Workforce Investment Partnership Act of 1998
PL 105-220 (H.R.1385), enacted 08/07/1998

112 STAT. 936 
PUBLIC LAW 105-220—AUG. 7, 1998 
Public Law 105-220 
105th Congress 
An Act 
Aiig. 7, 1998 
To consolidate, coordinate, and improve employment, training, literacy, and 
[H.R. 1385] 
vocational rehabilitation programs in the United States, and for other piirposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
Workforce 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
of 1998 
(a) SHORT TITLE.—^This Act may be cited as the "Workforce 
20 use 9201 
Investment Act of 1998". 
note. 
(b) TABLE OF CONTENTS.—^The table of contents for this Act 
is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—WORKFORCE INVESTMENT SYSTEMS 
Subtitle A—^Workforce Investment Definitions 
Subtitle B—Statewide and Local Workforce Investment Systems 
Sec. 106. Purpose. 
CHAPTER 1—STATE PROVISIONS 
Sec. 111. State workforce investment boards. 
Sec. 112. State plan. 
CHAPTER 2—LOCAL PROVISIONS 
Sec. 116. Local workforce investment areas. 
Sec. 117. Local workforce investment boards. 
Sec. 118. Local plan. 
CHAPTER 3—^WORKFORCE INVESTMENT AcnvrriES PROVIDERS 
Sec. 121. EstabUshment of one-stop delivery systems. 
Sec. 122. Identification of eligible providers of training services. 
Sec. 123. Identification of eligible providers of youth activities. 
CHAPTER 4—YOUTH ACTIVITIES 
Sec. 126. General authorization. 
Sec. 127. State allotments. 
Sec. 128. Within State allocations. 
Sec. 129. Use of funds for youth activities. 
CHAPTER 5—ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING 
ACTIVITIES 
Sec. 131. Greneral authorization. 
Sec. 132. State allotments. 
Sec. 133. Within State allocations. 
Sec. 134. Use of funds for employment and training activities. 
CHAPTER ©—GENERAL PROVISIONS 
Sec. 136. Performance accountability system. 
Sec. 137. Authorization of appropriations. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 937 
Subtitle C—Job Corps 
Sec. 141. Purposes. 
Sec. 142. Definitions. 
Sec. 143. Establishment. 
Sec. 144. Individuals eligible for the Job Corps. 
Sec. 145. Recruitment, screening, selection, and assignment of enrollees. 
Sec. 146. Enrollment. 
Sec. 147. Job Corps centers. 
Sec. 148. Program activities. 
Sec. 149. Counseling and job placement. 
Sec. 150. Support. 
Sec. 151. Operating plan. 
Sec. 152. Standards of conduct. 
Sec. 153. Community participation. 
Sec. 154. Industry councils. 
Sec. 155. Advisory committees. 
Sec. 156. Experimental, research, and demonstration projects. 
Sec. 157. Application of provisions of Federal law. 
Sec. 158. Special provisions. 
Sec. 159. Management informatipn. 
Sec. 160. General provisions. 
Sec. 161. Authorization of appropriations. 
Subtitle D—National Programs 
• 
Sec. 166. Native American programs. 
Sec. 167. Migrant and seasonal farmworker programs. 
Sec. 168. Veterans' workforce investment programs. 
Sec. 169. Youth opportunity grants. 
Sec. 170. Technical assistance. 
Sec. 171. Demonstration, pilot, multiservice, research, and multistate projects. 
Sec. 172. Evaluations. 
Sec. 173. National emergency grants. 
Sec. 174. Authorization of appropriations. 
Subtitle E—^Administration 
Sec. 181. Requirements and restrictions. 
Sec. 182. Prompt allocation of funds. 
Sec. 183. Monitoring. 
Sec. 184. Fiscal controls; sanctions. 
Sec. 185. Reports; recordkeeping; investigations. 
Sec. 186. Administrative adjudication. 
Sec. 187. Judicial review. 
Sec. 188. Nondiscrimination. 
Sec. 189. Administrative provisions. 
Sec. 190. Reference. 
^ 
Jsie 
Sec. 191. State legislative authority. 
Sec. 192. Workforce flexibility plans. 
Sec. 193. Use of certain real property. 
Sec. 194. Continuation of State activities and policies. 
Sec. 195. Greneral program requirements. 
Subtitle F—^Repeals and Conforming Amendments 
Sec. 199. Repeals. 
Sec. 199A. Conforming amendments. 
f 
TITLE II—ADULT EDUCATION AND LITERACY 
Sec. 201. Short title. 
Sec. 202. Purpose. 
Sec. 203. Definitions. 
Sec. 204. Home schools. 
Sec. 205. Authorization of appropriations. 
Subtitle A—Adxilt Education and Literacy Programs 
CHAPTER 1—FEDERAL PROVISIONS 
Sec. 211. Reservation; grants to eligible agencies; allotments. 
Sec. 212. Performance accountability system. 
CHAPTER 2—STATE PROVISIONS 
Sec. 221. State administration. 
112 STAT. 938 
PUBLIC LAW 105-220—AUG. 7, 1998 
Sec. 222. State distribution of funds; matching requirement. 
Sec. 223. State leadership activities. 
Sec. 224. State plan. 
Sec. 225. Programs for corrections education and other institutionalized individ-
uals. 
CHAPTER 3—LOCAL PROVISIONS 
Sec. 231. Grants and contracts for eligible providers. 
Sec. 232. Local application. 
Sec. 233. Local administrative cost limits. 
CHAPTER 4—GENERAL PROVISIONS 
Sec. 241. Administrative provisions. 
Sec. 242. National Institute for Literacy. 
Sec. 243. National leadership activities. 
Subtitle B—^Repeals 
Sec. 251. Repeals. 
TITLE III—WORKFORCE INVESTMENT-RELATED ACTIVITIES 
Subtitle A—^Wagner-Peyser Act 
Sec. 301. Definitions. 
Sec. 302. Functions. 
Sec. 303. Designation of State agencies. 
Sec. 304. Approi)riations. 
Sec. 305. Disposition of allotted funds. 
Sec. 306. State plans. 
Sec. 307. Repeal of Federal advisory council. 
Sec. 308. Regulations. 
Sec. 309. Emplojrment statistics. 
Sec. 310. Technical amendments. 
Sec. 311. Effective date. 
Subtitle B—^Linkages With Other Programs 
Sec. 321. Trade Act of 1974. 
Sec. 322. Veterans' employment programs. 
Sec. 323. Older Americans Act or 1965. 
Subtitle C—^Twenty-First Century Workforce Commission 
Sec. 331. Short title. 
Sec. 332. Findings. 
Sec. 333. Definitions. 
Sec. 334. Establishment of Twenty-First Century Workforce Commission. 
Sec. 335. Duties of the Commission. 
Sec. 336. Powers of the Commission. 
Sec. 337. Commission personnel matters. 
Sec. 338. Termination of the Commission. 
Sec. 339. Authorization of appropriations. 
Subtitle D—Application of Civil Rights and Labor-Management Laws to the 
Smithsonian Institution 
Sec. 341. Application of civil rights and labor-management laws to the Smithsonian 
Institution. 
TITLE IV—REHABIUTATION ACT AMENDMENTS OF 1998 
Sec. 401. Short title. 
Sec. 402. Title. 
Sec. 403. General provisions. 
Sec. 404. Vocational rehabilitation services. 
Sec. 405. Research and training. 
Sec. 406. Professional development and special projects and demonstrations. 
Sec. 407. National Council on Disability. 
Sec. 408. Rights and advocacy. 
Sec. 409. Employment opportunities for individuals with disabilities. 
Sec. 410. Independent living services and centers for independent Uving. 
Sec. 411. Repeal. 
Sec. 412. Helen Keller National Center Act. 
Sec. 413. President'sCommitteeonEmployment of People With Disabilities. 
Sec. 414. Conforming amendments. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 939 
TITLE V—GENERAL PROVISIONS 
Sec. 501. State unified plan. 
Sec. 502. Definitions for indicators of performance. 
Sec. 503. Incentive grants. 
Sec. 504. Privacy. 
Sec. 505. Buy-American requirements. 
Sec. 506. Transition provisions. 
Sec. 507. Effective date. 
TITLE I—WORKFORCE INVESTMENT 
SYSTEMS 
Subtitle A—^Workforce Investment 
Definitions 
SEC. 101. DEFINITIONS. 
29 USC 2801. 
In this title: 
(1) ADULT.—^Except in sections 127 and 132, the term 
"adult" means an individual who is age 18 or older. 
(2) ADULT EDUCATION; ADULT EDUCATION AND LITERACY 
ACTIVITIES.—^The terms "adult education" and "adult education 
and literacy activities" have the meanings given the terms 
in section 203. 
(3) AREA VOCATIONAL EDUCATION SCHOOL.—^The term "area 
vocational education school" has the meaning given the term 
in section 521 of the Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2471). 
(4) BASIC SKILLS DEFICIENT.—^The term "basic skills defi-
cient" means, with respect to an individusd, that the individual 
has English reading, writing, or computing skills at or below 
the 8th grade level on a generally accepted standardized test 
or a comparable score on a criterion-referenced test. 
(5) CASE MANAGEMENT.—^The term "case management" 
means the provision of a client-centered approach in the 
delivery of services, designed— 
(A) to prepare and coordinate comprehensive employ-
ment plans, such as service strategies, for participants 
^ 
to ensure access to necessary workforce investment activi-
"_ 
ties and supportive services, using, where feasible, com-
puter-based technologies; and 
(B) to provide job and CEireer counseling during 
program participation and after job placement. 
(6) CHIEF ELECTED OFFICIAL.—^The term "chief elected 
official" means— 
(A) the chief elected executive officer of a unit of 
general local government in a local area; and 
(B) in a case in which a local area includes more 
than one unit of general local government, the individuals 
designated under the agreement described in section 
117(c)(1)(B). 
r 
(7) COMMUNITY-BASED ORGANIZATION.—The term "commu-
nity-based organization" means a private nonprofit organization 
that is representative of a community or a significant segment 
of a community and that has demonstrated expertise and 
effectiveness in the field of workforce investment. 
112 STAT. 940 
PUBLIC LAW 105-220—AUG. 7, 1998 
(8) 
CUSTOMIZED 
TRAINING.—The 
term 
"customized 
training" means training— 
(A) that is designed to meet the special requirements 
of an employer (including a group of employers); 
(B) that is conducted with a commitment by the 
employer to employ an individual on successful completion 
of the training; and 
(C) for which the employer pays for not less than 
r 50 percent of the cost of the training. 
(9) DISLOCATED WORKER.—The term "dislocated worker" 
means an individual who— 
(A)(i) has been terminated or laid off, or who has 
received a notice of termination or layoff, from employment; 
(iiXI) is eligible for or has exhausted entitlement to 
unemployment compensation; or 
(II) has been employed for a duration sufficient to 
demonstrate, to the appropriate entity at a one-stop center 
referred to in section 134(c), attachment to the workforce, 
but is not eligible for unemployment compensation due 
to insufficient earnings or having performed services for 
an employer that were not covered under a State unemploy-
ment compensation law; and 
(iii) is unlikely to return to a previous industry or 
occupation; 
(B)(i) has been terminated or laid off, or has received 
a notice of termination or layoff, from employment as a 
result of any permanent closure of, or any substantial 
layoff at, a plsmt, facility, or enterprise; 
(ii) is employed at a facility at which the employer 
has made a general announcement that such facility will 
close within 180 days; or 
(iii) for purposes of eligibiUty to receive services other 
than training services described in section 134(dX4), inten-
sive services described in section 134(dX3), or supportive 
services, is employed at a facility at which the employer 
has made a general announcement that such facility will 
close; 
(C) was self-employed (including employment as a 
farmer, a rancher, or a fisherman) but is unemployed as 
a result of general economic conditions in the community 
in which the individual resides or because of natural disas-
ters; or 
(D) is a displaced homemaker. 
(10) DISPLACED HOMEMAKER.—^The term "displaced home-
maker^ means an individual who has been providing unpaid 
services to family members in the home and who— 
(A) has been dependent on the income of another family 
member but is no longer supported by that income; and 
(B) is unemployed or underemployed and is experienc-
ing difficulty in obtaining or upgrading emplo3anent. 
(11) ECONOMIC DEVELOPMENT AGENCIES.—The term "eco-
nomic development agencies" includes local planning and zoning 
commissions or boards, community development agencies, and 
other local agencies and institutions responsible for regulating, 
promoting, or assisting in local economic development. 
(12) ELIGIBLE PROVIDER.—^The term "eligible provider", 
used with respect to— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 941 
(A) training services, means a provider who is identi-
fied in accordance with section 122(e)(3); 
(B) intensive services, means a provider who is identi-
fied or awarded a contract as described in section 
134(d)(3)(B); 
(C) youth activities, means a provider who is awarded 
a grant or contract in accordance with section 123; or 
(D) other workforce investment activities, means a pub-
Uc or private entity selected to be responsible for such 
activities, such as a one-stop operator designated or cer-
tified under section 121(d). 
(13) ELIGIBLE YOUTH.—^Except as provided in subtitles C 
and D, the term "eligible youth" means an individual who— 
(A) is not less than age 14 and not more than 
age 21; 
(B) is a low-income individual; and 
(C) is an individual who is one or more of the following: 
(i) Deficient in basic literacy skills. 
(ii) A school dropout. 
(iii) Homeless, a runaway, or a foster child. 
(iv) Pregnant or a parent. 
(v) An offender. 
(vi) An individual who requires additional assist-
ance to complete an educational program, or to secure 
and hold employment. 
(14) EMPLOYMENT AND TRAINING ACTIVITY.—The term 
"employment and training activity" means an activity described 
in section 134 that is carried out for an adult or dislocated 
worker. 
(15) FAMILY.—^The term "family means two or more per-
sons related by blood, marriage, or decree of court, who are 
living in a single residence, and are included in one or more 
of the following categories: 
(A) A husband, wife, and dependent children. 
(B) A parent or guardian and dependent children. 
(C) A husband and wife. 
(16) GOVERNOR.—The term "Governor" means the chief 
executive of a State. 
(17) INDIVIDUAL WITH A DISABILITY.— 
(A) IN GENERAL.—^The term "individual with a disabil-
ity" means an individual with any disability (as defined 
in section 3 of the Americans with Disabilities Act of 1990 
(42 U.S.C. 12102)). 
(B) 
INDIVIDUALS 
WITH 
DISABILITIES.—The 
term 
"individuals with disabilities" means more thsin one individ-
ual with a disability. 
(18) LABOR MARKET AREA.—The term "labor market area" 
means an economically integrated geographic area within which 
individuals can reside and find emplo3anent within a reasonable 
distance or can readily change emplojnnent without changing 
their place of residence. Sudi an area shall be identified in 
accordance with criteria used by the Bureau of Labor Statistics 
of the Department of Labor in defining such areas or similar 
criteria established by a Governor. 
(19) LITERACY.—The term "Uteracy" has the meaning given 
the term in section 203. 
112 STAT. 942 
PUBLIC LAW 105-220—AUG. 7, 1998 
(20) LOCAL AREA.—^The term "local area" means a local 
workforce investment area designated under section 116. 
(21) LOCAL BOARD.—^The term "local board" means a local 
workforce investment board established under section 117. 
(22) 
LOCAL PERFORMANCE MEASURE.—^The term "local 
performance measure" means a performance measure estab-
lished under section 136(c). 
(23) LOCAL EDUCATIONAL AGENCY.—^The term "local edu-
cational agency" has the meaning given the term in section 
14101 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 8801). 
(24) LOWER LIVING STANDARD INCOME LEVEL.—^The term 
"lower living standard income level" means that income level 
(adjusted for regional, metropolitan, urban, and rural dif-
ferences and family size) determined annually by the Secretary 
based on the most recent lower living family budget issued 
by the Secretary. 
(25) 
LOW-INCOME 
INDIVIDUAL.—The term 
"low-income 
individual" means an individual who— 
(A) receives, or is a member of a family that receives, 
cash payments under a Federal, State, or local income-
based public assistance program; 
(B) received an income, or is a member of a family 
that received a total family income, for the 6-month period 
prior to application for the program involved (exclusive 
of unemployment compensation, child support payments, 
payments described in subparagraph (A), and old-age and 
survivors insurance benefits received under section 202 
of the Social Security Act (42 U.S.C. 402)) that, in relation 
to family size, does not exceed the higher of— 
(i) the poverty line, for an equivalent period; or 
(ii) 70 percent of the lower living standard income 
level, for an equivalent period; 
(C) is a member of a household that receives (or has 
been determined within the 6-month period prior to applica-
tion for the program involved to be eligible to receive) 
food stamps pursuant to the Food Stamp Act of 1977 (7 
U.S.C. 2011 et seq.); 
(D) qualifies as a homeless individual, as defined in 
subsections (a) and (c) of section 103 of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11302); 
(E) is a foster child on behalf of whom State or local 
government pajmaents are made; or 
(F) in cases permitted by regulations promulgated by 
the Secretary of Labor, is an individual with a disability 
whose own income meets the requirements of a program 
described in subparagraph (A) or of subparagraph (B), but 
who is a member of a family whose income does not meet 
such requirements. 
(26) NONTRADITIONAL EMPLOYMENT.—^The term "nontradi-
tional employment" refers to occupations or fields of work for 
which individuals from one gender comprise less than 25 per-
cent of the individuals employed in each such occupation or 
field of work. 
(27) OFFENDER.—^The term "offender" means any adult or 
juvenile— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 943 
(A) who is or has been subject to any stage of the 
criminal justice process, for whom services under this Act 
may be beneficial; or 
(B) who requires assistance in overcoming artificial 
barriers to employment resulting from a record of arrest 
or conviction. 
(28) 
OLDER INDIVIDUAL.—The term "older individual" 
means an individual age 55 or older. 
(29) ONE-STOP OPERATOR.—The term "one-stop operator" 
means 1 or more entities designated or certified under section 
121(d). 
(30) ONE-STOP PARTNER.—The term "one-stop partner" 
means— 
(A) an entity described in section 121(b)(1); and 
(B) an entity described in section 121(b)(2) that is 
participating, with the approval of the local board and 
chief elected official, in the operation of a one-stop delivery 
system. 
(31) ON-THE-JOB TRAINING.—The term "on-the-job training" 
means training by an employer that is provided to a paid 
participant while engaged in productive work in a job that— 
(A) provides knowledge or skills essential to the full 
and adequate performance of the job; 
(B) provides reimbursement to the employer of up to 
50 percent of the wage rate of the participant, for the 
extraordinary costs of providing the training and additional 
supervision related to the training; and 
(C) is limited in duration as appropriate to the occupa-
tion for which the participant is being trained, taking into 
account the content of the training, the prior work experi-
ence of the participant, and the service strategy of the 
participant, as appropriate. 
(32) OUTLYING AREA.—The term "outlying area" means the 
United States Virgin Islands, Guam, American Samoa, the 
Commonwealth of the Northern Mariana Islands, the Republic 
of the Marshall Islands, the Federated States of Micronesia, 
and the Republic of Palau. 
(33) OUT-OF-SCHOOL YOUTH.—The term 
"out-of-school 
youth" means— 
(A) an eligible youth who is a school dropout; or 
(B) an eligible youth who has received a secondary 
school diploma or its equivalent but is basic skills deficient, 
unemployed, or underemployed. 
(34) PARTICIPANT.—The term "participant" means an 
individual who has been determined to be eligible to participate 
in and who is receiving services (except foUowup services 
authorized under this title) under a program authorized by 
this title. Participation shall be deemed to commence on the 
first day, following determination of eligibility, on which the 
individual began receiving subsidized employment, training, 
or other services provided under this title. 
(35) POSTSECONDARY EDUCATIONAL INSTITUTION.—The term 
"postsecondary educational institution" means an institution 
of higher education, as defined in section 481 of the Higher 
Education Act of 1965 (20 U.S.C. 1088). 
(36) POVERTY LINE.—The term "poverty line" means the 
poverty line (as defined by the Office of Management and 
112 STAT. 944 
PUBLIC LAW 105-220—AUG. 7, 1998 
Budget, and revised annually in accordance with section 673(2) 
of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
applicable to a family of the size involved. 
(37) PUBLIC ASSISTANCE.—The term "public assistance" 
means Federal, State, or local government cash pajrments for 
which eligibility is determined by a needs or income test. 
(38) RAPID RESPONSE ACTIVITY.—-The term "rapid response 
activity" means an activity provided by a State, or by an entity 
designated by a State, with funds provided by the State under 
section 134(a)(1)(A), in the case of a permanent closure or 
mass layoff at a plant, facility, or enterprise, or a natural 
or other disaster, that results in mass job dislocation, in order 
to assist dislocated workers in obtaining reemplojmtient as soon 
as possible, with services including— 
(A) the establishment of onsite contact with employers 
and employee representatives— 
(i) immediately after the State is notified of a 
current or projected permEinent closure or mass layoff; 
or 
(ii) in the case of a disaster, immediately after 
the State is made aware of mass job dislocation as 
a result of such disaster; 
(B) the provision of information and access to available 
employment and training activities; 
(C) assistance in establishing a labor-management 
committee, voluntarily agreed to by labor and management, 
with the ability to devise and implement a strategy for 
assessing the employment and training needs of dislocated 
workers and obtaining services to meet such needs; 
(D) the provision of emergency assistance adapted to 
the particular closure, layoff, or disaster; and 
(E) the provision of assistance to the local community 
in developing a coordinated response and in obtaining 
access to State economic development assistance. 
(39) SCHOOL DROPOUT.—The term "school dropout" means 
an individual who is no longer attending any school and who 
has not received a secondary school diploma or its recognized 
equivalent. 
(40) SECONDARY SCHOOL.—The term "secondary school" has 
the meaning given the term in section 14101 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 8801). 
(41) SECRETARY.—^The term "Secretary" means the Sec-
retary of Labor, and the term means such Secretary for pur-
poses of section 503. 
(42) STATE.—^The term "State" means each of the several 
States of the United States, the District of Columbia, and 
the Commonwealth of Puerto Rico. 
(43) STATE ADJUSTED LEVEL OF PERFORMANCE.—^The term 
"State adjusted level of performance" means a level described 
in clause (iii) or (v) of section 136(b)(3)(A). 
(44) STATE BOARD.—^The term "State board" means a State 
workforce investment board established under section 111. 
(45) STATE PERFORMANCE MEASURE.—^The term "State 
performance measure" means a performance measure estab-
lished under section 136(b). 
(46) SUPPORTIVE SERVICES.—^The term "supportive services" 
means services such as transportation, child care, dependent 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 945 
care, housing, and needs-related payments, that are necessary 
to enable an individual to participate in activities authorized 
under this title, consistent with the provisions of this title. 
(47) UNEMPLOYED INDIVIDUAL.—The term "unemployed 
individual" means an individual who is without a job and 
who wants and is available for work. The determination of 
whether an individual is without a job shall be made in accord-
ance with the criteria used by the Bureau of Labor Statistics 
of the Department of Labor in defining individuals 
as 
unemployed. 
(48) UNIT OF GENERAL LOCAL GOVERNMENT.—The term 
"unit of genersd local government" means any general purpose 
political subdivision of a State that has the power to levy 
taxes and spend funds, as well as general corporate and police 
powers. 
(49) VETERAN; RELATED DEFINITION.— 
(A) VETERAN.—^The term "veteran" means an individual 
who served in the active military, naval, or air service, 
and who was discharged or released from such service 
under conditions other than dishonorable. 
(B) 
RECENTLY 
SEPARATED 
VETERAN.—^The 
term 
^ 
"recently separated veteran" means any veteran who 
applies for participation under this title within 48 months 
after the discharge or release from active military, naval, 
or air service. 
(50) VOCATIONAL EDUCATION.—^The term "vocational edu-
cation" has the meaning given the term in section 521 of 
the Carl D. Perkins Vocational and Applied Technology Edu-
cation Act (20 U.S.C. 2471). 
(51) 
WORKFORCE 
INVESTMENT 
ACTIVITY.—^The 
term 
"workforce investment activity" means an employment and 
training activity, and a youth activity. 
(52) YOUTH ACTIVITY.—The term "youth activity" means 
an activity described in section 129 that is carried out for 
eligible youth (or as described in section 129(c)(5)). 
(53) YOUTH COUNCIL.—The term "youth council" means 
a council established under section 117(h). 
Subtitle B—Statewide and Local Workforce 
Investment Systems 
SEC. 106. PURPOSE. 
29USC281L 
The purpose of this subtitle is to provide workforce investment 
activities, through statewide and local workforce investment sys-
tems, that increase the employment, retention, and earnings of 
participants, and increase occupational skill attainment by partici-
pants, and, as a result, improve the quality of the workforce, reduce 
welfare dependency, and enhance the productivity and competitive-
ness of the Nation. 
CHAPTER 1—STATE PROVISIONS 
SEC. 111. STATE WORKFORCE INVESTMENT BOARDS. 
Establishment. 
(a) IN GENERAL.—^The Grovemor of a State shall establish a 
State workforce investment board to assist in the development 
112 STAT. 946 
PUBLIC LAW 105-220—AUG. 7, 1998 
of the State plan described in section 112 and to carry out the 
other functions described in subsection (d). 
(b) MEMBERSHIP.— 
(1) IN GENERAL.—The State Board shall include— 
(A) the Grovemor; 
(B) 2 members of each chamber of the State legislature, 
appointed by the appropriate presiding officers of each 
such chamber; and 
(C) representatives appointed by the Grovernor, who 
are— 
(i) representatives of business in the State, who— 
(I) are owners of businesses, chief executives 
or operating officers of businesses, and other busi-
ness executives or employers with optimum policy-
making or hiring authority, including members of 
local boards described in section 117(b)(2)(A)(i); 
(II) represent businesses with employment 
opportunities 
that 
reflect 
the 
emplojonent 
opportunities of the State; and 
(III) are appointed from among individucds 
nominated by State business organizations and 
business trade associations; 
(ii) chief elected officials (representing both cities 
and counties, where appropriate); 
(iii) representatives of labor organizations, who 
have been nominated by State labor federations; 
(iv) representatives of individuals and organiza-
tions that have experience with respect to youth activi-
ties; 
(v) representatives of individuals and organizations 
that have experience and expertise in the delivery 
of workforce investment activities, including chief 
executive officers of community colleges and commu-
nity-based organizations within the State; 
(vi)(I) the lead State agency officials with respon-
sibility for the programs and activities that are 
described in section 121(b) and carried out by one-
stop partners; and 
(II) in any case in which no lead State agency 
official has responsibility for such a program, service, 
or activity, a representative in the State with expertise 
relating to such program, service, or activity; and 
(vii) such other representatives and State agency 
officials as the Grovemor may designate, such as the 
State agency officials responsible for economic develop-
ment and juvenile justice programs in the State. 
(2) AUTHORITY AND REGIONAL REPRESENTATION OF BOARD 
MEMBERS.—^Members of the board that represent organizations, 
agencies, or other entities shall be individuals with optimum 
policymaking authority within the organizations, agencies, or 
entities. The members of the board shall represent diverse 
regions of the State, including urban, rural, and suburban 
areas. 
(3) MAJORITY.—^A majority of the members of the State 
Board shall be representatives described in paragraph (l)(C)(i). 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 947 
(c) CHAIRMAN.—^The Governor shall select a chairperson for 
the State Board from among the representatives described in sub-
section (b)(l)(C)(i). 
(d) FUNCTIONS.—The State Board shall assist the Governor 
in— 
(1) development of the State plan; 
(2) development and continuous improvement of a state-
wide system of activities that are funded under this subtitle 
or carried out through a one-stop delivery system described 
in section 134(c) that receives funds under this subtitle (referred 
to in this title as a "statewide workforce investment system"), 
including— 
(A) development of linkages in order to assure coordina-
tion and nonduplication among the programs and activities 
described in section 121(b); and 
(B) review of local plans; 
(3) commenting at least once annually on the measures 
taken pursuant to section 113(b)(14) of the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C 
2323(b)(14)); 
(4) designation of local areas as required in section 116; 
(5) development of allocation formulas for the distribution 
of funds for adult employment and training activities and youth 
activities to local areas as permitted under sections 128(b)(3)(B) 
and 133(b)(3)(B); 
(6) development and continuous improvement of com-
prehensive State 
performance 
measures, including 
State 
adjusted levels of performance, to assess the effectiveness of 
the workforce investment activities in the State as required 
under section 136(b); 
(7) preparation of the annual report to the Secretary 
described in section 136(d); 
(8) development of the statewide employment statistics sys-
tem described in section 15(e) of the Wagner-Peyser Act; and 
(9) development of an application for an incentive grant 
under section 503. 
(e) ALTERNATIVE ENTITY.— 
(1) IN GENERAL.—^For purposes of complying with sub-
sections (a), (b), and (c), a State may use any State entity 
(including a State council, State workforce development board, 
combination of regional workforce development boards, or simi-
lar entity) that— 
(A) was in existence on December 31, 1997; 
(B)(i) was established pursuant to section 122 or title 
VII of the Job Training Partnership Act, as in effect on 
December 31, 1997; or 
(ii) is substantially similar to the State board described 
in subsections (a), (b), and (c); and 
(C) includes representatives of business in the State 
and representatives of labor organizations in the State. 
(2) REFERENCES.—^References in this Act to a State board 
, - shall be considered to include such an entity. 
(f) CONFLICT OF INTEREST.—^A member of a State board may 
not— 
(1) vote on a matter under consideration by the State 
board— 
112 STAT. 948 
PUBLIC LAW 105-220—AUG. 7, 1998 
(A) regarding the provision of services by such member 
(or by an entity that such member represents); or 
(B) that would provide direct financial benefit to such 
member or the immediate family of such member; or 
(2) engage in any other activity determined by the Grovemor 
to constitute a conflict of interest as specified in the State 
plan. 
(g) SUNSHINE PROVISION.—The State board shall make avail-
able to the public, on a regular basis through open meetings, 
information regarding the activities of the State board, including 
information regarding the State plan prior to submission of the 
plan, information regarding membership, and, on request, minutes 
of formal meetings of the State board. 
29 use 2822. 
SEC. 112. STATE PLAN. 
(a) IN GENERAL.—^For a State to be eligible to receive an allot-
ment under section 127 or 132, or to receive financial assistance 
under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), the Governor 
of the State shall submit to the Secretary for consideration by 
the Secretary, a single State plan (referred to in this title as 
the "State plan") that outlines a 5-year strategy for the statewide 
workforce investment system of the State and that meets the 
requirements of section 111 and this section. 
(b) CONTENTS.—The State plan shall include— 
(1) a description of the State board, including a description 
of the manner in which such board collaborated in the develop-
ment of the State plan and a description of how the board 
will continue to collaborate in carrying out the functions 
described in section 111(d); 
(2) a description of State-imposed requirements for the 
statewide workforce investment system; 
(3) a description of the State performance accountability 
system developed for the workforce investment activities to 
be carried out through the statewide workforce investment 
system, that includes information identifying State performance 
measures as described in section 136(bX3XAXii); 
(4) information describing— 
(A) the needs of the State with regard to current and 
projected employment opportunities, by occupation; 
(B) the job skills necessary to obtain such employment 
opportunities; 
(C) the skills and economic development needs of the 
State; and 
(D) the t3rpe and availability of workforce investment 
activities in the State; 
(5) an identification of local areas designated in the State, 
including a description of the process used for the designation 
of such areas; 
(6) an identification of criteria to be used by chief elected 
officials for the appointment of members of local boards based 
on the requirements of section 117; 
(7) the detailed plans required under section 8 of the 
Wagner-Peyser Act (29 U.S.C. 49g); 
(8XA) a description of the procedures that will be taken 
by the State to assure coordination of and avoid duplication 
among— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 949 
(i) workforce investment activities authorized under 
this title; 
(ii) other activities authorized under this title; 
(iii) programs authorized under the Wagner-Peyser Act 
(29 U.S.C. 49 et seq.), title II of this Act, title I of the 
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), part 
A of title TV of the Social Security Act (42 U.S.C. 601 
et seq.), and section 6(d)(4) of the Food Stamp Act of 
1977 (7 U.S.C. 2015(d)(4)), activities authorized under title 
V of the Older Americans Act of 1965 (42 U.S.C. 3056 
et seq.), and postsecondary vocational education activities 
authorized under the Carl D. Perkins Vocational and 
Applied Technology Education Act (20 U.S.C. 2301 et seq.); 
(iv) work programs authorized under section 6(o) of 
the Food Stamp Act of 1977 (7 U.S.C. 2015(o)); 
(v) activities authorized under chapter 2 of title II 
of the Trade Act of 1974 (19 U.S.C. 2271 et seq.); 
(vi) activities authorized under chapter 41 of title 38, 
United States Code; 
(vii) emplo3anent and training activities carried out 
under the Community Services Block Grant Act (42 U.S.C. 
9901 et seq.); 
(viii) activities authorized under the National and 
Community Service Act of 1990 (42 U.S.C. 12501 et seq.); 
(ix) employment and training activities carried out by 
the Department of Housing and Urban Development; and 
(x) programs authorized under State unemployment 
compensation laws (in accordance with applicable Federal 
law); and 
(B) a description of the common data collection and report-
ing processes used for the programs and activities described 
in subparagraph (A); 
(9) a description of the process used by the State, consistent 
with section 111(g), to provide an opportunity for public com-
ment, including comment by representatives of businesses and 
representatives of labor organizations, and input into develop-
ment of the plan, prior to submission of the plan; 
(10) information identif3dng how the State will use funds 
the State receives under this subtitle to leverage other Federal, 
State, local, and private resources, in order to maximize the 
effectiveness of such resources, and to expand the participation 
of business, employees, and individuals in the statewide 
workforce investment system; 
(11) assurances that the State will provide, in accordance 
with section 184 for fiscal control and fund accounting proce-
dures that may be necessary to ensure the proper disbursement 
of, and accounting for, funds paid to the State through the 
allotments made under sections 127 and 132; 
(12)(A) a description of the methods and factors the State 
will use in distributing funds to local areas for youth activities 
and adult emplo5rment and training activities under sections 
128(b)(3)(B) and 133(b)(3)(B), including— 
(i) a description of how the individuals and entities 
represented on the State board were involved in determin-
ing such methods and factors of distribution; and 
60-194O-96-3: QL3Part2 
112 STAT. 950 
PUBLIC LAW 105-220—AUG. 7, 1998 
(ii) a description of how the State consulted with chief 
elected officiEds in local areas throughout the State in deter-
mining such distribution; 
(B) assurances that the funds will be distributed equitably 
throughout the State, and that no local areas will suffer signifi-
cant shifts in funding from year to year; and 
(C) a description of the formula prescribed by the Grovemor 
pursuant to section 133(b)(2)(B) for the allocation of funds 
to local areas for dislocated worker employment and training 
activities; 
(13) information specifying the actions that constitute a 
conflict of interest prohibited in the State for purposes of sec-
tions 111(f) and 117(g); 
(14) with respect to the one-stop delivery systems described 
in section 134(c) (referred to individually in this title as a 
"one-stop delivery system"), a description of the strategy of 
the State for assisting local areas in development 
and 
implementation of fully operational one-stop delivery systems 
in the State; 
(15) a description of the appeals process referred to in 
section 116(a)(5); 
(16) a description of the competitive process to be used 
by the State to award grants and contrad;s in the State for 
activities carried out under this title; 
(17) with respect to the employment and training activities 
authorized in section 134— 
(A) a description of— 
(i) the employment and training activities that 
will be carried out with the funds received by the 
State through the allotment made under section 132; 
(ii) how the State will provide rapid response 
activities to dislocated workers from funds reserved 
under section 133(a)(2) for such purposes, including 
the designation of an identifiable State rapid response 
dislocated worker unit to carry out statewide rapid 
response activities; 
(iii) the procedures the local boards in the State 
will use to identify eligible providers of training serv-
ices described in section 134(d)(4) (other than on-the-
job training or customized training), as required under 
section 122; and 
(iv) how the State will serve the emplojrment and 
training needs of dislocated workers (including dis-
placed homemakers), low-income individuals (including 
recipients of public assistsmce), individuals training 
for nontraditional emplo5anent, and other individuals 
with multiple barriers to employment (including older 
individuals and individuals with disabilities); and 
(B) an assurance that veterans will be afforded the 
employment and training activities by the State, to the 
extent practicable; and 
(18) with respect to youth activities authorized in section 
129, information— 
(A) describing the State strategy for providing com-
prehensive services to eligible youth, particularly those 
eligible youth who are recognized as having significant 
barriers to employment; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 951 
(B) identifying the criteria to be used by local boards 
in awarding grants for youth activities, including criteria 
that the Grovemor and local boards will use to identify 
effective £ind ineffective youth activities and providers of 
such activities; 
(C) describing how the State will coordinate the youth 
activities carried out in the State under section 129 with 
the services provided by Job Corps centers in the State 
(where such centers exist); and 
(D) describing how the State will coordinate youth 
activities described in subparagraph (C) with activities car-
ried out through the youth opportunity grants under section 
169. 
(c) PLAN SUBMISSION AND APPROVAL.—A State plan submitted 
to the Secretary under this section by a Governor shall be considered 
to be approved by the Secretary at the end of the 90-day period 
beginning on the day the Secretary receives the plan, unless the 
Secretary makes a written determination, during the 90-day period, 
tha1>-
(1) the plan is inconsistent with the provisions of this 
title; and 
(2) in the case of the portion of the plan described in 
section 8(a) of the Wagner-Peyser Act (29 U.S.C. 49g(a)), the 
portion does not satis^ the criteria for approval provided in 
section 8(d) of such Act. 
(d) MODIFICATIONS TO PLAN.—A State may submit modifications 
to a State plan in accordance with the requirements of this section 
and section 111 as necessary during the 5-year period covered 
by the plan, 
CHAPTER 2—LOCAL PROVISIONS 
SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS. 
29 USC 2831. 
(a) DESIGNATION OF AREAS.— 
(1) IN GENERAL.— 
(A) PROCESS.—^Except as provided in subsection (b), 
and consistent with paragraphs (2), (3), and (4), in order 
for a State to receive an allotment under section 127 or 
132, the Governor of the State shall designate local 
workforce investment areas within the State— 
(i) through consultation with the State board; and 
(ii) after consultation with chief elected officials 
and after consideration of comments received through 
the public comment process as described in section 
112(b)(9). 
(B) CONSIDERATIONS.—^In making the designation of 
local areas, the Governor shall take into consideration the 
following: 
(i) Greographic areas served by local educational 
agencies and intermediate educational agencies. 
(ii) Geographic £ireas served by postsecondary 
educational institutions and area vocational education 
schools. 
(iii) The extent to which such local areas are 
consistent with labor market areas. 
(iv) The distance that individuals will need to 
travel to receive services provided in such local areas. 
112 STAT. 952 
PUBLIC LAW 105-220—AUG. 7, 1998 
(v) The resources of such local areas that are avail-
able to effectively administer the activities carried out 
under this subtitle. 
(2) AUTOMATIC DESIGNATION.—^The Governor shall approve 
any request for designation as a local area— 
(A) from any unit of general local government with 
a population of 500,000 or more; 
(B) of the area served by a rural concentrated employ-
ment program grant recipient of demonstrated effectiveness 
that served as a service delivery area or substate area 
under the Job Training Partnership Act, if the grant recipi-
ent has submitted the request; and 
(C) of an area that served as a service delivery area 
under section 101(a)(4)(A)(ii) of the Job Training Partner-
ship Act (as in effect on the day before the date of enact-
ment of this Act) in a State that has a population of 
not more than 1,100,000 and a population density greater 
than 900 persons per square mile. 
(3) TEMPORARY AND SUBSEQUENT DESIGNATION.— 
(A) CRITERIA.—Notwithstanding paragraph (2)(A), the 
Governor shall approve any request, made not later than 
the date of submission of the initial State plan under 
this subtitle, for temporary designation as a local area 
from any unit of general local government (including a 
combination of such units) with a population of 200,000 
or more that was a service delivery area under the Job 
Training Partnership Act on the day before the date of 
enactment of this Act if the Governor determines that 
the area— 
(i) performed successfully, in each of the last 2 
years prior to the request for which data are available, 
in the delivery of services to participants under part 
A of title II and title III of the Job Training Partnership 
Act (as in effect on such day); and 
(ii) has sustained the fiscal integrity of the funds 
used by the area to carry out activities under such 
part and title. 
(B) DURATION AND SUBSEQUENT DESIGNATION.—A tem-
porary designation under this paragraph shall be for a 
period of not more than 2 years, after which the designation 
shall be extended until the end of the period covered by 
the State plan if the Governor determines that, during 
the temporary designation period, the area substantially 
met (as defined by the State board) the local performance 
measures for the local area and sustained the fiscal integ-
rity of the funds used by the area to carry out activities 
under this subtitle. 
(C) TECHNICAL ASSISTANCE.—^The Secretary shall pro-
vide the States with technical assistance in making the 
determinations required by this paragraph. The Secretary 
shall not issue regulations governing determinations to 
be made under this paragraph. 
(D) PERFORMED SUCCESSFULLY.—^In this paragraph, the 
term "performed successfully" means that the area involved 
met or exceeded the performance standards for activities 
administered in the area that— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 953 
(i) are established by the Secretary for each year 
and modified by the adjustment methodology of the 
State (used to account for differences in economic condi-
tions, participgoit characteristics, and combination of 
services provided from the combination assumed for 
purposes of the established standards of the Secretary); 
and 
(ii)(I) if the area was designated as both a service 
delivery area and a substate area under the Job Train-
ing Partnership Act (as in effect on the day before 
the date of enactment of this Act)— 
(aa) relate to job retention and earnings, with 
respect to activities carried out under part A of 
title II of such Act (as in effect on such day); 
or 
(bb) relate to entry into employment, with 
respect to activities carried out under title III of 
such Act (as in effect on such day); 
(II) if the area was designated only as a service 
delivery area under such Act (as in effect on such 
day), relate to the standards described in subclause 
(I)(aa);or 
(III) if the area was only designated as a substate 
area under such Act (as in effect on such day), relate 
to the standards described in subclause (I)(bb). 
(E) SUSTAINED THE FISCAL INTEGRITY.—In this para-
graph, the term "sustained the fiscal integrity", used with 
respect to funds used by a service delivery area or local 
area, means that the Secretary has not made a final deter-
mination during any of the last 3 years for which data 
are available, prior to the date of the designation request 
involved, that either the grant recipient or the administra-
tive entity of the area misexpended the funds due to willful 
disregard of the requirements of the Act involved, gross 
negligence, or failure to observe accepted standards of 
administration. 
(4) DESIGNATION ON RECOMMENDATION OF STATE BOARD.— 
The Grovernor may approve a request from any unit of general 
local government (including a combination of such units) for 
designation (including temporary designation) as a local area 
if the State board determines, taking into account the factors 
described in clauses (i) through (v) of paragraph (1)(B), and 
recommends to the Governor, that such area should be so 
designated. 
(5) APPEALS.—^A unit of general local government (including 
a combination of such units) or grant recipient that requests 
but is not granted designation of an area as a local area 
under paragraph (2) or (3) may submit an appeal to the State 
board under an appeal process established in the State plan. 
If the appeal does not result in such a designation, the Sec-
retary, after receiving a request for review from the unit or 
grant recipient and on determining that the unit or grant 
recipient was not accorded procedural rights under the appeal 
process established in the State plan or that the area meets 
the requirements of paragraph (2) or (3), as appropriate, may 
require that the area be designated as a local area under 
such paragraph. 
112 STAT. 954 
PUBLIC LAW 105-220—AUG. 7, 1998 
(b) SMALL STATES.—^The Governor of any State that was a 
single State service delivery area under the Job Training Partner-
ship Act £is of July 1, 1998, may designate the State as a single 
State local area for the purposes of this title. In the case of such 
a designation, the Governor shall identify the State as a local 
area under section 112(b)(5). 
(c) REGIONAL PLANNING AND COOPERATION.— 
(1) PLANNING.—As part of the process for developing the 
State plan, a State may require regional planning by local 
boards for a designated region in the State. The State may 
require the local boards for a designated region to participate 
in a regional planning process that results in the establishment 
of regional performance measures for workforce investment 
activities authorized under this subtitle. The State may award 
regional incentive grants to the designated regions that meet 
or exceed the regional performance measures. 
(2) INFORMATION SHARING.—The State may require the 
local boards for a designated region to share, in feasible cases, 
emplojonent 
statistics, 
information 
about 
emplojnnent 
opportunities and trends, and other types of information that 
would assist in improving the performance of stll local areas 
in the designated region on local performance measures. 
(3) COORDINATION OF SERVICES.—The State may require 
the local boards for a design'ated region to coordinate the provi-
sion of workforce investment activities authorized under this 
subtitle, including the provision of transportation and other 
supportive services, so that services provided through the activi-
ties may be provided across the boundaries of local areas within 
the designated region. 
(4) INTERSTATE REGIONS.—^Two or more States that contain 
an interstate region that is a labor market area, economic 
development region, or other appropriate contiguous subarea 
of the States may designate the area as a designated region 
for purposes of this subsection, and jointly exercise the State 
functions described in paragraphs (1) through (3). 
(5) DEFINITIONS.—In this subsection: 
(A) 
DESIGNATED 
REGION.—^The 
term 
"designated 
region" means a combination of local areas that are partly 
or completely in a single labor msirket area, economic 
development region, or other appropriate contiguous sub-
area of a State, that is designated by the State, except 
as provided in paragraph (4). 
(B) LOCAL BOARD FOR A DESIGNATED REGION.—^The 
term "local board for a designated region" means a local 
board for a local area in a designated region. 
29 use 2832. 
SEC. 117. LOCAL WORKFORCE INVESTMENT BOARDS. 
(a) ESTABLISHMENT.—^There shall be established in each local 
area of a State, and certified by the Governor of the State, a 
locEd workforce investment board, to set policy for the portion of 
the statewide workforce investment system within the local area 
(referred to in this title as a "local workforce investment system"). 
(b) MEMBERSHIP.— 
(1) STATE CRITERIA.—^The Grovemor of the State, in partner-
ship with the State board, shall establish criteria for use by 
chief elected officials in the local sireas for appointment of 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 955 
members of the local boards in such local areas in accordance 
with the requirements of paragraph (2). 
(2) COMPOSITION.—Such criteria shall require, at a mini-
mum, that the membership of each local board— 
(A) shall include— 
(i) representatives of business in the local area, 
who— 
(I) are owners of businesses, chief executives 
or operating officers of businesses, and other busi-
ness executives or employers with optimum policy-
making or hiring authority; 
(II) represent businesses with employment 
opportunities 
that 
reflect 
the 
employment 
opportunities of the local area; and 
(III) are appointed from among individuals 
nominated by local business organizations and 
business trade associations; 
(ii) representatives of local educational entities, 
including representatives of local educational agencies, 
local school boards, entities providing adult education 
and literacy activities, and postsecondary educational 
, 
institutions (including representatives of community 
colleges, where such entities exist), selected from 
among individuals nominated by regional or local edu-
cational agencies, institutions, or organizations rep-
resenting such local educational entities; 
(iii) representatives of labor organizations (for a 
local area in which employees are represented by labor 
organizations), nominated by local labor federations, 
or (for a local area in which no employees are rep-
resented by such organizations), other representatives 
of employees; 
(iv) representatives of community-based organiza-
tions (including organizations representing individuals 
with disabilities and veterans, for a local area in which 
such organizations are present); 
(v) 
representatives 
of economic 
development 
agencies, including private sector economic develop-
ment entities; and 
(vi) representatives of each of the one-stop 
partners; and 
(B) may include such other individuals or representa-
tives of entities as the chief elected official in the local 
area may determine to be appropriate. 
(3) AUTHORITY OF BOARD MEMBERS.—Members of the board 
that represent organizations, agencies, or other entities shall 
be individuals with optimum policymaking authority within 
the organizations, agencies, or entities. 
(4) MAJORITY.—^A majority of the members of the local 
board shall be representatives described in paragraph (2)(A)(i). 
(5) CHAIRPERSON.—The local board shall elect a chairperson 
for the local board from among the representatives described 
in paragraph (2)(A)(i). 
(c) APPOINTMENT AND CERTIFICATION OF BOARD.— 
(1) APPOINTMENT OF BOARD MEMBERS AND ASSIGNMENT OF 
RESPONSIBILITIES.— 
112 STAT. 956 
PUBLIC LAW 105-220—AUG. 7, 1998 
(A) IN GE^fERAL.—^The chief elected official in a local 
area is authorized to appoint the members of the local 
board for such area, in accordance with the State criteria 
established under subsection (b). 
(B) MULTIPLE UNITS OF LOCAL GOVERNMENT IN AREA.— 
(i) IN GENERAL.—^In a case in which a local area 
includes more than 1 unit of general local government, 
the chief elected officials of such units may execute 
an agreement that specifies the respective roles of the 
individual chief elected officials— 
(I) in the appointment of the members of the 
local board from the individuals nominated or rec-
ommended to be such members in accordance with 
the criteria established under subsection (b); and 
(II) in carrying out any other responsibilities 
assigned to such officials under this subtitle. 
(ii) LACK OF AGREEMENT.—If, after a reasonable 
effort, the chief elected officials are unable to reach 
agreement as provided under clause (i), the Grovernor 
may appoint the members of the local board from 
individuals so nominated or recommended. 
(C) CONCENTRATED EMPLOYMENT PROGRAMS.—^In the 
case of a local area designated in accordance with section 
116(a)(2)(B), the governing body of the concentrated 
employment program involved shall act in consultation 
with the chief elected official in the local area to appoint 
members of the local board, in accordance with the State 
criteria established under subsection (b), £ind to carry out 
any other responsibility relating to workforce investment 
activities assigned to such official under this Act. 
(2) CERTIFICATION.— 
(A) IN GENERAL.—^The Grovemor shall, once every 2 
years, certify 1 local board for each local area in the State. 
(B) CRITERIA.—Such certification shall be based on cri-
teria established under subsection (b) and, for a second 
or subsequent certification, the extent to which the local 
board has ensured that workforce investment activities 
carried out in the local area have enabled the local area 
to meet the local performance measures. 
(C) FAILURE TO ACHIEVE CERTIFICATION.—^Failure of 
a local board to achieve certification shall result in 
reappointment and certification of another local board for 
the local area pursuant to the process described in para-
graph (1) and this paragraph. 
(3) DECERTIFICATION.— 
(A) FRAUD, ABUSE, FAILURE TO CARRY OUT FUNCTIONS.— 
Notwithstanding paragraph (2), the Governor may decertify 
a local board, at any time after providing notice and an 
opportunity for comment, for— 
(i) fraud or abuse; or 
(ii) failure to carry out the functions specified for 
the local board in any of paragraphs (1) through (7) 
of subsection (d). 
(B) NONPERFORMANCE.—^Notwithstanding paragraph 
(2), the Governor may decertify a local board if a local 
area fails to meet the local performance measures for such 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 957 
local area for 2 consecutive program years (in accordance 
with section 136(h)). 
(C) PLAN.—If the Governor decertifies a local board 
for a local area under subparagraph (A) or (B), the Governor 
may require that a new local board be appointed and 
certified for the local area pursuant to a reorganization 
plan developed by the Governor, in consultation with the 
chief elected official in the local area, and in accordance 
with the criteria established imder subsection (b). 
(4) SINGLE STATE AREA.—^Notwithstanding subsection (b) 
and paragraphs (1) and (2), if a State described in section 
116(b) indicates in the State plan that the State will be treated 
as a local area for purposes of the application of this title, 
the Governor may designate the State board to carry out any 
of the functions described in subsection (d). 
(d) FUNCTIONS OF LOCAL BOARD.—The functions of the local 
board shall include the following: 
(1) LOCAL PLAN,—Consistent with section 118, each local 
board, in partnership with the chief elected official for the 
local area involved, shall develop and submit a local plan to 
the Governor. 
(2) SELECTION OF OPERATORS AND PROVIDERS.— 
(A) SELECTION OF ONE-STOP OPERATORS.—Consistent 
with section 121(d), the local board, with the agreement 
of the chief elected official— 
(i) shall designate or certify one-stop operators as 
described in section 121(d)(2)(A); and 
(ii) may terminate for cause the eligibility of such 
operators. 
(B) SELECTION OF YOUTH PROVIDERS.—Consistent with 
section 123, the local board shall identify eligible providers 
of youth activities in the local area by awarding grants 
or contracts on a competitive basis, based on the rec-
ommendations of the youth council. 
(C) IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAIN-
ING SERVICES.—Consistent with section 122, the local board 
shall identify 
eligible providers of training 
services 
described in section 134(d)(4) in the local area. 
(D) IDENTIFICATION OF ELIGIBLE PROVIDERS OF INTEN-
SIVE SERVICES.—If the one-stop operator does not provide 
intensive services in a local area, the local board shall 
identify eligible providers of intensive services described 
in section 134(d)(3) in the local area by awarding contracts. 
(3) BUDGET AND ADMINISTRATION.— 
(A) BUDGET.—^The local bosu-d shall develop a budget 
for the purpose of carrying out the duties of the IOCEJ 
board under this section, subject to the approval of the 
chief elected official. 
(B) ADMINISTRATION.— 
(i) GRANT RECIPIENT.— 
(I) IN GENERAL.—The chief elected official in 
a local area shall serve as the local grant recipient 
for, and shall be liable for any misuse of, the 
grant funds allocated to the local area under sec-
tions 128 and 133, unless the chief elected official 
reaches an agreement with the Grovemor for the 
112 STAT. 958 
PUBLIC LAW 105-220—AUG. 7, 1998 
Grovemor to act as the \ocal grant recipient and 
bear such liability. 
(II) DESIGNATION.—^In order to assist in the 
administration of the grant funds, the chief elected 
official or the Grovemor, where the Governor serves 
as the local grant recipient for a local area, may 
designate an entity to serve as a local grant sub-
recipient for such funds or as a local fiscal agent. 
Such designation shall not relieve the chief elected 
official or the Grovemor of the liability for any 
misuse of grant funds as described in subclause 
(I). 
(III) DiSBURSAL.—^The local grant recipient or 
an entity designated under subclause (II) shall 
disburse such funds for workforce investment 
activities at the direction of the local board, pursu-
ant to the requirements of this title, if the direction 
does not violate a provision of this Act. The local 
grant recipient or entity designated under sub-
clause (II) shall disburse the funds immediately 
on receiving such direction from the local board, 
(ii) STAFF.—^The local board may employ staff. 
(iii) GRANTS AND DONATIONS.—^The local board may 
solicit and accept grants and donations from sources 
other than Federal funds made available under this 
Act. 
(4) PROGRAM OVERSIGHT.—^The local board, in partnership 
with the chief elected official, shall conduct oversight with 
respect to local programs of youth activities authorized under 
section 129, local employment and training activities authorized 
under section 134, and the one-stop delivery system in the 
local area. 
(5) NEGOTIATION OF LOCAL PERFORMANCE MEASURES.—^The 
local board, the chief elected official, and the Governor shall 
negotiate and reach agreement on local performance measures 
as described in section 136(c). 
(6) EMPLOYMENT STATISTICS SYSTEM.—^The local board shall 
assist the Grovernor in developing the statewide emplojonent 
statistics system described in section 15(e) of the Wagner-
Peyser Act. 
(7) EMPLOYER LINKAGES.—^The local board shall coordinate 
the workforce investment activities authorized under this sub-
title and carried out in the local area with economic develop-
ment strategies and develop other employer linkages with such 
activities. 
(8) CONNECTING, BROKERING, AND COACHING.—^The local 
board shall promote the participation of private sector employ-
ers in the statewide workforce investment system and ensure 
the effective provision, through the system, of connecting, 
brokering, and coaching activities, through intermediaries such 
as the one-stop operator in the local area or through other 
organizations, to assist such employers in meeting hiring needs. 
(e) SUNSHINE PROVisiON.^The local board shall make available 
to the public, on a regular basis through open meetings, information 
regarding the activities of the local board, including information 
'i,\,'^^f #• ;^«S!CSR*W' 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 959 
regarding the local plan prior to submission of the plan, and regard-
ing membership, the designation and certification of one-stop opera-
tors, and the award of grants or contracts to eligible providers 
of youth activities, and on request, minutes of formal meetings 
of the local board, 
(f) LIMITATIONS.— 
(1) TRAINING SERVICES.— 
(A) IN GENERAL.—^Except as provided in subparagraph 
(B), no local board may provide training services described 
in section 134(d)(4). 
(B) WAIVERS OF TRAINING PROHIBITION.—^The Governor 
of the State in which a local board is located may, pursuant 
to a request from the local board, grant a written waiver 
of the prohibition set forth in subparagraph (A) (relating 
to the provision of training services) for a program of 
training services, if the local board— 
(i) submits to the Cxovemor a proposed request 
for the waiver that includes— 
(I) satisfactory evidence that there is an 
insufficient number of eligible providers of such 
a program of training services to meet local 
demand in the local area; 
(II) information demonstrating that the board 
meets the requirements for an eligible provider 
of training services under section 122; and 
(III) information demonstrating that the pro-
gram of training services prepares participants for 
an occupation that is in demand in the local area; 
(ii) makes the proposed request available to eligible 
providers of training services and other interested 
members of the public for a public comment period 
of not less than 30 days; and 
(iii) includes, in the final request for the waiver, 
the evidence and information described in clause (i) 
and the comments received pursuant to clause (ii). 
(C) DURATION.—A waiver granted to a local board Applicability, 
under subparagraph (B) shall apply for a period of not 
to exceed 1 year. The waiver may be renewed for additional 
periods of not to exceed 1 year, pursuant to requests from 
the local board, if the board meets the requirements of 
subparagraph (B) in making the requests. 
(D) REVOCATION.—^The Governor may revoke a waiver 
granted imder this paragraph during the appropriate 
period described in subparagraph (C) if the State deter-
mines that the local board involved has engaged in a pat-
tern of inappropriate referrals to training services operated 
by the local board. 
(2) CORE SERVICES; INTENSIVE SERVICES; DESIGNATION OR 
CERTIFICATION AS ONE-STOP OPERATORS.^A local board may 
provide core services described in section 134(d)(2) or intensive 
services described in section 134(dX3) through a one-stop deliv-
ery system described in section 134(c) or be designated or 
certified as a one-stop operator only with the agreement of 
the chief elected official and the Grovemor. 
(3) LIMITATION ON AUTHORITY.—^Nothing in this Act shall 
be construed to provide a local board with the authority to 
mandate curricula for schools. 
112 STAT. 960 
PUBLIC LAW 105-220—AUG. 7, 1998 
(g) CONFLICT OF INTEREST.—A member of a local board may 
not— 
(1) vote on a matter under consideration by the local 
board— 
(A) regarding the provision of services by such member 
(or by an entity that such member represents); or 
(B) that would provide direct financial benefit to such 
member or the immediate family of such member; or 
(2) engage in any other activity determined by the Governor 
to constitute a conflict of interest as specified in the State 
plan. 
(h) YOUTH COUNCIL.— 
(1) ESTABLISHMENT.—^There shall be established, as a sub-
group within each local board, a youth council appointed by 
the local board, in cooperation with the chief elected official 
for the local area. 
(2) MEMBERSHIP.—^The membership of each youth council— 
(A) shall include— 
(i) members of the local board described in 
subparagraph (A) or (B) of subsection (b)(2) with special 
interest or expertise in youth policy; 
(ii) representatives of youth service agencies, 
including juvenile justice and local law enforcement 
agencies; 
(iii) representatives of local public housing authori-
ties; 
(iv) parents of eligible youth seeking assistance 
under this subtitle; 
(v) individuals, including former participants, £ind 
representatives of organizations, that have experience 
relating to youth activities; and 
(vi) representatives of the Job Corps, as appro-
priate; and 
(B) may include such other individuals as the chair-
person of the local board, in cooperation with the chief 
elected official, determines to be appropriate. 
(3) RELATIONSHIP TO LOCAL BOARD.—^Members of the youth 
council who are not members of the local board described in 
subparagraphs (A) and (B) of subsection (b)(2) shall be voting 
members of the youth council and nonvoting members of the 
board. 
(4) DUTIES.—^The duties of the youth council include— 
(A) developing the portions of the local plan relating 
to eligible youth, as determined by the chairperson of the 
local board; 
(B) subject to the approval of the local board and 
consistent with section 123— 
(i) recommending eligible providers of youth activi-
ties, to be awarded grants or contracts on a competitive 
basis by the local board to carry out the youth activi-
ties; and 
(ii) conducting oversight with respect to the eligible 
providers of youth activities, in the local area; 
(C) coordinating youth activities authorized under 
section 129 in the local area; and 
(D) other duties determined to be appropriate by the 
chairperson of the local board. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 961 
(i) ALTERNATIVE ENTITY.— 
(1) IN GENERAL.—For purposes of complying with sub-
sections (a), (b), and (c), and paragraphs (1) and (2) of subsection 
(h), a State may use any local entity (including a local council, 
regional workforce development board, or similar entity) that— 
(A) is established to serve the local area (or the service 
delivery area that most closely corresponds to the local 
area); 
(B) is in existence on December 31, 1997; 
(C)(i) is established pursuant to section 102 of the 
Job Training Partnership Act, as in effect on December 
31, 1997; or 
(ii) is substantially similar to the local board described 
in subsections (a), (b), and (c), and paragraphs (1) and 
(2) of subsection (h); and 
(D) includes— 
(i) representatives of business in the local area; 
and 
(ii)(I) representatives of labor organizations (for 
a local area in which employees are represented by 
labor organizations), nominated by local labor federa-
tions; or 
(II) (for a local area in which no employees are 
represented by such organizations), other representa-
tives of employees in the local Eirea. 
(2) REFERENCES.—References in this Act to a local board 
or a youth council shall be considered to include such an entity 
or a subgroup of such an entity, respectively. 
SEC. 118. LOCAL PLAN. 
29 USC 2833. 
(a) IN GENERAL.—^Each local board shall develop and submit 
to the Grovernor a comprehensive 5-year local plan (referred to 
in this title as the "local plan"), in partnership with the appropriate 
chief elected official. The plan shall be consistent with the State 
plan. 
(b) CONTENTS.—^The local plan shall include— 
(1) an identification of— 
(A) the workforce investment needs of businesses, job-
seekers, and workers in the local area; 
(B) the current and projected employment opportuni-
ties in the local area; and 
(C) the job skills necessary to obtain such emplojnnent 
opportunities; 
(2) a description of the one-stop delivery system to be 
established or designated in the local area, including— 
(A) a description of how the IOCEJ board will ensure 
the continuous improvement of eligible providers of services 
through the system and ensure that such providers meet 
the employment needs of local employers and participants; 
and 
(B) a copy of each memorandum of understanding 
described in section 121(c) (between the local board and 
each of the one-stop partners) concerning the operation 
of the one-stop delivery system in the local area; 
(3) a description of the local levels of performance nego-
tiated with the Governor and chief elected official pursuant 
to section 136(c), to be used to measure the performance of 
112 STAT. 962 
PUBLIC LAW 105-220—AUG. 7, 1998 
the local area and to be used by the local board for measuring 
the performance of the loc£il fiscal agent (where appropriate), 
eligible providers, and the one-stop delivery system, in the 
local area; 
(4) a description and assessment of the type and availability 
of adult and dislocated worker employment and training activi-
ties in the local area; 
(5) a description of how the local board will coordinate 
workforce investment activities carried out in the local area 
with statewide rapid response activities, as appropriate; 
(6) a description and assessment of the type and availability 
of youth activities in the local area, including an identification 
of successful providers of such activities; 
(7) a description of the process used by the local board, 
consistent with subsection (c), to provide an opportunity for 
public comment, including comment by representatives of 
businesses and comment by representatives of labor organiza-
tions, and input into the development of the local plan, prior 
to submission of the plan; 
(8) an identification of the entity responsible for the dis-
bursal of grant funds described in section 117(d)(3)(B)(i)(III), 
as determined by the chief elected official or the Grovemor 
under section 117(d)(3)(B)(i); 
(9) a description of the competitive process to be used 
to award the grants and contracts in the local area for activities 
carried out under this subtitle; and 
(10) such other information as the Grovernor may require. 
(c) PROCESS.—^Prior to the date on which the local board submits 
a local plan under this section, the local board shall— 
(1) make available copies of a proposed local plan to the 
public through such means as public hearings and local news 
media; 
(2) allow members of the local board and members of the 
public, including representatives of business and representa-
tives of labor organizations, to submit comments on the pro-
posed local plan to the local board, not later than the end 
of the 30-day period beginning on the date on which the pro-
posed local plan is made available; and 
(3) include with the local plan submitted to the Governor 
under this section any such comments that represent disagree-
ment with the plan. 
(d) PLAN SUBMISSION AND APPROVAL.—A local plan submitted 
to the Governor under this section shall be considered to be 
approved by the Governor at the end of the 90-day period beginning 
on the day the Governor receives the plan, unless the Governor 
makes a written determination during the 90-day period that— 
(1) deficiencies in activities carried out under this subtitle 
have been identified, through audits conducted under section 
184 or otherwise, and the local sirea has not made acceptable 
progress in implementing corrective measures to address the 
deficiencies; or 
(2) the plan does not comply with this title. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 963 
CHAPTER 3—WORKFORCE DIVESTMENT ACTIVITIES 
PROVIDERS 
SEC. 121. ESTABUSHMENT OF ONE-STOP DELIVERY SYSTEMS. 
29 USC 2841. 
(a) IN GENERAL.—Consistent with the State plan, the local 
board for a local area, with the agreement of the chief elected 
official for the local area, shall— 
(1) develop and enter into the memorandum of under- Contracts, 
standing described in subsection (c) with one-stop partners; 
(2) designate or certify one-stop operators under subsection 
(d); and 
(3) conduct oversight with respect to the one-stop delivery 
system in the local area. 
(b) ONE-STOP PARTNERS.— 
(1) REQUIRED PARTNERS.— 
(A) IN GENERAL.—Each entity that carries out a 
program or activities described in subparagraph (B) shall— 
(i) make available to participants, through a one-
stop delivery system, the services described in section 
134(d)(2) that are applicable to such program or activi-
ties; and 
(ii) participate in the operation of such system 
consistent 
with 
the terms 
of the 
memorandum 
described in subsection (c), and with the requirements 
of the Federal law in which the program or activities 
are authorized. 
^ 
(B) PROGRAMS AND ACTIVITIES.—^The programs 
and 
activities referred to in subparagraph (A) consist of— 
(i) programs authorized under this title; 
(ii) programs authorized under the Wagner-Peyser 
Act (29 U.S.C. 49 et seq.); 
(iii) 
adult 
education 
and 
literacy 
activities 
authorized under title II; 
(iv) programs authorized under title I of the 
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.); 
(v) programs authorized under section 403(a)(5) 
of the Social Security Act (42 U.S.C. 603(a)(5)) (as 
added by section 5001 of the Balanced Budget Act 
of 1997); 
(vi) activities authorized under title V of the Older 
Americans Act of 1965 (42 U.S.C. 3056 et seq.); 
(vii) postsecondary vocational education activities 
authorized under the Carl D. Perkins Vocational and 
Applied Technology Education Act (20 U.S.C. 2301 et 
seq.); 
(viii) activities authorized under chapter 2 of title 
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.); 
(ix) activities authorized under chapter 41 of title 
38, United States Code; 
(x) employment and training activities carried out 
under the Community Services Block Grant Act (42 
U.S.C. 9901 et seq.); 
(xi) emplojonent and training activities carried out 
by the Department of Housing and Urban Develop-
ment; and 
112 STAT. 964 
PUBLIC LAW 105-220—AUG. 7, 1998 
(xii) programs authorized under State unemploy-
ment compensation laws (in accordance with applicable 
Federal law). 
(2) ADDITIONAL PARTNERS.— 
(A) IN GENERAL.—In addition to the entities described 
in paragraph (1), other entities that carry out a human 
resource program described in subparagraph (B) may— 
(i) make available to participants, through the one-
stop delivery system, the services described in section 
134(d)(2) that are applicable to such program; and 
(ii) participate in the operation of such system 
consistent with the terms of the 
memorandum 
described in subsection (c), and with the requirements 
of the Federal law in which the program is authorized; 
if the local board and chief elected official involved approve 
such participation. 
(B) PROGRAMS.—^The programs referred to in subpara-
graph (A) may include— 
(i) programs authorized under part A of title IV 
of the Social Security Act (42 U.S.C. 601 et seq.); 
(ii) programs authorized under section 6(d)(4) of 
the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)); 
(iii) work programs authorized under section 6(o) 
of the Food Stamp Act of 1977 (7 U.S.C. 2015(o)); 
(iv) programs authorized under the National and 
Community Service Act of 1990 (42 U.S.C. 12501 et 
seq.); and 
(v) other appropriate Federal, State, or local 
programs, including programs in the private sector. 
(c) MEMORANDUM OF UNDERSTANDING.— 
(1) DEVELOPMENT.—^The local board, with the agreement 
of the chief elected official, shall develop and enter into a 
memorandum of understanding (between the local board and 
the one-stop partners), consistent with paragraph (2), concern-
ing the operation of the one-stop delivery system in the local 
area. 
(2) CONTENTS.—^Each memorandum of understanding shall 
contain— 
(A) provisions describing— 
(i) the services to be provided through the one-
stop delivery system; 
(ii) how the costs of such services and the operating 
costs of the system will be funded; 
(iii) methods for referral of individuals between 
the one-stop operator and the one-stop partners, for 
the appropriate services and activities; and 
(iv) the duration of the memorandum and the 
procedures for amending the memorandum during the 
term of the memorandum; and 
(B) such other provisions, consistent with the require-
ments of this title, as the parties to the agreement deter-
mine to be appropriate. 
(d) ONE-STOP OPERATORS.— 
(1) DESIGNATION AND CERTIFICATION.—Consistent with 
paragraphs (2) and (3), the local bosird, with the agreement 
of the chief elected official, is authorized to designate or certify 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 965 
one-stop operators and to terminate for cause the eligibility 
of such operators. 
(2) ELIGIBILITY,—^To be eligible to receive funds made avsiil-
able under this subtitle to operate a one-stop center referred 
to in section 134(c), an entity (which may be a consortium 
of entities)— 
(A) sh£dl be designated or certified as a one-stop 
operator— 
(i) through a competitive process; or 
(ii) in accordance with an agreement reached 
between the local board and a consortium of entities 
that, at a minimum, includes 3 or more of the one-
stop partners described in subsection (b)(1); and 
(B) may be a public or private entity, or consortium 
of entities, of demonstrated effectiveness, located in the 
local area, which may include— 
(i) a postsecondary educational institution; 
(ii) an emplo3anent service agency established 
under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), 
on behalf of the local office of the agency; 
(iii) a private, nonprofit organization (including 
a community-based organization); 
(iv) a private for-profit entity; 
(v) a government agency; and 
(vi) another interested organization or entity, 
which may include a local chamber of commerce or 
other business organization. 
(3) EXCEPTION.—Elementary schools and secondary schools 
shall not be eligible for designation or certification as one-
stop operators, except that nontraditional public secondary 
schools and area vocational education schools shall be eligible 
for such designation or certification. 
(e) ESTABLISHED 0^fE-STOP DELIVERY SYSTEM.—If a one-stop 
delivery system has been established in a local area prior to the 
date of enactment of this Act, the local board, the chief elected 
official, and the Governor involved may agree to certify an entity 
carrying out activities through the system as a one-stop operator 
for purposes of subsection (d), consistent with the requirements 
of subsection (b), of the memorandum of understanding, and of 
section 134(c). 
SEC. 122. roENnFICATION OF EUGIBLE PBOVTOERS OF TRAINING 29USC2842. 
SERVICES. 
(a) ELIGIBILITY REQUIREMENTS.— 
(1) IN GENERAL.—Except as provided in subsection (h), 
to be identified as an eli^ble provider of training services 
described in section 134(d)(4) (referred to in this section as 
"training services") in a local area and to be eligible to receive 
funds made available under section 133(b) for the provision 
of training services, a provider of such services shall meet 
the requirements of this section. 
(2) PROVIDERS.—Subject to the provisions of this section, 
to be eligible to receive the funds, the provider shall be— 
(A) a postsecondary educational institution that— 
(i) is eligible to receive Federal funds under title 
IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.); and 
112 STAT. 966 
PUBLIC LAW 105-220—AUG. 7, 1998 
(ii) provides a program that leads to an associate 
degree, baccalaureate degree, or certificate; 
(B) an entity that carries out programs under the 
Act of August 16, 1937 (commonly known as the "National 
Apprenticeship Act"; 50 Stat. 664, chapter 663; 29 U.S.C. 
50 et seq.); or 
(C) another public or private provider of a program 
of training services. 
(b) INITIAL ELIGIBILITY DETERMINATION.— 
(1) POSTSECONDARY EDUCATIONAL INSTITUTIONS AND ENTI-
TIES CARRYING OUT APPRENTICESHIP PROGRAMS.—^To be initially 
eligible to receive funds as described in subsection (a) to carry 
out a program described in subparagraph (A) or (B) of sub-
section (a)(2), a provider described in subparagraph (A) or (B), 
respectively, of subsection (a)(2) shall submit an application, 
to the local board for the local area in which the provider 
desires to provide training services, at such time, in such man-
ner, and containing such information as the local board may 
require. 
(2) OTHER ELIGIBLE PROVIDERS.— 
(A) PROCEDURE.—^Each Grovemor of a State shall estab-
lish a procedure for use by local boards in the State in 
determining the initial eligibility of a provider described 
in subsection (a)(2)(C) to receive funds as described in 
subsection (a) for a program of training services, including 
the initial eligibility of— 
(i) a postsecondary educational institution to 
receive such funds for a program not described in 
subsection (a)(2)(A); and 
(ii) a provider described in subsection (a)(2)(B) to 
receive such funds for a program not described in 
subsection (a)(2)(B). 
(B) RECOMMENDATIONS.—In developing such proce-
dure, the Governor shall solicit and take into consideration 
the recommendations of local boards and providers of train-
ing services within the State. 
(C) OPPORTUNITY TO SUBMIT COMMENTS.—^The Gov-
ernor shall provide an opportunity, during the development 
of the procedure, for interested members of the public, 
including representatives of business and labor organiza-
tions, to submit comments on such procedure. 
(D) REQUIREMENTS.—^In establishing the procedure, the 
Governor shall require that, to be initially eligible to receive 
funds as described in subsection (a) for a program, a pro-
vider described in subsection (a)(2)(C)— 
(i) shall submit an application, to the local board 
for the local area in which the provider desires to 
provide training services, at such time and in such 
manner as may be required, and containing a descrip-
tion of the program; 
(ii) if the provider provides training services 
through a program on the date of application, shall 
include in the application an appropriate portion of 
the 
performance 
information 
and 
program 
cost 
information described in subsection (d) for the program, 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 967 
as specified in the procedure, and shall meet appro-
priate levels of performance for the program, as speci-
fied in the procedure; and 
(iii) if the provider does not provide training serv-
ices on such date, shall meet appropriate requirements, 
as specified in the procedure, 
(c) SUBSEQUENT ELIGIBILITY DETERMINATION.— 
(1) PROCEDURE.—^Each Governor of a State shall establish 
a procedure for use by local boards in the State in determining 
the eligibility of a provider described in subsection (a)(2) to 
continue to receive funds as described in subsection (a) for 
a program after an initial period of eligibility under subsection 
(b) (referred to in this section as "subsequent eligibility"). 
(2) RECOMMENDATIONS.—^In developing such procedure, the 
Governor shall solicit and take into consideration the rec-
ommendations of local boards £ind providers of training services 
within the State. 
(3) 
OPPORTUNITY TO SUBMIT COMMENTS.—^The Governor 
shall provide an opportunity, during the development of the 
procedure, for interested members of the public, including rep-
resentatives of business and labor organizations, to submit 
comments on such procedure. 
(4) CONSIDERATIONS.—In developing such procedure, the 
Grovemor shall ensure that the procedure requires the local 
boards to take into consideration, in making the determinations 
of subsequent eligibility— 
(A) the specific economic, geographic, and demographic 
factors in the local areas in which providers seeking eligi-
bility are located; and 
(B) the characteristics of the populations served by 
providers seeking eligibility, including the demonstrated 
difficulties in serving such populations, where applicable. 
(5) REQUIREMENTS.—In establishing the procedure, the 
Grovemor shall require that, to be eligible to continue to receive 
funds as described in subsection (a) for a program after the 
initial period of eligibility, a provider described in subsection 
(a)(2) shall— 
(A) submit the performance information and program 
cost information described in subsection (d)(1) for the pro-
gram and any additional information required to be submit-
ted in accordance with subsection (d)(2) for the program 
annually to the appropriate local board at such time and 
in such manner as may be required; and 
(B) annually meet the performance levels described 
in paragraph (6) for the program, as demonstrated utilizing 
quarterly records described in section 136, in a manner 
consistent with section 136. 
(6) LEVELS OF PERFORMANCE.— 
(A) IN GENERAL.—^At a minimum, the procedure 
described in paragraph (1) shall require the provider to 
meet minimum acceptable levels of performance based on 
the performance information referred to in paragraph 
(5)(A). 
(B) 
HIGHER LEVELS OF PERFORMANCE ELIGIBILITY.— 
The local board may require higher levels of performance 
112 STAT. 968 
PUBLIC LAW 105-220—AUG. 7, 1998 
than the levels referred to in subparagraph (A) for subse-
quent eligibility to receive funds as described in subsection 
(a), 
(d) PERFORMANCE AND COST INFORMATION.— 
(1) REQUIRED INFORMATION.—^For a provider of training 
services to be determined to be subsequently eligible under 
subsection (c) to receive funds as described in subsection (a), 
such provider shall, under subsection (c), submit— 
(A) verifiable program-specific performance information 
consisting of— 
(i) program information, including— 
(I) the program completion rates for all 
individuals participating in the applicable program 
conducted by the provider; 
(II) the percentage of all individuals participat-
ing in the applicable program who obtain unsub-
sidized employment, which may also include 
information 
specifying the percentage of the 
individuals who obtain unsubsidized employment 
in an occupation related to the program conducted; 
and 
(III) the wages at placement in employment 
of all individuals participating in the applicable 
program; and 
(ii) training services information for all partici-
pants who received assistance under section 134 to 
participate in the applicable program, including— 
(I) the percentage of participants who have 
completed the applicable program and who are 
placed in unsubsidized employment; 
(II) the retention 
rates in unsubsidized 
employment of participants who have completed 
the applicable program, 6 months after the first 
day of the employment; 
(III) the wages received by participants who 
have completed the applicable program, 6 months 
after the first day of the employment involved; 
and 
(IV) where appropriate, the rates of licensure 
or certification, attainment of academic degrees 
or equivalents, or attainment of other measures 
of skills, of the graduates of the applicable pro-
gram; and 
(B) information on program costs (such as tuition and 
fees) for participants in the applicable program. 
(2) ADDITIONAL INFORMATION.—Subject to paragraph (3), 
in addition to the performance information described in para-
graph (1)— 
(A) the Governor may require that a provider submit, 
under subsection (c), such other verifiable program-specific 
performance information as the Governor determines to 
be appropriate to obtain such subsequent eligibility, which 
may include information relating to— 
(i) retention rates in employment and the subse-
quent wages of all individuals who complete the 
applicable program; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 969 
(ii) where appropriate, the rates of Ucensure or 
certification of all individuals who complete the pro-
gram; and 
(iii) the percentage of individuals who complete 
the program who attain industry-recognized occupa-
tional skills in the subject, occupation, or industry 
for which training is provided through the program, 
where applicable; and 
(B) the Governor, or the local board, may require a 
provider to submit, under subsection (c), other verifiable 
program-specific performance information to obtain such 
subsequent eligibility. 
(3) CONDITIONS.— 
(A) IN GENERAL.—^If the Governor or a local board 
requests additional information under paragraph (2) that 
imposes extraordinary costs on providers, or if providers 
experience extraordinary costs in the collection of informa-
tion required under paragraph (l)(A)(ii), the Grovernor or 
the local board shall provide access to cost-effective meth-
ods for the collection of the information involved, or the 
Governor shall provide additional resources to assist 
providers in the collection of such information from funds 
made available as described in sections 128(a) and 
133(a)(1), as appropriate. 
(B) HIGHER EDUCATION ELIGIBILITY REQUIREMENTS.— 
The local board and the designated State agency described 
in subsection (i) may accept program-specific performance 
information consistent with the requirements for eligibility 
under title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.) from a provider for purposes of 
enabling the provider to fulfill the applicable requirements 
of this subsection, if such information is substantially simi-
lar to the information otherwise required under this sub-
section. 
(e) LOCAL IDENTIFICATION.— 
Records. 
(1) IN GENERAL.—The local board shall place on a list 
providers submitting an application under subsection (b)(1) and 
providers determined to be initially eligible under subsection 
(b)(2), and retain on the list providers determined to be subse-
quently eligible under subsection (c), to receive funds as 
described in subsection (a) for the provision of training services 
in the local area served by the local board. The list of providers 
shall be accompanied by any performance information and pro-
gram cost information submitted under subsection (b) or (c) 
by the provider. 
(2) SUBMISSION TO STATE AGENCY.—On placing or retaining 
a provider on the list, the local board shall submit, to the 
designated State agency described in subsection (i), the list 
and the performance information and program cost information 
referred to in paragraph (1). If the agency determines, within 
30 days after the date of the submission, that the provider 
does not meet the performance levels described in subsection 
(c)(6) for the program (where applicable), the agency may 
remove the provider from the list for the program. The agency 
may not remove from the list an agency submitting an applica-
tion under subsection (b)(1). 
112 STAT. 970 
PUBLIC LAW 105-220—AUG. 7, 1998 
(3) IDENTIFICATION OF ELIGIBLE PROVIDERS.—A provider 
who is placed or retained on the Ust under paragraph (1), 
and is not removed by the designated State agency under 
paragraph (2), for a program, shall be considered to be identified 
as an eligible provider of training services for the program. 
(4) AVAILABILITY.— 
(A) STATE LIST.—^The designated State agency shall 
compile a single list of the providers identified under para-
graph (3) from all local areas in the State £ind disseminate 
such list, and the performance information and program 
cost information described in paragraph (1), to the one-
stop delivery systems within the State. Such list and 
information shall be made widely available to participants 
in employment and training activities authorized under 
section 134 and others through the one-stop delivery sys-
tem. 
(B) SELECTION FROM STATE LIST.—Individuals eligible 
to receive training services under section 134(d)(4) shgdl 
have the opportunity to select any of the eligible providers, 
from any of the local areas in the State, that are included 
on the list described in subparagraph (A) to provide the 
services, consistent with the requirements of section 134. 
(5) ACCEPTANCE OF INDIVIDUAL TRAINING ACCOUNTS BY 
OTHER STATES.—States may enter into agreements, on a recip-
rocal basis, to permit eligible providers of training services 
in a State to accept individual training accounts provided in 
another State. 
(f) ENFORCEMENT.— 
(1) ACCURACY OF INFORMATION.—If the designated State 
agency, after consultation with the local board involved, deter-
mines that an eligible provider or individual supplying informa-
tion on behalf of the provider intentionally supplies inaccurate 
information under this section, the agency shall terminate the 
eligibility of the provider to receive funds described in sub-
section (a) for any program for a period of time, but not less 
than 2 years. 
(2) NONCOMPLIANCE.—If the designated State agency, or 
the local board working with the State agency, determines 
that an eligible provider described in subsection (a) substan-
tially violates any requirement under this Act, the agency, 
or the local board working with the State agency, may termi-
nate the eligibiUty of such provider to receive funds described 
in subsection (a) for the program involved or take such other 
action as the agency or local board determines to be appropriate. 
(3) REPAYMENT.—A provider whose eligibility is terminated 
under paragraph (1) or (2) for a program shall be liable for 
repayment of all funds described in subsection (a) received 
for the program during any period of noncompliance described 
in such paragraph. 
(4) CONSTRUCTION.—^This subsection and subsection (g) 
shall be construed to provide remedies and penalties that 
supplement, but do not supplant, other civil and criminal rem-
edies and penalties. 
Procedures. 
