
available through such center;
(4) assistance in filing an initial claim for un-
employment compensation;
(5) a preliminary assessment of the skill levels
(including appropriate testing) and service needs of
such individuals, which may include such factors as
basic skills, occupational skills, prior work experi-
ence, employability, interests, aptitudes, and sup-
portive service needs;
(6) information relating to local, regional and
national labor markets, including—
(A) job vacancy listings in such markets,
and
(B) information relating to local occupa-
tions in demand and the earnings and skill re-
quirements for such occupations;
(7) job search assistance, including resume and
interview preparation, and workshops;
(8) job referral and job placement assistance;
(9) information relating to education and job
training programs, including the eligibility require-
ments of and services provided by such programs,
the availability and quality of such programs, and
student financial assistance available for such pro-
grams;
(10) assistance in evaluating whether such indi-
viduals are likely to be eligible for any employment
and training programs administered by the Sec-
retary other than this title;
(11) information collected pursuant to the per-
formance standards and quality assurance require-
ments of part C of this title;
(12) information relating to programs and pro-
viders of dependent care and other supportive serv-
ices available in the local area;
(13) group counseling, which may include peer
counseling, and which shall be available to such indi-
viduals jointly with their immediate families, includ-
ing group counseling relating to stress management
and financial management; and
(14) soliciting and accepting job orders submit-
ted by employers in the substate area, and referring
individuals in accordance with such orders.
(c) INTENSIVE REEMPLOYMENT SERVICES.—
(1) IN GENERAL.—Each career center estab-
lished pursuant to this title shall make available, to
eligible individuals who have received basic reemploy-
ment services under subsection (b) and have been
unable to obtain employment through such services,
the following services:
(A) comprehensive and specialized assess-
ments of the skill levels and service needs of in-
dividuals, which may include—
(i) diagnostic testing and other assess-
ment tools; and
(ii) in-depth interviewing and evalua-
tion to identify employment barriers and
appropriate employment goals;
(B) the development of an individual reem-
ployment plan, which shall identify the employ-
ment goal (including, in appropriate cir-
cumstances, nontraditional employment), appro-
priate achievement objectives, and the appro-
priate combination of services for a participant
to achieve the employment goal;
(C) individualized counseling and career
planning, including peer counseling and coun-
seling and planning relating to nontraditional
employment opportunities;
(D) case management for individuals re-
ceiving education, training and supportive serv-
ices;
(E) job development;
(F) out-of-area job search allowances;
(G) relocation allowances;
(H) assistance in the selection of education
and training providers;
(I) assistance in obtaining income support
for which the individual is eligible, including
student financial assistance, to enable such in-
dividual to participate in training; and
(J) follow-up counseling for individuals
placed in training or employment.
(2) ADDITIONAL CONDITIONS.—
(A) REEMPLOYMENT PLAN.—
(i) JOINT DEVELOPMENT.—The indi-
vidual reemployment plan described in
paragraph (1)(B) shall be developed jointly
by the eligible individual and a career
counselor. Both parties shall sign the plan
and periodically review the progress of the
individual in achieving the objectives set
forth in the plan. In the event of a dis-
agreement over the content of the plan, the
eligible individual shall be provided an op-
portunity to appeal the career counselor’s
recommendation pursuant to section 164.
(ii) EMPLOYMENT
GOAL.—The em-
ployment goal identified under an individ-
ual reemployment plan described under
paragraph (1)(B) shall relate to employ-
ment in an occupation for which there is a
demand in the local area, or in another
area to which the individual is willing to
relocate.
(iii) PROHIBITION
ON
PRIVATE
AC-
TIONS.— Nothing in this section shall be
construed to establish a right for an indi-
vidual to bring a private action to obtain
the services described in the reemployment
plan.
(B) OUT-OF-AREA
JOB
SEARCH
ALLOW-
ANCE.—
(i) IN
GENERAL.—Out-of-area job
search allowances provided under para-
graph (1)(F) shall provide reimbursement
to the individual of not more than 90 per-
cent of the cost of necessary job search ex-
penses, up to a maximum payment speci-
fied by the Secretary in regulations.
(ii) CRITERIA
FOR
GRANTING
JOB
SEARCH ALLOWANCES.—A job search al-
lowance may be granted only—
(I) to assist an eligible individual
in securing a job within the United
States; and
(II) where the career center de-
termines that such employee cannot
reasonably be expected to secure suit-
able employment in the commuting
area in which the worker resides.
(C) RELOCATION ALLOWANCE.—
(i) IN
GENERAL.—Relocation allow-
ances provided under paragraph (1)(G)
may only be granted to assist an eligible
individual in relocating within the United
States and only if the career center deter-
mines that such employee—
(I) cannot reasonably be expected
to secure suitable employment in the
commuting area in which the em-
ployee resides;
(II) has obtained suitable em-
ployment affording a reasonable ex-
pectation of long-term duration in the
area in which the employee wishes to
relocate, or has obtained a bona fide
offer of such employment, and
(III) is totally separated from
employment at the time relocation
commences.
(ii) AMOUNT OF RELOCATION ALLOW-
ANCE.—The amount of any relocation al-
lowance for any eligible individual may not
exceed an amount which is equal to the
sum of—
(I) 90 percent of the reasonable
and necessary expenses, specified in
regulations prescribed by the Sec-
retary, incurred in transporting an in-
dividual and the individual’s family, if
any, and household effects, and
(II) a lump sum equivalent to 3
times the employee’s average weekly
wage in the previous job, up to a max-
imum payment specified by the Sec-
retary in regulations.
(d) EDUCATION AND TRAINING.—
(1) AVAILABLE SERVICES.—Each career center
shall make available a list of eligible providers of—
(A) basic skills training, including remedial
education, literacy training, and English-as-a-
second language instruction;
(B) occupational skills training, provided
either in a classroom or on-the-job; and
(C) other skills-based education and train-
ing that such center considers appropriate,
which may include entrepreneurial training and
training in skills required for high performance
work organizations, such as problem solving
and skills related to the use of new tech-
nologies.
(2) REFERRALS.—An eligible individual who
has an individual reemployment plan developed pur-
suant to subsection (c)(1)(B) that specifies edu-
cation and training services as are necessary to the
reemployment of such individual shall, in consulta-
tion with a career counselor, select a service provider
for such services from the list described in para-
graph (1). The career centers shall refer such indi-
viduals to such service providers and arrange with
the substate grantee for payment to the provider for
the services provided consistent with the limitation
contained in paragraph (5).
(3) ELIGIBLE PROVIDERS.—For the purposes of
this title, an eligible provider of education and train-
ing services is a provider that meets the require-
ments of section 154.
(4) CONTRACT
EXCEPTIONS.—Education and
training services authorized under this title may be
provided pursuant to a contract for services between
the substate grantee and an eligible service provider
in lieu of the referral procedures described in para-
graph (2) if such services—
(A) are customized by a provider to meet
the particular needs of a specific group of eligi-
ble individuals in the substate area; or
(B) are on-the-job training provided by an
employer.
(5) CAP ON TRAINING.—
(A) LIMITATION.—The program under this
title shall not pay an amount in excess of
$4750 for the provision of education and train-
ing to any individual under this subsection over
any 12-month period.
(B) RELATIONSHIP
TO
STUDENT
FINAN-
CIAL ASSISTANCE.—
(i) For purposes of determining a stu-
dent’s need for grant, loan, or work assist-
ance under title IV of the Higher Edu-
cation Act of 1965, the funds provided to
a participant for education and training
under this subsection shall be considered to
be estimated financial assistance not re-
ceived under such title IV for the purpose
of section 471(3) of such Act.
(ii) Notwithstanding section 401(b) of
such Act, the funds provided to a partici-
pant for education and training under this
subsection shall be applied to reduce the
student’s cost of attendance (as defined in
section 472 of such Act) prior to determin-
ing the amount of a student’s Federal Pell
Grant award under subpart 1 of part A of
title IV of such Act, except that such re-
duction shall not result in a negative num-
ber.
(iii) Nothing in this Act shall be con-
strued to modify the eligibility require-
ments applicable to students, programs of
study, or institutions of higher education
under title IV of such Act.
(6) LIMIT ON LENGTH OF TRAINING.—No par-
ticipant may receive assistance from funds under
this title for education or training for more than 104
weeks in a five-year period.
(7) APPROVED TRAINING.—
(A) RELATIONSHIP TO INCOME SUPPORT
PROGRAM UNDER TITLE II.—For the purposes
of the program authorized under part A of title
II, the career centers shall be considered an
agency certified by the Secretary to develop a
reemployment plan.
(B) RELATIONSHIP
TO
UNEMPLOYMENT
COMPENSATION.—An eligible individual partici-
pating in education and training services under
this title shall be deemed to be in training with
the approval of the State agency for the pur-
poses of section 3304(a)(8) of the Internal Rev-
enue Code of 1986.
(8) ON-THE-JOB TRAINING.—The provisions of
paragraphs (5), (6), and (7) shall not apply to on-
the-job training provided under this title. Such on-
the-job training shall be provided consistent with the
limitations described in section 161(d).
(e) RETRAINING INCOME SUPPORT.—
(1) IN GENERAL.—Eligible individuals receiving
education and training services pursuant to sub-
section (d) who meet the requirements for receiving
retraining income support under part A of title II of
this Act shall be referred to such program for such
support. For program years 1995 through 1999, in-
dividuals who do not meet the requirements of such
program but who do meet the requirements of para-
graph (2) shall, to the extent appropriated funds are
available, be provided retraining income support in
accordance with this subsection.
(2) ELIGIBILITY.—An eligible individual shall,
to the extent appropriated funds are available, be
provided retraining income support in accordance
with this subsection if such individual—
(A) has been permanently laid off;
(B) either—
(i) had been continuously employed at
the time of such permanent layoff for a pe-
riod of one year or more, but less than
three years, by the employer from whom
such individual has been permanently laid
off; or
(ii) was continuously employed in the
same occupation and industry by an em-
ployer for a period of one year or more and
was, within the preceding 12-month pe-
riod—
(I) separated from such em-
ployer, and
(II) employed in the same occu-
pation and industry by the subsequent
employer from whom such individual
has been permanently laid off;
(C)(i) was entitled, as a result of the layoff
described in subparagraph (A), to (or would
have been entitled to if such individual had ap-
plied therefor) unemployment compensation
under any Federal or State law for a week
within the benefit period—
(I) in which the layoff took place,
or
(II) which began (or would have
begun) by reason of the filing of a
claim for unemployment compensation
by such individual after such layoff;
(ii) has exhausted all rights to any unem-
ployment compensation to which such individual
was entitled (or would have been entitled if
such individual had applied therefor); and
(iii) does not have an unexpired waiting
period applicable to such individual for such un-
employment compensation;
(D) has been enrolled in education or
training pursuant to subsection (d) by—
(i) the end of the 16th week after the
permanent layoff described in subpara-
graph (A), or, if later, the end of the 14th
week after such individual was informed
that the layoff will exceed 6 months; or
(ii) a period that is not in excess of
30 days after the periods described in
clause (i), in cases where the substate
grantee determines, in accordance with
guidelines issued by the Secretary, that
there are extenuating circumstances that
justify such extension, such as a cancella-
tion of a course, a first available enroll-
ment date that is after the periods de-
scribed in subparagraph (A), or the com-
mencement of negotiations for reopening a
plant or facility from which an individual
has been laid off; and
(E) is participating, and making satisfac-
tory progress, in education or training provided
pursuant to subsection (d).
(3) SPECIAL RULES.—
(A) CONTINUOUS EMPLOYMENT.—
(i) For purposes of clause (ii) of para-
graph (2)(B) and subject to the limitations
of clause (ii) of this subparagraph, contin-
uous employment shall be deemed to in-
clude any week in which an individual—
(I) was on employer-authorized
leave for purposes of vacation, sick-
ness, injury or inactive duty or active
duty military service for training,
(II) was on employer-authorized
leave because of circumstances de-
scribed in subsection 102(a) of the
Family and Medical Leave Act of
1993,
(III) did not work because of a
disability that is compensable under a
worker’s compensation law or plan of
a State or the United States,
(IV) had his, or her, employment
interrupted in order to serve as a full-
time representative of a labor organi-
zation in such firm or subdivision,
(V) was on call-up for purposes
of active duty in a reserve status in
the Armed Forces of the United
States, provided such active duty is
‘‘Federal service’’ as defined in 5
U.S.C. 8521(a)(1), or
(VI) was on temporary layoff.
(ii) For the purposes of clause (i), no
more than the following number of weeks
within a one year period may be treated as
weeks of employment—
(I) 7 weeks in the case of weeks
described in subclauses (I) or (IV) of
clause (i), or both;
(II) 12 weeks in the case of
weeks described in subclause (II) of
clause (i); and
(III) 26 weeks in the case of
weeks described in subclauses (III)
and (V) of clause (i).
(B) SAME EMPLOYER.—
(i) For the purposes of clause (ii) of
paragraph (2)(B), employment deemed to
be employment for a single employer shall
include—
(I) all employment that was cov-
ered by a multiemployer plan defined
by section 4001(a)(3) of the Employee
Retirement Income Security Act of
1974;
(II) all employment that was ob-
tained through a single hiring hall,
(III) all employment for the em-
ployer from whom the individual was
laid-off or the predecessor of such em-
ployer, and
(IV) all employment for employ-
ers in a joint employment relation-
ship, as described in section 791.2(b)
of title 29 of the Code of Federal Reg-
ulations, with the individual.
(ii) For purposes of subclause (III) of
clause (i), an employer shall be considered
a predecessor of the employer from whom
the individual was laid-off (hereinafter re-
ferred to as successor employer) if—
(I) the successor employer ac-
quired substantially all the property
used in a trade or business, or used in
a separate unit of a trade or business,
from such employer; and
(II) the individual who was laid
off was employed by such employer in
such trade or business, or in a sepa-
rate unit of such trade or business,
immediately before the acquisition and
was employed by the successor em-
ployer immediately after the acquisi-
tion.
(C) INDIVIDUAL TREATED AS PARTICIPAT-
ING IN EDUCATION OR TRAINING PROGRAM.—
For purposes of subparagraph (E) of paragraph
(2), an individual shall be treated as participat-
ing, and making satisfactory progress, in an
education or training program during any week
which is part of a break from training that does
not exceed 28 days if the break is provided
under such program.
(4) WEEKLY AMOUNT OF PAYMENTS.—The re-
training income support payment payable to an indi-
vidual under this subsection shall be an amount
equal to the most recent benefit amount of the un-
employment compensation payable to such individual
for a week of total unemployment preceding such in-
dividual’s first exhaustion of unemployment com-
pensation related to the permanent layoff reduced
(but not below zero) by—
(A) any training income support provided
for such week to such individual under another
Federal program;
(B) income that is earned from employ-
ment that exceeds one-half the amount equal to
the most recent weekly benefit amount of the
unemployment compensation payable to such
individual for a week of total unemployment.
(5) TOTAL AMOUNT OF PAYMENTS.—The maxi-
mum amount of retraining income support payable
to an individual under this subsection shall be the
amount which is the product of 26 multiplied by the
retraining income support payable to the individual
for a week of total unemployment (as determined
under paragraph (4)), but such product shall be re-
duced by the total sum of extended and additional
compensation to which the individual was entitled in
the worker’s first benefit period as described in
paragraph (2)(C).
(6) ADMINISTRATION.—The substate grantee
shall enter into an agreement with the State agency
charged with the administration of the State unem-
ployment compensation law under which such agency
will administer, on a cost-reimbursable basis, the re-
training income support payments authorized under
this subsection.
(7) CAREER CENTER ROLE.—Each career cen-
ter shall assist an individual receiving education or
training pursuant to subsection (d) in applying for
retraining income support under either part A of
title II of this Act or this subsection depending on
the program for which such individual is eligible. If
such individual is not eligible for either program and
such individual believes income support is necessary
to enable participation in training, the career center
shall assist such individual in applying for other ap-
propriate sources of such income support, including
student financial aid.
(8) INFORMATION DISSEMINATION.—The career
centers shall provide individuals determined eligible
under this title with information relating to the
availability of retraining income support and the re-
quirements relating to eligibility for such support.
Such information shall include the provision, as soon
as is practicable, of information to such individuals
describing the time periods by which enrollment in
education and training must occur in order to be eli-
gible for retraining income support pursuant to
paragraph (2)(D) of this subsection and section 202
of this Act. In addition, the substate grantee shall
make arrangements with the State agency charged
with the administration of the State unemployment
compensation law to make such information gen-
erally available to claimants along with other infor-
mation describing the services available under this
title.
(f) SUPPORTIVE SERVICES.—
(1) IN
GENERAL.—Each career center shall
make available to an eligible individual, either
through direct payment, payment to a service pro-
vider, or arrangements through appropriate agen-
cies, such supportive services as are identified in
such individual’s reemployment plan as necessary to
enable such individual to participate in intensive re-
employment services or education and training serv-
ices.
(2) OPTIONAL SERVICES.—Each career center
may make available to an eligible individual such
supportive services as such center determines is ap-
propriate to enable such individual to participate in
basic reemployment services.
(3) SERVICES
AVAILABLE.—The supportive
services provided pursuant to this subsection may in-
clude, but are not limited to, transportation, depend-
ent care, meals, health care, temporary shelter,
needs-related payments, drug and alcohol abuse
counseling and referral, family counseling, and other
similar services.
(g) SUPPLEMENTAL WAGE ALLOWANCE FOR OLDER
WORKERS.—
(1) IN GENERAL.—An eligible individual may
receive a supplemental wage allowance in the
amount specified in paragraph (2) if—
(A) such individual is age 55 or older,
(B) such individual accepts full-time em-
ployment at a weekly wage that is less than
such individual’s preceding wage,
(C) such individual received basic reem-
ployment services provided under subsection (a)
and was unable to obtain employment with a
higher wage than the employment obtained pur-
suant to subparagraph (B), and
(D) such individual and a career center
counselor agree that participation in the supple-
mental wage allowance is the most effective ad-
justment option available to such individual.
(2) AMOUNT
OF
ALLOWANCE.—The supple-
mental wage allowance payable to an eligible individ-
ual under this section with respect to any week in
which services are performed in such a reemploy-
ment job shall be an amount that—
(A) is equal to three quarters of the dif-
ference between—
(i) the weekly wage received for such
week and
(ii) an amount equal to 80 percent of
the individual’s average weekly wage in the
preceding employment; but
(B) does not exceed 50 percent of the
weekly benefit amount of regular compensation
under the State unemployment compensation
law payable to such individual for a week of
total unemployment.
(3) DURATION OF ALLOWANCES.—An eligible
individual may receive the supplemental wage allow-
ance authorized under this section for a period of up
to 52 weeks.
(4) ADMINISTRATION.—The substate grantee
shall enter into an agreement with the State agency
charged with the administration of the State unem-
ployment compensation law under which such agency
will administer, on a cost-reimbursable basis, the
supplemental wage allowances authorized under this
subsection.
SEC. 120. CERTIFICATES OF CONTINUING ELIGIBILITY.
(a) IN GENERAL.—A career center may issue a cer-
tificate of continuing eligibility for services under this title
if such career center determines that—
(1) such individual is eligible for services under
section 103; and
(2) such individual is accepting employment
and such employment is—
(A) at a wage significantly less than such
individual’s previous wage; or
(B) in an occupation significantly different
from such individual’s previous occupation.
(b) CONTENTS.—A certificate of continuing eligibility
issued pursuant to subsection (a) shall specify a period
of time not to exceed 104 weeks that such individual shall
remain eligible, notwithstanding the requirements of sec-
tion 103, for services under this title and for retraining
income support payments under section 119(e) and part
A of title II of this Act.
(c) ELIGIBILITY
FOR RETRAINING INCOME SUP-
PORT.—With respect to the continuing eligibility of an in-
dividual receiving a certificate under this section for re-
training income support—
(1) the requirements relating to eligibility for
unemployment 
compensation 
under 
sections
119(e)(2)(C) and 202(a)(3) and to the weekly
amount of such support under section 119(e)(4) and
part A of title II shall apply to such individual’s sta-
tus at the time such individual receives a certificate
under this section and shall not apply to such indi-
vidual’s status at the time of separation from subse-
quent employment described in subsection (a)(2);
and
(2) the requirements relating to enrollment in
training in order to qualify for such income support
shall remain applicable except that the 16-week and
14-week periods described in section 119(e)(2) and
section 202(a)(4) shall commence with such individ-
ual’s separation from the subsequent employment
described in subsection (a)(2).
(d) LIMITATION.—An individual may not receive a
wage supplement authorized under section 119(g) after re-
ceiving a certificate of continuing eligibility under this
section.
PART B—FEDERAL SERVICE DELIVERY SYSTEM
SEC. 131. NATIONAL DISCRETIONARY GRANT PROGRAM.
(a) ESTABLISHMENT.—The Secretary shall establish
a program of national grants to address large scale eco-
nomic dislocations that result from plant closures, base
closures, or mass layoffs.
(b) PROJECTS AND SERVICES.—
(1) IN
GENERAL.—The programs assisted
under this section shall be used to provide services
of the type described in section 119 in projects that
relate to—
(A) industry-wide dislocations;
(B) multistate dislocations;
(C) dislocations resulting from reductions
in defense expenditures;
(D) dislocations resulting from inter-
national trade;
(E) dislocations resulting from environ-
mental laws and regulations, including the
Clean Air Act and the Endangered Species Act;
(F) dislocations affecting Native American
tribal entities; and
(G) other dislocations that result from spe-
cial circumstances or that State and local re-
sources are insufficient to address.
(2) COMMUNITY
PROJECTS.—The Secretary
may award grants under this section for projects
that provide comprehensive planning services to as-
sist communities in addressing and reducing the im-
pact of an economic dislocation.
(3) ON-SITE TRANSITION CENTERS.—The Sec-
retary may award grants under this section to
projects that establish on-site transition centers
meeting the requirements described in section
115(c)(2).
(c) ADMINISTRATION.—
(1) APPLICATION.—To receive a grant under
this section, an eligible entity shall submit an appli-
cation to the Secretary at such time, in such man-
ner, and accompanied by such information as the
Secretary determines is appropriate.