(g) APPEAL.—^The Grovemor shall establish procedures for 
providers of training services to appeal a denial of eligibility by 
the local board or the designated State agency under subsection 
(b), (c), or (e), a termination of eligibiUty or other action by the 
"e#(s»**5sir* 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 971 
board or agency under subsection (f), or a denial of eligibility 
by a one-stop operator under subsection (h). Such procedures shall 
provide an opportunity for a hearing and prescribe appropriate 
time limits to ensure prompt resolution of the appeal. 
(h) ON-THE-JOB TRAINING OR CUSTOMIZED TRAINING EXCEP-
TION.— 
(1) IN GENERAL.—^Providers of on-the-job training or cus-
tomized training shall not be subject to the requirements of 
subsections (a) through (e). 
(2) COLLECTION AND DISSEMINATION OF INFORMATION.—A 
one-stop operator in a local area shall collect such performance 
information from on-the-job training and customized training 
providers as the Grovemor may require, determine whether 
the providers meet such performance criteria as the Governor 
may require, and disseminate information identifying providers 
that meet the criteria as eligible providers, and the performance 
information, through the one-stop delivery system. Providers 
determined to meet the criteria shall be considered to be identi-
fied as eligible providers of training services. 
(i) ADMINISTRATION.—^The Governor shall designate a State 
agency to make the determinations described in subsection (e)(2), 
take the enforcement actions described in subsection (f), and carry 
out other duties described in this section. 
SEC. 123. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVI- 29 USC 2843. 
TIES. 
From funds allocated under paragraph (2)(A) or (3) of section 
128(b) to a local area, the local board for such area shall identify 
eligible providers of youth activities by awarding grants or contracts 
on a competitive basis, based on the recommendations of the youth 
council and on the criteria contained in the State plan, to the 
providers to carry out the activities, and shall conduct oversight 
with respect to the providers, in the local area. 
CHAPTER 4—YOUTH ACTXVITIES 
SEC. 126. GENERAL AUTHORIZATION. 
29 USC 2851. 
The Secretary 
shall 
make 
an 
allotment 
under 
section 
127(b)(1)(C) to each State that meets the requirements of section 
112 and a grant to each outlying area that complies with the 
requirements of this title, to assist the State or outlying area, 
and to enable the State or outl3dng area to assist local areas, 
for the purpose of providing workforce investment activities for 
eligible youth in the State or outlying area and in the local areas. 
SEC. 127. STATE ALLOTMENTS. 
29 USC 2852. 
(a) IN GENERAL.—The Secretary shall— 
(1) for each fiscal year in which the amount appropriated 
under section 137(a) exceeds $1,000,000,000, reserve a portion 
determined under subsection (b)(1)(A) of the amount appro-
priated under section 137(a) for use under sections 167 (relating 
to migrant and seasonal farmworker programs) and 169 (relat-
ing to youth opportunity grants); and 
(2) use the remainder of the amount appropriated under 
section 137(a) for a fiscal year to make allotments and grants 
in accordance with subparagraphs (B) and (C) of subsection 
(b)(1) and make funds available for use under section 166 
(relating to Native American programs). 
112 STAT. 972 
PUBLIC LAW 105-220—AUG. 7, 1998 
(b) ALLOTMENT AMONG STATES.— 
(1) YOUTH ACTIVITIES.— 
(A) YOUTH OPPORTUNITY GRANTS.— 
(i) IN GENERAL,—^For each fiscal year in which 
the amount appropriated under section 137(a) exceeds 
$1,000,000,000, the Secretary shall reserve a portion 
of the amount to provide youth opportunity grants 
and other activities under section 169 (relating to youth 
opportunity grants) and provide youth activities under 
section 167 (relating to migrant and seasonal farm-
worker programs). 
(ii) PORTION.—^The portion referred to in clause 
(i) shall equal, for a fiscal year— 
(I) except as provided in subclause (II), the 
difference obtained by subtracting $1,000,000,000 
from the amount appropriated under section 137(a) 
for the fiscal year; or 
(II) for any fiscal year in which the amount 
is $1,250,000,000 or greater, $250,000,000. 
(iii) YOUTH ACTIVITIES FOR FARMWORKERS.—^From 
the portion described in clause (i) for a fiscal year, 
the Secretary shall make available 4 percent of such 
portion to provide youth activities under section 167. 
(iv) ROLE MODEL ACADEMY PROJECT.—^From the 
portion described in clause (i) for fiscal year 1999, 
the Secretary shall make available such sums as the 
Secretary determines to be appropriate to carry out 
section 169(g). 
(B) OUTLYING AREAS.— 
(i) IN GENERAL.—^From the amount made available 
under subsection (a)(2) for a fiscal year, the Secretary 
shedl reserve not more than Vi of 1 percent of the 
amount appropriated under section 137(a) for the fiscal 
year— 
(I) to provide assistance to the outlying areas 
to carry out youth activities and statewide 
workforce investment activities; and 
(II) for each of fiscal years 1999, 2000, and 
2001, to carry out the competition described in 
clause (ii), except that the funds reserved to carry 
out such clause for any such fiscal year shall not 
exceed the amount reserved for the Freely Associ-
ated States for fiscal year 1997, from amounts 
reserved under sections 252(a) and 262(a)(1) of 
the Job Training Partnership Act (as in effect on 
the day before the date of enactment of this Act). 
Territories. 
(ii) LIMITATION FOR FREELY ASSOCIATED STATES.— 
(I) COMPETITIVE GRANTS.—The Secretary shall 
use funds described in clause (i)(II) to award grants 
to Guam, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and the Freely 
Associated States to carry out youth activities and 
statewide workforce investment activities. 
(II) AWARD BASIS.—^The Secretary shall award 
grants pursuant to subclause (I) on a competitive 
basis and pursuant to the recommendations of 
experts in the field of employment and trsiining. 
'?^W 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 973 
working through the Pacific Region Educational 
Laboratory in Honolulu, Hawaii. 
(III) ASSISTANCE REQUIREMENTS.—Any Freely 
Associated State that desires to receive assistance 
under this subparagraph shall submit an applica-
tion to the Secretsiry and shall include in the 
application for assistance— 
(aa) information demonstrating that the 
Freely Associated State will meet all condi-
tions that apply to States under this title; 
(bb) an assurance that, notwithstanding 
any other provision of this title, the Freely 
Associated State will use such assistance only 
for the direct provision of services; and 
(cc) such other information and assur-
ances as the Secretary may require. 
(IV) TERMINATION OF ELIGIBILITY.—Notwith-
standing any other provision of law, the Freely 
Associated States shall not receive any assistance 
under this subparagraph for any program year 
that begins after September 30, 2001. 
(V) ADMINISTRATIVE COSTS.—^The Secretary 
may provide not more than 5 percent of the funds 
made available for grants under subclause (I) to 
pay the administrative costs of the Pacific Region 
Educational Laboratory in Honolulu, Hawaii, 
regarding activities assisted under this clause. 
(iii) ADDITIONAL REQUIREMENT.—^The provisions of 
Public Law 95-134, permitting the consolidation of 
grants by the outl3dng areas, shall not apply to assist-
ance provided to those areas, including the Freely Asso-
ciated States, under this subparagraph. 
(C) STATES.— 
(i) IN GENERAL.—After determining the amounts 
to be reserved under subparagraph (A) (if any) and 
subparagraph (B), the Secretary shall— 
(I) from the amount referred to in subsection 
(a)(2) for a fiscal year, make available not more 
than 1.5 percent to provide youth activities under 
section 166 (relating to Native Americans); and 
(II) allot the remainder of the amount referred 
to in subsection (a)(2) for a fiscal year to the States 
pursuant to clause (ii) for youth activities and 
statewide workforce investment activities. 
(ii) FORMULA.—Subject to clauses (iii) and (iv), of 
the remainder— 
(I) 33^3 percent shall be allotted on the basis 
of the relative number of unemployed individuals 
in areas of substantial unemployment in each 
State, compared to the total number of unemployed 
individuals in areas of substantied unemplojonent 
in all States; 
(II) 33 V
a percent shall be allotted on the basis 
of the relative excess number of unemployed 
individuals in each State, compared to the total 
excess number of unemployed individuals in all 
States; and 
112 STAT. 974 
PUBLIC LAW 105-220—AUG. 7, 1998 
(III) 33 Vb percent shall be allotted on the basis 
of the relative number of disadvantaged youth in 
each State, compared to the total number of dis-
advantaged youth in all States, except as described 
in clause (iii). 
(iii) CALCULATION.—In determining an allotment 
under clause (ii)(III) for any State in which there is 
a local area designated under section 116(a)(2)(B) 
(relating to the area served by a rural concentrated 
employment program grant recipient), the allotment 
shall be based on the higher of— 
(I) the number of individuals who are age 
16 through 21 in families with an income below 
the low-income level in such area; or 
(II) the number of disadvantaged youth in such 
area. 
(iv) 
MINIMUM AND MAXIMUM PERCENTAGES AND 
MINIMUM ALLOTMENTS.—In making allotments under 
this subparagraph, the Secretary shall ensure the 
following: 
(I) MINIMUM PERCENTAGE AND ALLOTMENT.— 
Subject to subclause (IV), the Secretary shall 
ensure that no State shall receive an allotment 
for a fiscal year that is less than the greater of— 
(aa) an amount based on 90 percent of 
the allotment percentage of the State for the 
preceding fiscal year; or 
(bb) 100 percent of the total of the allot-
ments of the State under sections 252 and 
262 of the Job Training Partnership Act (as 
in effect on the day before the date of enact-
ment of this Act) for fiscal year 1998. 
(II) 
SMALL 
STATE 
MINIMUM ALLOTMENT.— 
Subject to subclauses (I), (III), and (IV), the Sec-
retary shall ensure that no State shall receive 
an allotment under this subparagraph that is less 
than the total of— 
(aa) 3/10 of 1 percent of $1,000,000,000 
of the remainder described in clause (i)(II) for 
the fiscal year; and 
(bb) if the remainder described in clause 
(i)(II) 
for 
the 
fiscal 
year 
exceeds 
$1,000,000,000, % of 1 percent of the excess. 
(III) MAXIMUM PERCENTAGE.—Subject to sub-
clause (I), the Secretary shall ensure that no State 
shall receive an allotment percentage for a fiscal 
year that is more than 130 percent of the allotment 
percentage of the State for the preceding fiscal 
year. 
(IV) MINIMUM FUNDING.—In any fiscal year 
in which the remainder described in clause (i)(II) 
does not exceed $1,000,000,000, the minimum 
allotments under subclauses (I) and (II) shall be 
calculated by the methodology for calculating the 
corresponding allotments under parts B and C of 
title II of the Job Training Partnership Act, as 
in effect on July 1, 1998. 
>*^^^-; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 975 
(2) DEFINITIONS.—^For the purpose of the formula specified 
in paragraph (1)(C): 
(A) ALLOTMENT PERCENTAGE.—The term "allotment 
percentage", used with respect to fiscal year 2000 or a 
subsequent fiscal year, means a percentage of the remain-
der described in paragraph (l)(C)(i)(II) that is received 
through an allotment made under paragraph (1)(C) for 
the fiscal year. The term, used with respect to fiscal year 
1998 or 1999, means the percentage of the amounts allotted 
to States under sections 252(b) and 262(a) of the Job Train-
ing Partnership Act (as in effect on the day before the 
date of enactment of this Act) that is received under such 
sections by the State involved for fiscal year 1998 or 1999. 
(B) AREA OF SUBSTANTIAL UNEMPLOYMENT.—The term 
"area of substantial unemployment" means any area that 
is of sufficient size and scope to sustain a program of 
workforce investment activities carried out under this sub-
title and that has an average rate of unemployment of 
at least 6.5 percent for the most recent 12 months, as 
determined by the Secretary. For purposes of this subpara-
graph, determinations of areas of substantial unemploy-
ment shall be made once each fiscal year. 
(C) DISADVANTAGED YOUTH.—Subject to paragraph (3), 
the term "disadvantaged youth" means an individual who 
is age 16 through 21 who received an income, or is a 
member of a family that received a total family income, 
that, in relation to family size, does not exceed the higher 
of— 
(i) the poverty line; or 
(ii) 70 percent of the lower living standard income 
level. 
(D) EXCESS NUMBER.—^The term "excess number" 
means, used with respect to the excess number of 
unemployed individuals within a State, the higher of— 
(i) the number that represents the number of 
unemployed individuals in excess of 4.5 percent of the 
civilian labor force in the State; or 
(ii) the number that represents the number of 
unemployed individuals in excess of 4.5 percent of the 
civilian labor force in areas of substantial unemploy-
ment in such State. 
(E) LOW-INCOME LEVEL.—^The term "low-income level" 
mesins $7,000 with respect to income in 1969, and for 
any later year means that amount that bears the same 
relationship to $7,000 as the Consumer Price Index for 
that year bears to the Consumer Price Index for 1969, 
rounded to the nearest $1,000. 
(3) SPECIAL RULE.—For the purpose of the formula specified 
in paragraph (1)(C), the Secretary shall, as appropriate and 
to the extent practicable, exclude college students and members 
of the Armed Forces from the determination of the number 
N 
of disadvantaged youth. 
(4) DEFINITION.—In this subsection, the term "Freely Asso-
ciated State" means the Republic of the Marshall Islands, the 
Federated States of Micronesia, and the Republic of Palau. 
(c) REALLOTMENT.— 
112 STAT. 976 
PUBLIC LAW 105-220—AUG. 7, 1998 
(1) IN GENERAL.—^The Secretary shall, in accordance with 
this subsection, reallot to eligible States amounts that are 
allotted under this section for youth activities and statewide 
workforce investment activities and that are available for 
reallotment. 
(2) AMOUNT.—^The amount available for reallotment for 
a program year is equal to the amount by which the unobligated 
balance of the State allotment under this section for such 
activities, at the end of the program year prior to the program 
year for which the determination under this paragraph is made, 
exceeds 20 percent of such allotment for the prior program 
year. 
(3) REALLOTMENT.—In making reallotments to eligible 
States of amounts available pursuant to paragraph (2) for a 
program year, the Secretary shall allot to each eligible State 
an amount based on the relative amount allotted to such State 
under this section for such activities for the prior program 
year, as compared to the total amount allotted to all eligible 
States under this section for such activities for such prior 
program year. 
(4) ELIGIBILITY.—For purposes of this subsection, an 
eligible State means a State that has obligated at least 80 
percent of the State allotment under this section for such 
activities for the program year prior to the program year for 
which the determination under paragraph (2) is made. 
(5) PROCEDURES.—^The Govemor of each State shall pre-
scribe uniform procedures for the obligation of funds by local 
areas within the State in order to avoid the requirement that 
funds be made available for reallotment under this subsection. 
The Grovernor shall further prescribe equitable procedures for 
making funds available from the State and local areas in the 
event that a State is required to make funds available for 
reallotment under this subsection. 
29 use 2853. 
SEC. 128. WITHIN STATE ALLOCATIONS. 
(a) RESERVATIONS FOR STATE ACTIVITIES.— 
(1) IN GENERAL.—^The Grovernor of a State shall reserve 
not more than 15 percent of each of the amounts allotted 
to the State under section 127(b)(1)(C) and paragraphs (1)(B) 
and (2)(B) of section 132(b) for a fiscal year for statewide 
workforce investment activities. 
(2) U S E OF FUNDS.—^Regardless of whether the reserved 
amounts were allotted under section 127(b)(1)(C), or under 
paragraph (1)(B) or (2)(B) of section 132(b), the Governor may 
use the reserved amounts to carry out statewide youth activities 
described in section 129(b) or statewide employment and train-
ing activities, for adults or for dislocated workers, described 
in paragraph (2)(B) or (3) of section 134(a). 
(b) WITHIN STATE ALLOCATION.— 
(1) METHODS.—^The Governor, acting in accordance with 
the State plan, and after consulting with chief elected officials 
in the local areas, shall allocate the funds that are allotted 
to the State for youth activities and statewide workforce invest-
ment activities under section 127(b)(1)(C) and are not reserved 
under subsection (a), in accordance with paragraph (2) or (3). 
(2) FORMULA ALLOCATION.— 
(A) YOUTH ACTIVITIES.— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 977 
(i) ALLOCATION.—In allocating the funds described 
in paragraph (1) to local areas, a State may allocate— 
(I) 33 Vs percent of the funds on the basis 
described in section 127(b)(l)(C)(ii)(I); 
(II) 33^3 percent of the funds on the basis 
described in section 127(b)(l)(C)(ii)(II); and 
(III) 33 Va percent of the funds on the basis 
described in clauses (ii)(III) and (iii) of section 
127(b)(1)(C). 
(ii) MINIMUM PERCENTAGE.—^Effective at the 
end 
of the second full fiscal year after the date on which 
a local area is designated under section 116, the local 
area shall not receive an allocation percentage for a 
fisced year that is less than 90 percent of the average 
allocation percentage of the local area for the 2 preced-
ing fiscal years. Amounts necessary for increasing such 
allocations to local areas to comply with the preceding 
sentence shall be obtained by ratably reducing the 
allocations to be made to other local areas under this 
subparagraph. 
(iii) DEFINITION.—^The term "allocation percent-
age", used with respect to fiscal year 2000 or a subse-
quent fiscal year, means a percentage of the funds 
referred to in clause (i), received through an allocation 
made under this subparagraph, for the fiscal year. 
(B) 
APPLICATION.—^For purposes 
of carrying 
out 
subparagraph (A)— 
(i) references in section 127(b) to a State shall 
be deemed to be references to a local area; 
(ii) references in section 127(b) to all States shall 
be deemed to be references to all local areas in the 
State involved; and 
(iii) except as described in clause (i), references 
in section 127(b)(1) to the term "excess number" shall 
be considered to be references to the term as defined 
in section 127(b)(2). 
(3) YOUTH DISCRETIONARY ALLOCATION.—In lieu of making 
the allocation described in paragraph (2)(A), in allocating the 
funds described in paragraph (1) to local areas, a State may 
distribute— 
(A) a portion equal to not less than 70 percent of 
the funds in accordance with paragraph (2)(A); and 
(B) the remgdning portion of the funds on the basis 
of a formula that— 
(i) incorporates additional factors (other than the 
factors described in paragraph (2)(A)) relating to— 
(I) excess youth poverty in urban, rural, and 
suburban local areas; and 
(II) excess unemployment above the State 
average in urban, rural, and suburban local areas; 
and 
(ii) was developed by the State board and approved 
by the Secretary as part of the State plan. 
(4) LIMITATION.— 
(A) IN GENERAL.—Of the amount allocated to a local 
area under this subsection and section 133(b) for a fiscal 
year, not more than 10 percent of the amount may be 
112 STAT. 978 
PUBLIC LAW 105-220—AUG. 7, 1998 
used by the local board for the administrative cost of carry-
ing out local workforce investment activities described in 
subsection (d) or (e) of section 134 or in section 129(c). 
(B) USE OF FUNDS.—Funds made available for adminis-
trative costs under subparagraph (A) may be used for the 
administrative cost of any of the local workforce investment 
activities described in subsection (d) or (e) of section 134 
or in section 129(c), regardless of whether the funds were 
allocated under this subsection or section 133(b). 
(C) REGULATIONS.—The Secretary, after consulting 
with the Grovemors, shall develop and issue regulations 
that define the term "administrative cost" for purposes 
of this title. Such definition shall be consistent with gen-
erally accepted accounting principles. 
(c) REALLOCATION AMONG LOCAL AREAS.— 
(1) IN GENERAL.—^The Gk)vemor may, in accordance with 
this subsection, reallocate to eligible local areas within the 
State amounts that are allocated under paragraph (2)(A) or 
(3) of subsection (b) for youth activities and that are available 
for reallocation. 
(2) AMOUNT.—^The amount available for reallocation for 
a program year is equal to the amount by which the unobligated 
balance of the local area allocation under paragraph (2)(A) 
or (3) of subsection (b) for such activities, at the end of the 
program year prior to the program year for which the deter-
mination under this paragraph is made exceeds 20 percent 
of such allocation for the prior program year. 
(3) REALLOCATION.—^In msdking reallocations to eligible local 
areas of amounts available pursuant to paragraph (2) for a 
program year, the Gk)vemor shall allocate to each eligible local 
area within the State an amount based on the relative amount 
allocated to such local area under subsection (b)(3) for such 
activities for the prior program year, as compared to the total 
amount allocated to all eligible local areas in the State under 
subsection (b)(3) for such activities for such prior program 
year. For purposes of this paragraph, local areas that received 
allocations under subsection (b)(2XA) for the prior program 
year shall be treated as if the local areas received allocations 
under subsection (bX3) for such year. 
(4) ELIGIBILITY,—^For purposes of this subsection, an 
eligible local area means a local area that has obligated at 
least 80 percent of the local area allocation under paragraph 
(2)(A) or (3) of subsection (b) for such activities, for the program 
year prior to the program year for which the determination 
under paragraph (2) is made. 
29 use 2854. 
SEC. 129. USE OF FUNDS FOR YOUTH ACnVITIES. 
(a) PURPOSES.—^The purposes of this section are— 
(1) to provide, to eligible youth seeking assistance in achiev-
ing academic and employment success, effective and comprehen-
sive activities, which shall include a variety of options for 
improving educational and skill competencies and provide effec-
tive connections to employers; 
(2) to ensure on-going mentoring opportunities for eligible 
youth with adults committed to provi^ng such opportunities; 
(3) to provide opportunities for training to eligible youth; 
•%ilti»i-
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 979 
(4) to provide continued supportive services for eligible 
youth; 
(5) to provide incentives for recognition and achievement 
to eligible youth; and 
(6) to provide opportunities for eligible youth in activities 
related to leadership, development, decisionmaking, citizenship, 
and community service. 
(b) STATEWIDE YOUTH ACTIVITIES.— 
(1) IN GENERAL.—^Funds reserved by a Grovemor for a State 
as described in sections 128(a) and 133(a)(1)— 
(A) shall be used to carry out the statewide youth 
activities described in paragraph (2); and 
(B) may be used to carry out any of the statewide 
youth activities described in paragraph (3), 
regardless of whether the funds were allotted to the State 
under section 127(b)(1) or under paragraph (1) or (2) of section 
132(b). 
(2) REQUIRED STATEWIDE YOUTH ACTIVITIES.—A State shall 
use funds reserved as described in sections 128(a) and 133(a)(1) 
(regardless of whether the funds were allotted to the State 
under section 127(b)(1) or paragraph (1) or (2) of section 132(b)) 
to carry out statewide youth activities, which shall include— 
(A) disseminating a list of eligible providers of youth 
activities described in section 123; 
(B) carrying out activities described in clauses (ii) 
through (vi) of section 134(a)(2)(B), except that references 
in such clauses to activities authorized under section 134 
shall be considered to be references to activities authorized 
under this section; and 
(C) providing additional assistance to local areas that 
have high concentrations of eligible youth to carry out 
the activities described in subsection (c). 
(3) ALLOWABLE STATEWIDE YOUTH ACTIVITIES.—A State may 
use funds reserved as described in sections 128(a) and 133(a)(1) 
(regardless of whether the funds were allotted to the State 
under section 127(b)(1) or paragraph (1) or (2) of section 132(b)) 
to carry out additional statewide youth activities, which may 
include— 
(A) carrying out activities described in clauses (i), (ii), 
(iii), (iv)(II), and (vi)(II) of section 134(a)(3)(A), except that 
references in such clauses to activities authorized under 
section 134 shall be considered to be references to activities 
authorized under this section; and 
(B) carrying out, on a statewide basis, activities 
described in subsection (c). 
(4) PROHIBITION.—^No funds described in this subsection 
or section 134(a) shall be used to develop or implement edu-
cation curricula for school systems in the State. 
(c) LOCAL ELEMENTS AND REQUIREMENTS.— 
(1) PROGRAM DESIGN.—^Funds allocated to a local area for 
eligible youth under paragraph (2)(A) or (3), as appropriate, 
of section 128(b) shall be used to carry out, for eligible youth, 
programs that— 
(A) provide an objective assessment of the academic 
levels, skill levels, and service needs of each participant, 
which assessment shall include a review of basic skills, 
occupational skills, prior work experience, employability. 
112 STAT. 980 
PUBLIC LAW 105-220—AUG. 7, 1998 
interests, aptitudes (including interests and aptitudes for 
nontraditional jobs), supportive service needs, and develop-
mental needs of such participant, except that a new assess-
ment of a participant is not required if the provider carry-
ing out such a program determines it is appropriate to 
use a recent assessment of the participant conducted pursu-
ant to another education or training program; 
(B) develop service strategies for each participant that 
shall identify an emplojrment goal (including, in appro-
priate circumstances, nontraditional employment), appro-
priate achievement objectives, and appropriate services for 
the participant taking into account the assessment con-
ducted pursuant to subparagraph (A), except that a new 
service strategy for a participant is not required if the 
provider carrying out such a program determines it is 
appropriate to use a recent service strategy developed for 
the participant under another education or training pro-
gram; and 
(C) provide— 
(i) preparation 
for 
postsecondary 
educational 
opportunities, in appropriate cases; 
(ii) strong linkages between academic and occupa-
tional learning; 
(iii) preparation for unsubsidized 
employment 
opportunities, in appropriate cases; and 
(iv) effective connections to intermediaries with 
strong links to— 
(I) the job market; and 
(II) local and regional employers. 
(2) PROGRAM ELEMENTS.—^The programs described in para-
graph (1) shall provide elements consisting of— 
(A) tutoring, study skills training, and instruction, 
leading to completion of secondary school, including dropout 
prevention strategies; 
(B) alternative secondary school services, as appro-
priate; 
(C) summer employment opportunities that are directly 
linked to academic and occupational learning; 
(D) as appropriate, paid and unpaid work experiences, 
including internships and job shadowing; 
(E) occupational skill training, as appropriate; 
(F) leadership development opportunities, which may 
include community service and peer-centered activities 
encouraging responsibility and other positive social behav-
iors during non-school hours, as appropriate; 
(G) supportive services; 
(H) adult mentoring for the period of participation 
and a subsequent period, for a total of not less than 12 
months; 
(I) foUowup services for not less than 12 months after 
the completion of participation, as appropriate; and 
(J) comprehensive guidance and counseling, which may 
include drug and alcohol abuse counseling and referral, 
as appropriate. 
(3) ADDITIONAL REQUIREMENTS.— 
(A) INFORMATION AND REFERRALS.—^Each local board 
shall ensure that each participant or applicant who meets 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 981 
the minimum income criteria to be considered an eligible 
youth shall be provided— 
(i) information on the full array of applicable or 
appropriate services that are available through the 
local boEird or other eligible providers or one-stop part-
ners, including those receiving funds under this sub-
title; and 
(ii) referral to appropriate training and educational 
programs that have the capacity to serve the partici-
pant or applicant either on a sequential or concurrent 
basis. 
(B) APPLICANTS NOT MEETING ENROLLMENT REQUIRE-
MENTS.—^Each eligible provider of a program of youth activi-
ties shall ensure that an eligible applicant who does not 
meet the enrollment requirements of the particular pro-
gram or who cannot be served shall be referred for further 
assessment, as necessary, and referred to appropriate pro-
grams in accordance with subparagraph (A) to meet the 
basic skills and training needs of the applicant. 
(C) INVOLVEMENT IN DESIGN AND IMPLEMENTATION.— 
The local board shall ensure that parents, participants, 
and other members of the community with experience relat-
ing to programs for youth are involved in the design and 
implementation of the programs described in paragraph 
(1). 
(4) PRIORITY.— 
(A) IN GENERAL.—At a minimum, 30 percent of the 
funds described in paragraph (1) shall be used to provide 
youth activities to out-of-school youth. 
(B) EXCEPTION.—A State that receives a minimum 
allotment under section 127(b)(1) in accordance with section 
127(b)(l)(C)(iv)(II) or under section 132(b)(1) in accordance 
with section 132(b)(l)(B)(iv)(II) may reduce the percentage 
described in subparagraph (A) for a local area in the State, 
if— 
(i) after an analysis of the eligible youth population 
in the local area, the State determines that the local 
area will be unable to meet the percentage described 
in subparagraph (A) due to a low number of out-of-
school youth; and 
(ii)(I) the State submits to the Secretary, for the 
local area, a request including a proposed reduced 
percentage for purposes of subparagraph (A), and the 
summary of the eligible youth population analysis; and 
(II) the request is approved by the Secretary. 
(5) EXCEPTIONS.—^Not more than 5 percent of participants 
assisted under this section in each local area may be individuals 
who do not meet the minimum income criteria to be considered 
eligible youth, if such individuals are within one or more of 
the following categories: 
(A) Individuals who are school dropouts. 
(B) Individuals who are basic skills deficient. 
(C) Individuals with educational attainment that is 
one or more grade levels below the grade level appropriate 
to the age of the individuals. 
(D) Individuals who are pregnant or pgu-enting. 
69-194 O - 98 - 4: QL 3 Part 2 
112 STAT. 982 
PUBLIC LAW 105-220—AUG. 7, 1998 
(E) Individuals with disabilities, including learning 
disabilities. 
(F) Individuals who are homeless or runaway youth. 
(G) Individuals who are offenders. 
(H) Other eligible youth who face serious barriers to 
employment as identified by the local board. 
(6) PROHIBITIONS.— 
(A) PROHIBITION AGAINST FEDERAL CONTROL OF EDU-
CATION.—^No provision of this Act shall be construed to 
authorize any department, agency, officer, or employee of 
the United States to exercise any direction, supervision, 
or control over the curriculum, program of instruction, 
administration, or personnel of any educational institution, 
school, or school system, or over the selection of library 
resources, textbooks, or other printed or published instruc-
tional materials by any educational institution, school, or 
school system. 
(B) NONDUPLICATION.—^All of the funds made available 
under this Act shall be used in accordance with the require-
ments of this Act. None of the funds made available under 
this Act may be used to provide funding under the School-
to-Work Opportunities Act of 1994 (20 U.S.C. 6101 et seq.) 
or to carry out, through programs funded under this Act, 
activities that were funded under the School-to-Work 
Opportunities Act of 1994, unless the programs funded 
under this Act serve only those participeints eligible to 
participate in the programs under this Act. 
(C) NONINTERFERENCE AND NONREPLACEMENT OF REGU-
LAR ACADEMIC REQUIREMENTS.—^No funds described in 
paragraph (1) shall be used to provide £in activity for 
eligible youth who are not school dropouts if participation 
in the activity would interfere with or replace the regular 
academic requirements of the youth. 
(7) LINKAGES.—In coordinating the programs authorized 
under this section, youth councils shall establish linkages with 
educational agencies responsible for services to participants 
as appropriate. 
(8) VOLUNTEERS.—^The local board shall make opportunities 
availalDle for individuals who have successfully psirticipated 
in programs carried out under this section to volunteer assist-
ance to participants in the form of mentoring, tutoring, and 
other activities. 
CHAPTER 5—ADULT AND DISLOCATED WORKER 
EMPLOYMENT AND TRAINING ACTIVITIES 
29USC286L 
SEC. 131. GENERAL AUTHORIZATION. 
The Secretary shall make allotments under paragraphs (1)(B) 
and (2)(B) of section 132(b) to each State that meets the require-
ments of section 112 and a grant to each outlying area that complies 
with the requirements of this title, to assist the State or outlying 
area, and to enable the State or outlying £irea to assist local areas, 
for the purpose of providing workforce investment activities for 
adults, and dislocated workers, in the State or outl3ring area and 
in the local areas. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 983 
SEC. 132. STATE ALLOTMENTS. 
, 
- 
29USC2862. 
(a) IN GENERAL.—The Secretary shall— 
Grants. 
(1) make allotments and grants from the total amount 
appropriated under section 137(b) for a fiscal year in accordance 
with subsection (b)(1); and 
(2)(A) reserve 20 percent of the amount appropriated under 
section 137(c) for a fiscal year for use under subsection (b)(2)(A), 
and under sections 170(b) (relating to dislocated worker tech-
nical assistance), 171(d) (relating to dislocated worker projects), 
and 173 (relating to national emergency grants); and 
(B) make allotments from 80 percent of the amount appro-
priated under section 137(c) for a fiscal year in accordance 
with subsection (b)(2)(B). 
(b) ALLOTMENT AMONG STATES.— 
(1) ADULT EMPLOYMENT AND TRAINING ACTIVITIES.— 
(A) RESERVATION FOR OUTLYING AREAS.— 
(i) IN GENERAL.—^From the amount made available 
under subsection (a)(1) for a fiscal year, the Secretary 
shall reserve not more than VA of 1 percent to provide 
assistance to the outlying areas. 
(ii) 
APPLICABILITY 
OF 
ADDITIONAL 
REQUIRE-
MENTS.—From the amount reserved under clause (i), 
the Secretary shall provide assistance to the outljdng 
areas for adult emplo3ntnent and training activities and 
statewide workforce investment activities in accordance 
with the requirements of section 127(bXl)(B), except 
that the reference in section 127(b)(l)(B)(i)(II) to sec-
tions 252(d) and 262(a)( 1) of the Job Training Partner-
ship Act shall be deemed to be a reference to section 
202(a)(1) of the Job Training Partnership Act (as in 
effect on the day before the date of enactment of this 
Act). 
(B) STATES.— 
(i) IN GENERAL.—After determining the amount 
to be reserved under subparagraph (A), the Secretary 
shall allot the remainder of the amount referred to 
in subsection (a)(1) for a fiscal year to the States pursu-
ant to clause (ii) for adult employment and training 
activities and statewide workforce investment activi-
ties. 
(ii) FORMULA.—Subject to clauses (iii) and (iv), of 
the remainder— 
(I) 33^3 percent shall be allotted on the basis 
of the relative number of unemployed individuals 
in areas of substantial unemplo3anent in each 
State, compared to the total number of unemployed 
individuals in areas of substantial unemplo3anent 
in all States; 
(II) 33 Vb percent shall be allotted on the basis 
of the relative excess number of unemployed 
individuals in each State, compared to the total 
excess number of unemployed individuals in all 
States; and 
(III) 33 Va percent shall be allotted on the basis 
of the relative number of disadvantaged adults 
in each State, compared to the total number of 
112 STAT. 984 
PUBLIC LAW 105-220—AUG. 7, 1998 
disadvantaged adults in all States, except as 
described in clause (iii). 
(iii) CALCULATION.—In determining an allotment 
under clause (ii)(III) for any State in which there is 
a local area designated under section 116(a)(2)(B), the 
allotment shall be based on the higher of— 
(I) the number of adults in families with an 
income below the low-income level in such area; 
or 
(II) the number of disadvantaged adults in 
such area. 
(iv) 
MINIMUM AND MAXIMUM PERCENTAGES AND 
MINIMUM ALLOTMENTS.—^In making allotments under 
this subparagraph, the Secretary shall ensure the fol-
lowing: 
(I) MINIMUM PERCENTAGE AND ALLOTMENT.— 
Subject to subclause (IV), the Secretary shall 
ensure that no State shall receive an allotment 
for a fiscal year that is less than the greater of— 
(aa) an amount based on 90 percent of 
the allotment percentage of the State for the 
preceding fiscal year; or 
(bb) 100 percent of the allotment of the 
State under section 202 of the Job Training 
Partnership Act (as in effect on the day before 
the date of enactment of this Act) for fiscal 
year 1998. 
(II) SMALL STATE MINIMUM ALLOTMENT.—Sub-
ject to subclauses (I), (III), and (IV), the Secretary 
shall ensure that no State shall receive an allot-
ment under this subparagraph that is less than 
the total of— 
(aa) 3/io of 1 percent of $960,000,000 of 
the remainder described in clause (i) for the 
fiscal year; and 
*
' 
(bb) if the remainder described in clause 
(i) for the fiscal year exceeds $960,000,000, 
% of 1 percent of the excess. 
(III) MAXIMUM PERCENTAGE.—Subject to sub-
clause (I), the Secretary shall ensure that no State 
shall receive an allotment percentage for a fiscal 
year that is more than 130 percent of the allotment 
percentage of the State for the preceding fiscal 
year. 
(IV) MINIMUM FUNDING.—In any fiscal year 
in which the remainder described in clause (i) 
does not exceed $960,000,000, the minimum allot-
ments under subclauses (I) and (II) shall be cal-
culated by the methodology for calculating the cor-
responding allotments under part A of title II of 
the Job Training Partnership Act, as in effect on 
July 1,1998. 
(v) DEFINITIONS.—^For the purpose of the formula 
specified in this subparagraph: 
(I) ADULT.—^The term "adult" means 
an 
;: 
individual who is not less thgin age 22 and not 
more than age 72. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 985 
(II) 
ALLOTMENT 
PERCENTAGE.—The term 
"allotment percentage", used with respect to fiscal 
year 2000 or a subsequent fiscal year, means a 
percentage of the remainder described in clause 
(i) that is received through an allotment made 
under this subparagraph for the fiscal year. The 
term, used with respect to fiscal year 1998 or 
1999, means the percentage of the amounts allot-
ted to States under section 202(a) of the Job Train-
ing Partnership Act (as in effect on the day before 
the date of enactment of this Act) that is received 
under such section by the State involved for fiscal 
year 1998 or 1999. 
(III) AREA OF SUBSTANTIAL UNEMPLOYMENT.— 
The term "area of substantial unemployment" 
means any area that is of sufficient size and scope 
to sustain a program of workforce investment 
activities carried out under this subtitle and that 
has an average rate of unemplo3anent of at least 
6.5 percent for the most recent 12 months, as 
determined by the Secretary. For purposes of this 
subclause, determinations of areas of substantial 
unemployment shall be made once each fiscal year. 
(IV) DISADVANTAGED ADULT.—Subject to sub-
clause (V), the term "disadvantaged adult" means 
an adult who received an income, or is a member 
of a family that received a total family income, 
that, in relation to family size, does not exceed 
the higher of— 
(aa) the poverty line; or 
(bb) 70 percent of the lower living stand-
ard income level. 
(V) DISADVANTAGED ADULT SPECIAL RULE.— 
The Secretary shall, as appropriate and to the 
extent practicable, exclude college students and 
members of the Armed Forces from the determina-
tion of the number of disadvantaged adults. 
(VI) EXCESS NUMBER.—^The term "excess num-
ber" means, used with respect to the excess num-
ber of unemployed individuals within a State, the 
higher of— 
(aa) the number that represents the num-
ber of unemployed individuals in excess of 4.5 
percent of the civilian labor force in the State; 
or 
(bb) the number that represents the num-
ber of unemployed individuals in excess of 4.5 
percent of the civilian labor force in areas 
of substantial unemployment in such State. 
(2) DISLOCATED WORKER EMPLOYMENT AND TRAINING.— 
(A) RESERVATION FOR OUTLYING AREAS.— 
(i) IN GENERAL.—^From the amount made available 
under subsection (a)(2)(A) for a fiscal year, the Sec-
retary shall reserve not more than Vi of 1 percent 
of the amount appropriated under section 137(c) for 
the fiscal year to provide assistance to the outlying 
areas. 
112 STAT. 986 
PUBLIC LAW 105-220—AUG. 7, 1998 
(ii) 
APPLICABILITY 
OF 
ADDITIONAL 
REQUIRE-
MENTS.—^From the amount reserved under clause (i), 
the Secretary shall provide assistance to the outlying 
areas for dislocated worker emplojrment and training 
activities sind statewide workforce investment activities 
in accordance with the requirements 
of section 
127(b)(1)(B), except that the reference in section 
127(b)(l)(B)(i)(II) to sections 252(a) and 262(a)(1) of 
the Job Training Partnership Act shall be deemed to 
be a reference to section 302(e) of the Job Training 
Partnership Act (as in effect on the day before the 
date of enactment of this Act). 
(B) STATES.— 
(i) IN GENERAL.—The Secretary shall allot the 
amount referred to in subsection (a)(2)(B) for a fiscal 
year to the States pursuant to clause (ii) for dislocated 
worker employment and training activities and state-
wide workforce investment activities. 
(ii) FORMULA.—Of the amount— 
(I) 33 
Va percent shall be allotted on the basis 
of the relative number of unemployed individuals 
in each State, compared to the total number of 
unemployed individuals in all States; 
(II) 33 
Va percent shall be allotted on the basis 
of the relative excess number of unemployed 
individuals in each State, compared to the total 
excess number of unemployed individuals in all 
States; and 
(III) 33 Va percent shall be allotted on the basis 
of the relative number of individuals in each State 
who have been unemployed for 15 weeks or more, 
compared to the total number of individuals in 
all States who have been unemployed for 15 weeks 
or more. 
(iii) DEFINITION.—^In this subparagraph, the term 
"excess number" means, used with respect to the excess 
number of unemployed individuals within a State, the 
number that represents the number of unemployed 
individuals in excess of 4.5 percent of the civilian labor 
force in the State. 
(3) DEFINITIONS.—^For the purpose of the formulas specified 
in this subsection: 
(A) FREELY ASSOCIATED STATES.—^The term "Freely 
Associated States" means the Republic of the Marshall 
Islands, the Federated States of Micronesia, and the Repub-
lic of Palau. 
(B) LOW-INCOME LEVEL.—^The term "low-income level" 
means $7,000 with respect to income in 1969, and for 
any later year means that amount that bears the same 
relationship to $7,000 as the Consumer Price Index for 
that year bears to the Consumer Price Index for 1969, 
rounded to the nearest $1,000. 
(c) REALLOTMENT.— 
(1) IN GENERAL.—^The Secretary shall, in accordance with 
this subsection, reallot to eligible States amounts that are 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 987 
allotted under this section for emplo3maent and training activi-
ties and statewide workforce investment activities and that 
are available for reallotment. 
(2) AMOUNT.—^The amount available for reallotment for 
a program year is equal to the amount by which the unobligated 
balance of the State allotments under this section for such 
activities, at the end of the program year prior to the program 
year for which the determination under this paragraph is made, 
exceeds 20 percent of such allotments for the prior program 
year. 
(3) REALLOTMENT.—In making reallotments to eligible 
States of amounts available pursuant to paragraph (2) for a 
program year, the Secretary shall allot to each eligible State 
an amount based on the relative amount allotted to such State 
under this section for such activities for the prior program 
year, as compared to the total amount allotted to all eligible 
States under this section for such activities for such prior 
program year. 
(4) ELIGIBILITY.—^For purposes of this subsection, an 
eligible State means a State that has obligated at least 80 
percent of the State allotment under this section for such 
activities for the program year prior to the program year for 
which the determination under paragraph (2) is made. 
(5) PROCEDURES.—^The Grovernor of each State shall pre-
scribe uniform procedures for the obligation of funds by local 
areas within the State in order to avoid the requirement that 
funds be made available for reallotment under this subsection. 
The Governor shall further prescribe equitable procedures for 
making funds available from the State and local areas in the 
event that a State is required to make funds available for 
reallotment under this subsection. 
SEC. 133. WITHIN STATE ALLOCATIONS. 
29 USC 2863. 
(a) RESERVATIONS FOR STATE ACTIVITIES.— 
(1) STATEWIDE WORKFORCE INVESTMENT ACTiviTiES.^The 
Grovemor of a State shall make the reservation required under 
section 128(a). 
(2) STATEWIDE RAPID RESPONSE ACTIVITIES.—^The Governor 
of the State shall reserve not more than 25 percent of the 
total amount allotted to the State under section 132(b)(2)(B) 
for a fiscal year for statewide rapid response activities described 
in section 134(a)(2)(A). 
(b) WITHIN STATE ALLOCATION.— 
(1) METHODS.—^The Governor, acting in accordance with 
the State plan, and after consulting with chief elected officials 
in the local areas, shall allocate— 
/ ; 
(A) the funds that are allotted to the State for adult 
employment 
and 
training 
activities 
and 
statewide 
workforce investment activities under section 132(b)(1)(B) 
and are not reserved under subsection (a)(1), in accordance 
with paragraph (2) or (3); and 
(B) the funds that are allotted to the State for dis-
located worker employment and training activities under 
section 132(b)(2)(B) and are not reserved under paragraph 
(1) or (2) of subsection (a), in accordance with paragraph 
(2). 
(2) FORMULA ALLOCATIONS.— 
112 STAT. 988 
PUBLIC LAW 105-220—AUG. 7, 1998 
(A) ADULT EMPLOYMENT AND TRAINING ACTIVITIES.— 
(i) ALLOCATION.—^In allocating the funds described 
in paragraph (1)(A) to local areas, a State may 
allocate— 
(I) 33 Va percent of the funds on the basis 
described in section 132(b)(l)(B)(ii)(I); 
(II) 33^3 percent of the funds on the basis 
described in section 132(b)(l)(B)(ii)(II); and 
(III) 33 Va percent of the funds on the basis 
described in clauses (ii)(III) and (iii) of section 
132(b)(1)(B). 
Effective date. 
(ii) MINIMUM PERCENTAGE.—^Effective at the end 
of the second full fiscal year after the date on which 
a local area is designated under section 116, the local 
area shall not receive an allocation percentage for a 
fiscal year that is less than 90 percent of the average 
allocation percentage of the local area for the 2 preced-
ing fiscal years. Amounts necessary for increasing such 
allocations to local areas to comply with the preceding 
sentence shall be obtained by ratably reducing the 
allocations to be made to other local areas under this 
subparagraph. 
(iii) DEFINITION.—^The term "allocation percent-
age", used with respect to fiscal year 2000 or a subse-
quent fiscal year, means a percentage of the funds 
referred to in clause (i), received through an allocation 
made under this subparagraph, for the fiscal year. 
(B) DISLOCATED WORKER EMPLOYMENT AND TRAINING 
ACTIVITIES.— 
(i) FORMULA.—^In allocating the funds described 
in paragraph (1)(B) to local areas, a State shall allocate 
the funds based on an allocation formula prescribed 
by the Governor of the State. Such formula may be 
Eonended by the Governor not more than once for each 
program year. Such formula shall utilize the most 
- 
appropriate information available to the Governor to 
distribute amounts to address the State's worker 
readjustment assistance needs. 
(ii) INFORMATION.—^The information described in 
clause (i) shall include insured unemployment data, 
unemployment concentrations, plant closing and mass 
layoff data, declining industries data, farmer-rancher 
economic hardship data, £ind long-term unemployment 
data. 
(C) 
APPLICATION.—^For purposes 
of carrying 
out 
subparagraph (A)— 
(i) references in section 132(b) to a State shall 
be deemed to be references to a local area; 
(ii) references in section 132(b) to all States shall 
be deemed to be references to all local areas in the 
State involved; and 
(iii) except as described in clause (i), references 
in section 132(b)(1) to the term "excess number" shall 
be considered to be references to the term as defined 
in section 132(b)(1). 
(3) 
ADULT EMPLOYMENT AND TRAINING DISCRETIONARY 
ALLOCATIONS.—^In lieu of making the allocation described in 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 989 
paragraph (2)(A), in allocating the funds described in paragraph 
(1)(A) to local areas, a State may distribute— 
(A) a portion equal to not less than 70 percent of 
the funds in accordance with paragraph (2)(A); and 
(B) the remaining portion of the funds on the basis 
of a formula that— 
(i) incorporates additional factors (other than the 
factors described in paragraph (2)(A)) relating to— 
(I) excess poverty in urban, rural, and subur-
ban local areas; and 
(II) excess unemplo3rment above the State 
average in urban, rural, and suburban local areas; 
and 
(ii) was developed by the State board and approved 
by the Secretary as part of the State plan. 
(4) TRANSFER AUTHORITY.—A local board may transfer, if 
such a transfer is approved by the Grovemor, not more than 
20 percent of the funds allocated to the local area under para-
graph (2)(A) or (3), £ind 20 percent of the funds allocated to 
the local area under paragraph (2)(B), for a fiscal year 
between— 
(A) adult emplo3mient and training activities; and 
(B) dislocated 
worker 
emplo3rment Eind 
training 
activities. 
(5) ALLOCATION.— 
(A) IN GENERAL.—The Governor of the State shall allo-
cate the funds described in paragraph (1) to local areas 
under paragraphs (2) and (3) for the purpose of providing 
a single system of employment and training activities for 
adults and dislocated workers in accordance with sub-
sections (d) and (e) of section 134. 
(B) ADDITIONAL REQUIREMENTS.— 
(i) ADULTS.—^Funds allocated under paragraph 
(2)(A) or (3) shall be used by a local area to contribute 
proportionately to the costs of the one-stop delivery 
system described in section 134(c) in the local area, 
and to pay for employment and training activities pro-
vided to adults in the local area, consistent with section 
134. 
(ii) DISLOCATED WORKERS.—Funds allocated under 
paragraph (2)(B) shall be used by a local area to 
contribute proportionately to the costs of the one-stop 
delivery system described in section 134(c) in the local 
area, and to pay for employment and training activities 
provided to dislocated workers in the local area, 
consistent with section 134. 
(c) REALLOCATION AMONG LOCAL AREAS.— 
(1) IN GENERAL.—^The (Jovemor may, in accordance with 
this subsection, reallocate to eligible local areas within the 
State amounts that are allocated under paragraph (2)(A) or 
(3) of subsection (b) for adult employment and training activities 
and that are available for reallocation. 
(2) AMOUNT.—^The amount available for reallocation for 
a program year is equal to the amount by which the unobligated 
balance of the local area allocation under paragraph (2)(A) 
or (3) of subsection (b) for such activities, at the end of the 
112 STAT. 990 
PUBLIC LAW 105-220—AUG. 7, 1998 
program year prior to the program year for which the deter-
mination under this paragraph is made exceeds 20 percent 
of such allocation for the prior program year. 
(3) REALLOCATION.—^In making reallocations to eligible local 
areas of amounts available pursuant to paragraph (2) for a 
program year, the Grovernor shall allocate to each eligible local 
area within the State an amount based on the relative amount 
allocated to such local area under subsection (b)(3) for such 
activities for the prior program year, as compared to the total 
amount allocated to all eligible local areas in the State under 
subsection (b)(3) for such activities for such prior program 
year. For purposes of this paragraph, local areas that received 
allocations under subsection (b)(2)(A) for the prior program 
year shall be treated as if the local areas received allocations 
under subsection (b)(3) for such year. 
(4) ELIGIBILITY.—^For purposes of this subsection, an 
eligible local area means a local area that has obligated at 
least 80 percent of the local area allocation under paragraph 
(2)(A) or (3) of subsection (b) for such activities, for the program 
year prior to the program year for which the determination 
under paragraph (2) is made. 
29 use 2864. 
SEC. 134. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVI-
TIES. 
(a) STATEWIDE EMPLOYMENT AND TRAINING ACTIVITIES.— 
(1) IN GENERAL.—^Funds reserved by a Governor for a 
State— 
(A) as described in section 133(a)(2) shall be used to 
carry out the statewide rapid response activities described 
in paragraph (2)(A); and 
(B) as described in sections 128(a) and 133(a)(1)— 
(i) shall be used to carry out the statewide employ-
ment and training activities described in paragraph 
(2)(B); and 
(ii) may be used to carry out any of the statewide 
employment and training activities described in para-
graph (3), 
regardless of whether the funds were allotted to the State 
under section 127(b)(1) or under paragraph (1) or (2) of 
section 132(b). 
(2) 
REQUIRED 
STATEWIDE EMPLOYMENT AND TRAINING 
ACTIVITIES.— 
(A) STATEWIDE RAPID RESPONSE ACTIVITIES.—-A State 
shall use funds reserved as described in section 133(a)(2) 
to carry out statewide rapid response activities, which shall 
include— 
(i) provision of rapid response activities, carried 
out in local areas by the State or by an entity des-
ignated by the State, working in conjunction with the 
local boards and the chief elected officials in the local 
areas; and 
(ii) provision of additional assistance to local areas 
that experience disasters, mass layoffs or plant clos-
ings, or other events that precipitate substantial 
increases in the number of unemployed individuals, 
carried out in local areas by the State or by an entity 
designated by the State, working in conjunction with 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 991 
the local boards and the chief elected officials in the 
local areas. 
(B) 
OTHER REQUIRED STATEWIDE EMPLOYMENT AND 
TRAINING ACTIVITIES.—^A State shall use funds reserved 
as described in sections 128(a) and 133(a)(1) (regardless 
of whether the funds were allotted to the State under 
section 127(b)(1) or paragraph (1) or (2) of section 132(b)) 
to carry out other statewide employment and training 
activities, which shall include— 
(i) disseminating the State list of eligible providers 
of training services, including eligible providers of non-
traditional training services, information identifying 
eligible providers of on-the-job training and customized 
training, and performance information and program 
cost information, as described in subsections (e) and 
(h) of section 122; 
(ii) conducting evaluations, under section 136(e), 
of activities authorized in this section, in coordination 
with the activities carried out under section 172; 
(iii) providing incentive grants to local areas for 
regional cooperation among local boards (including 
local boards for a designated region as described in 
section 116(c)), for local coordination of activities car-
ried out under this Act, and for exemplary performance 
by local areas on the local performance measures; 
(iv) providing technical assistsuice to local areas 
that fail to meet local performance measures; 
(v) assisting in the establishment and operation 
of one-stop delivery systems described in subsection 
(c); and 
(vi) operating a fiscal and management account-
ability information system under section 136(f). 
(3) 
ALLOWABLE STATEWIDE EMPLOYMENT AND TRAINING 
ACTIVITIES.— 
(A) IN GENERAL.—^A State may use funds reserved as 
described in sections 128(a) and 133(a)(1) (regardless of 
whether the funds were allotted to the State under section 
127(b)(1) or paragraph (1) or (2) of section 132(b)) to cany 
out additional statewide employment and training activi-
ties, which may include— 
(i) subject to subparagraph (B), administration by 
the State of the activities authorized under this section; 
(ii) provision of capacity building and technical 
assistance to local areas, one-stop operators, one-stop 
partners, and eligible providers, including the develop-
ment and training of staff and the development of 
exemplary program activities; 
(iii) conduct of research and demonstrations; 
(iv)(I) implementation of innovative incumbent 
worker training programs, which may include the 
establishment and implementation of an employer loan 
program to assist in skills upgrading; and 
(II) the establishment and implementation of pro-
grams targeted to empowerment zones and enterprise 
communities; 
(v) support for the identification of eligible provid-
ers of training services as required under section 122; 
112 STAT. 992 
PUBLIC LAW 105-220—AUG. 7, 1998 
(vi)(I) implementation of innovative programs for 
displaced homemakers, which for purposes of this 
subclause may include an individual who is receiving 
public assistance and is within 2 years of exhausting 
lifetime eligibility under part A of title IV of the Socisd 
Security Act (42 U.S.C. 601 et seq.); and 
(II) implementation of programs to increase the 
number of individuals training for and placed in non-
traditional emplo3anent; and 
(vii) carrying out other activities authorized in this 
section that the State determines to be necessary to 
assist local areas in canying out activities described 
in subsection (d) or (e) through the statewide workforce 
investment system. 
(B) LIMITATION.— 
(i) IN GENERAL.—Of the funds allotted to a State 
' 
under sections 127(b) and 132(b) and reserved as 
described in sections 128(a) and 133(a)(1) for a fiscal 
year— 
(I) not more than 5 percent of the amount 
allotted under section 127(b)(1); 
(II) not more than 5 percent of the amount 
allotted under section 132(b)(1); and 
(III) not more than 5 percent of the amount 
allotted under section 132(b)(2), 
may be used by the State for the administration of 
youth activities carried out under section 129 and 
employment and training activities carried out under 
this section. 
(ii) USE OF FUNDS.—^Funds made available for 
administrative costs under clause (i) may be used for 
the administrative cost of any of the statewide youth 
activities or statewide emplojnnent and training activi-
ties, regardless of whether the funds were allotted 
to the State under section 127(b)(1) or paragraph (1) 
or (2) of section 132(b). 
(b) LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.—^Funds allo-
cated to a local area for adults under paragraph (2)(A) or (3), 
as appropriate, of section 133(b), and funds allocated to a local 
area for dislocated workers under section 133(b)(2)(B)— 
(1) shall be used to carry out emplo5anent and training 
activities described in subsection (d) for adults or dislocated 
workers, respectively; and 
(2) may be used to carry out employment and training 
activities described in subsection (e) for adults or dislocated 
workers, respectively. 
(c) ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEM.— 
(1) IN GENERAL.—^There shall be established in a State 
that receives an allotment under section 132(b) a one-stop 
delivery system, which— 
(A) shall provide the core services described in 
subsection (d)(2); 
(B) shall provide access to intensive services and train-
ing services as described in paragraphs (3) and (4) of sub-
section (d), including serving as the point of access to 
individuEd training accounts for training services to partici-
pants in accordance with subsection (d)(4)(G); 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 993 
(C) shall provide access to the activities carried out 
under subsection (e), if any; 
(D) shall provide access to programs and activities 
carried out by one-stop partners £ind described in section 
121(b); and 
(E) shall provide access to the information described 
in section 15 of the Wagner-Peyser Act and all job search, 
placement, recruitment, and other labor exchange services 
authorized under the Wagner-Peyser Act (29 U.S.C. 49 
et seq.). 
(2) ONE-STOP DELIVERY.—^At a minimum, the one-stop 
delivery system— 
(A) shall make each of the programs, services, and 
activities described in paragraph (1) accessible at not less 
than one physical center in each local area of the State; 
and 
(B) may also make programs, services, and activities 
described in paragraph (1) available— 
(i) through a network of affiliated sites that can 
provide one or more of the programs, services, and 
activities to individuals; and 
(ii) through 
a 
network of eligible 
one-stop 
partners— 
(I) in which each partner provides one or more 
of the programs, services, and activities to such 
individuals and is accessible at an affiliated site 
that consists of a physical location or an electroni-
cally or technologically linked access point; and 
(II) that assures individuals that information 
on the availability of the core services will be 
available regardless of where the individuals ini-
tially enter the statewide workforce investment 
system, including information made 
available 
through an access point described in subclause 
(I). 
(3) SPECIALIZED CENTERS.—^The centers and sites described 
in paragraph (2) may have a specialization in addressing special 
needs, such as the needs of dislocated workers. 
(d) REQUIRED LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.— 
(1) IN GENERAL.— 
(A) ALLOCATED FUNDS.—Funds allocated to a local area 
for adults under paragraph (2)(A) or (3), as appropriate, 
of section 133(b), and funds allocated to the local area 
for dislocated workers under section 133(b)(2)(B), shall be 
used— 
(i) to establish a one-stop delivery system described 
in subsection (c); 
(ii) to provide the core services described in para-
graph (2) to adults and dislocated workers, respec-
tively, through the one-stop delivery system in accord-
ance with such paragraph; 
(iii) to provide the intensive services described in 
paragraph (3) to adults and dislocated workers, respec-
tively, described in such paragraph; and 
(iv) to provide training services described in para-
graph (4) to adults and dislocated workers, respec-
tively, described in such paragraph. 
112 STAT. 994 
PUBLIC LAW 105-220—AUG. 7, 1998 
(B) OTHER FUNDS.—^A portion of the funds made avail-
able under Federal law authorizing the programs and 
activities described in section 121(bXl)(B), including the 
Wagner-Peyser Act (29 U.S.C. 49 et seq.), shall be used 
as described in clauses (i) and (ii) of subparagraph (A), 
to the extent not inconsistent with the Federal law 
involved. 
(2) CORE SERVICES.—^Funds described in paragraph (1)(A) 
shall be used to provide core services, which shall be available 
to individuals who are adults or dislocated workers through 
the one-stop delivery system and shall, at a minimum, include— 
(A) determinations of whether the individuals are 
eligible to receive assistance under this subtitle; 
(B) outreach, intake (which may include worker 
profiling), and orientation to the information and other 
services available through the one-stop delivery system; 
(C) initial assessment of skill levels, aptitudes, abili-
ties, and supportive service needs; 
(D) job search and placement assistance, and where 
appropriate, career counseling; 
(E) provision of employment statistics information, 
including the provision of accurate information relating 
to local, regional, and national labor market areas, 
including— 
(i) job vacancy listings in such labor market areas; 
(ii) information on job skills necessary to obtain 
the jobs described in clause (i); and 
(iii) information relating to local occupations in 
demand and the earnings and skill requirements for 
such occupations; and 
(F) provision of performance information and program 
cost information on eligible providers of training services 
as described in section 122, provided by program, and 
eligible providers of youth activities described in section 
123, providers of adult education described in title II, 
providers of postsecondary vocational education activities 
and vocational education activities available to school drop-
outs under the Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2301 et seq.), and 
providers of vocational rehabilitation program activities 
described in title I of the Rehabilitation Act of 1973 (29 
U.S.C. 720 et seq.); 
(G) provision of information regarding how the local 
area is performing on the local performance measures and 
any additional performance information with respect to 
the one-stop delivery system in the local area; 
(H) provision of accurate information relating to the 
availability of supportive services, including child care and 
transportation, available in the local area, and referral 
to such services, as appropriate; 
(I) provision of information regarding filing claims for 
unemployment compensation; 
(J) assistance in establishing eligibility for— 
(i) welfare-to-work activities authorized under sec-
tion 403(aX5) of the Social Security Act (as added 
by section 5001 of the Balanced Budget Act of 1997) 
available in the local area; and 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 995 
(ii) programs of financial aid assistance for training 
and education programs that are not funded under 
this Act and are available in the local area; and 
(K) foUowup services, including counseling regarding 
the workplace, for participants in workforce investment 
activities authorized under this subtitle who are placed 
in unsubsidized emplo3anent, for not less than 12 months 
after the first day of the employment, as appropriate, 
(3) INTENSIVE SERVICES.— 
(A) IN GENERAL.—^Funds allocated to a local area for 
adults under paragraph (2)(A) or (3), as appropriate, of 
section 133(b), and funds allocated to the local area for 
dislocated workers under section 133(b)(2)(B), shall be used 
to provide intensive services to adults and dislocated work-
ers, respectively— 
(i)(I) who are unemployed and are unable to obtain 
employment through core services provided under 
paragraph (2); £ind 
(II) who have been determined by a one-stop opera-
tor to be in need of more intensive services in order 
to obtain emplojrment; or 
(ii) who are employed, but who are determined 
by a one-stop operator to be in need of such intensive 
services in order to obtain or retain employment that 
allows for self-sufficiency. 
(B) DELIVERY OF SERVICES.—Such intensive services 
shall be provided through the one-stop delivery system— 
(i) directly through one-stop operators identified 
pursuant to section 121(d); or 
(ii) through contracts with service providers, which 
may include contracts with public, private for-profit, 
\ 
and private nonprofit service providers, approved by 
the local board. 
(C) TYPES OF SERVICES.—Such intensive services may 
include the following: 
(i) Comprehensive and specialized assessments of 
the skill levels and service needs of adults and dis-
located workers, which may include— 
(I) diagnostic testing and use of other assess-
ment tools; and 
(II) in-depth interviewing and evaluation to 
identify employment barriers and appropriate 
employment goals. 
(ii) Development of an individual emplo5anent plan, 
to identify the employment goals, appropriate achieve-
ment objectives, and appropriate combination of serv-
ices for the participant to achieve the employment 
goals. 
(iii) Group counseling. 
(iv) Individual counseling and career planning. 
(v) Case management for participants seeking 
training services under paragraph (4). 
(vi) Short-term prevocational services, including 
development of learning skills, communication skills, 
interviewing skills, punctuality, personal maintenance 
skills, and professional conduct, to prepare individuals 
for unsubsidized employment or training. 
112 STAT. 996 
PUBLIC LAW 105-220—AUG. 7, 1998 
(4) TRAINING SERVICES.— 
(A) IN GENERAL.—^Funds allocated to a local area for 
adults under paragraph (2)(A) or (3), as appropriate, of 
section 133(b), and funds allocated to a local area for dis-
located workers under section 133(b)(2)(B) shall be used 
to provide trsdning services to adults and dislocated work-
ers, respectively— 
(i) who have met the eligibility requirements for 
intensive services under paragraph (3)(A) and who are 
unable to obtain or retain employment through such 
services; 
(ii) who after an interview, evaluation, or assess-
ment, and case management, have been determined 
by a one-stop operator or one-stop partner, as appro-
priate, to be in need of training services and to have 
the skills and qualifications to successfully participate 
in the selected program of training services; 
(iii) who select programs of training services that 
are directly linked to the employment opportunities 
in the local area involved or in another £irea in which 
the adults or dislocated workers receiving such services 
are willing to relocate; 
(iv) who meet the requirements of subparagraph 
(B); and 
(v) who are determined to be eligible in accordance 
with the priority system, if any, in effect imder 
subparagraph (E). 
(B) QUALIFICATION.— 
(i) REQUIREMENT.—^Except as provided in clause 
(ii), provision of such training services shall be limited 
to individuals who— 
(I) are unable to obtain other grant assistance 
for such services, including Federal Pell Grants 
established under title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1070 et seq.); or 
(II) require assistance beyond the assistance 
made available under other grant assistance pro-
grams, including Federal Pell Grants. 
(ii) REIMBURSEMENTS.—^Training services may be 
provided under this paragraph to an individual who 
otherwise meets the requirements of this paragraph 
while an application for a Federal Pell Grant is pend-
ing, except that if such individual is subsequently 
awarded a Federal Pell Grant, appropriate reimburse-
ment shall be made to the local area from such Federal 
Pell Grant. 
(C) PROVIDER QUALIFICATION.—Training services shall 
be provided through providers identified in accordance with 
section 122. 
(D) 
TRAINING 
SERVICES.—^Training 
services 
may 
include— 
(i) occupational skills training, including training 
for nontraditional employment; 
(ii) on-the-job training; 
(iii) programs that combine workplace training 
with related instruction, which may include cooperative 
education programs; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 997 
(iv) training programs operated by the private 
sector; 
(v) skill upgrading and retraining; 
(vi) entrepreneurial training; 
(vii) job readiness training; 
(viii) adult 
education 
and 
literacy 
activities 
provided in combination with services described in any 
of clauses (i) through (vii); and 
(ix) customized training conducted with a commit-
ment by an employer or group of employers to employ 
an individual upon successful completion of the train-
ing. 
(E) PRIORITY.—In the event that funds allocated to 
a local area for adult emplo5maent and training activities 
under paragraph (2)(A) or (3) of section 133(b) are limited, 
priority shall be given to recipients of public assistance 
and other low-income individuals for intensive services and 
training services. The appropriate local board and the Gov-
ernor shall direct the one-stop operators in the local area 
with regard to making determinations related to such prior-
ity. 
(F) CONSUMER CHOICE REQUIREMENTS.— 
(i) IN GENERAL.—^Training services provided under 
this paragraph shall be provided in a manner that 
maximizes consumer choice in the selection of an 
eligible provider of such services. 
(ii) 
ELIGIBLE 
PROVIDERS.—Each 
local 
board, 
through one-stop centers referred to in subsection (c), 
shall make available— 
(I) the State list of eligible providers of train-
ing services required under section 122(e), with 
a description of the programs through which the 
providers may offer the training services, and the 
information identifying eligible providers of on-the-
job training and customized training required 
under section 122(h); and 
(II) the performance information and perform-
ance cost information relating to eligible providers 
of training services described in subsections (e) 
and (h) of section 122. 
(G) USE OF INDIVIDUAL TRAINING ACCOUNTS.— 
(i) IN GENERAL.—Except as provided in clause (ii), 
training services provided under this paragraph shall 
be provided through the use of individual training 
accounts in accordance with this paragraph, and shall 
be provided to eligible individuals through the one-
stop delivery system. 
(ii) EXCEPTIONS.—^Training services 
authorized 
under this paragraph may be provided pursuant to 
a contract for services in lieu of an individual training 
account if the requirements of subparagraph (F) are 
met and if— 
(I) such services are on-the-job training pro-
vided by an employer or customized training; 
(II) the local board determines there are an 
insufficient number of eligible providers of training 
services in the local area involved (such as in 
112 STAT. 998 
PUBLIC LAW 105-220—AUG. 7, 1998 
a rural area) to accomplish the purposes of a sys-
tem of individual training accounts; or 
(III) the local board determines that there is 
a training services program of demonstrated 
effectiveness offered in the local area by a commu-
nity-based 
organization 
or 
another 
private 
organization to serve special participant popu-
lations that face multiple barriers to employment, 
(iii) LINKAGE TO OCCUPATIONS IN DEMAND.—Train-
ing services provided under this paragraph shall be 
directly linked to occupations that are in demand in 
the local area, or in another area to which an adult 
or dislocated worker receiving such services is willing 
to relocate, except that a local board may approve 
training services for occupations determined by the 
local board to be in sectors of the economy that have 
a high potential for sustained demand or growth in 
the local area. 
(iv) DEFINITION.—In this subparagraph, the term 
"special participant population that faces multiple bar-
riers to employment" means a population of low-income 
individusds that is included in one or more of the 
following categories: 
(I) Individuals with substantial language or 
cultural barriers. 
(II) Offenders. 
(III) Homeless individuals. 
(IV) 
Other 
hard-to-serve 
populations 
as 
defined by the Grovemor involved. 
(e) 
PERMISSIBLE 
LOCAL 
EMPLOYMENT 
AND 
TRAINING 
ACTIVITIES.— 
(1) DISCRETIONARY ONE-STOP DELIVERY ACTIVITIES.—-Funds 
allocated to a local area for adults under paragraph (2)(A) 
or (3), as appropriate, of section 133(b), and funds allocated 
to the local area for dislocated workers under 
section 
133(b)(2)(B), may be used to provide, through one-stop delivery 
described in subsection (c)(2)-— 
(A) customized screening £ind referral of qualified 
participants in training services described in subsection 
(d)(4) to employment; and 
(B) customized employment-related services to employ-
ers on a fee-for-service basis. 
(2) SUPPORTIVE SERVICES.—^Funds allocated to a local area 
for adults under paragraph (2)(A) or (3), as appropriate, of 
section 133(b), and funds allocated to the local area for dis-
located workers under section 133(b)(2)(B), may be used to 
provide supportive services to adults and dislocated workers, 
respectively— 
(A) who are participating in programs with activities 
authorized in any of paragraphs (2), (3), or (4) of subsection 
(d); and 
(B) who are unable to obtain such supportive services 
through other programs providing such services. 
(3) NEEDS-RELATED PAYMENTS.— 
(A) IN GENERAL.—Funds allocated to a locsd area for 
adults under paragraph (2)(A) or (3), as appropriate, of 
section 133(b), and funds allocated to the local area for 
'"s^S- ."^•V--'*^-*f^'^»^p>-j|^f*<*^ -
"
^
" 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 999 
dislocated workers under section 133(b)(2)(B), may be used 
to provide needs-related payments to adults and dislocated 
workers, respectively, who are unemployed and do not qual-
ify for (or have ceased to qualify for) unemplo3rment com-
pensation for the purpose of enabling such individuals to 
participate in programs of training services under sub-
section (d)(4). 
(B) ADDITIONAL ELIGIBILITY REQUIREMENTS.—In addi-
tion to the requirements contained in subparagraph (A), 
a dislocated worker who has ceased to qualify for unemploy-
ment compensation may be eligible to receive needs-related 
pa3nnents under this paragraph only if such worker was 
enrolled in the training services— 
(i) by the end of the 13th week after the most 
recent layoff that resulted in a determination of the 
worker's eligibility for employment and training activi-
ties for dislocated workers under this subtitle; or 
(ii) if later, by the end of the 8th week after the 
worker is informed that a short-term layoff will exceed 
6 months. 
(C) LEVEL OF PAYMENTS.—^The level of a needs-related 
payment made to a dislocated worker under this paragraph 
shall not exceed the greater of— 
(i) the applicable level of unemployment compensa-
tion; or 
(ii) if such worker did not qualify for unemploy-
ment compensation, an amount equal to the poverty 
line, for an equivalent period, which amount shall be 
adjusted to reflect changes in total family income. 
CHAPTER 6—GENERAL PROVISIONS 
SEC. 136. PERFORMANCE ACCOUNTABILnY SYSTEM. 
29 USC 2871. 
(a) PURPOSE.—^The purpose of this section is to establish a 
comprehensive performance accountability system, comprised of the 
activities described in this section, to assess the effectiveness of 
States and local areas in achieving continuous improvement of 
workforce investment activities funded under this subtitle, in order 
to optimize the return on investment of Federal funds in statewide 
and local workforce investment activities. 
(b) STATE PERFORMANCE MEASURES.— 
(1) IN GENERAL.—^For each State, the State performance 
measures shall consist of— 
(A)(i) the core indicators of performance described in 
paragraph (2XA) and the customer satisfaction indicator 
of performance described in paragraph (2XB); and 
(ii) additional indicators of performance (if any) identi-
fied by the State under paragraph (2)(C); and 
(B) a State adjusted level of performance for each 
indicator described in subparagraph (A). 
(2) INDICATORS OF PERFORMANCE.— 
(A) CORE INDICATORS OF PERFORMANCE.— 
(i) IN GENERAL.—^The core indicators of perform-
ance for emplo3nnent and training activities authorized 
under section 134 (except for self-service and informa-
tional activities) and (for participants who are eligible 
112 STAT. 1000 
PUBLIC LAW 105-220—AUG. 7, 1998 
youth age 19 through 21) for youth activities author-
ized under section 129 shall consist of— 
(I) entry into unsubsidized employment; 
(II) retention in unsubsidized employment 6 
months after entry into the employment; 
(III) earnings received in unsubsidized employ-
ment 6 months after entry into the employment; 
and 
(IV) attainment of a recognized credential 
relating to achievement of educational skills, which 
may include attainment of a secondary school 
diploma or its recognized equivalent, or occupa-
tional skills, by participants who enter unsub-
sidized emplojrment, or by participants who are 
eligible youth age 19 through 21 who enter post-
secondary education, advanced training, or unsub-
sidized employment. 
(ii) CORE INDICATORS FOR ELIGIBLE YOUTH.—^The 
core indicators of performance (for participsints who 
are eligible youth age 14 through 18) for youth activi-
ties authorized under section 129, shall include— 
(I) attainment of basic skills and, as appro-
priate, work readiness or occupational skills; 
(II) attainment of secondary school diplomas 
and their recognized equivalents; and 
(III) placement and retention in postsecondary 
education or advanced training, or placement and 
retention in military service, employment, or quali-
fied apprenticeships. 
(B) CUSTOMER SATISFACTION INDICATORS.—^The cus-
tomer satisfaction indicator of performance shall consist 
of customer satisfaction of employers and participants with 
services received from the workforce investment activities 
authorized under this subtitle. Customer satisfaction may 
be measured through surveys conducted after the conclu-
sion of participation in the workforce investment activities. 
(C) ADDITIONAL INDICATORS.—^A State may identify in 
the State plan additional indicators for workforce invest-
ment activities authorized under this subtitle. 
(3) LEVELS OF PERFORMANCE.— 
(A) STATE ADJUSTED LEVELS OF PERFORMANCE FOR 
CORE INDICATORS AND CUSTOMER SATISFACTION INDICA-
TOR.— 
(i) IN GENERAL.—^For each State submitting a State 
plan, there shall be established, in accordance with 
this subparagraph, levels of performance for each of 
the core indicators of performance described in para-
graph (2)(A) and the customer satisfaction indicator 
described in paragraph (2)(B) for workforce investment 
activities authorized under this subtitle. The levels 
of performance established under this subparagraph 
shsdl, at a minimum— 
(I) be expressed in an objective, quantifiable, 
and measurable form; and 
(II) show the progress of the State toward 
continuously improving in performance. 
•^"'-i^^?^" 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1001 
(ii) IDENTIFICATION IN STATE PLAN.—Each State 
shall identify, in the State plan submitted under sec-
tion 112, expected levels of performance for each of 
the core indicators of performance and the customer 
satisfaction indicator of performance, for the first 3 
program years covered by the State plan. 
(iii) AGREEMENT ON STATE ADJUSTED LEVELS OF 
PERFORMANCE FOR FIRST 3 YEARS.—In order to ensure 
an optimal return on the investment of Federal funds 
in workforce investment activities authorized under 
this subtitle, the Secretary and each Governor shall 
reach agreement on levels of performance for each 
of the core indicators of performance and the customer 
satisfaction indicator of performance, for the first 3 
program years covered by the State plan, taking into 
account the levels identified in the State plan under 
clause (ii) and the factors described in clause (iv). 
The levels agreed to under this clause shall be consid-
ered to be the State adjusted levels of performance 
for the State for such years and shall be incorporated 
into the State plan prior to the approval of such plan. 
(iv) FACTORS.—The agreement described in clause 
(iii) or (v) shall take into account— 
(I) the extent to which the levels involved will 
assist the State in attaining a high level of cus-
tomer satisfaction; 
(II) how the levels involved compare with the 
State adjusted levels of performance established 
for other States, taking into account factors includ-
ing 
differences 
in 
economic 
conditions, 
the 
characteristics of participants when the partici-
pants entered the program, and the services to 
be provided; and 
(III) the extent to which such levels involved 
promote continuous improvement in performance 
on the performance measures by such State and 
ensure optimal return on the investment of FedergJ 
funds. 
(v) AGREEMENT ON STATE ADJUSTED LEVELS OF 
PERFORMANCE FOR 4TH AND 5TH YEARS.—^Prior to t h e 
4th program year covered by the State plan, the Sec-
retary and each Grovernor shall reach agreement on 
levels of performance for each of the core indicators 
of performance and the customer satisfaction indicator 
of performance, for the 4th and 5th program years 
covered by the State plan, taking into account the 
factors described in clause (iv). The levels agreed to 
under this clause shall be considered to be the State 
adjusted levels of performance for the State for such 
years and shall be incorporated into the State plan, 
(vi) REVISIONS.—If unanticipated 
circumstances 
arise in a State resulting in a significant change in 
the factors described in clause (iv)(II), the Governor 
may request that the State adjusted levels of perform-
ance agreed to under clause (iii) or (v) be revised. 
112 STAT. 1002 
PUBLIC LAW 105-220—AUG. 7, 1998 
The Secretary, after collaboration with the representa-
tives described in subsection (i), shall issue objective 
criteria and methods for making such revisions. 
(B) LEVELS OF P
E
R
F
O
R
M
A
N
C
E FOR A
D
D
I
T
I
O
N
A
L INDICA-
TORS.—^The State may identify, in the State plan. State 
levels of performance for each of the additional indicators 
described in paragraph (2XC). Such levels shall be consid-
ered to be State adjusted levels of performance for purposes 
of this title. 
(c) LOCAL PERFORMANCE MEASURES.— 
(1) IN GENERAL,—^For each local area in a State, the local 
performance measures shall consist o
f
— 
(A)(i) the core indicators of performance described in 
subsection (b)(2XA), and the customer satisfaction indicator 
of performance described in subsection (b)(2XB), for activi-
ties described in such subsections, other than statewide 
workforce investment activities; and 
(ii) additional indicators of performance (if any) identi-
fied by the State under subsection (bX2XC) for activities 
described in such subsection, other than statewide 
workforce investment activities; and 
(B) a local level of performance for each indicator 
described in subparagraph (A). 
(2) LOCAL LEVEL OF PERFORMANCE.—The local board, the 
chief elected official, and the Governor shall negotiate and 
reach agreement on the local levels of performance based on 
the State adjusted levels of performance estabUshed under sub-
section (b). 
(3) DETERMINATIONS.—^In determining such local levels of 
performance, the local board, the chief elected ofRcial, and 
the Governor shall take into account the specific economic, 
demographic, £ind other characteristics of the populations to 
be served in the local area. 
(d) REPORT.— 
(1) IN GENERAL.—^Each State that receives an allotment 
under section 127 or 132 shall annually prepare and submit 
to the Secretory a report on the progress of the State in achiev-
ing State performance measures, including information on tibe 
levels of performance achieved by the Stote with respect to 
the core indicators of performance and the customer satisfaction 
indicator. The annual report also shall include information 
regarding the progress of local areas in the State in achieving 
local penormance measures, including information on the levels 
of performance achieved by the areas with respect to the core 
indicators of performance and the customer satisfaction indica-
tor. The report also shall include information on the stotus 
of Stote evaluations of workforce investment activities described 
in subsection (e). 
(2) ADDITIONAL INFORMATION.—^In preparing such report, 
the Stote shall include, at a minimum, information on partici-
pants in workforce investment activities authorized under this 
subtitle relating to— 
(A) entry by participante who have completed training 
services provided under section 134(dX4) into unsubsidized 
employment related to the training received; 
(B) wages at entry into employment for participants 
in 
workforce 
investment 
activities 
who 
entered 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1003 
unsubsidized emplojonent, including the rate of wage 
replacement for such participants who are dislocated work-
ers; 
(C) cost of workforce investment activities relative to 
the effect of the activities on the performance of partici-
pants; 
(D) retention and earnings received in unsubsidized 
emplo)anent 12 months after entry into the emplojonent; 
(E) performance with respect to the indicators of 
performance specified in subsection (b)(2)(A) of participants 
in workforce investment activities who received the training 
services compared with the performance of participants 
in workforce investment activities who received only serv-
ices other than the training services (excluding participants 
who received only self-service and informational activities); 
and 
(F) performance with respect to the indicators of 
performance specified in subsection (b)(2)(A) of recipients 
of public assistance, out-of-school youth, veterans, individ-
uals with disabilities, displaced homemakers, and older 
individuals. 
(3) INFORMATION DISSEMINATION.—^The Secretary— 
PubUcatioa 
(A) shall make the information contained in such 
reports available to the general public through publication 
and other appropriate methods; 
(B) shall disseminate State-by-State comparisons of the 
information; and 
(C) shall provide the appropriate congressional commit-
tees with copies of such reports. 
(e) EVALUATION OF STATE PROGRAMS.— 
(1) IN GENERAL.—Using funds made available under this 
subtitle, the State, in coordination with local boards in the 
State, shall conduct ongoing evaluation studies of workforce 
investment activities carried out in the State under this subtitle 
in order to promote, establish, implement, and utilize methods 
for continuously improving the activities in order to achieve 
high-level performance within, and high-level outcomes from, 
the statewide workforce investment system. To the maximum 
extent practicable, the State shall coordinate the evaluations 
with the evaluations provided for by the Secretary under section 
172. 
(2) DESIGN.—^The evaluation studies conducted under this 
subsection shall be designed in conjimction with the State 
board and local boards and shall include analysis of customer 
feedback and outcome and process measures in the statewide 
workforce investment system. The studies may include use 
of control groups. 
(3) RESULTS.—^The State shall periodically prepare and sub- Reports, 
mit to the State board, and local boards in the State, reports 
containing the results of evaluation studies conducted under 
this subsection, to promote the efficiency and effectiveness of 
the statewide workforce investment system in improving 
employability for jobseekers £uid competitiveness for employers. 
(f) FISCAL AND MANAGEMENT ACCOUNTABILITY INFORMATION 
SYSTEMS.— 
(1) IN GENERAL.—^Using funds made available under this Guidelines, 
subtitle, the Governor, in coordination with local boards and 
112 STAT. 1004 
PUBLIC LAW 105-220—AUG. 7, 1998 
chief elected officials in the State, shall establish and operate 
a fiscal and management accountability information system 
based on guidelines established by the Secretary after consulta-
tion with the Grovemors, local elected officials, and one-stop 
partners. Such guidelines shall promote efficient collection and 
use of fiscal and management information for reporting and 
monitoring the use of funds made available under this subtitle 
and for preparing the annual report described in subsection 
(d). 
(2) WAGE RECORDS.—^In measuring the progress of the State 
on State and local performsince measures, a State shall utilize 
quarterly wage records, consistent with State law. The Sec-
retary shall make arrangements, consistent with State law, 
to ensure that the wage records of any State are available 
to any other State to the extent that such wage records are 
required by the State in carrying out the State plan of the 
State or completing the annusd report described in subsection 
(d). 
(3) CONFIDENTIALITY.—^In carrying out the requirements 
of this Act, the State shall comply with section 444 of the 
General Education Provisions Act (20 U.S.C. 1232g) (as added 
by the Family Educational Rights and Privacy Act of 1974). 
(g) SANCTIONS FOR STATE FAILURE TO MEET STATE PERFORM-
ANCE MEASURES.— 
(1) STATES.— 
(A) TECHNICAL ASSISTANCE.—If a State fails to meet 
State adjusted levels of performance relating to indicators 
described in subparagraph (A) or (B) of subsection (b)(2) 
for a program for any program year, the Secretary shall, 
upon request, provide technical assistance in accordance 
with section 170, including assistance in the development 
of a performance improvement plan. 
(B) REDUCTION IN AMOUNT OF GRANT.—^If such failure 
continues for a second consecutive year, or if a State fails 
to submit a report under subsection (d) for any program 
year, the Secretary may reduce by not more than 5 percent, 
the amount of the grant that would (in the absence of 
this paragraph) be payable to the State under such program 
for the immediately succeeding program year. Such penalty 
shall be based on the degree of failure to meet State 
adjusted levels of performance. 
(2) FUNDS RESULTING FROM REDUCED ALLOTMENTS.—The 
Secretary shall use an amount retained, as a result of a reduc-
tion in an allotment to a State made under paragraph (IXB), 
to provide incentive grants under section 503. 
(h) SANCTIONS FOR LOCAL AREA FAILURE TO MEET LOCAL 
PERFORMANCE MEASURES.— 
(1) TECHNICAL ASSISTANCE.—If a local area fails to meet 
levels of peiformance relating to indicators described in 
subparagraph (A) or (B) of subsection (bX2) for a program 
for any program year, the Governor, or upon request by the 
Governor, the Secretary, shall provide technical assistance, 
which may include assistance in the development of a perform-
ance improvement plan, or the development of a modined local 
plan. 
(2) CORRECTIVE ACTIONS.— 
M*» 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1005 
(A) IN GENERAL.—^If such failure continues for a second 
consecutive year, the Grovemor shall take corrective actions, 
which may include development of a reorganization plan 
through which the Governor may— 
(i) require the appointment and certification of 
a new local board (consistent with the criteria estab-
lished under section 117(b)); 
(ii) prohibit the use of eligible providers and one-
stop partners identified as achieving a poor level of 
performance; or 
(iii) take such other actions as the Governor deter-
mines are appropriate. 
(B) APPEAL BY LOCAL AREA.— 
Deadlines. 
(i) APPEAL TO GOVERNOR.—A local area that is 
subject to a reorganization plan under subparagraph 
(A) may, not later than 30 days afler receiving notice 
of the reorganization plan, appeal to the Grovemor 
to rescind or revise such plan. In such case, the Gov-
ernor shall make a final decision not later then 30 
days after the receipt of the appeal. 
(ii) SUBSEQUENT ACTION.—^The local area may, not 
later than 30 days after receiving a decision from the 
Governor pursuant to clause (i), appeal such decision 
to the Secretary. In such case, the Secretary shall 
make a final decision not later than 30 days after 
the receipt of the appeal. 
(C) EFFECTIVE DATE.—^The decision made by the Gov-
-
. emor under clause (i) of subparagraph (B) shall become 
effective at the time the Grovemor issues the decision pursu-
ant to such clause. Such decision shall remain effective 
unless the Secretary rescinds or revises such plan pursuant 
to clause (ii) of subparagraph (B), 
(i) OTHER MEASURES AND TERMINOLOGY.— 
(1) RESPONSIBILITIES.—^In order to ensure nationwide com-
parability of performance data, the Secretary, after collabora-
tion with representatives of appropriate Federal agencies, and 
representatives of States and political subdivisions, business 
and industry, employees, eligible providers of employment and 
training activities, educators, and participants, with expertise 
regarding workforce investment poHcies and workforce invest-
ment activities, shall issue— 
(A) definitions for information required to be reported 
under subsection (dX2); 
(B) terms for a menu of additional indicators of 
performance described in subsection (bX2XC) to assist 
States in assessing their progress toward State workforce 
investment goals; and 
(C) objective criteria and methods described in sub-
section (b)(3)(AXvi) for making revisions to levels of 
performance. 
(2) DEFINITIONS FOR CORE INDICATORS.—The Secretary and 
the representatives described in paragraph (1) shall participate 
in the activities described in section 502 concerning the issuance 
of definitions for indicators of performance described in sub-
section (bX2)(A). 
112 STAT. 1006 
PUBLIC LAW 105-220—AUG. 7, 1998 
(3) ASSISTANCE.—^The Secretary shall make the services 
of staff available to the representatives to assist the representa-
tives in participating in the collaboration described in para-
graph (1) and in the activities described in section 502. 
29 use 2872. 
SEC. 137. AUTHORIZATION OF APPROPRIATIONS. 
(a) YOUTH ACTIVITIES.—^There are authorized to be appropriated 
to carry out the activities described in section 127(a), such sums 
as may be necessary for each of fiscal years 1999 through 2003. 
(b) ADULT EMPLOYMENT AND TRAINING ACTIVITIES.—^Tnere are 
authorized to be appropriated to carry out the activities described 
in section 132(a)(1), such sums as may be necessary for each of 
fiscal years 1999 through 2003. 
(c) DISLOCATED WORKER EMPLOYMENT AND TRAINING ACTIVI-
TIES.—^There are authorized to be appropriated to carry out the 
activities described in section 132(a)(2), such sums as may be nec-
essary for each of fiscal years 1999 through 2003. 
Subtitle C—Job Corps 
29 use 2881. 
SEC. 141. PURPOSES. 
The purposes of this subtitle are— 
(1) to maintain a national Job Corps program, carried 
out in partnership with States and communities, to assist 
eligible youth who need and can benefit from an intensive 
program, operated in a group setting in residential and nonresi-
dential centers, to become more responsible, employable, and 
productive citizens; 
(2) to set forth standards and procedures for selecting 
individuals as enroUees in the Job Corps; 
(3) to authorize the establishment of Job Corps centers 
in which enroUees will participate in intensive programs of 
activities described in this subtitle; and 
(4) to prescribe various other powers, duties, 2ind respon-
sibilities incident to the operation and continuing development 
of the Job Corps. 
29 use 2882. 
SEC. 142. DEFINITIONS. 
In this subtitle: 
(1) APPLICABLE LOCAL BOARD.—^The term "applicable local 
board" means a local board— 
(A) that provides information for a Job Corps center 
on local employment opportunities and the job skills needed 
to obtain the opportunities; and 
(B) that serves communities in which the graduates 
of the Job Corps center seek employment. 
(2) APPLICABLE ONE-STOP CENTER.—^The term "applicable 
one-stop center" means a one-stop customer service center that 
provides services, such as referral, intake, recruitment, and 
placement, to a Job Corps center. 
(3) ENROLLEE.—^The term "enroUee" means an individual 
who has voluntarily applied for, been selected for, and enrolled 
in the Job Corps program, and remains with the program, 
but has not yet become a graduate. 
(4) FORMER ENROLLEE.—^The term "former enrollee" means 
an individual who has voluntarily applied for, been selected 
for, and enrolled in the Job Corps program, but left the program 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1007 
before completing the requirements of a vocational trsdning 
program, or receiving a secondary school diploma or recognized 
equivalent, as a result of participation in the Job Corps pro-
gram. 
(5) GRADUATE.—^The term "graduate" means an individual 
who has voluntarily applied for, been selected for, and enrolled 
in the Job Corps program and has completed the requirements 
of a vocational training program, or received a secondary school 
diploma or recognized equivalent, as a result of participation 
in the Job Corps program. 
(6) JOB CORPS.—^The term "Job Corps" mesms the Job Corps 
described in section 143. 
(7) JOB CORPS CENTER.—^The term "Job Corps center" means 
a center described in section 147. 
(8) OPERATOR.—^The term "operator" means an entity 
selected under this subtitle to operate a Job Corps center. 
(9) REGION.—^The term "region" means an area served by 
. a regional office of the Employment and Training Administra-
tion. 
(10) SERVICE PROVIDER.—^The term "service provider" 
means an entity selected under this subtitle to provide services 
described in this subtitle to a Job Corps center. 
SEC. 143. ESTABLISHMENT. 
29 USC 2883. 
There shall be within the Department of Labor a "Job Corps". 
SEC. 144. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS. 
29 USC 2884. 
To be eligible to become an enroUee, an individual shall be— 
(1) not less than age 16 and not more than age 21 on 
the date of enrollment, except that— 
(A) not more than 20 percent of the individuals enrolled 
in the Job Corps may be not less than age 22 and not 
more than age 24 on the date of enrollment; and 
(B) either such maximum age limitation may be waived 
by the Secretary, in accordance with regulations of the 
Secretary, in the case of an individual with a disability; 
(2) a low-income individual; and 
(3) an individual who is one or more of the following: 
(A) Basic skills deficient. 
(B) A school dropout. 
(C) Homeless, a runaway, or a foster child. 
(D) A parent. 
(E) An individual who requires additional education, 
vocational training, or intensive counseling and related 
assistance, in order to participate successfully in regular 
schoolwork or to secure and hold employment. 
SEC. 145. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT 29 USC 2885. 
OFENROLLEES. 
(a) STANDARDS AND PROCEDURES.— 
(1) IN GENERAL.—^The Secretary shall prescribe specific 
standards and procedures for the recruitment, screening, and 
selection of eligible applicants for the Job Corps, after consider-
ing reconunendations from the Governors, local boards, and 
other interested parties. 
(2) METHODS.—^In prescribing standards and procedures 
under paragraph (1), the Secretary, at a minimum, shall— 
112 STAT. 1008 
PUBLIC LAW 105-220—AUG. 7, 1998 
(A) prescribe procedures for informing enrollees that 
drug tests will be administered to the enrollees and the 
results received within 45 days after the enrollees enroll 
in the Job Corps; 
(B) establish standards for recruitment of Job Corps 
applicants; 
(C) establish standards and procedures for— 
(i) determining, for each applicant, whether the 
educational and vocationsil needs of the applicant can 
best be met through the Job Corps program or an 
alternative program in the community in which the 
applicant resides; and 
(ii) obtaining from each applicant pertinent data 
relating to background, needs, and interests for deter-
mining eligibility and potential assignment; 
(D) where appropriate, take measures to improve the 
professional capability of the individuals conducting screen-
ing of the applicants; and 
(E) assure that an appropriate number of enrollees 
are from rural areas. 
(3) IMPLEMENTATION.—To the extent practicable, the 
standards and procedures shall be implemented through 
arrangements with— 
(A) applicable one-stop centers; 
(B) community action agencies, business organizations, 
and labor organizations; and 
(C) agencies and individuals that have contact with 
youth over substantial periods of time and are able to 
offer reliable information about the needs and problems 
of youth. 
(4) CONSULTATION.—The standards and procedures shall 
provide for necessary consultation with individuals and 
organizations, including court, probation, parole, law enforce-
ment, education, welfare, and medical authorities and advisers. 
Contracts. 
(5) REIMBURSEMENT.—The Secretary is authorized to enter 
into contracts with and make payments to individueds and 
organizations for the cost of conducting recruitment, screening, 
and selection of eligible applicants for the Job Corps, as pro-
vided for in this section. The Secretary shall make no payment 
to any individual or organization solely as compensation for 
referring the names of applicants for the Job Corps. 
(b) SPECIAL LIMITATIONS ON SELECTION.— 
(1) IN GENERAL.—^No individual shall be selected as an 
enrollee unless the individual or organization implementing 
the standards and procedures described in subsection (a) deter-
mines that— 
(A) there is a reasonable expectation that the individ-
ual considered for selection can participate successfully 
in group situations and activities, and is not likely to 
engage in behavior that would prevent other enrollees from 
receiving the benefit of the Job Corps progrsun or be 
incompatible with the maintenance of sound discipline and 
satisfactory relationships between the Job Corps center 
to which the individual might be assigned and communities 
surrounding the Job Corps center; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1009 
(B) the individual manifests a basic understanding of 
both the rules to which the individual will be subject and 
of the consequences of failure to observe the rules; and 
(C) the individual has passed a background check con-
ducted in accordance with procedures established by the 
Secretary. 
(2) 
INDIVIDUALS ON PROBATION, PAROLE, OR SUPERVISED 
RELEASE.—^An individual on probation, parole, or supervised 
release may be selected as an enroUee only if release from 
the supervision of the probation or parole official involved is 
satisfactory to the official and the Secretary and does not violate 
applicable laws (including regulations). No individual shall be 
denied a position in the Job Corps solely on the basis of individ-
ual contact with the criminal justice system. 
(c) ASSIGNMENT PLAN.— 
(1) IN GENERAL.—^Every 2 years, the Secretary shall develop 
and implement an assignment plan for assigning enrollees to 
Job Corps centers. In developing the plan, the Secretary shall, 
based on the analysis described in paragraph (2), establish 
targets, applicable to each Job Corps center, for— 
(A) the maximum attainable percentage of enrollees 
at the Job Corps center that reside in the State in which 
the center is located; and 
(B) the maximum attainable percentage of enrollees 
at the Job Corps center that reside in the region in which 
the center is located, and in surrounding regions. 
(2) ANALYSIS.—^In order to develop the plan described in 
paragraph (1), the Secretary shall, every 2 years, analyze, 
for the Job Corps center— 
(A) the size of the population of individuals eligible 
to participate in Job Corps in the State and region in 
which the Job Corps center is located, and in surrounding 
regions; 
(B) the relative demand for participation in the Job 
Corps in the State and region, and in surrounding regions; 
and 
(C) the capacity and utilization of the Job Corps center, 
including services provided through the center. 
(d) ASSIGNMENT OF INDIVIDUAL ENROLLEES.— 
. 
(1) IN GENERAL.—After an individual has been selected 
for the Job Corps in accordance with the standards and proce-
dures of the Secretary under subsection (a), the enroUee shall 
be assigned to the Job Corps center that is closest to the 
home of the enrollee, except that the Secretary may waive 
this requirement if— 
(A) the enrollee chooses a vocational training program, 
or requires an English literacy program, that is not avail-
able at such center; 
(B) the enrollee would be unduly delayed in participat-
ing in the Job Corps program because the closest center 
is operating at full capacity; or 
(C) the parent or guardian of the enrollee requests 
assignment of the enrollee to another Job Corps center 
due to circumstances in the community of the enrollee 
that would impair prospects for successful participation 
in the Job Corps program. 
112 STAT. 1010 
PUBLIC LAW 105-220—AUG. 7, 1998 
(2) ENROLLEES WHO ARE YOUNGER THAN 18.—An enroUee 
who is younger than 18 shsdl not be assigned to a Job Corps 
center other than the center closest to the home of the enroUee 
pursuant to paragraph (1) if the parent or guardian of the 
enroUee objects to the assignment. 
29 use 2886. 
SEC. 146. ENROLLMENT. 
(a) 
RELATIONSHIP BETWEEN ENROLLMENT AND MILITARY 
OBLIGATIONS.—^Enrollment in the Job Corps shall not relieve any 
individual of obligations under the Military Selective Service Act 
(50 U.S.C. App. 451 et seq.). 
(b) PERIOD OF ENROLLMENT.—No individual may be enrolled 
in the Job Corps for more than 2 years, except— 
(1) in a case in which completion of an advanced career 
training program under section 148(c) would require an individ-
ual to participate in the Job Corps for not more than one 
additional year; or 
(2) as the Secretary may authorize in a special case. 
29 use 2887. 
SEC. 147. JOB CORPS CENTERS. 
(a) OPERATORS AND SERVICE PROVIDERS.— 
(1) ELIGIBLE ENTITIES.— 
eontracts. 
(A) OPERATORS.—^The Secretary shall enter into an 
agreement with a Federsd, State, or local agency, an area 
vocational education school or residential vocational school, 
or a private organization, for the operation of each Job 
Corps center. 
(B) PROVIDERS.—^The Secretary may enter into an 
agreement with a local entity to provide activities described 
in this subtitle to the Job Corps center. 
(2) SELECTION PROCESS.— 
(A) COMPETITIVE BASIS.—^Except as provided in sub-
sections (c) and (d) of section 303 of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 253), 
the Secretary shall select on a competitive basis an entity 
to operate a Job Corps center and entities to provide activi-
ties described in this subtitle to the Job Corps center. 
In developing a solicitation for an operator or service pro-
vider, the Secretary shall consult with the Governor of 
the State in which the center is located, the industry council 
for the Job Corps center (if established), and the applicable 
local board regarding the contents of such solicitation, 
including elements that will promote the consistency of 
the activities carried out through the center with the objec-
tives set forth in the State plan or in a local plan. 
(B) RECOMMENDATIONS AND CONSIDERATIONS.— 
(i) OPERATORS.—^In selecting an entity to operate 
a Job Corps center, the Secretary shall consider— 
(I) the isibility of the entity to coordinate the 
activities carried out through the Job Corps center 
with activities carried out under the appropriate 
State plan and local plans; 
(II) the degree to which the vocational training 
that the entity proposes for the center reflects 
local employment opportunities in the local areas 
in which enrollees at the center intend to seek 
employment; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1011 
(III) the degree to which the entity is familiar 
with the surrounding communities, applicable one-
stop centers, and the State and region in which 
the center is located; and 
(IV) the past performance of the entity, if any, 
relating to operating or providing 
activities 
described in this subtitle to a Job Corps center, 
(ii) PROVIDERS.—In selecting a service provider for 
a Job Corps center, the Secretary shall consider the 
factors described in subclauses (I) through (IV) of 
clause (i), as appropriate. 
(b) CHARACTER AND ACTIVITIES.—Job Corps centers may be 
residentisd or nonresidential in character, and shall be designed 
and operated so as to provide enroUees, in a well-supervised setting, 
with access to activities described in this subtitle. In any year, 
no more than 20 percent of the individuals enrolled in the Job 
Corps may be nonresidential participants in the Job Corps. 
(c) CIVILIAN CONSERVATION CENTERS.— 
(1) IN GENERAL.—^The Job Corps centers may include 
Civilian Conservation Centers operated under agreements with 
the Secretary of Agriculture or the Secretary of the Interior, 
located primarily in rural areas, which shall provide, in addition 
to other vocational training and assistance, programs of work 
experience to conserve, develop, or manage public natural 
resources or public recreational areas or to oevelop community 
projects in the public interest, 
(2) SELECTION PROCESS.—The Secretary may select an 
entity to operate a Civilian Conservation Center on a competi-
tive basis, as provided in subsection (a), if the center fails 
to meet such national performance standards as the Secretary 
shall establish. 
(d) INDIAN TRIBES.— 
(1) GENERAL AUTHORITY,—^The Secretary may enter into 
agreements with Indian tribes to operate Job Corps centers 
for Indians. 
(2) DEFINITIONS.—In this subsection, the terms "Indian" 
and "Indian tribe", have the meanings given such terms in 
subsections (d) and (e), respectively, of section 4 of the Indian 
Self-Determination and Education Assistance Act (25 U.S.C. 
450b). 
SEC. 148. PROGRAM ACnvmES. 
29 USC 2888. 
(a) ACTIVITIES PROVIDED BY JOB CORPS CENTERS.— 
(1) IN GENERAL.—^Each Job Corps center shall provide 
enrollees with an intensive, well organized, and fully supervised 
program of education, vocational training, work experience, 
recreational activities, physical rehabilitation and development, 
and counseling. Each Job Corps center shall provide enrollees 
assigned to the center with access to core services described 
in section 134(d)(2) and the intensive services described in 
section 134(dX3). 
(2) RELATIONSHIP TO OPPORTUNITIES.— 
(A) IN GENERAL.—^The activities provided under this 
subsection shall provide work-based Ie£iming throughout 
the enrollment or the enrollees and assist the enrollees 
in obtaining meaningful unsubsidized emplo3anent, partici-
pating in secondary education or postsecondary education 
112 STAT. 1012 
PUBLIC LAW 105-220—AUG. 7, 1998 
programs, enrolling in other suitable vocational training 
programs, or satisfying Armed Forces requirements, on 
completion of their enrollment. 
(B) LINK TO EMPLOYMENT OPPORTUNITIES.—The voca-
tional training provided shall be linked to the employment 
opportunities in the locsd area in which the enroUee intends 
to seek employment after graduation. 
(b) EDUCATION AND VOCATIONAL TRAINING.—The Secretary may 
arrange for education and vocational training of enroUees through 
local public or private educational agencies, vocational educational 
institutions, or technical institutes, whenever such entities provide 
education and training substantially equivalent in cost and quality 
to that which the Secretary could provide through other mesois. 
(c) ADVANCED CAREER TRAINING PROGRAMS.— 
(1) IN GENERAL.—^The Secretary may arrange for programs 
of advanced career training for selected enroUees in which 
the enroUees may continue to participate for a period of not 
to exceed 1 year in addition to the period of participation 
to which the enroUees would otherwise be limited. The advanced 
career training may be provided through the eligible providers 
of training services identified under section 122. 
(2) BENEFITS.— 
(A) IN GENERAL.—^During the period of participation 
in an advanced career training program, £in enroUee shall 
be eligible for full Job Corps benefits, or a monthly stipend 
equal to the average value of the residential support, food, 
allowances, and other benefits provided to enroUees 
assigned to residential Job Corps centers. 
(B) CALCULATION.—The total amount for which an 
enroUee shall be eligible under subparagraph (A) shall 
be reduced by the amount of any scholarship or other 
educational grant assistance received by such enroUee for 
advanced career training. 
(3) DEMONSTRATION.—^Each year, any operator seeking to 
enroll additional enroUees in an advanced career training pro-
gram shall demonstrate that participants in such program have 
achieved a satisfactory rate of completion and placement in 
training-related jobs before the operator may carry out such 
additional enrollment. 
(d) CONTINUED SERVICES.—The Secretary shall also provide 
continued services to graduates, including providing counseling 
regarding the workplace for 12 months after the date of graduation 
of the graduates. In selecting a provider for such services, the 
Secreta^ shall give priority to one-stop partners. 
(e) CHILD CARE.—^The Secretary shall, to the extent practicable, 
provide child care at or near Job Corps centers, for individuals 
who require child care for their children in order to participate 
in the Job Corps. 
. 
29 use 2889. 
SEC. 149. COUNSELING AND JOB PLACEMENT. 
(a) COUNSELING AND TESTING.—^The Secretary shall arrange 
for counseling and testing for each enroUee at regular intervals 
to measure progress in the education and vocational training pro-
grams carried out through the Job Corps. 
(b) PLACEMENT.—^Tne Secretary shaU arrange for counseling 
and testing for enroUees prior to their scheduled graduations to 
determine their capabilities and, based on their capabilities, shaU 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1013 
make every effort to arrange to place the enroUees in jobs in 
the vocations for which the enroUees are trained or to assist the 
enroUees in obtaining further activities described in this subtitle. 
In arranging for the placement of graduates in jobs, the Secretary 
shall utilize the one-stop delivery system to the fullest extent pos-
sible. 
(c) STATUS AND PROGRESS.—The Secretary shaU determine the 
status and progress of enroUees scheduled for graduation and make 
every effort to assure that their needs for further activities described 
in this subtitle are met. 
(d) SERVICES TO FORMER ENROLLEES.—The Secretary may pro-
vide such services as the Secretary determines to be appropriate 
under this subtitle to former enroUees. 
SEC. 160. SUPPORT. 
' 
29USC2890. 
(a) PERSONAL ALLOWANCES.-^-The Secretary may provide enroll-
ees assigned to Job Corps centers with such personal allowances 
as the Secretary may determine to be necessary or appropriate 
to meet the needs of the enrollees. 
(b) READJUSTMENT ALLOWANCES.— 
(1) GRADUATES.—^The Secretary shall arrange for a 
readjustment allowance to be paid to graduates. The Secretary 
shall arrange for the allowance to be paid at the one-stop 
center nearest to the home of the graduate who is returning 
home, or at the one-stop center nearest to the location where 
the graduate has indicated an intent to seek emplo3anent. If 
the Secretary uses any organization, in lieu of a one-stop center, 
to provide placement services under this Act, the Secretary 
shall arrange for that organization to pay the readjustment 
allowance. 
(2) FORMER ENROLLEES.—^The Secretary may provide for 
a readjustment allowance to be paid to former enrollees. The 
provision of the readjustment allowance shall be subject to 
the same requirements as are applicable to the provision of 
the readjustment allowance paid to graduates under paragraph 
(1). 
SEC. 151. OPERATING PLAN. 
29USC2891. 
(a) IN GENERAL.—^The provisions of the contract between the 
Secretary and an entity selected to operate a Job Corps center 
shall, at a minimum, serve as an operating plan for the Job Corps 
center. 
(b) ADDITIONAL INFORMATION.—^The Secretary may require the 
operator, in order to remain eligible to operate the Job Corps 
center, to submit such additional information as the Secretary 
may require, which shall be considered part of the operating plan. 
(c) AVAILABILITY.—^The Secretary shall make the operating plan 
described in subsections (a) and (b), excluding any proprietary 
information, available to the public. 
SEC. 152. STANDARDS OF CONDUCT. 
29 USC 2892. 
(a) PROVISION AND ENFORCEMENT.—^The Secretary shall pro-
vide, and directors of Job Corps centers shall stringently enforce, 
standards of conduct within the centers. Such standards of conduct 
shall include provisions forbidding the actions described in sub-
section (b)(2)(A). 
(b) DISCIPLINARY MEASURES.— 
59-194 O - 98 - 5 : QL 3 Part 2 
112 STAT. 1014 
PUBLIC LAW 105-220—AUG. 7, 1998 
(1) IN GENERAL.—To promote the proper moral and discipli-
nary conditions in the Job Corps, the directors of Job Corps 
centers shall take appropriate disciplinary measures against 
enroUees. If such a director determines that an enroUee has 
committed a violation of the standards of conduct, the director 
shall dismiss the enroUee from the Job Corps if the director 
determines that the retention of the enroUee in the Job Corps 
will jeopardize the enforcement of such standards or diminish 
the opportunities of other enroUees. 
(2) ZERO TOLERANCE POLICY AND DRUG TESTING.— 
(A) GUIDELINES.—^The Secretary shall adopt guidelines 
establishing a zero tolerance policy for an act of violence, 
for use, sale, or possession of a controlled substance, for 
abuse of alcohol, or for other illegal or disruptive activity. 
(B) DRUG TESTING.—^The Secretary shall require drug 
testing of all enroUees for controlled substances in accord-
ance with procedures prescribed by the Secretary under 
section 145(a). 
(C) DEFINITIONS.—In this paragraph: 
(i) CONTROLLED SUBSTANCE.—The term "controlled 
substance" has the meaning given the term in section 
102 of the Controlled Substances Act (21 U.S.C. 802). 
(ii) ZERO TOLERANCE POLICY.—The term "zero 
tolerance policjr" means a policy under which an 
enroUee shall be automatically dismissed from the Job 
Corps after a determination by the director that the 
enroUee has carried out an action described in subpara-
graph (A), 
(c) APPEAL.—A disciplinary measure taken by a director under 
this section shall be subject to expeditious appeal in accordance 
with procedures established by the Secretary. 
29 use 2893. 
SEC. 153. COMMUNITY PARTICIPATION. 
(a) BUSINESS AND COMMUNITY LIAISON.—Each Job Corps center 
shall have a Business and Community Liaison (referred to in this 
Act as a "Liaison"), designated by the director of the center. 
(b) RESPONSIBILITIES.—^The responsibilities of the Liaison shall 
include— 
(1) establishing and developing relationships and networks 
with— 
(A) local and distant employers; and 
(B) applicable one-stop centers and applicable local 
boards, 
for the purpose of providing job opportunities for Job Corps 
graduates; and 
(2) establishing and developing relationships with members 
of the community in which the Job Corps center is located, 
informing members of the community about the projects of 
the Job Corps center and changes in the rules, procedures, 
or activities of the center that may affect the community, and 
planning events of mutual interest to the community and the 
Job Corps center. 
(c) NEW CENTERS.—^The Liaison for a Job Corps center that 
is not yet operating shall establish and develop the relationships 
and networks described in subsection (b) at least 3 months prior 
to the date on which the center accepts the first enroUee at the 
center. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1015 
SEC. 154. INDUSTRY COUNCILS. 
29 USC 2894. 
(a) IN GENERAL.—^Each Job Corps center shall have an industry 
council, appointed by the director of the center after consultation 
with the Lieiison, in accordcince with procedures established by 
the Secretary. 
(b) INDUSTRY COUNCIL COMPOSITION.— 
(1) IN GENERAL.—^An industry council shall be comprised 
of— 
(A) a majority of members who shall be local and 
distant owners of business concerns, chief executives or 
chief operating officers of nongovernmental employers, or 
other private sector employers, who— 
(i) have substantial management, hiring, or policy 
responsibility; and 
(ii) 
represent 
businesses 
with 
emplo3rment 
opportunities that reflect the emplojmient opportuni-
ties of the applicable local area; 
(B) representatives of labor organizations (where 
present) and representatives of employees; and 
(C) enroUees and graduates of the Job Corps. 
(2) LOCAL BOARD.—^The industry council may include mem-
bers of the applicable local boards who meet the requirements 
described in paragraph (1). 
(c) RESPONSIBILITIES.—^The responsibilities of the industry 
council shall be— 
(1) to work closely with all applicable local boards in order 
to determine, and recommend to the Secretary, appropriate 
vocational tredning for the center; 
(2) to review all the relevant labor market information 
to— 
(A) determine the emplo3rment opportunities in the 
local areas in which the enroUees intend to seek employ-
ment after graduation; 
(B) determine the skills and education that are nec-
essary to obtain the employment opportunities; and 
(C) recommend to the Secretary the type of vocational 
training that should be implemented at the center to enable 
the enroUees to obtain the emplojmient opportunities; and 
(3) to meet at least once every 6 months to reevaluate 
the labor market information, and other relevant information, 
to determine, and recommend to the Secretary, any necessary 
changes in the vocational training provided at the center. 
(d) NEW CENTERS.—^The industry council for a Job Corps center 
that is not yet operating shall carry out the responsibilities 
described in subsection (c) at least 3 months prior to the date 
on which the center accepts the first enroUee at the center. 
SEC. 155. ADVISORY COMMITTEES. 
29 USC 2895. 
The Secretary may establish and use advisory committees in 
connection with the operation of the Job Corps program, and the 
operation of Job Corps centers, whenever the Secretary determines 
that the availability of outside advice and counsel on a regular 
basis would be of substantial benefit in identifying and overcoming 
problems, in planning program or center development, or in 
strengthening relationships between the Job Corps and agencies, 
institutions, or groups engaged in related activities. 
112 STAT. 1016 
PUBLIC LAW 105-220—AUG. 7, 1998 
29 use 2896. 
SEC. 156. EXPERIMENTAL, 
RESEARCH, 
AND 
DEMONSTRATION 
PROJECTS. 
The Secretary may carry out experimental, research, or dem-
onstration projects relating to carrying out the Job Corps program 
and may waive any provisions of this subtitle that the Secretary 
finds would prevent the Secretary from carrying out the projects. 
29 use 2897. 
SEC. 157. APPUCATION OF PROVISIONS OF FEDERAL LAW. 
(a) ENROLLEES NOT CONSIDERED TO B E FEDERAL EMPLOYEES.— 
(1) IN GENERAL.—Except as otherwise provided in this sub-
section £ind in section 8143(a) of title 5, United States Code, 
enrollees shall not be considered to be Federal employees and 
shall not be subject to the provisions of law relating to Federal 
emplo3nnent, including such provisions regarding hours of work, 
rates of compensation, leave, unemployment compensation, and 
Federal employee benefits. 
(2) PROVISIONS RELATING TO TAXES AND SOCIAL SECURITY 
BENEFITS.—^For purposes of the Internal Revenue Code of 1986 
and title II of the Social Security Act (42 U.S.C. 401 et seq.), 
enrollees shall be deemed to be employees of the United States 
and any service performed by an individual as an enroUee 
shall be deemed to be performed in the employ of the United 
States. 
(3) PROVISIONS RELATING TO COMPENSATION TO FEDERAL 
EMPLOYEES FOR WORK INJURIES.—For purposes of subchapter 
I of chapter 81 of title 5, United States Code (relating to 
compensation to Federal employees for work injuries), enrollees 
shall be deemed to be civil employees of the Government of 
the United States within the meaning of the term "employee" 
as defined in section 8101 of title 5, United States Code, and 
the provisions of such subchapter shall apply as specified in 
section 8143(a) of title 5, United States Code. 
(4) FEDERAL TORT CLAIMS PROVISIONS.—For purposes of 
the Federal tort claims provisions in title 28, United States 
Code, enrollees shall be considered to be employees of the 
Government. 
(b) ADJUSTMENTS AND SETTLEMENTS.—^Whenever the Secretary 
finds a claim for damages to a person or property resulting from 
the operation of the Job Corps to be a proper charge against 
the United States, and the claim is not cognizable under section 
2672 of title 28, United States Code, the Secretary may adjust 
and settle the claim in an amount not exceeding $1,500. 
(c) PERSONNEL OF THE UNIFORMED SERVICES.—Personnel of 
the uniformed services who are detailed or assigned to duty in 
the performance of agreements made by the Secretary for the sup-
port of the Job Corps shall not be counted in computing strength 
under any law limiting the strength of such services or in computing 
the percentage authorized by law for any grade in such services. 
29 use 2898. 
SEC. 158. SPECIAL PROVISIONS. 
(a) ENROLLMENT.—^The Secretary shall ensure that women and 
men have an equal opportunity to participate in the Job Corps 
program, consistent with section 145. 
(b) STUDIES, EVALUATIONS, PROPOSALS, AND DATA.—The Sec-
retary shall assure that all studies, evaluations, proposals, and 
data produced or developed with Federal funds in the course of 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1017 
canying out the Job Corps program shall become the property 
of the United States. 
(c) TRANSFER OF PROPERTY.— 
(1) IN GENERAL.—Notwithstanding title II of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 
481 et seq.) and any other provision of law, the Secretary 
and the Secretary of Education shall receive priority by the 
Secretary of Defense for the direct transfer, on a nonreimburs-
able basis, of the property described in paragraph (2) for use 
in carrying out programs under this Ad; or under any other 
Act. 
(2) PROPERTY.—^The property described in this paragraph 
is real and personal property under the control of the Depart-
ment of Defense that is not used by such Department, including 
property that the Secretary of Defense determines is in excess 
of current and projected requirements of such Department. 
(d) GROSS RECEIPTS.—^Transactions conducted by a private for-
profit or nonprofit entity that is an operator or service provider 
for a Job Corps center shall not be considered to be generating 
gross receipts. Such an operator or service provider shall not be 
liable, directly or indirectly, to any State or subdivision of a State 
(nor to any person acting on behalf of such a State or subdivision) 
for any gross receipts taxes, business privilege taxes measured 
by gross receipts, or any similar taxes imposed on, or measured 
by, gross receipts in connection with any pa3anents made to or 
by such entity for operating or providing services to a Job Corps 
center. Such an operator or service provider shall not be liable 
to any State or subdivision of a State to collect or pay any sales, 
excise, use, or similar tax imposed on the sale to or use by such 
operator or service provider of any property, service, or other item 
in connection with the operation of or provision of services to 
a Job Corps center. 
(e) MANAGEMENT FEE.—^The Secretary shall provide each opera-
tor and (in an appropriate case, as determined by the Secretary) 
service provider with an equitable and negotiated management 
fee of not less than 1 percent of the amount of the funding provided 
under the appropriate agreement specified in section 147. 
(f) DONATIONS.—^The Secretary may accept on behalf of the 
Job Corps or individual Job Corps centers charitable donations 
of cash or other assistance, including equipment and materials, 
if such donations are available for appropriate use for the purposes 
set forth in this subtitle. 
(g) SALE OF PROPERTY.—^Notwithstanding any other provision 
of law, if the Administrator of CJeneral Services sells a Job Corps 
center facility, the Administrator shall transfer the proceeds from 
the sale to the Secretary, who shall use the proceeds to carry 
out the Job Corps program. 
SEC. 159. MANAGEMENT INFORMATION. 
Procedures. 
29 use 2899 
(a) FiNANCLU. MANAGEMENT INFORMATION SYSTEM.— 
(1) IN GENERAL.—^The Secretary shall establish procedures 
to ensure that each operator, and each service provider, main-
tains a financial management information system that will 
provide— 
(A) accurate, complete, and current disclosures of the 
costs of Job Corps operations; and 
112 STAT. 1018 
PUBLIC LAW 105-220—AUG. 7, 1998 
(B) sufficient data for the effective evaluation of activi-
ties carried out through the Job Corps program. 
(2) ACCOUNTS.—^Each operator and service provider shall 
maintain funds received under this subtitle in accounts in 
a manner that ensures timely and accurate reporting as 
required by the Secretary. 
(3) FISCAL RESPONSIBILITY.—Operators shall remain fiscally 
responsible and control costs, regardless of whether the funds 
made available for Job Corps centers are incrementally 
increased or decreased between fiscal years. 
(b) AUDIT.— 
(1) ACCESS.—^The Secretary, the Inspector Greneral of the 
Department of Labor, the Comptroller General of the United 
States, and any of their duly authorized representatives, shall 
have access to any books, documents, papers, and records of 
the operators and service providers described in subsection 
(a) that are pertinent to the Job Corps program, for purposes 
of conducting surveys, audits, and evaluations of the operators 
and service providers. 
(2) SURVEYS, AUDITS, AND EVALUATIONS.—The Secretary 
shall survey, audit, or evaluate, or arrange for the survey, 
audit, or evaluation of, the operators and service providers, 
using Federal auditors or independent public accountants. The 
Secretary shall conduct such surveys, audits, or evaluations 
not less often than once every 3 years. 
(c) INFORMATION ON INDICATORS OF PERFORMANCE.— 
(1) ESTABLISHMENT.—^The Secretary shall, with continuity 
and consistency from year to year, establish indicators of 
performance, and expected levels of performance for Job Corps 
centers and the Job Corps program, relating to— 
(A) the number of graduates and the rate of such 
graduation, analyzed by t3T)e of vocational training received 
through the Job Corps program and by whether the voca-
tional training was provided by a local or national service 
provider; 
(B) the number of graduates who entered unsubsidized 
employment related to the vocational training received 
through the Job Corps program and the number who 
entered unsubsidized employment not related to the voca-
tional training received, analyzed by whether the vocational 
training was provided by a local or national service provider 
and by whether the placement in the employment was 
conducted by a local or national service provider; 
(C) the average wage received by graduates who 
entered unsubsidized employment related to the vocational 
training received through the Job Corps program and the 
average wage received by graduates who entered unsub-
sidized emplojrment unrelated to the vocational training 
received; 
(D) the average wage received by graduates placed 
in unsubsidized employment after completion of the Job 
Corps program— 
(i) on the first day of the employment; 
(ii) 6 months after the first day of the emplo3nnent; 
and 
(iii) 12 months after the first day of the employ-
ment, 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1019 
analyzed by t3rpe of vocational training received through 
the Job Corps program; 
(E) the number of graduates who entered unsubsidized 
employment and were retained in the unsubsidized employ-
ment— 
(i) 6 months after the first day of the emplo3nnent; 
and 
(ii) 12 months aft»r the first day of the employ-
ment; 
(F) the number of graduates who entered unsubsidized 
employment— 
(i) for 32 hours per week or more; 
(ii) for not less than 20 but less than 32 hours 
per week; and 
(iii) for less than 20 hours per week; 
(G) the number of graduates who entered post-
secondary education or advanced training programs, includ-
ing apprenticeship programs, as appropriate; and 
(H) the number of graduates who attained job 
readiness and employment skills. 
(2) PERFORMANCE OF RECRUITERS.—^The Secretary shall also 
establish performance measures, £ind expected performance lev-
els on the performance measures, for local and national recruit-
ment service providers serving the Job Corps program. The 
performance measures shall relate to the number of enroUees 
retained in the Job Corps program for 30 days and for 60 
days after initial placement in the program. 
(3) REPORT.—^The Secretary shall collect, and annually sub-
mit a report to the appropriate committees of Congress contain-
ing information on the performance of each Job Corps center, 
and the Job Corps program, on the core performance measures, 
as compared to the expected performance level for each perform-
ance measure. The report shsdl also contain information on 
the performance of the service providers described in paragraph 
(2) on the performance measures established under such para-
graph, as compared to the expected performsmce levels for 
the performance measures. 
(d) ADDITIONAL INFORMATION.—^The Secretary shall also collect, 
and submit in the report described in subsection (c), information 
on the performance of each Job Corps center, and the Job Corps 
program, regarding— 
(1) the number of enroUees served; 
(2) the average level of learning gains for graduates and 
former enroUees; 
(3) the number of former enroUees and graduates who 
entered the Armed Forces; 
(4) the number of former enroUees who entered post-
secondary education; 
(5) the number of former enroUees who entered unsub-
sidized employment related to the vocational training received 
through the Job Corps program and the number who entered 
unsubsidized emplo3anent not related to the vocational training 
received; 
(6) the number of former enroUees and graduates who 
obtained a secondary school diploma or its recognized equiva-
lent; 
112 STAT. 1020 
PUBLIC LAW 105-220—AUG. 7, 1998 
(7) the number and percentage of dropouts from the Job 
Corps program including the number dismissed under the zero 
tolerance policy described in section 152(b); and 
(8) any additional information required by the Secretary. 
(e) METHODS.—The Secretary may collect the information 
described in subsections (c) and (d) using methods described in 
section 136(f)(2) consistent with State law. 
(f) PERFORMANCE ASSESSMENTS AND IMPROVEMENTS.— 
(1) ASSESSMENTS.—^The Secretary shall conduct an annual 
assessment of the performance of each Job Corps center. Based 
on the assessment, the Secretary shall take measures to 
continuously improve the performance of the Job Corps pro-
gram. 
(2) PERFORMANCE IMPROVEMENT PLANS.—With respect to 
a Job Corps center that fails to meet the expected levels of 
performance relating to the core performance measures speci-
fied in subsection (c), the Secretary shall develop and implement 
a performance improvement plan. Such a plan shall require 
action including— 
(A) providing technical assistance to the center; 
(B) changing the vocational training offered at the 
center; 
(C) changing the management staff of the center; 
(D) replacing the operator of the center; 
(E) reducing the capacity of the center; 
(F) relocating the center; or 
(G) closing the center. 
(3) ADDITIONAL PERFORMANCE IMPROVEMENT PLANS.—^In 
addition to the performance improvement plans required under 
paragraph (2), the Secretary may develop and implement addi-
tional performance improvement plans. Such a plan shall 
require improvements, including the actions described in para-
graph (2), for a Job Corps center that fails to meet criteria 
established by the Secretary other than the expected levels 
of performance described in paragraph (2). 
(g) CLOSURE OF JOB CORPS CENTER.—^Prior to the closure of 
any Job Corps center, the Secretary shall ensure— 
Federal Register, 
(1) that the proposed decision to close the center is 
publication. 
announced in advance to the general public through publication 
in the Federal Register or other appropriate means; 
(2) the establishment of a reasonable comment period, not 
to exceed 30 days, for interested individuals to submit written 
comments to the Secretary; £ind 
(3) that the Member of Congress who represents the district 
in which such center is located is notified within a reasonable 
period of time in advance of any final decision to close the 
center. 
29 use 2900. 
SEC. 160. GENERAL PROVISIONS. 
The Secretary is authorized to— 
(1) disseminate, with regard to the provisions of section 
3204 of title 39, United States Code, data and information 
in such forms as the Secretary shall determine to be appro-
priate, to public agencies, private organizations, and the general 
public; 
(2) subject to section 157(b), collect or compromise all 
obligations to or held by the Secretary and exercise all legal 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1021 
or equitable rights accruing to the Secretary in connection 
with the pajrment of obHgations until such time as such obliga-
tions may be referred to the Attorney Greneral for suit or 
collection; and 
(3) expend funds made available for purposes of this sub-
title— 
(A) for printing and binding, in accordance with 
applicable law (including regulation); and 
(B) without regard to any other law (including regula-
tion), for rent of buildings and space in buildings and 
for repair, alteration, and improvement of buildings and 
space in buildings rented by the Secretary, except that 
the Secretary shall not expend funds under the authority 
of this subparagraph— 
(i) except when necessary to obtain an item, serv-
ice, or facility, that is required in the proper adminis-
tration of this subtitle, and that otherwise could not 
be obtained, or could not be obtained in the quantity 
or quality needed, or at the time, in the form, or 
under the conditions in which the item, service, or 
facility is needed; and 
(ii) prior to having given written notification to 
the Administrator of General Services (if the expendi-
ture would affect an activity that otherwise would be 
under the jurisdiction of the General Services Adminis-
tration) of the intention of the Secretary to make the 
expenditure, and the reasons and justifications for the 
expenditure. 
SEC. 161. AUTHORIZATION OF APPROPRIATIONS. 
29 USC 2901. 
There are authorized to be appropriated to carry out this sub-
title such sums as may be necessary for each of the fiscal years 
1999 through 2003. 
Subtitle D—National Programs 
SEC. 166. NATIVE AMERICAN PROGRAMS. 
29 USC 2911. 
(a) PURPOSE.— 
(1) IN GENERAL.—^The purpose of this section is to support 
employment and training activities for Indian, Alaska Native, 
and Native Hawaiian individuals in order— 
(A) to develop more fully the academic, occupational, 
and literacy skills of such individuals; 
(B) to make such individuals more competitive in the 
workforce; and 
(C) to promote the economic and social development 
of Indian, Alaska Native, and Native Hawaiian commu-
nities in accordance with the goals and values of such 
communities. 
(2) INDIAN POLICY.—^All programs assisted under this sec-
tion shall be administered in a manner consistent with the 
principles of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450 et seq.) and the govemment-
to-government relationship between the Federal Government 
and Indian tribal governments. 
(b) DEFINITIONS.—As used in this section: 
112 STAT. 1022 
PUBLIC LAW 105-220-~AUG. 7, 1998 
(1) ALASKA NATIVE.—The term "Alaska Native" means a 
Native as such term is defined in section 3(b) of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602(b)). 
(2) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANIZATION.—The 
terms "Indian", "Indian tribe", and "tribal organization" have 
the meanings given such terms in subsections (d), (e), and 
(1), respectively, of section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450b). 
(3) NATIVE HAWAIIAN AND NATIVE HAWAIIAN ORGANIZA-
TION.—The terms "Native Hawaiian" and "Native Hawaiian 
organization" have the meanings given such terms in para-
graphs (1) and (3), respectively, of section 9212 of the Native 
Hawaiian Education Act (20 U.S.C. 7912). 
(c) PROGRAM AUTHORIZED.— 
Grants. 
(1) IN GENERAL.—^The Secretary shall, on a competitive 
Contracts. 
basis, make grants to, or enter into contracts or cooperative 
agreements with, Indian tribes, tribal organizations, Alaska 
Native entities, Indian-controlled org£mizations serving Indians, 
or Native Hawaiian organizations to carry out the authorized 
activities described in subsection (d). 
(2) EXCEPTION.—^The competition for grants, contracts, or 
cooperative agreements conducted under paragraph (1) shall 
be conducted every 2 years, except that if a recipient of such 
a grant, contract, or agreement has performed satisfactorily, 
the Secretary may waive the requirements for such competition 
on receipt from the recipient of a satisfactory 2-year program 
plan for the succeeding 2-year period of the grant, contract, 
or agreement. 
(d) AUTHORIZED ACTIVITIES.— 
(1) IN GENERAL.—^Funds made available under subsection 
(c) shall be used to carry out the activities described in para-
graph (2) that— 
(A) are consistent with this section; and 
(B) are necessary to meet the needs of Indians or 
Native Hawaiians preparing to enter, reenter, or retain 
unsubsidized employment. 
(2) WORKFORCE INVESTMENT ACTIVITIES AND SUPPLEMENTAL 
SERVICES.— 
(A) IN GENERAL.—^Funds made available under sub-
section (c) shall be used for— 
(i) comprehensive workforce investment activities 
for Indians or Native Hawaiians; or 
(ii) supplemental services for Indian or Native 
Hawaiian youth on or near Indian reservations and 
in Oklahoma, Alaska, or Hawaii. 
(B) SPECIAL RULE.—^Notwithstanding any other provi-
sion of this section, individuals who were eligible to partici-
pate in programs under section 401 of the Job Training 
Partnership Act (29 U.S.C. 1671) (as such section was 
in effect on the day before the date of enactment of this 
Act) shall be eligible to participate in an activity assisted 
under this section. 
(e) PROGRAM PLAN.—In order to receive a grant or enter into 
a contract or cooperative agreement under this section an entity 
described in subsection (c) shall submit to the Secretary a program 
plan that describes a 2-year strategy for meeting the needs of 
^ 
«-W<5 feC.g'JEa#t.<SaBS«*'^'-W 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1023 
Indian, Alaska Native, or Native Hawaiian individuals, as appro-
priate, in the area served by such entity. Such plan shall— 
(1) be consistent with the purpose of this section; 
(2) identify the population to be served; 
(3) identify the education and emplo3mient needs of the 
population to be served £ind the manner in which the activities 
to be provided will strengthen the ability of the individuals 
served to obtain or retain unsubsidized emplojrment; 
(4) describe the activities to be provided and the manner 
in which such activities are to be integrated with other appro-
priate activities; and 
(5) describe, after the entity submitting the plan consults 
with the Secretary, the performance measures to be used to 
assess the performance of entities in carrying out the activities 
assisted under this section. 
(f) CONSOLIDATION OF FUNDS.—^Each entity receiving assistance 
under subsection (c) may consolidate such assistance with assistance 
received from related programs in accordance with the provisions 
of the Indian Employment, Training and Related Services Dem-
onstration Act of 1992 (25 U.S.C. 3401 et seq.). 
(g) NONDUPLICATIVE AND NONEXCLUSIVE SERVICES.—^Nothing 
in this section shall be construed— 
(1) to limit the eligibility of any entity described in sub-
section (c) to participate in any activity offered by a State 
or local entity under this Act; or 
(2) to preclude or discourage any agreement, between any 
entity described in subsection (c) and any State or local entity, 
to facilitate the provision of services by such entity or to the 
population served by such entity. 
(h) ADMINISTRATIVE PROVISIONS.— 
(1) 
ORGANIZATIONAL UNIT ESTABLISHED.—^The Secretary 
shall designate a single organizational unit within the Depart-
ment of Labor that shall have primary responsibility for the 
administration of the activities authorized under this section. 
(2) REGULATIONS.—^The Secretary shall consult with the 
entities described in subsection (c) in— 
(A) establishing regulations to carry out this section, 
including performance measures for entities receiving 
assistance under such subsection, taking into account the 
economic circumstances of such entities; and 
(B) developing a funding distribution plan that takes 
into consideration previous levels of funding (prior to the 
date of enactment of this Act) to such entities. 
(3) WAIVERS.— 
(A) IN GENERAL.—^With respect to an entity described 
in subsection (c), the Secretary, notwithstanding any other 
provision of law, may, pursuant to a request submitted 
Dy such entity that meets the requirements established 
under paragraph (2), waive any of the statutory or regu-
latory requirements of this title that are inconsistent with 
the specific needs of the entities described in such sub-
section, except that the Secretary may not waive require-
ments relating to wage and labor standards, worker rights, 
participation and protection of workers and participants, 
grievance procedures, and judicial review. 
(B) REQUEST AND APPROVAL,—An entity described in 
subsection (c) that requests a waiver under subparagraph 
112 STAT. 1024 
PUBLIC LAW 105-220—AUG. 7, 1998 
(A) shall submit a plan to the Secretary to improve the 
program of workforce investment activities carried out by 
the entity, which plan shall meet the requirements estab-
lished by the Secretary and shall be generally consistent 
with the requirements of section 189(i)(4)(B). 
Establishment. 
(4) ADVISORY COUNCIL.— 
(A) IN GENERAL.—^Using funds made available to carry 
out this section, the Secretary shall establish a Native 
American Employment and Training Council to facilitate 
the consultation described in paragraph (2). 
(B) COMPOSITION.—The Council shall be composed of 
individuals, appointed by the Secretary, who are represent-
atives of the entities described in subsection (c). 
(C) DUTIES.—^The Council shall advise the Secretary 
on all aspects of the operation and administration of the 
programs assisted under this section, including the selec-
tion of the individual appointed as the head of the unit 
established under paragraph (1). 
(D) PERSONNEL MATTERS.— 
(i) COMPENSATION OF MEMBERS.—Members of 
the 
Council shall serve without compensation. 
(ii) TRAVEL EXPENSES.—^The members of the Coun-
cil shall be allowed travel expenses, including per diem 
in lieu of subsistence, at rates authorized for employees 
of agencies under subchapter I of chapter 57 of title 
5, United States Code, while away from their homes 
or regular places of business in the performance of 
services for the Council. 
(iii) 
ADMINISTRATIVE 
SUPPORT.—The 
Secretary 
shall provide the Council with such administrative sup-
port as may be necessary to perform the functions 
of the Council. 
(E) CHAIRPERSON.—^The Council shall select a chair-
person from among its members. 
(F) MEETINGS.—The Council shall meet not less than 
twice each year. 
(G) APPLICATION.—Section 14 of the Federal Advisory 
Committee Act (5 U.S.C. App.) shgJl not apply to the Coun-
cil. 
(5) TECHNICAL ASSISTANCE.—^The Secretary, acting through 
the unit established under paragraph (1), is authorized to pro-
vide technical assistance to entities described in subsection 
(c) that receive assistance under subsection (c) to enable such 
entities to improve the activities authorized under this section 
that are provided by such entities. 
(6) 
AGREEMENT FOR 
CERTAIN FEDERALLY RECOGNIZED 
INDIAN TRIBES TO TRANSFER FUNDS TO THE PROGRAM.—^A feder-
ally recognized Indian tribe that administers funds provided 
under this section and funds provided by more than one State 
under other sections of this title may enter into an agreement 
with the Secretary and the Grovemors of the affected States 
to transfer the funds provided by the States to the program 
administered by the tribe under this section. 
(i) COMPLIANCE WITH SINGLE AUDIT REQUIREMENTS; RELATED 
REQUIREMENT.—Grants, contracts, and cooperative agreements 
entered into under this section shall be subject to the requirements 
of chapter 75 of subtitle V of title 31, United States Code (enacted 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1025 
by the Single Audit Act of 1984) and charging of costs under 
this section shall be subject to appropriate circulars issued by 
the Office of Management and Budget. 
(j) ASSISTANCE TO AMERICAN SAMOANS IN HAWAII.— 
(1) IN GENERAL.—^Notwithstanding any other provision of 
law, the Secretary is authorized to provide assistance to Amer-
ican Samoans who reside in Hawaii for the co-location of feder-
ally funded and State-funded workforce investment activities. 
(2) AUTHORIZATION OF APPROPRIATIONS.—^There are author-
ized to be appropriated for fiscal year 1999 such sums as 
may be necessary to carry out this subsection. 
SEC. 167. MIGRANT AND SEASONAL FARMWORKER PROGRAMS. 
Grants. 
(a) IN GENERAL.—^Every 2 years, the Secretary shall, on a 29USC2912. 
competitive basis, make grants to, or enter into contracts with, 
eligible entities to carry out the activities described in subsection 
(d). 
(b) ELIGIBLE ENTITIES.—^To be eligible to receive a grant or 
enter into a contract under this section, an entity shall have an 
understanding of the problems of eligible migrant and seasonal 
farmworkers (including dependents), a familiarity with the area 
to be served, and the ability to demonstrate a capacity to administer 
effectively a diversified program of workforce investment activities 
(including youth activities) and related assistance for eligible 
migrant and seasonal farmworkers. 
(c) PROGRAM PLAN.— 
(1) IN GENERAL,—^To be eligible to receive a grant or enter 
into a contract under this section, an entity described in sub-
section (b) shedl submit to the Secretary a plan that describes 
a 2-year strategy for meeting the needs of eligible migrant 
and seasonal farmworkers in the area to be served by such 
entity. 
(2) CONTENTS.—Such plan shall— 
(A) identify the education and employment needs of 
the population to be served Eind the manner in which 
the services to be provided will strengthen the ability of 
the eligible migrant and seasonal farmworkers and depend-
ents to obtain or retain unsubsidized emplojrment or sta-
bilize their unsubsidized employment; 
(B) describe the related assistance and supportive serv-
ices to be provided and the manner in which such assist-
ance and services are to be integrated and coordinated 
with other appropriate services; and 
(C) describe the indicators of performance to be used 
to assess the performance of such entity in carrying out 
the activities assisted under this section. 
(3) ADMINISTRATION.—Grants and contracts awarded under 
this section shall be centrally administered by the Department 
of Labor and competitively awarded by the Secretary using 
procedures consistent with standard Federal 
Government 
competitive procurement policies. 
(4) COMPETITION.— 
(A) IN GENERAL.—^The competition for grants made 
and contracts entered into under this section shall be con-
ducted every 2 years. 
112 STAT. 1026 
PUBLIC LAW 105-220—AUG. 7, 1998 
(B) EXCEPTION.—^Notwithstanding subparagraph (A), if 
a recipient of such a grant or contract has performed satis-
factorily under the terms of the grant agreement or con-
tract, the Secretary may waive the requirement for such 
competition for such recipient upon receipt from the recipi-
ent of a satisfactory 2-year plan described in paragraph 
(1) for the succeeding 2-year grant or contract period. The 
Secretary may exercise the waiver authority of the preced-
ing sentence not more than once during any 4-year period 
with respect to any single recipient. 
(d) AUTHORIZED ACTIVITIES.—^Funds made available under this 
section shall be used to carry out workforce investment activities 
(including youth activities) and provide related assistance for 
eligible migrant and seasonal farmworkers, which may include 
employment, training, educational assistance, literacy assistance, 
an English language program, worker safety training, housing, 
supportive services, dropout prevention activities, foUowup services 
for those individuals placed in employment, self-emplojrment and 
related business enterprise development education as needed by 
eligible migrant and seasonal farmworkers and identified pursuant 
to the plan required by subsection (c), and technical assistance 
relating to capacity enhancement in such areas as management 
information technology. 
(e) CONSULTATION WITH GOVERNORS AND LOCAL BOARDS.—In 
making grants and entering into contracts under this section, the 
Secretary shall consult with the Governors and local boards of 
the States in which the eligible entities will carry out the activities 
described in subsection (d). 
(f) REGULATiONS.^The Secretary shall consult with eligible 
migrant and seasonal farmworkers groups and States in establish-
ing regulations to carry out this section, including performance 
measures for eligible entities that take into account the economic 
circumstances and demographics of eligible migrant and seasonal 
farmworkers. 
(g) COMPLIANCE WITH SINGLE AUDIT REQUIREMENTS; RELATED 
REQUIREMENT.—Grants and contracts entered into under this sec-
tion shall be subject to the requirements of chapter 75 of subtitle 
V of title 31, United States Code (enacted by the Single Audit 
Act of 1984) and charging of costs under this section shall be 
subject to appropriate circulars issued by the Office of Management 
and Budget. 
(h) DEFINITIONS.—In this section: 
(1) DISADVANTAGED.—^The term "disadvantaged", used with 
respect to a farmworker, means a farmworker whose income, 
for 12 consecutive months out of the 24 months prior to applica-
tion for the program involved, does not exceed the higher of— 
(A) the poverty line (as defined in section 334(aX2XB)) 
for an equivalent period; or 
(B) 70 percent of the lower living standard income 
level, for an equivalent period. 
(2) ELIGIBLE MIGRANT AND SEASONAL FARMWORKERS.—The 
term "eligible migrant and seasonal farmworkers" means 
individuals who are eligible migrant farmworkers or are eligible 
seasonal farmworkers. 
(3) EUGIBLE MIGRANT FARMWORKER.-The term "eligible 
migrant farmworker^ means— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1027 
(A) an eligible seasonal farmworker described in para-
graph (4)(A) whose agricultural labor requires travel to 
a job site such that the farmworker is unable to return 
to a permanent place of residence within the same day; 
and 
(B) a dependent of the farmworker described in 
subparagraph (A). 
(4) ELIGIBLE SEASONAL FARMWORKER.—^The term "eligible 
seasonal farmworker" means— 
(A) a disadvantaged person who, for 12 consecutive 
months out of the 24 months prior to application for the 
program involved, has been primarily employed in agricul-
tural labor that is characterized by chronic unemplojonent 
or underemplo3niient; and 
(B) a dependent of the person described in subpara-
graph (A). 
SEC. 168. VETERANS' WORKFORCE INVESTMENT PROGRAMS. 
Grants. 
(a) AUTHORIZATION.— 
29 USC^?913. 
(1) IN GENERAL.—^The Secretary shall conduct, directly or 
through grants or contracts, programs to meet the needs for 
workforce investment activities of veterans with service-con-
nected disabilities, veterans who have significant barriers to 
emplo3anent, veterans who served on active duty in the armed 
forces during a war or in a campaign or expedition for which 
a campaign badge has been authorized, and recently separated 
veterans. 
(2) CONDUCT OF PROGRAMS.—^Programs supported under 
this section may be conducted through grants and contracts 
with public agencies and private nonprofit organizations, 
including recipients of Federal assistance under other provi-
sions of this title, that the Secretary determines have an under-
standing of the unemplojonent problems of veterans described 
in paragraph (1), familiarity with the Eirea to be served, and 
the capability to administer effectively a program of workforce 
investment activities for such veterans. 
(3) REQUIRED ACTIVITIES.—Programs supported under this 
section shall include— 
(A) activities to enhance services proyided to veterans 
by other providers of workforce investment activities funded 
by Federal, State, or IOCEQ government; 
(B) activities to provide workforce investment activities 
to such veterans that are not adequately provided by other 
public providers of workforce investment activities; and 
(C) outreach and public information activities to 
develop £ind promote maximum job and job training 
opportunities for such veterans and to inform such veterans 
about emplojonent, job training, on-the-job training and 
educational opportunities under this title, under title 38, 
United States Code, and under other provisions of law, 
which activities shall be coordinated with activities pro-
vided through the one-stop centers described in section 
134(c). 
(b) ADMINISTRATION OF PROGRAMS.— 
(1) IN GENERAL.—^The Secretary shall administer programs 
supported under this section through the Assistant Secretary 
for Veterans' Employment and Training. 
112 STAT. 1028 
PUBLIC LAW 105-220--AUG. 7, 1998 
(2) ADDITIONAL RESPONSIBILITIES.—^In carrying out respon-
sibilities under this section, the Assistant Secretary for Veter-
ans' Employment and Training shall— 
(A) be responsible for the awarding of grants and con-
tracts and the distribution of funds under this section 
and for the establishment of appropriate fiscal controls, 
accountability, and program performance measures for 
recipients of grants and contracts under this section; and 
(B) consult with the Secretary of Veterans Affairs and 
take steps to ensure that programs supported under this 
section are coordinated, to the maximum extent feasible, 
with related programs and activities conducted under title 
38, United States Code, including programs and activities 
conducted under subchapter II of chapter 77 of such title, 
chapters 30, 31, 32, and 34 of such title, and sections 
1712A, 1720A, 3687, and 4103A of such title. 
29 use 2914. 
SEC. 169. YOUTH OPPORTUNrry GRANTS. 
(a) GRANTS.— 
(1) IN GENERAL.—^Using funds made available under section 
127(b)(1)(A), the Secretary shall make grants to eligible local 
boards and eligible entities described in subsection (d) to pro-
vide activities described in subsection (b) for youth to increase 
the long-term emplojrment of youth who live in empowerment 
zones, enterprise communities, and high poverty areas and 
who seek assistance. 
(2) DEFINITION.—^In this section, the term "youth" mesins 
an individual who is not less than age 14 and not more than 
age 21. 
(3) GRANT PERIOD.—^The Secretary may make a grant under 
this section for a 1-year period, and may renew the grant 
for each of the 4 succeeding years. 
(4) GRANT AWARDS.—^In making grants under this section, 
the Secretary shall ensure that grants are distributed equitably 
among local boards and entities serving urban areas and local 
boards and entities serving rural areas, taking into consider-
ation the poverty rate in such urban and rural areas, as 
described in subsection (c)(3)(B). 
(b) USE OF FUNDS.— 
(1) IN GENERAL.—A local board or entity that receives a 
grant under this section shall use the funds made available 
through the grant to provide activities that meet the require-
ments of section 129, except as provided in paragraph (2), 
as well as youth development activities such as activities relat-
ing to leadership development, citizenship, and community serv-
ice, and recreation activities. 
(2) INTENSIVE PLACEMENT AND FOLLOWUP SERVICES.—In 
providing activities under this section, a local board or entity 
shall provide— 
(A) intensive placement services; and 
(B) followup services for not less than 24 months after 
the completion of participation in the other activities 
described in this subsection, as appropriate. 
(c) ELIGIBLE LOCAL BOARDS.—^To be eligible to receive a grant 
under this section, a local board shall serve a community that— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1029 
(1) has been designated as an empowerment zone or enter-
prise community under section 1391 of the Internal Revenue 
Code of 1986; 
(2)(A) is a State without a zone or community described 
in paragraph (1); and 
(B) has been designated as a high poverty area by the 
Governor of the State; or 
(3) is 1 of 2 areas in a State that— 
(A) have been designated by the Governor as areas 
for which a local board may apply for a grant under this 
section; and 
(B) meet the poverty rate criteria set forth in sub-
sections (a)(4), (b), and (d) of section 1392 of the Internal 
Revenue Code of 1986. 
(d) ELIGIBLE ENTITIES.—^To be eligible to receive a grant under 
this section, an entity (other than a local board) shall— 
(1) be a recipient of financial assistance under section 
166; and 
(2) serve a community that— 
(A) meets the poverty rate criteria set forth in sub-
sections (a)(4), (b), and (d) of section 1392 of the Internal 
Revenue Code of 1986; and 
(B) is located on an Indian reservation or serves Okla-
homa Indians or Alaska Native villapjes or Native groups 
(as such terms are defined in section 3 of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602)). 
(e) APPLICATION.—^To be eligible to receive a grant under this 
section, a local board or entity shall submit an application to the 
Secretary at such time, in such manner, and containing such 
information as the Secretary may require, including— 
(1) a description of the activities that the local board or 
entity will provide under this section to youth in the community 
described in subsection (c); 
(2) a description of the performance measures negotiated 
under subsection (f), and the manner in which the local boards 
or entities will cany out the activities to meet the performance 
measures; 
(3) a description of the manner in which the activities 
will be linked to activities described in section 129; and 
(4) a description of the community support, including finan-
cial support through leveraging additionsJ public and private 
resources, for the activities. 
(f) PERFORMANCE MEASURES.— 
(1) IN GENERAL.—^The Secretary shall negotiate and reach 
agreement with the local board or entity on performsince meas-
ures for the indicators of performance referred to in subpara-
graphs (A) and (B) of section 136(b)(2) that will be used to 
evaluate the performance of the local board or entity in carrying 
out the activities described in subsection (b). Each locsQ 
performance measure shall consist of such a indicator of 
performance, and a performance level referred to in paragraph 
(2). 
(2) PERFORMANCE LEVELS.—The Secretary shall negotiate 
and reach agreement with the local board or entity regarding 
the levels of performance expected to be achieved by the locm 
board or entity on the indicators of performance. 
(g) ROLE MODEL ACADEMY PROJECT.— 
112 STAT. 1030 
PUBLIC LAW 105-220—AUG. 7, 1998 
(1) IN GENERAL.—^Using the funds made available pursuant 
to section 127(b)(l)(A)(iv) for fiscal year 1999, the Secretary 
shall provide assistance to an entity to carry out a project 
establishing a role model academy for out-of-school youth. 
(2) RESIDENTIAL CENTER.—The entity shall use the assist-
ance to establish an academy that consists of a residential 
center located on the site of a military installation closed or 
realigned pursuant to a law providing for closures and realign-
ments of such insteillations. 
(3) SERVICES.—^The academy established pursuant to this 
subsection shall provide services that— 
(A) utilize a military style model that emphasizes 
leadership skills and discipline, or another model of dem-
onstrated effectiveness; ana 
(B) include vocational training, secondary school course 
work leading to a secondary school diploma or recognized 
equivalent, and the use of mentors who serve as role models 
and who provide academic training and career counseling 
to the youth. 
29 use 2915. 
SEC. 170. TECHNICAL ASSISTANCE. 
(a) GENERAL TECHNICAL ASSISTANCE.— 
(1) IN GENERAL.—^The Secretary shall provide, coordinate, 
and support the development of, appropriate training, technical 
assistance, staff development, and otner activities, including 
assistance in replicating programs of demonstrated effective-
ness, to States and localities, and, in particular, to assist States 
in making transitions from carrying out activities under the 
provisions of law repealed under section 199 to carry out activi-
ties under this title. 
(2) FORM OF ASSISTANCE.—^In canying out paragraph (1) 
on behalf of a State, or recipient of financial assistance under 
any of sections 166 through 169, the Secretary, after consulta-
tion with the State or grant recipient, may award grants and 
enter into contracts and cooperative agreements. 
(3) LIMITATION.—Grants or contracts awarded under para-
graph (1) to entities other than States or local units of govern-
ment that are for amounts in excess of $100,000 shall only 
be awarded on a competitive basis, 
(b) DISLOCATED WORKER TECHNICAL ASSISTANCE.— 
(1) AUTHORITY.—Of the amounts available pursuant to sec-
tion 132(a)(2), the Secretary shall reserve not more than 5 
percent of such amounts to provide technical assistance to 
States that do not meet the State performance measures 
described in section 136 with respect to emplojrment and train-
ing activities for dislocated workers. Using such reserved funds, 
the Secretary may provide such assistance to other States, 
local areas, and other entities involved in providing assistance 
to dislocated workers, to promote the continuous improvement 
of assistance provided to dislocated workers, under this title. 
(2) TRAINING.—^Amounts reserved under this subsection 
may be used to provide for the training of staff, including 
specialists, who provide rapid response services. Such trmning 
shall include instruction in proven methods of promoting, 
establishing, and assisting labor-management committees. Such 
projects shall be administered through the dislocated worker 
office described in section 174(b). 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1031 
SEC. 171. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH, AND 
MULTISTATE PROJECTS. 
(a) STRATEGIC PLAN.— 
(1) IN GENERAL.—After consultation with States, localities, 
and other interested parties, the Secretary shall, every 2 years, 
publish in the Federal Register, a plan that describes the 
demonstration and pilot (including dislocated worker dem-
onstration and pilot), multiservice, research, and multistate 
project priorities of the Department of Labor concerning employ-
ment and training for the 5-year period following the submis-
sion of the plan. Copies of the plan shall be transmitted to 
the appropriate committees of Congress. 
(2) FACTORS.—^The plan pubUshed under paragraph (1) 
shall contain strategies to address national emplojonent and 
training problems and take into account factors such as— 
(A) the availability of existing research (as of the date 
of the publication); 
(B) the need to ensure results that have interstate 
validity; 
(C) the benefits of economies of scale and the efficiency 
of proposed projects; and 
(D) the likelihood that the results of the projects will 
be useful to policymakers and stakeholders in addressing 
employment and training problems, 
(b) DEMONSTRATION AND PILOT PROJECTS.— 
(1) IN GENERAL.—^Under a plan published under subsection 
(a), the Secretary shall, through grants or contracts, carry 
out demonstration and pilot projects for the purpose of develop-
ing and implementing techniques and approaches, and dem-
onstrating the effectiveness of specialized methods, in address-
ing employment and training needs. Such projects shall include 
the provision of direct services to individuals to enhance 
emplo3anent opportunities and an evaluation component and 
may include— 
(A) the establishment of advanced msinufacturing tech-
nology skill centers developed through local partnerships 
of industry, labor, education, community-based organiza-
tions, and economic development organizations to meet 
unmet, high-tech skill needs of local communities; 
(B) projects that provide training to upgrade the skills 
of employed workers who reside and are employed in enter-
prise communities or empowerment zones; 
(C) progrsuns conducted jointly with the Department 
of Defense to develop training programs utilizing computer-
based and other innovative learning technologies; 
(D) projects that promote the use of distance learning, 
enabling students to take courses through the use of media 
technology such as videos, teleconferencing computers, and 
the Internet; 
(E) projects that assist in providing comprehensive 
services to increase the employment rates of out-of-school 
youth residing in targeted high poverty areas within 
empowerment zones and enterprise communities; 
(F) the establishment of partnerships witii national 
oi^anizations with special expertise in developing, organiz-
ing, and £ulministering employment and training services. 
29 use 2916. 
Federal Register, 
publication. 
Grants. 
Contracts. 
112 STAT. 1032 
PUBLIC LAW 105-220—AUG. 7, 1998 
. 
for individuals with disabilities, at the national, State, 
and local levels; 
(G) projects to assist public housing authorities that 
provide, to public housing residents, job tredning programs 
that demonstrate success in upgrading the job skills and 
promoting employment of the residents; and 
(H) projects that assist local areas to develop and 
implement local self-sufficiency standards to evaluate the 
degree to which participants in programs under this title 
are achieving self-sufficiency. 
(2) LIMITATIONS.— 
(A) 
COMPETITIVE 
AWARDS.—Grants 
or 
contracts 
awarded for carrying out demonstration and pilot projects 
under this subsection shall be awarded only on a competi-
tive basis, except that a noncompetitive award may be 
made in the case of a project that is funded jointly with 
other public or private sector entities that provide a portion 
of the funding for the project. 
(B) ELIGIBLE ENTITIES.—Grants or contracts may be 
awarded under this subsection only to— 
(i) entities with recognized expertise in— 
(I) conducting national demonstration projects; 
(II) utilizing state-of-the-art 
demonstration 
methods; or 
(III) conducting evaluations of workforce 
investment projects; or 
(ii) State and local entities with expertise in 
operating or overseeing workforce investment pro-
grams. 
(C) TIME LIMITS.—^The Secretary shall establish appro-
priate time limits for canying out demonstration and pilot 
projects under this subsection. 
Grants. 
(c) 
MULTISERVICE 
PROJECTS, 
RESEARCH 
PROJECTS, 
AND 
Contracts. 
MULTISTATE PROJECTS.— 
(1) MULTISERVICE PROJECTS.—^Under a plan published 
under subsection (a), the Secretary shall, through grants or 
contracts, carry out multiservice projects— 
(A) that will test £in array of approaches to the provi-
sion of employment and training services to a variety of 
targeted populations; 
(B) in which the entity carrying out the project, in 
conjunction with employers, organized labor, and other 
groups such as the disability community, will design, 
develop, and test various training approaches in order to 
determine effective practices; and 
(C) that will assist in the development and replication 
of effective service delivery strategies for targeted popu-
lations for the national employment and training system 
as a whole. 
(2) RESEARCH PROJECTS.— 
(A) IN GENERAL.—^Under a plan published under sub-
section (a), the Secretary shall, through grants or contracts, 
carry out research projects that will contribute to the solu-
tion of employment and training problems in the United 
States. 
(B) FORMULA IMPROVEMENT STUDY AND REPORT.— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1033 
(i) STUDY.—^The Secretary shall conduct a 2-year 
study 
concerning improvements in the formulas 
described in section 132(b)(1)(B) and paragraphs (2)(A) 
and (3) of section 133(b) (regarding distributing funds 
under subtitle B to States and local areas for adult 
emplo3anent £ind training activities). In conducting the 
study, the Secretary shall examine means of improving 
the formulas by— 
(I) developing formulas based on statistically 
reliable data; 
(II) developing formulas that are consistent 
with the goals and objectives of this title; and 
(III) developing formulas based on organiza-
tional and financial stability of State boards and 
local boards. 
(ii) REPORT.—^The Secretary shall prepare and 
submit to Congress a report containing the results 
of the study, including recommendations for improved 
formulas. 
(3) MULTISTATE PROJECTS.— 
(A) IN GENERAL.— 
(i) AUTHORITY.—^Under a plan published under 
subsection (a), the Secretary may, through grants or 
contracts, carry out multistate projects that require 
demonstrated expertise that is available at the national 
level to effectively disseminate best practices and mod-
els for implementing employment and training serv-
ices, address the specialized employment and training 
needs of particular service populations, or address 
industry-wide skill shortages. 
(ii) 
DESIGN OF GRANTS.—Grants or 
contracts 
awarded under this subsection shall be designed to 
obtain information relating to the provision of services 
under different economic conditions or to various demo-
graphic groups in order to provide guidance at the 
national and State levels about how best to administer 
specific employment and training services. 
(4) LIMITATIONS.— 
(A) 
COMPETITIVE 
AWARDS.—Grants 
or 
contracts 
awarded for carrying out projects under this subsection 
in amounts that exceed $100,000 shall be awarded only 
on a competitive basis, except that a noncompetitive award 
may be made in the case of a project that is funded jointly 
with other public or private sector entities that provide 
a substantial portion of assistance under the grant or con-
tract for the project. 
(B) TIME LIMITS.—A grant or contract shall not be 
awarded under this subsection to the same organization 
for more than 3 consecutive years unless such grant or 
contract is competitively reevaluated within such period. 
(C) PEER REVIEW.— 
(i) IN GENERAL.—^The Secretary shall utilize a peer 
review process— 
(I) to review and evaluate all applications for 
grants in amounts that exceed $500,000 that are 
submitted under this section; and 
112 STAT. 1034 
PUBLIC LAW 105-220—AUG. 7, 1998 
(II) to review and designate exemplary and 
promising programs under this section, 
(ii) AVAILABILITY OF FUNDS.—The Secretary 
is 
authorized to use funds provided under this section 
to carry out peer review activities under this subpara-
graph. 
(D) PRIORITY.—In awarding grants or contracts under 
this subsection, priority shall be provided to entities with 
nationally recognized expertise in the methods, techniques, 
and knowledge of workforce investment activities and shall 
include appropriate time limits, established by the Sec-
retary, for the duration of such projects, 
(d) DISLOCATED WORKER PROJECTS.—Of the amount made 
available pursuant to section 132(a)(2XA) for any program year, 
the Secretary shall use not more than 10 percent of such amount 
to carry out demonstration and pilot projects, multiservice projects, 
and multistate projects, relating to the employment and training 
needs of dislocated workers. Of the requirements of this section, 
such projects shall be subject only to the provisions relating to 
review and evaluation of applications under subsection (c)(4)(C). 
Such projects may include demonstration and pilot projects relating 
to promoting self-emplojnnent, promoting job creation, averting dis-
locations, assisting dislocated farmers, assisting dislocated fisher-
men, and promoting public works. Such projects shall be adminis-
tered through the dislocated worker office described in section 
173(b). 
29 use 2917. 
SEC. 172. EVALUATIONS. 
(a) 
PROGRAMS AND ACTIVITIES CARRIED OUT UNDER 
THIS 
TITLE.—^For the purpose of improving the management 
and 
effectiveness of programs and activities carried out under this title, 
the Secretary shall provide for the continuing evaluation of the 
programs and activities, including those programs and activities 
carried out under section 171. Such evaluations shall address— 
(1) the general effectiveness of such programs and activities 
in relation to their cost, including the extent to which the 
programs and activities— 
(A) improve the emplo3anent competencies of partici-
pants in comparison to comparably-situated individuals 
who did not participate in such programs and activities; 
and 
(B) to the extent feasible, increase the level of total 
employment over the level that would have existed in the 
absence of such programs and activities; 
(2) the effectiveness of the performance measures relating 
to such programs and activities; 
(3) the effectiveness of the structure and mechanisms for 
delivery of services through such programs and activities; 
(4) the impact of the programs and activities on the commu-
nity and partieipants involved; 
(5) the impact of such programs and activities on related 
programs and activities; 
(6) the extent to which such programs and activities meet 
the needs of various demographic groups; and 
(7) such other factors as may be appropriate. 
- • B l i ^ S * * ' ' 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1035 
(b) OTHER PROGRAMS AND ACTIVITIES.—The Secretary may con-
duct evaluations of other federally funded employment-related pro-
grams and activities under other provisions of law. 
(c) TECHNIQUES.—Evaluations conducted under this section 
shall utilize appropriate methodology and research designs, includ-
ing the use of control groups chosen by scientific random assignment 
methodologies. The Secretary shall conduct as least 1 multisite 
control group evaluation under this section by the end of fiscal 
year 2005. 
(d) REPORTS.—^The entity carrying out £in evaluation described 
in subsection (a) or (b) shall prepare and submit to the Secretary 
a draft report and a final report containing the results of the 
evaluation. 
(e) REPORTS TO CONGRESS.—Not later than 30 days after the Deadlines, 
completion of such a draft report, the Secretary shall transmit 
the draft report to the Committee on Education and the Workforce 
of the House of Representatives and the Committee on Labor and 
Human Resources of the Senate. Not later than 60 days after 
the completion of such a final report, the Secretary shall transmit 
the final report to such committees of the Congress. 
(f) COORDINATION.—^The Secretary shall ensure the coordina-
tion of evaluations carried out by States pursuant to section 136(e) 
with the evaluations carried out under this section. 
SEC. 173. NATIONAL EMERGENCY GRANTS. 
29 USC 2918. 
(a) IN GENERAL.—^The Secretary is authorized to award national 
emergency grants in a timely msmner— 
(1) to an entity described in subsection (c) to provide 
emplo5mient and training assistance to workers affected by 
major economic dislocations, such as plant closures, mass lay-
offs, or closures and realignments of military installations; 
(2) to provide assistance to the Governor of any State 
within the boundaries of which is an area that has suffered 
an emergency or a major disaster as defined in paragraphs 
(1) and (2), respectively, of section 102 of the Robert T. Stafford 
Disaster Relief £ind Emergency Assistance Act (42 U.S.C. 5122 
(1) and (2)) (referred to in this section as the "disaster area") 
to provide disaster relief employment in the area; and 
(3) to provide additional assistance to a State or local 
board for eligible dislocated workers in a case in which the 
State or local board has expended the funds provided under 
this section to carry out activities described in paragraphs 
(1) and (2) and can demonstrate the need for additional funds 
to provide appropriate services for such workers, in accordance 
with requirements prescribed by the Secretary. 
(b) ADMINISTRATION.—^The Secretary shall designate a dis-
located worker office to coordinate the functions of the Secretary 
under this title relating to emplo5anent and training activities for 
dislocated workers, including activities carried out under the 
national emergency grants. 
(c) EMPLOYMENT AND TRAINING ASSISTANCE REQUIREMENTS.— 
(1) GRANT RECIPIENT ELIGIBILITY.— 
(A) APPLICATION.—^To be eligible to receive a grant 
under subsection (a)(1), an entity shall submit an applica-
tion to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. 
112 STAT. 1036 
PUBLIC LAW 105-220—AUG, 7, 1998 
Publication. 
(B) ELIGIBLE ENTITY.—In this paragraph, the term 
"entity" means a State, a local board, an entity described 
in section 166(c), entities determined to be eligible by the 
Grovemor of the State involved, and other entities that 
demonstrate to the Secretary the capability to effectively 
respond to the circumstances relating to particular disloca-
tions. 
(2) PARTICIPANT ELIGIBILITY.— 
(A) IN GENERAL.—In order to be eligible to receive 
emplojonent and training assistance under a national emer-
gency grant awarded pursuant to subsection (a)(1), an 
individual shall be— 
(i) a dislocated worker; 
(ii) a civilian employee of the Department of 
Defense or the Department of Energy employed at 
a military installation that is being closed, or that 
will undergo realignment, within the next 24 months 
after the date of the determination of eligibility; 
(iii) an individual who is employed in a nonmana-
gerial position with a Department of Defense contrac-
tor, who is determined by the Secretary of Defense 
to be at-risk of termination from emplo3rment as a 
result of reductions in defense expenditures, and whose 
employer is converting operations from defense to non-
defense applications in order to prevent worker layoffs; 
or 
(iv) a member of the Armed Forces who— 
(I) was on active duty or full-time National 
Guard duty; 
(II)(aa) is involuntarily separated (as defined 
in section 1141 of title 10, United States Code) 
from active duty or full-time National Guard duty; 
or 
(bb) is separated from active duty or full-time 
National Guard duty pursuant to a special separa-
tion benefits program under section 1174a of title 
10, United States Code, or the voluntary separa-
tion incentive program under section 1175 of that 
title; 
(III) is not entitled to retired or retained pay 
incident to the separation described in subclause 
(II); and 
(IV) applies for such employment and training 
assistance before the end of the 180-day period 
beginning on the date of that separation. 
(B) 
RETRAINING 
ASSISTANCE.—The 
individuals 
described in subparagraph (A)(iii) shall be eligible for 
retraining assistance to upgrade skills by obtaining market-
able skills needed to support the conversion described in 
subparagraph (A)(iii). 