(2) ELIGIBLE
ENTITIES.—Grants under this
section may be awarded to—
(A) the State;
(B) the substate grantee;
(C) employers and employer associations;
(D) worker-management transition assist-
ance committees and other employer-employee
entities;
(E) representatives of employees;
(F) community development corporations
and community-based organizations; and
(G) industry consortia.
SEC. 132. DISASTER RELIEF EMPLOYMENT ASSISTANCE.
(a) GENERAL AUTHORITY.—
(1) QUALIFICATION
FOR
FUNDS.—Funds ap-
propriated to carry out this section shall be made
available in a timely manner by the Secretary to the
Governor of any State within which is located an
area that has suffered an emergency or a major dis-
aster as defined in paragraphs (1) and (2), respec-
tively, of section 102 of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (referred
to in this section as the ‘‘disaster area’’).
(2) SUBSTATE ALLOCATION.—Not less than 80
percent of the funds made available to any Governor
under paragraph (1) shall be allocated by the Gov-
ernor to units of general local government located,
in whole or in part, within such disaster areas. The
remainder of such funds may be reserved by the
Governor for use, in concert with State agencies, in
cleanup, rescue, repair, renovation, and rebuilding
activities associated with such major disaster.
(3) COORDINATION.—Funds made available
under this section to governors and units of general
local government shall be expended in consultation
with—
(A) agencies administering programs for
disaster relief provided under the Robert T.
Stafford Disaster Relief and Emergency Assist-
ance Act; and
(B) the administrative entity and the pri-
vate industry council in each service delivery
area within which disaster employment pro-
grams will be conducted under this part.
(b) USE OF FUNDS.—
(1) 
PROJECTS
RESTRICTED
TO
DISASTER
AREAS.— Funds made available under this section
to any unit of general local government in a disaster
area—
(A) shall be used exclusively to provide em-
ployment on projects to provide food, clothing,
shelter, and other humanitarian assistance for
disaster victims and on projects regarding dem-
olition, cleanup, repair, renovation, and recon-
struction of damaged and destroyed structures,
facilities, and lands located within the disaster
area; and
(B) may be expended through public and
private agencies and organizations engaged in
such projects.
(2) 
ELIGIBILITY
REQUIREMENTS.—Notwith-
standing section 103, an individual shall be eligible
to be offered disaster employment under this section
if such individual is temporarily or permanently laid
off as a consequence 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.
(c) DEFINITIONS.—As used in this section, the term
‘‘unit of general local government’’ includes—
(1) in the case of a community conducting a
project in an Indian reservation or Alaska Native
village, the grantee designated under subsection (c)
or (d) or of section 401 of the Job Training Part-
nership Act, or a consortium of such grantees and
the State; and
(2) in the case of a community conducting a
project in a migrant or seasonal farmworker commu-
nity, the grantee designated under section 402(c) of
the Job Training Partnership Act, or a consortium
of such grantees and the State.
SEC. 133. EVALUATION, RESEARCH, AND DEMONSTRATIONS
(a) EVALUATION.—
(1) IN GENERAL.—The Secretary shall provide
for the continuing evaluation of programs conducted
under this title, including the cost-effectiveness of
programs in achieving the purposes of this title.
(2) TECHNIQUES.—
(A) 
METHODS.—Evaluations 
conducted
under paragraph (1) shall utilize recognized
statistical methods and techniques of the behav-
ioral and social sciences, including methodolo-
gies that control for self-selection, where fea-
sible.
(B) ANALYSIS.—Such evaluations may in-
clude cost benefit analyses of programs, and
analyses of the impact of the programs on par-
ticipants and the community, the extent to
which programs meet the needs of various de-
mographic groups, and the effectiveness of the
delivery systems used by the various programs.
(C) EFFECTIVENESS.—The Secretary shall
evaluate the effectiveness of programs author-
ized under this title with respect to—
(i) the statutory goals;
(ii) the performance standards estab-
lished by the Secretary; and
(iii) the extent to which such pro-
grams enhance the employment and earn-
ings of participants, reduce income support
costs, 
improve 
the 
employment 
com-
petencies of participants in comparison to
comparable persons who did not partici-
pate in such programs, and, to the extent
feasible, increase the level of total employ-
ment over the level that would have existed
in the absence of such programs.
(b) RESEARCH.—
(1) IN GENERAL.—The Secretary shall establish
a program of research relating to addressing eco-
nomic dislocation, facilitating the transition of per-
manently laid off workers to reemployment, and up-
grading the skills of employed workers.
(2) MASS
LAYOFF
REPORT.—The Secretary
shall develop and maintain statistical data relating
to permanent layoffs and plant closings. The Sec-
retary shall publish a report based upon such data,
as soon as practicable, after the end of each cal-
endar year. Among the data to be included are—
(A) the number of such closings;
(B) the number of workers displaced;
(C) the location of the affected facilities;
and
(D) the types of industries involved.
(c) DEMONSTRATIONS.—
(1) IN GENERAL.—The Secretary shall conduct
a program of demonstration projects to develop and
improve the methods for addressing economic dis-
location and promoting worker adjustment. Such
program may include projects that—
(A) provide services to upgrade the skills
of employed workers who are at risk of being
permanently laid off; and
(B) assist in retraining employed workers
in new technologies and work processes that
will facilitate the conversion or restructuring of
businesses into high performance work organi-
zations and avert plant closings or substantial
layoffs.
(2) LIMITATION.—Each demonstration project
conducted under this subsection shall not exceed
three years in duration.
(3) EVALUATION COMPONENT.—The Secretary
shall conduct or provide for an evaluation of each of
the projects carried out pursuant to this subsection.
SEC. 134. CAPACITY BUILDING AND TECHNICAL ASSIST-
ANCE.
(a) IN GENERAL.—The Secretary shall provide,
through grants, contracts, or other arrangements, staff
training and technical assistance to States, substate
grantees, career centers, communities, business and labor
organizations, service providers, industry consortia, and
other entities, to enhance their capacity to develop and
deliver effective adjustment assistance services to workers
and to avert plant closings or substantial layoffs. Such as-
sistance may include the development of management in-
formation systems, customized training programs, and the
dissemination of computer-accessed learning systems.
(b) COORDINATION.—The Secretary shall integrate
the activities carried out pursuant to subsection (a) with
the activities of the Capacity Building and Information
and Dissemination Network established under section 453
of the Job Training Partnership Act.
SEC. 135. FEDERAL BY-PASS AUTHORITY.
In the event that any State chooses not to participate
in the program authorized under this title, the Secretary
shall use the amount that would be allotted to such State
under section 101(b) to provide for the delivery in that
State of the programs, activities and services authorized
under this title until such time as such State chooses to
participate in the program.
PART C—PERFORMANCE STANDARDS AND
QUALITY ASSURANCE SYSTEMS
SEC. 151. CUSTOMER SERVICE COMPACT.
The Secretary shall establish a process within each
State, which shall include an annual meeting, to promote
the development of a customer service compact among the
parties administering the programs under this title. Such
compact shall include an informal agreement between the
Secretary, Governor, each substate grantee, and each ca-
reer center relating to—
(1) the shared goals and values that will govern
the administration of the program;
(2) the respective roles and responsibilities of
each party in enhancing the provision of services to
participants, including ensuring that such services
are tailored to the particular needs of participants in
each local area;
(3) methods for ensuring that the satisfaction
of participants with the services received is a pri-
mary consideration in the administration of the pro-
gram; and
(4) such other matters as the parties determine
are appropriate.
SEC. 152. PERFORMANCE STANDARDS.
(a) IN GENERAL.—The Secretary, after consultation
with the Secretary of Education, Governors, substate
grantees, and career centers, shall prescribe performance
standards relating separately to the substate grantees and
the career centers established under this title. Such stand-
ards shall be based on factors the Secretary determines
are appropriate, which may include:
(1) placement, retention and earnings of par-
ticipants in unsubsidized employment, including—
(A) earnings at six months or more after
termination from the program, and
(B) comparability of wages at a specified
period after termination from the program with
wages prior to participation in the program;
(2) acquisition of skills pursuant to a skill
standards and skill certification system endorsed by
the National Skill Standards Board established
under the Goals 2000: Educate America Act;
(3) satisfaction of participants and employers
with services provided and employment outcomes;
and
(4) the quality of services provided to hard-to-
serve populations, such as low income individuals
and older workers.
(b) ADJUSTMENTS.—Each Governor shall, within pa-
rameters established by the Secretary and after consulta-
tion with substate grantees and career centers, prescribe
adjustments to the performance standards prescribed
under section (a) for the substate grantees and career cen-
ters established in the State based on—
(1) specific economic, geographic and demo-
graphic factors in the State and in substate areas
within the State; and
(2) the characteristics of the population to be
served, including the demonstrated difficulties in
serving special populations.
(c) FAILURE TO MEET STANDARDS.—
(1) UNIFORM CRITERIA.—The Secretary shall
establish uniform criteria for determining whether a
substate grantee or career center fails to meet per-
formance standards under this section. Such criteria
may not be modified more than once every two
years.
(2) TECHNICAL
ASSISTANCE.—The Governor
shall provide technical assistance to substate grant-
ees and career centers failing to meet performance
standards under the uniform criteria established
under paragraph (1).
(3) REPORT
ON
PERFORMANCE.—Each Gov-
ernor shall include in an annual report to the Sec-
retary the final performance standards and perform-
ance for each substate grantee and career center
within the State, along with the technical assistance
planned and provided as required under paragraph
(2).
(4) REDESIGNATION.—If a substate grantee or
career center continues to fail to meet such perform-
ance standards for two consecutive program years,
the Governor shall notify the Secretary and the sub-
state grantee or career center of the continued fail-
ure, and shall—
(A) in the case of a substate grantee, ter-
minate the grant agreement and designate an-
other entity as the substate grantee consistent
with the procedures described in section
117(b)(2); and
(B) in the case of a career center, direct
the substate grantee to terminate the agree-
ment to operate such center and to select an-
other entity as a career center in accordance
with the requirements of section 118.
(5) APPEAL.—A substate grantee or career cen-
ter that is the subject of a redesignation under para-
graph (4) may, within thirty days after receiving no-
tice thereof, appeal to the Secretary of Labor to re-
scind such action. The Secretary of Labor shall issue
a decision on the appeal within thirty days of its
receipt.
(d) INCENTIVE GRANTS.—From the funds reserved
pursuant to section 101(c)(1), the Governor of each State
shall award incentive grants to the substate grantees and
career centers in the State exceeding performance stand-
ards established under this section. Such grants shall be
used by the substate grantees and career centers to en-
hance or expand the services provided under this title.
SEC. 153. CUSTOMER FEEDBACK.
(a) METHODS.—Each substate grantee shall estab-
lish methods for obtaining, on a regular basis, information
from eligible individuals and employers who have received
services through a career center regarding the effective-
ness and quality of such services and of service providers.
Such methods may include the use of surveys, interviews,
and focus groups.
(b) ANALYSIS AND DISSEMINATION.—Each substate
grantee shall analyze the information obtained pursuant
to subsection (a) on a regular basis and provide a sum-
mary of such information accompanied by such analysis
to the career center for use in improving the administra-
tion of the programs under this title and assisting partici-
pants in choosing from among eligible service providers.