(C) ADDITIONAL REQUIREMENTS.—The Secretary shall 
establish and publish additional requirements related to 
eligibility for employment and training assistance under 
the national emergency grants to ensure effective use of 
the funds available for this purpose. 
(D) DEFINITIONS.—In this paragraph, the terms "mili-
tary institution" and "realignment" have the meanings 
PUBLIC LAW 105-220--AUG. 7, 1998 
112 STAT. 1037 
given the terms in section 2910 of the Defense Base Closure 
and Realignment Act of 1990 (Public Law 101-510; 10 
U.S.C. 2687 note), 
(d) 
DISASTER 
RELIEF 
EMPLOYMENT ASSISTANCE REQUIRE-
MENTS.— 
(1) IN GENERAL.—^Funds made available under subsection 
(a)(2)-
(A) shall be used to provide disaster relief emplo3rment 
on projects that provide food, clothing, shelter, and other 
humanitarian assistance for disaster victims, and projects 
regarding demolition, cleaning, repair, renovation, and 
reconstruction of damaged and destroyed structures, facili-
ties, £Lnd lands located within the disaster area; 
(B) may be expended through public and private agen-
cies and organizations engaged in such projects; and 
(C) may be expended to provide emplo3anent and train-
ing activities. 
(2) ELIGIBILITY.—An individual shall be eligible to be 
offered disaster relief employment under subsection (a)(2) if 
such individual is a dislocated worker, is a 
long-term 
unemployed individual, or is temporarily or permanently laid 
off as a consequence of the disaster. 
(3) LIMITATIONS ON DISASTER RELIEF EMPLOYMENT.—^No 
individual shall be employed under subsection (a)(2) for more 
than 6 months for work related to recovery from a single 
natural disaster. 
SEC. 174. AUTHORIZATION OF APPROPRIATIONS. 
29USC2919. 
(a) 
NATIVE AMERICAN PROGRAMS; MIGRANT AND SEASONAL 
FARMWORKER 
PROGRAMS; VETERANS' WORKFORCE INVESTMENT 
PROGRAMS.— 
(1) IN GENERAL.—Subject to pareigraph (2), there are 
authorized to be appropriated to carry out sections 166 through 
168 such sums as may be necessary for each of the fiscal 
years 1999 through 2003. 
(2) RESERVATIONS.—Of the amount appropriated pursuant 
to the authorization of appropriations under paragraph (1) for 
a fiscal year, the Secretary shall— 
(A) reserve not less than $55,000,000 for carrying out 
section 166; 
(B) reserve not less than $70,000,000 for carrying out 
section 167; and 
(C) reserve not less than $7,300,000 for carrying out 
section 168. 
(b) 
TECHNICAL 
ASSISTANCE; 
DEMONSTRATION 
AND 
PILOT 
PROJECTS; EVALUATIONS; INCENTIVE GRANTS.— 
(1) IN GENERAL.—Subject to paragraph (2), there are 
authorized to be appropriated to carry out sections 170 through 
172 and section 503 such sums as may be necessary for each 
of the fiscal years 1999 through 2003. 
(2) RESERVATIONS.—Of the amount appropriated pursuant 
to the authorization of appropriations under paragraph (1) for 
a fiscal year, the Secretary shall— 
(A)(i) for fiscal year 1999, reserve up to 40 percent 
for canying out section 170 (other than subsection (b) 
of such section); 
112 STAT. 1038 
PUBLIC LAW 105-220—AUG. 7, 1998 
(ii) for fiscal year 2000, reserve up to 25 percent for 
carrjdng out section 170 (other than subsection (b) of such 
section); and 
(iii) for each of the fiscal years 2001 through 2003, 
reserve up to 20 percent for carrying out section 170 (other 
than subsection (b) of such section); 
(B)(i) for fiscal year 1999, reserve not less than 50 
percent for carrying out section 171; and 
(ii) for each of the fiscal years 2000 through 2003, 
reserve not less than 45 percent for carrying out section 
171; 
(C)(i) for fiscal year 1999, reserve not less than 10 
percent for carrying out section 172; and 
(ii) for each of the fiscal yesirs 2000 through 2003, 
reserve not less than 10 percent for carrying out section 
172; and 
(D)(i) for fiscal year 1999, reserve no funds for carrying 
out section 503; 
(ii) for fiscal year 2000, reserve up to 20 percent for 
carrying out section 503; and 
(iii) for each of the fiscal years 2001 through 2003, 
reserve up to 25 percent for carrying out section 503. 
Subtitle E—^Administration 
29 use 2931. 
SEC. 181. REQUIREMENTS AND RESTRICTIONS. 
(a) BENEFITS.— 
(1) WAGES.— 
(A) IN GENERAL.—Individuals in on-the-job training or 
individuals employed in activities under this title shall 
be compensated at the same rates, including periodic 
increases, as trainees or employees who are similarly situ-
ated in similar occupations by the same employer and 
who have similar training, experience, and skills, and such 
rates shall be in accordance with applicable law, but in 
no event less than the higher of the rate specified in 
section 6(a)(1) of the Fair Labor Standards Act of 1938 
(29 U.S.C. 206(a)(1)) or the applicable State or local mini-
mum wage law. 
(B) 
RULE 
OF 
CONSTRUCTION.—The 
reference 
in 
subparagraph (A) to section 6(a)(1) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 206(a)(1))— 
(i) shall be deemed to be a reference to section 
6(a)(3) of that Act for individuals in American Samoa; 
and 
(ii) 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. 
(2) 
TREATMENT OF ALLOWANCES, EARNINGS, AND PAY-
MENTS.—^Allowances, earnings, and pajrments to individuals 
participating in programs under this title shall not be consid-
ered as income for the purposes of determining eligibility for 
and the amount of income transfer and in-kind aid furnished 
under any Federal or federally assisted program based on need, 
other than as provided under the Social Security Act (42 U.S.C. 
301 et seq.). 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1039 
(b) LABOR STANDARDS.— 
(1) LIMITATIONS ON ACTIVITIES THAT IMPACT WAGES OF 
EMPLOYEES.—^No funds provided under this title shall be used 
to pay the wages of incumbent employees during their participa-
tion in economic development activities provided through a 
statewide workforce investment system. 
(2) DISPLACEMENT.— 
(A) PROHIBITION.—A participant in a program or activ-
ity authorized under this title (referred to in this section 
as a "specified activity") shall not displace (including a 
partial displacement, such as a reduction in the hours 
of nonovertime work, wages, or employment benefits) any 
currently employed employee (as of the date of the partici-
pation), 
(B) PROHIBITION ON IMPAIRMENT OF CONTRACTS.—A 
specified activity shall not impair an existing contract for 
services or collective bargaining agreement, and no such 
activity that would be inconsistent with the terms of a 
collective bargaining agreement shall be undertaken with-
out the written concurrence of the labor organization and 
employer concerned. 
(3) OTHER PROHIBITIONS.—^A participant in a specified 
activity shall not be employed in a job if— 
(A) any other individual is on layoff from the same 
or any substantigJly equivalent job; 
(B) the employer has terminated the employment of 
any regular employee or otherwise reduced the workforce 
of the employer with the intention of filling the vacancy 
so created with the participant; or 
(C) the job is created in a promotional line that will 
infringe in any way upon the promotional opportunities 
of currently employed individuals (as of the date of the 
participation). 
(4) HEALTH AND SAFETY.—Health and safety standards 
established under Federal and State law otherwise applicable 
to working conditions of employees shall be equally applicable 
to working conditions of participants engaged in specified activi-
ties. To the extent that a State workers' compensation law 
applies, workers' compensation shall be provided to participants 
on the same basis as the compensation is provided to other 
individuals in the State in similar emplojonent. 
(5) EMPLOYMENT CONDITIONS.—Individuals in on-the-job 
training or individuals employed in programs and activities 
under this title, shall be provided benefits and working condi-
tions at the same level and to the same extent as other trainees 
or employees working a similar length of time and doing the 
same type of work. 
(6) OPPORTUNITY TO SUBMIT COMMENTS.—Interested mem-
bers of the public, including representatives of businesses and 
of labor organizations, shall be provided an opportunity to 
submit comments to the Secretary with respect to programs 
and activities proposed to be funded under subtitle B. 
(7) No IMPACT ON UNION ORGANIZING.—Each recipient of 
funds under this title shall provide to the Secretary assurances 
that none of such funds will be used to assist, promote, or 
deter union organizing. 
(c) GRIEVANCE PROCEDURE.— 
112 STAT. 1040 
PUBLIC LAW 105-220—AUG. 7, 1998 
Deadline. 
(1) IN GENERAL.—Each State and local area receiving an 
allotment under this title shall establish and maintain a proce-
dure for grievances or complaints alleging violations of the 
requirements of this title from participants and other interested 
or affected parties. Such procedure shall include an opportunity 
for a hearing and be completed within 60 days after the filing 
of the grievance or complaint. 
(2) INVESTIGATION.— 
(A) IN GENERAL.—^The Secretary shall investigate an 
allegation of a violation described in paragraph (1) if— 
(i) a decision relating to such violation has not 
been reached within 60 days after the date of the 
filing of the grievance or complaint and either party 
appeals to the Secretary; or 
(ii) a decision relating to such violation has been 
reached within such 60 days and the party to which 
such decision is adverse appeals such decision to the 
Secretary. 
(B) ADDITIONAL REQUIREMENT.—^The Secretary shall 
make a final determination relating to an appeal made 
under subparagraph (A) no later than 120 days sdler receiv-
ing such appeal. 
(3) REMEDIES.—^Remedies that may be imposed under this 
section for a violation of siny requirement of this title shall 
be limited— 
(A) to suspension or termination of pajrments under 
this title; 
(B) to prohibition of placement of a participant with 
an employer that has violated any requirement under this 
title; 
(C) where applicable, to reinstatement of an employee, 
payment of lost wages and benefits, and reestablishment 
of other relevant terms, conditions, and privileges of 
employment; and 
(D) where appropriate, to other equitable relief. 
(4) RULE OF CONSTRUCTION.—^Nothing in paragraph (3) 
shall be construed to prohibit a grievant or complainant from 
pursuing a remedy authorized under another Federal, State, 
or local law for a violation of this title. 
(d) RELOCATION.— 
(1) 
PROHIBITION ON USE OF FUNDS TO ENCOURAGE OR 
INDUCE RELOCATION.—No funds provided under this title shall 
be used, or proposed for use, to encourage or induce the reloca-
tion of a business or part of a business if such relocation 
would result in a loss of employment for any employee of 
such business at the original location and such original location 
is within the United States. 
(2) PROHIBITION ON USE OF FUNDS FOR CUSTOMIZED OR 
SKILL TRAINING AND RELATED ACTIVITIES AFTER RELOCATION.— 
No funds provided under this title for an emplo3nnent and 
training activity shall be used for customized or skill training, 
on-the-job training, or company-specific assessments of job 
applicants or employees, for any business or part of a business 
that has relocated, until the date that is 120 days after the 
date on which such business commences operations at the 
new location, if the relocation of such business or part of a 
business results in a loss of employment for any employee 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1041 
of such business at the original location and such original 
location is within the United States. 
(3) REPAYMENT.—If the Secretary determines that a viola-
tion of paragraph (1) or (2) has occurred, the Secretary shall 
require the State that has violated such paragraph to repay 
to the United States an amount equal to the amount expended 
in violation of such paragraph. 
(e) LIMITATION ON USE OF FUNDS.—^No funds available under 
this title shall be used for employment generating activities, eco-
nomic development activities, investment in revolving loan funds, 
capitalization of businesses, investment in contract bidding resource 
centers, and similar activities that are not directly related to train-
ing for eligible individuals under this title. No funds available 
under subtitle B shall be used for foreign travel. 
(f) TESTING AND SANCTIONING FOR USE OF CONTROLLED SUB-
STANCES.— 
(1) IN GENERAL.—Notwithstanding any other provision of 
law, a State shall not be prohibited by the Federal Government 
from— 
(A) testing participants in programs under subtitle B 
for the use of controlled substances; and 
(B) sanctioning such participants who test positive for 
the use of such controlled substances. 
(2) ADDITIONAL REQUIREMENTS.— 
(A) PERIOD OF SANCTION.—In sanctioning participants 
in programs under subtitle B who test positive for the 
useof controlled substances— 
(i) with respect to the first occurrence for which 
a participant tests positive, a State may exclude the 
participant from the program for a period not to exceed 
6 months; and 
(ii) with respect to the second occurrence and each 
subsequent occurrence for which a participant tests 
positive, a State may exclude the participant from 
the program for a period not to exceed 2 years. 
(B) APPEAL.—^The testing of participants and the 
imposition of sanctions under this subsection shall be sub-
ject to expeditious appeal in accordance with due process 
procedures established by the State. 
(C) PRIVACY.—^A State shall establish procedures for Procedures, 
testing participants for the use of controlled substances 
that ensure a maximum degree of privacy for the partici-
pants. 
(4) FUNDING REQUIREMENT.—In testing and sanctioning of 
participants for the use of controlled substances in accordance 
with this subsection, the only Federal funds that a State may 
use are the amounts made available for the administration 
of statewide workforce investment activities under section 
134(a)(3)(B). 
SEC. 182. PROMPT ALLOCATION OF FUNDS. 
29 USC 2932. 
(a) ALLOTMENTS BASED ON LATEST AVAILABLE DATA.—All allot-
ments to States and grants to outl3dng areas under this title shall 
be based on the latest available data and estimates satisfactory 
to the Secretary. All data relating to disadvantaged adults and 
disadvantaged youth shall be based on the most recent satisfactory 
data from the Bureau of the Census. 
112 STAT. 1042 
PUBLIC LAW 105-220—AUG. 7, 1998 
(b) PUBLICATION IN FEDERAL REGISTER RELATING TO FORMULA 
FUNDS.—Whenever the Secretary allots funds required to be allotted 
under this title, the Secretary shall publish in a timely fashion 
in the Federal Register the proposed amount to be distributed 
to each recipient of the funds. 
DeadUne. 
(c) REQUIREMENT FOR FUNDS DISTRIBUTED BY FORMULA.—All 
funds required to be allotted under section 127 or 132 shall be 
allotted within 45 days after the date of enactment of the Act 
appropriating the funds, except that, if such funds are appropriated 
in advance as authorized by section 189(g), such funds snail be 
allotted or allocated not later than the March 31 preceding the 
program year for which such funds are to be available for obligation. 
DeadUne. 
(d) PUBLICATION IN FEDERAL REGISTER RELATING TO DISCRE-
TIONARY FUNDS.—^Whenever the Secretary utilizes a formula to 
allot or allocate funds made available for distribution at the Sec-
retary's discretion under this title, 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 ration-
ale for the formula and the proposed amounts to be distributed 
to each State and local area. After consideration of any comments 
received, the Secretary shall publish final allotments and allocations 
in the Federal Register. 
DeadUne. 
(e) AVAILABILITY OF FUNDS.—^Funds shall be made available 
under sections 128 and 133 for a local area not later than 30 
days after the date the funds are made available to the Grovemor 
involved, under section 127 or 132 (as the case mav be), or 7 
davs after the date the local plan for the area is approved, whichever 
is later. 
29 use 2933. 
SEC. 183. MONITORING. 
(a) IN GENERAL.—^The Secretary is authorized to monitor all 
recipients of financial assistance under this title to determine 
whether the recipients are compljdng with the provisions of this 
title, including the regulations issued under this title. 
(b) INVESTIGATIONS.—^The Secretary may investigate any matter 
the Secretary determines to be necessary to determine the compli-
ance of the recipients with this title, including the regulations 
issued under this title. The investigations authorized by this sub-
section may include examining records (including making certified 
copies of the records), questioning employees, and entering any 
premises or onto any site in which any part of a program or 
activity of such a recipient is conducted or in which any of the 
records of the recipient are kept. 
(c) ADDITIONAL REQUIREMENT.—^For the purpose of any inves-
tigation or hearing conducted under this title by the Secretary, 
the provisions of section 9 of the Federal Trade Commission Act 
(15 U.S.C. 49) (relating to the attendance of witnesses and the 
production of documents) apply to the Secretary, in the same man-
ner and to the same extent as the provisions apply to the Federal 
Trade Commission. 
29 use 2934. 
SEC. 184. FISCAL CONTROLS; SANCTIONS. 
(a) ESTABLISHMENT OF FISCAL CONTROLS BY STATES.— 
(1) IN GENERAL.—^Each State shall establish such fiscal 
control and fund accounting procedures as may be necessary 
to assure the proper disbursal of, and accounting for. Federal 
funds allocated to \ocel areas under subtitle B. Such procedures 
shall ensure that all financial transactions carried out under 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1043 
subtitle B are conducted and records maintained in accordance 
with generally accepted accounting principles applicable in each 
State. 
(2) COST PRINCIPLES.— 
(A) IN GENERAL.—^Each State (including the Grovemor 
of the State), local area (including the chief elected official 
for the area), and provider receiving funds under this title 
shall comply with the applicable uniform cost principles 
included in the appropriate circulars of the Office of 
Management and Budget for the type of entity receiving 
the funds, 
(B) EXCEPTION.—^The funds made available to a State 
for administration of statewide workforce investment activi-
ties in accordance with section 134(a)(3)(B) shall be alloca-
ble to the overall administration of workforce investment 
activities, but need not be specifically allocable to— 
(i) the administration of adult employment and 
training activities; 
(ii) the administration of dislocated worker employ-
ment and training activities; or 
(iii) the administration of youth activities. 
(3) UNIFORM ADMINISTRATIVE REQUIREMENTS.— 
(A) IN GENERAL.—^Each State (including the Governor 
of the State), local area (including the chief elected official 
for the area), and provider receiving funds under this title 
shall comply with the appropriate uniform administrative 
requirements for grants and agreements applicable for the 
t3T)e of entity receiving the funds, as promulgated in circu-
lars or rules of the Office of Management and Budget. 
(B) 
ADDITIONAL REQUIREMENT.—^Procurement trans-
actions under this title between local boards and units 
of State or local governments shall be conducted only on 
a cost-reimbursable basis. 
(4) MONITORING.—Each Grovemor of a State shall conduct 
on an annual basis onsite monitoring of each local area within 
the State to ensure compliance with the uniform administrative 
requirements referred to in paragraph (3). 
(5) ACTION BY GOVERNOR.—^If the Governor determines that 
a local area is not in compliance with the uniform administra-
tive requirements referred to in paragraph (3), the Grovemor 
shall— 
(A) require corrective action to secure prompt compli-
ance; and 
(B) impose the sanctions provided under subsection 
(b) in the event of failure to take the required corrective 
action. 
(6) CERTIFICATION.—^The Governor shall, every 2 years, 
certify to the Secretary that— 
(A) the State has implemented the uniform administra-
tive requirements referred to in paragraph (3); 
(B) the State has monitored local areas to ensure 
compliance with the uniform administrative requirements 
as required under paragraph (4); and 
(C) the State has taken appropriate action to secure 
compliance pursuant to paragraph (5). 
112 STAT. 1044 
PUBLIC LAW 105-220—AUG. 7, 1998 
Deadline. 
(7) ACTION BY THE SECRETARY.—If the Secretary determines 
that the Governor has not fulfilled the requirements of this 
subsection, the Secretary shall— 
(A) require corrective action to secure prompt compli-
ance; and 
(B) impose the sanctions provided under subsection 
(e) in the event of failure of the Governor to take the 
required appropriate action to secure compliance. 
(b) SUBSTANTIAL VIOLATION.— 
(1) ACTION BY GOVERNOR.—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, and corrective action has not been taken, the Grovemor 
shall— 
(A) issue a notice of intent to revoke approval of all 
or part of the local plan affected; or 
(B) impose a reorganization plan, which may include— 
(i) decertifying the local board involved; 
(ii) prohibiting the use of eligible providers; 
(iii) selecting an alternative entity to administer 
the program for the local area involved; 
(iv) merging the local area into oiie or more other 
local areas; or 
(v) making other such changes as the Secretary 
or Governor determines necessary to secure compli-
ance. 
(2) APPEAL.— 
(A) IN GENERAL.—^The actions taken by the Governor 
pursuant to subparagraphs (A) and (B) of paragraph (1) 
may be appealed to the Secretary and shall not become 
effective until— 
(i) the time for appeal has expired; or 
(ii) the Secretary has issued a decision. 
(B) ADDITIONAL REQUIREMENT.—^The Secretary shall 
make a final decision under subparagraph (A) not later 
than 45 days after the receipt of the appeal. 
(3) ACTION BY THE SECRETARY.—If the Governor fails to 
promptly take the actions required under paragraph (1), the 
Secretary shall take such actions. 
(c) REPAYMENT OF CERTAIN AMOUNTS TO THE UNITED STATES.— 
(1) IN GENERAL.—^Every recipient of funds under this title 
shall repay to the United States amounts found not to have 
been expended in accordance with this title. 
(2) OFFSET OF REPAYMENT.—^If the Secretary determines 
that a State has expended funds made available under this 
title in a manner contrary to the requirements of this title, 
the Secretary may offset repayment of such expenditures 
against any other amount to which the State is or may be 
entitled, except as provided under subsection (d)(1). 
(3) REPAYMENT FROM DEDUCTION BY STATE.—If the Sec-
retary requires a State to repay funds as a result of a deter-
mination that a local area of the State has expended funds 
contrary to the requirements of this title, the Governor of 
the State may use an amount deducted under paragraph (4) 
to repay the funds, except as provided under subsection (e)(1). 
(4) DEDUCTION BY STATE.—^The Governor may deduct an 
amount equal to the misexpenditure described in paragraph 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1045 
(3) from subsequent program year allocations to the local area 
from funds reserved for the administrative costs of the local 
programs involved, as appropriate. 
(5) LIMITATIONS.—^A deduction made by a State as described 
in paragraph (4) shall not be made until such time as the 
Governor has taken appropriate corrective action to ensure 
full compliance within such local area with regard to appro-
priate expenditures of funds under this title. 
(d) REPAYMENT OF AMOUNTS.— 
(1) IN GENERAL.—Each recipient of funds under this title 
shall be liable to repay the amounts described in subsection 
(c)(1), from funds other than funds received under this title, 
upon a determination by the Secretary that the misexpenditure 
of funds was due to willful disregard of the requirements of 
this title, gross negligence, failure to observe accepted standards 
of administration, or a pattern of misexpenditure as described 
in paragraphs (2) and (3) of subsection (c). No such determina-
tion shall be made under this subsection or subsection (c) 
until notice and opportunity for a fair hearing has been given 
to the recipient. 
(2) FACTORS IN IMPOSING SANCTIONS.—In determining 
whether to impose any sanction authorized by this section 
against a recipient for violations by a subgrantee or contractor 
of such recipient under this title (including the regulations 
issued under this title), the Secretary shall first determine 
whether such recipient has adequately demonstrated that the 
recipient has— 
(A) established and adhered to an appropriate system 
for the award and monitoring of grants and contracts with 
subgrantees and contractors that contains acceptable stand-
ards for ensuring accountability; 
(B) entered into a written grant agreement or contract 
with such subgrantee or contractor that established clear 
goals and obligations in unambiguous terms; 
(C) 
acted 
with 
due 
diligence 
to 
monitor 
the 
implementation of the grant agreement or contract, includ-
ing the carrying out of the appropriate monitoring activities 
(including audits) at reasonable intervals; and 
(D) taken prompt and appropriate corrective action 
upon becoming aware of any evidence of a violation of 
this title, including regulations issued under this title, by 
such subgrantee or contractor. 
(3) WAIVER.—If the Secretary determines that the recipient 
has demonstrated substantial compliance with the require-
ments 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 Federal 
or State law directly against any subgrantee or contractor 
for violation of this title, including regulations issued under 
this title. 
(e) IMMEDIATE TERMINATION OR SUSPENSION OF ASSISTANCE 
IN EMERGENCY SITUATIONS.—In emergency situations, if the Sec-
retary determines it is necessary to protect the integrity of the 
funds or ensure the proper operation of the program or activity 
involved, the Secretary may immediately terminate or suspend 
financial assistance, in whole or in part, to the recipient if the 
59-194 O - 98 - 6 : QL 3 Part 2 
112 STAT. 1046 
PUBLIC LAW 105-220—AUG. 7, 1998 
recipient is given prompt notice and the opportunity for a subse-
quent hearing within 30 days after such termination or suspension. 
The Secretary shall not delegate any of the functions or authority 
specified in this subsection, other than to an officer whose appoint-
ment is required to be made by and with the advice and consent 
of the Senate. 
(f) DISCRIMINATION AGAINST PARTICIPANTS.—^If the Secretary 
determines that any recipient under this title has discharged or 
in any other manner discriminated against a participant or against 
any individusQ in connection with the administration of the program 
involved, or against any individual because such individual has 
filed any complaint or instituted or caused to be instituted any 
proceeding under or related to this title, or has testified or is 
about to testify in any such proceeding or investigation under 
or related to this title, or otherwise unlawfully denied to any individ-
ual a benefit to which that individual is entitled under the provi-
sions of this title or the Secretary's regulations, the Secretary 
shall, within 30 days, take such action or order such corrective 
measures, as necessary, with respect to the recipient or the 
aggrieved individual, or both. 
(g) REMEDIES.—^The remedies described in this section shall 
not be construed to be the exclusive remedies available for violations 
described in this section. 
29 use 2935. 
SEC. 185. REPORTS; RECORDKEEPING; INVESTIGATIONS. 
(a) REPORTS.— 
(1) IN GENERAL.—Recipients of funds under this title shall 
keep records that are sufficient to permit the preparation of 
reports required by this title and to permit the tracing of 
funds to a level of expenditure adequate to ensure that the 
funds have not been spent unlawfully. 
(2) SUBMISSION TO THE SECRETARY.—^Every such recipient 
shgill maintain such records and submit such reports, in such 
form and containing such information, as the Secretary may 
require regarding the performance of programs and activities 
carried out under this title. Such records and reports shall 
be submitted to the Secretary but shall not be required to 
be submitted more than once each quarter unless specifically 
requested by Congress or a committee of Congress, in which 
case an estimate may be provided. 
(3) MAINTENANCE OF STANDARDIZED RECORDS.—In order 
to allow for the preparation of the reports required under 
subsection (c), such recipients shall maintain standardized 
records for all individual participants and provide to the Sec-
retary a sufficient number of such records to provide for an 
adequate analysis of the records. 
(4) AVAILABILITY TO THE PUBLIC.— 
(A) IN GENERAL.—^Except as provided in subparagraph 
(B), records maintained by such recipients pursuant to 
this subsection shall be made available to the public upon 
request. 
(B) EXCEPTION.—Subparagraph (A) shall not apply to— 
(i) information, the disclosure of which would con-
stitute a clearly unwarranted invasion of personal pri-
vacy; and 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1047 
(ii) trade secrets, or commercial or fliiEincial 
information, that is obtained from a person and privi-
leged or confidential. 
(C) FEES TO RECOVER COSTS.—Such recipients may 
charge fees sufficient to recover costs applicable to the 
processing of requests for records under subparagraph (A). 
(b) INVESTIGATIONS OF USE OF FUNDS.— 
(1) I N GENERAL.— 
(A) SECRETARY.—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) COMPTROLLER GENERAL OF THE UNITED STATES.— 
In order to ensure compliance with the provisions 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) PROHIBITION.—In conducting any investigation under 
this title, the Secretary or the Comptroller General of the 
United States may not request the compilation of any informa-
tion that the recipient is not otherwise required to compile 
and that is not readily available to such recipient. 
(3) AUDITS.— 
(A) IN GENERAL.—In carrying out any audit under this 
title (other than any initial audit survey or any audit 
investigating possible criminal or fraudulent conduct), 
either directly or through grant or contract, the Secretary, 
the Inspector General of the Department of Labor, or the 
Comptroller General of the United States shall furnish 
to the State, recipient, or other entity to be audited, 
advance notification of the overall objectives and purposes 
of the audit, and any extensive recordkeeping or data 
requirements to be met, not later than 14 days (or as 
soon as practicable), prior to the commencement of the 
audit. 
(B) NOTIFICATION REQUIREMENT.—If the scope, objec-
tives, or purposes of the audit change substantially during 
the course of the audit, the entity being audited shall 
be notified of the change as soon as practicable. 
(C) ADDITIONAL REQUIREMENT.—^The reports on the 
results of such audits shall cite the law, regulation, policy, 
or other criteria applicable to any finding contained in 
the reports. 
(D) RULE OF CONSTRUCTION.—Nothing contained in 
this title shall be construed so as to be inconsistent with 
the Inspector General Act of 1978 (5 U.S.C. App.) or govern-
ment auditing standards issued by the Comptroller General 
of the United States. 
(c) ACCESSIBILITY OF REPORTS.—Each State, each local board, 
and each recipient (other than a subrecipient, subgrantee, or con-
tractor of a recipient) receiving funds under this title— 
(1) shall make readily accessible such reports concerning 
its operations and expenditures as shall be prescribed by the 
Secretary; 
(2) shall prescribe and maintain comparable management Guidelines, 
information systems, in accordance with guidelines that shall 
112 STAT. 1048 
PUBLIC LAW 105-220—AUG. 7, 1998 
be prescribed by the Secretary, designed to facilitate the uni-
form compilation, cross tabulation, and analysis of pro-
grammatic, participant, and financial data, on statewide, local 
area, and other appropriate bases, necessary for reporting, mon-
itoring, and evaluating purposes, including data necessary to 
comply with section 188; and 
(3) shall monitor the performance of providers in complying 
with the terms of grants, contracts, or other agreements made 
pursuant to this title. 
(d) INFORMATION TO BE INCLUDED IN REPORTS.— 
(1) IN GENERAL.—The reports required in subsection (c) 
shall include information regarding programs and activities 
carried out under this title pertaining to— 
(A) the relevant demographic characteristics (including 
race, ethnicity, sex, and age) and other related information 
regarding participants; 
(B) the programs and activities in which participants 
are enrolled, and the length of time that participants are 
engaged in such programs and activities; 
(C) outcomes of the programs and activities for partici-
pants, including the occupations of participants, and place-
ment for participants in nontraditional employment; 
(D) specified costs of the programs and activities; and 
(E) information necessary to prepare reports to comply 
with section 188. 
(2) ADDITIONAL REQUIREMENT.—The Secretary shall ensure 
that all elements of the information required for the reports 
described in paragraph (1) are defined £ind reported uniformly. 
(e) QUARTERLY FINANCIAL REPORTS.— 
(1) IN GENERAL.—^Each local board in the State shall submit 
quarterly financial reports to the Governor with respect to 
programs and activities carried out under this title. Such 
reports shall include information identifying all program and 
activity costs by cost category in accordance with generally 
accepted accounting principles and by year of the appropriation 
involved. 
(2) ADDITIONAL REQUIREMENT.—Each State shall submit 
to the Secretary, on a quarterly basis, a summary of the reports 
submitted to the Governor pursuant to paragraph (1). 
(f) MAINTENANCE OF ADDITIONAL RECORDS.—Each State and 
local board shall maintain records with respect to programs and 
activities carried out under this title that identify— 
(1) any income or profits earned, including such income 
or profits earned by subrecipients; and 
(2) any costs incurred (such as stand-in costs) that are 
otherwise allowable except for funding limitations. 
(g) COST CATEGORIES.—In requiring entities to maintain records 
of costs by category under this title, the Secretary shall require 
only that the costs be categorized as administrative or programmatic 
costs. 
29 use 2936. 
SEC. 186. ADMINISTRATIVE ADJUDICATION. 
(a) IN GENERAL.—^Whenever any applicant for financial assist-
ance 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 applicant may request a hearing before 
an administrative law judge of the Department of Labor. A similar 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1049 
hearing may also be requested by any recipient for whom a correc-
tive action has been required or a sanction has been imposed 
by the Secretary under section 184. 
(b) APPEAL.—^The decision of the administrative law judge shall 
constitute final action by the Secretary unless, within 20 days 
after receipt of the decision of the administrative law judge, a 
&
arty dissatisfied with the decision or any part of the decision 
as 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. After the 20-day period the decision of the administrative 
law judge shall become the final decision of the Secretary unless 
the Secretary, within 30 days after such filing, has notified the 
parties that the case involved has been accepted for review. 
(c) TIME LIMIT.—^Any case accepted for review by the Secretary 
under subsection (b) shall be decided within 180 days after such 
acceptance. If the case is not decided within the 180-day period, 
the decision of the administrative law judge shall become the final 
decision of the Secretary at the end of the 180-day period. 
(d) ADDITIONAL REQUIREMENT.—The provisions of section 187 Applicability, 
shall apply to any final action of the Secretary under this section. 
SEC. 187. JUDICIAL REVIEW. 
29USC2937. 
(a) REVIEW.— 
(1) PETITION.—^With respect to any final order by the Sec-
retary under section 186 oy which the Secretary awards, 
declines to award, or only conditionally awards, financial assist-
ance under his title, or any final order of the Secretary under 
section 186 with respect to a corrective action or sanction 
imposed under section 184, any party to a proceeding which 
resulted in such final order may obtain review of such final 
order in the United States Court of Appeals having jurisdiction 
over the applicant or recipient of funds involved, by filing 
a review petition within 30 days after the date of issuance 
of such final order. 
(2) ACTION ON PETITION.—^The clerk of the court shall trans-
mit a copy of the review petition to the Secretary who shall 
file the record on which the final order was entered as provided 
in section 2112 of title 28, United States Code. The filing 
of a review petition shall not stay the order of the Secretary, 
unless the court orders a stay. Petitions filed under this sub-
section shall be heard expeditiously, if possible within 10 days 
after the date of filing of a reply to the petition. 
(3) STANDARD AND SCOPE OF REVIEW.—NO objection to the 
order of the Secretary shall be considered by the court unless 
the objection was specifically urged, in a timely manner, before 
the Secretary. The review shall be limited to questions of law 
and the findings of fact of the Secretary shall be conclusive 
if supported by substantial evidence. 
(b) JUDGMENT.—The court shall have jurisdiction to make and 
enter a decree affirming, modifying, or setting aside the order 
of the Secretary in whole or in part. The judgment of the court 
regarding the order shall be final, subject to certiorari review by 
the Supreme Court as provided in section 1254(1) of title 28, United 
States Code. 
SEC. 188. NONDISCRIMINATION. 
29USC2938. 
(a) IN GENERAL.— 
112 STAT. 1050 
PUBLIC LAW 105-220—AUG. 7, 1998 
(1) FEDERAL FINANCIAL ASSISTANCE.—^For the purpose of 
applying the prohibitions against discrimination on the basis 
of age under the Age Discrimination Act of 1975 (42 U.S.C. 
6101 et seq.), on the basis of disability under section 504 
of the Rehabilitation Act of 1973 (29 U.S.C. 794), on the basis 
of sex under title IX of the Education Amendments of 1972 
(20 U.S.C. 1681 et seq.), or on the basis of race, color, or 
national origin under title VI of the Civil Rights Act of 1964 
(42 U.S.C. 2000d et seq.), programs and activities funded or 
otherwise fingincially assisted in whole or in part under this 
Act are considered to be programs and activities receiving Fed-
eral financial assistance. 
(2) PROHIBITION OF DISCRIMINATION REGARDING PARTICIPA-
TION, BENEFITS, AND EMPLOYMENT.—No individual shall be 
excluded from participation in, denied the benefits of, subjected 
to discrimination under, or denied employment in the adminis-
tration of or in connection with, any such program or activity 
because of race, color, religion, sex (except as otherwise per-
mitted under title IX of the Education Amendments of 1972), 
national origin, age, disability, or political giffiliation or belief. 
(3) PROHIBITION ON ASSISTANCE FOR FACILITIES FOR SECTAR-
IAN INSTRUCTION OR RELIGIOUS WORSHIP.—Participants shall 
not be employed under this title to carry out the construction, 
operation, or maintenance of any part of any facility that is 
used or to be used for sectarian instruction or as a place 
for religious worship (except with respect to the maintenance 
of a facility that is not primarily or inherently devoted to 
sectarian instruction or religious worship, in a case in which 
the organization operating the facility is part of a program 
or activity providing services to participants). 
(4) PROHIBITION ON DISCRIMINATION ON BASIS OF PARTICI-
PANT STATUS.—No person may discriminate against an individ-
ual who is a participant in a program or activity that receives 
funds under this title, with respect to the terms and conditions 
affecting, or rights provided to, the individual, solely because 
of the status of the individual as a participant. 
(5) PROHIBITION ON DISCRIMINATION AGAINST CERTAIN NON-
CITIZENS.—Participation in programs and activities or receiving 
funds under this title shall be available to citizens and nationals 
of the United States, lawfully admitted permanent resident 
aliens, refugees, asylees, and parolees, and other immigrants 
authorized by the Attorney General to work in the United 
States. 
Notification. 
(b) ACTION OF SECRETARY.—Whenever the Secretary finds that 
a State or other recipient of funds under this title has failed 
to comply with a provision of law referred to in subsection (a)(1), 
or with paragraph (2), (3), (4), or (5) of subsection (a), including 
an applicable regulation prescribed to carry out such provision 
or paragraph, the Secretary shall notify such State or recipient 
and shall request that the State or recipient comply. If within 
a reasonable period of time, not to exceed 60 days, the State 
or recipient fails or refuses to comply, the Secretary may— 
(1) refer the matter to the Attorney General with a rec-
ommendation that an appropriate civil action be instituted; 
or 
(2) take such other action as may be provided by law. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1051 
(c) ACTION OF ATTORNEY GENERAL.—When a matter is referred 
to the Attorney General pursuant to subsection (b)(1), or whenever 
the Attorney General has reason to believe that a State or other 
recipient of funds under this title is engaged in a pattern or practice 
of discrimination in violation of a provision of law referred to 
in subsection (a)(1) or in violation of paragraph (2), (3), (4), or 
(5) of subsection (a), the Attorney General may bring a civil action 
in any appropriate district court of the United States for such 
relief as may be appropriate, including injunctive relief 
(d) JOB CORPS.—For the purposes of this section. Job Corps 
members shall be considered as the ultimate beneficiaries of Federal 
financial assistance. 
(e) REGULATIONS.—^The Secretary shall issue regulations nee- Deadline, 
essary to implement this section not later than one year after 
the date of the enactment of the Workforce Investment Act of 
1998. 
Such regulations shall adopt standards for determining 
discrimination and procedures for enforcement that are consistent 
with the Acts referred to in a subsection (a)( 1), as well as procedures 
to ensure that complaints filed under this section and such Acts 
are processed in a manner that avoids duplication of effort. 
SEC. 189. ADMINISTRATIVE PROVISIONS. 
(a) IN GENERAL.—^The Secretary may, in accordance with chap-
ter 5 of title 5, United States Code, prescribe rules and regulations 
to carry out this title only to the extent necessary to administer 
and ensure compliance with the requirements of this title. Such 
rules and regulations may include provisions making adjustments 
authorized by section 204 of the Intergovernmental Cooperation 
Act of 1968. All such rules and regulations shall be published 
in the Federal Register at least 30 days prior to their effective 
dates. Copies of each such rule or regulation shall be transmitted 
to the appropriate committees of Congress on the date of such 
publication and shall contain, with respect to each material provi-
sion of such rule or regulation, a citation to the particular sub-
stantive section of law that is the basis for the provision. 
(b) ACQUISITION OF CERTAIN PROPERTY AND SERVICES.—^The 
Secretary is authorized, in carrying out this title, to accept, pur-
chase, or lease in the name of the Department of Labor, and 
employ or dispose of in furtherance of the purposes of this title, 
any money or property, real, personal, or mixed, tangible or intangi-
ble, received by gift, devise, bequest, or otherwise, and to accept 
voluntary and uncompensated services notwithstanding the provi-
sions of section 1342 of title 31, United States Code. 
(c) AUTHORITY TO ENTER INTO CERTAIN AGREEMENTS AND TO 
MAKE CERTAIN EXPENDITURES.—The Secretary may make such 
grants, enter into such contracts or agreements, establish such 
procedures, and make such pa)anents, in installments and in 
advance or by way of reimbursement, or otherwise sdlocate or 
expend such funds under this title, as may be necessary to carry 
out this title, including making expenditures for construction, 
repairs, and capital improvements, and including making necessary 
adjustments in pa3rments on account of over-payments or underpay-
ments. 
(d) ANNUAL REPORT.—The Secretary shall prepare and submit 
to Congress an annual report regarding the programs and activities 
carried out under this title. The Secretary shall include in such 
report— 
29 use 2939. 
Federal Register, 
publication. 
112 STAT. 1052 
PUBLIC LAW 105-220—AUG. 7, 1998 
(1) a summary of the achievements, failures, and problems 
of the programs and activities in meeting the objectives of 
this title; 
(2) a summary of major findings from research, evaluations, 
pilot projects, and experiments conducted under this title in 
the fiscal year prior to the submission of the report; 
(3) recommendations for modifications in the programs and 
activities based on analysis of such findings; and 
(4) such other recommendations for legislative or adminis-
trative action as the Secretary determines to be appropriate. 
(e) UTILIZATION OF SERVICES AND FACILITIES.—^The Secretary 
is authorized, in carrying out this title, under the same procedures 
as are applicable under subsection (c) or to the extent permitted 
by law other than this title, to accept and use the services and 
facilities of departments, agencies, and establishments of the United 
States. The Secretary is also authorized, in carrying out this title, 
to accept and use the services and facilities of the agencies of 
any State or political subdivision of a State, with the consent 
of the State or political subdivision. 
(f) 
OBLIGATIONAL AUTHORITY.—^Notwithstanding any other 
provision of this title, the Secretary shall have no authority to 
enter into contracts, grant agreements, or other financial assistance 
agreements under this title except to such extent and in such 
amounts as are provided in advance in appropriations Acts. 
(g) PROGRAM YEAR.— 
(1) I N GENERAL.— 
(A) PROGRAM YEAR.—Except as provided in subpara-
graph (B), appropriations for any fiscal year for programs 
and activities carried out 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) YOUTH ACTIVITIES.—The Secretary may make avail-
able for obligation, beginning April 1 of any fiscal year, 
funds appropriated for such fiscal year to carry out youth 
activities under subtitle B. 
(2) AVAILABILITY.—^Funds obligated for any program year 
for a program or activity carried out under this title may 
be expended by each State receiving such funds during that 
program year and the 2 succeeding program years. Funds obli-
gated for any program year for a program or activity carried 
out under section 171 or 172 shall remain available until 
expended. Funds received by local areas from States under 
this title during a program year may be expended during that 
program year and the succeeding program year. No amount 
of the funds described in this paragraph shall be deobligated 
on account of a rate of expenditure that is consistent with 
a State plan, an operating plan described in section 151, or 
a plan, grant agreement, contract, application, or other agree-
ment described in subtitle D, as appropriate. 
(h) ENFORCEMENT OF MILITARY SELECTIVE SERVICE ACT.—^The 
Secretary shall ensure that each individual participating in any 
program or activity established under this title, or receiving any 
assistance or benefit under this title, has not violated section 3 
of the Military Selective Service Act (50 U.S.C. App. 453) by not 
presenting and submitting to registration as required pursuant 
to such section. The Director of the Selective Service System shall 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1053 
cooperate with the Secretary to enable the Secretary to carry out 
this subsection. 
(i) WAIVERS AND SPECIAL RULES.— 
(1) EXISTING WAIVERS.—With respect to a State that has 
been granted a waiver under the provisions relating to training 
and employment services of the Department of Labor in title 
I of the Departments of Labor, Health and Human Services, 
and Education, and Related Agencies Appropriations Act, 1997 
(Public Law 104-208; 110 Stat. 3009-234), the authority pro-
vided under such waiver shall continue in effect and apply, 
and include a waiver of the related provisions of subtitle B 
and this subtitle, for the duration of the initial waiver. 
(2) SPECIAL RULE REGARDING DESIGNATED AREAS.—A State Deadline, 
that has enacted, not later than December 31, 1997, a State 
law providing for the designation of service delivery areas for 
the delivery of workforce investment activities, may use such 
areas as local areas under this title, notwithstanding section 
116. 
(3) SPECIAL RULE REGARDING SANCTIONS.—A State that Deadline, 
enacts, not later than December 31, 1997, a State law providing 
for the sanctioning of such service delivery areas for failure 
to meet performance measures for workforce investment activi-
ties, may use the State law to sanction local areas for failure 
to meet State performance measures under this title. 
(4) 
GENERAL WAIVERS OF STATUTORY OR REGULATORY 
REQUIREMENTS.— 
(A) GENERAL AUTHORITY.—Notwithstanding any other 
provision of law, the Secretary may waive for a State, 
or a local area in a State, pursuant to a request submitted 
by the Governor of the State (in consultation with appro-
priate local elected officials) that meets the requirements 
of subparagraph (B)— 
(i) any of the statutory or regulatory requirements 
of subtitle B or this subtitle (except for requirements 
relating to wage and labor standards, including non-
displacement protections, worker rights, participation 
and protection of workers and participants, grievance 
procedures and judicial review, nondiscrimination, 
allocation of funds to local areas, eligibility of providers 
or participants, the establishment and functions of 
local areas and local boards, and procedures for review 
and approval of plans); and 
(ii) any of the statutory or regulatory requirements 
of sections 8 through 10 of the Wagner-Peyser Act 
(29 U.S.C. 49g through 49i) (excluding requirements 
relating to the provision of services to unemployment 
insurance claimants and veterans, and requirements 
relating to universal access to basic labor exchange 
services without cost to jobseekers). 
(B) REQUESTS.—^A Governor requesting a waiver under 
subparagraph (A) shall submit a plan to the Secretary 
to improve the statewide workforce investment system 
that— 
(i) identifies the statutory or regulatory require-
ments that are requested to be waived and the goals 
that the State or local area in the State, as appropriate, 
intends to achieve as a result of the waiver; 
112 STAT. 1054 
PUBLIC LAW 105-220—AUG. 7, 1998 
(ii) describes the actions that the State or local 
area, as appropriate, has undertaken to remove State 
or local statutory or regulatory barriers; 
(iii) describes the goals of the waiver and the 
expected programmatic outcomes if the request is 
granted; 
(iv) describes the individuals impacted by the 
waiver; and 
(v) describes the process used to monitor the 
progress in implementing such a waiver, and the proc-
ess by which notice and an opportunity to comment 
on such request has been provided to the local board. 
(C) CONDITIONS.—Not later than 90 days after the 
date of the original submission of a request for a waiver 
under subparagraph (A), the Secretary shall provide a 
waiver under this paragraph if and only to the extent 
that— 
(i) the Secretary determines that the requirements 
requested to be waived impede the ability of the State 
or local area, as appropriate, to implement the plan 
described in subparagraph (B); and 
(ii) the State has executed a memorandum of 
understEinding with the Secretary requiring such State 
to meet, or ensure that the local area meets, agreed-
upon outcomes and to implement other appropriate 
measures to ensure accountability. 
Effective date. 
SEC. 190. REFERENCE. 
29 use 2940 
Effective on the date of the enactment of the Workforce Invest-
ment Act of 1998, all references in any other provision of law 
(other than section 665 of title 18, United States Code) to the 
Comprehensive Emplojonent and Training Act, or to the Job Train-
ing Partnership Act, as the case may be, shall be deemed to refer 
to the "Workforce Investment Act of 1998.". 
29 use 2941. 
SEC. 191. STATE LEGISLATIVE AUTHORITY. 
(a) AUTHORITY OF STATE LEGISLATURE.—^Nothing in this title 
shall be interpreted to preclude the enactment of State legislation 
providing for the implementation, consistent with the provisions 
of this title, of the activities assisted under this title. Any funds 
received by a State under this title shall be subject to appropriation 
by the State legislature, consistent with the terms and conditions 
required under this title. 
(b) INTERSTATE COMPACTS AND COOPERATIVE AGREEMENTS.— 
In the event that compliance with provisions of this title would 
be enhanced by compacts and cooperative agreements between 
States, the consent of Congress is given to States to enter into 
such compacts and agreements to facilitate such compliance, subject 
to the approval of the Secretary. 
29 use 2942. 
SEC. 192. WORKFORCE FLEXIBILITY PLANS. 
(a) PLANS.—^A State may submit to the Secretary, and the 
Secretary may approve, a workforce flexibility plan under which 
the State is authorized to waive, in accordsmce with the plan— 
(1) any of the statutory or regulatory 
requirements 
applicable under this title to local areas, pursuant to applica-
tions for such waivers from the local areas, except for require-
ments relating to the basic purposes of this title, wage and 
•••Utes^Si' 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1055 
labor standards, grievance procedures and judicial review, non-
discrimination, eligibility of participants, allocation of funds 
to local areas, establishment and functions of local areas and 
local boards, review and approval of local plans, and worker 
rights, participation, and protection; 
(2) any of the statutory or regulatory 
requirements 
applicable under sections 8 through 10 of the Wagner-Peyser 
Act (29 U.S.C. 49g through 49i), to the State, except for require-
ments relating to the provision of services to unemployment 
insurance claimants and veterans, and to universal access to 
basic labor exchange services without cost to jobseekers; and 
(3) any of the statutory or regulatory 
requirements 
applicable under the Older Americans Act of 1965 (42 U.S.C. 
3001 et seq.), to State agencies on aging with respect to activi-
ties carried out using funds allotted under section 506(a)(3) 
of such Act (42 U.S.C. 3056d(a)(3)), except for requirements 
relating to the basic purposes of such Act, wage and labor 
standards, eligibility of participants in the activities, and stand-
ards for agreements. 
(b) CONTENT OF PLANS.—^A workforce flexibility plan imple-
mented by a State under subsection (a) shall include descriptions 
of— 
(1)(A) the process by which local areas in the State may 
submit and obtain approval by the State of applications for 
waivers of requirements applicable under this title; and 
(B) the requirements described in subparagraph (A) that 
are likely to be waived by the State under the plan; 
(2) the requirements applicable under sections 8 through 
10 of the Wagner-Peyser Act that are proposed to be waived, 
if any; 
(3) the requirements applicable under the Older Americans 
Act of 1965 that are proposed to be waived, if any; 
(4) the outcomes to be achieved by the waivers described 
in paragraphs (1) through (3); and 
(5) other measures to be taken to ensure appropriate 
accountability for Federal funds in connection with the waivers. 
(c) PERIODS.—^The Secretary may approve a workforce flexibility 
plan for a period of not more than 5 years. 
(d) OPPORTUNITY FOR PUBLIC COMMENTS.—Prior to submitting 
a workforce flexibility plan to the Secretary for approval, the State 
shall provide to all interested parties and to the general public 
adequate notice and a reasonable opportunity for comment on the 
waiver requests proposed to be implemented pursuant to such plan. 
SEC. 193. USE OF CERTAIN REAL PROPERTY. 
29 USC 2943. 
(a) IN GENERAL.—^Notwithstanding any other provision of law, 
the Governor may authorize a public agency to make available, 
for the use of a one-stop service delivery system within the State 
which is carried out by a consortium of entities that includes 
the public agency, real property in which, as of the date of the 
enactment of the Workforce Investment Act of 1998, the Federal 
Government has acquired equity through the use of funds provided 
under title III of the Social Security Act (42 U.S.C. 501 et seq.), 
section 903(c) of such Act (42 U.S.C. 1103(c)), or the Wagner-
Peyser Act (29 U.S.C. 49 et seq.). 
(b) USE OF FUNDS.—Subsequent to the commencement of the 
use of the property described in subsection (a) for the functions 
112 STAT. 1056 
PUBLIC LAW 105-220—AUG. 7, 1998 
of a one-stop service delivery system, funds provided under the 
provisions of law described in subsection (a) may only be used 
to acquire further equity in such property, or to pay operating 
and maintenance expenses relating to such property in proportion 
to the extent of the use of such property attributable to the activities 
authorized under such provisions of law. 
29 use 2944. 
SEC. 194. CONTINUATION OF STATE ACTIVITIES AND POLICIES. 
(a) IN GENERAL.—^Notwithstanding any other provision of this 
title, the Secretary may not deny approval of a State plan for 
a covered State, or an application of a covered State for financial 
assistance, under this title or find a covered State (including a 
State board or Governor), or a local area (including a local board 
or chief elected official) in a covered State, in violation of a provision 
of this title, on the basis that— 
(IXA) the State proposes to sillocate or disburse, allocates, 
or disburses, within the State, funds made available to the 
State under section 127 or 132 in accordance with the allocation 
formula for the type of activities involved, or in accordance 
with a disbursal procedure or process, used by the State under 
prior consistent State laws; or 
(B) a local board in the State proposes to disburse, or 
disburses, within the local area, funds made available to a 
State under section 127 or 132 in accordance with a disbursal 
procedure or process used by a private industry council under 
prior consistent State law; 
(2) the State proposes to carry out or carries out a State 
procedure through which local areas use, as fiscal agents for 
funds made available to the State under section 127 or 132 
and sdlocated within the State, fiscal agents selected in accord-
ance with a process established under prior consistent State 
laws; 
(3) the State proposes to carry out or carries out a State 
procedure through which the local board in the State (or the 
local boards, the chief elected officials in the State, £ind the 
Governor) designate or select the one-stop partners and one-
stop operators of the statewide system in the State under 
prior consistent State laws, in lieu of making the designation, 
or certification described in section 121 (regardless of the date 
the one-stop delivery systems involved have been established); 
(4) the State proposes to carry out or carries out a State 
procedure through which the persons responsible for selecting 
eligible providers for purposes of subtitle B are permitted to 
determine that a provider shall not be selected to provide 
both intake services under section 134(d)(2) and training serv-
ices under section 134(d)(4), under prior consistent State laws; 
(5) the State proposes to designate or designates a State 
board, or proposes to assign or assigns functions and roles 
of the State board (including determining the time periods 
for development and submission of a State plan required under 
section 112), for purposes of subtitle B in accordance with 
prior consistent State laws; or 
(6) a local board in the State proposes to use or carry 
out, uses, or carries out a local plan (including assigning func-
tions and roles of the local board) for purposes of subtitle 
B in accordance with the authorities and 
requirements 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1057 
applicable to local plans and private industry councils under 
prior consistent State laws. 
(b) DEFINITION.—In this section: 
(1) COVERED STATE.—^The term "covered State" means a 
State that enacted State laws described in paragraph (2). 
(2) PRIOR 
CONSISTENT 
STATE LAWS.—The term "prior 
consistent State laws" means State laws, not inconsistent with 
the Job Training Partnership Act or any other applicable Fed-
eral law, that took effect on September 1, 1993, September 
1, 1995, and September 1, 1997. 
SEC. 195. GENERAL PROGRAM REQUIREMENTS. 
29USC2945. 
Except as otherwise provided in this title, the following condi-
tions are applicable to all programs under this title: 
(1) Each program under this title shall provide employment i 
and training opportunities to those who can benefit from, and 
who are most in need of, such opportunities. In addition, efforts . 
shall be made to develop programs which contribute to occupa-
tional development, upward mobility, development of new 
careers, £ind opportunities for nontraditional employment. 
(2) Funds provided under this title shall only be used 
for activities that are in addition to those that would otherwise 
be available in the local area in the absence of such funds. 
(3)(A) Any local area may enter into an agreement with 
another local area (including a local area that is a city or 
county within the same labor market) to pay or share the 
cost of educating, training, or placing individuals participating 
in programs assisted under this title, including the provision 
of supportive services. 
(B) Such agreement shall be approved by each local board 
providing guidance to the local area and shall be described 
in the local plan under section 118. 
(4) On-the-job training contracts under this title shall not 
be entered into with employers who have received payments 
under previous contracts and have exhibited a pattern of failing 
to provide on-the-job training participants with continued long-
term employment as regular employees with wages and 
employment benefits (including health benefits) and working 
conditions at the same level and to the same extent as other 
employees working a similar length of time and doing the 
same type of work. 
(5) No person or organization may charge an individual 
a fee for the placement or referral of the individual in or 
to a workforce investment activity under this title. 
(6) The Secretary shall not provide financial assistance 
for any program under this title that involves political activities. 
(7)(A) Income under any program administered by a public 
or private nonprofit entity may be retained by such entity 
only if such income is used to continue to carry out the program. 
(B) Income subject to the requirements of subparagraph 
(A) shall include— 
(i) receipts from goods or services (including con-
ferences) provided as a result of activities funded under 
this title; 
(ii) funds provided to a service provider under this 
title that are in excess of the costs associated with the 
services provided; and 
112 STAT. 1058 
PUBLIC LAW 105-220—AUG. 7, 1998 
(iii) interest income earned on funds received under 
this title. 
(C) For purposes of this paragraph, each entity receiving 
financial assistance under this title shall maintain records suffi-
cient to determine the amount of such income received and 
the purposes for which such income is expended. 
Notification. 
(8)(A) The Secretary shall notify the Governor and the 
appropriate local board and chief elected official of, and consult 
with the Grovernor Eind such board and official concerning, 
any activity to be funded by the Secretary under this title 
within the corresponding State or local area. 
(B) The Grovemor shall notify the appropriate local board 
and chief elected official of, and consult with such board and 
official concerning, any activity to be funded by the Governor 
under this title within the corresponding local area. 
(9)(A) All education programs for youth supported with 
funds provided under chapter 4 of subtitle B shall be consistent 
with applicable State and local educational standards. 
(B) Standards and procedures with respect to awarding 
academic credit and certifying educational attainment in pro-
grams conducted under such chapter shall be consistent with 
the requirements of applicable State and local law, including 
regulation. 
(10) No funds available under this title may be used for 
public service employment except as specifically authorized 
under this title. 
(11) The Federal requirements governing the title, use, 
and disposition of real property, equipment, and supplies pur-
chased with funds provided under this title shall be the Federal 
requirements generally applicable to Federal grsmts to States 
and local governments. 
(12) Nothing in this title shall be construed to provide 
an individual with an entitlement to a service under this title. 
(13) Services, facilities, or equipment funded under this 
title may be used, as appropriate, on a fee-for-service basis, 
by employers in a local area in order to provide employment 
and training activities to incumbent workers— 
(A) when such services, facilities, or equipment are 
not in use for the provision of services for eligible partici-
pants under this title; 
(B) if such use for incumbent workers would not have 
an adverse affect on the provision of services to eligible 
participants under this title; and 
(C) if the income derived from such fees is used to 
carry out the programs authorized under this title. 
Subtitle F—^Repeals and Conforming 
Amendments 
SEC. 199. REPEALS. 
(a) GENERAL IMMEDIATE REPEALS.—^The following provisions 
are repealed: 
(1) Section 204 of the Immigration Reform and Control 
Act of 1986 (8 U.S.C. 1255a note). 
(2) Title II of Public Law 95-250 (92 Stat. 172). 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1059 
49 use 42101 et 
seq. 
(3) The Displaced Homemakers Self-Sufficiency Assistance 
Act (29 U.S.C. 2301 et seq.). 
(4) Section 211 of the Appalachian Regional Development 
Act of 1965 (40 U.S.C. App. 211). 
(5) Subtitle C of title VII of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11441 et seq.), except sec-
tion 738 of such title (42 U.S.C. 11448). 
(6) Subchapter I of chapter 421 of title 49, United States 
Code. 
(b) 
SUBSEQUENT 
REPEALS.—The following provisions 
are 
repealed: 
(1) Title VII of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.S.C. 11421 et seq.), except subtitle B and section 
738 of such title (42 U.S.C. 11431 et seq. and 11448). 
(2) The Job Training Partnership Act (29 U.S.C. 1501 et 
seq.). 
(c) EFFECTIVE DATES.— 
(1) IMMEDIATE REPEALS.—^The repeals made by subsection 
(a) shall take effect on the date of enactment of this Act. 
(2) SUBSEQUENT REPEALS.— 
(A) 
STEWART 
B. MCKINNEY 
HOMELESS 
ASSISTANCE 
ACT.—^The repeal made by subsection (b)(1) shall take effect 
on July 1, 1999. 
(B) JOB TRAINING PARTNERSHIP ACT.—^The repeal made 
by subsection (b)(2) shall take effect on July 1, 20()0. 
SEC. 199A. CONFORMING AMENDMENTS. 
(a) PREPARATION.—^After consultation with the appropriate 
committees of Congress and the Director of the Office of Manage-
ment and Budget, the Secretary shall prepare recommended legisla-
tion containing technical and conforming amendments to reflect 
the changes made by this subtitle. 
(b) SUBMISSION TO CONGRESS.—Not later than 6 months after Deadline, 
the date of enactment of this Act, the Secretary shall submit to 
Congress the recommended legislation referred to under subsection 
(a). 
(c) REFERENCES.—^All references in any other provision of law 
to a provision of the Comprehensive Employment and Training 
Act, or of the Job Training Partnership Act, as the case may 
be, shall be deemed to refer to the corresponding provision of 
this title. 
29 use 2301 
note. 
42 use 11421 
note. 
29 use 1501 
note. 
29 use 2940 
note. 
TITLE II—ADULT EDUCATION AND 
LITERACY 
SEC. 201. SHORT TITLE. 
This title may be cited as the "Adult Education and Family 
Literacy Act". 
SEC. 202. PURPOSE. 
It is the purpose of this title to create a partnership among 
the Federal Government, States, and localities to provide, on a 
voluntary basis, adult education and literacy services, in order 
to— 
(1) assist adults to become literate and obtain the knowl-
edge and skills necessary for emplo3anent and self-sufficiency; 
Adult Education 
and Fiunily 
Literacy Act. 
Inter-
governmental 
relations. 
20 use 9201 
note. 
20 use 9201. 
112 STAT. 1060 
PUBLIC LAW 105-220—AUG. 7, 1998 
(2) assist adults who are parents to obtain the educational 
skills necessary to become full partners in the educational 
development of their children; and 
(3) assist adults in the completion of a secondary school 
education. 
20 use 9202. 
SEC. 203. DEFINITIONS. 
In this subtitle: 
(1) ADULT EDUCATION.—The term "adult education" means 
services or instruction below the postsecondary level for individ-
uals— 
(A) who have attained 16 years of age; 
(B) who are not enrolled or required to be enrolled 
in secondary school under State law; and 
(C) who— 
(i) lack sufficient mastery of basic educational 
skills to enable the individuals to function effectively 
in society; 
(ii) do not have a secondary school diploma or 
its recognized equivalent, and have not achieved an 
equivalent level of education; or 
(iii) are unable to speak, read, or write the English 
language. 
(2) ADULT EDUCATION AND LITERACY ACTIVITIES.—^The term 
"adult education and literacy activities" means activities 
described in section 231(b). 
(3) EDUCATIONAL SERVICE AGENCY.—^The term "educational 
service agency" means a regional public multiservice agency 
authorized by State statute to develop and manage a service 
or program, and to provide the service or program to a local 
educational agency. 
(4) ELIGIBLE AGENCY.—^The term "eligible agency" means 
the sole entity or agency in a State or an outlying area respon-
sible for administering or supervising policy for adult education 
and literacy in the State or outlying area, respectively, consist-
ent with the law of the State or outlying area, respectively. 
(5) 
ELIGIBLE 
PROVIDER.—The term "eligible provider" 
means— 
(A) a local educational agency; 
(B) a community-based organization of demonstrated 
effectiveness; 
(C) a volunteer literacy organization of demonstrated 
effectiveness; 
(D) an institution of higher education; 
(E) a public or private nonprofit agency; 
(F) a library; 
(G) a public housing authority; 
(H) a nonprofit institution that is not described in 
any of subparagraphs (A) through (G) and has the ability 
to provide literacy services to adults and families; and 
(I) a consortium of the agencies, organizations, institu-
tions, libraries, or authorities described in any of subpara-
graphs (A) through (H). 
(6) ENGLISH LITERACY PROGRAM.—-The term "English lit-
eracy program" means a program of instruction designed to 
help individuals of limited English proficiency achieve com-
petence in the English language. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1061 
(7) FAMILY LITERACY SERVICES.—^The term "family literacy 
services" means services that are of sufficient intensity in terms 
of hours, and of sufficient duration, to make sustainable 
changes in a family, and that integrate all of the following 
activities: 
(A) Interactive literacy activities between parents and 
their children. 
(B) Training for parents regarding how to be the pri-
mary teacher for their children and full partners in the 
education of their children. 
(C) Parent literacy training that leads to economic 
self-sufficiency. 
(D) An age-appropriate education to prepare children 
for success in school and life experiences. 
(8) GOVERNOR.—^The term "Governor" means the chief 
executive officer of a State or outlying area. 
(9) INDIVIDUAL WITH A DISABILITY.— 
(A) IN GENERAL.—The term "individual with a disabil-
ity" means an individual with any disability (as defined 
in section 3 of the Americans with Disabilities Act of 1990 
(42 U.S.C. 12102)). 
(B) 
INDIVIDUALS 
WITH 
DISABILITIES.—The 
term 
"individuals with disabilities" means more than one individ-
ual with a disability. 
(10) 
INDIVIDUAL OF LIMITED ENGLISH PROFICIENCY.—^The 
term "individual of limited English proficiency" means an adult 
or out-of-school youth who has limited ability in speaking, 
reading, writing, or understanding the English language, and— 
(A) whose native language is a language other than 
English; or 
(B) who lives in a family or community environment 
where a language other than English is the dominant lan-
guage. 
(11) 
INSTITUTION 
OF 
HIGHER 
EDUCATION.—^The 
term 
"institution of higher education" has the meaning given the 
term in section 1201 of the Higher Education Act of 1965 
(20 U.S.C. 1141). 
(12) LITERACY.—^The term "literacy" means an individual's 
ability to read, write, and speak in English, compute, and 
solve problems, at levels of proficiency necessary to function 
on the job, in the family of the individual, and in society. 
(13) LOCAL EDUCATIONAL AGENCY.—^The term "local edu-
cational agency" has the meaning given the term in section 
14101 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 8801). 
(14) OUTLYING AREA.—^The term "outlying area" has the 
meaning given the term in section 101. 
(15) POSTSECONDARY EDUCATIONAL INSTITUTION.—^The term 
"postsecondary educational institution" means— 
(A) an institution of higher education that provides 
not less than a 2-year program of instruction that is accept-
able for credit toward a bachelor's degree; 
(B) a tribally controlled community college; or 
(C) a nonprofit educational institution offering certifi-
cate or apprenticeship programs at the postsecondary level. 
(16) 
SECRETARY.—^The 
term 
"Secretary" 
means 
the 
Secretary of Education. 
112 STAT. 1062 
PUBLIC LAW 105-220—AUG. 7, 1998 
(17) STATE.—^The term "State" means each of the several 
States of the United States, the District of Columbia, and 
the Commonwealth of Puerto Rico. 
(18) WORKPLACE LITERACY SERVICES.—^The term "workplace 
literacy services" means literacy services that are offered for 
the purpose of improving the productivity of the workforce 
through the improvement of literacy skills. 
20 use 9203. 
SEC. 204. HOME SCHOOLS. 
Nothing in this subtitle shall be construed to affect home 
schools, or to compel a parent engaged in home schooling to partici-
pate in an English literacy program, family literacy services, or 
adult education. 
20 use 9204. 
SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to carry out this subtitle 
such sums as may be necessary for each of the fiscal years 1999 
through 2003. 
Subtitle A—^Adult Education and Literacy 
Programs 
CHAPTER 1—FEDERAL PROVISIONS 
20 use 9211. 
SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES; 
ALLOTMENTS. 
(a) RESERVATION OF FUNDS.—^From the sum appropriated under 
section 205 for a fiscal year, the Secretary— 
(1) shall reserve 1.5 percent to carry out section 242, except 
that the amount so reserved shall not exceed $8,000,000; 
(2) shall reserve 1.5 percent to carry out section 243, except 
that the amount so reserved shall not exceed $8,000,000; and 
(3) shall make available, to the Secretary of Labor, 1.72 
percent for incentive grants under section 503. 
(b) GRANTS TO ELIGIBLE AGENCIES.— 
(1) IN GENERAL.—From the sum appropriated under section 
205 and not reserved under subsection (a) for a fiscal year, 
the Secretary shall award a grant to each eligible agency having 
a State plan approved under section 224 in an amount equal 
to the sum of the initial allotment under subsection (c)(1) 
and the additionsil allotment under subsection (c)(2) for the 
eligible agency for the fiscal year, subject to subsections (f) 
and (g), to enable the eligible agency to carry out the activities 
assisted under this subtitle. 
(2) PURPOSE OF GRANTS.—^The Secretary may award a grant 
under paragraph (1) only if the eligible entity involved agrees 
to expend the grant for adult education and literacy activities 
in accordance with the provisions of this subtitle. 
(c) ALLOTMENTS.— 
(1) INITL\L ALLOTMENTS.—^From the sum appropriated 
under section 205 and not reserved under subsection (a) for 
a fiscal year, the Secretary shall allot to each eligible agency 
having a State plan approved under section 224(f)— 
(A) $100,000, in the case of an eligible agency serving 
an outlying area; and 
(B) $250,000, in the case of any other eligible agency. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1063 
(2) ADDITIONAL ALLOTME^^^s.—From the sum appropriated 
under section 205, not reserved under subsection (a), and not 
allotted under paragraph (1), for a fiscal year, the Secretary 
shall allot to each eligible agency that receives an initial allot-
ment under paragraph (1) an additional amount that bears 
the same relationship to such sum as the number of qualifying 
adults in the State or outlying area served by the eligible 
agency bears to the number of such adults in all States and 
outlying areas. 
(d) QUALIFYING ADULT.—^For the purpose of subsection (c)(2), 
the term "qualifying adult" means an adult who— 
(1) is at least 16 years of age, but less than 61 years 
of age; 
(2) is beyond the age of compulsory school attendance under 
the law of the State or outlying area; 
(3) does not have a secondary school diploma or its recog-
nized equivalent; and 
(4) is not enrolled in secondary school. 
(e) SPECIAL RULE.— 
(1) IN GENERAL.—From amounts made available under sub-
. section (c) for the Republic of the Marshall Islands, the Fed-
erated States of Micronesia, and the Republic of Palau, the 
Secretary shall award grants to Guam, American Samoa, the 
Commonwealth of the Northern Mariana Islands, the Republic 
of the Marshall Islands, the Federated States of Micronesia, 
or the Republic of Palau to carry out activities described in 
this subtitle in accordance with the provisions of this subtitle 
that the Secretary determines are not inconsistent with this 
subsection. 
(2) AWARD BASIS.—^The Secretary shall award grants pursu-
ant to paragraph (1) on a competitive basis and pursuant 
to recommendations from the Pacific Region Educational Lab-
oratory in Honolulu, Hawaii. 
(3) 
TERMINATION OF ELIGIBILITY.—Notwithstanding 
any 
other provision of law, the Republic of the Marshall Islands, 
the Federated States of Micronesia, and the Republic of Palau 
shall not receive any funds under this subtitle for any fiscal 
year that begins after September 30, 2001. 
(4) ADMINISTRATIVE COSTS.—^The Secretary may provide 
not more than 5 percent of the funds made available for grants 
under this subsection to pay the administrative costs of the 
Pacific Region Educational Laboratory regarding activities 
assisted under this subsection. 
(f) HOLD-HARMLESS.— 
(1) IN GENERAL.—^Notwithstanding subsection (c)— 
(A) for fiscal year 1999, no eligible agency shall receive 
an allotment under this subtitle that is less than 90 percent 
of the payments made to the State or outlying area of 
the eligible agency for fiscal year 1998 for programs for 
which funds were authorized to be appropriated under 
section 313 of the Adult Education Act (as such Act was 
in effect on the day before the date of the enactment 
of the Workforce Investment Act of 1998); and 
(B) for fiscal year 2000 and each succeeding fiscal 
year, no eligible agency shall receive an allotment under 
this subtitle that is less than 90 percent of the allotment 
112 STAT. 1064 
PUBLIC LAW 105-220—AUG. 7, 1998 
the eligible agency received for the preceding fiscal year 
under this subtitle. 
(2) RATABLE REDUCTION.—If for any fiscal year the amount 
available for allotment under this subtitle is insufficient to 
satisfy the provisions of paragraph (1), the Secretary shall 
ratably reduce the pajrments to all eligible agencies, as nec-
essary. 
(g) REALLOTMENT.—^The portion of any eligible agenc/s allot-
ment under this subtitle for a fiscal year that the Secretary deter-
mines will not be required for the period such allotment is available 
for carrying out activities under this subtitle, shall be available 
for reallotment from time to time, on such dates during such period 
as the Secretary shall fix, to other eligible agencies in proportion 
to the original allotments to such agencies under this subtitle 
for such year. 
20 use 9212. 
SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM. 
(a) PURPOSE.—^The purpose of this section is to establish a 
comprehensive performance accountability system, comprised of the 
activities described in this section, to assess the effectiveness of 
eligible agencies in achieving continuous improvement of adult edu-
cation and literacy activities funded under this subtitle, in order 
to optimize the return on investment of Federal funds in adult 
education and literacy activities. 
(b) ELIGIBLE AGENCY PERFORMANCE MEASURES.— 
(1) IN GENERAL.—^For each eligible agency, the eligible 
agency performance measures shall consist of— 
(A)(i) the core indicators of performance described in 
paragraph (2)(A); and 
(ii) additional indicators of performance (if any) identi-
fied by the eligible agency under paragraph (2)(B); and 
(B) an eligible agency adjusted level of performance 
for each indicator described in subparagraph (A). 
(2) INDICATORS OF PERFORMANCE.— 
(A) CORE INDICATORS OF PERFORMANCE.—The core 
indicators of performance shall include the following: 
(i) Demonstrated improvements in literacy skill 
levels in reading, writing, and speaking the English 
language, numeracy, problem solving, English lan-
guage acquisition, and other literacy skills. 
(ii) Placement in, retention in, or completion of, 
postsecondary 
education, 
training, 
unsubsidized 
employment or career advancement. 
(iii) Receipt of a secondary school diploma or its 
recognized equivalent. 
(B) ADDITIONAL INDICATORS.—^An eligible agency may 
identify in the State plan additional indicators for adult 
education and literacy activities authorized under this sub-
title. 
(3) LEVELS OF PERFORMANCE.— 
(A) ELIGIBLE AGENCY ADJUSTED LEVELS OF PERFORM-
ANCE FOR CORE INDICATORS.— 
(i) IN GENERAL.—^For each eligible agency submit-
ting a State plan, there shall be established, in accord-
ance with this subparagraph, levels of performance 
for each of the core indicators of performance described 
in paragraph (2)(A) for adult education and literacy 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1065 
activities authorized under this subtitle. The levels 
of performance established under this subparagraph 
shall, at a minimum— 
(I) be expressed in an objective, quantifiable, 
and measurable form; and 
(II) show the progress of the eligible agency 
toward continuously improving in performance. 
(ii) IDENTIFICATION IN STATE PLAN.—^Each eligible 
agency shall identify, in the State plan submitted 
under section 224, expected levels of performance for 
each of the core indicators of performance for the first 
3 program years covered by the State plan. 
(iii) AGREEMENT ON ELIGIBLE AGENCY ADJUSTED 
LEVELS OF PERFORMANCE FOR FIRST 3 YEARS.—In order 
to ensure an optimal return on the investment of Fed-
eral funds in adult education and literacy activities 
authorized under this subtitle, the Secretary and each 
eligible agency shall reach agreement on levels of 
performance for each of the core indicators of perform-
ance, for the first 3 program years covered by the 
State plan, taking into account the levels identified 
in the State plan under clause (ii) and the factors 
described in clause (iv). The levels agreed to under 
this clause shall be considered to be the eligible agency 
adjusted levels of performance for the eligible agency 
for such years and shall be incorporated into the State 
plan prior to the approval of such plan. 
(iv) FACTORS.—^The agreement described in clause 
(iii) or (v) shall take into account— 
(I) how the levels involved compare with the 
eligible agency adjusted levels of performance 
established for other eligible agencies, taking into 
account factors including the characteristics of 
participants when the participants entered the pro-
gram, and the services or instruction to be pro-
vided; and 
(II) the extent to which such levels involved 
promote continuous improvement in performance 
on the performance measures by such eligible 
agency and ensure optimal return on the invest-
ment of Federal funds. 
(v) AGREEMENT ON ELIGIBLE AGENCY ADJUSTED 
LEVELS OF PERFORMANCE FOR 4TH AND 5TH YEARS.— 
Prior to the fourth program year covered by the State 
plan, the Secretary and each eligible agency shall reach 
agreement on levels of performance for each of the 
core indicators of performance for the fourth and fifth 
program years covered by the State plan, taking into 
account the factors described in clause (iv). The levels 
agreed to under this clause shall be considered to 
be the eligible agency adjusted levels of performance 
for the eligible agency for such years and shall be 
incorporated into the State plan. 
(vi) REVISIONS.—^If unanticipated circumstances 
arise in a State resulting in a significant change in 
the factors described in clause (iv)(II), the eligible 
agency may request that the eligible agency adjusted 
112 STAT. 1066 
PUBLIC LAW 105-220—AUG. 7, 1998 
levels of performance agreed to under clause (iii) or 
(v) be revised. The Secretary, after collaboration with 
the representatives described in section 136(j), shall 
issue objective criteria and methods for making such 
revisions. 
(B) LEVELS OF PERFORMANCE FOR ADDITIONAL INDICA-
TORS.—^The eligible agency may identify, in the State plan, 
eligible agency levels of performance for each of the addi-
tional indicators described in paragraph (2)(B). Such levels 
shall be considered to be eligible agency adjusted levels 
of performance for purposes of this subtitle. 
(c) REPORT.— 
(1) IN GENERAL.—Each eligible agency that receives a grant 
under section 211(b) shall annually prepare and submit to 
the Secretary a report on the progress of the eligible agency 
in achieving eligible agency perform£ince measures, including 
information on the levels of performance achieved by the eligible 
agency with respect to the core indicators of performance. 
(2) INFORMATION DISSEMINATION.—The Secretary— 
Publication. 
(A) shall make the information contained in such 
reports available to the general public through publication 
and other appropriate methods; 
(B) shall disseminate State-by-State comparisons of the 
information; and 
(C) shall provide the appropriate committees of 
Congress with copies of such reports. 
CHAPTER 2—STATE PROVISIONS 
20 use 9221. 
SEC. 221. STATE ADMINISTRATION. 
Each eligible agency shall be responsible for the State or 
outlying area administration of activities under this subtitle, includ-
ing— 
(1) the development, submission, and implementation of 
the State plan; 
(2) consultation with other appropriate agencies, groups, 
and individuals that are involved in, or interested in, the 
development and implementation of activities assisted under 
this subtitle; and 
(3) coordination and nonduplication with other Federal and 
State education, training, corrections, public housing, and social 
service programs. 
20 use 9222. 
SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT. 
(a) STATE DISTRIBUTION OF FUNDS.—Each eligible agency 
receiving a grant under this subtitle for a fiscal year— 
(1) shall use not less than 82.5 percent of the grant funds 
to award grants and contracts under section 231 and to carry 
out section 225, of which not more than 10 percent of the 
82.5 percent shall be available to carry out section 225; 
(2) shall use not more than 12.5 percent of the grant 
funds to carry out State leadership activities under section 
223; and 
(3) shall use not more than 5 percent of the grant funds, 
or $65,000, whichever is greater, for the administrative 
expenses of the eligible agency. 
(b) MATCHING REQUIREMENT.— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1067 
(1) IN GENERAL.—In order to receive a grant from the 
Secretary under section 211(b) each eligible agency shall pro-
vide, for the costs to be incurred by the eligible agency in 
carrying out the adult education and literacy activities for 
which the grant is awarded, a non-Federal contribution in 
an amount equal to— 
(A) in the case of an eligible agency serving an outlying 
area, 12 percent of the total amount of funds expended 
for adult education and literacy activities in the outlying 
area, except that the Secretary may decrease the amount 
of funds required under this subparagraph for an eligible 
agency; and 
(B) in the case of an eligible agency serving a State, 
25 percent of the total amount of funds expended for adult 
education and literacy activities in the State. 
(2) NON-FEDERAL CONTRIBUTION.—An eligible agency's non-
Federal contribution required under paragraph (1) may be pro-
vided in cash or in kind, fairly evaluated, and shall include 
only non-Federal funds that are used for adult education and 
literacy activities in a manner that is consistent with the pur-
pose of this subtitle. 
SEC. 223. STATE LEADERSHIP ACTIVrnES. 
20 USC 9223. 
(a) IN GENERAL.—^Each eligible agency shall use funds made 
available under section 222(a)(2) for one or more of the following 
adult education and literacy activities: 
(1) The establishment or operation of professional develop-
ment programs to improve the quality of instruction provided 
pursuant to local activities required under section 231(b), 
including 
instruction 
incorporating 
phonemic 
awareness, 
systematic phonics, fluency, and reading comprehension, and 
instruction provided by volunteers or by personnel of a State 
or outlying area. 
(2) The provision of technical assistance to eligible provid-
ers of adult education and literacy activities. 
(3) The provision of technology assistance, including staff 
training, to eligible providers of adult education and literacy 
activities to enable the eligible providers to improve the quality 
of such activities. 
(4) The support of State or regional networks of literacy 
resource centers. 
(5) The monitoring and evaluation of the quality of, and 
the improvement in, adult education and literacy activities. 
(6) Incentives for— 
(A) program coordination and integration; and 
(B) performance awards. 
(7) Developing and disseminating curricula, including 
curricula 
incorporating 
phonemic 
awareness, 
systematic 
phonics, fluency, and reading comprehension. 
(8) Other activities of statewide significance that promote 
the purpose of this title. 
(9) Coordination with existing support services, such as 
transportation, child care, and other assistance designed to 
increase rates of enrollment in, and successful completion of, 
adult education and literacy activities, to adults enrolled in 
such activities. 
112 STAT. 1068 
PUBLIC LAW 105-220—AUG. 7, 1998 
(10) Integration of literacy instruction and occupational 
skill training, and promoting linkages with employers. 
(11) Linkages with postsecondary educational institutions. 
(b) COLLABORATION.—In carrying out this section, eligible agen-
cies shall collaborate where possible, and avoid duplicating efforts, 
in order to maximize the impact of the activities described in 
subsection (a). 
(c) STATE-IMPOSED REQUIREMENTS.—Whenever a State or outly-
ing area implements any rule or policy relating to the administra-
tion or operation of a program authorized under this subtitle that 
has the effect of imposing a requirement that is not imposed under 
Federal law (including any rule or policy based on a State or 
outlying area interpretation of a Federal statute, regulation, or 
guideline), the State or outlying area shall identify, to eligible 
providers, the rule or policy as being State- or outlying area-
imposed. 
20 use 9224. 
SEC. 224. STATE PLAN. 
(a) 5-YEAR PLANS.— 
(1) IN GENERAL.—^Each eligible agency desiring a grant 
under this subtitle for any fiscal year shall submit to, or have 
on file with, the Secretary a 5-year State plan. 
(2) COMPREHENSIVE PLAN OR APPLICATION.—The eligible 
agency may submit the State plan as part of a comprehensive 
plan or application for Federal education assistance. 
(b) PLAN CONTENTS.—In developing the State plan, and any 
revisions to the State plan, the eligible agency shall include in 
the State plan or revisions— 
(1) an objective assessment of the needs of individuals 
in the State or outlying area for adult education and literacy 
activities, including individuals most in need or hardest to 
serve; 
(2) a description of the adult education and literacy activi-
ties that will be carried out with any funds received under 
this subtitle; 
(3) a description of how the eligible agency will evaluate 
annually the effectiveness of the adult education and literacy 
activities based on the performance measures described in sec-
tion 212; 
(4) a description of the performance measures described 
in section 212 and how such performance measures will ensure 
the improvement of adult education and literacy activities in 
the State or outljdng area; 
(5) an assurance that the eligible agency will award not 
less than one grant under this subtitle to an eligible provider 
who offers flexible schedules and necessary support services 
(such as child care and transportation) to enable individuals, 
including individuals with disabilities, or individuals with other 
special needs, to participate in adult education and literacy 
activities, which eligible provider shall attempt to coordinate 
with support services that are not provided under this subtitle 
prior to using funds for adult education and literacy activities 
provided under this subtitle for support services; 
(6) an assurance that the funds received under this subtitle 
will not be expended for any purpose other than for activities 
under this subtitle; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1069 
(7) a description of how the eHgible agency will fund local 
activities in accordance with the considerations described in 
section 231(e); 
(8) an assurance that the eligible agency will expend the 
funds under this subtitle only in a manner consistent with 
fiscal requirements in section 241; 
(9) a description of the process that will be used for public 
participation and comment with respect to the State plan; 
(10) a description of how the eligible agency will develop 
program strategies for populations that include, at a mini-
mum— 
(A) low-income students; 
(B) individuals with disabilities; 
(C) single parents and displaced homemakers; and 
(D) individuals with multiple barriers to educational 
enhancement, including individuals with limited English 
proficiency; 
(11) a description of how the adult education and literacy 
activities that will be carried out with any funds received 
under this subtitle will be integrated with other adult edu-
cation, career development, and employment and training 
activities in the State or outlying area served by the eligible 
agency; and 
(12) a description of the steps the eligible agency will 
take to ensure direct and equitable access, as required in section 
231(c)(1). 
(c) PLAN REVISIONS.—^When changes in conditions or other fac-
tors require substantial revisions to an approved State plan, the 
eligible agency shall submit the revisions to the State plan to 
the Secretary. 
(d) CONSULTATION.—The eligible agency shall— 
(1) submit the State plan, and any revisions to the State 
plan, to the Governor of the State or outlying area for review 
and comment; and 
(2) ensure that any comments by the Governor regarding 
the State plan, and any revision to the State plan, are submit-
ted to the Secretary. 
(e) PEER REVIEW.—^The Secretary shall establish a peer review 
process to make recommendations regarding the approval of State 
plans. 
(f) PLAN APPROVAL.—^A State plan submitted to the Secretary 
shall be approved by the Secretary unless the Secretary makes 
a written determination, within 90 days after receiving the plan, 
that the plan is inconsistent with the specific provisions of this 
subtitle. 
SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER 
20 USC 9225. 
INSTITUTIONALIZED INDIVIDUALS. 
(a) PROGRAM AUTHORIZED.—^From funds made available under 
section 222(a)(1) for a fiscal year, each eligible agency shall carry 
out corrections education or education for other institutionalized 
individuals. 
(b) USES OF FUNDS.—^The funds described in subsection (a) 
shall be used for the cost of educational programs for criminal 
offenders in correctional institutions and for other institutionalized 
individuals, including academic programs for— 
(1) basic education; 
112 STAT. 1070 
PUBLIC LAW 105-220—AUG. 7, 1998 
(2) special education programs as determined by the eligible 
agency; 
(3) English literacy programs; and 
(4) secondary school credit programs. 
(c) PRIORITY.—^Each eligible agency that is using assistance 
provided under this section to carry out a program for criminal 
offenders in a correctional institution shall give priority to serving 
individuals who are likely to leave the correctional institution with 
5 years of participation in the program. 
(d) DEFINITION OF CRIMINAL OFFENDER.— 
(1) CRIMINAL OFFENDER.—^The term "criminal offender" 
means any individual who is charged with or convicted of 
any criminal offense. 
(2) CORRECTIONAL INSTITUTION.—^The term "correctional 
institution" mesins any— 
(A) prison; 
(B)jail; 
(C) reformatory; 
(D) work farm; 
(E) detention center; or 
(F) halfway house, community-based rehabilitation 
center, or any other similar institution designed for the 
confinement or rehabilitation of criminal offenders. 
CHAPTER 3—LOCAL PROVISIONS 
20 use 9241. 
SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS. 
(a) GRAJSTTS AND CONTRACTS.—From grant funds made available 
under section 211(b), each eligible agency shall award multiyear 
grants or contracts, on a competitive basis, to eligible providers 
within the State or outlying area to enable the eligible providers 
to develop, implement, and improve adult education and literacy 
activities within the State. 
(b) REQUIRED LOCAL ACTIVITIES.—^The eligible agency shall 
require that each eligible provider receiving a grant or contract 
under subsection (a) use the grant or contract to establish or operate 
one or more programs that provide services or instruction in one 
or more of the following categories: 
(1) Adult education and literacy services, including work-
place literacy services. 
(2) Family literacy services. 
(3) English literacy programs. 
(c) DIRECT AND EQUITABLE ACCESS; SAME PROCESS.—^Each 
eligible agency receiving funds under this subtitle shall ensure 
thatr-
(1) all eligible providers have direct and equitable access 
to apply for grants or contracts under this section; and 
(2) the same grant or contract announcement process and 
application process is used for all eligible providers in the 
State or outlying area. 
(d) SPECIAL RULE.—^Each eligible agency awarding a grant or 
contract under this section shall not use any funds made available 
under this subtitle for adult education and literacy activities for 
the purpose of supporting or providing programs, services, or activi-
ties for individuals who are not individuals described in subpara-
graphs (A) and (B) of section 203(1), except that such agency may 
use such funds for such purpose if such programs, services, or 
" t >•>•:'"- 
f-^J^f^-
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1071 
activities are related to family literacy services. In providing family 
literacy services under this subtitle, an eligible provider shall 
attempt to coordinate with programs and services that are not 
assisted under this subtitle prior to using funds for adult education 
and literacy activities under this subtitle for activities other than 
adult education activities. 
(e) CONSIDERATIONS.—In awarding grants or contracts under 
this section, the eligible agency shall consider— 
(1) the degree to which the eligible provider will establish 
measurable goals for participant outcomes; 
(2) the past effectiveness of an eligible provider in improv-
ing the literacy skills of adults and families, and, after the 
1-year period beginning with the adoption of an eligible agency's 
performance measures under section 212, the success of an 
eligible provider receiving funding under this subtitle in meet-
ing or exceeding such performance measures, especially with 
respect to those adults with the lowest levels of literacy; 
(3) the commitment of the eligible provider to serve individ-
uals in the community who are most in need of literacy services, 
including individuals who are low-income or have minimal 
literacy skills; 
(4) whether or not the program— 
(A) is of sufficient intensity and duration for partici-
pants to achieve substantial learning gains; and 
(B) uses instructional practices, such as phonemic 
awareness, systematic phonics, fluency, and reading com-
prehension that research has proven to be effective in 
teaching individuals to read; 
(5) whether the activities are built on a strong foundation 
of research and effective educational practice; 
(6) whether the activities effectively employ advances in 
technology, as appropriate, including the use of computers; 
(7) whether the activities provide learning in real life con-
texts to ensure that an individual has the skills needed to 
compete in the workplace and exercise the rights and respon-
sibilities of citizenship; 
(8) whether the activities are staffed by well-trained 
instructors, counselors, and administrators; 
(9) whether the activities coordinate with other available 
resources in the community, such as by establishing strong 
links with elementary schools and secondary schools, post-
secondary educational institutions, one-stop centers, job train-
ing programs, and social service agencies; 
(10) whether the activities offer flexible schedules and sup-
port services (such as child care and transportation) that are 
necessary to enable individuals, including individuals with 
disabilities or other special needs, to attend and complete pro-
grams; 
(11) whether the activities maintain a high-quality informa-
tion management system that has the capacity to report partici-
pant outcomes and to monitor program performance against 
the eligible agency performance measures; and 
(12) whether the local communities have a demonstrated 
need for additional English literacy programs. 
112 STAT. 1072 
PUBLIC LAW 105-220—AUG. 7, 1998 
20 use 9242. 
SEC. 232. LOCAL APPUCATION. 
Each eligible provider desiring a grant or contract under this 
subtitle shall submit an application to the eligible agency containing 
such information and assurances as the eligible agency may require, 
including— 
(1) a description of how funds awarded under this subtitle 
will be spent; and 
(2) a description of any cooperative arrangements the 
eligible provider has with other agencies, institutions, or 
organizations for the delivery of adult education and literacy 
activities. 
20 use 9243. 
SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS. 
(a) IN GENERAL.—Subject to subsection (b), of the amount that 
is made available under this subtitle to an eligible provider— 
(1) not less than 95 percent shall be expended for carrying 
out adult education and literacy activities; and 
(2) the remaining amount, not ta exceed 5 percent, shall 
be used for planning, administration, "personnel development, 
and interagency coordination. 
(b) SPECIAL RULE.—In cases where the cost limits described 
in subsection (a) are too restrictive to allow for adequate planning, 
administration, personnel development, and interagency coordina-
tion, the eligible provider shall negotiate with the eligible agency 
in order to determine an adequate level of funds to be used for 
noninstructional purposes. 
CHAPTER 4—GENERAL PROVISIONS 
20 use 9251. 
SEC. 241. ADMINISTRATIVE PROVISIONS. 
(a) SUPPLEMENT NOT SUPPLANT.—^Funds made available for 
adult education and literacy activities under this subtitle shall 
supplement and not supplant other State or local public funds 
expended for adult education and literacy activities. 
(b) MAINTENANCE OF EFFORT.— 
(1) IN GENERAL.— 
(A) DETERMINATION.—^An eligible agency may receive 
funds under this subtitle for any fiscal year if the Secretary 
finds that the fiscal effort per student or the aggregate 
^" 
expenditures of such eligible agency for adult education 
and literacy activities, in the second preceding fiscal year, 
was not less than 90 percent of the fiscal effort per student 
or the aggregate expenditures of such eligible agency for 
adult education and literacy activities, in the third preced-
^ 
ing fiscal year. 
(B) 
PROPORTIONATE 
REDUCTION.—Subject to para-
graphs (2), (3), and (4), for any fiscal year with respect 
to which the Secretary determines under subparagraph 
(A) that the fiscal effort or the aggregate expenditures 
of an eligible agency for the preceding program year were 
less than such effort or expenditures for the second preced-
ing program year, the Secretary— 
(i) shall determine the percentage decreases in 
such effort or in such expenditures; and 
(ii) shall decrease the payment made under this 
subtitle for such program year to the agency for adult 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1073 
education and literacy activities by the lesser of such 
percentages. 
(2) COMPUTATION.—In computing the fiscal effort and 
aggregate expenditures under paragraph (1), the Secretary shall 
exclude capital expenditures and special one-time project costs. 
(3) DECREASE IN FEDERAL SUPPORT.—If the amount made 
available for adult education and literacy activities under this 
subtitle for a fiscal year is less than the amount made available 
for adult education and literacy activities under this subtitle 
for the preceding fiscal year, then the fiscal effbrt per student 
and the aggregate expenditures of an eligible agency required 
in order to avoid a reduction under paragraph (1)(B) shall 
be decreased by the same percentage as the percentage decrease 
in the amount so made available. 
(4) WAIVER.—^The Secretary may waive the requirements 
of this subsection for 1 fiscal year only, if the Secretary deter-
mines that a waiver would be equitable due to exceptional 
or uncontrollable circumstances, such as a natural disaster 
or an unforeseen and precipitous decline in the 
financial 
resources of the State or outlying area of the eligible agency. 
If the Secretary grants a waiver under the preceding sentence 
for a fiscal year, the level of effort required under paragraph 
(1) shall not be reduced in the subsequent fiscal year because 
of the waiver. 
SEC. 242. NATIONAL INSTITUTE FOR LITERACY. 
20 USC 9252. 
(a) PURPOSE.—The purpose of this section is to establish a 
National Institute for Literacy that— 
(1) provides national leadership regarding literacy; 
(2) coordinates literacy services and policy; and 
(3) serves as a national resource for adult education and 
literacy programs by— 
(A) providing the best and most current information 
available, including the work of the National Institute of 
Child Health and Human Development in the area of 
phonemic awareness, systematic phonics, fluency, and read-
ing comprehension, to all recipients of Federal assistance 
that focuses on reading, including programs under titles 
I and VII of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6301 et seq. and 7401 et seq.), 
the Head Start Act (42 U.S.C. 9831 et seq.), the Individuals 
with Disabilities Education Act (20 U.S.C. 1400 et seq.), 
and this Act; and 
(B) supporting the creation of new ways to offer serv-
ices of proven effectiveness. 
(b) ESTABLISHMENT.— 
(1) IN GENERAL.—^There is established the 
National 
Institute for Literacy (in this section referred to as the 
"Institute"). The Institute shall be administered under the 
terms of an interagency agreement entered into by the Sec-
retary of Education with the Secretary of Labor and the Sec-
retary of Health and Human Services (in this section referred 
to as the "Interagency Group"). The Interagency Group may 
include in the Institute any research and development center, 
institute, or clearinghouse established within the Department 
of Education, the Department of Labor, or the Department 
112 STAT. 1074 
PUBLIC LAW 105-220—AUG. 7, 1998 
of Health and Human Services the purpose of which is deter-
mined by the Interagency Group to be related to the purpose 
of the Institute. 
(2) OFFICES.—^The Institute shall have offices separate from 
the offices of the Department of Education, the Department 
of Labor, and the Department of Health and Human Services. 
(3) RECOMMENDATIONS.—The Interagency Group shall con-
sider the recommendations of the National Institute for Literacy 
Advisory Board (in this section referred to as the "Board") 
established under subsection (e) in planning the goals of the 
Institute and in the implementation of any programs to achieve 
the goals. If the Board's recommendations are not followed, 
the Interagency Group shall provide a written explanation to 
the Board concerning actions the Interagency Group takes that 
are inconsistent with the Board's recommendations, including 
the reasons for not following the Board's recommendations with 
respect to the actions. The Board may also request a meeting 
of the Interagency Group to discuss the Board's recommenda-
tions. 
(4) 
DAILY 
OPERATIONS.—The daily operations 
of the 
Institute shall be administered by the Director of the Institute, 
(c) DUTIES.— 
(1) IN GENERAL.—In order to provide leadership for the 
improvement and expansion of the system for delivery of 
literacy services, the Institute is authorized— 
(A) to establish a national electronic data base of 
information that disseminates information to the broadest 
possible audience within the literacy and basic skills field, 
and that includes— 
(i) effective practices in the provision of literacy 
and basic skills instruction, including instruction in 
phonemic awareness, systematic phonics, fluency, and 
reading comprehension, and the integration of literacy 
and basic skills instruction with occupational skills 
training; 
(ii) public and private literacy and basic skills 
programs, and Federal, State, and local policies, 
affecting the provision of literacy services at the 
national. State, and local levels; 
(iii) 
opportunities 
for 
technical 
assistance, 
meetings, conferences, and other opportunities that 
lead to the improvement of literacy and basic skills 
services; and 
(iv) a communication network for literacy pro-
grams, providers, social service agencies, and students; 
(B) to coordinate support for the provision of literacy 
and basic skills services across Federal agencies and at 
the State and local levels; 
(C) to coordinate the support of reliable and replicable 
research and development on literacy and basic skills in 
families and adults across Federal agencies, especially with 
the Office of Educational Research and Improvement in 
the Department of Education, and to carry out basic and 
applied research and development on topics that are not 
being investigated by other organizations or agencies, such 
as the special literacy needs of individuals with learning 
disabilities; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1075 
(D) to collect and disseminate information on methods 
of advancing literacy that show great promise, including 
phonemic awareness, systematic phonics, fluency, and read-
ing comprehension based on the work of the National 
Institute of Child Health and Human Development; 
(E) to provide policy and technical assistance to Fed-
eral, State, and local entities for the improvement of policy 
and programs relating to literacy; 
(F) to fund a network of State or regional adult literacy 
resource centers to assist State and local public and private 
nonprofit efforts to improve literacy by— 
(i) 
encouraging 
the 
coordination 
of 
literacy 
services; 
(ii) enhancing the capacity of State and local 
organizations to provide literacy services; and 
(iii) serving as a link between the Institute and 
providers of adult education and literacy activities for 
the purpose of sharing information, data, research, 
expertise, and literacy resources; 
(G) to coordinate and share information with national 
organizations and associations that are interested in lit-
eracy and workforce investment activities; 
(H) to advise Congress and Federal departments and 
agencies regarding the development of policy with respect 
to literacy and basic skills; and 
(I) to undertake other activities that lead to the 
improvement of the Nation's literacy delivery system and 
that complement other such efforts being undertaken by 
public and private agencies and organizations. 
(2) GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS.— 
The Institute may award grants to, or enter into contracts 
or cooperative agreements with, individuals, public or private 
institutions, agencies, organizations, or consortia of such 
institutions, agencies, or organizations to carry out the activities 
of the Institute. 
(d) LITERACY LEADERSHIP.— 
(1) IN GENERAL.—^The Institute, in consultation with the 
Board, may award fellowships, with such stipends and allow-
ances that the Director considers necessary, to outstanding 
individuals pursuing careers in adult education or literacy in 
the areas of instruction, management, research, or innovation. 
(2) FELLOWSHIPS.—Fellowships awarded under this sub-
section shall be used, under the auspices of the Institute, to 
engage in research, education, training, technical assistance, 
or other activities to advance the field of adult education or 
literacy, including the training of volunteer literacy providers 
at the national. State, or local level. 
(3) INTERNS AND VOLUNTEERS.—^The Institute, in consulta-
tion with the Board, may award paid and unpaid internships 
to individuals seeking to assist the Institute in carrying out 
its mission. Notwithstanding section 1342 of title 31, United 
States Code, the Institute may accept and use voluntary and 
uncompensated services as the Institute determines necessary. 
(e) NATIONAL INSTITUTE FOR LITERACY ADVISORY BOARD.— 
(1) ESTABLISHMENT.— 
(A) IN GENERAL.—There shall be a National Institute President. 
for Literacy Advisory Board (in this section referred to 
112 STAT. 1076 
PUBLIC LAW 105-220—AUG. 7, 1998 
as the "Board"), which shall consist of 10 individuals 
appointed by the President with the advice and consent 
of the Senate. 
(B) COMPOSITION.—The Board shall be comprised of 
individuals who are not otherwise officers or employees 
of the Federal Government and who are representative 
of entities such as— 
(i) literacy organizations and providers of literacy 
services, including nonprofit providers, providers of 
English literacy programs and services, social service 
organizations, and eligible providers receiving assist-
ance under this subtitle; 
(ii) businesses that have demonstrated interest in 
literacy programs; 
(iii) literacy students, including literacy students 
with disabilities; 
(iv) experts in the area of literacy research; 
(v) State and local governments; 
(vi) State Directors of adult education; and 
(vii) 
representatives 
of employees, 
including 
representatives of labor organizations. 
(2) DUTIES.—The Board shall— 
(A) make recommendations concerning the appoint-
ment of the Director and staff of the Institute; 
(B) provide independent advice on the operation of 
the Institute; and 
(C) receive reports from the Interagency Group and 
the Director. 
(3) FEDERAL ADVISORY COMMITTEE ACT.—Except as other-
wise provided, the Board established by this subsection shall 
be subject to the provisions of the Federal Advisory Committee 
Act(5U.S.C.App.). 
(4) APPOINTMENTS.— 
(A) IN GENERAL.—^Each member of the Board shall 
be appointed for a term of 3 years, except that the initial 
terms for members may be 1, 2, or 3 years in order to 
establish a rotation in which one-third of the members 
are selected each year. Any such member may be appointed 
for not more than 2 consecutive terms. 
(B) VACANCIES.—^Any member appointed to fill a 
vacancy occurring before the expiration of the term for 
which the member's predecessor was appointed shall be 
appointed only for the remainder of that term. A member 
may serve after the expiration of that member's term until 
a successor has taken office. 
(5) QUORUM.—^A majority of the members of the Board 
shall constitute a quorum but a lesser number may hold hear-
ings. Any recommendation of the Board may be passed only 
by a majority of the Board's members present. 
(6) ELECTION OF OFFICERS.—The Chairperson and Vice 
Chairperson of the Board shall be elected by the members 
of the Board. The term of office of the Chairperson and Vice 
Chairperson shall be 2 years. 
(7) MEETINGS.—^The Board shall meet at the call of the 
Chairperson or a majority of the members of the Board. 
(f) GIFTS, BEQUESTS, AND DEVISES.— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1077 
(1) IN GENERAL.—^The Institute may accept, administer, 
and use gifts or donations of services, money, or property, 
whether real or personal, tangible or intangible. 
(2) RULES.—^The Board shall establish written rules setting 
forth the criteria to be used by the Institute in determining 
whether the acceptance of contributions of services, money, 
or property whether real or personal, tangible or intangible, 
would reflect unfavorably upon the ability of the Institute or 
any employee to carry out the responsibilities of the Institute 
or employee, or official duties, in a fair and objective manner, 
or would compromise the integrity or the appearance of the 
integrity of the Institute's programs or any official involved 
• 
in those programs. 
(g) MAILS.—^The Board and the Institute may use the United 
States mails in the same manner and under the same conditions 
as other departments and agencies of the United States. 
(h) STAFF.—^The Interagency Group, after considering rec-
ommendations made by the Board, shall appoint and fix the pay 
of a Director. 
(i) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.—The Direc-
tor and staff of the Institute may be appointed without regard 
to the provisions of title 5, United States Code, governing appoint-
ments in the competitive service, and may be paid without regard 
to the provisions of chapter 51 and subchapter III of chapter 53 
of that title relating to classification and General Schedule pay 
rates, except that an individual so appointed may not receive pay 
in excess of the annual rate of basic pay payable for level IV 
of the Executive Schedule. 
(j) EXPERTS AND CONSULTANTS.—The Institute may procure 
temporary and intermittent services under section 3109(b) of title 
5, United States Code. 
(k) REPORT.—^The Institute shall submit a report biennially 
to the Committee on Education and the Workforce of the House 
of Representatives and the Committee on Labor and Human 
Resources of the Senate. Each report submitted under this sub-
section shall include— 
(1) a comprehensive and detailed description of the 
Institute's operations, activities, financial condition, and accom-
plishments in the field of literacy for the period covered by 
the report; 
(2) a description of how plans for the operation of the 
Institute for the succeeding 2 fiscal years will facilitate achieve-
ment of the goals of the Institute and the goals of the literacy 
programs within the Department of Education, the Department 
of Labor, and the Department of Health and Human Services; 
and 
(3) any additional minority, or dissenting views submitted 
by members of the Board. 
(1) FUNDING.—^Any amounts appropriated to the Secretary, the 
Secretary of Labor, the Secretary of Health and Human Services, 
or any other department that participates in the Institute for pur-
poses that the Institute is authorized to perform under this section 
may be provided to the Institute for such purposes. 
5&-194 O - 98 - 7: QL 3 Part 2 
112 STAT. 1078 
PUBLIC LAW 105-220—AUG. 7, 1998 
20 use 9253. 
SEC. 243. NATIONAL LEADERSHIP ACTIVITIES. 
The Secretary shall establish and carry out a program of 
national leadership activities to enhance the quality of adult edu-
cation and literacy programs nationwide. Such activities may 
include the following: 
(1) Technical assistance, including— 
(A) assistance provided to eligible providers in develop-
ing and using performance measures for the improvement 
of adult education and literacy activities, including family 
literacy services; 
(B) assistance related to professional development 
activities, and assistance for the purposes of developing, 
improving, identifying, and disseminating the most success-
ful methods and techniques for providing adult education 
and literacy activities, including family literacy services, 
based on scientific evidence where available; and 
(C) assistance in distance learning and promoting and 
improving the use of technology in the classroom. 
(2) Funding national leadership activities that are not 
described in paragraph (1), either directly or through grants, 
contracts, or cooperative agreements awarded on a competitive 
basis to or with postsecondary educational institutions, public 
or private organizations or agencies, or consortia of such institu-
tions, orgEinizations, or agencies, such as— 
(A) developing, improving, and identifying the most 
successful methods and techniques for addressing the edu-
cation needs of adults, including instructional practices 
using phonemic awareness, systematic phonics, fluency, 
and reading comprehension, based on the work of the 
National Institute of Child Health and Human Develop-
ment; 
(B) increasing the effectiveness of, and improving the 
qualify of, adult education and literacy activities, including 
family literacy services; 
(C) carrying out research, such as estimating the num-
ber of adults functioning at the lowest levels of literacy 
proficiency; 
(D)(i) carrying out demonstration programs; 
(ii) developing and replicating model and innovative 
programs, such as the development of models for basic 
skill certificates, identification of effective strategies for 
working with adults with learning disabilities and with 
individuals with limited English proficiency who are adults, 
and workplace literacy programs; and 
(iii) disseminating best practices information, including 
information regarding promising practices resulting from 
federally funded demonstration programs; 
(E) providing for the conduct of an independent evalua-
tion and assessment of adult education and literacy activi-
ties through studies and analyses conducted independently 
through grants and contracts awarded on a competitive 
basis, which evaluation and assessment shall include 
descriptions of— 
(i) the effect of performance measures and other 
measures of accountability on the delivery of adult 
education and literacy activities, including family lit-
eracy services; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1079 
(ii) the extent to which the adult education and 
Hteracy activities, including family literacy services, 
increase the literacy skills of adults (and of children, 
in the case of family literacy services), lead the partici-
pants in such activities to involvement in further edu-
cation and training, enhance the emplo3anent and earn-
ings of such participants, and, if applicable, lead to 
other positive outcomes, such as reductions in recidi-
vism in the case of prison-based adult education and 
literacy activities; 
(iii) the extent to which the provision of support 
services to adults enrolled in adult education and fam-
ily literacy programs increase the rate of enrollment 
in, and successful completion of, such programs; and 
(iv) the extent to which eligible agencies have 
distributed funds under section 231 to meet the needs 
of adults through community-based organizations; 
(F) supporting efforts aimed at capacity building at 
the State and local levels, such as technical assistance 
in program planning, assessment, evaluation, and monitor-
ing of activities carried out under this subtitle; 
(G) collecting data, such as data regarding the improve-
ment of both local and State data systems, through tech-
nical assistance and development of model performance 
data collection systems; and 
(H) other activities designed to enhance the quality 
of adult education and literacy activities nationwide. 
Subtitle B—Repeals 
SEC. 251. REPEALS. 
(a) REPEALS.— 
(1) ADULT EDUCATION ACT.—^The Adult Education Act (20 
U.S.C. 1201 et seq.) is repealed. 
(2) NATIONAL LITERACY ACT OF 1991.—^The National Literacy 
Act of 1991 (20 U.S.C. 1201 note) is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) REFUGEE EDUCATION ASSISTANCE ACT.—Subsection (b) 
of section 402 of the Refugee Education Assistance Act of 1980 
(8 U.S.C. 1522 note) is repealed. 
(2) ELEMENTARY AND SECONDARY EDUCATION ACT OF I965.— 
(A) SECTION 1202 OF ESEA.—Section 1202(c)(1) of the 
Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6362(c)(1)) is amended by striking "Adult Education 
Act" and inserting "Adult Education and Family Literacy 
Act". 
(B) SECTION 1205 OF ESEA.—Section 1205(8)(B) of such 
Act (20 U.S.C. 6365(8)(B)) is amended by striking "Adult 
Education Act" and inserting "Adult Education and Family 
Literacy Act". 
(C) SECTION 1206 OF ESEA.—Section 1206(a)(1)(A) of 
such Act (20 U.S.C. 6366(a)(1)(A)) is amended by striking 
"an adult basic education program under the Adult Edu-
cation Act" and inserting "adult education and literacy 
activities under the Adult Education and Family Literacy 
Act". 
112 STAT. 1080 
PUBLIC LAW 105-220—AUG. 7, 1998 
(D) SECTION 3113 OF ESEA.—Section 3113(1) of such 
Act (20 U.S.C. 6813(1)) is amended by striking "section 
312 of the Adult Education Act" and inserting "section 
203 of the Adult Education and Family Literacy Act". 
(E) SECTION 9161 OF ESEA.—Section 9161(2) of such 
Act (20 U.S.C. 7881(2)) is amended by striking "section 
312(2) of the Adult Education Act" and inserting "section 
203 of the Adult Education and Family Literacy Act". 
(3) OLDER AMERICANS ACT OF I965.—Section 203(b)(8) of 
the Older Americans Act of 1965 (42 U.S.C. 3013(b)(8)) is 
amended by striking "Adult Education Act" and inserting "Adult 
Education and Family Literacy Act". 
TITLE III—WORKFORCE INVESTMENT-
RELATED ACTIVITIES 
Subtitle A—^Wagner-Peyser Act 
SEC. 301. DEFINITIONS. 
Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is 
amended— 
(1) in paragraph (1)— 
(A) by striking "or officials"; and 
(B) by striking "Job Training Partnership Act" and 
inserting "Workforce Investment Act of 1998"; 
(2) by striking paragraphs (2) and (4); 
(3) by redesignating paragraph (3) as paragraph (4); 
(4) by inserting sifter paragraph (1) the following: 
"(2) the term 'local workforce investment board' means 
a local workforce investment board established under section 
117 of the Workforce Investment Act of 1998; 
"(3) the term 'one-stop delivery system' means a one-stop 
delivery system described in section 134(c) of the Workforce 
Investment Act of 1998;"; and 
(5) in paragraph (4) (as redesignated in paragraph (3)), 
by striking the semicolon and inserting "; and". 
SEC. 302. FUNCTIONS. 
(a) IN GENERAL.—Section 3 of the Wagner-Peyser Act (29 U.S.C. 
49b) is amended— 
(1) in subsection (a), by striking "United States Employ-
ment Service" and inserting "Secretary"; and 
(2) by adding at the end the following: 
"(c) The Secretary shall— 
"(1) assist in the coordination and development of a nation-
wide system of public labor exchange services, provided as 
part of the one-stop customer service systems of the States; 
"(2) assist in the development of continuous improvement 
models for such nationwide system that ensure private sector 
satisfaction with the system and meet the demands of job-
seekers relating to the system; and 
"(3) ensure, for individuals otherwise eligible to receive 
unemployment compensation, the provision of reemplo3rment 
services and other activities in which the individuals are 
required to participate to receive the compensation.". 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1081 
(b) CONFORMING AMENDMENTS.—Section 508(b)(1) of the 
Unemployment Compensation Amendments of 1976 (42 U.S.C. 
603a(b)( D) is amended— 
42 USC 655a. 
(1) by striking "the third sentence of section 3(a)" and 
inserting "section 3(b)"; and 
(2) by striking "49b(a)" and inserting "49b(b)". 
SEC. 303. DESIGNATION OF STATE AGENCIES. 
Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is 
amended— 
(1) by striking ", through its legislature," and inserting 
", pursuant to State statute/'; 
(2) by inserting after "the provisions of this Act and" the 
following: ", in accordance with such State statute, the Governor 
shall"; and 
(3) by striking "United States Employment Service" and 
inserting "Secretary". 
SEC. 304. APPROPRIATIONS. 
Section 5(c) of the Wagner-Peyser Act (29 U.S.C. 49d(c)) is 
amended by striking paragraph (3). 
SEC. 305. DISPOSITION OF ALLOTTED FUNDS. 
Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is 
amended— 
(1) in subsection (b)(2), by striking "private industry coun-
cil" and inserting "local workforce investment board"; 
(2) in subsection (c)(2), by striking "any program under" 
and all that follows and inserting "any workforce investment 
activity carried out under the Workforce Investment Act of 
1998."; 
(3) in subsection (d)— 
(A) by striking "United States Employment Service" 
and inserting "Secretar}^"; and 
(B) by striking "Job Training Partnership Act" and 
inserting "Workforce Investment Act of 1998"; and 
(4) by adding at the end the following: 
"(e) All job search, placement, recruitment, labor employment 
statistics, and other labor exchange services authorized under sub-
section (a) shall be provided, consistent with the other requirements 
of this Act, as part of the one-stop delivery system established 
by the State.". 
SEC. 306. STATE PLANS. 
Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is 
amended— 
(1) in subsection (a) to read as follows: 
"(a) Any State desiring to receive assistance under this Act 
shall submit to the Secretary, as part of the State plan submitted 
under section 112 of the Workforce Investment Act of 1998, detailed 
plans for carrying out the provisions of this Act within such State."; 
(2) by striking subsections (b) and (c); 
(3) by redesignating subsection (d) as subsection (b); 
(4) by inserting after subsection (b) (as redesignated by 
paragraph (3)) the following: 
"(c) The part of the State plan described in subsection (a) 
shall include the information described in paragraphs (8) and (14) 
of section 112(b) of the Workforce Investment Act of 1998."; 
112 STAT. 1082 
PUBLIC LAW 105-220—AUG. 7, 1998 
(5) by redesignating subsection (e) as subsection (d); and 
(6) in subsection (d) (as redesignated in paragraph (5)), 
by striking "such plans" and inserting "such detailed plans". 
SEC. 307. REPEAL OF FEDERAL ADVISORY COUNCIL. 
Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is 
amended— 
(1) by striking "11." and all that follows through "(b) In" 
and inserting "11. In"; and 
(2) by striking "Director" and inserting "Secretary". 
SEC. 308. REGULATIONS. 
Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k) is amended 
by striking "The Director, with the approval of the Secretary of 
Labor," and inserting 'The Secretary". 
SEC. 309. EMPLOYMENT STATISTICS. 
The Wagner-Peyser Act is amended— 
(1) by redesignating section 15 (29 U.S.C. 49 note) as 
section 16; and 
(2) by inserting after section 14 (29 U.S.C. 491-1) the 
following: 
29USC49/-2. 
"SEC. 15. EMPLOYMENT STATISTICS. 
"(a) SYSTEM CONTENT.— 
"(1) IN GENERAL.—^The Secretary, in accordance with the 
provisions of this section, shall oversee the development, 
maintenance, and continuous improvement of a nationwide 
employment statistics system of employment statistics that 
includes— 
"(A) statistical data from cooperative statistical survey 
and projection programs and data from administrative 
reporting systems that, taken together, enumerate, esti-
mate, and project emplojnnent opportunities and conditions 
at national. State, and local levels in a timely manner, 
including statistics on— 
"(i) emplojrment and unemployment status of 
national. State, £ind local populations, including self-
employed, part-time, and seasonal workers; 
"(ii) industrial distribution of occupations, as well 
as current and projected emplojrment opportunities, 
wages, benefits (where data is available), and skill 
trends by occupation and industry, with particular 
attention paid to State and local conditions; 
"(iii) the incidence of, industrial and geographical 
location of, and number of workers displaced by, 
permanent layoffs and plant closings; and 
' 
"(iv) employment and earnings information main-
tained in a longitudinal manner to be used for research 
and program evaluation; 
"(B) information on State and local emplo3nnent 
opportunities, and other appropriate statistical data related 
to labor market djniamics, which— 
"(i) shall be current and comprehensive; 
"(ii) shall meet the needs identified through the 
consultations described in subparagraphs (A) and (B) 
of subsection (e)(2); and 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1083 
"(iii) shall meet the needs for the information 
identified in section 134(d); 
"(C) technical standards (which the Secretary shall 
publish annually) for data and information described in 
subparagraphs (A) and (B) that, at a minimum, meet the 
criteria of chapter 35 of title 44, United States Code; 
"(D) procedures to ensure compatibility and additivity 
of the data and information described in subparagraphs 
(A) and (B) from national, State, and local levels; 
"(E) 
procedures 
to 
support 
standardization 
and 
aggregation of data from administrative reporting systems 
described in subparagraph (A) of employment-related pro-
grams; 
"(F) analysis of data and information described in sub-
paragraphs (A) and (B) for uses such as— 
"(i) national. State, and local policjonaking; 
"(ii) implementation of Federal policies (including 
allocation formulas); 
"(iii) program planning and evaluation; and 
"(iv) researching labor market dynamics; 
"(G) wide dissemination of such data, information, and 
analysis in a user-friendly manner and voluntary technical 
standards for dissemination mechanisms; and 
"(H) programs of— 
"(i) training for effective data dissemination; 
"(ii) research and demonstration; and 
"(iii) programs and technical assistance. 
"(2) INFORMATION TO BE CONFIDENTIAL.— 
"(A) IN GENERAL.—^No officer or employee of the Federal 
Grovemment or agent of the Federal Government may— 
"(i) use any submission that is furnished for exclu-
sively statistical purposes under the provisions of this 
section for any purpose other than the statistical pur-
poses of this section for which the submission is fur-
nished; 
"(ii) make any publication or media transmittal 
of the data contained in the submission described in 
clause (i) that permits information concerning individ-
ual subjects to be reasonably inferred by either direct 
or indirect means; or 
"(iii) permit anyone other than a sworn officer, 
employee, or agent of any Federal department or 
agency, or a contractor (including an employee of a 
contractor) of such department or agency, to examine 
an individual submission described in clause (i); 
without the consent of the individual, agency, or other 
person who is the subject of the submission or provides 
that submission. 
"(B) IMMUNITY FROM LEGAL PROCESS.—Any submission 
(including any data derived from the submission) that is 
collected and retained by a Federal department or agency, 
or an officer, employee, agent, or contractor of such a 
department or agency, for exclusively statisticsd purposes 
under this section shall be immune from the legal process 
and shall not, without the consent of the individual, agency, 
or other person who is the subject of the submission or 
provides that submission, be admitted as evidence or used 
112 STAT. 1084 
PUBLIC LAW 105-220—AUG. 7, 1998 
for any purpose in any action, suit, or other judicial or 
administrative proceeding. 
"(C) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to provide immunity from the legal 
process for such submission (including any data derived 
from the submission) if the submission is in the possession 
of any person, agency, or entity other than the Federal 
Gt)vemment or an officer, employee, agent, or contractor 
of the Federal Government, or if the submission is 
independently collected, retained, or produced for purposes 
other than the purposes of this Act. 
"(b) SYSTEM RESPONSIBILITIES.— 
"(1) IN GENERAL.—^The emplo3nnent statistics 
system 
described in subsection (a) shall be planned, administered, over-
seen, and evaluated through a cooperative governance structure 
involving the Federal Government and States. 
"(2) DUTIES.—^The Secretary, with respect to data collection, 
analysis, and dissemination of labor employment statistics for 
the system, shall carry out the following duties: 
"(A) Assign responsibilities within the Department of 
Labor for elements of the employment statistics system 
described in subsection (a) to ensure that all statistical 
and administrative data collected is consistent with appro-
priate Bureau of Labor Statistics standards and definitions. 
"(B) Actively seek the cooperation of other Federal 
agencies to establish and maintain mechanisms for ensur-
ing complementarity and nonduplication in the develop-
ment and operation of statistical and administrative data 
collection activities. 
"(C) Eliminate gaps and duplication in statistical 
undertakings, with the systemization of wage surveys as 
an early priority. 
"(D) In collaboration with the Bureau of Labor Statis-
tics and States, develop and maintain the elements of 
the employment statistics system described in subsection 
(a), including the development of consistent procedures and 
definitions for use by the States in collecting the data 
and information described in subparagraphs (A) and (B) 
of subsection (a)(1). 
Procedures. 
"(E) Establish procedures for the system to ensure 
that— 
"(i) such data and information are timely; 
"(ii) paperwork and reporting for the system are 
reduced to a minimum; and 
"(iii) States and localities are fully involved in 
the development and continuous improvement of the 
system at all levels, including ensuring the provision, 
to such States and localities, of budget information 
necessary for carrying out their responsibilities under 
subsection (e). 
"(c) ANNUAL PLAN.—^The Secretary, working through the 
Bureau of Labor Statistics, and in cooperation with the States, 
and with the assistance of other appropriate Federal agencies, 
shall prepare an annual plan which shall be the mechanism for 
achieving cooperative management of the nationwide employment 
statistics system described in subsection (a) and the statewide 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1085 
emplo3niient statistics systems that comprise the nationwide system. 
The plan shall— 
"(1) describe the steps the Secretary has taken in the 
preceding year and will take in the following 5 years to carry 
out the duties described in subsection (b)(2); 
"(2) include a report on the results of an annual consumer Reports, 
satisfaction review concerning the performance of the system, 
including the performance of the system in addressing the 
needs of Congress, States, localities, employers, jobseekers, and 
other consumers; 
"(3) evaluate the performance of the system and recommend 
needed improvements, taking into consideration the results 
of the consumer satisfaction review, with particular attention 
to the improvements needed at the State and local levels; 
"(4) justify the budget request for annual appropriations 
by describing priorities for the fiscal year succeeding the fiscal 
year in which the plan is developed and priorities for the 
5 subsequent fiscal years for the system; 
"(5) describe current (as of the date of the submission 
of the plan) spending and spending needs to carry out activities 
under this section, including the costs to States and localities 
of meeting the requirements of subsection (e)(2); and 
"(6) describe the involvement of States in the development 
of the plan, through formal consultations conducted by the 
Secretary in cooperation with representatives of the Governors 
of every State, and with representatives of local workforce 
investment boards, pursuant to a process established by the 
Secretary in cooperation with the States. 
"(d) COORDINATION WITH THE STATES.—^The Secretary, working 
through the Bureau of Labor Statistics, and in cooperation with 
the States, shall— 
"(1) develop the annual plan described in subsection (c) 
and address other employment statistics issues by holding for-
mal consultations, at least once each quarter (beginning with 
the calendar quarter in which the Workforce Investment Act 
of 1998 is enacted) on the products and administration of the 
nationwide employment statistics system; and 
"(2) hold the consultations with representatives from each 
of the 10 Federal regions of the Department of Labor, elected 
(pursuant to a process established by the Secretary) by and 
from the State emplo3anent statistics directors afiiliated with 
the State agencies that perform the duties described in sub-
section (e)(2). 
"(e) STATE RESPONSIBILITIES.— 
"(1) DESIGNATION OF STATE AGENCY.—In order to receive 
Federal financial assistance under this section, the Grovernor 
of a State shall— 
"(A) designate a single State agency to be responsible 
for the management of the portions of the employment 
statistics system described in subsection (a) that comprise 
a statewide employment statistics system and for the 
State's participation in the development of the annual plan; 
and 
"(B) establish a process for the oversight of such sys-
tem. 
"(2) DUTIES.—In order to receive Federal financial assist-
ance under this section, the State agency shall— 
112 STAT. 1086 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(A) consult with State and local employers, partici-
{)ants, and local workforce investment boards about the 
abor market relevance of the data to be collected and 
disseminated through the statewide employment statistics 
system; 
"(B) consult with State educational agencies and local 
educational agencies concerning the provision of employ-
ment statistics in order to meet the needs of secondary 
school and postsecondary school students who seek such 
information; 
"(C) collect and disseminate for the system, on behalf 
of the State and localities in the State, the information 
and data described in subparagraphs (A) and (B) of sub-
section (a)(1); 
"(D) maintain and continuously improve the statewide 
employment statistics system in accordance with this sec-
tion; 
"(E) perform contract and grant responsibilities for 
data collection, analysis, and dissemination for such sys-
tem; 
"(F) conduct such other data collection, analysis, and 
dissemination activities as will ensure an effective state-
wide employment statistics system; 
"(G) actively seek the participation of other State and 
local agencies in data collection, analysis, and dissemina-
tion activities in order to ensure complementary, compat-
ibility, and usefulness of data; 
"(H) participate in the development of the annual plan 
described in subsection (c); and 
"(I) utilize the quarterly records described in section 
136(f)(2) of the Workforce Investment Act of 1998 to assist 
the State and other States in measuring State progress 
on State performance measures. 
"(3) RULE OF CONSTRUCTION.—^Nothing in this section shall 
be construed as limiting the ability of a State agency to conduct 
additional data collection, analysis, and dissemination activities 
with State funds or with Federal funds from sources other 
than this section. 
"(f) NoNDUPLiCATiON REQUIREMENT.—^None of the functions 
and activities carried out pursuant to this section shall duplicate 
the functions and activities carried out under the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 2301 
et seq.). 
"(g) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for each of the fiscal years 1999 through 2004. 
"(h) DEFINITION.—^In this section, the term 'local area' means 
the smallest geographical area for which data can be produced 
with statistical reliability.". 
SEC. 310. TECHNICAL AMENDMENTS. 
Sections 3(b), 6(b)(1), and 7(d) of the Wagner-Peyser Act (29 
U.S.C. 49b(b), 49e(b)(l), and 49fld)) are amended by striking "Sec-
retary of Labor" and inserting "Secretary". 
29 u s e 49a note. 
SEC. 311. EFFECTIVE DATE. 
The amendments made by this subtitle shall take effect on 
July 1, 1999. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1087 
Subtitle B—^Linkages With Other Programs 
SEC. 321. TRADE ACT OF 1974. 
Section 239 of the Trade Act of 1974 (19 U.S.C. 2311) is 
amended by adding at the end the following: 
"(g) In order to promote the coordination of workforce invest-
ment activities in each State with activities carried out under 
this chapter, any agreement entered into under this section shall 
provide that the State shall submit to the Secretary, in such form 
as the Secretary may require, the description and information 
described in paragraphs (8) and (14) of section 112(b) of the 
Workforce Investment Act of 1998.". 
SEC. 322. VETERANS' EMPLOYMENT PROGRAMS. 
Chapter 41 of title 38, United States Code, is amended by 
adding at the end the following: 
*'§ 4110B. Coordination and nonduplication 
"In carrying out this chapter, the Secretary shall require that 
an appropriate administrative entity in each State enter into an 
agreement with the Secretary regarding the implementation of this 
Act that includes the description and information described in para-
graphs (8) and (14) of section 112(b) of the Workforce Investment 
Act of 1998.". 
SEC. 323. OLDER AMERICANS ACT OF 1965. 
Section 502(b)(1) of the Older Americans Act of 1965 (42 U.S.C. 
3056(b)(1)) is amended— 
(1) in subparagraph (O), by striking "; and" and inserting 
a semicolon; 
(2) in subparagraph (P), by striking the period and inserting 
"; and"; and 
(3) by adding at the end the following subparagraph: 
"(Q) will provide to the Secretary the description and 
information described in paragraphs (8) and (14) of section 
112(b) of the Workforce Investment Act of 1998.". 
Subtitle C—Twenty-First Century 
Workforce Commission 
SEC. 331. SHORT TITLE. 
This subtitle may be cited as the 'Twenty-First Century 
Workforce Commission Act". 
SEC. 332. FINDINGS. 
Congress finds that— 
(1) information technology is one of the fastest growing 
areas in the United States economy; 
(2) the United States is a world leader in the information 
technology industry; 
(3) the continued growth and prosperity of the information 
technology industry is important to the continued prosperity 
of the United States economy; 
Twenty-First 
Century 
Workforce 
Commission Act. 
29 use 2701 
note. 
112 STAT. 1088 
PUBLIC LAW 105-220—AUG. 7, 1998 
(4) highly skilled employees are essential for the success 
of business entities in the information technology industry and 
other business entities that use information technology; 
(5) employees in information technology jobs are highly 
paid; 
(6) as of the date of enactment of this Act, these employees 
are in high demand in all industries and all regions of the 
United States; and 
(7) through a concerted effort by business entities, the 
Federal Grovernment, the governments of States and political 
subdivisions of States, and educational institutions, more 
individuals will gain the skills necessary to enter into a tech-
nology-based job market, ensuring that the United States 
remains the world leader in the information technology indus-
try. 
SEC. 333. DEFINITIONS. 
In this subtitle: 
(1) BUSINESS ENTITY.—^The term '^business entity" means 
a firm, corporation, association, partnership, consortium, joint 
venture, or other form of enterprise. 
(2) COMMISSION.—The term "Commission" means the 
Twenty-First Century Workforce Commission established under 
section 334. 
(3) INFORMATION TECHNOLOGY.—^The term "information 
technology" has the meaning given that term in section 5002 
of the Information Technology Management Reform Act of 1996 
(110 Stat. 679). 
(4) STATE.—^The term "State" means each of the several 
States of the United States and the District of Columbia. 
SEC. 334. ESTABLISHMENT OF TWENTY-FIRST CENTURY WORKFORCE 
COMMISSION. 
(a) ESTABLISHMENT.—There is established a commission to be 
known as the Twenty-First Century Workforce Commission. 
(b) MEMBERSHIP.— 
President. 
(1) COMPOSITION.— 
Congress. 
(A) IN GENERAL.—^The Commission shall be composed 
of 15 voting members, of which— 
(i) five members shall be appointed by the 
President; 
(ii) five members shall be appointed by the 
Majority Leader of the Senate; and 
(iii) five members shall be appointed by the 
Speaker of the House of Representatives. 
(B) GOVERNMENTAL REPRESENTATIVES.—Of the mem-
bers appointed under this subsection, three members shall 
be representatives of the governments of States and politi-
cal subdivisions of States, one of whom shall be appointed 
by the President, one of whom shall be appointed by the 
Majority Leader of the Senate, and one of whom shall 
be appointed by the Speaker of the House of Representa-
tives. 
(C) EDUCATORS.—Of the members appointed under this 
subsection, three shall be educators who are selected from 
among elementary, secondary, vocauional, and postsecond-
ary educators— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1089 
(i) one of whom shall be appointed by the 
President; 
(ii) one of whom shall be appointed by the Majority 
Leader of the Senate; and 
(iii) one of whom shall be appointed by the Speaker 
of the House of Representatives. 
(D) BUSINESS REPRESENTATIVES.— 
(i) IN GENERAL.—Of the members appointed under 
this subsection, eight shall be representatives of busi-
ness entities (at least three of which shall be individ-
uals who are employed by noninformation technology 
business entities), two of whom shall be appointed 
by the President, three of whom shall be appointed 
' 
by the Majority Leader of the Senate, and three of 
whom shall be appointed by the Speaker of the House 
of Representatives. 
(ii) SIZE.—Members appointed under this sub-
section in accordance with clause (i) shall, to the extent 
practicable, include individuals from business entities 
of a size that is small or average. 
(E) 
LABOR 
REPRESENTATIVE.—Of 
the 
members 
appointed under this subsection, one shall be a representa-
tive of a labor organization who has been nominated by 
a national labor federation and who shall be appointed 
by the President. 
(F) Ex OFFICIO MEMBERS.—The Commission shall 
include two nonvoting members, of which— 
(i) one member shall be an officer or employee 
of the Department of Labor, who shall be appointed 
by the President; and 
(ii) one member shall be an officer or employee 
of the Department of Education, who shall be appointed 
by the President. 
(2) DATE.—The appointments of the members of the Deadline. 
Commission shall be made by the later of— 
(A) October 31, 1998; or 
(B) the date that is 45 days after the date of enactment 
of this Act. 
(c) PERIOD OF APPOINTMENT; VACANCIES.—Members shall be 
appointed for the life of the Commission. Any vacancy in the 
Commission shall not affect its powers, but shall be filled in the 
same manner as the original appointment. 
(d) INITIAL MEETING.—No later than 30 days after the. date DeadUne. 
on which all members of the Commission have been appointed, 
the Commission shall holdits first meeting. 
(e) MEETINGS.—The Commission shall meet at the call of the 
Chairperson. 
(f) QUORUM.—^A majority of the members of the Commission 
shall constitute a quorum, but a lesser number of members may 
hold hearings. 
(g) CHAIRPERSON AND VICE CHAIRPERSON.—The Commission 
shall select by vote a chairperson and vice chairperson from among 
its voting members. 
SEC. 335. DUTIES OF THE COMMISSION. 
(a) STUDY.— 
112 STAT. 1090 
PUBLIC LAW 105-220—AUG. 7, 1998 
Deadline. 
(1) IN GENERAL.—^The Commission shall conduct a thorough 
study of all matters relating to the information technology 
workforce in the United States. 
(2) 
MATTERS 
STUDIED.—^The matters 
studied 
by 
the 
Commission shall include an examination of— 
(A) the skills necessary to enter the information tech-
nology workforce; 
(B) ways to expand the number of skilled information 
technology workers; and 
(C) the relative efficacy of programs in the United 
States and foreign countries to train information technology 
workers, with special emphasis on programs that provide 
for secondary education or postsecondary education in a 
program other than a 4-year baccalaureate 
program 
(including associate degree programs and graduate degree 
programs). 
(3) PUBLIC HEARINGS.—AS part of the study conducted 
under this subsection, the Commission shall hold public hear-
ings in each region of the United States concerning the issues 
referred to in subparagraphs (A) and (B) of paragraph (2). 
(4) EXISTING INFORMATION.—^To the extent practicable, in 
carrying out the study under this subsection, the Commission 
shall identify and use existing information related to the issues 
referred to in subparagraphs (A) and (B) of paragraph (2). 
(5) CONSULTATION 
WITH 
CHIEF 
INFORMATION 
OFFICERS 
COUNCIL.—In carrying out the study under this subsection, 
the Commission shall consult with the Chief Information Offi-
cers Council established under Executive Order No. 13011. 
(b) REPORT.—^Not later than 6 months £ifter the first meeting 
of the Commission, the Commission shall submit a report to the 
President and the Congress that shall contain a detailed statement 
of the findings and conclusions of the Commission resulting from 
the study, together with its recommendations for such legislation 
and administrative actions as the Commission considers to be appro-
priate. 
(c) FACILITATION OF EXCHANGE OF INFORMATION.—In carrying 
out the study under subsection (a), the Commission shall, to the 
extent practicable, facilitate the exchange of information concerning 
the issues that are the subject of the study among— 
(1) officials of the Federal Government and the govern-
ments of States and political subdivisions of States; and 
(2) educators from Federal, State, and local institutions 
of higher education and secondary schools. 
SEC. 336. POWERS OF THE COMMISSION. 
(a) HEARINGS.—^The Commission may hold such hearings, sit 
and act at such times and places, take such testimony, and receive 
such evidence as the Commission considers advisable to carry out 
the purposes of this subtitle. 
(b) INFORMATION FROM FEDERAL AGENCIES.—^The Commission 
may secure directly from any Federal department or agency such 
information as the Commission considers necessary to carry out 
the provisions of this subtitle. Upon request of the Chairperson 
of the Commission, the head of such department or agency shall 
furnish such information to the Commission. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1091 
(c) POSTAL SERVICES.—^The Commission may use the United 
States mails in the same memner and under the same conditions 
as other departments and agencies of the Federal Government. 
(d) GIFTS.—^The Commission may accept, use, and dispose of 
gifts or donations of services or property. 
SEC. 337. COMMISSION PERSONNEL MATTERS. 
(a) COMPENSATION OF MEMBERS.—Except as provided in sub-
section (b), each member of the Commission who is not an officer 
or employee of the Federal Government shall serve without com-
pensation. All members of the Commission who are officers or 
employees of the United States shall serve without compensation 
in addition to that received for their services as officers or employees 
of the United States. 
(b) TRAVEL EXPENSES.—^The members of the Commission shall 
be allowed travel expenses, including per diem in lieu of subsistence, 
at rates authorized for employees of agencies under subchapter 
I of chapter 57 of title 5, United States Code, while away from 
their homes or regular places of business in the performance of 
services for the Commission. 
(c) STAFF.— 
(1) IN GENERAL.—^The Chairperson of the Commission may, 
without regard to the civil service laws and regulations, appoint 
and terminate an executive director and such other additional 
personnel as may be necessary to enable the Commission to 
perform its duties. The employment of an executive director 
shall be subject to confirmation by the Commission. 
(2) COMPENSATION.—^The Chairperson of the Commission 
may fix the compensation of the executive director and other 
personnel without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of title 5, United States Code, 
relating to classification of positions and General Schedule pay 
rates, except that the rate of pay for the executive director 
and other personnel may not exceed the rate payable for level 
V of the Executive Schedule under section 5316 of such title. 
(d) DETAIL OF GOVERNMENT EMPLOYEES.—Any Federal Govern-
ment employee may be detailed to the Commission without 
reimbursement, and such detail shall be without interruption or 
loss of civil service status or privilege. 
(e) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERV-
ICES.—^The Chairperson of the Commission may procure temporary 
and intermittent services under section 3109(b) of title 5, United 
States Code, at rates for individuals that do not exceed the daily 
equivalent of the annual rate of basic pay prescribed for level 
V of the Executive Schedule under section 5316 of such title. 
SEC. 338. TERMINATION OF THE COMMISSION. 
The Commission shall terminate on the date that is 90 days 
after the date on which the Commission submits its report under 
section 335(b). 
SEC. 339. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There are authorized to be appropriated such 
sums as may be necessary for fiscal year 1999 to the Commission 
to carry out the purposes of this subtitle. 
(b) AVAILABILITY.—^Any sums appropriated under the authoriza-
tion contained in this section shall remain available, without fiscal 
year limitation, until expended. 
112 STAT. 1092 
PUBLIC LAW 105-220—AUG. 7, 1998 
Subtitle D—^Application of Civil Rights and 
Labor-Management Laws to the Smithso-
nian Institution 
Effective date. 
29 u s e 633a 
note. 
Rehabilitation 
Act Amendments 
of 1998. 
SEC. 341. APPLICATION OF CIVIL RIGHTS AND LABOR-MANAGEMENT 
LAWS TO THE SMITHSONIAN INSTITUTION. 
(a) PROHIBITION ON EMPLOYMENT DISCRIMINATION ON BASIS 
OF RACE, COLOR, RELIGION, SEX, AND NATIONAL ORIGIN.—Section 
717(a) of the Civil Rights Act of 1964 (42 U.S.C. 2000e-16(a)) 
is amended by inserting "in the Smithsonian Institution," before 
"and in the Grovernment Printing Office,". 
(b) PROHIBITION ON EMPLOYMENT DISCRIMINATION ON BASIS 
OF AGE.—Section 15(a) of the Age Discrimination in Employment 
Act of 1967 (29 U.S.C. 633a(a)) is amended by inserting "in the 
Smithsonian Institution," before "and in the Government Printing 
Office,". 
(c) PROHIBITION ON EMPLOYMENT DISCRIMINATION ON BASIS 
OF DISABILITY.—Section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791) is amended— 
(1) in the fourth sentence of subsection (a), in paragraph 
(1), by inserting "and the Smithsonian Institution" after 
"Government"; 
(2) in the first sentence of subsection (b)— 
(A) by inserting "and the Smithsonian Institution" after 
"in the executive branch"; and 
(B) by 
striking 
"such 
department, 
agency, 
or 
instrumentality" and inserting "such department, agency, 
instrumentality, or Institution"; and 
(3) in subsection (d), by inserting "and the Smithsonian 
Institution" after "instrumentality". 
(d) APPLICATION.—^The amendments made by subsections (a), 
(b), and (c) shall take effect on the date of enactment of this 
Act and shall apply to and may be raised in any administrative 
or judicial claim or action brought before such date of enactment 
but pending on such date, and any administrative or judicial claim 
or action brought after such date regardless of whether the claim 
or action arose prior to such date, if the claim or action was 
brought within the applicable statute of limitations. 
(e) LABOR-MANAGEMENT LAWS.—Section 7103(a)(3) of title 5, 
United States Code, is amended— 
(1) by striking "and" after "Library of Congress,"; and 
(2) by inserting "and the Smithsonian Institution" after 
"Grovernment Printing Office,". 
TITLE IV—REHABILITATION ACT 
AMENDMENTS OF 1998 
29 u s e 701 note. 
SEC. 401. SHORT TITLE. 
29 u s e 701 note 
prec. 
This title may be cited as the "Rehabilitation Act Amendments 
of 1998". 
SEC. 402. TITLE. 
The title of the Rehabilitation Act of 1973 is amended by 
striking "to establish special responsibilities" and all that follows 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1093 
and inserting the following: "to create linkage between State voca-
tional rehabilitation programs and workforce investment activities 
carried out under title I of the Workforce Investment Act of 1998, 
to establish special responsibilities for the Secretary of Education 
for coordination of all activities with respect to individuals with 
disabilities within and across programs administered by the Federal 
Government, and for other purposes.". 
SEC. 403. GENERAL PROVISIONS. 
The Rehabilitation Act of 1973 is amended by striking the 29USC70land 
matter preceding title I and inserting the following: 
^n^'JP<?~J?J' 
'SHORT TITLE; TABLE OF CONTENTS 
709-718, 718a, 
718b. 
"SEC. 1. (a) SHORT TITLE.—^This Act may be cited as the 
29 use 70i note. 
'Rehabilitation Act of 1973'. 
"(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
"Sec. 
1. Short title; table of contents. 
"Sec. 
2. Findings; purpose; policy. 
"Sec. 
3. Rehabilitation Services Administration. 
"Sec. 
4. Advance funding. 
"Sec. 
5. Joint fiinding. 
"Sec. 
6. Definitions. 
"Sec. 
7. Allotment percentage. 
"Sec. 
8. Nonduplication. 
"Sec. 
9. Application of other laws. 
"Sec. 10. Administration of the Act. 
"Sec. 11. Reports. 
"Sec. 12. Evaluation. 
"Sec. 13. Information clearinghouse. 
"Sec. 14. Transfer of funds. 
"Sec. 15. State administration. 
"Sec. 16. Review of applications. 
"Sec. 17. Carryover. 
"Sec. 18. Client assistance information. 
"Sec. 19. Traditionally underserved populations. 
"TITLE I—VOCATIONAL R E H A B I L I T A T I O N SERVICES 
"PART A—GENERAL PROVISIONS 
"Sec. 100. Declaration of policy; authorization of appropriations. 
"Sec. 101. State plans. 
"Sec. 102. Eligibility and individualized plan for employment. 
"Sec. 103. Vocational rehabilitation services. 
"Sec. 104. Non-Federal share for establishment of program. 
"Sec. 105. State Rehabilitation Council. 
"Sec. 106. Evaluation standards and performance indicators. 
"Sec. 107. Monitoring and review. 
"Sec. 108. Expenditure of certain amounts. 
"Sec. 109. Training of employers with respect to Americans with Disabilities Act of 
1990. 
"PART B—BASIC VOCATIONAL REHABILITATION SERVICES 
"Sec. 110. State allotments. 
"Sec. 111. Payments to States. 
"Sec. 112. Client assistance program. 
"PART C—AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES 
"Sec. 121. Vocational rehabilitation services grants. 
"PART D—VOCATIONAL REHABILITATION SERVICES CLIENT INFORMATION 
"Sec. 131. Data sharing. 
"TITLE II—RESEARCH AND TRAINING 
"Sec. 200. Declaration of purpose. 
112 STAT. 1094 
PUBLIC LAW 105-220—AUG. 7, 1998 
"Sec. 201. Authorization of appropriations. 
"Sec. 202. National Institute on Disability and Rehabilitation Research. 
"Sec. 203. Interagency Committee. 
"Sec. 204. Research and other covered activities. 
"Sec. 205. Rehabilitation Research Advisory Council. 
'TITLE III—PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
DEMONSTRATIONS 
"Sec. 301. Declaration of purpose and competitive basis of grants and contracts. 
"Sec. 302. Training. 
"Sec. 303. Demonstration and training programs. 
"Sec. 304. Migrant and seasonal farmworkers. 
"Sec. 305. Recreational programs. 
"Sec. 306. Measuring of project outcomes and performance. 
"TITLE IV—NATIONAL COUNCIL ON DISABILITY 
"Sec. 400. Establishment of National Council on Disability. 
"Sec. 401. Duties of National Council. 
"Sec. 402. Compensation of National Council members. 
"Sec. 403. Staff of National Council. 
"Sec. 404. Administrative powers of National Council. 
"Sec. 405. Authorization of Appropriations. 
'TITLE V—RIGHTS AND ADVOCACY 
"Sec. 501. Employment of individuals with disabilities. 
"Sec. 502. Architectural and Transportation Barriers Compliance Board. 
"Sec. 503. Employment under Federal contracts. 
"Sec. 504. Nondiscrimination under Federal grants and programs. 
"Sec. 505. Remedies and attorneys' fees. 
"Sec. 506. Secretarial responsibilities. 
"Sec. 507. Interagency Disability Coordinating Council. 
"Sec. 508. Electronic and information technology regvdations. 
"Sec. 509. Protection and advocacy of individusd rights. 
'TITLE VI—EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH 
DISABILITIES 
"Sec. 601. Short title. 
"PART A—PROJECTS WITH INDUSTRY 
"Sec. 611. Projects with industry. 
"Sec. 612. Authorization of appropriations. 
"PART B—SUPPORTED EMPLOYMENT SERVICES FOR INDIVIDUALS WITH THE MOST 
SIGNIFICANT DISABILITIES 
"Sec. 621. Purpose. 
"Sec. 622. Allotments. 
"Sec. 623. Availability of services. 
"Sec. 624. Eligibility. 
"Sec. 625. State plan. 
"Sec. 626. Restriction. 
"Sec. 627. Savings provision. 
"Sec. 628. Authorization of appropriations. 
"TITLE VII—INDEPENDENT LIVING SERVICES AND CENTERS FOR 
INDEPENDENT LIVING 
"CHAPTER 1—INDIVIDUALS WITH SIGNIFICANT DISABILITIES 
"PART A—GENERAL PROVISIONS 
"Sec. 701. Purpose. 
"Sec. 702. Definitions. 
"Sec. 703. Eligibility for receipt of services. 
"Sec. 704. State plan. 
"Sec. 705. Statewide Independent Living Council. 
"Sec. 706. Responsibilities of the Commissioner. 
"PART B—INDEPENDENT LIVING SERVICES 
"Sec. 711. Allotments. 
"Sec. 712. Pajonents to States from allotments. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1095 
"Sec. 713. Authorized uses of funds. 
"Sec. 714. Authorization of appropriations. 
"PART C—CENTERS FOR INDEPENDENT LIVING 
"Sec. 721. Program authorization. 
"Sec. 722. Grants to centers for independent living in States in which Federal fund-
ing exceeds State funding. 
"Sec. 723. Grants to centers for independent living in States in which State funding 
equals or exceeds Federal funding. 
"Sec. 724. Centers operated by State agencies. 
"Sec. 725. Standards and assiu-ances for centers for independent living. 
"Sec. 726. Definitions. 
"Sec. 727. Authorization of appropriations. 
"CHAPTER 2—INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE 
BLIND 
"Sec. 751. Definition. 
"Sec. 752. Program of grants. 
"Sec. 753. Authorization of appropriations. 
"FINDINGS; PURPOSE; POLICY 
"SEC. 2. (a) FINDINGS.—Congress finds that— 
29 use 70i. 
"(1) millions of Americans have one or more physical or 
mental disabilities and the number of Americans with such 
disabilities is increasing; 
"(2) individuals with disabilities constitute one of the most 
disadvantaged groups in society; 
"(3) disability is a natural part of the human experience 
and in no way diminishes the right of individuals to— 
"(A) live independently; 
"(B) enjoy self-determination; 
"(C) make choices; 
"(D) contribute to society; 
"(E) pursue meaningful careers; and 
"(F) enjoy full inclusion and integration in the eco-
nomic, political, social, cultural, and educational main-
stream of American society; 
"(4) increased employment of individuals with disabilities 
can be achieved through implementation of statewide workforce 
investment systems under title I of the Workforce Investment 
Act of 1998 that provide meaningful and effective participation 
for individuals with disabilities in workforce investment activi-
ties and activities carried out under the vocational rehabilita-
. tion program established under title I, and through the provi-
sion of independent living services, support services, and mean-
ingful opportunities for emplo3rment in integrated work settings 
through the provision of reasonable accommodations; 
"(5) individuals with disabilities continually encounter var-
ious forms of discrimination in such critical areas as employ-
ment, housing, public accommodations, education, transpor-
tation, communication, recreation, institutionalization, health 
services, voting, and public services; and 
"(6) the goals of the Nation properly include the goal of 
providing individuals with disabilities with the tools necessary 
to— 
"(A) make informed choices and decisions; and 
"(B) achieve equality of opportunity, full inclusion and 
integration in society, employment, independent living, and 
economic and social self-sufficiency, for such individuals. 
• "(b) PURPOSE.—The purposes of this Act are— 
112 STAT. 1096 
PUBLIC LAW 105-220—AUG. 7, 1998 
Establishment. 
President. 
29 use 702. 
"(1) to empower individuals with disabilities to maximize 
employment, economic self-sufficiency, independence, and inclu-
sion and integration into society, through— 
"(A) statewide workforce investment systems imple-
mented in accordgmce with title I of the Workforce Invest-
ment Act of 1998 that include, as integral components, 
comprehensive and coordinated state-of-the-art programs 
of vocational rehabilitation; 
"(B) independent living centers and services; 
"(C) research; 
"(D) training; 
"(E) demonstration projects; and 
"(F) the guarantee of equal opportunity; and 
"(2) to ensure that the Federal Government plays a leader-
ship role in promoting the employment of individuals with 
disabilities, especially individuals with significant disabilities, 
and in assisting States and providers of services in fulfilling 
the aspirations of such individuals with disabilities for mean-
ingful and gainful employment and independent living. 
"(c) POLICY.—It is the policy of the United States that all 
programs, projects, and activities receiving assistance under this 
Act shall be carried out in a manner consistent with the principles 
of— 
"(1) respect for individual dignity, personal responsibility, 
self-determination, and pursuit of meaningful careers, based 
on informed choice, of individuals with disabilities; 
"(2) respect for the privacy, rights, and equal access (includ-
ing the use of accessible form^ats), of the individuals; 
"(3) inclusion, integration, and full participation of the 
individuals; 
"(4) support for the involvement of an individual's rep-
resentative if an individual with a disability reqaiests, desires, 
or needs such support; and 
"(5) support for individual and systemic advocacy and 
community involvement. 
"REHABILITATION SERVICES ADMINISTRATION 
"SEC. 3. (a) There is established in the Office of the Secretary 
a Rehabilitation Services Administration which shall be headed 
by a Commissioner (hereinafter in this Act referred to as the 
'Commissioner') appointed by the President by and with the advice 
and consent of the Senate. Except for titles IV and V and as 
otherwise specifically provided in this Act, such Administration 
shall be the principal agency, and the Commissioner shall be the 
principal officer, of such Department for carrying out this Act. 
The Commissioner shall be an individual with substeintial experi-
ence in rehabilitation and in rehabilitation program management. 
In the performance of the functions of the office, the Commissioner 
shall be directly responsible to the Secretary or to the Under Sec-
retary or an appropriate Assistant Secretary of such Department, 
as designated by the Secretary. The functions of the Commissioner 
shall not be delegated to any officer not directly responsible, both 
with respect to program operation and administration, to the 
Commissioner. Any reference in this Act to duties to be carried 
out by the Commissioner shall be considered to be a reference 
to duties to be carried out by the Secretary acting through the 
Commissioner. In carrying out any of the functions of the office 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1097 
under this Act, the Commissioner shall be guided by general policies 
of the National Council on Disability established under title IV 
of this Act. 
"(b) The Secretary shall take whatever action is necessary 
to ensure that funds appropriated pursuant to this Act are expended 
only for the programs, personnel, and administration of programs 
carried out under this Act. 
"ADVANCE FUNDING 
"SEC. 4. (a) For the purpose of affording adequate notice of 29USC703. 
funding available under this Act, appropriations under this Act 
are authorized to be included in the appropriation Act for the 
fiscal year preceding the fiscal year for which they are available 
for obligation. 
"(b) In order to effect a transition to the advance funding 
method of timing appropriation action, the authority provided by 
subsection (a) of this section shall apply notwithstanding that its 
initial application will result in the enactment in the same year 
(whether in the same appropriation Act or otherwise) of two sepa-
rate appropriations, one for the then current fiscal year and one 
for the succeeding fiscal year. 
"JOINT FUNDING 
"SEC. 5. Pursuant to regulations prescribed by the President, Regulations. 
and to the extent consistent with the other provisions of this Act, 29 USC 704. 
where funds are provided for a single project by more than one 
Federal agency to an agency or organization assisted under this 
Act, the Federal agency principally involved may be designated 
to act for all in administering the funds provided, and, in such 
cases, a single non-Federal share requirement may be established 
according to the proportion of funds advanced by each agency. 
When the principal agency involved is the Rehabilitation Services 
Administration, it may waive any grant or contract requirement 
(as defined by such regulations) under or pursuant to any law 
other than this Act, which requirement is inconsistent with the 
similar requirements of the administering agency under or pursuant 
to this Act. 
"DEFINITIONS 
"SEC. 6. For the purposes of this Act: 
29 USC 705. 
"(1) The term 'administrative costs' means expenditures 
incurred in the performance of administrative functions under 
the vocational rehabilitation program carried out under title 
I, including expenses related to program planning, development, 
monitoring, and evaluation, including expenses for— 
"(A) quality assurance; 
"(B) budgeting, accounting, 
financial 
management, 
information systems, and related data processing; 
"(C) providing information about the program to the 
public; 
"(D) technical assistance and support services to other 
State 
agencies, 
private 
nonprofit 
organizations, 
and 
businesses and industries, except for technical assistance 
and support services described in section 103(b)(5); 
112 STAT. 1098 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(E) the State Rehabilitation 
Council and 
other 
advisory committees; 
"(F) professional organization membership dues for 
designated State unit employees; 
"(G) the removal of architectural barriers in State voca-
tional rehabilitation agency offices and State operated 
rehabilitation facilities; 
"(H) operating and maintaining designated State unit 
facilities, equipment, and grounds; 
"(I) supplies; 
"(J) administration of the comprehensive system of 
personnel development described in section 101(a)(7), 
including personnel 
administration, 
administration 
of 
affirmative action plans, and training and staff develop-
ment; 
"(K) administrative salaries, including clerical and 
other support staff salaries, in support of these administra-
tive functions; 
"(L) travel costs related to carrying out the program, 
other than travel costs related to the provision of services; 
"(M) costs incurred in conducting reviews of rehabilita-
tion counselor or coordinator determinations under section 
102(c); and 
"(N) legal expenses required in the administration of 
the program. 
"(2) ASSESSMENT FOR DETERMINING ELIGIBILITY AND VOCA-
TIONAL REHABILITATION NEEDS.—^The term 'assessment for 
determining eligibility and vocational rehabilitation needs' 
means, as appropriate in each case— 
"(A)(i) a review of existing data— 
"(I) to determine whether an individual is eligible 
for vocational rehabilitation services; and 
"(II) to assign priority for an order of selection 
described in section 101(a)(5)(A) in the States that 
use 
an 
order 
of selection 
pursuant 
to 
section 
101(a)(5)(A); and 
"(ii) to the extent necessary, the provision of appro-
priate assessment activities to obtain necessary additional 
data to make such determination and assignment; 
"(B) to the extent additional data is necessary to make 
a determination of the emplojmient outcomes, and the 
objectives, nature, and scope of vocational rehabilitation 
services, to be included in the individualized plan for 
employment of an eligible individual, a comprehensive 
assessment to determine the unique strengths, resources, 
priorities, concerns, abilities, capabilities, interests, and 
informed choice, including the need for supported employ-
ment, of the eligible individual, which comprehensive 
assessment— 
"(i) is limited to information that is necessary to 
identify the rehabilitation needs of the individual £m.d 
to develop the individualized plan for employment of 
the eligible individual; 
"(ii) uses, as a primary source of such information, 
to the maximum extent possible and appropriate and 
in accordance with confidentiality requirements— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1099 
"(I) existing information obtained for the pur-
poses of determining the ehgibiHty of the individ-
ual and assigning priority for an order of selection 
described in section 101(a)(5)(A) for the individual; 
and 
"(11) such information as can be provided by 
the individual and, where appropriate, by the fam-
ily of the individual; 
"(iii) niay include, to the degree needed to make 
such a determination, an assessment of the personality, 
interests, interpersonal skills, intelligence and related 
functional capacities, educational achievements, work 
experience, vocational aptitudes, personal and social 
adjustments, and employment opportunities of the 
individual, and the medical, psychiatric, psychological, 
and other pertinent vocational, educational, cultural, 
social, recreational, and environmental factors, that 
affect the employment and rehabilitation needs of the 
individual; and 
"(iv) may include, to the degree needed, an 
appraisal of the patterns of work behavior of the 
individual and services needed for the individual to 
acquire occupational skills, and to develop work atti-
tudes, work habits, work tolerance, and social and 
behavior patterns necessary for successful job perform-
ance, including the utilization of work in real job situa-
tions to assess and develop the capacities of the individ-
ual to perform adequately in a work environment; 
"(C) referral, for the provision of rehabilitation tech-
nology services to the individual, to assess and develop 
the capacities of the individual to perform in a work 
environment; and 
"(D) an exploration of the individual's 
abilities, 
capabilities, and capacity to perform in work situations, 
which shall be assessed periodically during trial work 
experiences, including experiences in which the individual 
is provided appropriate supports and training. 
"(3) ASSISTIVE TECHNOLOGY DEVICE.—The term 'assistive 
technology device' has the meaning given such term in section 
3(2) of the Technology-Related Assistance for Individuals With 
Disabilities Act of 1988 (29 U.S.C. 2202(2)), except that the 
reference in such section to the term 'individuals with disabil-
ities' shall be deemed to mean more than one individual with 
a disability as defined in paragraph (20)(A). 
"(4) ASSISTIVE TECHNOLOGY SERVICE.—The term 'assistive 
technology service' has the meaning given such term in section 
3(3) of the Technology-Related Assistance for Individuals With 
Disabihties Act of 1988 (29 U.S.C. 2202(3)), except that the 
reference in such section— 
"(A) to the term 'individual with a disability' shall 
be deemed to mean an individual with a disability, as 
defined in paragraph (20)(A); and 
"(B) to the term 'individuals with disabilities' shall 
be deemed to mean more than one such individual. 
"(5) 
COMMUNITY REHABILITATION PROGRAM.—^The term 
'community rehabilitation program' means a program that pro-
vides directly or facilitates 
the provision 
of vocational 
112 STAT. 1100 
PUBLIC LAW 105-220—AUG. 7, 1998 
rehabilitation services to individuals with disabilities, and that 
provides, singly or in combination, for an individual with a 
disability to enable the individual to maximize opportunities 
for employment, including career advancement— 
"(A) medical, psychiatric, psychological, social, and 
vocational services that are provided under one manage-
ment; 
"(B) testing, fitting, or training in the use of prosthetic 
and orthotic devices; 
"(C) recreational therapy; 
"(D) physical and occupational therapy; 
"(E) speech, language, and hearing therapy; 
"(F) psychiatric, psychological, and social services, 
including positive behavior management; 
"(G) assessment for determining eligibility and voca-
tional rehabilitation needs; 
"(H) rehabilitation technology; 
"(I) job development, placement, and retention services; 
"(J) evaluation or control of specific disabilities; 
"(K) orientation and mobility services for individuals 
who are blind; 
"(L) extended emplo3anent; 
"(M) psychosocial rehabilitation services; 
"(N) supported employment services and extended 
services; 
"(O) services to family members when necessary to 
the vocational rehabilitation of the individual; 
"(P) personal assistance services; or 
"(Q) services similar to the services described in one 
of subparagraphs (A) through (P). 
"(6) CONSTRUCTION; COST OF CONSTRUCTION.— 
"(A) CONSTRUCTION.—^The term 'construction' means— 
"(i) the construction of new buildings; 
"(ii) the acquisition, expansion, remodeling, alter-
ation, and renovation of existing buildings; and 
"(iii) initial equipment of buildings described in 
clauses (i) and (ii). 
"(B) 
COST 
OF 
CONSTRUCTION.—^The term 'cost of 
construction' includes architects' fees and the cost of 
acquisition of land in connection with construction but 
does not include the cost of offsite improvements. 
"(7) CRIMINAL ACT.—^The term 'criminal act' means any 
crime, including an act, omission, or possession under the laws 
of the United States or a State or unit of general local govern-
ment, which poses a substantial threat of personal injury, not-
withstanding that by reason of age, insanity, or intoxication 
or otherwise the person engaging in the act, omission, or posses-
sion was legally incapable of committing a crime. 
"(8) DESIGNATED STATE AGENCY; DESIGNATED STATE UNIT.— 
"(A) DESIGNATED STATE AGENCY.—^The term 'designated 
State agency' means an agency designated under section 
101(a)(2)(A). 
"(B) DESIGNATED STATE UNIT.—^The term 'designated 
State unit' means— 
"(i) any State agency unit required under section 
101(a)(2)(B)(ii); or 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1101 
"(ii) in cases in which no such unit is so required, 
the State agency described in section 101(a)(2)(B)(i). 
"(9) DISABILITY.—The term 'disabiUty means— 
"(A) except as otherwise provided in subparagraph (B), 
a physical or mental impairment that constitutes or results 
in a substantial impediment to employment; or 
"(B) for purposes of sections 2, 14, and 15, and titles 
II, IV, V, and VII, a physical or mental impairment that 
substantially limits one or more major life activities. 
"(10) DRUG AND ILLEGAL USE OF DRUGS.— 
"(A) DRUG.—^The term 'drug* means a controlled sub-
stance, as defined in schedules I through V of section 
202 of the Controlled Substances Act (21 U.S.C. 812). 
"(B) ILLEGAL USE OF DRUGS.—The term 'illegal use 
of drugs' means the use of drugs, the possession or distribu-
tion of which is unlawful under the Controlled Substances 
Act. Such term does not include the use of a drug taken 
under supervision by a licensed health care professional, 
or other uses authorized by the Controlled Substances Act 
or other provisions of Federal law. 
"(11) EMPLOYMENT OUTCOME.—The term 'employment out-
come' means, with respect to an individual— 
"(A) entering or retaining full-time or, if appropriate, 
part-time competitive employment in the integrated labor 
market; 
"(B) satisfying the vocational outcome of supported 
employment; or 
"(C) satisfying any other vocational outcome the Sec-
retary may determine to be appropriate (including satisfy-
ing the vocational outcome of self-employment, telecommut-
ing, or business ownership), 
in a manner consistent with this Act. 
"(12) ESTABLISHMENT OF A COMMUNITY REHABILITATION Regulations. 
PROGRAM.—^The term 'establishment of a community rehabilita-
tion program' includes the acquisition, expansion, remodeling, 
or alteration of existing buildings necessary to adapt them 
to community rehabilitation program purposes or to increase 
their effectiveness for such purposes (subject, however, to such 
limitations as the Secretary may determine, in accordance with 
regulations the Secretary shall prescribe, in order to prevent 
impairment of the objectives of, or duplication of, other Federal 
laws providing Federal assistance in the construction of facili-
ties for community rehabilitation programs), and may include 
such additional equipment and staffing as the Commissioner 
considers appropriate. 
"(13) EXTENDED SERVICES.—The term 'extended services' 
means ongoing support services and other appropriate services, 
needed to support and maintain an individual with a most 
significant disability in supported emplojnnent, that— 
"(A) are provided singly or in combination and are 
organized and made available in such a way as to assist 
an eligible individual in maintaining supported employ-
ment; 
"(B) are based on a determination of the needs of 
an eligible individual, as specified in an individualized 
plan for emplo3nnent; and 
112 STAT. 1102 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(C) are provided by a State agency, a nonprofit private 
organization, employer, or any other appropriate resource, 
after an individual has made the transition from support 
provided by the designated State unit. 
"(14) FEDERAL SHARE.— 
"(A) IN GENERAL.—Subject to subparagraph (B), the 
term 'Federal share' means 78.7 percent. 
"(B) EXCEPTION.—^The term 'Federal share' means the 
share specifically set forth in section 111(a)(3), except that 
with respect to payments pursuant to part B of title I 
to any State that are used to meet the costs of construction 
of those rehabilitation facilities identified in section 
103(b)(2) in such State, the Federal share shall be the 
percentages determined in accordance with the provisions 
of section 111(a)(3) applicable with respect to the State. 
Regulations. 
"(C) RELATIONSHIP TO EXPENDITURES BY A POLITICAL 
SUBDIVISION.—For the purpose of determining the non-Fed-
eral share with respect to a State, expenditures by a politi-
cal subdivision thereof or by a local agency shall be 
regarded as expenditures by such State, subject to such 
limitations and conditions as the Secretary shall by regula-
tion prescribe. 
"(15) GOVERNOR.—^The term 'Governor' means a chief 
executive officer of a State. 
"(16) IMPARTIAL HEARING OFFICER.— 
"(A) IN GENERAL.—^The term 'impartial hearing officer' 
means an individual— 
"(i) who is not an employee of a public agency 
(other than an administrative law judge, hearing exam-
iner, or employee of an institution of higher education); 
"(ii) who is not a member of the State Rehabilita-
tion Council described in section 105; 
"(iii) who has not been involved previously in the 
vocational rehabilitation of the applicant or client; 
"(iv) who has knowledge of the delivery of voca-
tional rehabilitation services, the State plan under sec-
tion 101, and the Federal and State rules governing 
the provision of such services and training with respect 
to the performance of official duties; and 
"(v) who has no personal or financial interest that 
would be in conflict with the objectivity of the individ-
ual. 
"(B) CONSTRUCTION.—An individual shall not be 
considered to be an employee of a public agency for pur-
poses of subparagraph (A)(i) solely because the individual 
is paid by the agency to serve as a hearing officer. 