SEC. 154. ELIGIBILITY REQUIREMENTS FOR PROVIDERS OF
EDUCATION AND TRAINING SERVICES.
(a) ELIGIBILITY REQUIREMENTS.—A provider of
education and training services shall be eligible to receive
funds under this title if such provider—
(1) is either—
(A) eligible to participate in title IV of the
Higher Education Act of 1965, or
(B) determined to be eligible under the
procedures described in subsection (b); and
(2) provides the performance-based information
required pursuant to subsection (c).
(b) ALTERNATIVE ELIGIBILITY PROCEDURE.—(1)
The Governor shall establish an alternative eligibility pro-
cedure for providers of education and training services in
such State desiring to receive funds under this title but
that are not eligible to participate in title IV of the Higher
Education Act of 1965. Such procedure shall establish
minimum acceptable levels of performance for such provid-
ers based on factors and guidelines developed by the Sec-
retary, after consultation with the Secretary of Education.
Such factors shall be comparable in rigor and scope to
those provisions of part H of such title of such Act that
are used to determine an institution of higher education’s
eligibility to participate in programs under such title as
are appropriate to the type of provider seeking eligibility
under this subsection and the nature of the education and
training services to be provided.
(2) Notwithstanding paragraph (1), if the participa-
tion of an institution of higher education in any of the
programs under such title of such Act is terminated, such
institution shall not be eligible to receive funds under this
Act for a period of two years.
(c) PERFORMANCE-BASED INFORMATION.—
(1) CONTENTS.—The Secretary, in consultation
with the Secretary of Education, shall identify per-
formance-based information that is to be submitted
by providers of services desiring to be eligible under
this section. Such information may include informa-
tion relating to—
(A) the percentage of students completing
the programs conducted by the provider,
(B) the rates of licensure of graduates of
the programs conducted by the provider,
(C) the percentage of graduates of the pro-
grams meeting skill standards and certification
requirements endorsed by the National Skill
Standards Board established under the Goals
2000: Educate America Act,
(D) the rates of placement and retention in
employment, and earnings of the graduates of
the programs conducted by the provider,
(E) the percentage of students who ob-
tained employment in an occupation related to
the program conducted by the provider, and
(F) the warranties or guarantees provided
by such provider relating to the skill levels or
employment to be attained by students.
(2) ADDITIONS.—The Governor may, pursuant
to the approval of the Secretary, prescribe additional
performance based information that shall be submit-
ted by providers pursuant to this subsection.
(d) ADMINISTRATION.—
(1) STATE AGENCY.—The Governor shall des-
ignate a State agency to collect, verify, and dissemi-
nate the performance-based information submitted
pursuant to paragraph (1).
(2) APPLICATION.—A provider of education and
training services that desires to be eligible to receive
funds under this title shall submit the information
required under subsection (b) to the State agency
designated under paragraph (1) at such time and in
such form as such State agency may require.
(3) LIST OF ELIGIBLE PROVIDERS.—The State
agency shall compile a list of eligible providers, ac-
companied by the performance-based information
submitted, and disseminate such list and informa-
tion to the substate entities and career centers with-
in the State.
(4) ACCURACY OF INFORMATION.—
(A) IN GENERAL.—If the State agency de-
termines that information concerning a provider
is inaccurate, such provider shall be disqualified
from receiving funds under this title for a pe-
riod of two years, unless such provider can
demonstrate to the satisfaction of the Governor
or his or her designee, that the information was
provided in good faith.
(B) APPEAL.—The Governor shall estab-
lish a procedure for a service provider to appeal
a determination by a State agency that results
in a disqualification under subparagraph (A).
Such procedure shall provide an opportunity for
a hearing and prescribe appropriate time limits
to ensure prompt resolution of the appeal.
(5) ASSISTANCE
IN
DEVELOPING
INFORMA-
TION.—The State agency established pursuant to
paragraph (1) may provide technical assistance to
education and training providers in developing the
information required under subsection (b). Such as-
sistance may include facilitating the utilization of
State administrative records, such as unemployment
compensation wage records, and other appropriate
coordination activities.
(6) CONSULTATION.—The Secretary shall con-
sult with the Secretary of Education regarding the
eligibility of institutions of higher education or other
providers of education and training to participate in
programs under this Act or under title IV of the
Higher Education Act of 1965.
(e) ON-THE-JOB TRAINING EXCEPTION.—
(1) IN
GENERAL.—Providers of on-the-job
training shall not be subject to the requirements of
subsections (a), (b), and (c).
(2) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—The substate grantee shall collect
such performance-based information from on-the-job
training providers as the Secretary may require, and
shall disseminate such information to the career cen-
ters.
PART D—GENERAL REQUIREMENTS
SEC. 161. GENERAL REQUIREMENTS.
Except as otherwise provided, the following condi-
tions are applicable to all programs under this title:
(a) PROHIBITION ON INDUCING RELOCATION OF
ESTABLISHMENTS.—
(1) No funds provided under this title shall
be used or proposed for use to encourage or in-
duce the relocation, of an establishment or part
thereof, that results in a loss of employment for
any employee of such establishment at the
original location.
(2) No funds provided under this title shall
be used for customized or skill training, on-the-
job training, or company specific assessments of
job applicants or employees, for any establish-
ment or part thereof, that has relocated, until
120 days after the date on which such estab-
lishment commences operations at the new loca-
tion, if the relocation of such establishment or
part thereof, results in a loss of employment for
any employee of such establishment at the
original location.
(3) If a violation of paragraph (1) or (2)
is alleged, the Secretary shall conduct an inves-
tigation to determine whether a violation has
occurred.
(4) If the Secretary determines that a vio-
lation of paragraph (1) or (2) has occurred, the
Secretary shall require the State, substate area,
or substate grantee that has violated paragraph
(1) or (2) to—
(A) repay to the United States an
amount equal to the amount expended in
violation of paragraph (1) or (2), in ac-
cordance with subsections (d) or (e) of sec-
tion 174; and
(B) pay an additional amount equal to
the amount required to be repaid under
subparagraph (A), unless the State or sub-
state grantee demonstrates to the Sec-
retary that it neither knew nor reasonably
could have known (after an inquiry under-
taken with due diligence) provided funds in
violation of paragraph (1) or (2).
(5) Amounts received under paragraph
(4)(B) shall be deposited in a special account in
the Treasury for use by the Secretary for carry-
ing out this title.
(b) SPECIAL PROGRAMS.—Efforts shall be made
to develop programs under this title which contrib-
ute to occupational development, upward mobility,
development of new careers, and overcoming sex-
stereotyping in occupations traditional for the other
sex.
(c) JOINT SUBSTATE AGREEMENTS.—Any sub-
state grantee may enter into an agreement or con-
tract with another substate grantee to pay or share
the cost of educating, training, or placing individuals
participating in programs assisted under this Act,
including the provision of supportive services.
(d) ON-THE-JOB TRAINING.—(1) Payments to
employers for on-the-job training under this title
shall not, during the period of such training, average
more than 50 percent of the wages paid by the em-
ployer to such participants, and payments in such
amount shall be deemed to be in compensation for
the extraordinary costs associated with training par-
ticipants under this title and in compensation for the
costs associated with the lower productivity of such
participants.
(2) On-the-job training authorized under this
title for a participant shall be limited in duration to
a period not in excess of that generally required for
acquisition of skills needed for the position within a
particular occupation, but in no event shall exceed 6
months, unless the total number of hours of such
training is less than 500 hours. In determining the
period generally required for acquisition of the skills,
consideration shall be given to recognized reference
material (such as the Dictionary of Occupational
Titles), the content of the training of the partici-
pant, the prior work experience of the participant,
and the reemployment plan of the participant.
(3)(A) 
Each 
on-the-job 
training 
contract
shall—
(i) specify the types and duration of on-
the-job training and the other services to be
provided in sufficient detail to allow for a fair
analysis of the reasonableness of proposed
costs; and
(ii) comply with the applicable require-
ments of section 174.
(B) Each on-the-job training contract that is
not directly contracted by a substate grantee with an
employer (but instead is contracted through an
intermediary brokering contractor) shall, in addition
to meeting the requirements of subparagraph (A),
specify the outreach, recruitment, participant train-
(e) PROHIBITION ON FEES.—No person or or-
ganization may charge an individual a fee for the
placement or referral of such individual in or to a
training program under this title.
(f) PROHIBITION
ON
SUBSIDIZED
EMPLOY-
MENT.—No funds may be provided under this Act
for any subsidized employment with any private for-
profit employer.
(g) RETENTION OF PROGRAM INCOME.—
(1) Income under any program under this
title administered by a public or private non-
profit entity may be retained by such entity
only if used to continue to carry out the pro-
gram.
(2) Income subject to the requirements of
paragraph (1) shall include—
(A) receipts from goods or services
(including conferences) provided as a result
of activities funded under the title;
(B) funds provided to a service pro-
vider under the title that are in excess of
the costs associated with the services pro-
vided; and
(C) interest income earned on funds
received under this title.
(3) For the purposes of this subsection,
each entity receiving financial assistance under
this title shall maintain records sufficient to de-
termine the amount of income received and the
purposes for which such income is expended.
(h) NOTIFICATION
AND
CONSULTATION
RE-
QUIREMENTS.—The Secretary shall notify the Gov-
ernor and the appropriate chief elected officials of,
and consult with the Governor and such officials
concerning, any activity to be funded by the Sec-
retary under this title within the State or substate
area; and the Governor shall notify the appropriate
chief elected officials of, and consult with such con-
cerning, any activity to be funded by the Governor
under this title within the substate area.
(i) 
COOPERATIVE
AGREEMENTS
BETWEEN
STATES.—In the event that compliance with provi-
sions of this title would be enhanced by cooperative
agreements between States, the consent of Congress
is hereby given to such States to enter into such
compacts and agreements to facilitate such compli-
ance, subject to the approval of the Secretary.
(j) PUBLIC
SERVICE
EMPLOYMENT
PROHIBI-
TION.—Except as provided in section 132, no funds
available under this title may be used for public
service employment.
(k) PROHIBITION ON EMPLOYMENT GENERAT-
ING AND RELATED ACTIVITIES.—Except for funds
available to the Secretary to carry out section 132,
no funds available under this Act shall be used for
employment generating activities, economic develop-
ment activities, investment in revolving loan funds,
capitalization of businesses, investment in contract
bidding resource centers, and similar activities, or
for foreign travel.
(l) PROPERTY.—The Federal requirements gov-
erning the title, use, and disposition of real property,
equipment, and supplies purchased with funds pro-
vided under this Act shall be the Federal require-
ments generally applicable to Federal grants to
States and local governments.
SEC. 162. BENEFITS.
(a) IN GENERAL.—Except as otherwise provided in
this title, the following provisions shall apply to all activi-
ties financed under this title:
(1) A participant under this title shall receive
no payments for training activities in which the par-
ticipant fails to participate without good cause.
100
(2) Individuals in on-the-job training shall be
compensated by the employer at the same rates, in-
cluding periodic increases, as similarly situated em-
ployees or trainees and in accordance with applicable
law, but in no event less than the higher of the rate
specified in section 6(a)(1) of the Fair Labor Stand-
ards Act of 1938 or the applicable State or local
minimum wage law.