"(17) INDEPENDENT LIVING CORE SERVICES.—The term 
'independent living core services' means— 
"(A) information and referral services; 
"(B) independent living skills training; 
"(C) peer counseling (including cross-disability peer 
counseling); and 
"(D) individual and systems advocacy. 
"(18) INDEPENDENT LIVING SERVICES.—The term 'inde-
pendent living services' includes— 
"(A) independent living core services; and 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1103 
"(B)(i) counseling services, including psychological, 
psychotherapeutic, and related services; 
"(ii) services related to securing housing or shelter, 
including services related to community group living, and 
supportive of the purposes of this Act and of the titles 
of this Act, and adaptive housing services (including appro-
priate accommodations to and modifications of any space 
used to serve, or occupied by, individuals with disabilities); 
"(iii) rehabilitation technology; 
"(iv) mobility training; 
"(v) services and training for individuals with cognitive 
and sensory disabilities, including life skills training, and 
interpreter and reader services; 
"(vi) personal assistance services, including attendant 
care and the training of personnel providing such services; 
"(vii) surveys, directories, and other activities to iden-
tify appropriate housing, recreation opportunities, and 
accessible transportation, and other support services; 
"(viii) consumer information programs on rehabilitation 
and independent living services available under this Act, 
especially for minorities and other individuals with disabil-
ities who have traditionally been unserved or underserved 
by programs under this Act; 
"(ix) education and training necessary for living in 
a community and participating in community activities; 
"(x) supported living; 
"(xi) transportation, including referral and assistance 
for such transportation and training in the use of public 
transportation vehicles and systems; 
"(xii) physical rehabilitation; 
"(xiii) therapeutic treatment; 
"(xiv) provision of needed prostheses and other appli-
ances and devices; 
"(xv) individu£il and group social and recreational serv-
ices; 
"(xvi) training to develop skills specifically designed 
for youths who are individuals with disabilities to promote 
self-awareness and esteem, develop advocacy and self-
empowerment skills, and explore career options; 
"(xvii) services for children; 
"(xviii) services under other Federal, State, or local 
programs designed to provide resources, training, counsel-
ing, or other assistance, of substantial benefit in enhancing 
the independence, productivity, and quality of life of 
individuals with disabilities; 
"(xix) appropriate preventive services to decrease the 
need of individuals assisted under this Act for similar 
services in the future; 
"(xx) community awareness programs to enhance the 
understanding and integration into society of individugJs 
with disabilities; and 
"(xxi) such other services as may be necessary and 
not inconsistent with the provisions of this Act. 
"(19) 
INDIAN; AMERICAN INDIAN; INDIAN AMERICAN; INDIAN 
TRIBE.— 
112 STAT. 1104 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(A) IN GENERAL.—^The terms Indian', 'Ameriean 
Indian', and 'Indian American' mean an individual who 
is a member of an Indian tribe. 
"(B) INDIAN TRIBE.—^The term Indian tribe' means any 
Federal or State Indian tribe, band, rancheria, pueblo, 
colony, or community, including any Alaskan native village 
or regional village corporation (as defined in or established 
pursuant to the Alaska Native Claims Settlement Act). 
"(20) INDIVIDUAL WITH A DISABILITY.— 
"(A) IN GENERAL.—Except as otherwise provided in 
subparagraph (B), the term 'individual with a disability' 
means any individual who— 
"(i) has a physical or mental impairment which 
for such individual constitutes or results in a substan-
tial impediment to employment; and 
"(ii) can benefit in terms of an employment out-
come from vocational rehabilitation services provided 
pursuant to title I, III, or VI. 
"(B) CERTAIN PROGRAMS; LIMITATIONS ON MAJOR LIFE 
ACTiviTiES.^5ubject to subparagraphs (C), (D), (E), and 
(F), the term 'individual with a disability' means, for pur-
poses of sections 2, 14, and 15, and titles II, IV, V, and 
VII of this Act, any person who— 
"(i) has a physical or mental impairment which 
substEintially limits one or more of such person's major 
life activities; 
"(ii) has a record of such an impairment; or 
"(iii) is regarded as having such an impairment. 
"(C) RIGHTS AND ADVOCACY PROVISIONS.— 
"(i) IN GENERAL; EXCLUSION OF INDIVIDUALS ENGAG-
ING IN DRUG USE.—^For purposes of title V, the term 
'individual with a disability* does not include an 
individual who is currently engaging in the illegal use 
of drugs, when a covered entity acts on the basis of 
such use. 
"(ii) 
EXCEPTION 
FOR 
INDIVIDUALS 
NO 
LONGER 
ENGAGING IN DRUG USE.—^Nothing in clause (i) shall 
be construed to exclude as an individual with a disabil-
ity an individual who— 
"(I) has successfully completed a supervised 
drug rehabilitation program and is no longer 
engaging in the illegal use of drugs, or has other-
wise been rehabilitated successfully and is no 
longer engaging in such use; 
"(II) is participating in a supervised rehabilita-
tion program and is no longer engaging in such 
use; or 
"(III) is erroneously regarded as engaging in 
such use, but is not engaging in such use; 
except that it shall not be a violation of this Act for 
a covered entity to adopt or administer reasonable 
policies or procedures, including but not limited to 
drug testing, designed to ensure that an individual 
described in subclause (I) or (II) is no longer engaging 
in the illegal use of drugs. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1105 
"(iii) EXCLUSION FOR CERTAIN SERVICES.—Notwith-
standing clause (i), for purposes of programs and activi-
ties providing health services and services provided 
under titles I, II, and III, an individual shall not be 
excluded from the benefits of such programs or activi-
ties on the basis of his or her current illegal use 
of drugs if he or she is otherwise entitled to such 
services. 
"(iv) DISCIPLINARY ACTION.—For purposes of pro-
grams and activities providing educational services, 
local educational agencies may take disciplinary action 
pertaining to the use or possession of illegal drugs 
or alcohol against any student who is an individual 
with a disability and who currently is engaging in 
the illegal use of drugs or in the use of alcohol to 
the same extent that such disciplinary action is taken 
against students who are not individuals with disabil-
ities. Furthermore, the due process procedures at sec-
tion 104.36 of title 34, Code of Federal Regulations 
(or any corresponding similar regulation or ruling) 
shall not apply to such disciplinary actions. 
"(v) 
EMPLOYMENT; EXCLUSION OF ALCOHOLICS.— 
For purposes of sections 503 and 504 as such sections 
relate to emplo3rment, the term 'individual with a 
disability does not include any individual who is an 
alcoholic whose current use of alcohol prevents such 
individual from performing the duties of the job in 
question or whose emplo3anent, by reason of such cur-
rent alcohol abuse, would constitute a direct threat 
to property or the safety of others. 
"(D) 
EMPLOYMENT; EXCLUSION OF INDIVIDUALS WITH 
CERTAIN DISEASES OR INFECTIONS.—For the purposes of 
sections 503 and 504, as such sections relate to employ-
ment, such term does not include an individual who has 
a currently contagious disease or infection and who, by 
reason of such disease or infection, would constitute a 
direct threat to the health or safety of other individuals 
or who, by reason of the currently contagious disease or 
infection, is unable to perform the duties of the job. 
"(E) 
RIGHTS PROVISIONS; EXCLUSION OF INDIVIDUALS 
ON BASIS OF HOMOSEXUALITY OR BISEXUALITY.—For the pur-
poses of sections 501, 503, and 504— 
"(i) for purposes of the application of subparagraph 
(B) to such sections, the term 'impairment' does not 
include homosexuality or bisexuality; and 
"(ii) therefore the term 'individual with a disability' 
does not include an individual on the basis of homo-
sexuality or bisexuality. 
"(F) 
RIGHTS PROVISIONS; EXCLUSION OF INDIVIDUALS 
ON BASIS OF CERTAIN DISORDERS.—For the purposes of sec-
tions 501, 503, and 504, the term 'individual with a disabil-
ity' does not include an individual on the basis o
f
— 
"(i) 
transvestism, 
transsexualism, 
pedophilia, 
exhibitionism, voyeurism, gender identity disorders not 
resulting from physical impairments, or other sexual 
behavior disorders; 
112 STAT. 1106 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(ii) compulsive gambling, kleptomania, or pyro-
mania; or 
"(iii) psychoactive substance use disorders result-
ing from current illegal use of drugs. 
"(G) 
INDIVIDUALS 
WITH 
DISABILITIES.—^The 
term 
'individuals with disabilities' means more than one individ-
ual with a disability. 
"(21) INDIVIDUAL WITH A SIGNIFICANT DISABILITY.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B) or (C), the term 'individual with a significant disability' 
means an individual with a disability— 
"(i) who has a severe physical or mental impair-
ment which seriously limits one or more functional 
capacities (such as mobility, communication, self-care, 
self-direction, interpersonal skills, work tolerance, or 
work skills) in terms of an emplojonent outcome; 
"(ii) 
whose 
vocational 
rehabilitation 
can 
be 
expected to require multiple vocational rehabilitation 
services over an extended period of time; and 
"(iii) who has one or more physical or mental 
disabilities 
resulting 
from 
amputation, 
arthritis, 
autism, blindness, bum injury, cancer, cerebral palsy, 
cystic fibrosis, deafness, head injury, heart disease, 
hemiplegia, hemophilia, respiratory or 
pulmonary 
dysfunction, mental retardation, mental illness, mul-
tiple sclerosis, muscular dystrophy, musculo-skeletal 
disorders, neurological disorders (including stroke and 
epilepsy), paraplegia, quadriplegia, and other spinal 
cord conditions, sickle cell anemia, specific learning 
disability, end-stage renal disease, or another disability 
or combination of disabilities determined on the basis 
of an assessment for determining eligibility and voca-
tional rehabilitation needs described in subparagraphs 
(A) and (B) of paragraph (2) to cause comparable 
substantial functional limitation. 
"(B) INDEPENDENT LIVING SERVICES AND CENTERS FOR 
INDEPENDENT LIVING.—For purposes of title VII, the term 
'individual with a significant disability' me£ins an individ-
ual with a severe physical or mental impairment whose 
ability to function independently in the family or commu-
nity or whose ability to obtain, maintain, or advance in 
employment is substantially limited sind for whom the 
delivery of independent living services will improve the 
ability to function, continue functioning, or move toward 
functioning independently in the family or community or 
to continue in employment, respectively. 
"(C) RESEARCH AND TRAINING.—For purposes of title 
II, the term 'individual with a significant 
disability' 
includes an individual described in subparagraph (A) or 
(B). 
"(D) INDIVIDUALS WITH SIGNIFICANT DISABILITIES.—The 
term 'individuals with significant disabilities' means more 
than one individual with a significant disability. 
"(E) 
INDIVIDUAL WITH A MOST SIGNIFICANT DISABIL-
ITY.— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1107 
"(i) IN GENERAL.—The term 'individual with a most 
significant disabihty', used with respect to an individ-
ual in a State, means an individual with a significant 
disability who meets criteria established by the State 
under section 101(a)(5)(C). 
"(ii) 
INDIVIDUALS WITH THE MOST SIGNIFICANT 
DISABILITIES.—The term 'individuals with the most 
significant disabilities' means more than one individual 
with a most significant disability. 
"(22) 
INDIVIDUAL'S 
REPRESENTATIVE; APPLICANT'S 
REP-
RESENTATIVE.—The terms 'individual's representative' and 
'applicant's representative' mean a parent, a family member, 
a guardian, an advocate, or an authorized representative of 
an individual or applicant, respectively. 
"(23) 
INSTITUTION OF 
HIGHER 
EDUCATION.—^The term 
'institution of higher education' has the meaning given the 
term in section 1201(a) of the Higher Education Act of 1965 
(20 U.S.C. 1141(a)). 
"(24) LOCAL AGENCY.—^The term 'local agency' means an 
agency of a unit of general local government or of an Indian 
tribe (or combination of such units or tribes) which has an 
agreement with the designated State agency to conduct a voca-
tional rehabilitation program under the supervision of such 
State agency in accordance with the State plan approved under 
section 101. Nothing in the preceding sentence of this para-
graph or in section 101 shall be construed to prevent the 
local agency from arranging to utilize another local public or 
nonprofit agency to provide vocational rehabilitation services 
if such an arrangement is made part of the agreement specified 
in this paragraph. 
"(25) LOCAL WORKFORCE INVESTMENT BOARD.—The term 
'local workforce investment board' means a local workforce 
investment board established 
under section 
117 of the 
Workforce Investment Act of 1998. 
"(26) NONPROFIT.—The term 'nonprofit', when used with 
respect to a community rehabilitation program, means a 
community rehabilitation program carried out by a corporation 
or association, no part of the net earnings of which inures, 
or may lawfully inure, to the benefit of any private shareholder 
or individual and the income of which is exempt from taxation 
under section 501(c)(3) of the Internal Revenue Code of 1986. 
"(27) ONGOING SUPPORT SERVICES.—The term 'ongoing sup-
port services' means services— 
"(A) provided to individuals with the most significant 
disabilities; 
"(B) provided, at a minimum, twice monthly— 
"(i) to make an assessment, regarding the employ-
ment situation, at the worksite of each such individual 
in supported emplo3anent, or, under special cir-
cumstances, especially at the request of the client, 
off site; and 
"(ii) based on the assessment, to provide for the 
coordination or provision of specific intensive services, 
at or away from the worksite, that are needed to main-
tain employment stability; and 
"(C) consisting of— 
112 STAT. 1108 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(i) a particularized assessment supplementary to 
the comprehensive assessment described in paragraph 
(2)(B); 
"(ii) the provision of skilled job trainers who accom-
pany the individual for intensive job skill training at 
the worksite; 
"(iii) job development, job retention, and placement 
services; 
"(iv) social skills training; 
"(v) regular observation or supervision of the 
individual; 
"(vi) followup services such as regular contact with 
the employers, the individuals, the individuals' rep-
resentatives, and other appropriate individuals, in 
order to reinforce and stabilize the job placement; 
"(vii) facilitation of natural supports at the work-
site; 
"(viii) any other service identified in section 103; 
or 
"(ix) a service similar to another service described 
in this subparagraph. 
"(28) PERSONAL ASSISTANCE SERVICES.—^The term 'personal 
assistance services' means a range of services, provided by 
one or more persons, designed to assist an individual with 
a disability to perform daily living activities on or off the 
job that the individual would typically perform if the individual 
did not have a disability. Such services shall be designed to 
increase the individual's control in life and ability to perform 
everyday activities on or off the job. 
"(29) PUBLIC OR NONPROFIT.—^The term 'public or nonprofit', 
used with respect to an agency or organization, includes an 
Indian tribe. 
"(30) REHABILITATION TECHNOLOGY.—^The term 'rehabilita-
tion technology' means the systematic application of tech-
nologies, engineering methodologies, or scientific principles to 
meet the needs of and address the barriers confronted by 
individuals with disabilities in areas which include education, 
rehabilitation, employment, transportation, independent living, 
and recreation. The term includes rehabilitation engineering, 
assistive technology devices, and assistive technology services. 
"(31) SECRETARY.—^The term 'Secretary', except when the 
context otherwise requires, means the Secretary of Education. 
"(32) STATE.—^The term 'State' includes, in addition to each 
of the several States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the United States Virgin 
Islands, Guam, American Samoa, and the Commonwealth of 
the Northern Mariana Islands. 
"(33) STATE WORKFORCE INVESTMENT BOARD.—^The term 
'State workforce investment board' means a State workforce 
investment board established under section 
111 of the 
Workforce Investment Act of 1998. 
"(34) 
STATEWIDE WORKFORCE INVESTMENT SYSTEM.—^The 
term 'statewide workforce investment system' means a system 
described in section 111(d)(2) of the Workforce Investment Act 
of 1998. 
"(35) SUPPORTED EMPLOYMENT.— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1109 
"(A) IN GENERAL.—^The term 'supported employment' 
means competitive work in integrated work settings, or 
employment in integrated work settings in which individ-
uals are working toward competitive work, consistent with 
the strengths, resources, priorities, concerns, abilities, 
capabilities, interests, and informed choice of the individ-
uals, for individuals with the most significant disabilities— 
"(i)(I) for whom competitive emplojrment has not 
traditionally occurred; or 
"(II) for whom competitive employment has been 
interrupted or intermittent as a result of a significant 
disability; and 
"(ii) who, because of the nature and severity of 
their disability, need intensive supported emplo5rment 
services for the period, and any extension, described 
in paragraph (36)(C) and extended services after the 
transition described in paragraph (13)(C) in order to 
perform such work. 
"(B) CERTAIN TRANSITIONAL EMPLOYMENT.—Such term 
includes transitional employment for persons who are 
individuals with the most significant disabilities due to 
mental illness. 
"(36) SUPPORTED EMPLOYMENT SERVICES.—^The term 'sup-
ported emplo3mient services' means ongoing support services 
and other appropriate services needed to support and maintain 
an individual with a most significant disability in supported 
employment, that— 
"(A) are provided singly or in combination and are 
organized and made available in such a way as to assist 
an eligible individual to achieve competitive employment; 
"(B) are based on a determination of the needs of 
an eligible individual, as specified in an individualized 
plan for emplo3rment; and 
"(C) are provided by the designated State unit for 
a period of time not to extend beyond 18 months, unless 
under special circumstances the eligible individual and the 
rehabilitation counselor or coordinator involved jointly 
agree to extend the time in order to achieve the rehabilita-
tion objectives identified in the individualized plan for 
employment. 
"(37) TRANSITION SERViCES.^The term 'transition services' 
means a coordinated set of activities for a student, designed 
within an outcome-oriented process, that promotes movement 
from school to post school activities, including postsecondary 
education, vocational training, integrated employment (includ-
ing supported employment), continuing and adult education, 
adult services, independent living, or community participation. 
The coordinated set of activities shall be based upon the individ-
ual student's needs, taking into account the student's pref-
erences and interests, and shall include instruction, community 
experiences, the development of emplo3mient £ind other post 
school adult living objectives, and, when appropriate, acquisi-
tion of daily living skills and functional vocational evaluation. 
"(38) VOCATIONAL REHABILITATION SERVICES.—The term 
'vocational rehabilitation services' means those services identi-
fied in section 103 which are provided to individuals with 
disabilities under this Act. 
68-194 O - 98 - 8 : QL 3 Part 2 
112 STAT. 1110 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(39) 
WORKFORCE 
INVESTMENT ACTIVITIES.—The 
term 
'workforce investment activities' means workforce investment 
activities, as defined in section 101 of the Workforce Investment 
Act of 1998, that are carried out under that Act. 
"ALLOTMENT PERCENTAGE 
29 use 706. 
"SEC. 7. (a)(1) For purposes of section 110, the allotment 
percentage for any State shall be 100 per centum less that percent-
age which bears the same ratio to 50 per centum as the per 
capita income of such State bears to the per capita income of 
the United States, except that— 
"(A) the allotment percentage shall in no case be more 
than 75 per centum or less than 33 V
a per centum; and 
"(B) the allotment percentage for the District of Columbia, 
Puerto Rico, Guam, the Virgin Islands, American Samoa, and 
the Commonwealth of the Northern Mariana Islands shall be 
75 per centum. 
"(2) The allotment percentages shall be promulgated by the 
Secretary between October 1 and December 31 of each even-num-
bered year, on the basis of the average of the per capita incomes 
of the States and of the United States for the three most recent 
consecutive years for which satisfactory data are available from 
the Department of Commerce. Such promulgation shall be conclu-
sive for each of the 2 fiscal years in the period beginning on 
the October 1 next succeeding such promulgation. 
"(3) The term 'United States' means (but only for purposes 
of this subsection) the 50 States and the District of Columbia. 
"(b) The population of the several States and of the United 
States shall be determined on the basis of the most recent data 
available, to be furnished by the Department of Commerce by 
October 1 of the year preceding the fiscal year for which funds 
are appropriated pursuant to statutory authorizations. 
"NONDUPLICATION 
29 use 707. 
"SEC. 8. In determining the amount of any State's Federal 
share of expenditures for planning, administration, and services 
incurred by it under a State plan approved in accordance with 
section 101, there shall be disregarded: (1) any portion of such 
expenditures which are financed by Federal funds provided under 
any other provision of law; and (2) the amount of any non-Federal 
funds required to be expended as a condition of receipt of such 
Federal funds. No payment may be made from funds provided 
under one provision of this Act relating to any cost with respect 
to which any pa3mient is made under any other provision of this 
Act, except that this section shall not be construed to limit or 
reduce fees for services rendered by community rehabilitation pro-
grams. 
"APPLICATION OF OTHER LAWS 
29 use 708. 
"SEC. 9. The provisions of the Act of December 5, 1974 (Public 
Law 93-510) and of title V of the Act of October 15, 1977 (Public 
Law 95-134) shall not apply to the administration of the provisions 
of this Act or to the administration of any program or activity 
under this Act. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1111 
"ADMINISTRATION OF THE ACT 
"SEC. 10. (a) In carrying out the purposes of this Act, the 29USC709. 
Commissioner may— 
"(1) provide consultative services and technical assistance 
to public or nonprofit private agencies and organizations, 
including assistance to enable such agencies and organizations 
to facilitate meaningful and effective participation by individ-
uals with disabilities in workforce investment activities; 
"(2) provide short-term training 8ind technical instruction, 
including training for the personnel of community rehabilitation 
programs, centers for independent living, and other providers 
of services (including job coaches); 
"(3) conduct special projects and demonstrations; 
"(4) collect, prepare, publish, and disseminate special edu-
cational or informational materials, including reports of the 
projects for which funds are provided under this Act; and 
"(5) provide monitoring and conduct evaluations. 
"(b)(1) In carrying out the duties under this Act, the Commis-
sioner may utilize the services and facilities of any agency of the 
Federal Government and of any other public or nonprofit agency 
or organization, in accordance with agreements between the 
Commissioner smd the head thereof, and may pay therefor, in 
advance or by way of reimbursement, as may be provided in the 
agreement. 
"(2) In carrying out the provisions of this Act, the Commissioner 
shall appoint such task forces as may be necessary to collect and 
disseminate information in order to improve the ability of the 
Commissioner to carry out the provisions of this Act. 
"(c) The Commissioner may promulgate such regulations as 
are considered appropriate to carry out the Commissioner's duties 
under this Act. 
"(d) The Secretary shall promulgate regulations regarding the 
requirements for the implementation of an order of selection for 
vocational rehabilitation services under section 101(a)(5)(A) if such 
services cannot be provided to all eligible individuals with disabil-
ities who apply for such services. 
"(e) Not later than 180 days after the date of enactment of 
the Rehabilitation Act Amendments of 1998, the Secretary shall 
receive public comment and promulgate regulations to implement 
the amendments made by the Rehabilitation Act Amendments of 
1998. 
"(f) In promulgating regulations to carry out this Act, the 
Secretary shall promulgate only regulations that are necessary 
to administer and ensure compliance with the specific requirements 
of this Act. 
"(g) There are authorized to be appropriated to carry out this 
section such sums as may be necessary. 
Regulations. 
Deadline. 
Regulations. 
Appropriation 
authorization. 
REPORTS 
"SEC. 11. (a) Not later than one hundred and eighty days 
after the close of each fiscal year, the Commissioner shall prepare 
and submit to the President and to the Congress a full and complete 
report on the activities carried out under this Act, including the 
activities and staffing of the information clearinghouse under sec-
tion 15. 
Deadline. 
29 u s e 710. 
112 STAT. 1112 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(b) The Commissioner shall collect information to determine 
whether the purposes of this Act are being met and to assess 
the performance of programs carried out under this Act. The 
Commissioner shall take whatever action is necessary to assure 
that the identity of each individual for which information is supplied 
under this section is kept confidential, except as otherwise required 
by law (including regulation). 
"(c) In preparing the report, the Commissioner shall annually 
collect and include in the report information based on the informa-
tion submitted by States in accordance with section 101(a)(10), 
including information on administrative costs as required by section 
101(a)(10)(D). The Commissioner shall, to the maximum extent 
appropriate, include in the report all information that is required 
to be submitted in the reports described in section 136(d) of the 
Workforce Investment Act of 1998 and that pertains to the employ-
ment of individuals with disabilities. 
EVALUATION 
29 use 711. 
"SEC. 12. (a) For the purpose of improving program manage-
ment and effectiveness, the Secretary, in consultation with the 
Commissioner, shall evaluate all the programs authorized by this 
Act, their general effectiveness in relation to their cost, their impact 
on related programs, and their structure and mechanisms for deliv-
ery of services, using appropriate methodology and evaluative 
Standards. 
research designs. The Secretary shall establish and use standards 
for the evaluations required by this subsection. Such an evaluation 
shall be conducted by a person not immediately involved in the 
administration of the program evaluated. 
"(b) In carrying out evaluations under this section, the Sec-
retary shall obtain the opinions of program and project participants 
about the strengths and weaknesses of the programs and projects. 
"(c) The Secretary shall take the necessary action to assure 
that all studies, evaluations, proposals, and data produced or devel-
oped with Federal funds under this Act shall become the property 
of the United States. 
"(d) Such information as the Secretary may determine to be 
necessary for purposes of the evaluations conducted under this 
section shall be made available upon request of the Secretary, 
by the departments and agencies of the executive branch. 
"(e)(1) To assess the linkages between vocational rehabilitation 
services and economic and noneconomic outcomes, the Secretary 
shall continue to conduct a longitudinal study of a national sample 
of applicants for the services. 
"(2) The study shall address factors related to attrition and 
completion of the program through which the services are provided 
and factors within and outside the program affecting results. Appro-
priate comparisons shall be used to contrast the experiences of 
similar persons who do not obtain the services. 
"(3) The study shall be planned to cover the period beginning 
on the application of individuals with disabilities for the services, 
through the eligibility determination and provision of services for 
the individuals, and a further period of not less than 2 years 
after the termination of services. 
"(f)(1) The Commissioner shall identify 
and 
disseminate 
information 
on 
exemplary 
practices 
concerning 
vocational 
rehabilitation. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1113 
"(2) To facilitate compliance with paragraph (1), the Commis-
sioner shall conduct studies and analyses that identify exemplary 
practices concerning vocational rehabilitation, including studies in 
areas relating to providing informed choice in the rehabilitation 
process, promoting consumer satisfaction, promoting job placement 
and retention, providing supported emplo3anent, providing services 
to particular disability populations, financing personal assistance 
services, providing assistive technology devices and assistive tech-
nology services, entering into cooperative agreements, establishing 
standards and certification for community rehabilitation programs, 
converting from nonintegrated to integrated employment, and 
providing caseload management. 
"(g) There are authorized to be appropriated to carry out this 
section such sums as may be necessary. 
Appropriation 
authorization. 
INFORMATION CLEARINGHOUSE 
"SEC. 13. (a) The Secretary shall establish a central clearing-
house for information and resource availability for individuals with 
disabilities which shall provide information and data regarding— 
"(1) the location, provision, and availability of services and 
programs for individuals with disabilities, including such 
information and data provided by State workforce investment 
boards regarding such services and programs authorized under 
title I of such Act; 
"(2) research and recent medical and scientific develop-
ments bearing on disabilities (and their prevention, ameliora-
tion, causes, and cures); and 
"(3) the current numbers of individuals with disabilities 
and their needs. 
The clearinghouse shall also provide any other relevant information 
and data which the Secretary considers appropriate. 
"(b) The Commissioner may assist the Secretary to develop 
within the Department of Education a coordinated system of 
information and data retrieval, which will have the capacity and 
responsibility to provide information regarding the information and 
data referred to in subsection (a) of this section to the Congress, 
public and private agencies and organizations, individuals with 
disabilities and their families, professionals in fields serving such 
individuals, and the general public. 
"(c) The ofiice established to carry out the provisions of this 
section shall be known as the 'Office of Information and Resources 
for Individuals with Disabilities'. 
"(d) There are authorized to be appropriated to carry out this 
section such sums as may be necessary. 
Establishment. 
29 u s e 712. 
TRANSFER OF FUNDS 
"SEC. 14. (a) Except as provided in subsection (b) of this section, 
no funds appropriated under this Act for any program or activity 
may be used for any purpose other than that for which the funds 
were specifically authorized. 
"(b) No more than 1 percent of funds appropriated for discre-
tionary grants, contracts, or cooperative agreements authorized by 
this Act may be used for the purpose of providing non-Federal 
panels of experts to review applications for such grants, contracts, 
or cooperative agreements. 
29 u s e 713. 
112 STAT. 1114 
PUBLIC LAW 105-220—AUG. 7, 1998 
"STATE ADMINISTRATION 
29 use 714. 
"SEC. 15. The application of any State rule or policy relating 
to the administration or operation of programs funded by this 
Act (including any rule or policy based on State interpretation 
of any Federal law, regulation, or guideline) shall be identified 
as a State imposed requirement. 
"REVIEW OF APPLICATIONS 
29 use 715. 
"SEC. 16. Applications for grants in excess of $100,000 in the 
aggregate authorized to be funded under this Act, other than grants 
primarily for the purpose of conducting dissemination or con-
ferences, shall be reviewed by panels of experts which shall include 
a majority of non-Federal members. Non-Federal members may 
be provided travel, per diem, and consultant fees not to exceed 
the daily equivalent of the rate of pay for level 4 of the Senior 
Executive Service Schedule under section 5382 of title 5, United 
States Code. 
"CARRYOVER 
29 use 716. 
"SEC. 17. (a) IN GENERAL.—Except as provided in subsection 
(b), and notwithstanding any other provision of law— 
"(1) any funds appropriated for a fiscal year to carry out 
any grant program under part B of title I, section 509 (except 
as provided in section 509(b)), part B of title VI, part B or 
C of chapter 1 of title VII, or chapter 2 of title VII (except 
as provided in section 752(b)), including any funds reallotted 
under any such grant program, that are not obligated and 
expended by recipients prior to the beginning of the succeeding 
fiscal year; or 
"(2) any amounts of program income, including reimburse-
ment payments under the Social Security Act (42 U.S.C. 301 
et seq.), received by recipients under any grant program speci-
fied in paragraph (1) that are not obligated £ind expended 
by recipients prior to the beginning of the fiscal year succeeding 
the fiscal year in which such amounts were received, 
shall remain available for obligation and expenditure by such recipi-
ents during such succeeding fiscal year. 
"(b) NON-FEDERAL SHARE.—Such funds shall remain available 
for obligation and expenditure by a recipient as provided in sub-
section (a) only to the extent that the recipient complied with 
any Federal share requirements applicable to the program for the 
fiscal year for which the funds were appropriated. 
"CLIENT ASSISTANCE INFORMATION 
29 use 717. 
"SE**C. 18. All programs, including community rehabilitation 
programs, and projects, that provide services to individuals with 
disabilities under this Act shall advise such individuals who are 
applicants for or recipients of the services, or the applicants' rep-
resentatives or individuals' representatives, of the availability and 
purposes of the client assistance program under section 112, includ-
ing information on means of seeking assistance under such program. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1115 
"TRADITIONALLY UNDERSERVED POPULATIONS 
"SEC. 19. (a) FINDINGS.—^With respect to the programs 29USC718. 
authorized in titles II through VII, the Congress finds as follows: 
"(1) RACIAL PROFILE.—^The racial profile of America is rap-
idly changing. While the rate of increase for white Americans 
is 3.2 percent, the rate of increase for racial and ethnic minori-
ties is much higher: 38.6 percent for Latinos, 14.6 percent 
for African-Americans, and 40.1 percent for Asian-Americans 
and other ethnic groups. By the year 2000, the Nation will 
have 260,000,000 people, one of every three of whom will be 
either African-American, Latino, or Asian-American. 
"(2) RATE OF DISABILITY.—Ethnic and racial minorities tend 
to have disabling conditions at a disproportionately high rate. 
The rate of work-related disability for American Indians is 
about one and one-half times that of the general population. 
African-Americans are also one and one-half times more likely 
to be disabled than whites and twice as likely to be significantly 
disabled. 
"(3) INEQUITABLE 
TREATMENT.—^Patterns of inequitable 
treatment of minorities have been documented in all major 
junctures of the vocational rehabilitation process. As compared 
to white Americans, a larger percentage of African-American 
applicants to the vocational rehabilitation system are denied 
acceptance. Of applicants accepted for service, a larger percent-
age of African-American cases are closed without being rehabili-
tated. Minorities are provided less training than their white 
counterparts. Consistently, less money is spent on minorities 
than on their white counterparts. 
"(4) RECRUITMENT.—Recruitment efforts within vocational 
rehabilitation at the level of preservice training, continuing 
education, and in-service training must focus on bringing larger 
numbers of minorities into the profession in order to provide 
appropriate practitioner knowledge, role models, and sufficient 
manpower to address the clearly changing demography of voca-
tional rehabilitation. 
"(b) OUTREACH TO MINORITIES.— 
"(1) IN GENERAL.—For each fiscal year, the Commissioner 
and the Director of the National Institute on Disability and 
Rehabilitation Research (referred to in this subsection as the 
'Director') shall reserve 1 percent of the funds appropriated 
for the fiscal year for programs authorized under titles II, 
III, VI, and VII to carry out this subsection. The Commissioner 
and the Director shall use the reserved funds to carry out 
one or more of the activities described in paragraph (2) through 
a grant, contract, or cooperative agreement. 
"(2) ACTIVITIES.—^The activities carried out by the Commis-
sioner and the Director shall include one or more of the 
following: 
"(A) Making awards to minority entities and Indian 
tribes to carry out activities under the programs authorized 
under titles II, III, VI, and VII. 
"(B) Making awards to minority entities and Indian 
tribes to conduct research, training, technical assistance, 
or a related activity, to improve services provided under 
this Act, especially services provided to individuals from 
minority backgrounds. 
112 STAT. 1116 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(C) Making awards to entities described in paragraph 
(3) to provide outreach and technical assistance to minority 
entities and Indian tribes to promote their participation 
in activities funded under this Act, including assistance 
to enhance their capacity to carry out such activities. 
"(3) ELIGIBILITY.—^To be eligible to receive an award under 
paragraph (2)(C), an entity shall be a State or a public or 
private nonprofit agency or organization, such as an institution 
of higher education or an Indian tribe. 
"(4) REPORT.—In each fiscal year, the Commissioner and 
the Director shall prepare and submit to Congress a report 
that describes the activities funded under this subsection for 
the preceding fiscal year. 
"(5) DEFINITIONS.—In this subsection: 
"(A) HISTORICALLY BLACK COLLEGE OR UNIVERSITY.— 
The term 'historically Black college or university' means 
a part B institution, as defined in section 322(2) of the 
Higher Education Act of 1965 (20 U.S.C. 1061(2)). 
"(B) MINORITY ENTITY.—^The term 'minority entity* 
means an entity that is a historically Black college or 
university, a Hispanic-serving institution of higher edu-
cation, an American Indian tribal college or university, 
or another institution of higher education whose minority 
student enrollment is at least 50 percent. 
"(c) DEMONSTRATION.—In awarding grants, or entering into con-
tracts or cooperative agreements under titles I, II, III, VI, and 
VII, and section 509, the Commissioner and the Director, in appro-
priate cases, shall require applicants to demonstrate how the 
applicants will address, in whole or in part, the needs of individuals 
with disabilities from minority backgrounds.". 
SEC. 404. VOCATIONAL REHABIUTATION SERVICES. 
Title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et 
seq.) is amended to read as follows: 
**TITLE I--VOCATIONAL 
REHABILITATION SERVICES 
"PART A—GENERAL PROVISIONS 
29 use 720. 
"SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIA-
TIONS. 
"(a) FINDINGS; PURPOSE; POLICY.— 
"(1) FINDINGS.—Congress finds that— 
"(A) work— 
"(i) is a valued activity, both for individuals and 
society; and 
"(ii) fulfills the need of an individual to be produc-
tive, promotes independence, enhances self-esteem, and 
allows for participation in the mainstream of life in 
the United States; 
"(B) as a group, individuals with disabilities experience 
staggering levels of unemployment and poverty; 
"(C) individuals with disabilities, including individuals 
with the most significant disabilities, have demonstrated 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1117 
their ability to achieve gainful employment in integrated 
settings if appropriate services and supports are provided; 
"(D) reasons for significant numbers of individuals with 
disabilities not working, or working at levels not commen-
surate with their abilities and capabilities, include— 
"(i) discrimination; 
"(ii) lack of accessible and available transportation; 
"(iii) fear of losing health coverage under the medi-
care and medicaid programs carried out under titles 
XVIII and XIX of the Social Security Act (42 U.S.C. 
1395 et seq. and 1396 et seq.) or fear of losing private 
health insurance; and 
"(iv) lack of education, training, and supports to 
meet job qualification standards necessary to secure, 
retain, regain, or advance in employment; 
"(E) enforcement of title V and of the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) holds 
the promise of ending discrimination for individuals with 
disabilities; 
"(F) the provision of workforce investment activities 
and vocational rehabilitation services can enable individ-
uals with disabilities, including individuals with the most 
significant disabilities, to pursue meaningful careers by 
securing gainful employment commensurate with their 
abilities and capabilities; and 
"(G) linkages between the vocational rehabilitation pro-
grams established under this title and other components 
of the statewide workforce investment systems are critical 
to ensure effective and meaningful participation by individ-
uals with disabilities in workforce investment activities. 
"(2) PURPOSE.—^The purpose of this title is to assist States 
in operating statewide comprehensive, coordinated, effective, 
efficient, and accountable programs of vocational rehabilitation, 
each of which is— 
"(A) an integral part of a statewide workforce invest-
ment system; and 
"(B) designed to assess, plan, develop, and provide 
vocational rehabilitation services for individuals with 
disabilities, consistent with their strengths, resources, 
priorities, concerns, abilities, capabilities, interests, and 
informed choice, so that such individuals may prepare for 
and engage in g£dnful employment. 
"(3) POLICY.—It is the policy of the United States that 
such a program shall be carried out in a manner consistent 
with the following principles: 
"(A) Individuals with disabilities, including individuals 
with the most significsmt disabilities, are generally pre-
sumed to be capable of engaging in gainful employment 
and the provision of individualized vocational rehabilitation 
services can improve their ability to become gainfully 
employed. 
"(B) Individuals with disabilities must be provided the 
opportunities to obtain gainful employment in integrated 
settings. 
"(C) Individuals who are applicants for such programs 
or eligible to psirticipate in such programs must be active 
112 STAT. 1118 
PUBLIC LAW 105-220—AUG. 7, 1998 
Deadline. 
Federal Register, 
publication. 
and full partners in the vocational rehabilitation process, 
making meaningful and informed choices— 
"(i) during assessments for determining eligibility 
and vocational rehabilitation needs; and 
"(ii) in the selection of employment outcomes for 
the individuals, services needed to achieve the out-
comes, entities providing such services, and the meth-
ods used to secure such services. 
"(D) Families and other natural supports can play 
important roles in the success of a vocational rehabilitation 
program, if the individual with a disability involved 
requests, desires, or needs such supports. 
"(E) Vocational rehabilitation counselors that 
are 
trained and prepared in accordance with State policies 
and procedures 
as described 
in section 
101(a)(7)(B) 
(referred to individually in this title as a 'qualified voca-
tional rehabilitation counselor'), other qualified rehabilita-
tion personnel, and other qualified personnel facilitate the 
accomplishment of the employment outcomes and objectives 
of an individual. 
"(F) Individuals with disabilities and the individuals' 
representatives are full partners in a vocational rehabilita-
tion program and must be involved on a regular basis 
and in a meaningful manner with respect to policy develop-
ment and implementation. 
"(G) Accountability measures must facilitate the accom-
plishment of the goals and objectives of the program, 
including providing vocational rehabilitation services to, 
among others, individuals with the most significant disabil-
ities. 
"(b) AUTHORIZATION OF APPROPRIATIONS.— 
"(1) IN GENERAL.—For the purpose of making grants to 
States under part B to assist States in meeting the costs 
of vocational rehabilitation services provided in accordance with 
State plans under section 101, there are authorized to be appro-
priated such sums as may be necessary for fiscal years 1999 
through 2003, except that the amount to be appropriated for 
a fiscal year shall not be less than the amount of the appropria-
tion under this paragraph for the immediately preceding fiscal 
year, increased by the percentage change in the Consumer 
Price Index determined under subsection (c) for the immediately 
preceding fiscal year. 
"(2) REFERENCE.—^The reference in paragraph (1) to grants 
to States under part B shall not be considered to refer to 
grants under section 112. 
"(c) CONSUMER PRICE INDEX.— 
"(1) PERCENTAGE CHANGE.—^No later than November 15 
of each fiscal year (beginning with fiscal year 1979), the Sec-
retary of Labor shall publish in the Federal Register the 
percentage change in the Consumer Price Index published for 
October of the preceding fiscal year and October of the fiscal 
year in which such publication is made. 
"(2) APPLICATION.— 
"(A) INCREASE.—If in any fiscal year the percentage 
change published under paragraph (1) indicates an increase 
in the Consumer Price Index, then the amount to be appro-
priated under subsection (b)(1) for the subsequent fiscal 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1119 
year shall be at least the amount appropriated under sub-
section (b)(1) for the fiscal year in which the publication 
is made under paragraph (1) increased by such percentage 
change. 
"(B) No INCREASE OR DECREASE.—If in any fiscal year 
the percentage change published under paragraph (1) does 
not indicate an increase in the Consumer Price Index, 
then the amount to be appropriated under subsection (b)(1) 
' 
for the subsequent fiscal year shall be at least the amount 
appropriated under subsection (b)(1) for the fiscal year 
in which the publication is made under paragraph (1). 
"(3) DEFINITION.—For purposes of this section, the term 
'Consumer Price Index' means the Consumer Price Index for 
All Urban Consumers, published monthly by the Bureau of 
Labor Statistics. 
"(d) EXTENSION.— 
"(1) IN GENERAL.— 
"(A) 
AUTHORIZATION OR DURATION OF PROGRAM.— 
Unless the Congress in the regular session which ends 
prior to the beginning of the terminal fiscal year— 
"(i) of the authorization of appropriations for the 
program authorized by the State grant program under 
part B of this title; or 
"(ii) of the duration of the program authorized 
by the State grant program under part B of this title; 
has passed legislation which would have the effect of 
extending the authorization or duration (as the case may 
be) of such program, such authorization or duration is 
automatically extended for 1 additional year for the pro-
gram authorized by this title. 
"(B) CALCULATION.—^The amount authorized to be 
J 
appropriated for the additional fiscal year described in 
subparagraph (A) shall be an amount equal to the amount 
appropriated for such program for fiscal year 2003, 
increased by the percentage change in the Consumer Price 
Index determined under subsection (c) for the immediately 
preceding fiscal year, if the percentage change indicates 
an increase. 
"(2) CONSTRUCTION.— 
"(A) PASSAGE OF LEGISLATION.—For the purposes of 
paragraph (1)(A), Congress shall not be deemed to have 
passed legislation unless such legislation becomes law. 
"(B) ACTS OR DETERMINATIONS OF COMMISSIONER.—In 
any case where the Commissioner is required under an 
applicable statute to carry out certain acts or make certain 
determinations which are necessary for the continuation 
of the program authorized by this title, if such acts or 
determinations are required during the terminal year of 
such program, such acts and determinations shall be 
required during any fiscal year in which the extension 
described in that part of paragraph (1) that follows clause 
(ii) of paragraph (1)(A) is in effect. 
"SEC. 101. STATE PLANS. 
29USC72L 
"(a) PLAN REQUIREMENTS.— 
"(1) IN GENERAL.— 
112 STAT. 1120 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(A) SUBMISSION.—To be eligible to participate in pro-
grams under this title, a State shall submit to the Commis-
sioner a State plan for vocational rehabilitation services 
that meets the requirements of this section, on the same 
date that the State submits a State plan under section 
112 of the Workforce Investment Act of 1998. 
"(B) NONDUPLICATION.—The State shall not be required 
to submit, in the State plan for vocational rehabilitation 
services, policies, procedures, or descriptions required 
under this title that have been previously submitted to 
the Commissioner and that demonstrate that such State 
meets the requirements of this title, including any policies, 
procedures, or descriptions submitted under this title as 
in effect on the day before the effective date of the 
Rehabilitation Act Amendments of 1998. 
"(C) DURATION.—^The State plan shall remain in effect 
subject to the submission of such modifications as the State 
determines to be necessary or as the Commissioner may 
require based on a change in State policy, a change in 
Federal law (including regulations), an interpretation of 
this Act by a Federal court or the highest court of the 
State, or a finding by the Commissioner of State noncompli-
ance with the requirements of this Act, until the State 
submits and receives approval of a new State plan. 
"(2) DESIGNATED STATE AGENCY; DESIGNATED STATE UNIT.— 
"(A) DESIGNATED STATE AGENCY.—The State plan shall 
designate a State agency as the sole State agency to admin-
ister the plan, or to supervise the administration of the 
plan by a local agency, except that— 
"(i) where, under State law, the State agency for 
individuals who are blind or another agency that pro-
vides assistance or services to adults who are blind 
is authorized to provide vocational rehabilitation serv-
ices to individuals who are blind, that agency may 
be designated as the sole State agency to administer 
the part of the plan under which vocational rehabilita-
tion services are provided for individuals who are blind 
(or to supervise the administration of such part by 
a local agency) and a separate State agency may be 
designated as the sole State agency to administer or 
supervise the administration of the rest of the State 
plan; 
"(ii) the Commissioner, on the request of a State, 
may authorize the designated State agency to share 
funding and administrative responsibility with another 
agency of the State or with a local agency in order 
to permit the agencies to carry out a joint program 
to provide services to individuals with disabilities, and 
may waive compliance, with respect to vocational 
rehabilitation services furnished under the joint pro-
gram, with the requirement of paragraph (4) that the 
plan be in effect in all political subdivisions of the 
State; and 
"(iii) in the case of American Samoa, the appro-
priate State agency shall be the Governor of American 
Samoa. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1121 
"(B) DESIGNATED STATE UNIT.—The State agency des-
ignated under subparagraph (A) shall be— 
"(i) a State agency primarily concerned with voca-
tional rehabilitation, or vocational and other rehabilita-
tion, of individuals with disabilities; or 
"(ii) if not such an agency, the State agency (or 
each State agency if 2 are so designated) shall include 
a vocational rehabilitation bureau, division, or other 
organizational unit that— 
"(I) is primarily concerned with vocational 
rehabilitation, or vocational and other rehabilita-
tion, of individuals with disabilities, and is respon-
sible for the vocational rehabilitation program of 
the designated State agency; 
"(II) has a full-time director; 
"(III) has a staff employed on the rehabilita- ; 
tion work of the organizational unit all or substan-
tially all of whom are employed full time on such 
work; and 
"(IV) is located at an organizational level and 
has an organizational status within the designated 
; 
State agency comparable to that of other major 
organizational 
units of the designated 
State 
agency. 
"(C) RESPONSIBILITY FOR SERVICES FOR THE BLIND.— 
If the State has designated only 1 State agency pursuant 
to subparagraph (A), the State may assign responsibility 
for the part of the plan under which vocational rehabilita-
tion services are provided for individuals who are blind 
to an organizational unit of the designated State agency 
and assign responsibility for the rest of the plan to another 
organizational unit of the designated State agency, with 
the provisions of subparagraph (B) applying separately to 
each of the designated State units. 
"(3) NON-FEDERAL SHARE.—The State plan shall provide 
for financial participation by the State, or if the State so elects, 
by the State and local agencies, to provide the amount of 
the non-Federal share of the cost of carrying out part B. 
"(4) STATEWIDENESS.—^The State plan shall provide that 
the plan shall be in effect in all political subdivisions of the 
State, except that— 
"(A) in the case of any activity that, in the judgment 
of the Commissioner, is likely to assist in promoting the 
vocational rehabilitation of substantially larger numbers 
of individuals with disabilities or groups of individuals 
with disabilities, the Commissioner may waive compliance 
with the requirement that the plan be in effect in all 
political subdivisions of the State to the extent and for 
such period as may be provided in accordance with regula-
tions prescribed by the Commissioner, but only if the non-
Federal share of the cost of the vocational rehabilitation 
services involved is met from funds made available by 
a local agency (including funds contributed to such agency 
by a private agency, organization, or individual); and 
"(B) in a case in which earmarked funds are used 
toward the non-Federal share and such funds are ear-
marked for particular geographic areas within the State, 
112 STAT. 1122 
PUBLIC LAW 105-220—AUG. 7, 1998 
the earmarked funds may be used in such areas if the 
State notifies the Commissioner that the State cannot pro-
vide the full non-Federal share without such funds. 
"(5) ORDER OF SELECTION FOR VOCATIONAL REHABILITATION 
SERVICES.—In the event that vocational rehabilitation services 
cannot be provided to all eligible individuals with disabilities 
in the State who apply for the services, the State plan shall— 
"(A) show the order to be followed in selecting eligible 
individuals to be provided vocational rehabilitation serv-
ices; 
"(B) provide the justification for the order of selection; 
"(C) include an assurance that, in accordance with 
criteria established by the State for the order of selection, 
individuals with the most significant disabilities will be 
selected first for the provision of vocational rehabilitation 
services; and 
"(D) provide that eligible individueds, who do not meet 
the order of selection criteria, shall have access to services 
provided through the information and referral system 
implemented under paragraph (20). 
"(6) METHODS FOR ADMINISTRATION.— 
"(A) IN GENERAL.—^The State plan shall provide for 
such methods of administration as are found by the 
Commissioner to be necessary for the proper and efficient 
administration of the plsin. 
"(B) EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.— 
The State plan shall provide that the designated State 
agency, and entities carrying out community rehabilitation 
programs in the State, who are in receipt of assistance 
under this title shall take affirmative action to employ 
and advance in emplo5rment qualified individuals with 
disabilities covered under, and on the same terms and 
conditions as set forth in, section 503. 
"(C) FACILITIES.—^The State plan shall provide that 
facilities used in connection with the delivery of services 
assisted under the State plan shall comply with the Act 
entitled 'An Act to insure that certain buildings financed 
with Federal funds are so designed and constructed as 
to be accessible to the physically handicapped', approved 
on August 12, 1968 (commonly known as the 'Architectural 
Barriers Act of 1968'), with section 504, and with the 
Americans with Disabilities Act of 1990. 
"(7) 
COMPREHENSIVE SYSTEM OF PERSONNEL DEVELOP-
MENT.—The State plan shall— 
"(A) include a description (consistent with the purposes 
of this Act) of a comprehensive system of personnel develop-
. ment, which shall include— 
"(i) a description of the procedures and activities 
the designated State agency will undertake to ensure 
an adequate supply of qualified State rehabilitation 
professionals and paraprofessionals for the designated 
State unit, including the development and maintenance 
of a system for determining, on an Einnual basis— 
"(I) the number and type of personnel that 
are employed by the designated State unit in the 
provision of vocational rehabilitation 
services. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1123 
including ratios of qualified vocational rehabilita-
tion counselors to clients; and 
"(11) the number and type of personnel needed 
by the State, and a projection of the numbers 
of such personnel that will be needed in 5 years, 
based on projections of the number of individuals 
to be served, the number of such personnel who 
are expected to retire or leave the vocational 
rehabilitation field, and other relevant factors; 
"(ii) where appropriate, a description of the manner 
in which activities will be undertaken under this sec-
tion to coordinate the system of personnel development 
with personnel development 
activities under 
the 
Individuals with Disabilities Education Act (20 U.S.C. 
1400 et seq.); 
"(iii) a description of the development and mainte-
n£ince of a system of determining, on an annual basis, 
information on the programs of institutions of higher 
education 
within 
the 
State 
that 
are 
preparing 
rehabilitation professionals, including— 
"(I) the numbers of students enrolled in such 
programs; and 
"(II) the number of such students who grad-
uated with certification or licensure, or with 
credentials to qualify for certification or licensure, 
as a rehabilitation professional during the past 
year; 
"(iv) a description of the development, updating, 
and implementation of a plan that— 
"(I) will address the current and projected 
vocational rehabilitation services personnel train-
ing needs for the designated State unit; and 
"(II) provides for the coordination and facilita-
tion of efforts between the designated State unit, 
institutions of higher education, and professional 
associations to recruit, prepare, and retain quali-
fied personnel, including personnel from minority 
backgrounds, and personnel who are individuals 
with disabilities; and 
"(v) a description of the procedures and activities 
the designated State agency will undertake to ensure 
that all personnel employed by the designated State 
unit are appropriately and adequately trained and pre-
pared, including— 
"(I) a system for the continuing education of 
rehabilitation professionals and paraprofessionals 
within the designated State unit, particularly with 
respect to rehabilitation technology; and 
"(II) procedures for acquiring and disseminat-
ing to rehabilitation professionals and paraprofes-
• 
sionals within the designated State unit significant 
knowledge from research and other sources, includ-
ing procedures for providing training regarding the 
amendments to this Act made by the Rehabilita-
tion Act Amendments of 1998; 
"(B) set forth policies and procedures relating to the 
establishment and maintenance of standards to ensure that 
112 STAT. 1124 
PUBLIC LAW 105-220—AUG. 7, 1998 
personnel, including rehabilitation professionals and para-
professionals, needed within the designated State unit to 
carry out this part are appropriately and adequately pre-
pared and trained, including— 
"(i) the establishment and maintenance of stand-
ards that are consistent with any national or State 
approved or recognized certification, licensing, registra-
tion, or other comparable requirements that apply to 
the area in which such personnel are providing voca-
tional rehabilitation services; and 
"(ii) to the extent that such standards are not 
based on the highest requirements in the State 
applicable to a specific profession or discipline, the 
steps the State is taking to require the retraining 
or hiring of personnel within the designated State unit 
that meet appropriate professional requirements in the 
State; and 
"(C) contain provisions relating to the establishment 
and maintenance of minimum standards to ensure the 
availability of personnel within the designated State unit, 
to the maximum extent feasible, trained to communicate 
in the native language or mode of communication of an 
applicant or eligible individual. 
"(8) COMPARABLE SERVICES AND BENEFITS.— 
"(A) DETERMINATION OF AVAILABILITY.— 
"(i) IN GENERAL.—The State plan shall include an 
assurance that, prior to providing any vocational 
rehabilitation service to an eligible individual, except 
those services specified in paragraph (5)(D) and in 
paragraphs (1) through (4) and (14) of section 103(a), 
the designated State unit will determine whether com-
parable services and benefits are available under any 
other program (other than a program carried out under 
this title) unless such a determination would interrupt 
or delay— 
"(I) the progress of the individual toward 
achieving the employment outcome identified in 
the individualized plan for employment of the 
individual in accordance with section 102(b); 
"(II) an immediate job placement; or 
"(III) the provision of such service to any 
individual at extreme medical risk, 
"(ii) AWARDS AND SCHOLARSHIPS.—For purposes of 
clause (i), comparable benefits do not include awards 
and scholarships based on merit. 
"(B) INTERAGENCY AGREEMENT.—^The State plan shall 
include an assurance that the Governor of the State, in 
consultation with the entity in the State responsible for 
the vocational rehabilitation program and other appropriate 
agencies, will ensure that an interagency agreement or 
, other mechanism for interagency coordination takes effect 
between any appropriate public entity, including the State 
. entity responsible for administering the State medicaid 
program, a public institution of higher education, and a 
component of the statewide workforce investment system, 
and the designated State unit, in order to ensure the provi-
sion of vocational rehabilitation services described in 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1125 
subparagraph (A) (other than those services specified in 
paragraph (5)(D), and in paragraphs (1) through (4) and 
(14) of section 103(a)), that are included in the individual-
ized plan for emplojrment of an eligible individual, including 
the provision of such vocational rehabilitation services dur-
ing the pendency of any dispute described in clause (iii). 
Such agreement or mechanism shall include the following: 
"(i) AGENCY FINANCIAL RESPONSIBILITY.—^An identi-
fication of, or a description of a method for defining, 
the financial responsibility of such public entity for 
providing such services, and a provision stating the 
financial responsibility of such public entity for provid-
ing such services. 
"(ii) 
CONDITIONS, TERMS, AND PROCEDURES OF 
REIMBURSEMENT.—Information specifying the condi-
tions, terms, and procedures under which a designated 
State unit shall be reimbursed by other public entities 
for providing such services, based on the provisions 
of such agreement or mechanism. 
"(iii) INTERAGENCY DISPUTES.—Information specify-
ing procedures for resolving interagency disputes under 
the agreement or other mechanism (including proce-
dures under which the designated State unit may initi-
ate proceedings to secure reimbursement from other 
public entities or otherwise implement the provisions 
of the agreement or mechanism). 
"(iv) 
COORDINATION OF SERVICES PROCEDURES.— 
Information specifying policies and procedures for pub-
lic entities to determine and identify the interagency 
coordination responsibilities of each public entity to 
promote the coordination and timely delivery of voca-
tional rehabilitation services (except those services 
specified in paragraph (5)(D) and in paragraphs (1) 
through (4) and (14) of section 103(a)). 
"(C) 
RESPONSIBILITIES OF OTHER PUBLIC ENTITIES.— 
"(i) 
RESPONSIBILITIES UNDER OTHER LAW.—^Not-
withstanding subparagraph (B), if any public entity 
other than a designated State unit is obligated under 
Federal or State law, or assigned responsibility under 
State policy or under this paragraph, to provide or 
pay for any services that are also considered to be 
vocational rehabilitation services (other than those 
specified in paragraph (5)(D) and in paragraphs (1) 
through (4) and (14) of section 103(a)), such public 
entity shall fulfill that obligation or responsibility, 
either directly or by contract or other arrangement. 
"(ii) REIMBURSEMENT.—If a public entity other 
than the designated State unit fails to provide or pay 
for the services described in clause (i) for an eligible 
individual, the designated State unit shall provide or 
pay for such services to the individual. Such designated 
State unit may claim reimbursement for the services 
from the public entity that failed to provide or pay 
,i 
for such services. Such public entity shall reimburse 
the designated State unit pursuant to the terms of 
the 
interagency 
agreement 
or 
other 
mechanism 
described in this paragraph according to the procedures 
112 STAT. 1126 
PUBLIC LAW 105-220—AUG. 7, 1998 
established in such agreement or mechanism pursuant 
to subparagraph (B)(ii). 
"(D) METHODS.—The Governor of a State may meet 
the requirements of subparagraph (B) through— 
"(i) a State statute or regulation; 
"(ii) a signed agreement between the respective 
officials of the public entities that clearly identifies 
the responsibilities of each public entity relating to 
the provision of services; or 
"(iii) another appropriate method, as determined 
by the designated State unit. 
"(9) INDIVIDUALIZED PLAN FOR EMPLOYMENT.— 
"(A) DEVELOPMENT AND IMPLEMENTATION.—The State 
plan shall include an assurance that an individualized 
plan for employment meeting the requirements of section 
102(b) will be developed and implemented in a timely man-
ner for an individual subsequent to the determination of 
the eligibility of the individual for services under this title, 
except that in a State operating under an order of selection 
described in paragraph (5), the plan will be developed 
and implemented only for individuals meeting the order 
of selection criteria of the State. 
"(B) PROVISION OF SERVICES.—The State plan shall 
include an assurance that such services will be provided 
in accordance with the provisions of the individualized 
plan for employment. 
"(10) REPORTING REQUIREMENTS.— 
"(A) IN GENERAL.—^The State plan shall include an 
assurance that the designated State agency will submit 
reports in the form and level of detail and at the time 
required by the Commissioner regarding applicants for, 
and eligible individuals receiving, services under this title. 
"(B) ANNUAL REPORTING.—In specifying the informa-
tion to be submitted in the reports, the Commissioner 
shall require annual reporting on the eligible individuals 
receiving the services, on those specific data elements 
described in section 136(d)(2) of the Workforce Investment 
Act of 1998 that are determined by the Secretary to be 
relevant in assessing the performance of designated State 
units in carrying out the vocational rehabilitation program 
established under this title. 
"(C) ADDITIONAL DATA.—In specifying the information 
. required to be submitted in the reports, the Commissioner 
shall require additional data with regard to applicants 
and eligible individuals related to— 
"(i) the number of applicants and the number of 
individuals determined to be eligible or ineligible for 
the program carried out under this title, including— 
"(I) the number of individuals determined to 
be ineligible because they did not require voca-
tional rehabilitation services, as provided in sec-
tion 102(a); and 
"(II) the number of individuals determined, 
on the basis of clear and convincing evidence, to 
be too severely disabled to benefit in terms of 
an 
employment 
outcome 
from 
vocational 
rehabilitation services; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1127 
"(ii) the number of individuals who received voca-
tional rehabilitation services through the program, 
including— 
"(I) the number who received services under 
paragraph (5)(D), but not assistance under an 
individualized plan for employment; 
"(II) of those recipients who are individuals 
with significant disabilities, the number who 
received assistance under an individualized plan 
for employment consistent with section 102(b); and 
"(III) of those recipients who are not individ-
uals with significant disabilities, the number who 
received assistance under an individualized plan 
for employment consistent with section 102(b); 
"(iii) of those applicants and eligible recipients who 
are individuals with significant disabilities— 
"(I) the number who ended their participation 
in the program carried out under this title and 
the number who achieved employment outcomes 
after receiving vocational rehabilitation services; 
and 
"(II) the number who ended their participation 
in the program and who were employed 6 months 
and 12 months after securing or regaining employ-
ment, or, in the case of individuals whose employ-
ment outcome was to retain or advance in employ-
ment, who were employed 6 months and 12 months 
after achieving their emplo3mient outcome, includ-
ing— 
"(aa) the number who earned the mini-
mum wage rate specified in section 6(a)(1) of 
the Fair Labor Standards Act of 1938 (29 
U.S.C. 206(a)(1)) or another wage level set 
by the Commissioner, during such employ-
ment; and 
"(bb) the number who received employ-
ment benefits from an employer during such 
employment; and 
"(iv) of those applicants and eligible recipients who 
are not individuals with significant disabilities— 
"(I) the number who ended their participation 
in the program carried out under this title and 
the number who achieved emplo3anent outcomes 
after receiving vocational rehabilitation services; 
and 
"(II) the number who ended their participation 
in the program and who were employed 6 months 
and 12 months after securing or regaining employ-
ment, or, in the case of individuals whose employ-
ment outcome was to retain or advance in employ-
ment, who were employed 6 months and 12 months 
after achieving their employment outcome, includ-
ing— 
"(aa) the number who earned the mini-
mum wage rate specified in section 6(a)(1) of 
the Fair Labor Standards Act of 1938 (29 
U.S.C. 206(a)(1)) or another wage level set 
112 STAT. 1128 
PUBLIC LAW 105-220—AUG. 7, 1998 
by the Commissioner, during such employ-
ment; and 
"(bb) the number who received employ-
ment benefits from an employer during such 
employment. 
"(D) COSTS AND RESULTS.—The Commissioner shall 
also require that the designated State agency include in 
the reports information on— 
"(i) the costs under this title of conducting adminis-
tration, providing assessment services, counseling and 
guidance, and other direct services provided by des-
ignated State agency staff, providing services pur-
chased under individualized plans for employment, 
supporting small business enterprises, establishing, 
developing, and improving community rehabilitation 
programs, providing other services to groups, and facili-
tating use of other programs under this Act and title 
I of the Workforce Investment Act of 1998 by eligible 
individuals; and 
"(ii) the results of annual evaluation by the State 
of program effectiveness under paragraph (15)(E). 
"(E) ADDITIONAL INFORMATION.—The 
Commissioner 
shall require that each designated State unit include in 
the reports additional information related to the applicants 
and eligible individuals, obtained either through a complete 
count or sampling, including— 
"(i) information on— 
"(I) age, gender, race, ethnicity, education, cat-
egory of impairment, severity of disability, and 
whether the individuals are students with disabil-
ities; 
"(II) dates of application, determination of 
eligibility or ineligibility, initiation of the individ-
ualized plan for emplojrment, and termination of 
participation in the program; 
"(III) earnings at the time of application for 
the program and termination of participation in 
the program; 
"(IV) work status and occupation; 
"(V) t3T)es of services, including assistive tech-
nology services and assistive technology devices, 
provided under the program; 
"(VI) types of public or private programs or 
agencies that furnished services under the pro-
gram; and 
"(VII) the reasons for individuals terminating 
participation in the program without achieving an 
emplojrment outcome; and 
"(ii) information 
necessary to determine the 
success of the State in meeting— 
"(I) the State performance measures estab-
lished under section 136(b) of the Workforce 
Investment Act of 1998, to the extent the measures 
are applicable to individuals with disabilities; and 
"(II) the standards and indicators established 
pursuant to section 106. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1129 
"(F) COMPLETENESS AND CONFIDENTIALITY.—The State 
plan shall include an assurance that the information 
submitted in the reports will include a complete count, 
except as provided in subparagraph (E), of the applicants 
and eligible individuals, in a manner permitting the great-
est possible cross-classification of data and that the identity 
of each individual for which information is supplied under 
this paragraph will be kept confidential. 
"(11) COOPERATION, COLLABORATION, AND COORDINATION.— 
"(A) 
COOPERATIVE AGREEMENTS WITH OTHER COMPO-
NENTS OF STATEWIDE WORKFORCE INVESTMENT SYSTEMS.— 
The State plan shall provide that the designated State 
unit or designated State agency shall enter into a coopera-
tive agreement with other entities that are components 
of the statewide workforce investment system of the State, 
regarding the system, which agreement may provide for— 
"(i) provision of intercomponent staff training and 
technical assistance with regard to— 
"(I) the availability and benefits of, and 
information on eligibility standards for, vocational 
rehabilitation services; and 
"(II) the promotion of equal, effective, and 
meaningful 
participation 
by 
individuals 
with 
disabilities in workforce investment activities in 
the State through the promotion of program acces-
sibility, the use of nondiscriminatory policies and 
procedures, and the provision of reasonable accom-
modations, 
auxiliary 
aids 
and 
services, 
and 
rehabilitation technology, for individuals with 
disabilities; 
"(ii) use of information and financial management 
systems that link all components of the statewide 
workforce investment system, that link the components 
to other electronic networks, including nonvisual elec-
tronic networks, and that relate to such subjects as 
employment statistics, and information on job vacan-
cies, career planning, and workforce investment activi-
ties; 
"(iii) use of customer service features such as com-
mon intake and referral procedures, customer data-
bases, resource information, and human services hot-
lines; 
"(iv) establishment of cooperative efforts with 
employers to— 
"(I) facilitate job placement; and 
"(II) carry out any other activities that the 
designated State unit and the employers determine 
to be appropriate; 
"(v) identification of staff roles, responsibilities, 
and available resources, and specification of the finan-
cial responsibility of each component of the statewide 
workforce investment system with regard to paying 
for necessary services (consistent with State law and 
Federal requirements); and 
"(vi) specification of procedures for resolving dis-
putes among such components. 
112 STAT. 1130 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(B) REPLICATION OF COOPERATIVE AGREEMENTS.—^The 
State plan shall provide for the replication of such coopera-
tive agreements at the local level between individual offices 
of the designated State unit and local entities carrying 
out activities through the statewide workforce investment 
system. 
"(C) 
INTERAGENCY COOPERATION WITH OTHER AGEN-
CIES.—^The State plan shall include descriptions of inter-
agency cooperation with, and utilization of the services 
and facilities of, Federal, State, and local agencies and 
programs, including programs carried out by the Under 
Secretary for Rural Development of the Department of 
Agriculture and State use contracting programs, to the 
extent that such agencies smd programs are not carrying 
out activities through the statewide workforce investment 
system. 
"(D) COORDINATION WITH EDUCATION OFFICIALS.—^The 
State plan shall contain plans, policies, and procedures 
for coordination between tne designated State agency and 
education officials responsible for the public education of 
students with disabilities, that are designed to facilitate 
the transition of the students with disabilities from the 
receipt of educational services in school to the receipt of 
vocational rehabilitation services under this title, including 
information on a formal interagency agreement with the 
State educational agency that, at a minimum, provides 
for— 
"(i) consultation and technical assistance to assist 
educational agencies in plsmning for the transition of 
students with disabilities from school to post-school 
activities, including vocational rehabilitation services; 
"(ii) transition planning by personnel of the des-
ignated State agency and educational agency personnel 
for students with disabilities that facilitates 
the 
development and completion of their individualized 
education programs under section 614(d) of the Individ-
uals with Disabilities Education Act (as added by sec-
tion 101 of Public Law 105-17); 
"(iii) the roles and responsibilities, including finan-
cial responsibilities, of each agency, including provi-
sions for determining State lead agencies and qualified 
personnel responsible for transition services; and 
"(iv) procedures for outreach to and identification 
of students with disabilities who need the transition 
services. 
"(E) COORDINATION WITH STATEWIDE INDEPENDENT LIV-
ING COUNCILS AND INDEPENDENT LIVING CENTERS.—^The 
State plan shall include an assurance that the designated 
State unit, the Statewide Independent Living Council 
established under section 705, and the independent living 
centers described in part C of title VII within the State 
have developed working relationships and coordinate their 
activities. 
"(F) 
COOPERATIVE AGREEMENT WITH RECIPIENTS OF 
GRANTS FOR SERVICES TO AMERICAN INDIANS.—In applicable 
cases, the State plan shall include an assurance that the 
State has entered into a formal cooperative agreement 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1131 
with each grant recipient in the State that receives funds 
under part C. The agreement shall describe strategies for 
collaboration and coordination in providing vocational 
rehabilitation services to American Indians who are 
individuals with disabilities, including— 
"(i) strategies for interagency referral and informa-
tion sharing that will assist in eligibility determina-
tions and the development of individualized plans for 
employment; 
"(ii) procedures for ensuring that American Indians 
who are individuals with disabilities and are living 
near a reservation or tribal service area are provided 
vocational rehabilitation services; and 
"(iii) provisions for sharing resources in cooperative 
studies and assessments, joint training activities, and 
other collaborative activities designed to improve the 
provision of services to American Indians who are 
individuals with disabilities. 
"(12) RESIDENCY.—^The State plan shall include an assur-
ance that the State will not impose a residence requirement 
that excludes from services provided under the plan any individ-
ual who is present in the State. 
"(13) SERVICES TO AMERICAN INDIANS.—The State plan shall 
include an assurance that, except as otherwise provided in 
part C, the designated State agency will provide vocational 
rehabilitation services to American Indians who are individuals 
with disabilities residing in the State to the same extent as 
the designated State agency provides such services to other 
significant populations of individuals with disabilities residing 
in the State. 
"(14) 
ANNUAL 
REVIEW 
OF 
INDIVIDUALS IN 
EXTENDED 
EMPLOYMENT OR OTHER EMPLOYMENT UNDER SPECIAL CERTIFI-
CATE PROVISIONS OF THE FAIR LABOR STANDARDS ACT OF 1938.— 
The state plan shall provide for— 
"(A) an annual review and reevaluation of the status 
of each individual with a disability served under this title 
who has achieved an emplo5anent outcome either in an 
extended employment setting in a community rehabilitation 
program or any other emplojmtient under section 14(c) of 
the Fair Labor Standards Act (29 U.S.C. 214(c)) for 2 
years after the achievement of the outcome (and thereafter 
if requested by the individual or, if appropriate, the individ-
ual's representative), to determine the interests, priorities, 
and needs of the individual with respect to competitive 
employment or training for competitive employment; 
"(B) input into the review and reevaluation, and a 
signed acknowledgment that such review and reevaluation 
have been conducted, by the individual with a disability, 
or, if appropriate, the individual's representative; and 
"(C) maximum efforts, including the identification and 
provision of vocational rehabilitation services, reasonable 
accommodations, and other necessary support services, to 
assist the individuals described in subparagraph (A) in 
engaging in competitive employment. 
"(15) ANNUAL STATE GOALS AND REPORTS OF PROGRESS.— 
"(A) ASSESSMENTS AND ESTIMATES.—The State plan 
shall— 
112 STAT. 1132 
PUBLIC LAW 105-220—AUG. 7, 1998 
Reports. 
Reports. 
Reports. 
"(i) include the results of a comprehensive, state-
wide assessment, jointly conducted by the designated 
State unit and the State Rehabilitation Council (if 
the State has such a Council) every 3 years, describing 
the rehabilitation needs of individuals with disabilities 
residing within the State, particularly the vocational 
rehabilitation services needs of— 
"(I) individuals with the most 
significant 
disabilities, including their need for supported 
employment services; 
"(II) individuals with disabilities who are 
minorities and individuals with disabilities who 
have been unserved or underserved by the voca-
tional rehabilitation program carried out under 
this title; and 
"(III) individuals 
with disabilities 
served 
through 
other 
components 
of the 
statewide 
workforce investment system (other than the voca-
tional rehabilitation program), as identified by 
such individuals and personnel assisting such 
individuals through the components; 
"(ii) include an assessment of the need to establish, 
develop, or improve community rehabilitation pro-
grams within the State; and 
"(iii) provide that the State shall submit to the 
Commissioner a report containing information regard-
ing updates to the assessments, for any year in which 
the State updates the assessments. 
"(B) ANNUAL ESTIMATES.—The State plan shall include, 
and shall provide that the State shall annually submit 
a report to the Commissioner that includes, State estimates 
**(i) the number of individugJs in the State who 
are eligible for services under this title; 
"(ii) the number of such individuals who will 
receive services provided with funds provided under 
part B and under part B of title VI, including, if 
the designated State agency uses an order of selection 
in accordance with paragraph (5), estimates of the 
number of individuals to be served under each priority 
category within the order; and 
"(iii) the costs of the services described in clause 
(i), including, if the designated State agency uses an 
order of selection in accordance with paragraph (5), 
the service costs for each priority category within the 
order. 
"(C) GOALS AND PRIORITIES.— 
"(i) IN GENERAL.—^The State plan shall identify 
the goals and priorities of the State in carrying out 
the program. The goals and priorities shall be jointly 
developed, agreed to, and reviewed annually by the 
designated State unit and the State Rehabilitation 
Council, if the State has such a Council. Any revisions 
to the goals and priorities shall be jointly agreed to 
by the designated State unit and the State Rehabilita-
tion Council, if the State has such a Council. The 
State plan shall provide that the State shall submit 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1133 
to the Commissioner a report containing information 
regarding revisions in the goals and priorities, for any 
year in which the State revises the goals and priorities, 
"(ii) BASIS.—^The State goals and priorities shall 
be based on an analysis of— 
"(I) the comprehensive assessment described 
in subparagraph (A), including any updates to the 
assessment; 
"(II) the performance of the State on the stand-
ards and indicators established under section 106; 
and 
"(III) other available information on the oper-
ation and the effectiveness of the vocational 
rehabilitation program carried out in the State, 
including any reports received from the State 
Rehabilitation Council, under section 105(c) and 
the findings and recommendations from monitor-
ing activities conducted under section 107. 
"(iii) SERVICE AND OUTCOME GOALS FOR CATEGORIES 
IN ORDER OF SELECTION.—If the designated State 
agency uses an order of selection in accordance with 
paragraph (5), the State shall also identify in the State 
plan service and outcome goals and the time within 
which these goals may be achieved for individuals in 
each priority category within the order. 
"(D) STRATEGIES.—^The State plan shall contain a 
description of the strategies the State will use to address 
the needs identified in the assessment conducted under 
subparagraph (A) and achieve the goals and priorities 
identified in subparagraph (C), including— 
"(i) the methods to be used to expand and improve 
services to individuals with disabilities, including how 
a broad range of assistive technology services and 
assistive technology devices will be provided to such 
individuals at each stage of the rehabilitation process 
and how such services and devices will be provided 
to such individuals on a statewide basis; 
"(ii) outreach procedures to identify and serve 
individuals with disabilities who are minorities and 
individuals with disabilities who have been unserved 
or underserved by the vocational rehabilitation pro-
gram; 
"(iii) where necessary, the plan of the State for 
establishing, developing, or improving 
community 
rehabilitation programs; 
"(iv) strategies to improve the performance of the 
State with respect to the evaluation standards and 
performance indicators established pursuant to section 
106; and 
"(v) strategies for assisting entities carrying out 
other components of the statewide workforce invest-
ment system (other than the vocational rehabilitation 
program) in assisting individuals with disabilities. 
"(E) EVALUATION AND REPORTS OF PROGRESS.—^The 
State plan shall— 
"(i) include the results of an evaluation of the 
effectiveness of the vocational rehabilitation program, 
112 STAT. 1134 
PUBLIC LAW 105-220—AUG. 7, 1998 
and a joint report by the designated State unit and 
the State Rehabilitation Council, if the State has such 
a Council, to the Commissioner on the progress made 
in improving the effectiveness from the previous year, 
which evaluation and report shall include— 
"(I) an evaluation of the extent to which the 
goals identified in subparagraph (C) were achieved; 
"(11) a description of strategies that contrib-
uted to achieving the goals; 
"(III) to the extent to which the goals were 
not achieved, a description of the factors that 
impeded that achievement; and 
"(IV) an assessment of the performance of the 
State on the standards and indicators established 
pursuant to section 106; and 
"(ii) provide that the designated State unit and 
the State Rehabilitation Council, if the State has such 
a Council, shall jointly submit to the Commissioner 
an annual report that contains the 
information 
described in clause (i). 
"(16) PUBLIC COMMENT.—^The State plan shall— 
"(A) provide that the designated State agency, prior 
to the adoption of any policies or procedures governing 
the provision of vocational rehabilitation services under 
the State plan (including making any amendment to such 
policies and procedures), shall conduct public meetings 
throughout the State, after providing adequate notice of 
the meetings, to provide the public, including individuals 
with disabilities, an opportunity to comment on the policies 
or procedures, and actively consult with the Director of 
the client assistance program carried out under section 
112, and, as appropriate, Indian tribes, tribal organizations, 
and Native Hawaiian organizations on the policies or proce-
dures; and 
"(B) provide that the designated State agency (or each 
designated State agency if two agencies are designated) 
and any sole agency administering the plan in a political 
subdivision of the State, shall take into account, in connec-
tion with matters of general policy arising in the adminis-
tration of the plan, the views of— 
"(i) individuals and groups of individuals who are 
recipients of vocational rehabilitation services, or in 
appropriate cases, the individuals' representatives; 
"(ii) personnel working in programs that provide 
vocational rehabilitation services to individuals with 
disabilities; 
"(iii) providers of vocational rehabilitation services 
to individuals with disabilities; 
"(iv) the director of the client assistance program; 
and 
"(v) the State Rehabilitation Council, if the State 
has such a Council. 
"(17) USE OF FUNDS FOR CONSTRUCTION OF FACILITIES.— 
The State plan shall provide that if, under special cir-
cumstances, the State plan includes provisions for the construc-
tion of facilities for community rehabilitation programs— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1135 
"(A) the Federal share of the cost of construction for 
the facilities for a fiscal year will not exceed an amount 
equal to 10 percent of the State's allotment under section 
110 for such year; 
"(B) the provisions of section 306 (as in effect on the 
day before the date of enactment of the Rehabilitation 
Act Amendments of 1998) shall be applicable to such 
construction and such provisions shall be deemed to apply 
to such construction; and 
"(C) there shall be compliance with regulations the Regulations. 
Commissioner shall prescribe designed to assure that no 
State will reduce its efforts in providing other vocational 
rehabilitation services (other than for the establishment 
of facilities for community rehabilitation programs) because 
the plan includes such provisions for construction. 
"(18) INNOVATION AND EXPANSION ACTIVITIES.—^The State 
plan shall— 
"(A) include an assurance that the State will reserve 
and use a portion of the funds allotted to the State under 
section 110— 
"(i) for the development and implementation of 
innovative approaches to expand and improve the 
provision 
of vocational 
rehabilitation 
services 
to 
individuals with disabilities under this title, particu-
larly individuals with the most significant disabilities, 
consistent with the findings of the statewide assess-
ment and goals and priorities of the State as described 
in paragraph (15); and 
"(ii) to support the funding of— 
"(I) the State Rehabilitation Council, if the 
State has such a Council, consistent with the plan 
prepared under section 105(d)(1); and 
"(II) the Statewide Independent Living Coun-
cil, consistent with the plan prepared under section 
705(e)(1); 
"(B) include a description of how the reserved funds 
will be utilized; and 
"(C) provide that the State shall submit to the Commis- Reports, 
sioner an annual report containing a description of how 
the reserved funds will be utilized. 
"(19) CHOICE.—^The State plan shall include an assurance 
that applicants and eligible individuals or, as appropriate, the 
applicants' representatives or individuals' representatives, will 
be provided information and support services to assist the 
applicants smd individuals in exercising informed 
choice 
throughout the rehabilitation process, consistent with the provi-
sions of section 102(d). 
"(20) INFORMATION AND REFERRAL SERVICES.— 
"(A) IN GENERAL.—^The State plan shall include an 
assurance that the designated State agency will implement 
an information and referral system adequate to ensure 
that individuals with disabilities will be provided accurate 
vocational rehabilitation information and guidance, using 
appropriate modes of communication, to assist such individ-
uals in preparing for, securing, retaining, or regaining 
employment, and will be appropriately referred to Federal 
112 STAT. 1136 
PUBLIC LAW 105-220—AUG. 7, 1998 
and State programs (other than the vocational rehabilita-
tion program carried out under this title), including other 
components of the statewide workforce investment system 
in the State. 
"(B) 
REFERRALS.—^An 
appropriate 
referral 
made 
through the system shall— 
"(i) be to the Federal or State programs, including 
programs carried out by other components of the state-
wide workforce investment system in the State, best 
suited to address the specific employment needs of 
an individual with a disability; and 
"(ii) include, for each of these programs, provision 
to the individual of— 
"(I) a notice of the referral by the designated 
State agency to the agency carrying out the pro-
gram; 
"(II) information identifying a specific point 
of contact within the agency carrying out the pro-
gram; and 
"(III) information and advice regarding the 
most suitable services to assist the individual to 
prepare for, secure, retain, or regain emplo3nnent. 
"(21) STATE INDEPENDENT CONSUMER-CONTROLLED COMMIS-
SION; STATE REHABILITATION COUNCIL.— 
"(A) COMMISSION OR COUNCIL.—^The State plan shall 
provide that either— 
"(i) the designated State agency is an independent 
commission that— 
"(I) is responsible under State law for operat-
ing, or overseeing the operation of, the vocational 
rehabilitation program in the State; 
"(II) is consumer-controlled by persons who— 
"(aa) are individuals with physical or men-
tal impairments that substantially limit major 
life activities; and 
"(bb) represent individuals with a broad 
range of disabilities, unless the designated 
State unit under the direction of the Commis-
• 
sion is the State agency for individuals who 
are blind; 
"(III) includes family members, advocates, or 
other representatives, of individuals with mental 
impairments; and 
"(IV) undertakes the functions set forth in sec-
tion 105(c)(4); or 
"(ii) the State has established a State Rehabilita-
tion Council that meets the criteria set forth in section 
105 and the designated State unit— 
"(I) in accordance with paragraph (15), jointly 
develops, agrees to, and reviews annually State 
goals and priorities, and jointly submits annual 
reports of progress with the Council; 
"(II) regularly consults with the Council 
regarding the development, implementation, and 
revision of State policies and procedures of general 
applicability pertaining to the provision of voca-
tional rehabilitation services; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1137 
"(III) includes in the State plan and in any 
revision to the State plan, a summary of input 
provided by the Council, including recommenda-
tions from the annual report of the Council 
described in section 105(c)(5), the review and 
analysis of consumer satisfaction described in sec-
tion 105(c)(4), and other reports prepared by the 
Council, and the response of the designated State 
unit to such input and recommendations, including 
explanations for rejecting any input or rec-
ommendation; and 
"(IV) transmits to the Council— 
Reports. 
"(aa) all plans, reports, and other informa-
tion required under this title to be submitted 
to the Secretary; 
"(bb) all policies, and information on all 
practices and procedures, of general applicabil-
ity provided to or used by rehabilitation 
personnel in carrying out this title; and 
"(cc) 
copies 
of 
due 
process 
hearing 
decisions issued under this title, which shall 
be transmitted in such a manner as to ensure 
that the identity of the participants in the 
hearings is kept confidential. 
"(B) 
MORE THAN ONE DESIGNATED STATE AGENCY.— 
In the case of a State that, under section 101(a)(2), des-
ignates a State agency to administer the part of the State 
plan under which vocational rehabilitation services are pro-
vided for individuals who are blind (or to supervise the 
administration of such part by a local agency) and des-
ignates a separate State agency to administer the rest 
of the State plan, the State shall either establish a State 
Rehabilitation Council for each of the two agencies that 
does not meet the requirements in subparagraph (A)(i), 
or establish one State Rehabilitation Council for both agen-
cies if neither agency meets the requirements of subpara-
graph (A)(i). 
"(22) SUPPORTED EMPLOYMENT STATE PLAN SUPPLEMENT.— 
The State plan shall include an assurance that the State has 
an acceptable plan for carrying out part B of title VI, including 
the use of funds under that part to supplement funds made 
available under part B of this title to pay for the cost of 
services leading to supported employment. 
"(23) ANNUAL UPDATES.—The plan shall include an assur- Reports. 
ance that the State will submit to the Commissioner reports 
containing annual updates of the information required under 
paragraph (7) (relating to a comprehensive system of personnel 
development) and any other updates of the information required 
under this section that are requested by the Commissioner, 
and annual reports as provided in paragraphs (15) (relating 
to assessments, estimates, goals and priorities, and reports 
of progress) and (18) (relating to innovation and expansion), 
at such time and in such manner as the Secretary may deter-
mine to be appropriate. 
"(24) 
CERTAIN 
CONTRACTS 
AND 
COOPERATIVE 
AGREE-
MENTS.— 
112 STAT. 1138 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(A) 
CONTRACTS WITH FOR-PROFIT ORGANIZATIONS.— 
The State plan shall provide that the designated State 
agency has the authority to enter into contracts with for-
profit organizations for the purpose of providing, as voca-
tional rehabilitation services, on-the-job training 
and 
related programs for individuals with disabilities under 
part A of title VI, upon a determination by such agency 
that such for-profit organizations are better qualified to 
provide such rehabilitation services than nonprofit agencies 
and organizations. 
"(B) 
COOPERATIVE AGREEMENTS WITH PRIVATE NON-
PROFIT ORGANIZATIONS.—The State plan shall describe the 
manner in which cooperative agreements with private non-
profit vocational rehabilitation service providers will be 
established. 
"(b) APPROVAL; DISAPPROVAL OF THE STATE PLAN.— 
"(1) APPROVAL.—^The Commissioner shall approve any plan 
that the Commissioner finds fulfills the conditions specified 
in this section, and shall disapprove any plan that does not 
fulfill such conditions. 
Notification. 
"(2) DISAPPROVAL.—Prior to disapproval of the State plan, 
the Commissioner shall notify the State of the intention to 
disapprove the plan and shall afford the State reasonable notice 
£ind opportunity for a hearing. 
29 use 722. 
"SEC. 102. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EMPLOYMENT. 
"(a) ELIGIBILITY.— 
"(1) CRITERION FOR ELIGIBILITY.—An individual is eligible 
for assistance under this title if the individual— 
"(A) is an individual with a disability under section 
7(20)(A); and 
"(B) requires vocational rehabilitation services to pre-
pare for, secure, retain, or regain employment. 
"(2) PRESUMPTION OF BENEFIT.— 
"(A) DEMONSTRATION.—For purposes of this section, 
an individual shall be presumed to be an individual that 
can benefit in terms of an employment outcome from voca-
tional rehabilitation services under section 7(20)(A), unless 
the designated State unit involved can demonstrate by 
clear and convincing evidence that such individual is 
incapable of benefiting in terms of an emplo3rment outcome 
from vocational rehabilitation services due to the severity 
of the disability of the individual. 
"(B) METHODS.—^In making the demonstration required 
under subparagraph (A), the designated State unit shall 
explore the individual's abilities, capabilities, and capacity 
to perform in work situations, through the use of trial 
work experiences, as described in section 7(2)(D), with 
appropriate supports provided through the designated State 
unit, except under limited circumstances when an individ-
ual cannot take advantage of such experiences. Such experi-
ences shall be of sufficient variety and over a sufficient 
period of time to determine the eligibility of the individual 
or to determine the existence of clear and convincing evi-
dence that the individual is incapable of benefiting in terms 
of an employment outcome from vocational rehabilitation 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1139 
services due to the severity of the disabiHty of the individ-
ual. 
"(3) PRESUMPTION OF ELIGIBILITY.— 
"(A) IN GENERAL.—For purposes of this section, an 
individual who has a disability or is blind as determined 
pursuant to title II or title XVI of the Social Security 
Act (42 U.S.C. 401 et seq. and 1381 et seq.) shall be— 
"(i) considered to be an individual with a signifi-
cant disability under section 7(21)(A); and 
"(ii) presumed 
to be 
eligible 
for 
vocational 
rehabilitation services under this title (provided that 
the individual intends to achieve an employment out-
come consistent with the unique strengths, resources, 
priorities, concerns, abilities, capabilities, interests, 
and informed choice of the individual) unless the des-
ignated State unit involved can demonstrate by clear 
and convincing evidence that such individual is incapa-
ble of benefiting in terms of an employment outcome 
from vocational rehabilitation services due to the sever-
ity of the disability of the individual in accordance 
with paragraph (2). 
"(B) CONSTRUCTION.—Nothing in this paragraph shall 
be construed to create an entitlement to any vocational 
rehabilitation service. 
"(4) U S E OF EXISTING INFORMATION.— 
"(A) IN GENERAL.—^To the maximum extent appropriate 
and consistent with the requirements of this part, for pur-
poses of determining the eligibility of an individual for 
vocational rehabilitation services under this title and devel-
oping the individualized plan for emplojnnent described 
in subsection (b) for the individual, the designated State 
unit shall use information that is existing and current 
(as of the date of the determination of eligibility or of 
the development of the individualized plan for employ-
ment), including information available from other programs 
and providers, particularly information used by education 
officials and the Social Security Administration, informa-
tion provided by the individual and the family of the 
individual, and information obtained under the assessment 
for determining eligibility and vocational rehabilitation 
needs. 
"(B) DETERMINATIONS BY OFFICIALS OF OTHER AGEN-
CIES.—Determinations made by officials of other agencies, 
particularly 
education 
officials 
described 
in 
section 
101(a)(ll)(D), regarding whether an individual satisfies one 
or more factors relating to whether an individual is an 
individual with a disability under section 7(20)(A) or an 
individual with a significant disability under section 
7(21)(A) shall be used, to the extent appropriate and 
consistent with the requirements of this part, in assisting 
the designated State unit in making such determinations. 
"(C) BASIS.—The determination of eligibility for voca-
tional rehabilitation services shall be based on— 
"(i) the review of existing data described in section 
7(2)(A)(i); and 
112 STAT. 1140 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(ii) to the extent that such data is unavailable 
or insufficient for determining eligibility, the provision 
of assessment activities described in section 7(2)(A)(ii). 
"(5) DETERMINATION OF INELIGIBILITY.—If an individual 
who applies for services under this title is determined, based 
on the review of existing data and, to the extent necessary, 
the assessment activities described in section 7(2)(A)(ii), not 
to be eligible for the services, or if an eligible individual receiv-
ing services under an individualized plan for employment is 
determined to be no longer eligible for the services— 
"(A) the ineligibility determination involved shall be 
made only after providing an opportunity for full consulta-
tion with the individual or, as appropriate, the individual's 
representative; 
"(B) the individual or, as appropriate, the individual's 
representative, shall be informed in writing (supplemented 
as necessary by other appropriate modes of communication 
consistent with the informed choice of the individual) of 
the ineligibility determination, including— 
"(i) the reasons for the determination; and 
"(ii) a description of the means by which the 
individual may express, and seek a remedy for, any 
dissatisfaction with the determination, including the 
procedures for review by an impartial hearing officer 
under subsection (c); 
"(C) the individual shall be provided with a description 
of services available from the client assistance program 
under section 112 and information on how to contact that 
program; and 
"(D) any ineligibility determination that is based on 
a finding that the individual is incapable of benefiting 
in terms of an employment outcome shall be reviewed— 
"(i) within 12 months; and 
"(ii) thereafter, if such a review is requested by 
the individual or, if appropriate, by the individual's 
representative. 
"(6) TIMEFRAME FOR MAKING AN ELIGIBILITY DETERMINA-
TION.—^The designated State unit shall determine whether an 
individual is eligible for vocational rehabilitation services under 
this title within a reasonable period of time, not to exceed 
60 days, after the individual has submitted an application 
for the services unless— 
"(A) exceptional and unforeseen circumstances beyond 
the control of the designated State unit preclude m£Jdng 
an eligibility determination within 60 days and the des-
ignated State unit and the individual agree to a specific 
extension of time; or 
"(B) the designated State unit is exploring an individ-
ual's abilities, capabilities, and capacity to perform in work 
situations under paragraph (2)(B). 
"(b) DEVELOPMENT OF AN INDIVIDUALIZED PLAN FOR EMPLOY-
MENT.— 
"(1) OPTIONS FOR DEVELOPING AN INDIVIDUALIZED PLAN FOR 
EMPLOYMENT.—If an individual is determined to be eligible 
for vocational rehabilitation services as described in subsection 
(a), the designated State unit shall complete the assessment 
for determining eligibility and vocational rehabilitation needs, 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1141 
as appropriate, and shall provide the eligible individual or 
the individual's representative, in writing and in an appropriate 
mode of communication, with information on the individual's 
options for developing an individualized plan for emplo3rment, 
including— 
"(A) information on the availability of assistance, to 
the extent determined to be appropriate by the eligible 
individual, from a qualified vocational rehabilitation coun-
selor in developing all or part of the individualized plan 
for emplo3mient for the individual, and the availability 
of technical assistance in developing all or part of the 
individualized plan for employment for the individual; 
"(B) a description of the full range of components that 
shall be included in an individualized plan for employment; 
"(C) as appropriate— 
"(i) an explanation of agency guidelines and cri-
teria associated with financial commitments concerning 
an individualized plan for employment; 
"(ii) additional information the eligible individual 
requests or the designated State unit determines to 
be necessary; and 
"(iii) information on the availability of assistance 
in completing designated State agency forms required 
in developing an individualized plan for emplo3anent; 
and 
"(D)(i) a description of the rights and remedies avail-
able to such an individual including, if appropriate, 
recourse to the processes set forth in subsection (c); and 
"(ii) a description of the availability of a client assist-
ance program established pursuant to section 112 and 
information about how to contact the client assistance pro-
gram. 
"(2) MANDATORY PROCEDURES.— 
"(A) WRITTEN DOCUMENT.—An individualized plan for 
employment shall be a written document prepared on forms 
provided by the designated State unit. 
"(B) INFORMED CHOICE.—An individuahzed plan for 
employment shall be developed and implemented in a man-
ner that affords eligible individuals the opportunity to exer-
cise informed choice in selecting an employment outcome, 
the specific vocational rehabilitation services to be provided 
under the plan, the entity that will provide the vocational 
rehabilitation services, and the methods used to procure 
the services, consistent with subsection (d). 
"(C) SIGNATORIES.—An individualized plan for employ-
ment shall be— 
"(i) agreed to, and signed by, such eligible individ-
ual or, as appropriate, the individual's representative; 
and 
"(ii) approved and signed by a qualified vocational 
rehabilitation counselor employed by the designated 
State unit. 
"(D) COPY.—A copy of the individualized plan for 
employment for an eligible individual shall be provided 
to the individual or, as appropriate, to the individual's 
representative, in writing and, if appropriate, in the native 
59-194 0-98-9:QL3Part2 
112 STAT. 1142 
PUBLIC LAW 105-220—AUG. 7, 1998 
Isinguage or mode of communication of the individual or, 
as appropriate, of the individual's representative. 
"(E) REVIEW AND AMENDMENT.^The individualized 
plan for employment shall be— 
"(i) reviewed at least annually by— 
"(I) a qualified vocational rehabilitation coun-
selor; and 
"(II) the eligible individual or, as appropriate, 
the individual's representative; and 
"(ii) amended, as necessary, by the individual or, 
as appropriate, the individual's representative, in 
collaboration with a representative of the designated 
State agency or a qualified vocational rehabilitation 
counselor (to the extent determined to be appropriate 
by the individual), if there are substantive changes 
in the employment outcome, the vocational rehabilita-
tion services to be provided, or the service providers 
of the services (which amendments shall not take effect 
until agreed to and signed by the eligible individual 
or, as appropriate, the individual's representative, and 
by a qualified vocational rehabilitation 
counselor 
employed by the designated State unit). 
"(3) MANDATORY COMPONENTS OF AN INDIVIDUALIZED PLAN 
FOR EMPLOYMENT.—^Regardless of the approach selected by an 
eligible individual to develop an individualized plan for employ-
ment, an individualized plan for employment shall, at a mini-
mum, contain mandatory components consisting of— 
"(A) a description of the specific employment outcome 
that is chosen by the eligible individual, consistent with 
the unique strengths, resources, priorities, concerns, abili-
ties, capabilities, interests, and informed choice of the 
eligible individual, and, to the maximum extent appro-
priate, results in emplojrment in an integrated setting; 
"(B)(i) a description of the specific vocational rehabilita-
tion services that are— 
"(I) needed to achieve the employment outcome, 
including, as appropriate, the provision of assistive 
technology devices and assistive technology services, 
and personal assistance services, including training 
in the management of such services; and 
"(II) provided in the most integrated setting that 
is appropriate for the service involved and is consistent 
with the informed choice of the eligible individual; 
and 
"(ii) timelines for the achievement of the emplojnnent 
outcome and for the initiation of the services; 
"(C) a description of the entity chosen by the eligible 
individual or, as appropriate, the individual's representa-
tive, that will provide the vocational rehabilitation services, 
and the methods used to procure such services; 
"(D) a description of criteria to evaluate progress 
toward achievement of the employment outcome; 
"(E) the terms and conditions of the individualized 
plan for employment, including, as appropriate, information 
describing— 
"(i) the responsibilities of the designated State 
unit; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1143 
"(ii) the responsibilities of the eligible individual, 
including— 
"(I) the responsibilities the eligible individual 
will assume in relation to the employment outcome 
of the individual; 
"(II) if applicable, the participation of the 
eligible individual in paying for the costs of the 
plan; and 
"(III) the responsibility of the eligible individ-
ual with regard to applying for and securing com-
parable benefits as described in section 101(a)(8); 
and 
"(iii) the responsibilities of other entities as the 
result of arrangements made pursuant to comparable 
services or benefits requirements as described in sec-
tion 101(a)(8); 
"(F) for an eligible individual with the most significant 
disabilities for whom an employment outcome in a sup-
ported employment setting has been determined to be 
appropriate, information identifying— 
"(i) the extended services needed by the eligible 
individual; and 
"(ii) the source of extended services or, to the 
extent that the source of the extended services cannot 
be identified at the time of the development of the 
individualized plan for employment, a description of 
the basis for concluding that there is a reasonable 
expectation that such source will become available; 
and 
"(G) as determined to be necessary, a statement of 
projected need for post-employment services. 
"(c) PROCEDURES.— 
"(1) IN GENERAL.—^Each State shall ejtablish procedures 
for mediation of, and procedures for review through an impar-
tial due process hearing of, determinations made by personnel 
of the designated State unit that affect the provision of voca-
tional rehabilitation services to applicants or eligible individ-
uals. 
"(2) NOTIFICATION.— 
"(A) RIGHTS AND ASSiSTANCE.^The procedures shall 
provide that an applicant or an eligible individual or, as 
appropriate, the applicant's representative or individual's 
representative shall be notified of— 
"(i) the right to obtain review of determinations 
described in paragraph (1) in an impartial due process 
hearing under paragraph (5); 
"(ii) the right to pursue mediation with respect 
to the determinations under paragraph (4); and 
"(iii) the availability of assistance from the client 
assistance program under section 112. 
"(B) TIMING.—-Such notification shall be provided in 
writing— 
"(i) at the time an individugd applies for vocational 
rehabilitation services provided under this title; 
"(ii) at the time the individualized plan for employ-
ment for the individual is developed; and 
112 STAT. 1144 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(iii) upon reduction, suspension, or cessation of 
vocationEil rehabilitation services for the individual. 
"(3) 
EVIDENCE AND REPRESENTATION.—The procedures 
required under this subsection shall, at a minimum— 
"(A) provide an opportunity for an applicant or an 
eligible individual, or, as appropriate, the applicant's rep-
resentative or individual's representative, to submit at the 
mediation session or hearing evidence and information to 
support the position of the applicant or eligible individual; 
Eind 
"(B) include provisions to allow an applicant or an 
eligible individual to be represented in the mediation ses-
sion or hearing by a person selected by the applicant or 
eligible individual. 
"(4) MEDIATION.— 
"(A) PROCEDURES.—^Each State shall ensure that proce-
dures are established and implemented under this sub-
section to allow parties described in paragraph (1) to dis-
putes involving any determination described in paragraph 
(1) to resolve such disputes through a mediation process 
that, at a minimum, shall be available whenever a hearing 
is requested under this subsection. 
"(B) REQUIREMENTS.—Such procedures shall ensure 
that the mediation process— 
"(i) is voluntary on the part of the parties; 
"(ii) is not used to deny or delay the right of 
an individual to a hearing under this subsection, or 
to deny any other right afforded under this title; and 
"(iii) is conducted by a qualified and impartial 
mediator who is trained in effective mediation tech-
niques. 
"(C) LIST OF MEDIATORS.—^The State shall maintain 
a list of individuals who are qualified mediators and 
knowledgeable in laws (including regulations) relating to 
the provision of vocational rehabilitation services under 
this title, from which the mediators described in subpara-
graph (B) shall be selected. 
"(D) COST.—^The State shall bear the cost of the medi-
ation process. 
"(E) SCHEDULING.—Each session in the mediation proc-
ess shall be scheduled in a timely manner and shall be 
held in a location that is convenient to the parties to 
the dispute. 
"(F) AGREEMENT.—An agreement reached by the par-
ties to the dispute in the mediation process shall be set 
forth in a written mediation agreement. 
"(G) CONFIDENTIALITY.—^Discussions that occur during 
the mediation process shall be confidential and may not 
be used as evidence in any subsequent due process hearing 
or civil proceeding. The parties to the mediation process 
may be required to sign a confidentiality pledge prior to 
the commencement of such process. 
"(H) CONSTRUCTION.—^Nothing in this subsection shall 
be construed to preclude the parties to such a dispute 
from informally resolving the dispute prior to proceedings 
under this paragraph or paragraph (5), if the informal 
process used is not used to deny or delay the right of 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1145 
the applicant or eligible individual to a hearing under 
this subsection or to deny any other right afforded under 
this title. 
"(5) HEARINGS.— 
"(A) OFFICER.—A due process hearing described in 
paragraph (2) shall be conducted by an impartial hearing 
officer who shall issue a decision based on the provisions 
of the approved State plan, this Act (including regulations 
implementing this Act), and State regulations and policies 
that are consistent with the Federal requirements specified 
in this title. The officer shall provide the decision in writing 
to the applicant or eligible individual, or, as appropriate, 
the applicant's representative or individusd's representa-
tive, and to the designated State unit. 
"(B) LIST.—^The designated State unit shall maintain 
a list of qualified impartial hearing officers who are 
knowledgeable in laws (including regulations) relating to 
the provision of vocational rehabilitation services under 
this title from which the officer described in subparagraph 
(A) shall be selected. For the purposes of maintaining such 
list, impartial hearing officers shall be identified jointly 
by— 
"(i) the designated State unit; and 
"(ii) members of the Council or commission, as 
appropriate, described in section 101(a)(21). 
"(C) SELECTION.—Such an impartial hearing officer 
shall be selected to hear a particular case relating to a 
determination— 
"(i) on a random basis; or 
"(ii) by agreement between— 
"(I) the Director of the designated State unit 
and the individual with a disability; or 
"(II) in appropriate cases, the Director and 
the individual's representative. 
"(D) PROCEDURES FOR SEEKING REVIEW.—A State may 
establish procedures to enable a party involved in a hearing 
under this paragraph to seek an impartial review of the 
decision of the hearing officer under subparagraph (A) by— 
"(i) the chief official of the designated State agency 
if the State has established both a designated State 
agency and a designated State unit under section 
101(a)(2); or 
"(ii) an official from the office of the Governor. 
"(E) REVIEW REQUEST.—If the State establishes impar-
tial review procedures under subparagraph (D), either 
party may request the review of the decision of the hearing 
officer within 20 days after the decision. 
"(F) 
REVIEWING 
OFFICIAL.—The reviewing 
official 
described in subparagraph (D) shall— 
"(i) in conducting the review, provide an oppor-
tunity for the submission of additional evidence and 
information relevant to a final decision concerning the 
matter under review; 
"(ii) not overturn or modify the decision of the 
hearing officer, or part of the decision, that supports 
the position of the applicant or eligible individual 
unless the reviewing official concludes, based on cle£ir 
112 STAT. 1146 
PUBLIC LAW 105-220—AUG. 7, 1998 
Courts. 
Records. 
and convincing evidence, that the decision of the impar-
tial hearing officer is clearly erroneous on the basis 
of being contrary to the approved State plan, this Act 
(including regulations implementing this Act) or any 
State regulation or policy that is consistent with the 
Federal requirements specified in this title; and 
"(iii) make a final decision with respect to the 
matter in a timely manner and provide such decision 
in writing to the applicant or eligible individual, or, 
as appropriate, the applicant's representative or 
individual's representative, and to the designated State 
unit, including a full report of the findings and the 
grounds for such decision. 
"(G) FINALITY OF HEARING DECISION.—A decision made 
after a hearing under subparagraph (A) shall be final, 
except that a party may request an impartial review if 
the State has established procedures for such review under 
subparagraph (D) and a party involved in a hearing may 
bring a civil action under subparagraph (J). 
"(H) FINALITY OF REVIEW.—A decision made under 
subparagraph (F) shall be final unless such a party brings 
a civil action under subparagraph (J). 
"(I) IMPLEMENTATION.—^If a party brings a civil action 
under subparagraph (J) to challenge a final decision of 
a hearing officer under subparagraph (A) or to challenge 
a final decision of a State reviewing official under subpara-
graph (F), the final decision involved shall be implemented 
pending review by the court. 
"(J) CIVIL ACTION.— 
"(i) IN GENERAL.—Any party aggrieved by a final 
decision described in subparagraph (I), may bring a 
civil action for review of such decision. Tlie action 
may be brought in any State court of competent juris-
diction or in a district court of the United States of 
competent jurisdiction without regard to the amount 
in controversy. 
"(ii) PROCEDURE.—In any action brought under this 
subparagraph, the court— 
"(I) shall receive the records relating to the 
hearing under subparagraph (A) and the records 
relating to the State review under subparagraphs 
(D) through (F), if applicable; 
"(II) shall hear additional evidence at the 
request of a party to the action; and 
"(III) basing the decision of the court on the 
preponderance of the evidence, shall grant such 
relief as the court determines to be appropriate. 
"(6) HEARING BOARD.— 
"(A) IN GENERAL.—^A fair hearing board, established 
by a State before January 1, 1985, and authorized under 
State law to review determinations or decisions under this 
Act, is authorized to carry out the responsibilities of the 
impartial hearing officer under this subsection. 
"(B) APPLICATION.—^The provisions of paragraphs (1), 
(2), and (3) that relate to due process hearings do not 
apply, and paragraph (5) (other than subparagraph (J)) 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1147 
does not apply, to any State to which subparagraph (A) 
appUes. 
"(7) 
IMPACT 
ON PROVISION 
OF SERVICES.—Unless 
the 
individual with a disability so requests, or, in an appropriate 
case, the individual's representative, so requests, pending a 
decision by a mediator, hearing officer, or reviewing officer 
under this subsection, the designated State unit shall not 
institute a suspension, reduction, or termination of services 
being provided for the individual, including evaluation and 
assessment services and plan development, unless such services 
have been obtained through misrepresentation, fraud, collusion, 
or criminal conduct on the part of the individual, or the individ-
ual's representative. 
"(8) INFORMATION COLLECTION AND REPORT.— 
"(A) IN GENERAL.—^The Director of the designated State 
unit shall collect information described in subparagraph 
(B) and prepare and submit to the Commissioner a report 
containing such information. The Commissioner shall pre-
pare a summary of the information furnished under this 
paragraph and include the summary in the annual report 
submitted under section 13. The Commissioner shall also 
collect copies of the final decisions of impartial hearing 
officers conducting hearings under this subsection and 
State officials conducting reviews under this subsection. 
"(B) INFORMATION.—^The information required to be col-
lected under this subsection includes— 
"(i) a copy of the standards used by State reviewing 
officials for reviewing decisions made by impartial 
hearing officers under this subsection; 
"(ii) information on the number of hearings and 
reviews sought from the impartial hearing officers and 
the State reviewing officials, including the type of com-
plaints and the issues involved; 
"(iii) information 
on the number of hearing 
decisions made under this subsection that were not 
reviewed by the State reviewing officials; and 
"(iv) information on the number of the hearing 
decisions that were reviewed by the State reviewing 
officials, and, based on such reviews, the number of 
hearing decisions that were— 
"(I) sustained in favor of an applicant or 
eligible individual; 
"(II) sustained in favor of the designated State 
unit; 
"(III) reversed in whole or in part in favor 
of the applicant or eligible individual; and 
"(IV) reversed in whole or in part in favor 
of the designated State unit. 
"(C) CONFIDENTIALITY.—The confidentiality of records 
of applicants and eligible individuals maintained by the 
designated State unit shall not preclude the access of the 
Commissioner to those records for the purposes described 
in subparagraph (A). 
"(d) POLICIES AND PROCEDURES.—^Each designated State agency, 
in consultation with the State Rehabilitation Council, if the State 
has such a council, shall, consistent with section 100(a)(3)(C), 
develop and implement written policies and procedures that enable 
112 STAT. 1148 
PUBLIC LAW 105-220—AUG. 7, 1998 
each individual who is an applicant for or eligible to receive voca-
tional rehabilitation services under this title to exercise informed 
choice throughout the vocational rehabilitation process carried out 
under this title, including policies and procedures that require 
the designated State agency— 
"(1) to inform each such applicant and eligible individual 
(including students with disabilities who sire making the transi-
tion from programs under the responsibility of an educational 
agency to programs under the responsibility of the designated 
State unit), through appropriate modes of communication, about 
the availability of, and opportunities to exercise, informed 
choice, including the availability of support services for individ-
uals with cognitive or other disabilities who require assistance 
in exercising informed choice, throughout the vocational 
rehabilitation process; 
"(2) to assist applicants £ind eligible individuals in exercis-
ing informed choice in decisions related to the provision of 
assessment services under this title; 
"(3) to develop and implement flexible procurement policies 
and methods that facilitate the provision of services, and that 
afford eligible individuals meaningful choices among the meth-
ods used to procure services, under this title; 
"(4) to provide or assist eligible individuals in acquiring 
information that enables those individuals to exercise informed 
choice under this title in the selection of— 
"(A) the emplo3mtient outcome; 
"(B) the specific vocational rehabilitation services 
needed to achieve the employment outcome; 
"(C) the entity that will provide the services; 
"(D) the employment setting and the settings in which 
the services will be provided; and 
"(E) the methods available for procuring the services; 
and 
"(5) to ensure that the availability and scope of informed 
choice provided under this section is consistent with the obliga-
tions of the designated State agency under this title. 
29 use 723. 
"SEC. 103. VOCATIONAL REHABIUTATION SERVICES. 
"(a) VOCATIONAL REHABILITATION SERVICES FOR INDIVIDUALS.— 
Vocational rehabilitation services provided under this title are any 
services described in an individualized plan for employment nec-
essary to assist an individual with a disability in preparing for, 
securing, retaining, or regaining an employment outcome that is 
consistent with the strengths, resources, priorities, concerns, abili-
ties, capabilities, interests, and informed choice of the individual, 
including— 
"(1) an assessment for determining eligibility and voca-
tional rehabilitation needs by qualified personnel, including, 
if appropriate, an assessment by personnel skilled in rehabilita-
tion technology; 
"(2) counseling and guidance, including information and 
support services to assist an individual in exercising informed 
choice consistent with the provisions of section 102(d); 
"(3) referral and other services to secure needed services 
from other agencies through agreements developed under sec-
tion 101(a)(ll), if such services are not available under this 
title; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1149 
"(4) job-related services, including job search and placement 
assistance, job retention services, foUowup services, and follow-
along services; 
"(5) vocational and other training services, including the 
provision of personal and vocational adjustment services, books, 
tools, and other training materials, except that no training 
services provided at an institution of higher education shall 
be paid for with funds under this title unless maximum efforts 
have been made by the designated State unit and the individual 
to secure grant assistance, in whole or in part, from other 
sources to pay for such training; 
"(6) to the extent that financial support is not readily 
available from a source (such as through health insurance 
of the individual or through comparable services and benefits 
consistent with section 101(a)(8)(A)), other than the designated 
State unit, diagnosis and treatment of physical and mental 
impairments, including— 
"(A) corrective surgery or therapeutic treatment nec-
essary to correct or substantially modify a physical or men-
tal condition that constitutes a substantial impediment 
to emplo3anent, but is of such a nature that such correction 
or modification may reasonably be expected to eliminate 
or reduce such impediment to employment within a reason-
able length of time; 
"(B) necessary hospitalization in connection with sur-
gery or treatment; 
"(C) prosthetic and orthotic devices; 
"(D) eyeglasses and visual services as prescribed by 
qualified personnel who meet State licensure laws and 
who are selected by the individual; 
"(E) special services (including transplantation and 
dialysis), artificial kidneys, and supplies necessary for the 
treatment of individuals with end-stage renal disease; and 
"(F) diagnosis and treatment for mental and emotional 
disorders by qualified personnel who meet State licensure 
laws; 
"(7) maintenance for additional costs incurred while partici-
pating in an assessment for determining eligibility and voca-
tional rehabilitation needs or while receiving services under 
an individualized plan for employment; 
"(8) transportation, including adequate training in the use 
of public transportation vehicles and systems, that is provided 
in connection with the provision of any other service described 
in this section and needed by the individual to achieve an 
emplojonent outcome; 
"(9) on-the-job or other related personal assistance services 
provided while an individual is receiving other services 
described in this section; 
"(10) interpreter services provided by qualified personnel 
for individuals who are deaf or hard of hearing, and reader 
services for individuals who are determined to be blind, after 
an examination by qualified personnel who meet State licensure 
laws; 
"(11) rehabilitation teaching services, and orientation and 
mobility services, for individuals who are blind; 
"(12) occupational licenses, tools, equipment, and initial 
stocks and supplies; 
112 STAT. 1150 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(13) technical assistance and other consultation services 
to conduct market £inalyses, develop business plans, and other-
wise provide resources, to the extent such resources are author-
ized to be provided through the statewide workforce investment 
system, to eligible individuals who are pursuing self-employ-
ment or telecommuting or establishing a small business oper-
ation as an employment outcome; 
"(14) rehabilitation technology, including telecommuni-
cations, sensory, and other technological aids and devices; 
"(15) transition services for students with disabilities, that 
facilitate the achievement of the emplojonent outcome identified 
in the individualized plan for employment; 
"(16) supported employment services; 
"(17) services to the family of an individual with a disability 
necessary to assist the individual to achieve an employment 
outcome; and 
"(18) specific post-employment services necessary to assist 
an individual with a disability to, retain, regain, or advance 
in employment. 
"(b) 
VOCATIONAL REHABILITATION SERVICES FOR GROUPS OF 
INDIVIDUALS.—Vocational rehabilitation services provided for the 
benefit of groups of individuals with disabilities may also include 
the following: 
"(1) In the case of any type of small business operated 
by individuals with significant disabilities the operation of 
which can be improved by management services and super-
vision provided by the designated State agency, the provision 
of such services and supervision, along or together with the 
acquisition by the designated State agency of vending facilities 
or other equipment and initial stocks and supplies. 
"(2)(A) The establishment, development, or improvement 
of community rehabilitation programs, including, under special 
circumstances, the construction of a facility. Such programs 
shall be used to provide services that promote integration and 
competitive emplojonent. 
"(B) The provision of other services, that promise to contrib-
ute substantially to the rehabilitation of a group of individuals 
but that are not related directly to the individualized plan 
for employment of any 1 individual with a disability. 
"(3) The use of telecommunications systems (including tele-
phone, television, satellite, radio, and other similar systems) 
that have the potential for substantially improving delivery 
methods of activities described in this section and developing 
appropriate programming to meet the particular needs of 
individuals with disabilities. 
"(4)(A) Special services to provide nonvisual access to 
information for individuals who are blind, including the use 
of telecommunications, Braille, sound recordings, or other 
appropriate media. 
"(B) Captioned television, films, or video cassettes for 
individuals who are deaf or hard of hearing. 
"(C) Tactile materials for individuals who are deaf-blind. 
"(D) Other special services that provide 
information 
through tactile, vibratory, auditory, and visual media. 
"(5) Technical assistance and support services to businesses 
that are not subject to title I of the Americans with Disabilities 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1151 
Act of 1990 (42 U.S.C. 12111 et seq.) and that are seeking 
to employ individuals with disabilities. 
"(6) Consultative and technical assistance services to assist 
educational agencies in planning for the transition of students 
with disabilities from school to post-school activities, including 
employment. 
"SEC. 104. NON-FEDERAL SHARE FOR ESTABLISHMENT OF PROGRAM 
29 USC 724. 
OR CONSTRUCTION. 
"For the purpose of determining the amount of payments to 
States for carrying out part B (or to an Indian tribe under part 
C), the non-Federal share, subject to such limitations and conditions 
as may be prescribed in regulations by the Commissioner, shall 
include contributions of funds made by any private agency, 
organization, or individual to a State or local agency to assist 
in meeting the costs of establishment of a community rehabilitation 
program or construction, under special circumstances, of a facility 
for such a program, which would be regarded as State or local 
funds except for the condition, imposed by the contributor, limiting 
use of such funds to establishment of such a program or construction 
of such a facility. 
"SEC. 105. STATE REHABILITATION COUNCIL. 
29 USC 725. 
"(a) ESTABLISHMENT.— 
"(1) 
IN GENERAL.—Except 
as 
provided 
in 
section 
101(a)(21)(A)(i), to be eligible to receive financial assistance 
under this title a State shall establish a State Rehabilitation 
Council (referred to in this section as the 'Council') in accord-
ance with this section. 
"(2) SEPARATE AGENCY FOR INDIVIDUALS WHO ARE BLIND.— 
A State that designates a State agency to administer the part 
of the State plan under which vocational rehabilitation services 
are provided for individuals who are blind under section 
101(a)(2)(A)(i) may establish a separate Council in accordance 
with this section to perform the duties of such a Council with 
respect to such State agency. 
"(b) COMPOSITION AND APPOINTMENT.— 
"(1) COMPOSITION.— 
"(A) IN GENERAL.—^Except in the case of a separate 
Council established under subsection (a)(2), the Council 
shall be composed of— 
"(i) at least one representative of the Statewide 
Independent Living Council established under section 
705, which representative may be the chairperson or 
other designee of the Council; 
"(ii) at least one representative of a parent training 
and information center established pursuant to section 
682(a) of the Individuals with Disabilities Education 
Act (as added by section 101 of the Individuals with 
Disabilities Education Act Amendments of 1997; Public 
Law 105-17); 
"(iii) at least one representative of the client assist-
ance program established under section 112; 
"(iv) at least one qualified vocational rehabilitation 
counselor, with knowledge of and experience with voca-
tional rehabilitation programs, who shall serve as an 
ex officio, nonvoting member of the Council if the coun-
selor is an employee of the designated State agency; 
112 STAT. 1152 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(v) at least one representative of community 
rehabilitation program service providers; 
"(vi) four representatives of business, industry, and 
labor; 
"(vii) representatives of disability advocacy groups 
representing a cross section of— 
"(I) individuEils with physical, cognitive, sen-
sory, and mental disabilities; and 
"(H) individuals' representatives of individuals 
with disabilities who have difficulty in represent-
ing themselves or are unable due to their disabil-
ities to represent themselves; 
"(viii) current or former applicants for, or recipi-
ents of, vocational rehabilitation services; 
"(ix) in a State in which one or more projects 
are carried out under section 121, at least one rep-
resentative of the directors of the projects; 
"(x) at least one representative of the State edu-
cational agency responsible for the public education 
of students with disabilities who are eligible to receive 
services under this title and part B of the Individuals 
with Disabilities Education Act; and 
"(xi) at least one representative of the State 
workforce investment board. 
"(B) SEPARATE COUNCIL.—^In the case of a separate 
Council established under subsection (a)(2), the Council 
shsill be composed of— 
"(i) at least one representative described in 
subparagraph (A)(i); 
"(ii) at least one representative described in 
subparagraph (A)(ii); 
"(iii) at least one representative described in 
subparagraph (A)(iii); 
"(iv) at least one vocational rehabilitation coun-
selor described in subparagraph (A)(iv), who shall serve 
as described in such subparagraph; 
"(v) at least one representative described in 
subparagraph (A)(v); 
"(vi) four representatives described in subpara-
graph (A)(vi); 
"(vii) at least one representative of a disability 
advocacy group representing individuals who are blind; 
"(viii) at least one individual's representative, of 
an individual who— 
"(I) is an individual who is blind and has 
multiple disabilities; and 
"(II) has difficulty in representing himself or 
herself or is unable due to disabilities to represent 
himself or herself; 
"(ix) applicants or recipients described in subpara-
graph (A)(viii); 
"(x) in a State described in subparagraph (A)(ix), 
at least one representative described in such subpara-
graph; 
"(xi) at least one representative described in 
subparagraph (A)(x); and 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1153 
"(xii) at least one representative described in 
subparagraph (A)(xi). 
"(C) EXCEPTION.—In the case of a separate Council 
established under subsection (a)(2), any Council that is 
required by State law, as in effect on the date of enactment 
of the Rehabilitation Act Amendments of 1992, to have 
fewer than 15 members shall be deemed to be in compliance 
with subparagraph (B) if the Council— 
"(i) meets the requirements of subparagraph (B), 
other than the requirements of clauses (vi) and (ix) 
of such subparagraph; and 
"(ii) includes at least— 
"(I) one representative described in subpara-
graph (B)(vi); and 
"(II) one applicant or recipient described in 
subparagraph (B)(ix). 
"(2) Ex OFFICIO MEMBER.—The Director of the designated 
State unit shsdl be an ex officio, nonvoting member of the 
Council. 
"(3) APPOINTMENT.—^Members of the Council shall be 
appointed by the Governor. The Governor shall select members 
after 
soliciting recommendations 
from 
representatives of 
organizations representing a broad range of individuals with 
disabilities and organizations interested in individuals with 
disabilities. In selecting members, the Governor shall consider, 
to the greatest extent practicable, the extent to which minority 
populations are represented on the Council. 
"(4) QUALIFICATIONS.— 
"(A) IN GENERAL.—^A majority of Council members shall 
be persons who are— 
"(i) individuals with disabilities described in sec-
tion 7(20)(A); and 
"(ii) not employed by the designated State unit. 
"(B) SEPARATE COUNCIL.—^In the case of a separate 
Council established under subsection (a)(2), a majority of 
Council members shall be persons who are— 
"(i) blind; and 
"(ii) not employed by the designated State unit. 
"(5) CHAIRPERSON.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), the Council shall select a chairperson from among 
the membership of the Council. 
"(B) DESIGNATION BY GOVERNOR.—In States in which 
the chief executive officer does not have veto power pursu-
ant to State law, the Governor shall designate a member 
of the Council to serve as the chairperson of the Council 
or shall require the Council to so designate such a member. 
"(6) TERMS OF APPOINTMENT.— 
"(A) LENGTH OF TERM.—Each member of the Council 
shall serve for a term of not more than 3 years, except 
that— 
"(i) a member appointed to fill a vacancy occurring 
prior to the expiration of the term for which a prede-
cessor was appointed, shall be appointed for the 
remainder of such term; and 
"(ii) the terms of service of the members initially 
appointed shall be (as specified by the Grovemor) for 
112 STAT. 1154 
PUBLIC LAW 105-220—AUG. 7, 1998 
such fewer number of years as will provide for the 
expiration of terms on a staggered basis. 
"(B) NUMBER OF TERMS.—NO member of the Council, 
other than a representative described in clause (iii) or 
(ix) of paragraph (IXA), or clause (iii) or (x) of paragraph 
(1)(B), may serve more than two consecutive full terms. 
"(7) VACANCIES.— 
"(A) IN GENERAL.—^Except as provided in subparagraph 
(B), any vacancy occurring in the membership of the Coun-
cil shall be filled in the same manner as the original 
appointment. The vacancy shall not affect the power of 
the remaining members to execute the duties of the Coun-
cil. 
"(B) DELEGATION.—The Grovemor may delegate the 
authority to fill such a vacancy to the remaining members 
of the Council after making the original appointment. 
"(c) FUNCTIONS 
OF COUNCIL.—The Council shall, 
after 
consulting with the State workforce investment board— 
"(1) review, analyze, and advise the designated State unit 
regarding the performance of the responsibilities of the unit 
under this title, particularly responsibilities relating to— 
"(A) eligibility (including order of selection); 
"(B) the extent, scope, and effectiveness of services 
provided; and 
"(C) functions performed by State agencies that affect 
or that potentially sifTect the ability of individuals with 
disabilities in achieving employment outcomes under this 
title; 
"(2) in partnership with the designated State unit— 
"(A) develop, agree to, and review State goals and 
priorities in accordance with section 101(a)(15)(C); and 
"(B) evaluate the effectiveness of the vocational 
rehabilitation program and submit reports of progress to 
the Commissioner in accordance with section 101(a)(15XE); 
"(3) advise the designated State agency and the designated 
State unit regarding activities authorized to be carried out 
under this title, and assist in the preparation of the State 
plan and amendments to the plan, applications, reports, needs 
assessments, and evaluations required by this title; 
"(4) to the extent feasible, conduct a review and analysis 
of the effectiveness of, and consumer satisfaction with— 
"(A) the functions performed by the designated State 
agency; 
"(B) vocational rehabilitation services provided by State 
agencies and other public and private entities responsible 
for providing vocational rehabilitation services to individ-
uals with disabilities under this Act; and 
"(C) employment outcomes achieved by eligible individ-
uals receiving services under this title, including the avail-
ability of health and other employment benefits in connec-
tion with such employment outcomes; 
Reports. 
"(5) prepare and submit an annual report to the Governor 
and the Commissioner on the status of vocational rehabilitation 
programs operated within the State, and make the report avail-
able to the public; 
"(6) to avoid duplication of efforts and enhance the number 
of individuals served, coordinate activities with the activities 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1155 
of other councils within the State, including the Statewide 
Independent Living Council established under section 705, the 
advisory panel established under section 612(a)(21) of the 
Individugd with Disabilities Education Act (as amended by sec-
tion 101 of the Individuals with Disabilities Education Act 
Amendments of 1997; Public Law 105-17), the State Develop-
mental Disabilities Council described in section 124 of the 
Developmental Disabilities Assistance and Bill of Rights Act 
(42 U.S.C. 6024), the State mental hegJth planning council 
established under section 1914(a) of the Public Health Service 
Act (42 U.S.C. 300x-4(a)), and the State workforce investment 
board; 
"(7) provide for coordination and the establishment of work-
ing relationships between the designated State agency and 
the Statewide Independent Living Council and centers for 
independent living within the State; and 
"(8) perform such other functions, consistent with the pur-
pose of this title, as the State Rehabilitation Council determines 
to be appropriate, that are comparable to the other functions 
performed by the Council. 
"(d) RESOURCES.— 
"(1) PLAN.—^The Council shall prepare, in conjunction with 
the designated State unit, a plan for the provision of such 
resources, including such staff and other personnel, as may 
be necessary and sufficient to carry out the functions of the 
Council under this section. The resource plan shall, to the 
maximum extent possible, rely on the use of resources in exist-
ence during the period of implementation of the plan. 
"(2) RESOLUTION OF DISAGREEMENTS.—TO the extent that 
there is a disagreement between the Council and the designated 
State unit in regard to the resources necessary to carry out 
the functions of the Council as set forth in this section, the 
disagreement shall be resolved by the Grovemor consistent with 
paragraph (1). 
"(3) SUPERVISION AND EVALUATION.—Each Council shall, 
consistent with State law, supervise and evaluate such staff 
and other personnel as may be necessary to carry out its 
functions under this section. 
"(4) PERSONNEL CONFLICT OF INTEREST.—While assisting 
the Council in canying out its duties, staff and other personnel 
shall not be assigned duties by the designated State unit or 
any other agency or office of the State, that would create 
a conflict of interest. 
"(e) CONFLICT OF INTEREST.—^No member of the Council shall 
cast a vote on any matter that would provide direct 
financial 
benefit to the member or otherwise give the appearance of a conflict 
of interest under State law. 
"(f) MEETINGS.—The Council shall convene at least four meet-
ings a year in such places as it determines to be necessary to 
conduct Council business and conduct such forums or hearings 
as the Council considers appropriate. The meetings, hearings, and 
forums shall be publicly announced. The meetings shall be open 
and accessible to the general public unless there is a valid reason 
for an executive session. 
"(g) COMPENSATION AND EXPENSES.—The Council may use 
funds allocated to the Council by the designated State unit under 
this title (except for funds appropriated to carry out the client 
112 STAT. 1156 
PUBLIC LAW 105-220—AUG. 7, 1998 
29 use 726. 
Deadline. 
Publication. 
Effective date. 
Effective date. 
Federal Register, 
publications. 
Regulations. 
assistance program under section 112 and funds reserved pursuant 
to section 110(c) to carry out part C) to reimburse members of 
the Council for reasonable and necessary expenses of attending 
Council meetings and performing Council duties (including child 
care and personal assistance services), and to pay compensation 
to a member of the Council, if such member is not employed 
or must forfeit wages from other employment, for each day the 
member is engaged in performing the duties of the Council. 
"(h) HEARINGS AND FORUMS.—The Council is authorized to 
hold such hearings and forums as the Council may determine 
to be necessary to carry out the duties of the Council. 
"SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS. 
"(a) ESTABLISHMENT.— 
"(1) I N GENERAL.— 
"(A) ESTABLISHMENT OF STANDARDS AND INDICATORS.— 
The Commissioner shall, not later than July 1, 1999, estab-
lish and publish evaluation standards and performance 
indicators for the vocational rehabilitation program carried 
out under this title. 
"(B) REVIEW AND REVISION.—^Effective July 1, 1999, 
the Commissioner shall review and, if necessary, revise 
the evaluation standards and performance indicators every 
3 years. Any revisions of the standards and indicators 
shall be developed with input from State vocational 
rehabilitation agencies, related professional and consumer 
organizations, recipients of vocational rehabilitation serv-
ices, and other interested parties. Any revisions of the 
stEindards and indicators shall be subject to the publication, 
review, and comment provisions of paragraph (3). 
"(C) BASES.—^Effective July 1, 1999, to the maximum 
extent practicable, the standards and indicators shall be 
consistent with the core indicators of performance estab-
lished under section 136(b) of the Workforce Investment 
Act of 1998. 
"(2) MEASURES.—^The standards 
and indicators 
shall 
include outcome and related measures of program performance 
that facilitate the accomplishment of the purpose and policy 
of this title. 
"(3) COMMENT.—^The standards and indicators shall be 
developed with input from State vocational rehabilitation agen-
cies, related professional and consumer organizations, recipi-
ents of vocational rehabilitation services, and other interested 
parties. The Commissioner shall publish in the Federal Register 
a notice of intent to regulate regarding the development of 
proposed standards and indicators. Proposed standards and 
indicators shall be published in the Federal Register for review 
and comment. Final standards and indicators shall be published 
in the Federal Register. 
"(b) COMPLIANCE.— 
"(1) STATE REPORTS.—^In accordance with regulations estab-
lished by the Secretary, each State shall report to the Commis-
sioner after the end of each fiscal year the extent to which 
the State is in compliance with the standards and indicators. 
"(2) PROGRAM IMPROVEMENT.— 
"(A) PLAN.—^If the Commissioner determines that the 
performance of any State is below established standards, 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1157 
the Commissioner shall provide technical assist£ince to the 
State, and the State and the Commissioner shall jointly 
develop a program improvement plan outlining the specific 
actions to be taken by the State to improve program 
performance. 
"(B) REVIEW.—The Commissioner shall— 
"(i) review the program improvement efforts of 
the State on a biannual basis and, if necessary, request 
the State to make further revisions to the plan to 
improve performance; and 
"(ii) continue to conduct such reviews and request 
such revisions until the State sustains satisfactory 
performance over a period of more than 1 year. 
"(c) WITHHOLDING.—If the Commissioner determines that a 
State whose performance falls below the established standards has 
failed to enter into a program improvement plan, or is not complying 
substantially with the terms and conditions of such a program 
improvement plan, the Commissioner shall, consistent with sub-
sections (c) and (d) of section 107, reduce or make no further 
pa3anents to the State under this program, until the State has 
entered into an approved program improvement plan, or satisfies 
the Commissioner that the State is complying substantially with 
the terms and conditions of such a program improvement plan, 
as appropriate. 
"(d) REPORT TO CONGRESS.—Beginning in fiscal year 1999, the 
Effective date. 
Commissioner shall include in each Einnual report to the Congress 
under section 13 an analysis of program performance, including 
relative State performance, based on the standards and indicators. 
"SEC. 107. MONITORING AND REVIEW. 
29USC727. 
"(a) IN GENERAL.— 
"(1) DUTIES.—In canying out the duties of the Commis-
sioner under this title, the Commissioner shall— 
"(A) provide for the annual review and periodic onsite 
monitoring of programs under this title; and 
"(B) determine whether, in the administration of the 
State plan, a State is compljdng substantially with the 
provisions of such plan and with evaluation standards and 
performance indicators established under section 106. 
(2) PROCEDURES FOR REVIEWS.—In conducting reviews 
under this section the Commissioner shall consider, at a mini-
mum— 
"(A) State policies and procedures; 
"(B) guidance materials; 
"(C) decisions resulting from hearings conducted in 
accordance with due process; 
"(D) State goals established under section 101(a)(15) 
and the extent to which the State has achieved such goals; 
"(E) plans and reports prepared under section 106(b); 
"(F) consumer 
satisfaction 
reviews and 
analyses 
described in section 105(c)(4); 
"(G) information provided by the State Rehabilitation 
Council established under section 105, if the State has 
such a Council, or by the commission described in section 
101(aX21)(AXi), if the State has such a commission; 
"(H) reports; and 
"(I) budget and financial management data. 
112 STAT. 1158 
PUBLIC LAW 105-220—AUG. 7, 1998 
Notification. 
"(3) 
PROCEDURES 
FOR 
MONITORING.—In 
conducting 
monitoring under this section the Commissioner shall conduct— 
"(A) onsite visits, including onsite reviews of records 
to verify that the State is following requirements regarding 
the order of selection set forth in section 101(a)(5)(A); 
"(B) public hearings and other strategies for collecting 
information from the public; 
"(C) meetings with the State Rehabilitation Council, 
if the State has such a Council or with the commission 
described in section 101(a)(21)(A)(i), if the State has such 
a commission; 
"(D) reviews of individual case files, including individ-
ualized plans for employment and ineligibility determina-
tions; and 
"(E) meetings with qualified vocational rehabilitation 
counselors and other personnel. 
"(4) AREAS OF INQUIRY.—In conducting the review and 
monitoring, the Commissioner shall examine— 
"(A) the eligibility process; 
"(B) the provision of services, including, if applicable, 
the order of selection; 
"(C) such other areas as may be identified by the 
public or through meetings with the State Rehabilitation 
Council, if the State has such a Council or with the commis-
sion described in section 101(a)(21)(A)(i), if the State has 
such a commission; and 
"(D) such other areas of inquiry as the Commissioner 
may consider appropriate. 
"(5) REPORTS.—If the Commissioner issues a report detail-
ing the findings of an annual review or onsite monitoring 
conducted under this section, the report shall be made available 
to the State Rehabilitation Council, if the State has such a 
Council, for use in the development and modification of the 
State plan described in section 101. 
"(b) TECHNICAL ASSISTANCE.—^The Commissioner shall— 
"(1) provide technical assistance to programs under this 
title regarding improving the quality of vocational rehabilitation 
services provided; and 
"(2) provide technical assistance and establish a corrective 
action plan for a program under this title if the Commissioner 
finds that the program fails to comply substantially with the 
provisions of the State plan, or with evaluation standards or 
performance indicators established under section 106, in order 
to ensure that such failure is corrected as soon as practicable. 
"(c) FAILURE T O COMPLY WITH PLAN.— 
"(1) 
WITHHOLDING PAYMENTS.—Whenever the 
Commis-
sioner, after providing reasonable notice and an opportunity 
for a hearing to the State agency administering or supervising 
the administration of the State plan approved under section 
101, finds t h a l ^ 
"(A) the plan has been so changed that it no longer 
complies with the requirements of section 101(a); or 
"(B) in the administration of the plan there is a failure 
to comply substantially with any provision of such plan 
or with an evaluation standard or performance indicator 
established under section 106, 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1159 
the Commissioner shall notify such State agency that no further 
payments will be made to the State under this title (or, in 
the discretion of the Commissioner, that such further pa3anents 
will be reduced, in accordance with regulations the Commis-
sioner shall prescribe, or that further payments will not be 
made to the State only for the projects under the parts of 
the State plan affected by such failure), until the Commissioner 
is satisfied there is no longer any such failure. 
"(2) PERIOD.—^Until the Commissioner is so satisfied, the 
Commissioner shall make no further payments to such State 
under this title (or shall reduce payments or limit payments 
to projects under those parts of the State plan in which there 
is no such failure). 
"(3) DiSBURSAL OF WITHHELD FUNDS.—The Commissioner 
Regulations. 
may, in accordance with regulations the Secretary shall pre-
scribe, disburse any funds withheld from a State under para-
graph (1) to any public or nonprofit private organization or 
agency within such State or to any political subdivision of 
such State submitting a plan meeting the requirements of 
section 101(a). The Commissioner may not make any payment 
under this paragraph unless the entity to which such payment 
is made has provided assurances to the Commissioner that 
such entity will contribute, for purposes of carrying out such 
plan, the same amount as the State would have been obligated 
to contribute if the State received such payment. 
"(d) REVIEW.— 
Courts. 
"(1) PETITION.—Any State that is dissatisfied with a final 
determination of the Commissioner under section 101(b) or 
subsection (c) may file a petition for judicial review of such 
determination in the United States Court of Appeals for the 
circuit in which the State is located. Such a petition may 
be filed only within the 30-day period beginning on the date 
that notice of such final determination was received by the 
State. The clerk of the court shall transmit a copy of the 
petition to the Commissioner or to any officer designated by 
the Commissioner for that purpose. In accordance with section Records. 
2112 of title 28, United States Code, the Commissioner shall 
file with the court a record of the proceeding on which the 
Commissioner based the determination being appesded by the 
State. Until a record is so filed, the Commissioner may modify 
or set aside any determination made under such proceedings. 
"(2) SUBMISSIONS AND DETERMINATIONS.—If, in an action 
under this subsection to review a final determination of the 
Commissioner under section 101(b) or subsection (c), the peti-
tioner or the Commissioner applies to the court for leave to 
have additional oral submissions or written presentations made 
respecting such determination, the court may, for good cause 
shown, order the Commissioner to provide within 30 days an 
additiongd opportunity to make such submissions and presen-
tations. Within such period, the Commissioner may revise any 
findings of fact, modify or set aside the determination being 
reviewed, or make a new determination by reason of the addi-
tional submissions and presentations, and shall file such modi-
fied or new determination, and any revised findings of fact, 
with the return of such submissions and presentations. The 
court shall thereafter review such new or modified determina-
tion. 
112 STAT. 1160 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(3) STANDARDS OF REVIEW.— 
"(A) IN GENERAL.—^Upon the filing of a petition under 
paragraph (1) for judicial review of a determination, the 
court shall have jurisdiction— 
"(i) to grant appropriate relief as provided in chap-
ter 7 of title 5, United States Code, except for interim 
relief with respect to a determination under subsection 
(c); and 
"(ii) except as otherwise provided in subparagraph 
(B), to review such determination in accordance with 
chapter 7 of title 5, United States Code. 
"(B) SUBSTANTIAL EVIDENCE.—Section 706 of title 5, 
United States Code, shall apply to the review of any deter-
mination under this subsection, except that the standard 
for review prescribed by paragraph (2)(E) of such section 
706 shsdl not apply and the court shall hold unlawful 
and set aside such determination if the court finds that 
the determination is not supported by substantial evidence 
in the record of the proceeding submitted pursuant to para-
graph (1), as supplemented by £iny additional submissions 
and presentations filed under paragraph (2). 
29 use 728. 
"SEC. 108. EXPENDITURE OF CERTAIN AMOUNTS. 
"(a) EXPENDITURE.—^Amounts described in subsection (b) may 
not be expended by a State for any purpose other than carrying 
out programs for which the State receives nnancial assistance under 
this title, under part B of title VI, or under title VII. 
"(b) AMOUNTS.—^The amounts referred to in subsection (a) are 
amounts provided to a State under the Social Security Act (42 
U.S.C. 301 et seq.) as reimbursement for the expenditure of pay-
ments received by the State from £dlotments under section 110 
of this Act. 
29 use 728a 
"SEC. 109. TRAINING OF EMPLOYERS WITH RESPECT TO AMERICANS 
WITH DISABILITIES ACT OF 1990. 
"A State may expend payments received under section 111— 
"(1) to carry out a program to train employers with respect 
to compliance with the requirements of title I of the Americans 
with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.); and 
"(2) to inform employers of the existence of the program 
and the availability of the services of the program. 
"PART B—BASIC VOCATIONAL REHABILITATION SERVICES 
29 use 730. 
"SEC. 110. STATE ALLOTMENTS. 
"(a)(1) Subject to the provisions of subsection (c), for each fiscal 
year beginning before October 1, 1978, each State shall be entitled 
to an allotment of an amount bearing the same ratio to the amount 
authorized to be appropriated under section 100(b)(1) for allotment 
under this section as the product of— 
"(A) the population of the State; and 
"(B) the square of its allotment percentage, 
bears to the sum of the corresponding products for all the States. 
"(2)(A) For each fiscal year beginning on or after October 1, 
1978, each State shall be entitled to an allotment in an amount 
equal to the amount such State received under paragraph (1) for 
the fiscal year ending September 30, 1978, and an additional 
amount determined pursuant to subparagraph (B) of this paragraph. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1161 
"(B) For each fiscal year beginning on or after October 1, 
1978, each State shall be entitled to an allotment, from any amount 
authorized to be appropriated for such fiscal year under section 
100(b)(1) for allotment under this section in excess of the amount 
appropriated under section 100(b)(1)(A) for the fiscal year ending 
September 30, 1978, in an amount equal to the sum of— 
"(i) an amount bearing the same ratio to 50 percent of 
such excess amount as the product of the population of the 
State and the square of its allotment percentage bears to the 
sum of the corresponding products for all the States; and 
"(ii) an amount bearing the same ratio to 50 percent of 
such excess amount as the product of the population of the 
State and its allotment percentage bears to the sum of the 
corresponding products for all the States. 
"(3) The sum of the payment to any State (other than Guam, 
American Samoa, the Virgin Islands, and the Commonwealth of 
the Northern Mariana Islands) under this subsection for any fiscal 
year which is less than Vz of 1 percent of the amount appropriated 
under section 100(b)(1), or $3,000,000, whichever is greater, shall 
be increased to that amount, the total of the increases thereby 
required being derived by proportionately reducing the allotment 
to each of the remaining such States under this subsection, but 
with such adjustments as may be necessary to prevent the sum 
of the allotments made under this subsection to any such remaining 
State from being thereby reduced to less than that amount. 
"(b)(1) Not later than 45 days prior to the end of the fiscal Deadlines, 
year, the Commissioner shall determine, after reasonable oppor-
tunity for the submission to the Commissioner of comments by 
the State agency administering or supervising the program estab-
lished under this title, that any payment of an allotment to a 
State under section 111(a) for any fiscal year will not be utilized 
by such State in carrying out the purposes of this title. 
"(2) As soon as practicable but not later than the end of the 
fiscal year, the Commissioner shall make such amount available 
for carrying out the purposes of this title to one or more other 
States to the extent the Commissioner determines such other State 
will be able to use such additional amount during that fiscal year 
or the subsequent fiscal year for carrying out such purposes. The 
Commissioner shall make such amount available only if such other 
State will be able to make sufficient payments from non-Federal 
sources to pay for the non-Federal share of the cost of vocational 
rehabilitation services under the State plan for the fiscal year 
for which the amount was appropriated. 
"(3) For the purposes of this part, any amount made available 
to a State for any fiscal year pursuant to this subsection shall 
be regarded as an increase of such State's allotment (as determined 
under the preceding provisions of this section) for such year. 
"(c)(1) For fiscal year 1987 and for each subsequent fiscal year, 
the Commissioner shall reserve from the amount appropriated 
under section 100(b)(1) for allotment under this section a sum, 
determined under paragraph (2), to carry out the purposes of part 
C. 
"(2) The sum referred to in paragraph (1) shall be, as deter-
mined by the Secretary— 
"(A) not less than three-quarters of 1 percent and not 
more than 1.5 percent of the amount referred to in paragraph 
(1), for fiscal year 1999; and 
112 STAT. 1162 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(B) not less than 1 percent and not more than 1.5 percent 
of the amount referred to in paragraph (1), for each of fiscal 
years 2000 through 2003. 
29 use 731. 
"SEC. 111. PAYMENTS TO STATES. 
"(a)(1) Except as provided in paragraph (2), from each State's 
allotment under this part for any fiscal year, the Commissioner 
shall pay to a State an amount equal to the Federal share of 
the cost of vocational rehabilitation services under the plan for 
that State approved under section 101, including expenditures for 
the administration of the State plan. 
"(2)(A) The total of payments under paragraph (1) to a State 
for a fiscal year may not exceed its allotment under subsection 
(a) of section 110 for such year. 
"(B) For fiscal year 1994 and each fiscal year thereafter, the 
amount otherwise payable to a State for a fiscal year under this 
section shall be reduced by the amount by which expenditures 
from non-Federal sources under the State plan under this title 
for the previous fiscal year are less than the total of such expendi-
tures for the second fiscal year preceding the previous fiscal year. 
"(C) The Commissioner may waive or modify any requirement 
or limitation under subparagraph (B) or section 101(a)(17) if the 
Commissioner determines that a waiver or modification is an equi-
table response to exceptional or uncontrollable circumstances affect-
ing the State. 
"(3)(A) Except as provided in subparagraph (B), the amount 
of a pa3rment under this section with respect to any construction 
project in any State shall be equal to the same percentage of 
the cost of such project as the Federal share that is applicable 
in the case of rehabilitation facilities (as defined in section 645(g) 
of the Public Health Service Act (42 U.S.C. 291o(a))), in such 
State. 
"(B) If the Federal share with respect to rehabilitation facilities 
in such State is determined pursuant to section 645(b)(2) of such 
Act (42 U.S.C. 291o(b)(2)), the percentage of the cost for purposes 
of this section shall be determined in accordance with regulations 
prescribed by the Commissioner designed to achieve as nearly as 
practicable results comparable to the results obtained under such 
section. 
"(b) The method of computing and paying amounts pursuant 
to subsection (a) shall be as follows: 
"(1) The Commissioner shall, prior to the beginning of 
each calendar quarter or other period prescribed by the 
Commissioner, estimate the amount to be paid to each State 
under the provisions of such subsection for such period, such 
estimate to be based on such records of the State and informa-
tion furnished by it, and such other investigation as the 
Commissioner may find necessary. 
"(2) The Commissioner shall pay, from the allotment avail-
able therefor, the amount so estimated by the Commissioner 
for such period, reduced or increased, as the case may be, 
by any sum (not previously adjusted under this paragraph) 
by which the Commissioner finds that the estimate of the 
amount to be paid the State for any prior period under such 
subsection was greater or less than the amount which should 
have been paid to the State for such prior period under such 
subsection. Such payment shall be made prior to audit or 
PUBLIC LAW 106-220—AUG. 7, 1998 
112 STAT. 1163 
settlement by the Greneral Accounting Office, shall be made 
through the disbursing facilities of the Treasury Department, 
and shall be made in such installments as the Commissioner 
may determine. 
"SEC. 112. CLIENT ASSISTANCE PROGRAM. 
29USC732. 
"(a) From funds appropriated under subsection (h), the Sec- Grants, 
retary shall, in accordance with this section, make grants to States 
to establish and carry out client assistance programs to provide 
assistance in informing and advising all clients and client applicants 
of all available benefits under this Act, and, upon request of such 
clients or client applicants, to assist and advocate for such clients 
or applicants in their relationships with projects, programs, and 
services provided under this Act, including assistance and advocacy 
in pursuing legal, administrative, or other appropriate remedies 
to ensure the protection of the rights of such individuals under 
this Act and to facilitate access to the services funded under this 
Act through individual and systemic advocacy. The client assistance 
program shall provide information on the available services and 
benefits under this Act and title I of the Americans with Disabilities 
Act of 1990 (42 U.S.C. 12111 et seq.) to individuals with disabilities 
in the State, especisJly with regard to individuals with disabilities 
who have traditionally been unserved or underserved by vocational 
rehabilitation programs. In providing assistance and advocacy under 
this subsection with respect to services under this title, a client 
assistance program may provide the assistance and advocacy with 
respect to services that are directly related to facilitating the 
employment of the individual. 
"(b) No State may receive payments from its allotment under 
this Act in any fiscal year unless the State has in effect not 
later than October 1, 1984, a client assistance program which— 
"(1) has the authority to pursue leggJ, administrative, and 
other appropriate remedies to ensure the protection of rights 
of individuals with disabilities who are receiving treatments, 
services, or rehabilitation under this Act within the State; 
and 
"(2) meets the requirements of designation under sub-
section (c). 
"(c)(1)(A) The Governor shall designate a public or private 
agency to conduct the client assistance program under this section. 
Except as provided in the last sentence of this subparagraph, the 
Governor shall designate an agency which is independent of any 
agency which provides treatment, services, or rehabilitation to 
individuals under this Act. If there is an agency in the State 
which has, or had, prior to the date of enactment of the Rehabilita-
tion Amendments of 1984, served as a client assistance agency 
under this section and which received Federal financial assistance 
under this Act, the Governor may, in the initial designation, des-
ignate an agency which provides treatment, services, or rehabilita-
tion to individuals with disabilities under this Act. 
"(B)(i) The Grovemor may not redesignate the agency designated 
under subparagraph (A) without good cause and unless— 
"(I) the Governor has given the agency 30 days notice 
of the intention to make such redesignation, including specifica-
tion of the good cause for such redesignation and an opportunity 
to respond to the assertion that good cause has been shown; 
112 STAT. 1164 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(11) individuals with disabilities or the individuals' rep-
resentatives have timely notice of the redesignation and oppor-
tunity for public comment; and 
"(III) the agency has the opportunity to appeal to the 
Commissioner on the basis that the redesignation was not 
for good cause. 
"(ii) If, after the date of enactment of the Rehabilitation Act 
Amendments of 1998— 
"(I) a designated State agency undergoes any change in 
the organizational structure of the agency that results in the 
creation of one or more new State agencies or departments 
or results in the merger of the designated State agency with 
one or more other State agencies or departments; and 
"(II) an agency (including an office or other unit) within 
the designated State agency was conducting a client assistance 
program before the change under the last sentence of subpara-
graph (A), 
the Grovemor shsill redesignate the agency conducting the program. 
In conducting the redesignation, the Grovernor shall designate to 
conduct the program an agency that is independent of 8iny agency 
that provides treatment, services, or rehabilitation to individuals 
with disabilities under this Act. 
"(2) In carrying out the provisions of this section, the GrOvemor 
shall consult with the director of the State vocational rehabilitation 
agency, the head of the developmental disability protection and 
advocacy agency, and with representatives of professional and con-
sumer organizations serving individu£ds with disabilities in the 
State. 
"(3) The agency designated under this subsection shall be 
accountable for the proper use of funds made available to the 
agency. 
"(d) The agency designated under subsection (c) of this section 
may not bring any class action in canying out its responsibilities 
under this section. 
"(e)(1)(A) The Secretary shall allot the sums appropriated for 
each fiscal year under this section among the States on the basis 
of relative population of each State, except that no State shall 
receive less than $50,000. 
"(B) The Secretary shall allot $30,000 each to American Samoa, 
Guam, the Virgin Islands, and the Commonwealth of the Northern 
Mariana Islands. 
"(C) For the purpose of this paragraph, the term 'State' does 
not include American Samoa, Guam, the Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands. 
"(D)(i) In any fiscal year that the funds appropriated for such 
fiscal year exceed $7,500,000, the minimum allotment shall be 
$100,000 for States and $45,000 for territories. 
"(ii) For any fiscal year in which the total amount appropriated 
under subsection (h) exceeds the total amount appropriated under 
such subsection for the preceding fiscal year, the Secretary shall 
increase each of the minimum allotments under clause (i) by a 
percentage that shall not exceed the percentage increase in the 
total amount appropriated under such subsection between the 
preceding fiscal year and the fiscal year involved. 
"(2) The amount of an allotment to a State for a fiscal year 
which the Secretary determines will not be required by the State 
during the period for which it is available for the purpose for 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1165 
which allotted shall be available for reallotment by the Secretary 
at appropriate times to other States with respect to which such 
a determination has not been made, in proportion to the original 
allotments of such States for such fiscal year, but with such propor-
tionate amount for any of such other States being reduced to the 
extent it exceeds the sum the Secretary estimates such State needs 
and will be able to use during such period, and the total of such 
reduction shall be similarly reallotted among the States whose 
proportionate amounts were not so reduced. Any such amount so 
reallotted to a State for a fiscal year shall be deemed to be a 
part of its allotment for such fiscal year. 
"(3) Except as specifically prohibited by or as otherwise provided 
in State law, the Secretary shall pay to the agency designated 
under subsection (c) the amount specified in the application 
approved under subsection (f). 
"(f) No grant may be made under this section unless the State 
submits an application to the Secretary at such time, in such 
manner, and containing or accompanied by such information as 
the Secretary deems necessary to meet the requirements of this 
section. 
"(g) The Secretary shall prescribe regulations applicable to the Regulations 
client assistance program which shall include the following require-
ments: 
"(1) No employees of such programs shall, while so 
employed, serve as stafi" or consultants of any rehabilitation 
project, program, or facility receiving assistance under this 
Act in the State. 
"(2) Each progTEim shall be afibrded reasonable access to 
policymaking and administrative personnel in the State and 
local rehabilitation programs, projects, or facilities. 
"(3)(A) Each program shall contain provisions designed to 
assure that to the maximum extent possible alternative means 
of dispute resolution are available for use at the discretion 
of an applicant or client of the progrsim prior to resorting 
to litigation or formal adjudication to resolve a dispute arising 
under this section. 
"(B) In subparagraph (A), the term 'alternative means of 
dispute resolution' means any procedure, including good faith 
negotiation, conciliation, facilitation, mediation, factfinding, and 
arbitration, and any combination of procedures, that is used 
in lieu of litigation in a court or formal adjudication in an 
administrative forum, to resolve a dispute arising under this 
section. 
"(4) For purposes of any periodic audit, report, or evaluation 
of the performance of a client assistance program under this 
section, the Secretary shall not require such a program to 
disclose the identity of, or any other personally identifiable 
information related to, any individual requesting assistance 
under such program. 
"(h) There are authorized to be appropriated such sums as 
may be necessary for fiscal years 1999 through 2003 to carry 
out the provisions of this section. 
Appropriation 
authorization. 
112 STAT. 1166 
PUBLIC LAW 105-220—AUG. 7, 1998 
"PART C—AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES 
29 USE 741. 
"SEC. 121. VOCATIONAL REHABIUTATION SERVICES GRANTS. 
"(a) The Commissioner, in accordance with the provisions of 
this part, may make grants to the governing bodies of Indian 
tribes located on Federal and State reservations (and consortia 
of such governing bodies) to pay 90 percent of the costs of vocational 
rehabilitation services for American Indians who are individuals 
with disabilities residing on or near such reservations. The non-
Federal share of such costs may be in cash or in kind, fairly 
valued, and the Commissioner may waive such non-Federal share 
requirement in order to carry out the purposes of this Act. 
"(b)(1) No grant may be made under this part for any fiscal 
year unless an application therefor has been submitted to and 
approved by the Commissioner. The Commissioner may not approve 
an application unless the application— 
"(A) is made at such time, in such manner, and contains 
such information as the Commissioner may require; 
"(B) contains assurances that the rehabilitation services 
provided under this part to American Indians who are individ-
uals with disabilities residing on or near a reservation in a 
State shall be, to the maximum extent feasible, comparable 
to rehabilitation services provided under this title to other 
individuals with disabilities residing in the State and that, 
where appropriate, may include services traditionally used by 
Indian tribes; and 
"(C) contains assurances that the application was developed 
in consultation with the designated State unit of the State. 
"(2) The provisions of sections 5, 6, 7, and 102(a) of the Indian 
Self-Determination and Education Assistance Act shall be applicable 
to any application submitted under this part. For purposes of this 
paragraph, any reference in any such provision to the Secretary 
of Education or to the Secretary of the Interior shall be considered 
to be a reference to the Commissioner. 
"(3) Any application approved under this part shall be effective 
for not more than 60 months, except as determined otherwise 
by the Commissioner pursuant to prescribed regulations. The State 
shall continue to provide vocational rehabilitation services under 
its State plan to American Indians residing on or near a reservation 
whenever such State includes any such American Indians in its 
State population under section 110(a)(1). 
"(4) In making grants under this part, the Secretary shall 
give priority consideration to applications for the continuation of 
programs which have been funded under this part. 
"(5) Nothing in this section may be construed to authorize 
a separate service delivery system for Indian residents of a State 
who reside in non-reservation areas. 
"(c) The term 'reservation' includes Indian reservations, public 
domain Indian allotments, former Indian reservations in Oklahoma, 
and land held by incorporated Native groups, regional corporations, 
and village corporations under the provisions of the Alaska Native 
Claims Settlement Act. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1167 
"PART D—VOCATIONAL REHABILITATION SERVICES CLIENT 
INFORMATION 
"SEC. 131. DATA SHARING. 
29USC75L 
"(a) IN GENERAL.— 
"(1) MEMORANDUM OF UNDERSTANDING.—The Secretary of 
Education and the Secretary of Health and Human Services 
shall enter into a memorandum of understanding for the pur-
poses of exchanging data of mutual importance— 
"(A) that concern clients of designated State agencies; 
and 
"(B) that are data maintained either by— 
"(i) the Rehabilitation Services Administration, as 
required by section 13; or 
"(ii) the Social Security Administration, from its 
Summary Esimings and Records and Master Bene-
ficiary Records. 
"(2) EMPLOYMENT STATISTICS.—The Secretary of Labor shall 
provide the Commissioner with emplo5rment statistics specified 
in section 15 of the Wagner-Peyser Act, that facilitate evalua-
tion by the Commissioner of the program carried out under 
part B, and allow the Commissioner to compare the progress 
of individu£Js with disabilities who are assisted under the 
program in securing, retaining, regaining, and advancing in 
employment with the progress made by individuals who are 
assisted under title I ojp the Workforce Investment Act of 1998. 
"(b) 
TREATMENT 
OF 
INFORMATION.—For purposes of the 
exchange described in subsection (a)(1), the data described in sub-
section (aXl)(B)(ii) shall not be considered return information (as 
defined in section 6103(b)(2) of the Internal Revenue Code of 1986) 
and, as appropriate, the confidentiality of all client information 
shall be maintained by the Rehabilitation Services Administration 
and the Social Security Administration.". 
SEC. 405. RESEARCH AND TRAINING. 
Title II of the Rehabilitation Act of 1973 (29 U.S.C. 760 et 
seq.), is amended to read as follows: 
"TITLE II—RESEARCH AND TRAINING 
"DECLARATION OF PURPOSE 
"SEC. 200. The purpose of this title is to— 
29 USC 760. 
"(1) provide for research, demonstration projects, training, 
and related activities to maximize the full inclusion and integra-
tion into society, emplojmient, independent living, family sup-
port, and economic and social self-sufficiency of individuals 
with disabilities of all ages, with particular emphasis on improv-
ing the effectiveness of services authorized under this Act; 
"(2) provide for a comprehensive and coordinated approach 
to the support and conduct of such research, demonstration 
projects, training, and related activities £ind to ensure that 
the approach is in accordance with the 5-year plan developed 
under section 202(h); 
"(3) promote the transfer of rehabilitation technology to 
individuals with disabilities through research and demonstra-
tion projects relating to— 
112 STAT. 1168 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(A) the procurement process for the purchase of 
rehabilitation technology; 
"(B) the utilization of rehabilitation technology on a 
national basis; 
"(C) specific adaptations or customizations of products 
to enable individuals with disabilities to live more 
independently; and 
"(D) the development or transfer of assistive tech-
nology; 
"(4) ensure the widespread distribution, in usable formats, 
of practical scientific and technological information— 
"(A) generated by research, demonstration projects, 
training, and related activities; and 
"(B) regarding state-of-the-art practices, improvements 
in the services authorized under this Act, rehabilitation 
technology, and new knowledge regarding disabilities, 
to rehabilitation professionals, individuals with disabilities, and 
other interested parties, including the general public; 
"(5) identify effective strategies that enhance the opportuni-
ties of individuals with disabilities to engage in employment, 
including employment 
involving telecommuting 
and self-
employment; and 
"(6) increase opportunities for researchers who are mem-
bers 
of traditionally 
underserved 
populations, 
including 
researchers who are members of minority groups and research-
ers who are individuals with disabilities. 
"AUTHORIZATION OF APPROPRIATIONS 
29 use 761. 
"SEC. 201. (a) There are authorized to be appropriated— 
"(1) for the purpose of providing for the expenses of the 
National Institute on Disability and Rehabilitation Research 
under section 202, which shall include the expenses of the 
Rehabilitation Research Advisory Council under section 205, 
and shall not include the expenses of such Institute to carry 
out section 204, such sums as may be necessary for each of 
fiscal years 1999 through 2003; and 
"(2) to carry out section 204, such sums as may be necessary 
for each of fiscal years 1999 through 2003. 
"(b) Funds appropriated under this title shall remain available 
until expended. 
"NATIONAL INSTITUTE ON DISABILITY AND REHABILITATION RESEARCH 
Establishment. 
"SEC. 202. (a)(1) There is established within the Department 
29 use 762. 
of Education a National Institute on Disability and Rehabilitation 
Research (hereinafter in this title referred to as the 'Institute'), 
which shall be headed by a Director (hereinafter in this title referred 
to as the 'Director'), in order to— 
"(A) promote, coordinate, and provide for— 
"(i) research; 
"(ii) demonstration pi-qjects and training; and 
"(iii) related activities, 
with respect to individuals with disabilities; 
"(B) more effectively carry out activities through the pro-
grams under section 204 and activities under this section; 
"(C) widely disseminate information from the activities 
described in subparagraphs (A) and (B); and 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1169 
"(D) provide leadership in advancing the quality of life 
of individuals with disabilities. 
"(2) In the performance of the functions of the office, the Direc-
tor shall be directly responsible to the Secretary or to the same 
Under Secretary or Assistant Secretary of the Department of Edu-
cation to whom the Commissioner is responsible under section 
3(a). 
"(b) The Director, through the Institute, shall be responsible 
for— 
"(1) administering the programs described in section 204 
and activities under this section; 
"(2) widely disseminating findings, conclusions, and rec-
ommendations, resulting from research, demonstration projects, 
training, and related activities (referred to in this title as 
'covered activities') funded by the Institute, to— 
"(A) other Federal, State, tribal, and local public agen-
cies; 
"(B) private organizations engaged in research relating 
to rehabilitation or providing rehabilitation services; 
"(C) rehabilitation practitioners; and 
"(D) individuals with disabilities and the individuals' 
representatives; 
"(3) coordinating, through the Interagency Committee 
established by section 203 of this Act, all Federal programs 
and policies relating to research in rehabilitation; 
"(4) widely disseminating 
educational 
materials 
and 
research results, concerning ways to maximize the full inclusion 
and integration into society, employment, independent living, 
family support, and economic and social self-sufficiency of 
individuals with disabilities, to— 
"(A) public and private entities, including— 
"(i) elementary and secondary schools (as defined 
in section 14101 of the Elementary and Secondary 
Education Act of 1965; and 
"(ii) institutions of higher education; 
"(B) rehabilitation practitioners; 
"(C) individuals with disabilities (especially such 
individuals who are members of minority groups or of 
populations that are unserved or underserved by programs 
under this Act); and 
"(D) the individuals' representatives for the individuals 
described in subparagraph (C); 
"(5)(A) conducting an education program to inform the pub-
lic about ways of providing for the rehabilitation of individuals 
with disabilities, including information relating to— 
"(i) family care; 
"(ii) self-care; and 
"(iii) assistive technology devices and assistive tech-
nology services; and 
"(B) as part of the program, disseminating engineering 
information about assistive technology devices; 
"(6) conducting conferences, seminars, and workshops 
(including in-service training programs and programs for 
individuals with disabilities) concerning advances in rehabilita-
tion research and rehabilitation technology (including advances 
concerning the selection and use of assistive technology devices 
and assistive technology services), pertinent to the full inclusion 
112 STAT. 1170 
PUBLIC LAW 105-220—AUG. 7, 1998 
and integration into society, employment, independent living, 
family support, and economic and social self-sufficiency of 
individuals with disabilities; 
"(7) taking whatever action is necessary to keep the Con-
gress fully and currently informed with respect to the 
implementation and conduct of programs and activities carried 
out under this title, including dissemination activities; 
"(8) producing, in conjunction with the Department of 
Labor, the National Center for Health Statistics, the Bureau 
of the Census, the Health Care Financing Administration, the 
Social Security Administration, the Bureau of Indian Affairs, 
the Indian Health Service, and other Federal departments and 
agencies, as may be appropriate, statistical reports and studies 
on the employment, self-emplo3nnent, telecommuting, health, 
income, and other demographic characteristics of individuals 
with disabilities, including information on individuals with 
disabilities who live in rural or inner-city settings, with particu-
lar attention given to underserved populations, and widely 
disseminating such reports and studies to rehabilitation profes-
sionals, individuals with disabilities, the individuals' represent-
atives, and others to assist in the planning, assessment, and 
evaluation of vocational and other rehabilitation services for 
individuals with disabilities; 
"(9) conducting research on consumer satisfaction with 
vocational rehabilitation services for the purpose of identifying 
effective rehabilitation programs and policies that promote the 
independence of individuals with disabilities and achievement 
of long-term vocational goals; 
"(10) conducting research to examine the relationship 
between the provision of specific services and successful, sus-
tained emplojrment outcomes, including employment outcomes 
involving self-employment and telecommuting; and 
"(11) coordinating activities with the Attorney General 
regarding the provision of information, training, or technical 
assistance regarding the Americans with Disabilities Act of 
1990 (42 U.S.C. 12101 et seq.) to ensure consistency with the 
plan for technical assistance required under section 506 of 
such Act (42 U.S.C. 12206). 
"(c)(1) The Director, acting through the Institute or one or 
more entities funded by the Institute, shall provide for the develop-
ment and dissemination of models to address consumer-driven 
information needs related to assistive technology devices and assist-
ive technology services. 
"(2) The development and dissemination of models may 
include— 
"(A) convening groups of individuals with disabilities, fam-
ily members and advocates of such individuals, commercial 
producers of assistive technology, and entities funded by the 
Institute to develop, assess, and disseminate knowledge about 
information needs related to assistive technology; 
"(B) identifying the t3rpes of information regarding assistive 
technology devices and assistive technology services that 
individuals with disabilities find especially useful; 
"(C) evgJuating current models, and developing new models, 
for transmitting the information described in subparagraph 
(B) to consumers and to commercial producers of assistive tech-
nology; and 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1171 
"(D) disseminating through one or more entities funded 
by the Institute, the models described in subparagraph (C) 
and findings regarding the information described in subpara-
graph (B) to consumers and commercial producers of assistive 
technology. 
"(d)(1) The Director of the Institute shall be appointed by 
the Secretary. The Director shall be an individual with substantial 
experience in rehabilitation and in research administration. 