(3) Individuals employed in activities authorized
under this title shall be paid wages which shall not
be less than the highest of (A) the minimum wage
under section 6(a)(1) of the Fair Labor Standards
Act of 1938, (B) the minimum wage under the ap-
plicable State or local minimum wage law, or (C) the
prevailing rates of pay for individuals employed in
similar occupations by the same employer.
(4) References in paragraphs (2) and (3) to
section 6(a)(1) of the Fair Labor Standards Act of
1938 (29 U.S.C. 206 (a)(1))—
(A) shall be deemed to be references to
section 6(c) of that Act for individuals in the
Commonwealth of Puerto Rico;
(B) shall be deemed to be references to
6(a)(3) of that Act for individuals in American
Samoa; and
101
(C) shall not be applicable for individuals
in other territorial jurisdictions in which section
6 of the Fair Labor Standards Act of 1938
does not apply.
(b) INCOME DISREGARD.—Allowances, earnings and
payments to individuals participating in programs under
this title, except for payments under section 119(e), shall
not be considered as income for the purposes of determin-
ing eligibility for and the amount of income transfer and
in-kind aid furnished under any Federal or federally as-
sisted program based on need, other than as provided
under the Social Security Act.
SEC. 163. LABOR STANDARDS.
(a) IN GENERAL.—
(1) Conditions of employment and training shall
be appropriate and reasonable in light of such fac-
tors as the type of work, geographical region, and
proficiency of the participant.
(2) Health and safety standards established
under State and Federal law, otherwise applicable to
working conditions of employees, shall be equally ap-
plicable to working conditions of participants. With
respect to any participant in a program conducted
under this title who is engaged in activities which
are not covered by health and safety standards
102
under the Occupational Safety and Health Act of
1970, the Secretary shall prescribe, by regulation,
such standards as may be necessary to protect the
health and safety of such participants.
(3) To the extent that a State workers’ com-
pensation law is applicable, workers’ compensation
benefits in accordance with such law shall be avail-
able with respect to injuries suffered by participants.
To the extent that such law is not applicable, each
recipient of funds under this Act shall secure insur-
ance coverage for injuries suffered by such partici-
pants, in accordance with regulations prescribed by
the Secretary.
(4) All individuals employed in subsidized jobs
shall be provided benefits and working conditions at
the same level and to the same extent as other em-
ployees working a similar length of time and doing
the same type of work.
(5) No funds available under this title may be
used for contributions on behalf of any participant
to retirement systems or plans.
(b) DISPLACEMENT.—
(1) No currently employed worker shall be dis-
placed by any participant (including partial displace-
103
ment such as a reduction in the hours of non-
overtime work, wages, or employment benefits).
(2) No program under this title shall impair—
(A) existing contracts for services; or
(B) existing collective bargaining agree-
ments, unless the employer and the labor orga-
nization concur in writing with respect to any
elements of the proposed activities which affect
such agreement, or either such party fails to re-
spond to written notification requesting its con-
currence within 30 days of receipt thereof.
(3) No participant shall be employed or job
opening filled (A) when any other individual is on
layoff from the same or any substantially equivalent
job, or (B) when the employer has terminated the
employment of any regular employee or otherwise re-
duced its workforce with the intention of filling the
vacancy so created by hiring a participant whose
wages are subsidized under this title.
(4) No jobs shall be created in a promotional
line that will infringe in any way upon the pro-
motional opportunities of currently employed individ-
uals.
(c) ORGANIZED LABOR.—
104
(1) Each recipient of funds under this title shall
provide to the Secretary assurances that none of
such funds will be used to assist, promote, or deter
union organizing.
(2) Any program conducted with funds made
available under this title which will provide services
to members of a labor organization will be estab-
lished only after full consultation with such organi-
zation.
(3) Where a labor organization represents a
substantial number of employees who are engaged in
similar work or training in the same area as that
proposed to be funded under this title, an oppor-
tunity shall be provided for such organization to
submit comments with respect to such proposal.
(d) PREVAILING WAGES.—All laborers and mechan-
ics employed by contractors or subcontractors in any con-
struction, alteration, or repair, including painting and
decorating, of project, buildings, and works which are fed-
erally assisted under this title shall be paid wages at rates
not less than those prevailing on similar construction in
the locality as determined by the Secretary in accordance
with the Act of March 3, 1921 (40 U.S.C. 276a–276a–
5), commonly known as the Davis-Bacon Act. The Sec-
retary shall have, with respect to such labor standards,
105
the authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267)
and section 2 of the Act of June 1, 1934, as amended
(48 Stat. 948, as amended; 40 U.S.C. 276(c)). The provi-
sions of this subsection shall not apply to a bona fide par-
ticipant in a training program under this title. The provi-
sions of section 177(a)(4) shall apply to such trainees.
SEC. 164. GRIEVANCE PROCEDURE.
(a) IN GENERAL.—Each substate grantee, career
center, contractor, and grantee under this Act shall estab-
lish and maintain a grievance procedure for grievances or
complaints about its programs and activities from partici-
pants, subgrantees, subcontractors, and other interested
persons. Hearings on any grievance shall be conducted
within 30 days of filing of a grievance and decisions shall
be made not later than 60 days after the filing of a griev-
ance. Except for complaints alleging fraud or criminal ac-
tivity, complaints shall be made within one year of the al-
leged occurrence.
(b) GRIEVANCE PROCEDURE FOR EMPLOYERS OF
PARTICIPANTS.—Each recipient of financial assistance
under this title which is an employer of participants under
this title shall continue to operate or establish and main-
tain a grievance procedure relating to the terms and condi-
tions of employment.
106
(c) EXHAUSTION
OF GRIEVANCE PROCEDURE.—
Upon exhaustion of the recipient’s grievance procedure
without decision, or where the Secretary has reason to be-
lieve that the recipient is failing to comply with the re-
quirements of this title, the Secretary shall investigate the
allegation or belief and determine within 120 days after
receiving the complaint whether such allegation or com-
plaint is true.
(d) INVESTIGATION BY SECRETARY.—
(1) If a person alleges a violation of section 163
and such person exhausts the recipient’s grievance
procedure or the 60-day time period described in
subsection (a) has elapsed without a decision, either
party to such procedure may submit the grievance to
the Secretary. The Secretary shall investigate the al-
legations contained in the grievance and make a de-
termination as to whether a violation of section 163
has occurred.
(2) If the results of the investigation conducted
pursuant to paragraph (1) indicate that a modifica-
tion or reversal of the decision issued pursuant to
the recipient’s grievance procedure is warranted, or
the 60-day time period described in subsection (a)
has elapsed without a decision, the Secretary may
modify or reverse the decision, or issue a decision if
107
no decision has been issued, as the case may be,
after an opportunity for a hearing in accordance
with the procedures under section 176.
(3) If the Secretary determines that the deci-
sion issued pursuant to the recipient’s grievance pro-
cedure is appropriate, the determination shall be-
come the final decision of the Secretary.
(e) BINDING GRIEVANCE PROCEDURE.—
(1) A person alleging a violation of section 163
may, as an alternative to the procedures described in
this section, submit the grievance involving such vio-
lation to a binding grievance procedure if a collective
bargaining agreement covering the parties to the
grievance so provides.
(2) The remedies available under paragraph (1)
shall be limited to the remedies available under sub-
section (f)(1)(C) and subsection (f)(2).
(f) REMEDIES AVAILABLE TO GRIEVANTS.—
(1) Except as provided in paragraph (2), rem-
edies available to grievants under this section for
violations of section 163 shall be limited to—
(A) suspension or termination of payments
under this Act;
(B) prohibition of placement of a partici-
pant, for an appropriate period of time, in a
108
program under this Act with an employer that
has violated section 163, as determined under
subsection (d) or (e); and
(C) appropriate equitable relief (other than
back pay).
(2) In addition to the remedies available under
paragraph (1), remedies available under this section
for violations of subsection (a)(4), paragraphs (1)
and (3) of subsection (b), and subsection (d) of sec-
tion 163 may include—
(A) reinstatement of the grievant to the
position held by such grievant prior to displace-
ment;
(B) payment of lost wages and benefits;
and
(C) reestablishment of other relevant
terms, conditions, and privileges of employment.
(g) REMEDIES UNDER OTHER LAWS.—Nothing in
subsection (f) shall be construed to prohibit a grievant
from pursuing a remedy authorized under another Fed-
eral, State, or local law for a violation of section 163.
PART E—FISCAL ADMINISTRATIVE PROVISIONS
SEC. 171. PROGRAM YEAR.
(a) OBLIGATION OF FUNDS.—Beginning with fiscal
year 1995 and thereafter, appropriations for any fiscal
109
year for programs and activities under this title 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.
(b) EXPENDITURE OF OBLIGATED FUNDS.—Funds
obligated for any program year may be expended by each
recipient during that program year and the two succeeding
program years.
SEC. 172. PROMPT ALLOCATION OF FUNDS.
(a) PUBLICATION OF FORMULA ALLOCATIONS AND
ALLOTMENTS.—Whenever the Secretary allots and allo-
cates funds required to be allotted or allocated by formula
under this title, the Secretary shall publish in a timely
fashion in the Federal Register the proposed amount to
be distributed to each recipient.
(b) PUBLICATION OF DISCRETIONARY ALLOCATION
FORMULA.—Whenever the Secretary utilizes a formula to
allot or allocate funds made available for distribution at
the Secretary’s discretion under this Act, the Secretary
shall, not later than 30 days prior to such allotment or
allocation, publish such formula in the Federal Register
for comments along with the rationale for the formula and
the proposed amounts to be distributed to each State and
area. After consideration of any comments received, the
110
Secretary shall publish final allotments and allocations in
the Federal Register.
SEC. 173. MONITORING.
(a) IN GENERAL.—The Secretary is authorized to
monitor all recipients of financial assistance under this
title to determine whether they are complying with the
provisions of this title and the regulations issued under
this title.
(b) INVESTIGATIONS.—The Secretary may inves-
tigate any matter the Secretary deems necessary to deter-
mine compliance with this title and regulations issued
under this title. The investigations authorized by this sub-
section may include examining records (including making
certified copies thereof), questioning employees, and enter-
ing any premises or onto any site in which any part of
a program of a recipient is conducted or in which any of
the records of the recipient are kept.
(c) WITNESSES AND DOCUMENTS.—For the purpose
of any investigation or hearing under this Act, the provi-
sions of section 9 of the Federal Trade Commission Act
(15 U.S.C. 49) (relating to the attendance of witnesses
and the production of books, papers, and documents) are
made applicable to the Secretary.
SEC. 174. FISCAL CONTROLS; SANCTIONS.
(a) IN GENERAL.—
111
(1) Each State shall establish such fiscal con-
trol and fund accounting procedures as may be nec-
essary to assure the proper disbursal of, and ac-
counting for, Federal funds paid to the recipient
under this title. Such procedures shall ensure that
all financial transactions are conducted and records
maintained in accordance with generally accepted ac-
counting principles applicable in each State.
(2) The Secretary shall prescribe regulations es-
tablishing uniform cost principles substantially
equivalent to such principles generally applicable to
recipients of Federal grants funds. At a minimum,
such standards shall provide that, to be allowable,
costs must—
(A) be necessary and reasonable for proper
and efficient administration of the program
under this title;
(B) be allocable to the program under this
title; and
(C) not be a general expense required to
carry out the overall responsibilities of State or
local governments except as specifically pro-
vided by this title.
(3) The Governor, in accordance with minimum
requirements established by the Secretary in regula-
112
tions, shall prescribe and implement procurement
standards to ensure fiscal accountability and prevent
fraud and abuse in programs administered under
this title. The Secretary, in establishing such mini-
mum requirements, shall consult with the Inspector
General of the Department of Labor and take into
consideration relevant aspects of the circulars issued
by the Director of the Office of Management and
Budget. Such minimum requirements shall include
provisions to ensure that for States, substate areas,
and career centers—
(A) procurements shall be conducted in a
manner providing full and open competition;
(B) the use of sole source procurements
shall be minimized to the extent practicable, but
in every case shall be justified;
(C) procurements shall include an appro-
priate analysis of the reasonableness of costs
and prices;
(D) procurements shall not provide excess
program income (for nonprofit and government
entities) or excess profit (for private for-profit
entities), and that appropriate factors shall be
utilized in determining whether such income or
profit is excessive, such as—
113
(i) the complexity of the work to be
performed;
(ii) the risk borne by the contractor;
and
(iii) market conditions in the sur-
rounding geographical area;
(E) procurements shall clearly specify
deliverables and the basis for payment;
(F) written procedures shall be established
for procurement transactions;
(G) no grantee, contractor, subgrantee, or
subcontractor shall engage in any conflict of in-
terest, actual or apparent, in the selection,
award, or administration of a contract or grant
under this title;
(H) all grantees and subgrantees shall con-
duct oversight to ensure compliance with pro-
curement standards; and
(I) procurement transactions between units
of State or local governments, shall be con-
ducted on a cost reimbursable basis.
(4) The Governor shall annually conduct on-site
monitoring of each substate grantee within the State
to ensure compliance with the procurement stand-
ards established pursuant to paragraph (3).
114
(5) If the Governor determines that a substate
grantee area is not in compliance with the procure-
ment standards established pursuant to paragraph
(3), the Governor shall —
(A) require corrective action to secure
prompt compliance; and
(B) impose the sanctions provided under
subsection (b) in the event of failure to take the
required corrective action.
(6) The Governor shall biennially certify to the
Secretary that —
(A) the State has implemented the pro-
curement standards established under para-
graph (3);
(B) the State has monitored substate
grantees to ensure compliance with the procure-
ment standards as required under paragraph
(4); and
(C) the State has taken appropriate action
to secure compliance pursuant to paragraph
(5).
(7) If the Secretary determines that the Gov-
ernor has not fulfilled the requirements of this sub-
section, the Secretary shall—
115
(A) require corrective action to secure
prompt compliance; and
(B) impose the sanctions provided under
subsection (f) in the event of failure of the Gov-
ernor to take the required corrective action.
(b) SUBSTANTIAL VIOLATIONS.—
(1) If, as a result of financial and compliance
audits or otherwise, the Governor determines that
there is a substantial violation of a specific provision
of this title or the regulations under this title, and
corrective action has not been taken, the Governor
shall impose a reorganization plan, which may in-
clude—
(A) redesignating the substate grantee;
(B) prohibiting the use of designated serv-
ice providers;
(C) merging the substate area into 1 or
more other existing substate areas; or
(D) other such changes as the Secretary or
Governor determines necessary to secure com-
pliance.
(2)(A) The actions taken by the Governor pur-
suant to paragraph (1)(A) may be appealed to the
Secretary and shall not become effective until—
(i) the time for appeal has expired; or
116
(ii) the Secretary has issued a decision.
(B) The actions taken by the Governor
pursuant to paragraph (1)(B) may be appealed
to the Secretary, who shall make a final deci-
sion not later than 60 days of the receipt of the
appeal.
(3) If the Governor fails to promptly take the
actions required under paragraph (1), the Secretary
shall take such actions.
(c) REPAYMENT OF FUNDS.—Every recipient shall
repay to the United States amounts found not to have
been expended in accordance with this title. The Secretary
may offset such amounts against any other amount to
which the recipient is or may be entitled under this Act
unless the Secretary determines that such recipient should
be held liable pursuant to subsection (d). No such action
shall be taken except after notice and opportunity for a
hearing have been given to the recipient.
(d) LIABILITY FOR REPAYMENT OF FUNDS.—
(1) Each recipient shall be liable to repay such
amounts, from funds other than funds received
under this title, upon a determination that the
misexpenditures of funds was due to willful dis-
regard of the requirements of this title, gross neg-
ligence, or failure to observe accepted standards of
117
administration. No such finding shall be made ex-
cept after notice and opportunity for a fair hearing.
(2) In determining whether to impose any sanc-
tion authorized by this section against a recipient for
violations by a subgrantee of such recipient under
this title or the regulations under this title, the Sec-
retary shall first determine whether such recipient
has adequately demonstrated that it has—
(A) established and adhered to an appro-
priate system for the award and monitoring of
contracts with subgrantees which contains ac-
ceptable standards for ensuring accountability;
(B) entered into a written contract with
such subgrantee which established clear goals
and obligations in unambiguous terms;
(C) acted with due diligence to monitor the
implementation of the subgrantee contract, in-
cluding the carrying out of the appropriate
monitoring activities (including audits) at rea-
sonable intervals; and
(D) taken prompt and appropriate correc-
tive action upon becoming aware of any evi-
dence of a violation of this Act or the regula-
tions under this Act by such subgrantee.
118
(3) If the Secretary determines that the recipi-
ent has demonstrated substantial compliance with
the requirements of paragraph (2), the Secretary
may waive the imposition of sanctions authorized by
this section upon such recipient. The Secretary is
authorized to impose any sanction consistent with
the provisions of this title and any applicable Fed-
eral or State law directly against any subgrantee for
violation of this Act or the regulations under this
Act.
(e) EMERGENCY TERMINATION OF FINANCIAL AS-
SISTANCE.—In emergency situations, if the Secretary de-
termines it is necessary to protect the integrity of the
funds or ensure the proper operation of the program, the
Secretary may immediately terminate or suspend financial
assistance, in whole or in part, if the recipient is given
prompt notice and the opportunity for a subsequent hear-
ing within 30 days after such termination or suspension.
The Secretary shall not delegate any of the functions spec-
ified in this subsection, other than to an officer whose ap-
pointment was required to be made by and with the advice
and consent of the Senate.
(f) CORRECTIVE MEASURES.—If the Secretary deter-
mines that any recipient under this title has discharged
or in any other manner discriminated against a partici-
119
pant or against any individual in connection with the ad-
ministration of the program involved, or against any indi-
vidual because such individual has filed any complaint or
instituted or caused to be instituted any proceeding under
or related to this title, or has testified or is about to testify
in any such proceeding or investigation under or related
to this title, or otherwise unlawfully denied to any individ-
ual a benefit under the provisions of this title, or the Sec-
retary’s regulations, the Secretary shall, within thirty
days, take such action or order such corrective measures,
as necessary, with respect to the recipient or the aggrieved
individuals, or both.
(g) REMEDIES
NOT
EXCLUSIVE.—The remedies
under this section shall not be construed to be exclusive
remedies.
SEC. 175. REPORTS, RECORDKEEPING, AND INVESTIGA-
TIONS.
(a) RECORDS.—
(1) Recipients shall keep records that are suffi-
cient to permit the preparation of reports required
by this title and to permit the tracing of funds to
a level of expenditure adequate to insure that the
funds have not been spent unlawfully.
(2) Every recipient shall maintain such records
and submit such reports, in such form and contain-
120
ing such information, as the Secretary requires re-
garding the performance of its programs. Such
records and reports shall be submitted to the Sec-
retary but shall not be required to be submitted
more than once each quarter unless specifically re-
quested by the Congress or a committee thereof.
(3) In order to allow for the preparation of na-
tional estimates necessary to meet the requirements
of subsection (c), recipients shall maintain standard-
ized records for all individual participants and pro-
vide to the Secretary a sufficient number of such
records to provide for an adequate analysis.
(4)(A) Except as provided in subparagraph (B),
records maintained by recipients pursuant to this
subsection shall be made available to the public upon
request.
(B) Subparagraph (A) shall not apply to—
(i) information, the disclosure of which
would constitute a clearly unwarranted invasion
of personal privacy; and
(ii) trade secrets, or commercial or finan-
cial information, obtained from a person and
privileged or confidential.
121
(C) Recipients may charge fees sufficient to re-
cover costs applicable to the processing of requests
for records under subparagraph (A).
(b) INVESTIGATIONS.—
(1)(A) In order to evaluate compliance with the
provisions of this title, the Secretary shall conduct,
in several States, in each fiscal year investigations of
the use of funds received by recipients under this
title.
(B) In order to insure compliance with the pro-
visions of this title, the Comptroller General of the
United States may conduct investigations of the use
of funds received under this title by any recipient.
(2) In conducting any investigation under this
title, the Secretary or the Comptroller General of the
United States may not request the compilation of
any new information not readily available to such re-
cipient.
(3)(A) In carrying out any audit under this title
(other than any initial audit survey or any audit in-
vestigating possible criminal or fraudulent conduct),
either directly or through grant or contract, the Sec-
retary, the Inspector General, or the Comptroller
General shall furnish to the State, substate grantee,
recipient, or other entity to be audited, advance noti-
122
fication of the overall objectives and purposes of the
audit, and any extensive recordkeeping or data re-
quirements to be met, not fewer than 14 days (or as
soon as practicable), prior to the commencement of
the audit.
(B) If the scope, objectives, or purposes of the
audit change substantially during the course of the
audit, the entity being audited shall be notified of
the change as soon as practicable.
(C) The reports on the results of such audits
shall cite the law, regulation, policy, or other criteria
applicable to any finding.
(D) Nothing contained in this title shall be con-
strued so as to be inconsistent with the Inspector
General Act of 1978 (5 U.S.C. App.) or government
auditing standards issued by the Comptroller Gen-
eral.
(c) RESPONSIBILITIES OF FUND RECIPIENTS.—Each
State, each substate grantee, each career center, and each
recipient (other than a subrecipient, grantee or contractor
of a recipient) receiving funds under this title shall—
(1) make readily accessible reports concerning
its operations and expenditures as shall be pre-
scribed by the Secretary;
123
(2) prescribe and maintain comparable manage-
ment information systems, in accordance with guide-
lines that shall be prescribed by the Secretary, de-
signed to facilitate the uniform compilation, cross
tabulation, and analysis of programmatic, partici-
pant, and financial data, on statewide and substate
area bases, necessary for reporting, monitoring, and
evaluating purposes, including data necessary to
comply with section 177; and
(3) monitor the performance of service provid-
ers in complying with the terms of grants, contracts,
or other agreements made pursuant to this Act.
(d) RETENTION OF RECORDS.—The Governor shall
ensure that requirements are established for retention of
all records pertinent to all grants awarded, and contracts
and agreements entered into, under this title, including
financial, statistical, property and participant records and
supporting documentation. For funds allotted to a State
for any program year, records shall be retained for 2 years
following the date on which the annual expenditure report
containing the final expenditures charged to such program
year’s allotment is submitted to the Secretary. Records for
nonexpendable property shall be retained for a period of
3 years after final disposition of the property.
124
(e) FINANCIAL RECORDS.—Each State, substate
grantee, and career center shall maintain records with re-
spect to programs under this title that identify—
(1) any program income or profits earned, in-
cluding 
such 
income 
or 
profits 
earned 
by
subrecipients; and
(2) any costs incurred (such as stand-in costs)
that are otherwise allowable except for funding limi-
tations.
SEC. 176. ADMINISTRATIVE ADJUDICATION.
(a) IN GENERAL.—Whenever any applicant for finan-
cial assistance under this title is dissatisfied because the
Secretary has made a determination not to award financial
assistance in whole or in part to such applicant, the appli-
cant may request a hearing before an administrative law
judge of the Department of Labor. A similar hearing may
also be requested by any recipient upon whom a corrective
action or a sanction has been imposed by the Secretary.
Except to the extent provided for in section 161(b), sub-
sections (d) and (e) of section 164, or section 177, all
other disputes arising under this title shall be adjudicated
under grievance procedures established by the recipient or
under applicable law other than this title.
(b) FINAL DECISIONS.—The decision of the adminis-
trative law judge shall constitute final action by the Sec-
125
retary unless, within 20 days after receipt of the decision
of the administrative law judge, a party dissatisfied with
the decision or any part thereof has filed exceptions with
the Secretary specifically identifying the procedure, fact,
law, or policy to which exception is taken. Any exception
not specifically urged shall be deemed to have been waived.
Thereafter the decision of the administrative law judge
shall become the final decision of the Secretary unless the
Secretary, within 30 days of such filing, has notified the
parties that the case has been accepted for review.
(c) DEADLINE FOR REVIEW.—Any case accepted for
review by the Secretary shall be decided within one hun-
dred and eighty days of such acceptance. If not so decided,
the decision of the administrative law judge shall become
the final decision of the Secretary.
(d) APPLICABLE PROVISIONS.—The provisions of
section 178 shall apply to any final action of the Secretary
under this section.
SEC. 177. NONDISCRIMINATION.
(a) IN GENERAL.—
(1) For the purpose of applying the prohibitions
against discrimination on the basis of age under the
Age Discrimination Act of 1975, on the basis of dis-
ability under section 504 of the Rehabilitation Act,
on the basis of sex under title IX of the Education
126
Amendments of 1972, or on the basis of race, color,
or national origin under title VI of the Civil Rights
Act of 1964, programs and activities funded or oth-
erwise financially assisted in whole or in part under
this title are considered to be programs and activi-
ties receiving Federal financial assistance.
(2) No individual shall be excluded from partici-
pation in, denied the benefits of, subjected to dis-
crimination under, or denied employment in the ad-
ministration of or in connection with any such pro-
gram because of race, color, religion, sex, national
origin, age, political affiliation or belief, or status as
a qualified individual with disabilities.
(3) Participants shall not be employed on the
construction, operation, or maintenance of so much
of any facility as is used or to be used for sectarian
instruction or as a place for religious worship.
(4) With respect to terms and conditions affect-
ing, or rights provided to, individuals who are par-
ticipants in activities supported by funds provided
under this title, such individuals shall not be dis-
criminated against solely because of their status as
such participants.
(5) Participation in programs and activities fi-
nancially assisted in whole or in part under this title
127
shall be open to citizens and nationals of the United
States, lawfully admitted permanent resident aliens,
lawfully admitted refugees and parolees, and other
individuals authorized by the Attorney General to
work in the United States.
(b) FAILURE TO COMPLY.—Whenever the Secretary
finds that a State or other recipient has failed to comply
with a provision of law referred to in subsection (a)(1),
with paragraph (2), (3), (4), or (5) of subsection (a), or
with an applicable regulation prescribed to carry out such
paragraphs, the Secretary shall notify such State or recipi-
ent and shall request it to comply. If within a reasonable
period of time, not to exceed sixty days, the State or recip-
ient fails or refuses to comply, the Secretary may—
(1) refer the matter to the Attorney General
with a recommendation that an appropriate civil ac-
tion be instituted;
(2) exercise the powers and functions provided
by title VI of the Civil Rights Act of 1964, the Age
Discrimination Act of 1975, or section 504 of the
Rehabilitation Act, as may be applicable; or
(3) take such other action as may be provided
by law.
(c) REFERRAL TO ATTORNEY GENERAL.—When a
matter is referred to the Attorney General pursuant to
128
subsection (b)(1), or whenever the Attorney General has
reason to believe that a State or other recipient is engaged
in a pattern or practice in violation of a provision of law
referred to in subsection (a)(1) or in violation of para-
graph (2), (3), (4), or (5) of subsection (a), the Attorney
General may bring a civil action in any appropriate district
court of the United States for such relief as may be appro-
priate, including injunctive relief.
SEC. 178. JUDICIAL REVIEW.
(a) IN GENERAL.—
(1) With respect to any final order by the Sec-
retary under section 176 whereby the Secretary de-
termines to award, to not award, or to only condi-
tionally award, financial assistance, with respect to
any final order of the Secretary under section 176,
with respect to a corrective action or sanction im-
posed under section 174, any party to a proceeding
which resulted in such final order may obtain review
of such final order in the United States Court of Ap-
peals having jurisdiction over the applicant or recipi-
ent of funds, by filing a review petition within 30
days of such final order.
(2) The clerk of the court shall transmit a copy
of the review petition to the Secretary, who shall file
the record upon which the final order was entered as
129
provided in section 2112 of title 28, United States
Code. Review petitions, unless ordered by the court,
shall not stay the Secretary’s order. Petitions under
this title shall be heard expeditiously, if possible
within ten days of the filing of a reply brief.
(3) No objection to the order of the Secretary
shall be considered by the court unless the objection
shall have been specifically and timely urged before
the Secretary. Review shall be limited to questions
of law and the Secretary’s findings of fact shall be
conclusive if supported by substantial evidence.
(b) JURISDICTION OF THE COURT.—The court shall
have jurisdiction to make and enter a decree affirming,
modifying, or setting aside the order of the Secretary in
whole or in part. The court’s judgment shall be final, sub-
ject to certiorari review by the Supreme Court of the
United States as provided in section 1254(1) of title 28,
United States Code.
SEC. 179. ADMINISTRATIVE PROVISIONS.
(a) RULES AND REGULATIONS.—The Secretary may,
in accordance with chapter 5 of title 5, United States
Code, prescribe such rules and regulations (including per-
formance standards) as the Secretary deems necessary.
Such rules and regulations may include adjustments au-
thorized by section 204 of the Intergovernmental Coopera-
130
tion Act of 1968. All such rules and regulations shall be
published in the Federal Register at least thirty days prior
to their effective date. Copies of all such rules and regula-
tions shall be transmitted to the appropriate committees
of the Congress at the same time and shall contain, with
respect to each material provision of such rules and regu-
lations, citations to the particular substantive section of
law which is the basis therefor.
(b) GIFTS.—The Secretary is authorized, in carrying
out this title, to accept, purchase, or lease in the name
of the department, and employ or dispose of in furtherance
of the purposes of this title, any money or property, real,
personal, or mixed, tangible or intangible, received by gift,
devise, bequest, or otherwise, and to accept voluntary and
uncompensated services notwithstanding the provisions of
section 1342 of title 31, United States Code.
(c) AUTHORITY TO EXPEND FUNDS.—The Secretary
may make such grants, contracts, or agreements, establish
such procedures and make such payments, in installments
and in advance or by way of reimbursement, or otherwise
allocate or expend funds under this title as necessary to
carry out this title, including (without regard to the provi-
sions of section 4774(d) of title 10, United States Code)
expenditures for construction, repairs, and capital im-
131
provements, and including necessary adjustments in pay-
ments on account of overpayments or underpayments.
(d) USE OF SERVICES AND FACILITIES.—The Sec-
retary is authorized, in carrying out this title, under the
same conditions applicable under section 179(c) or to the
extent permitted by law other than this title, to accept
and use the services and facilities of departments, agen-
cies, and establishments of the United States. The Sec-
retary is also authorized to accept and use the services
and facilities of the agencies of any State or political sub-
division of a State, with its consent.
(e) POLITICAL ACTIVITIES.—The Secretary shall not
provide financial assistance for any program under this
title which involves political activities.
SEC. 180. OBLIGATIONAL AUTHORITY.
Notwithstanding any other provision of this title, no
authority to enter into contracts or financial assistance
agreements under this title shall be effective except to
such extent or in such amount as are provided in advance
in appropriation Acts.
SEC. 181. CRIMINAL PROVISIONS.
Section 665 of title 18, United States Code, is
amended by striking ‘‘or the Job Training Partnership
Act’’ each place it appears and inserting ‘‘, the Job Train-
132
ing Partnership Act, or title I of the Reemployment Act
of 1994.’’
SEC. 182. REFERENCES.
Effective on the date of enactment of this title, all
references in any other statute other than this Act, and
other than in section 665 of title 18, United States Code,
to the Job Training Partnership Act shall be deemed to
also refer to title I of the Reemployment Act of 1994.
PART F—MISCELLANEOUS PROVISIONS
SEC. 191. EFFECTIVE DATE.
This title shall take effect on July 1, 1995.
SEC. 192. REPEALERS.
(a) IN GENERAL.—The following programs shall ter-
minate on July 1, 1995:
(1) The program authorized pursuant to sec-
tions 301–324 of the Job Training Partnership Act,
commonly referred to as EDWAA;
(2) The program authorized under section 325
of such Act, commonly referred to as the Defense
Conversion Adjustment Program;
(3) The program authorized under section
325A of such Act, commonly referred to as the De-
fense Diversification Program; and
133
(4) The program authorized under section 326
of such Act, commonly referred to as the Clean Air
Employment Transition Assistance Program.
(b) ADDITIONAL PROGRAM.—Part J of title IV and
section 462(e) of the Job Training Partnership Act shall
terminate on July 1, 1995.
SEC. 193. TRANSITION.
The Secretary may establish such rules and proce-
dures as may be necessary to provide for the orderly tran-
sition from the programs described in section 192(a) to
the program authorized under this title.
TITLE II—RETRAINING INCOME SUPPORT
AND FLEXIBILITY IN UNEMPLOYMENT
COMPENSATION
PART A—RETRAINING INCOME SUPPORT
PROGRAM
SEC. 201. ESTABLISHMENT.
There is hereby established a retraining income sup-
port program to assist permanently laid-off individuals
participating in long-term training programs.
SEC. 202. ELIGIBILITY REQUIREMENTS.
(a) TENURED WORKERS.—For a week beginning
after July 1, 1995, to the extent that funds are available
in the account established by section 911 of the Social Se-
curity Act, payment of retraining income support shall be
134
made to an individual who files an application for such
support if the following conditions are met:
(1) Such individual has been permanently laid-
off from such individual’s employer.
(2) Except as specified in subsections (b) and
(c), such individual had been continuously employed
at the time of the permanent layoff for a period of
three years or more by the employer from whom
such individual has been permanently laid-off.
(3) Such individual—
(A) was entitled, as a result of the layoff
described in paragraph (1), to (or would have
been entitled to if such individual had applied
therefor) unemployment compensation under
any Federal or State law for a week within the
benefit period in which the layoff took place, or
which began (or would have begun) by reason
of the filing of a claim for unemployment com-
pensation by such individual after such layoff;
(B) has exhausted all rights to any unem-
ployment compensation to which such individual
was entitled (or would have been entitled if
such individual had applied therefor); and
135
(C) does not have an unexpired waiting pe-
riod applicable to such individual for such un-
employment compensation.
(4) Such individual is participating, and making
satisfactory progress, in an education or training
program that is part of a reemployment plan devel-
oped for such individual by an agency certified by
the Secretary of Labor to develop reemployment
plans, and has been enrolled in such program by—
(A) the end of the sixteenth week after the
permanent layoff, or, if later, the end of the
fourteenth week after such individual is aware
that the layoff is permanent,
(B) a period determined by the Secretary
that is not in excess of 30 days after the peri-
ods described in subparagraph (A), in cases
where under guidelines issued by the Secretary
it is determined that there are extenuating cir-
cumstances that justify such extension, such as
a cancellation of a course, a first available en-
rollment date that is after the periods described
in subparagraph (A), or the commencement of
negotiations for the reopening of the plant or
facility from which the individual has been laid-
off, or
136
(C) the end of the sixteenth week after
separation from the subsequent employment de-
scribed in section 120 of this Act in the case of
an individual who has been issued a certificate
of continuing eligibility under such section.
(b) TRADE-IMPACTED WORKERS.—To the extent
that funds are available in the account established by sec-
tion 911 of the Social Security Act, payment of retraining
income support shall be made to a permanently laid-off
individual who has been determined to be an adversely af-
fected worker covered by a certification issued under part
D of this title and who files an application for such sup-
port for any week of unemployment which begins more
than 60 days after the date on which the petition that
resulted in such certification was filed, if the following
conditions are met:
(1) Such individual’s layoff before his, or her,
application under this title occurred—
(A) on or after the impact date, as speci-
fied in the certification under which such indi-
vidual is covered,
(B) before the expiration of the 2-year pe-
riod beginning on the date on which the deter-
mination under section 242 of this Act was
made, and
137
(C) before the termination date (if any) de-
termined pursuant to paragraph 242(b)(3)(D)
of this Act.
(2) Such worker had, in the 52-week period
ending with the week in which such layoff occurred,
at least 26 weeks of employment at wages of $30 or
more a week in adversely affected employment with
a single firm or subdivision of a firm, or, if data
with respect to weeks of employment with a firm are
not available, equivalent amounts of employment
computed under regulations prescribed by the Sec-
retary. A week that is considered to be a week of
employment under subsection (d) shall also be con-
sidered a week of employment for purposes of this
paragraph.
(3) Such individual meets the conditions de-
scribed in paragraphs (3) and (4) of subsection (a).
(c) ADDITIONAL ELIGIBILITY BEGINNING IN FISCAL
YEAR 2000.— For a week beginning after September 30,
1999, in addition to individuals meeting the requirements
of subsection (a), payment of retraining income support
shall, to the extent that funds are available in the account
established by section 911 of the Social Security Act, be
made to an individual who—
138
(1)(A) has been continuously employed at the
time of the permanent layoff for a period of one year
or more, but less than three years, by the employer
from whom such individual has been permanently
laid-off; or
(B) was continuously employed in the same oc-
cupation and industry by a single employer for a pe-
riod of one year or more and within the preceding
12-month period was—
(i) separated from such employer, and
(ii) employed in the same occupation and
industry by a subsequent employer from whom
such individual has been permanently laid off;
and
(2) meets the conditions described in para-
graphs (1), (3) and (4) of subsection (a).
(d) CONTINUOUS EMPLOYMENT.—(1) For purposes
of this part and subject to the limitations of paragraph
(2) of this subsection, continuous employment shall be
deemed to include any week in which an individual—
(A) was on employer-authorized leave for pur-
poses of vacation, sickness, injury or inactive duty or
active duty military service for training,
139
(B) was on employer-authorized leave because
of circumstances described in subsection 102(a) of
the Family and Medical Leave Act of 1993,
(C) did not work because of a disability that is
compensable under a worker’s compensation law or
plan of a State or the United States,
(D) had his, or her, employment interrupted in
order to serve as a full-time representative of a labor
organization in such firm or subdivision,
(E) was on call-up for purposes of active duty
in a reserve status in the Armed Forces of the
United States, provided such active duty is ‘‘Federal
service’’ as defined in section 8521(a)(1) of title 5,
United States Code, or
(F) was on temporary layoff.
(2) LIMITATIONS.—For the purpose of paragraph (1)
of this subsection, no more than the following number of
weeks within a one year period may be treated as weeks
of employment—
(A) 7 weeks in the case of weeks described in
subparagraph (A) or (D) of paragraph (1), or both;
(B) 12 weeks in the case of weeks described in
paragraph (B) of paragraph (1); and
(C) 26 weeks in the case of weeks described in
paragraphs (C) and (E) of paragraph (1).
140
(e) SAME EMPLOYER.—
(1) IN GENERAL.—For purposes of this part,
employment deemed to be employment for a single
employer shall include—
(A) all employment on jobs that were cov-
ered by a multiemployer plan defined by section
4001(a)(3) of the Employee Retirement Income
Security Act of 1974;
(B) all employment that was obtained
through a single hiring hall,
(C) all employment for the employer from
whom the individual was laid-off or the prede-
cessor of such employer, and
(D) all employment for employers in a
joint employment relationship, as described in
section 791.2(b) of title 29 of the Code of Fed-
eral Regulations, with the individual.
(2) DEFINITION OF PREDECESSOR.—For pur-
poses of paragraph (1)(C), an employer shall be con-
sidered a predecessor of the employer from whom
the individual was laid-off (hereinafter referred to as
successor employer) if—
(A) the successor employer acquired sub-
stantially all the property used in a trade or
141
business, or used in a separate unit of a trade
or business, from such employer; and
(B) the individual who was laid-off was
employed by such employer in such trade or
business, or in a separate unit of such trade or
business, immediately before the acquisition and
was employed by the successor employer imme-
diately after the acquisition.
(f) INDIVIDUAL TREATED
AS PARTICIPATING
IN
EDUCATION OR TRAINING PROGRAM.—For purposes of
this part, an individual shall be treated as participating,
and making satisfactory progress, in an education or
training program during any week which is part of a break
from training that does not exceed 28 days if the break
is provided under such program.
SEC. 203. WEEKLY AMOUNTS.
The retraining income support payable to a perma-
nently laid-off individual for a week of training shall be
an amount equal to the most recent weekly benefit amount
of the unemployment compensation payable to such indi-
vidual for a week of total unemployment preceding such
individual’s first exhaustion of unemployment compensa-
tion related to the permanent layoff reduced (but not
below zero) by—
142
(1) any training income support provided for
such week to such individual under another Federal
program;
(2) income that is earned from employment
that exceeds one-half the amount equal to the most
recent weekly benefit amount of the unemployment
compensation payable to such individual for a week
of total unemployment.
SEC. 204. LIMITATIONS ON RETRAINING INCOME SUPPORT.
(a) INDIVIDUALS WITH THREE YEARS OR MORE OF
JOB TENURE.—
(1) 
MAXIMUM
AMOUNT.—The 
maximum
amount of retraining income support payable to an
individual under subsections (a) and (b) of section
202 of this Act shall be the amount which is the
product of 52 multiplied by the retraining income
support payable to the individual for a week of total
unemployment (as determined under section 203),
but such product shall be reduced by the total sum
of extended and additional unemployment compensa-
tion to which the individual was entitled (or would
have been entitled had he applied therefor) in the
worker’s first benefit period as described in section
202(a)(3)(A).
(2) PERIOD OF AVAILABILITY.—
143
(A) Subject to the provisions of paragraph
(B) of this subsection, no retraining income
support shall be paid for any week occurring
after the close of the 104-week period that be-
gins with the first week following the week after
the individual was permanently laid-off as de-
scribed in section 202(a)(1) of this Act.
(B) For the purpose of determining the
104-week period in subparagraph (A) of this
subsection, the period of time specified in a cer-
tificate of continuing eligibility issued pursuant
under section 120 of this Act during which the
individual is employed in a job described by
that section shall not be counted.
(b) INDIVIDUALS WITH LESS THAN THREE YEARS
OF JOB TENURE.—
(1) 
MAXIMUM
AMOUNT.—The 
maximum
amount of retraining income support payable to an
individual under subsection 202(c) this Act shall be
the amount which is the product of 26 multiplied by
the retraining income support payable to the individ-
ual for a week of total unemployment (as determined
under section 203), but such product shall be re-
duced by the total sum of extended and additional
unemployment compensation to which the individual
144
was entitled (or would have been entitled had he ap-
plied therefor) in the worker’s first benefit period as
described in section 202(a)(3)(A).
(2) PERIOD OF AVAILABILITY.—
(A) Subject to the provisions of paragraph
(B) of this subsection, no retraining income
support shall be paid for any week occurring
after the close of the 78-week period that be-
gins with the first week following the week after
the individual was permanently laid-off as de-
scribed in paragraph (1) section 202(a) of this
Act.
(B) For the purpose of determining the
78-week period in paragraph (A) of this sub-
section, the period of time specified in a certifi-
cate of continuing eligibility issued pursuant
under section 120 of this Act during which the
individual is employed in a job described by
that section shall not be counted.
(c) WEEKS DURING WHICH INDIVIDUAL RECEIVED
ON-THE-JOB TRAINING.—No retraining income support
shall be paid to an individual under this part for any week
during which the individual is receiving on-the-job train-
ing.
206
(iii) the overall performance of the ca-
reer centers in the one-stop service area.
(2) 
ADJUSTMENTS.—Each 
Governor 
shall,
within parameters established by the Secretary, pre-
scribe adjustments to the performance standards
prescribed under paragraph (1) for the one-stop ca-
reer centers and workforce investment boards estab-
lished in the State based on—
(A) specific economic, geographic and de-
mographic factors in the State and in one-stop
service areas within the State; and
(B) the characteristics of the population to
be served, including the demonstrated difficul-
ties in serving special populations.
(3) FAILURE TO MEET STANDARDS.—
(A) UNIFORM
CRITERIA.—The Secretary
shall establish uniform criteria for determining
whether a one-stop career center or workforce
investment board fails to meet performance
standards under this section.
(B) TECHNICAL
ASSISTANCE.—The Gov-
ernor shall provide technical assistance to one-
stop career centers and workforce investment
boards failing to meet performance standards
213
ice providers and other interested organizations and
individuals will work together in the planning and
development of a one-stop career center system.
(c) USE OF FUNDS.—Funds awarded under this sec-
tion may be used to carry out the following activities:
(1) Identifying and establishing an appropriate
State structure to administer the one-stop career
center network within the State.
(2) Identifying and establishing broad-based
partnerships among employers, labor, education,
State and local government, and community-based
organizations to participate in the design, develop-
ment, and administration of a one-stop career center
system.
(3) Developing a plan to establish a State
Human Resource Investment Council and local
workforce investment boards.
(4) Developing the process for chartering one-
stop career centers.
(5) Supporting local one-stop career center
planning and development activities to provide guid-
ance in the development of a one-stop career center
system.
(6) Initiating pilot programs for testing key
components of State program design, such as de-