"(2) The Director, subject to the approval of the President, 
may appoint, for terms not to exceed three years, without regard 
to the provisions of title 5, United States Code, governing appoint-
ment in the competitive service, and may compensate, without 
regard to the provisions of chapter 51 and subchapter III of chapter 
53 of such title relating to classification and General Schedule 
pay rates, such technical and professional employees of the Institute 
as the Director determines to be necessary to accomplish the func-
tions of the Institute and also appoint and compensate without 
regard to such provisions, in a number not to exceed one-fifth 
of the number of full-time, regular technical and professional 
employees of the Institute. 
"(3) The Director may obtsiin the services of consultants, with-
out regard to the provisions of title 5, United States Code, governing 
appointments in the competitive service. 
"(e) The Director, pursuant to regulations which the Secretary Regulations, 
shall prescribe, may establish and maintain fellowships with such 
stipends and allowances, including travel and subsistence expenses 
provided for under title 5, United States Code, as the Director 
considers necessary to procure the assistance of highly qualified 
research fellows, including individuals with disabilities, from the 
United States and foreign countries. 
"(f)(1) The Director shall provide for scientific peer review 
of all applications for financial assistance for research, training, 
and demonstration projects over which the Director has authority. 
The scientific peer review shall be conducted by individuals who 
are not Federal employees, who are scientists or other experts 
in the rehabilitation field (including the independent living field), 
including knowledgeable individuals with disabilities, and the 
individuals' representatives, and who are competent to review 
applications for the financial assistance. 
"(2) In providing for such scientific peer review, the Secretary 
shall provide for training, as necessary and appropriate, to facilitate 
the effective participation of those individuals selected to participate 
in such review. 
"(g) Not less than 90 percent of the funds appropriated under 
this title for any fiscal year shall be expended by the Director 
to carry out activities under this title through grants, contracts, 
or cooperative agreements. Up to 10 percent of the funds appro-
priated under this title for any fiscal year may be expended directly 
for the purpose of carrying out the functions of the Director under 
this section. 
"(h)(1) The Director shall— 
Deadlines. 
"(A) by October 1, 1998, and every fifth October 1 there- Federal Register, 
after, prepare and publish in the Federal Register for public publication, 
comment a draft of a 5-year plan that outlines priorities for 
rehabilitation research, demonstration projects, training, and 
related activities and explains the basis for such priorities; 
112 STAT. 1172 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(B) by June 1, 1999, and every fifth June 1 thereafter, 
after considering public comments, submit the plan in final 
form to the appropriate committees of Congress; 
"(C) at appropriate intervals, prepare and submit revisions 
in the plan to the appropriate committees of Congress; and 
Reports. 
"(D) annually prepare and submit progress reports on the 
plan to the appropriate committees of Congress. 
"(2) Such plan shall— 
"(A) identify any covered activity that should be conducted 
under this section and section 204 respecting the full inclusion 
and integration into society of individuals with disabilities, 
especially in the area of employment; 
"(B) determine the funding priorities for covered activities 
to be conducted under this section and section 204; 
"(C) specify appropriate goals and timetables for covered 
activities to be conducted under this section and section 204; 
"(D) be developed by the Director— 
"(i) after consultation with the Rehabilitation Research 
Advisory Council established under section 205; 
"(ii) in coordination with the Commissioner; 
"(iii) after consultation with the National Council on 
Disability established under title IV, the Secretary of Edu-
cation, officials responsible for the administration of the 
Developmental Disabilities Assistance and Bill of Rights 
Act (42 U.S.C. 6000 et seq.), and the Interagency Commit-
tee on Disability Research established under section 203; 
and 
"(iv) after full consideration of the input of individuals 
with disabilities and the individuals' representatives, 
organizations representing individuals with disabilities, 
providers of services furnished under this Act, researchers 
in the rehabilitation field, and any other persons or entities 
the Director considers to be appropriate; 
"(E) specify plans for widespread dissemination of the 
results of covered activities, in accessible formats, to rehabilita-
tion practitioners, individuals with disabilities, and the individ-
uals' representatives; and 
"(F) specify plans for widespread dissemination of the 
results of covered activities that concern individuals with 
disabilities who are members of minority groups or of popu-
lations that are unserved or underserved by programs carried 
out under this Act. 
"(i) In order to promote cooperation among Federal departments 
£ind agencies conducting research programs, the Director shall con-
sult with the administrators of such programs, and with the Inter-
agency Committee established by section 203, regarding the design 
of research projects conducted by such entities and the results 
and applications of such research. 
"(j)(l) The Director shall take appropriate actions to provide 
for a comprehensive and coordinated research program under this 
title. In providing such a program, the Director may undertake 
joint activities with other Federal entities engaged in research 
and with appropriate private entities. Any Federal entity proposing 
to establish any research project related to the purposes of this 
Act shall consult, through the Interagency Committee established 
by section 203, with the Director as Chairperson of such Committee 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1173 
and provide the Director with sufficient prior opportunity to com-
ment on such project. 
"(2) Any person responsible for administering any program 
of the National Institutes of Health, the Department of Veterans 
Affairs, the National Science Foundation, the National Aeronautics 
and Space Administration, the Office of Special Education and 
Rehabilitative Services, or of any other Federal entity, shall, 
through the Interagency Committee established by section 203, 
consult and cooperate with the Director in carrying out such pro-
gram if the program is related to the purposes of this title. 
"(3) The Director shall support, directly or by grant or contract, 
a center associated with an institution of higher education, for 
research and training concerning the delivery of vocational 
rehabilitation services to rural areas. 
"(k) The Director shall make grants to institutions of higher 
education for the training of rehabilitation researchers, including 
individuals with disabilities, with particular attention to research 
areas that support the implementation and objectives of this Act 
and that improve the effectiveness of services authorized under 
this Act. 
Grants. 
Contracts. 
Grants. 
INTERAGENCY COMMITTEE 
"SEC. 203. (a)(1) In order to promote coordination and coopera- Establishment, 
tion 
among 
Federal 
departments 
and 
agencies 
conducting 29USC763. 
rehabilitation research programs, there is established within the 
Federal Grovemment an Interagency Committee on Disability 
Research (hereinafter in this section referred to as the 'Committee'), 
chaired by the Director and comprised of such members as the 
President may designate, including the following (or their des-
ignees): the Director, the Commissioner of the Rehabilitation Serv-
ices Administration, the Assistant Secretary for Special Education 
and Rehabilitative Services, the Secretary of Education, the Sec-
retary of Veterans Affairs, the Director of the National Institutes 
of Health, the Director of the National Institute of Mental Health, 
the Administrator of the National Aeronautics and Space Adminis-
tration, the Secretary of Transportation, the Assistant Secretary 
of the Interior for Indian Affairs, the Director of the Indian Health 
Service, and the Director of the National Science Foundation. 
"(2) The Committee shall meet not less than four times each 
year. 
"(b) After receiving input from individuals with disabilities 
and the individuals' representatives, the Committee shall identify, 
assess, and seek to coordinate all Federal programs, activities, 
and projects, and plans for such programs, activities, and projects 
with respect to the conduct of research related to rehabilitation 
of individuals with disabilities. 
"(c) The Committee shall annually submit to the President Reports. 
and to the appropriate committees of the Congress a report making 
such recommendations as the Committee deems appropriate with 
respect to coordination of policy and development of objectives and 
priorities for all Federal programs relating to the conduct of 
research related to rehabilitation of individuals with disabilities. 
"RESEARCH AND OTHER COVERED ACTIVITIES 
"SEC. 204. (a)(1) To the extent consistent with priorities estab- 29USC764. 
lished in the 5-year plan described in section 202(h), the Director 
59-194 O - 98 - 10 : QL 3 Part 2 
112 STAT. 1174 
PUBLIC LAW 105-220—AUG. 7, 1998 
may make grants to and contracts with States and public or private 
agencies and organizations, including institutions of higher edu-
cation, Indian tribes, and tribal organizations, to pay part of the 
cost of projects for the purpose of planning and conducting research, 
demonstration projects, training, and related activities, the purposes 
of which are to develop methods, procedures, and rehabilitation 
technology, that maximize the full inclusion and integration into 
society, employment, independent living, family support, and eco-
nomic and social self-sufficiency of individuals with disabilities, 
especially individuals with the most significant disabilities, and 
improve the effectiveness of services authorized under this Act. 
"(2)(A) In carrying out this section, the Director shall emphasize 
projects that support the implementation of titles I, III, V, VI, 
and VII, including projects addressing the needs described in the 
State plans submitted under section 101 or 704 by State agencies. 
"(B) Such projects, as described in the State plans submitted 
by State agencies, may include— 
"(i) medical and other scientific, technical, methodological, 
and other investigations into the nature of disability, methods 
of analyzing it, and restorative techniques, including basic 
research where related to rehabilitation techniques or services; 
"(ii) studies and analysis of industrial, vocational, social, 
recreational, psychiatric, psychological, economic, and other fac-
tors affecting rehabilitation of individuals with disabilities; 
"(iii) studies and analysis of special problems of individuals 
who are homebound and individuals who are institutionalized; 
"(iv) studies, analyses, and demonstrations of architectural 
and engineering design adapted to meet the special needs of 
individuals with disabilities; 
"(v) studies, analyses, and other activities related to sup-
ported employment; 
"(vi) related activities which hold promise of increasing 
knowledge and improving methods in the rehabilitation of 
individuals with disabilities and individuals with the most 
significant disabilities, particularly individuals with disabilities, 
and individuals with the most significant disabilities, who are 
members of populations that are unserved or underserved by 
programs under this Act; and 
"(vii) studies, ansilyses, and other activities related to job 
accommodations, including the use of rehabilitation engineering 
and assistive technology. 
"(b)(1) In addition to carrying out projects under subsection 
(a), the Director may make grants under this subsection (referred 
to in this subsection as 'research grants') to pay part or all of 
the cost of the research or other specialized covered activities 
described in paragraphs (2) through (18). A research grant made 
under any of paragraphs (2) through (18) may only be used in 
a manner consistent with priorities established in the 5-year plan 
described in section 202(h). 
"(2)(A) Research grants may be used for the establishment 
and support of Rehabilitation Research and Training Centers, for 
the purpose of providing an integrated program of research, which 
Centers shall— 
"(i) be operated in collaboration with institutions of higher 
education or providers of rehabilitation services or other appro-
priate services; and 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1175 
"(ii) serve as centers of national excellence and national 
or regional resources for providers and individuals with disabil-
ities and the individuals' representatives. 
"(B) The Centers shall conduct research and training activities 
b y -
"(i) conducting coordinated and advanced programs of 
research in rehabilitation targeted toward the production of 
new knowledge that will improve rehabilitation methodology 
and service delivery systems, alleviate or stabilize disabling 
conditions, and promote maximum 
social and 
economic 
independence of individuals with disabilities, especially promot-
ing the ability of the individuals to prepare for, secure, retain, 
regain, or advance in employment; 
"(ii) providing training (including graduate, pre-service, and 
in-service training) to assist individuals to more effectively 
provide rehabilitation services; 
"(iii) providing training (including graduate, pre-service, 
and in-service training) for rehabilitation research personnel 
and other rehabilitation personnel; and 
"(iv) serving as an informational and technical assistance 
resource to providers, individuals with disabilities, and the 
individuals' representatives, through conferences, workshops, 
public education programs, in-service training programs, and 
similar activities. 
"(C) The research to be carried out at each such Center may 
include— 
"(i) basic or applied medical rehabilitation research; 
"(ii) research regarding the psychological and social aspects 
of rehabilitation, including disability policy; 
"(iii) research related to vocational rehabilitation; 
"(iv) continuation of research that promotes the emotional, 
social, educational, and functional growth of children who are 
individuals with disabilities; 
"(v) continuation of research to develop and evaluate inter-
ventions, policies, and services that support families of those 
children and adults who are individuals with disabilities; and 
"(vi) continuation of research that will improve services 
and policies that foster the productivity, independence, and 
social integration of individuals with disabilities, and enable 
individuals with disabilities, including individuals with mental 
retardation and other developmental disabilities, to live in their 
communities. 
"(D) Training of students preparing to be rehabilitation person-
nel shall be an importsint priority for such a Center. 
"(E) The Director shall make grants under this paragraph 
Grants, 
to establish and support both comprehensive centers dealing with 
multiple disabilities and centers primarily focused on particular 
disabilities. 
"(F) Grants made under this paragraph may be used to provide 
funds for services rendered by such a Center to individuals with 
disabilities in connection with the research and training activities. 
"(G) Grants made under this paragraph may be used to provide 
faculty support for teaching— 
"(i) rehabilitation-related courses of study for credit; and 
"(ii) other courses offered by the Centers, either directly 
or through another entity. 
112 STAT. 1176 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(H) The research and training activities conducted by such 
a Center shall be conducted in a manner that is accessible to 
and usable by individuals with disabilities. 
"(I) The Director shall encourage the Centers to develop prac-
tical applications for the findings of the research of the Centers. 
"(J) In awarding grants under this paragraph, the Director 
shall take into consideration the location of any proposed Center 
and the appropriate geographic and regional allocation of such 
Centers. 
"(K) To be eligible to receive a grant under this paragraph, 
each such institution or provider described in subparagraph (A) 
shall— 
"(i) be of sufficient size, scope, and quality to effectively 
carry out the activities in an efficient manner consistent with 
appropriate Federal and State law; and 
"(ii) demonstrate the ability to carry out the training activi-
ties either directly or through another entity that can provide 
such training. 
Grants. 
"(L) The Director sheill make grants under this paragraph for 
periods of 5 years, except that the Director may make a grant 
for a period of less them 5 years if— 
"(i) the grant is made to a new recipient; or 
"(ii) the grant supports new or innovative research. 
"(M) Grants made under this paragraph shall be made on 
a competitive basis. To be eligible to receive a grant under this 
paragraph, a prospective grant recipient shall submit an application 
to the Director at such time, in such m£inner, £ind containing 
such information as the Director may require. 
"(N) In conducting scientific peer review under section 202(f) 
of an application for the renewal of a grant made under this 
pgiragraph, the peer review panel shall take into account the past 
performance of the applicant in carrying out the grant and input 
from individu£ds with disabilities and the individuals' representa-
tives. 
"(O) An institution or provider that receives a grant under 
this paragraph to establish such a Center may not collect more 
than 15 percent of the amount of the grant received by the Center 
in indirect cost charges. 
"(3)(A) Research grants may be used for the establishment 
and support of Rehabilitation Engineering Research Centers, oper-
ated by or in collaboration with institutions of higher education 
or nonprofit organizations, to conduct research or demonstration 
activities, and training activities, regarding rehabilitation tech-
nology, including rehabilitation engineering, assistive technology 
devices, and assistive technology services, for the purposes of 
enhancing opportunities for better meeting the needs of, and 
addressing the barriers confi*onted by, individuals with disabilities 
in all aspects of their lives. 
"(B) In order to carry out the purposes set forth in subparagraph 
(A), such a Center shall carry out the research or demonstration 
activities by— 
"(i) developing and disseminating innovative methods of 
applying advanced technology, scientific achievement, and 
psychological and social knowledge to— 
"(I) solve rehabilitation problems and remove environ-
mental barriers through planning and conducting research, 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1177 
including cooperative research with pubUc or private agen-
cies and organizations, designed to produce new scientific 
knowledge, and new or improved methods, equipment, and 
devices; and 
"(11) study new or emerging technologies, products, 
or environments, and the effectiveness and benefits of such 
technologies, products, or environments; 
"(ii) demonstrating and disseminating— 
"(I) innovative models for the delivery, to rural and 
urban areas, of cost-effective rehabilitation technology serv-
ices that promote utilization of assistive technology devices; 
and 
"(II) other scientific research to assist in meeting the 
employment and independent living needs of individuals 
with significant disabilities; or 
"(iii) conducting research or demonstration activities that 
facilitate service delivery systems change by demonstrating, 
evaluating, documenting, and disseminating— 
"(I) consumer responsive and individual and family-
centered innovative models for the delivery to both rural 
and urban areas, of innovative cost-effective rehabilitation 
technology services that promote utilization of rehabilita-
tion technology; and 
"(II) other scientific research to assist in meeting the 
employment and independent living needs of, and address-
ing the barriers confronted by, individuals with disabilities, 
including individuals with significant disabilities. 
"(C) To the extent consistent with the nature and type of 
research or demonstration activities described in subparagraph (B), 
each Center established or supported through a grant made avail-
able upder this paragraph shall— 
"(i) cooperate with programs established under the Tech-
nology-Related Assistance for Individuals With Disabilities Act 
of 1988 (29 U.S.C. 220i et seq.) and other regional and local 
programs to provide information to individuals with disabilities 
and the individuals' representatives to— 
"(I) increase awareness and understanding of how 
rehabilitation technology can address their needs; and 
"(II) increase awareness and understanding of the 
range of options, programs, services, and resources avail-
able, including financing options for the technology and 
services covered by the area of focus of the Center; 
"(ii) provide training opportunities to individuals, including 
individuals 
with 
disabilities, 
to 
become 
researchers 
of 
rehabilitation technology and practitioners of rehabilitation 
technology in conjunction with institutions of higher education 
and nonprofit organizations; and 
"(iii) respond, through research or demonstration activities, 
to the needs of individuals with all types of disabilities who 
may benefit from the application of technology within the area 
of focus of the Center. 
"(D)(i) In establishing Centers to conduct the research or dem-
onstration activities described in subparagraph (B)(iii), the Director 
may establish one Center in each of the following areas of focus: 
"(I) Early childhood services, including early intervention 
and family support. 
112 STAT. 1178 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(II) Education at the elementary and secondary levels, 
including transition from school to postschool activities. 
"(Ill) Employment, including supported employment, and 
reasonable accommodations and the reduction of environmental 
barriers as required by the Americans with Disabilities Act 
of 1990 (42 U.S.C. 12101 et seq.) and title V. 
"(IV) Independent living, including transition from institu-
tional to community living, maintenance of community living 
on leaving the workforce, self-help skills, and activities of daily 
living. 
"(ii) Each Center conducting the research or demonstration 
activities described in subparagraph (B)(iii) shall have an advisory 
committee, of which the majority of members are individuals with 
disabilities who are users of rehabilitation technology, and the 
individuals' representatives. 
"(E) Grants made under this paragraph shall be made on 
a competitive basis and shall be for a period of 5 years, except 
that the Director may make a grant for a period of less than 
5 years if— 
"(i) the grant is made to a new recipient; or 
"(ii) the grant supports new or innovative research. 
"(F) To be eligible to receive a grant under this paragraph, 
a prospective grant recipient shall submit an application to the 
Director at such time, in such manner, and containing such informa-
tion as the Director may require. 
"(G) Each Center established or supported through a grant 
made available under this paragraph shgQl— 
"(i) cooperate with State agencies and other local, State, 
regional, and national programs and organizations developing 
or delivering rehabilitation technology, including State pro-
. grams funded under the Technology-Related Assistance for 
' 
Individuals With Disabilities Act of 1988 (29 U.S.C. 2201 et 
seq.); and 
Reports. 
"(ii) prepare and submit to the Director as part of an 
application for continuation of a grant, or as a final report, 
a report that documents the outcomes of the program of the 
Center in terms of both short- £ind long-term impact on the 
lives of individuals with disabilities, and such other information 
as may be requested by the Director. 
"(4)(A) Research grants may be used to conduct a program 
for spinal cord injury research, including conducting such a program 
by making grants to public or private agencies and organizations 
to pay part or all of the costs of special projects and demonstration 
projects for spinal cord injuries, that will— 
"(i) ensure widespread dissemination of research findings 
among all Spinal Cord Injury Centers, to rehabilitation 
practitioners, individuals with spinal cord injury, the individ-
uals' representatives, and organizations receiving financial 
assistance under this pgiragraph; 
"(ii) provide encouragement and support for initiatives and 
new approaches by individual and institutional investigators; 
and 
"(iii) establish and maintain close working relationships 
with other governmental and voluntary institutions and 
organizations engaged in similar efforts in order to unify £ind 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1179 
coordinate scientific efforts, encourage joint planning, and pro-
mote the interchange of data and reports among spinal cord 
injury investigations. 
"(B) Any agency or organization carrying out a project or dem-
onstration project assisted by a grant under this paragraph that 
provides services to individuals with spinal cord injuries shall— 
"(i) establish, on an appropriate regional basis, a multidisci-
plinary system of providing vocational and other rehabilitation 
services, specifically designed to meet the special needs of 
individuals with spinal cord injuries, including acute care as 
well as periodic inpatient or outpatient followup and services; 
"(ii) demonstrate and evaluate the benefits to individuals 
with spinal cord injuries served in, and the degree of cost-
effectiveness of, such a regional system; 
"(iii) demonstrate and evaluate existing, new, and improved 
methods and rehabilitation technology essential to the care, 
management, and rehabilitation of individuals with spinal cord 
injuries; and 
"(iv) demonstrate and evaluate methods of community out-
reach for individuals with spinal cord injuries and community 
education in connection with the problems of such individuals 
in areas such as housing, transportation, recreation, employ-
ment, and community activities. 
"(C) In awarding grants under this paragraph, the Director 
shall take into account the location of any proposed Spinal Cord 
Injury Center and the appropriate geographic and regional alloca-
tion of such Centers. 
"(5) Research grants may be used to conduct a program for 
end-stage renal disease research, to include support of projects 
£ind demonstrations for providing special services (including 
transplantation and dialysis), artificial kidneys, and supplies nec-
essary for the rehabilitation of individuals with such disease and 
which will— 
"(A) ensure dissemination of research findings; 
"(B) provide encouragement and support for initiatives and 
new approaches by individuals and institutional investigators; 
and 
"(C) establish and maintain close working relationships 
with other governmental and voluntary institutions 
and 
organizations engaged in similar efforts, 
in order to unify and coordinate scientific efforts, encourage joint 
planning, and promote the interchange of data and reports among 
investigators in the field of end-stage renal disease. No person 
shall be selected to participate in such program who is eligible 
for services for such disease under any other provision of law. 
"(6) Research grants may be used to conduct a program for 
international rehabilitation research, demonstration, and training 
for the purpose of developing new knowledge and methods in the 
rehabilitation of individuals with disabilities in the United States, 
cooperating with and assisting in developing and sharing informa-
tion found useful in other nations in the rehabilitation of individuals 
with disabilities, and initiating a program to exchange experts 
and technical assistance in the field of rehabilitation of individuals 
with disabilities with other nations as a means of increasing the 
levels of skill of rehabilitation personnel. 
112 STAT. 1180 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(7) Research grants may be used to conduct a research program 
concerning the use of existing telecommunications systems (includ-
ing telephone, television, satellite, radio, and other similar systems) 
which have the potential for substantially improving service delivery 
methods, and the development of appropriate programming to meet 
the particular needs of individuals with disabilities. 
"(8) Research grants may be used to conduct a program of 
joint projects with the National Institutes of Health, the National 
Institute of Mental Health, the Health Services Administration, 
the Administration on Aging, the National Science Foundation, 
the Veterans' Administration, the Department of Health and 
Human Services, the National Aeronautics and Space Administra-
tion, other Federal agencies, and private industry in areas of joint 
interest involving rehabilitation. 
"(9) Research grants may be used to conduct a program of 
research related to the rehabilitation of children, or older individ-
uals, who are individuals with disabilities, including older American 
Indians who are individuals with disabilities. Such research pro-
gram may include projects designed to assist the adjustment of, 
or maintain as residents in the community, older workers who 
are individuals with disabilities on leaving the workforce. 
"(10) Research grants may be used to conduct a research pro-
gram to develop and demonstrate innovative methods to attract 
and retain professionals to serve in rural areas in the rehabilitation 
of individuals with disabilities, including individuals with signifi-
cant disabilities. 
"(11) Research grants may be used to conduct a model research 
and demonstration project designed to assess the feasibility of 
establishing a center for producing and distributing to individuals 
who are deaf or hard of hearing captioned video cassettes providing 
a broad range of educational, cultural, scientific, and vocational 
programming. 
"(12) Research grants may be used to conduct a model research 
and demonstration program to develop innovative methods of 
providing services for preschool age children who are individuals 
with disabilities, including— 
"(A) early intervention, assessment, parent counseling, 
infant stimulation, early identification, diagnosis, and evalua-
tion of children who are individuals with significant disabilities 
up to the age of five, with a special emphasis on children 
who are individuals with significant disabilities up to the age 
ofthree; 
"(B) such physical therapy, language development, pedi-
atric, nursing, psychological, and psychiatric services as are 
necessary for such children; and 
"(C) appropriate services for the parents of such children, 
including psychological and psychiatric services, parent counsel-
ing, and training. 
"(13) Research grants may be used to conduct a model research 
and training program under which model training centers shall 
be established to develop and use more advanced and effective 
methods of evaluating and addressing the employment needs of 
individuals with disabilities, including programs that— 
"(A) provide training and continuing education for person-
nel involved with the employment of individuals with disabil-
ities; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1181 
"(B) develop model procedures for testing and evaluating 
the employment needs of individuals with disabilities; 
"(C) develop model training programs to teach individuals 
with disabilities skills which will lead to appropriate employ-
ment; 
"(D) develop new approaches for job placement of individ-
uals with disabilities, including new followup procedures relat-
ing to such placement; 
"(E) provide information services regarding education, 
training, emplo3rment, and job placement for individuals with 
disabilities; and 
"(F) develop new approaches and provide information 
regarding job accommodations, including the use of rehabilita-
tion engineering and assistive technology. 
"(14) Research grants may be used to conduct a rehabilitation 
research program under which financial assistance is provided in 
order to— 
"(A) test new concepts and innovative ideas; 
"(B) demonstrate research results of high potential benefits; 
"(C) purchase prototype aids and devices for evaluation; 
"(D) develop unique rehabilitation training curricula; and 
"(E) be responsive to special initiatives of the Director. 
No single grant under this paragraph may exceed $50,000 in any 
fiscal year and all payments made under this paragraph in any 
fiscal year may not exceed 5 percent of the amount available for 
this section to the National Institute on Disability and Rehabilita-
tion Research in any fiscal year. Regulations and administrative 
procedures with respect to financial assistance under this paragraph 
shall, to the maximum extent possible, be expedited. 
"(15) Research grants may be used to conduct studies of the 
rehabilitation needs of American Indian populations and of effective 
mechanisms for the delivery of rehabilitation services to Indians 
residing on and off reservations. 
"(16) Research grants may be used to conduct a demonstration 
program under which one or more projects national in scope shall 
be established to develop procedures to provide incentives for the 
development, manufacturing, and marketing of orphan technological 
devices, including technology transfer concerning such devices, 
designed to enable individuals with disabilities to achieve independ-
ence and access to gainful employment. 
"(17)(A) Research grants may be used to conduct a research 
program related to quality assurance in the area of rehabilitation 
technology. 
"(B) Activities carried out under the research program may 
include— 
"(i) 
the 
development 
of 
methodologies 
to 
evaluate 
rehabilitation technology products and services and the dissemi-
nation of the methodologies to consumers and other interested 
parties; 
"(ii) identification of models for service provider training 
and evaluation and certification of the effectiveness of the mod-
els; 
"(iii) identification and dissemination of outcome measure-
ment models for the assessment of rehabilitation technology 
products and services; and 
112 STAT. 1182 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(iv) development and testing of research-based tools to 
enhance consumer decisionmaking about rehabilitation tech-
nology products and services. 
"(18) Research grants may be used to provide for research 
and demonstration projects and related activities that explore the 
use and effectiveness of specific alternative or complementary medi-
cal practices for individuals with disabilities. Such projects and 
activities may include projects and activities designed to— 
"(A) determine the use of specific alternative or complemen-
tary medical practices among individuals with disabilities and 
the perceived effectiveness of the practices; 
"(B) determine the specific information sources, decision-
making methods, and methods of payment used by individuEils 
with disabilities who access alternative or complementary medi-
cal services; 
"(C) develop criteria to screen and assess the validity of 
research studies of such practices for individuals with disabil-
ities; and 
"(D) determine the effectiveness of specific alternative or 
complementary medical practices that show promise for promot-
ing increased functioning, prevention of secondary disabilities, 
or other positive outcomes for individuals with certain types 
of disabilities, by conducting controlled research studies. 
"(c)(1) In carrying out evaluations of covered activities under 
this section, the Director is authorized to make arrangements for 
site visits to obtain information on the accomplishments of the 
projects. 
"(2) The Director shall not make a grant under this section 
that exceeds $500,000 unless the peer review of the grant applica-
tion has included a site visit. 
"REHABILITATION RESEARCH ADVISORY COUNCIL 
29 use 765. 
"SEC. 205. (a) ESTABLISHMENT.—Subject to the availability of 
appropriations, the Secretary shall establish in the Department 
of Education a Rehabilitation Research Advisory Council (referred 
to in this section as the 'Council') composed of 12 members 
appointed by the Secretary. 
"(b) DUTIES.—^The Council shall advise the Director with respect 
to research priorities and the development and revision of the 
5-year plan required by section 202(h). 
"(c) QUALIFICATIONS.—^Members of the Council shall be gen-
erally representative of the community of rehabilitation profes-
sionals, the community of rehabilitation researchers, the community 
of individuals with disabilities, and the individuals' representatives. 
At least one-half of the members shall be individuals with disabil-
ities or the individuals' representatives. 
"(d) TERMS OF APPOINTMENT.— 
"(1) LENGTH OF TERM.—Each member of the Council shall 
serve for a term of up to 3 years, determined by the Secretary, 
except that— 
"(A) a member appointed to fill a vacancy occurring 
prior to the expiration of the term for which a predecessor 
was appointed, shall be appointed for the remainder of 
such term; and 
"(B) the terms of service of the members initially 
appointed shall be (as specified by the Secretary) for such 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1183 
fewer number of years as will provide for the expiration 
of terms on a staggered basis. 
"(2) NUMBER OF TERMS.—No member of the Council may 
serve more than two consecutive full terms. Members may 
serve after the expiration of their terms until their successors 
have taken office. 
"(e) VACANCIES.—^Any vacancy occurring in the membership 
of the Council shall be filled in the same manner as the original 
appointment for the position being vacated. The vacancy shall not 
affect the power of the remaining members to execute the duties 
of the Council. 
"(f) PAYMENT AND EXPENSES.— 
"(1) PAYMENT.—Each member of the Council who is not 
an officer or full-time employee of the Federal Government 
shall receive a pa3rment of $150 for each day (including travel 
time) during which the member is engaged in the performance 
of duties for the Council. All members of the Council who 
are officers or full-time employees of the United States shall 
serve without compensation in addition to compensation 
received for their services as officers or employees of the United 
States. 
"(2) TRAVEL EXPENSES.—Each member of the Council may 
receive travel expenses, including per diem in lieu of subsist-
ence, as authorized by section 5703 of title 5, United States 
Code, for employees serving intermittently in the Government 
service, for each day the member is engaged in the performance 
of duties away from the home or regular place of business 
of the member. 
"(g) DETAIL OF FEDERAL EMPLOYEES.—On the request of the 
Council, the Secretary may detail, with or without reimbursement, 
any of the personnel of the Department of Education to the Council 
to assist the Council in carrying out its duties. Any detail shall 
not interrupt or otherwise affect the civil service status or privileges 
of the Federal employee. 
"(h) TECHNICAL ASSISTANCE.—On the request of the Council, 
the Secretary shall provide such technical assistance to the Council 
as the Council determines to be necessary to carry out its duties, 
"(i) TERMINATION.—Section 14 of the Federal Advisory Commit-
tee Act (5 U.S.C. App.) shall not apply with respect to the Council.". 
SEC. 406. PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
Grants. 
DEMONSTRATIONS. 
Contracts. 
Title III of the Rehabilitation Act of 1973 (29 U.S.C. 770 et 
seq.) is amended to read as follows: 
'TITLE III—PROFESSIONAL DEVELOP-
MENT AND SPECIAL PROJECTS AND 
DEMONSTRATIONS 
"SEC. 301. DECLARATION OF PURPOSE AND COMPETITIVE BASIS OF 29 USC 771. 
GRANTS AND CONTRACTS. 
"(a) PURPOSE.—It is the purpose of this title to authorize grants 
and contracts to— 
"(1)(A) provide academic training to ensure that skilled 
personnel are available to provide rehabilitation services to 
112 STAT. 1184 
PUBLIC LAW 105-220—AUG. 7, 1998 
individuals with disabilities through vocational, medical, social, 
and psychological rehabilitation programs (including supported 
employment 
programs), 
through 
economic 
and 
business 
development programs, through independent living services 
programs, and through client assistance programs; and 
"(B) provide training to maintain and upgrade basic skills 
and knowledge of personnel (including personnel specifically 
trained to deliver services to individuals with disabilities whose 
employment outcome is self-employment or telecommuting) 
employed to provide state-of-the-art 
service delivery and 
rehabilitation technology services; 
"(2) conduct special projects and demonstrations that 
expgind and improve the provision of rehabilitation and other 
services (including those services provided through community 
rehabilitation programs) authorized under this Act, or that 
otherwise further the purposes of this Act, including related 
research and evaluation; 
"(3) provide vocational rehabilitation services to individuals 
with disabilities who are migrant or seasonal farmworkers; 
"(4) initiate recreational programs to provide recreational 
activities and related experiences for individuals with disabil-
ities to aid such individuals in employment, mobility, socializa-
tion, independence, and community integration; and 
"(5) provide training and information to individuals with 
disabilities and the individuals' representatives, and other 
appropriate parties to develop the skills necessary for individ-
uals with disabilities to gain access to the rehabilitation system 
and statewide workforce investment systems and to become 
active decisionmakers in the rehabilitation process. 
"(b) COMPETITIVE BASIS OF GRANTS AND CoNTRACTS.^The Sec-
retary shall ensure that all grants and contracts are awarded under 
this title on a competitive basis. 
29 use 772. 
"SEC. 302. TRAINING. 
"(a) GRANTS AND CONTRACTS FOR PERSONNEL TRAINING.— 
"(1) AUTHORITY.—The Commissioner shall make grants to, 
and enter into contracts with, States and public or nonprofit 
agencies and organizations (including institutions of higher edu-
cation) to pay part of the cost of projects to provide training, 
^„ 
traineeships, and related activities, including the provision of 
|i 
technical assistance, that are designed to assist in increasing 
the numbers of, and upgrading the skills of, qualified personnel 
(especially rehabilitation counselors) who are trained in provid-
ing vocational, medical, social, and psychological rehabilitation 
services, who are trained to assist individuals with communica-
tion and related disorders, who are trained to provide other 
services provided under this Act, to individuals with disabilities, 
and who may include— 
"(A) personnel specifically trained in providing employ-
ment assistance to individuals with disabilities through 
job development and job placement services; 
"(B) personnel specifically trained to identify, assess, 
and meet the individual rehabilitation needs of individuals 
with disabilities, including needs for rehabilitation tech-
nology; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1185 
"(C) personnel specifically trained to deliver services 
to individuals who may benefit fi*om receiving independent 
living services; 
"(D) personnel specifically trained to deliver services 
in the client assistance programs; 
"(E) personnel specifically trained to deliver services, 
through supported employment programs, to individuals 
with a most significant disability; and 
"(F) personnel specifically trained to deliver services 
L 
to individuals with disabilities pursuing self-emplo3nnent, 
business ownership, and telecommuting; and 
"(G) personnel trained in performing other fimctions 
necessary to the provision of vocational, medical, social, 
and psychological rehabilitation services, and other services 
provided under this Act. 
"(2) AUTHORITY TO PROVIDE SCHOLARSHIPS.—Grants and 
contracts under paragraph (1) may be expended for scholarships 
and may include necessary stipends and allowances, 
"(3) RELATED FEDERAL STATUTES.—In carrying out this sub-
section, the Commissioner may make grants to and enter into 
contracts with States and public or nonprofit agencies and 
organizations, including institutions of higher education, to fur-
nish training regarding provisions of Federal statutes, including 
section 504, title I of the Americans with Disabilities Act of 
1990 (42 U.S.C. 12111 et seq.), and the provisions of titles 
II and XVI of the Social Security Act (42 U.S.C. 401 et seq. 
and 1381 et seq.), that are related to work incentives for individ-
uals with disabilities. 
"(4) TRAINING FOR STATEWIDE WORKFORCE SYSTEMS PERSON-
NEL.—^The Commissioner may make grants to and enter into 
contracts under this subsection with States and public or non-
profit agencies and organizations, including institutions of 
higher education, to furnish training to personnel providing 
services to individuals with disabilities under title I of the 
Workforce Investment Act of 1998. Under this paragraph, 
personnel may be trained— 
"(A) in evaluative skills to determine whether an 
individual with a disability may be served by the State 
vocational rehabilitation program or another component 
; 
of a statewide workforce investment system; or 
"(B) to assist individuals with disabilities seeking 
assistance through one-stop delivery systems described in 
section 134(c) of the Workforce Investment Act of 1998. 
"(5) JOINT FUNDING.—^Training and other activities provided 
under paragraph (4) for personnel may be jointly funded with 
the Department of Labor, using funds made available under 
title I of the Workforce Investment Act of 1998. 
"(b) GRANTS AND CONTRACTS FOR ACADEMIC DEGREES AND 
ACADEMIC CERTIFICATE GRANTING TRAINING PROJECTS.— 
"(1) AUTHORITY.— 
"(A) IN GENERAL.—The Commissioner may make 
grants to, and enter into contracts with. States and public 
or nonprofit agencies and organizations (including institu-
tions of higher education) to pay part of the costs of aca-
demic training projects to provide training that leads to 
an academic degree or academic certificate. In making such 
grants or entering into such contracts, the Commissioner 
112 STAT. 1186 
PUBLIC LAW 105-220—AUG. 7, 1998 
shall target funds to areas determined under subsection 
(e) to have shortages of qualified personnel. 
"(B) TYPES OF PROJECTS.—^Academic training projects 
described in this subsection may include— 
"(i) projects to train personnel in the areas of 
assisting and supporting individuals with disabilities 
pursuing self-employment, business ownership, and 
telecommuting, and of vocationsd rehabilitation coun-
seling, rehabilitation technology, rehabilitation medi-
cine, rehabilitation nursing, rehabilitation social work, 
rehabilitation psychiatry, rehabilitation psychology, 
rehabilitation dentistry, physical therapy, occupational 
therapy, speech pathology and audiology, physical edu-
cation, therapeutic recreation, community rehabilita-
tion programs, or prosthetics and orthotics; 
"(ii) projects to train personnel to provide— 
"(I) services to individuals with specific disabil-
ities or individuals with disabilities who have spe-
cific impediments 
to rehabilitation, 
including 
individuals who are members of populations that 
are unserved or underserved by programs under 
this Act; 
"(II) job development and job placement serv-
ices to individuals with disabilities; 
"(III) supported employment services, includ-
ing services of employment specisdists for individ-
uals with disabilities; 
"(IV) specialized services for individuals with 
significant disabilities; or 
"(V) recreation for individuals with disabilities; 
"(iii) projects to train personnel in other fields 
contributing to the rehabilitation of individuals with 
disabilities; and 
"(iv) projects to train personnel in the use, applica-
tions, £ind benefits of rehabilitation technology. 
"(2) APPLICATION.—No grant shall be awarded or contract 
entered into under this subsection unless the applicant has 
submitted to the Commissioner an application at such time, 
in such form, in accordance with such procedures, and including 
such information as the Secretary may require, including— 
"(A) a description of how the designated State unit 
or units will participate in the project to be funded under 
the grgint or contract, including, as appropriate, participa-
tion on advisory committees, as practicum sites, in curricu-
lum development, and in other ways so as to build closer 
relationships between the applicant and the designated 
State unit and to encourage students to pursue careers 
in public vocational rehabilitation programs; 
"(B) the identification of potential employers that pro-
vide emplojnnent that meets the requirements of paragraph 
(5)(A)(i); and 
"(C) an assurance that data on' the emplojnnent of 
graduates or trainees who participate in the project is 
accurate. 
"(3) LIMITATION.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), no grant or contract under this subsection may be 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1187 
used to provide any one course of study to an individual 
for a period of more than 4 years. 
"(B) EXCEPTION.—If a grant or contract recipient under 
this subsection determines that an individual has a disabil-
ity which seriously affects the completion of training under 
this subsection, the grant or contract recipient may extend 
the period referred to in subparagraph (A). 
"(4) AUTHORITY TO PROVIDE SCHOLARSHIPS.—Grants 
and 
contracts under paragraph (1) may be expanded to provide 
services that include the provision of scholarships and necessary 
stipends and allow£inces. 
"(5) AGREEMENTS.— 
"(A) CONTENTS.—A recipient of a grant or contract 
under this subsection shall provide assurances to the 
Commissioner that each individual who receives a scholar-
ship, for any academic year beginning after June 1, 1992, 
utilizing funds provided under such grant or contract shall 
enter into an agreement with the recipient under which 
the individual shall— 
"(i) maintain emplojrment— 
"(I) in a nonprofit rehabilitation agency or 
related agency or in a State rehabilitation agency 
or related agency, including a professional corpora-
tion or professional practice group through which 
the individual has a service arrangement with the 
designated State agency; 
"(II) on a full- or part-time basis; and 
"(III) for a period of not less than the full-
time equivalent of 2 years for each year for which 
assistance under this section was received by the 
individual, 
within a period, beginning after the recipient completes 
the training for which the scholarship was awarded, 
of not more than the sum of the number of years 
in the period described in subclause (III) and 2 addi-
tional years; and 
"(ii) repay all or part of any scholarship received, 
plus interest, if the individual does not fulfill the 
requirements of clause (i), 
except as the Commissioner by regulation may provide 
for repa3rment exceptions and deferrals. 
"(B) 
ENFORCEMENT.—The 
Commissioner 
shall 
be 
responsible for the enforcement of each agreement entered 
into under subparagraph (A) upon completion of the train-
ing involved under such subparagraph. 
"(c) GRANTS TO HISTORICALLY BLACK COLLEGES AND UNIVER-
SITIES.—^The Commissioner, in carrying out this section, shall msike 
grants to historically Black colleges and universities and other 
institutions of higher education whose minority student enrollment 
is at least 50 percent of the total enrollment of the institution. 
"(d) APPLICATION.—A grant may not be awarded to a State 
or other organization under this section unless the State or 
organization has submitted an application to the Commissioner 
at such time, in such form, in accordance with such procedures, 
and containing such information as the Commissioner may require. 
Any such application shall include a detailed description of strate-
gies that will be utilized to recruit and train individuals so as 
112 STAT. 1188 
PUBLIC LAW 105^220—AUG. 7, 1998 
to reflect the diverse populations of the United States as part 
of the effort to increase the number of individuals with disabilities, 
and individuals who are from linguistically and culturally diverse 
backgrounds, who are available to provide rehabilitation services. 
"(e) 
EVALUATION AND COLLECTION OF DATA.—The Commis-
sioner shall evaluate the impact of the training programs conducted 
under this section, and collect information on the training needs 
of, and data on shortages of qualified personnel necessary to provide 
Reports. 
services to individuals with disabilities. The Commissioner shall 
prepare and submit to Congress, by September 30 of each fiscal 
year, a report setting forth and justifying in detail how the funds 
made available for training under this section for the fiscal year 
prior to such submission are allocated by professional discipline 
and other program areas. The report shall also contain findings 
on such personnel shortages, how funds proposed for the succeeding 
fiscal year will be allocated under the President's budget proposal, 
and how the findings on personnel shortages justify the allocations. 
"(f) GRANTS FOR THE TRAINING OF INTERPRETERS.— 
"(1) AUTHORITY.— 
"(A) IN GENERAL.—^For the purpose of training a suffi-
cient number of qualified interpreters to meet the commu-
nications needs of individuals who are deaf or hard of 
hearing, and individuals who are deaf-blind, the Commis-
sioner, acting through a Federal office responsible for deaf-
ness and communicative disorders, may award grants to 
public or private nonprofit agencies or organizations to 
pay part of the costs— 
"(i) for the establishment of interpreter training 
programs; or 
"(ii) to enable such agencies or organizations to 
provide financial assistance for ongoing interpreter 
training programs. 
"(B) GEOGRAPHIC AREAS.—^The Commissioner shall 
award grants under this subsection for programs in 
geographic areas throughout the United States that the 
Commissioner considers appropriate to best carry out the 
objectives of this section. 
"(C) PRIORITY.—In awarding grants under this sub-
section, the Commissioner shall give priority to public or 
private nonprofit agencies or organizations with existing 
programs that have a demonstrated capacity for providing 
interpreter training services. 
"(D) FUNDING.—^The Commissioner may award grants 
under this subsection through the use of— 
"(i) amounts appropriated to carry out this section; 
or 
"(ii) pursuant to an agreement with the Director 
of the Office of the Special Education Program (estab-
lished under section 603 of the Individuals with 
Disabilities Education Act (as amended by section 101 
of the Individuals with Disabilities Education Act 
Amendments of 1997 (Public Law 105-17))), amounts 
appropriated under section 686 of the Individuals with 
Disabilities Education Act. 
"(2) APPLICATION.—^A grant may not be awarded to an 
agency or orgEinization under paragraph (1) unless the agency 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1189 
or organization has submitted an application to the Commis-
sioner at such time, in such form, in accordance with such 
procedures, and containing such information as the Commis-
sioner may require, including— 
"(A) a description of the manner in which an inter-
preter training program will be developed and operated 
during the 5-year period following the date on which a 
grant is received by the applicant under this subsection; 
"(B) a demonstration of the applicant's capacity or 
potential for providing training for interpreters for individ-
uals who are deaf or hard of hearing, and individuals 
who are deaf-blind; 
"(C) assurances that any interpreter trained 
or 
retrained under a program funded under the grant will 
meet such minimum standards of competency as the 
Commissioner may establish for purposes of this sub-
section; and 
"(D) such other information as the Commissioner may 
require. 
"(g) TECHNICAL ASSISTANCE AND IN-SERVICE TRAINING.— 
"(1) TECHNICAL ASSISTANCE.—The Commissioner is author-
ized to provide technical assistance to State designated agencies 
and community rehabilitation programs, directly or through 
contracts with State designated agencies or nonprofit organiza-
tions. 
"(2) COMPENSATION.—^An expert or consultant appointed 
or serving under contract pursuant to this section shall be 
compensated at a rate, subject to approval of the Commissioner, 
that shall not exceed the daily equivalent of the rate of pay 
for level 4 of the Senior Executive Service Schedule under 
section 5382 of title 5, United States Code. Such an expert 
or consultant may be allowed travel and transportation 
expenses in accordance with section 5703 of title 5, United 
States Code. 
"(3) IN-SERVICE TRAINING OF REHABILITATION PERSONNEL.— 
"(A) PROJECTS.—Subject to subparagraph (B), at least 
15 percent of the sums appropriated to carry out this 
section shall be allocated to designated State agencies to 
be used, directly or indirectly, for projects for in-service 
training for rehabilitation personnel, consistent with the 
needs identified through the comprehensive system for 
personnel development required by section 
101(a)(7), 
including projects designed— 
"(i) to address recruitment and retention of quali-
fied rehabilitation professionals; 
"(ii) to provide for succession planning; 
"(iii) to provide for leadership development and 
capacity building; and 
"(iv) for fiscal years 1999 and 2000, to provide 
training regarding the Workforce Investment Act of 
1998 and the amendments to this Act made by the 
Rehabilitation Act Amendments of 1998. 
"(B) LIMITATION.—If the allocation to designated State 
agencies required by subparagraph (A) would result in 
a lower level of funding for projects being carried out 
on the date of enactment of the Rehabilitation Act Amend-
ments of 1998 by other recipients of funds under this 
112 STAT. 1190 
PUBLIC LAW 105-220—AUG. 7, 1998 
section, the Commissioner may allocate less than 15 per-
cent of the sums described in subparagraph (A) to des-
ignated State agencies for such in-service training. 
"(h) PROVISION OF INFORMATION.—The Commissioner, subject 
to the provisions of section 306, may require that recipients of 
grants or contracts under this section provide information, including 
data, with regard to the impact of activities funded under this 
section. 
"(i) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for each of the fiscal years 1999 through 2003. 
29 use 773. 
"SEC. 303. DEMONSTRATION AND TRAINING PROGRAMS. 
"(a) DEMONSTRATION PROJECTS TO INCREASE CLIENT CHOICE.— 
"(1) GRANTS.—^The Commissioner may make grants to 
States and public or nonprofit agencies and organizations to 
pay all or part of the costs of projects to demonstrate ways 
to increase client choice in the rehabilitation process, including 
the selection of providers of vocational rehabilitation services. 
"(2) USE OF FUNDS.—^An entity that receives a grant under 
this subsection shall use the grant only— 
"(A) for activities that are directly related to planning, 
operating, and evaluating the demonstration projects; and 
"(B) to supplement, and not supplant, funds made 
available from Federal and non-Federal sources for such 
projects. 
"(3) APPLICATION.—^Any eligible entity that desires to 
receive a grant under this subsection shall submit an applica-
tion at such time, in such manner, and containing such informa-
tion and assurances as the Commissioner may require, includ-
ing— 
^ 
"(A) a description of— 
i 
"(i) how the entity intends to promote increased 
client choice in the rehabilitation process, including 
a description, if appropriate, of how an applicant will 
determine the cost of any service or product offered 
to an eligible client; 
"(ii) how the entity intends to ensure that £iny 
vocational rehabilitation service or related service is 
provided by a qualified provider who is accredited or 
meets such other quality assurance and cost-control 
criteria as the State may establish; and 
"(iii) the outreach activities to be conducted by 
the applicant to obtain eligible clients; and 
"(B) assurances that a written plan will be established 
with the full participation of the client, which plan shall, 
at a minimum, include— 
"(i) a statement of the vocational rehabilitation 
goals to be achieved; 
"(ii) a 
statement 
of the specific 
vocational 
rehabilitation services to be provided, the projected 
dates for their initiation, and the anticipated duration 
of each such service; and 
"(iii) objective criteria, an evaluation procedure, 
and a schedule, for determining whether such goeds 
are being achieved. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1191 
"(4) AWARD OF GRANTS.—In selecting entities to receive 
grants under paragraph (1), the Commissioner shall take into 
consideration— 
"(A) the diversity of strategies used to increase client 
choice, including selection among qualified service provid-
ers; 
"(B) the geographic distribution of projects; and 
"(C) the diversity of clients to be served. 
"(5) RECORDS.—Entities that receive grants under para-
graph (1) shall maintain such records as the Commissioner 
may require and comply with any request from the Commis-
sioner for such records. 
"(6) DIRECT SERVICES.—^At least 80 percent of the funds 
awarded for any project under this subsection shall be used 
for direct services, as specifically chosen by eligible clients. 
"(7) EVALUATION.—^The Commissioner may conduct an 
evaluation of the demonstration projects with respect to the 
services provided, clients served, client outcomes obtained, 
implementation issues addressed, the cost-effectiveness of the 
project, and the effects of increased choice on clients and service 
providers. The Commissioner may reserve funds for the evalua-
tion for a fiscal year from the amounts appropriated to carry 
out projects under this section for the fiscal year. 
"(8) DEFINITIONS.—For the purposes of this subsection: 
"(A) DIRECT SERVICES.—The term 'direct services' 
means vocational rehabilitation services, as described in 
section 103(a). 
"(B) ELIGIBLE CLIENT.—^The term 'eligible client' means 
an individual with a disability, as defined in section 
7(20)(A), who is not currently receiving services under an 
individualized plan for emplo3nnent established through 
a designated State unit. 
"(b) SPECIAL DEMONSTRATION PROGRAMS.— 
"(1) GRANTS; CONTRACTS.—^The Commissioner, subject to 
the provisions of section 306, may provide grants to, or enter 
into contracts with, eligible entities to pay all or part of the 
cost of programs that expand and improve the provision of 
rehabilitation and other services authorized under this Act 
or that further the purposes of the Act, including related 
research and evaluation activities. 
"(2) ELIGIBLE ENTITIES; TERMS AND CONDITIONS.— 
"(A) ELIGIBLE ENTITIES.—TO be eligible to receive a 
grant, or enter into a contract, under paragraph (1), an 
entity shall be a State vocational rehabilitation agency, 
community rehabilitation program, Indian tribe or tribal 
organization, or other public or nonprofit agency or 
organization, or as the Commissioner determines appro-
priate, a for-profit organization. The Commissioner may 
limit competitions to one or more types of organizations 
described in this subparagraph. 
"(B) TERMS AND CONDITIONS.—A grant or contract 
under paragraph (1) shall contain such terms and condi-
tions as the Commissioner may require. 
"(3) APPLICATION.—An eligible entity that desires to receive 
a grant, or enter into a contract, under paragraph (1) shall 
submit an application to the Secretary at such time, in such 
form, and containing such information and assurances as the 
112 STAT. 1192 
PUBLIC LAW 105-220—AUG. 7, 1998 
Commissioner may require, including, if the Commissioner 
determines appropriate, a description of how the proposed 
project or demonstration program— 
"(A) is based on current research findings, which may 
include research conducted by the National Institute on 
Disability and Rehabilitation 
Research, the 
National 
Institutes of Health, and other public or private organiza-
tions; and 
"(B) is of national significance. 
"(4) TYPES OF PROJECTS.—^The programs that may be 
funded under this subsection may include— 
"(A) special projects and demonstrations of service 
delivery; 
"(B) model demonstration projects; 
"(C) technical assistance projects; 
"(D) systems change projects; 
"(E) special studies and evaluations; and 
"(F) dissemination and utilization activities. 
"(5) PRIORITY FOR COMPETITIONS.— 
"(A) IN GENERAL.—In announcing competitions for 
grants and contracts under this subsection, the Commis-
sioner shall give priority consideration to— 
"(i) special projects and demonstration programs 
of service delivery for adults who are either low-func-
tioning and deaf or low-functioning and hard of hear-
ing; 
"(ii) supported employment, including community-
based supported employment programs to meet the 
needs of individuals with the most significant disabil-
ities or to provide technical assistance to States and 
community organizations to improve and expand the 
provision of supported employment services; and 
"(iii) model transitional planning services for 
youths with disabilities. 
"(B) ADDITIONAL COMPETITIONS.—In announcing com-
petitions for grants and contracts under this subsection, 
the Commissioner may require that applicants address one 
or more of the following: 
"(i) Age ranges, 
"(ii) TVpes of disabilities, 
"(iii) Types of services, 
"(iv) Models of service delivery, 
"(v) Stage of the rehabilitation process, 
"(vi) The 
needs of underserved 
populations, 
unserved and underserved areas, individuals with 
significant disabilities, low-incidence disability popu-
lation or individuals residing in federally designated 
empowerment zones and enterprise communities. 
"(vii) Expansion of employment opportunities for 
individuals with disabilities. 
"(viii) Systems change projects to promote mean-
ingful access of individuals with disabilities to employ-
ment-related services under title I of the Worldbrce 
Investment Act of 1998 and under other Federal laws, 
"(ix) Innovative methods of promoting achievement 
of high-quality employment outcomes. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1193 
"(x) The demonstration of the effectiveness of early 
intervention activities in improving employment out-
comes. 
"(xi) Alternative methods of providing affordable 
transportation services to individuals with disabilities 
who are employed, seeking employment, or receiving 
vocational rehabilitation services from public or private 
organizations and who reside in geographic areas in 
which public transportation or paratransit service is 
not available. 
"(6) USE OF FUNDS FOR CONTINUATION AWARDS.—The 
Commissioner may use funds made available to carry out this 
section for continuation awards for projects that were funded 
under sections 12 and 311 (as such sections were in effect 
on the day before the date of the enactment of the Rehabilita-
tion Act Amendments of 1998). 
"(c) PARENT INFORMATION AND TRAINING PROGRAM.— 
"(1) GRANTS.—^The Commissioner is authorized to make 
grants to private nonprofit organizations for the purpose of 
establishing programs to provide training and information to 
enable individuals with disabilities, and the parents, family 
members, guardians, advocates, or other authorized representa-
tives of the individuals to participate more effectively with 
professionals in meeting the vocational, independent living, 
and rehabilitation needs of individuals with disabilities. Such 
grants shall be designed to meet the unique training and 
information needs of the individuals described in the preceding 
sentence, who live in the area to be served, particularly those 
who are members of populations that have been unserved or 
underserved by programs under this Act. 
"(2) USE OF GRANTS.—^An organization that receives a grant 
to establish training and information programs under this sub-
section shall use the grant to assist individuals with disabilities, 
and the parents, family members, guardians, advocates, or 
authorized representatives of the individuals— 
"(A) to better understand vocational rehabilitation and 
independent living programs and services; 
"(B) to provide followup support for transition and 
emplo3anent programs; 
"(C) to communicate more effectively with transition 
and rehabilitation personnel and other relevant profes-
sionals; 
J 
"(D) to provide support in the development of the 
individualized plan for employment; 
"(E) to provide support and expertise in obtaining 
information about rehabilitation and independent living 
programs, services, and resources that are appropriate; 
and 
"(F) to understand the provisions of this Act, particu-
larly provisions relating to employment, supported employ-
ment, and independent living. 
"(3) AWARD OF GRANTS.—^The Commissioner shall ensure 
that grants under this subsection— 
"(A) shall be distributed geographically to the greatest 
extent possible throughout all States; and 
"(B) shall be targeted to individuals with disabilities, 
and the parents, family members, guardians, advocates, 
112 STAT. 1194 
PUBLIC LAW 105-220—AUG. 7, 1998 
or authorized representatives of the individuals, in both 
urban and rural areas or on a State or regional basis. 
"(4) ELIGIBLE ORGANIZATIONS.—In order to receive a grant 
under this subsection, an organization— 
"(A) shall submit an application to the Commissioner 
at such time, in such manner, and containing such informa-
tion as the Commissioner may require, including informa-
tion demonstrating the capacity and expertise of the 
organization— 
"(i) to coordinate training and information activi-
ties with Centers for Independent Living; 
"(ii) to coordinate and work closely with parent 
training and information centers established pursuant 
to section 682(a) of the Individuals with Disabilities 
Education Act (as added by section 101 of the Individ-
uals with Disabilities Education Act Amendments of 
1997; Public Law 105-17); and 
"(iii) to effectively 
conduct the training 
and 
information activities authorized under this subsection; 
"(B)(i) shall be governed by a board of directors— 
"(I) that includes professionals in the field of voca-
tional rehabilitation; and 
"(II) on which a majority of the members are 
individuals with disabilities or the parents, family 
members, guardians, advocates, or authorized rep-
resentatives of the individuals; or 
"(ii)(I) shall have a membership that represents the 
interests of individuals with disabilities; and 
"(II) shall establish a special governing committee that 
meets the requirements specified in subclauses (I) and 
(II) of clause (i) to operate a training and information 
program under this subsection; and 
"(C) shall serve individuals with a full range of disabil-
ities, and the parents, family members, guardians, advo-
cates, or authorized representatives of the individuals. 
"(5) CONSULTATION.—Each organization carrying out a pro-
gram receiving assistance under this subsection shall consult 
with appropriate agencies that serve or assist individuals with 
disabilities, and the parents, family members, guardians, advo-
cates, or authorized representatives of the individuals, located 
in the jurisdiction served by the program. 
"(6) 
COORDINATION.—^The Commissioner 
shall 
provide 
coordination and technical assistance by grant or cooperative 
agreement for establishing, developing, and coordinating the 
training and information programs. To the extent practicable, 
such assistance shall be provided by the parent training and 
information centers established pursuant to section 682(a) of 
the Individuals with Disabilities Education Act (as added by 
section 101 of the Individuals with Disabilities Education Act 
Amendments of 1997; PubHc Law 105-17). 
"(7) REVIEW.— 
"(A) QUARTERLY REVIEW.—^The board of directors or 
special governing committee of an organization receiving 
a grant under this subsection shall meet at least once 
in each calendar quarter to review the training and 
information program, and each such committee shall 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1195 
directly advise the governing board regarding the views 
and recommendations of the committee. 
"(B) REVIEW FOR GRANT RENEWAL.—If a nonprofit pri-
vate organization requests the renewal of a grant under 
this subsection, the board of directors or the special govern-
ing committee shall prepare and submit to the Commis-
sioner a written review of the training and information 
program conducted by the organization during the preced-
ing fiscal year. 
"(d) BRAILLE TRAINING PROGRAMS.— 
"(1) 
ESTABLISHMENT.—^The Commissioner 
shall 
make 
grants to, and enter into contracts with. States and public 
or nonprofit agencies and organizations, including institutions 
of higher education, to pay all or part of the cost of training 
in the use of braille for personnel providing vocational 
rehabilitation services or educational services to youth and 
adults who are blind. 
"(2) PROJECTS.—Such grants shall be used for the establish-
ment or continuation of projects that may provide— 
"(A) development of braille training materials; 
"(B) in-service or pre-service training in the use of 
braille, the importance of braille literacy, and methods 
of teaching braille to youth and adults who are blind; 
and 
"(C) activities to promote knowledge and use of braille 
and nonvisual access technology for blind youth and adults 
through a program of training, demonstration, and evalua-
tion conducted with leadership of experienced blind individ-
uals, including the use of comprehensive, state-of-the-art 
technology. 
"(3) APPLICATION.—^To be eligible to receive a grant, or 
enter into a contract, under paragraph (1), an agency or 
organization shall submit an application to the Commissioner 
at such time, in such manner, and containing such information 
as the Commissioner may require. 
"(e) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for each of the fiscal years 1999 through 2003. 
"SEC. 304. MIGRANT AND SEASONAL FARMWORKERS. 
29USC774. 
"(a) GRANTS.— 
"(1) AUTHORITY.—The Commissioner, subject to the provi-
sions of section 306, may make grants to eligible entities to 
pay up to 90 percent of the cost of projects or demonstration 
programs for the provision of vocational rehabilitation services 
to individuals with disabilities who are migrant or seasonal 
farmworkers, as determined in accordance with rules prescribed 
by the Secretary of Labor, and to the family members who 
are residing with such individuals (whether or not such family 
members are individuals with disabilities). 
"(2) ELIGIBLE ENTITIES.—To be eligible to receive a grant 
under paragraph (1), an entity shall be— 
"(A) a State designated agency; 
"(B) a nonprofit agency working in collaboration with 
a State agency described in subparagraph (A); or 
"(C) a local agency working in collaboration with a 
State agency described in subparagraph (A). 
112 STAT. 1196 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(3) MAINTENANCE AND TRANSPORTATION.— 
"(A) IN GENERAL.—^Amounts provided under a grant 
under this section may be used to provide for the mainte-
nance of and transportation for individuals and family 
members described in paragraph (1) as necessary for the 
rehabilitation of such individuals. 
"(B) REQUIREMENT.—Maintenance payments 
under 
this paragraph shall be provided in a manner consistent 
with any maintenance payments provided to other individ-
uals with disabilities in the State under this Act. 
"(4) ASSURANCE OF COOPERATION.—TO be eligible to receive 
a grant under this section an entity shall provide assurances 
(satisfactory to the Commissioner) that in the provision of serv-
ices under the grant there will be appropriate cooperation 
between the grantee and other public or nonprofit agencies 
and organizations having special skills and experience in the 
provision of services to migrant or seasonal farmworkers or 
their families. 
"(5) COORDINATION WITH OTHER PROGRAMS.—^The Commis-
sioner shall administer this section in coordination with other 
programs serving migrant and seasonal farmworkers, including 
programs under title I of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6301 et seq.), section 330 of 
the Public Health Service Act (42 U.S.C. 254b), the Migrant 
and Seasonal Agricultural Worker Protection Act (29 U.S.C. 
1801 et seq.), and the Workforce Investment Act of 1998. 
"(b) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section, for each of the fiscal years 1999 through 2003. 
29 use 775. 
"SEC. 305. RECREATIONAL PROGRAMS. 
"(a) GRANTS.— 
"(1) AUTHORITY.— 
"(A) IN GENERAL.—The Commissioner, subject to the 
provisions of section 306, shall make grants to States, 
public agencies, and nonprofit private organizations to pay 
the Federal share of the cost of the establishment and 
operation of recreation programs to provide individuals 
with disabilities with recreational activities and related 
experiences to aid in the employment, mobility, socializa-
tion, independence, and community integration of such 
individuals. 
"(B) RECREATION PROGRAMS.—^The recreation programs 
that may be funded using assistance provided under a 
grant under this section may include vocational skills 
development, leisure education, leisure networking, leisure 
resource development, physical education and sports, scout-
ing and camping, 4-H activities, construction of facilities 
for aquatic rehabilitation therapy, music, dancing, handi-
crafts, art, and homemaking. When possible and appro-
priate, such programs and activities should be provided 
in settings with peers who are not individuals with disabil-
ities. 
"(C) DESIGN OF PROGRAM.—Programs and activities 
carried out under this section shall be designed to dem-
onstrate ways in which such programs assist in maximizing 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1197 
the independence and integration of individuals with 
disabilities. 
"(2) MAXIMUM TERM OF GRANT.—^A grant under this section 
shall be made for a period of not more than 3 years. 
"(3) AVAILABILITY OF NONGRANT RESOURCES.— 
"(A) IN GENERAL.—^A grant may not be made to an 
applicant under this section unless the applicant provides 
assurances that, with respect to costs of the recreation 
program to be carried out under the grant, the applicant, 
to the maximum extent practicable, will make available 
non-Federal resources (in cash or in-kind) to pay the non-
Federal share of such costs. 
"(B) FEDERAL SHARE.—The Federal share of the costs 
of the recreation programs carried out under this section 
shall be— 
"(i) with respect to the first year in which assist-
ance is provided under a grant under this section, 
100 percent; 
"(ii) with respect to the second year in which assist-
ance is provided under a grant under this section, 
75 percent; and 
"(iii) with respect to the third year in which assist-
ance is provided under a grant under this section, 
50 percent. 
"(4) APPLICATION.—^To be eligible to receive a grant under 
this section, a State, agency, or organization shall submit an 
application to the Commissioner at such time, in such manner, 
and containing such information as the Commissioner may 
require, including a description of— 
"(A) the manner in which the findings and results 
of the project to be funded under the grant, particularly 
information that facilitates the replication of the results 
of such projects, will be made generally available; and 
"(B) the manner in which the service program funded 
under the grant will be continued after Federal assistance 
ends. 
"(5) LEVEL OF SERVICES.—^Recreation programs 
funded 
under this section shall maintain, at a minimum, the same 
level of services over a 3-year project period. 
"(6) REPORTS BY GRANTEES.— 
"(A) REQUIREMENT.—^The Commissioner shall require 
that each recipient of a grant under this section annually 
prepare and submit to the Commissioner a report concern-
ing the results of the activities funded under the grant. 
"(B) LIMITATION.—The Commissioner may not make 
financial assistance available to a grant recipient for a 
subsequent year until the Commissioner has received and 
evaluated the annual report of the recipient under subpara-
graph (A) for the current year. 
"(b) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized 
to be appropriated to carry out this section, such sums as may 
be necessary for each of the fiscal years 1999 through 2003. 
"SEC. 306. MEASURING OF PROJECT OUTCOMES AND PERFORMANCE. 29 USC 776. 
"The Commissioner may require that recipients of grants under 
this title submit information, including data, as determined by 
the Commissioner to be necessary to measure project outcomes 
112 STAT. 1198 
PUBLIC LAW 105-220—AUG. 7, 1998 
and performance, including any data needed to comply with the 
Government Performance and Results Act.". 
SEC. 407. NATIONAL COUNCIL ON DISABILITY. 
Title IV of the Rehabilitation Act of 1973 (29 U.S.C. 780 et 
seq.) is amended to read as follows: 
"TITLE IV—NATIONAL COUNCIL ON DISABILITY 
"ESTABLISHMENT OF NATIONAL COUNCIL ON DISABILITY 
President. 
"SEC. 400. (a)(1)(A) There is established within the Federal 
29 use 780. 
Government a National Council on Disability (hereinafter in this 
title referred to as the 'National Council'), which shall be composed 
of fifteen members appointed by the President, by and with the 
advice and consent of the Senate. 
"(B) The President shall select members of the National Council 
after soliciting recommendations from representatives of— 
"(i) orgEinizations representing a broad range of individuals 
with disabilities; and 
"(ii) organizations interested in individuals with disabil-
ities. 
"(C) The members of the National Council shall be individuals 
with disabilities, parents or guardians of individuals with disabil-
ities, or other individuals who have substantial knowledge or experi-
ence relating to disability policy or programs. The members of 
the National Council shall be appointed so as to be representative 
of individuals with disabilities, national organizations concerned 
with individuals with disabilities, providers and administrators of 
services to individuals with disabilities, individuals engaged in 
conducting medical or scientific research relating to individuals 
with disabilities, business concerns, and labor organizations. A 
majority of the members of the National Council shall be individuals 
with disabilities. The members of the National Council shall be 
broadly representative of minority and other individuals and groups. 
"(2) The purpose of the National Council is to promote policies, 
programs, practices, and procedures that— 
"(A) guarantee equal opportunity for all individuals with 
disabilities, regardless of the nature or severity of the disability; 
and 
"(B) empower individuals with disabilities to achieve eco-
nomic self-sufficiency, independent living, and inclusion and 
integration into all aspects of society. 
"(b)(1) Each member of the National Council shall serve for 
a term of 3 years, except that the terms of service of the members 
initially appointed after the date of enactment of the Rehabilitation, 
Comprehensive Services, and Developmental Disabilities Amend-
ments of 1978 shall be (as specified by the President) for such 
fewer number of years as will provide for the expiration of terms 
on a staggered basis. 
"(2)(A) No member of the National Council may serve more 
than two consecutive full terms beginning on the date of commence-
ment of the first full term on the Council. Members may serve 
after the expiration of their terms until their successors have taken 
office. 
"(B) As used in this paragraph, the term 'full term' means 
a term of 3 years. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1199 
"(3) Any member appointed to fill a vacancy occurring before 
the expiration of the term for which such member's predecessor 
w£is appointed shall be appointed only for the remainder of such 
term. 
"(c) The President shall designate the Chairperson from among President, 
the members appointed to the National Council. The National Coun-
cil shall meet at the call of the Chairperson, but not less often 
than four times each year. 
"(d) Eight members of the National Council shall constitute 
a quorum and any vacancy in the National Council shall not affect 
its power to function. 
"DUTIES OF NATIONAL COUNCIL 
"SEC. 401. (a) The National Council shall— 
29 USC 78L 
"(1) provide advice to the Director with respect to the 
policies and conduct of the National Institute on Disability 
and Rehabilitation Research, including ways to improve 
research concerning individuals with disabilities and the meth-
ods of collecting and disseminating findings of such research; 
"(2) provide advice to the Commissioner with respect to 
the policies of and conduct of the Rehabilitation Services 
Administration; 
"(3) advise the President, the Congress, the Commissioner, 
the appropriate Assistant Secretary of the Department of Edu-
cation, and the Director of the National Institute on Disability 
and Rehabilitation Research on the development of the pro-
grams to be carried out under this Act; 
"(4) provide advice regarding priorities for the activities 
of the Interagency Disability Coordinating Council and review 
the recommendations of such Council for legislative and 
administrative changes to ensure that such recommendations 
are consistent with the purposes of the Council to promote 
the full integration, independence, and productivity of individ-
uals with disabilities; 
"(5) review and evaluate on a continuing basis— 
"(A) policies, programs, practices, and procedures 
concerning individuals with disabilities conducted 
or 
assisted by Federal departments and agencies, including 
programs established or assisted under this Act or under 
the Developmental Disabilities Assistance and Bill of 
Rights Act; and 
"(B) all statutes £ind regulations pertaining to Federal 
programs which assist such individuals with disabilities; 
in order to assess the efiectiveness of such policies, programs, 
practices, procedures, statutes, and regulations in meeting the 
needs of individuals with disabilities; 
"(6) assess the extent to which such policies, programs, 
practices, and procedures facilitate or impede the promotion 
of the policies set forth in subparagraphs (A) and (B) of section 
400(a)(2); 
"(7) gather information about the implementation, effective-
ness, and impact of the Americans with Disabilities Act of 
1990 (42 U.S.C. 12101 et seq.); 
"(8) make recommendations to the President, the Congress, 
the Secretary, the Director of the National Institute on Disabil-
ity and Rehabilitation Research, and other officials of Federal 
112 STAT. 1200 
PUBLIC LAW 105-220—AUG. 7, 1998 
agencies or other Federal entities, respecting ways to better 
promote the poUcies set forth in section 400(a)(2); 
"(9) provide to the Congress on a continuing basis advice, 
recommendations, legislative proposals, and any additional 
information that the National Council or the Congress deems 
appropriate; and 
"(10) review and evaluate on a continuing basis new and 
emerging disability policy issues affecting individuals with 
disabilities at the Federal, State, and local levels, and in the 
private sector, including the need for and coordination of adult 
services, access to personal assistance services, school reform 
efforts and the impact of such efforts on individuals with 
disabilities, access to health care, and policies that operate 
as disincentives for the individuals to seek and retain employ-
ment. 
Deadline. 
"(b)(1) Not later than October 31, 1998, and annually thereafter. 
Reports. 
the National Council shall prepare and submit to the President 
and the appropriate committees of the Congress a report entitled 
'National Disability Policy: A Progress Report'. 
"(2) The report shall assess the status of the Nation in achieving 
the policies set forth in section 400(a)(2), with particular focus 
on the new and emerging issues impacting on the lives of individuals 
with disabilities. The report shall present, as appropriate, available 
data on health, housing, employment, insurance, transportation, 
recreation, training, prevention, early intervention, and education. 
The report shall include recommendations for policy change. 
"(3) In determining the issues to focus on and the findings, 
conclusions, and recommendations to include in the report, the 
National Council shall seek input from the public, particularly 
individuals with disabilities, representatives of orgEinizations rep-
resenting a broad range of individuals with disabilities, and 
organizations and agencies interested in individuals with disabil-
ities. 
"COMPENSATION OF NATIONAL COUNCIL MEMBERS 
29 use 782. 
"SEC. 402. (a) Members of the National Council shall be entitled 
to receive compensation at a rate equal to the rate of pay for 
level 4 of the Senior Executive Service Schedule under section 
5382 of title 5, United States Code, including travel time, for 
each day they are engaged in the performance of their duties 
as members of the National Council. 
"(b) Members of the National Council who are full-time officers 
or employees of the United States shall receive no additional pay 
on account of their service on the National Council except for 
compensation for travel expenses as provided under subsection (c) 
of this section. 
"(c) While away from their homes or regular places of business 
in the performance of services for the National Council, members 
of the National Council shall be allowed travel expenses, including 
per diem in lieu of subsistence, in the same manner as persons 
employed intermittently in the Government service are allowed 
expenses under section 5703 of title 5, United States Code. 
"STAFF OF NATIONAL COUNCIL 
29 use 783. 
"SEC. 403. (a)(1) The Chairperson of the National Council may 
appoint and remove, without regard to the provisions of title 5, 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1201 
United States Code, governing appointments, the provisions of chap-
ter 75 of such title (relating to adverse actions), the provisions 
of chapter 77 of such title (relating to appeals), or the provisions 
of chapter 51 and subchapter III of chapter 53 of such title (relating 
to classification and General Schedule pay rates), an Executive 
Director to assist the National Council to carry out its duties. 
The Executive Director shall be appointed from among individuals 
who are experienced in the planning or operation of programs 
for individuals with disabilities. 
"(2) The Executive Director is authorized to hire technical and 
professional employees to assist the National Council to carry out 
its duties. 
"(b)(1) The National Council may procure temporary and inter-
mittent services to the same extent as is authorized by section 
3109(b) of title 5, United States Code (but at rates for individuals 
not to exceed the daily equivalent of the rate of pay for level 
4 of the Senior Executive Service Schedule under section 5382 
of title 5, United States Code). 
"(2) The National Council may— 
"(A) accept voluntary and uncompensated services, notwith-
standing the provisions of section 1342 of title 31, United 
States Code; 
"(B) in the name of the Council, solicit, accept, employ, 
and dispose of, in furtherance of this Act, any money or prop-
erty, real or personal, or mixed, tangible or nontangible, 
received by gift, devise, bequest, or otherwise; and 
"(C) enter into contracts and cooperative agreements with 
Federal and State agencies, private firms, institutions, and 
individuals for the conduct of research and surveys, preparation 
of reports and other activities necessary to the discharge of 
the Council's duties and responsibilities. 
"(3) Not more than 10 per centum of the total amounts available 
to the National Council in each fiscal year may be used for official 
representation and reception. 
"(c) The Administrator of General Services shall provide to 
the National Council on a reimbursable basis such administrative 
support services as the Council may request. 
"(d)(1) It shall be the duty of the Secretary of the Treasury 
to invest such portion of the amounts made available under sub-
section (a)(2)(B) as is not, in the Secretary's judgment, required 
to meet current withdrawals. Such investments may be made only 
in interest-bearing obligations of the United States or in obligations 
guaranteed as to both principal and interest by the United States. 
"(2) The amounts described in paragraph (1), and the interest 
on, and the proceeds from the sale or redemption of, the obligations 
described in paragraph (1) shall be available to the National Council 
to carry out this title. 
"ADMINISTRATIVE POWERS OF NATIONAL COUNCIL 
"SEC. 404. (a) The National Council may prescribe such bylaws 29 USC 784. 
and rules as may be necessary to carry out its duties under this 
title. 
"(b) The National Council may hold such hearings, sit and 
act at such times and places, take such testimony, and receive 
such evidence as it deems advisable. 
112 STAT. 1202 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(c) The National Council may appoint advisory committees 
to assist the National Council in carrying out its duties. The mem-
bers thereof shall serve without compensation. 
"(d) The National Council may use the United States mails 
in the same manner and upon the same conditions as other depart-
ments and agencies of the United States. 
"(e) The National Council may use, with the consent of the 
agencies represented on the Interagency Disability Coordinating 
Council, and as authorized in title V, such services, personnel, 
information, and facilities as may be needed to carry out its duties 
under this title, with or without reimbursement to such agencies. 
"AUTHORIZATION OF APPROPRIATIONS 
29 use 785. 
"SEC. 405. There are authorized to be appropriated to carry 
out this title such sums as may be necessary for each of the 
fiscal years 1999 through 2003.". 
SEC. 408. RIGHTS AND ADVOCACY. 
(a) 
CONFORMING AMENDMENTS TO RIGHTS AND ADVOCACY 
PROVISIONS.— 
(1) 
EMPLOYMENT.—Section 
501 (29 
U.S.C. 
791) 
is 
amended— 
(A) in the third sentence of subsection (a), by striking 
"President's Committees on Employment of the Handi-
capped" and inserting "President's Committees on Employ-
ment of People With Disabilities"; and 
(B) in subsection (e), by striking "individualized written 
rehabilitation program" and inserting "individualized plan 
for employment". 
(2) 
ACCESS 
BOARD.—Section 
502 
(29 
U.S.C. 
792) 
is 
amended— 
(A) in subsection (a)(1), in the sentence following 
subparagraph (B), by striking "Chairperson" and inserting 
"chairperson"; 
(B) in subsection (b)— 
(i) in paragraph (2), by striking "guidelines" and 
inserting "information"; 
(ii) by striking paragraph (3) and inserting the 
following: 
"(3) establish and maintain— 
"(A) minimum guidelines and requirements for the 
standards issued pursuant to the Act commonly known 
as the Architectural Barriers Act of 1968; 
"(B) minimum guidelines and requirements for the 
standards issued pursuant to titles II and III of the Ameri-
cans with Disabilities Act of 1990; 
"(C) guidelines for accessibility of telecommunications 
equipment and customer premises equipment under section 
255 of the Telecommunications Act of 1934 (47 U.S.C. 
255); and 
"(D) standards for accessible electronic and information 
technology under section 508;"; 
(iii) in paragraph (9), by striking "; and" and insert-
ing a semicolon; 
(iv) in paragraph (10), by striking the period and 
inserting "; and"; and 
(v) by adding at the end the following: 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1203 
"(11) carry out the responsibilities specified for the Access 
Board in section 508."; 
(C) in subsection (d)(1), by striking "procedures under 
this section" and inserting "procedures under this sub-
section"; 
(D) in subsection (g)(2), by striking "Committee on 
Education and Labor" and inserting "Committee on Edu-
cation and the Workforce"; 
(E) in subsection (h)(2)(A), by striking "paragraphs (5) 
and (7)" and inserting "paragraphs (2) and (4)"; and 
(F) in subsection (i), by striking "fiscal years 1993 
through 1997" and inserting "fiscal years 1999 through 
2003". 
(3) FEDERAL GRANTS AND CONTRACTS.—Section 504(a) (29 
U.S.C. 794(a)) is amended in the first sentence by striking 
"section 7(8)" and inserting "section 7(20)". 
(4) SECRETARIAL RESPONSIBILITIES.—Section 506(a) (29 
U.S.C. 794b(a)) is amended— 
(A) by striking the second sentence and inserting the 
following: "Any concurrence of the Access Board under 
paragraph (2) shall reflect its consideration of cost studies 
carried out by States."; and 
(B) in the second sentence of subsection (c), by striking 
"provided under this paragraph" and inserting "provided 
under this subsection". 
(b) 
ELECTRONIC AND INFORMATION TECHNOLOGY 
REGULA-
TIONS.—Section 508 (29 U.S.C. 794d) is amended to read as follows: 
"SEC. 508. ELECTRONIC AND INFORMATION TECHNOLOGY. 
"(a) 
REQUIREMENTS 
FOR 
FEDERAL 
DEPARTMENTS AND 
AGENCIES.— 
"(1) ACCESSIBILITY.— 
"(A) DEVELOPMENT, PROCUREMENT, MAINTENANCE, OR 
USE OF ELECTRONIC AND INFORMATION TECHNOLOGY.—^When 
developing, procuring, maintaining, or using electronic and 
information 
technology, each Federed 
department or 
agency, including the United States Postal Service, shall 
ensure, unless an undue burden would be imposed on the 
department or agency, that the electronic and information 
technology allows, regardless of the type of medium of 
the technology— 
"(i) individuals with disabilities who are Federal 
employees to have access to and use of information 
and data that is comparable to the access to and use 
of the information and data by Federal employees who 
are not individuals with disabilities; and 
"(ii) individuals with disabilities who are members 
of the public seeking information or services from a 
Federal department or agency to have access to and 
use of information and data that is comparable to 
the access to and use of the information and data 
by such members of the public who are not individuals 
with disabilities. 
"(B) ALTERNATIVE MEANS EFFORTS.—^When develop-
ment, procurement, maintenance, or use of electronic and 
information technology that meets the standards published 
by the Access Board under paragraph (2) would impose 
112 STAT. 1204 
PUBLIC LAW 105-220—AUG. 7, 1998 
Deadline. 
Publication. 
Deadlines. 
Regulations. 
an undue burden, the Federal department or agency shall 
provide individuals with disabilities covered by paragraph 
(1) with the information and data involved by an alter-
native means of access that allows the individual to use 
the information and data. 
"(2) 
ELECTRONIC AND INFORMATION TECHNOLOGY STAND-
ARDS.— 
"(A) IN GENERAL.—Not later than 18 months after the 
date of enactment of the Rehabilitation Act Amendments 
of 1998, the Architectural and Transportation Barriers 
Compliance Board (referred to in this section as the 'Access 
Board'), after consultation with the Secretary of Education, 
the Administrator of General Services, the Secretary of 
Commerce, the Chairman of the Federal Communications 
Commission, the Secretary of Defense, and the head of 
any other Federal department or agency that the Access 
Board determines to be appropriate, including consultation 
on relevant research findings, and after consultation with 
the electronic and information technology industry and 
appropriate public or nonprofit agencies or organizations, 
including organizations representing individuals 
with 
disabilities, shall issue and publish standards setting 
forth— 
"(i) for purposes of this section, a definition of 
electronic and information technology that is consistent 
with the definition of information technology specified 
in section 5002(3) of the Clinger-Cohen Act of 1996 
(40 U.S.C. 1401(3)); and 
"(ii) the technical and functional performance cri-
teria necessary to implement the requirements set 
forth in paragraph (1). 
"(B) REVIEW AND AMENDMENT.—The Access Board shall 
periodically review and, as appropriate, amend the stand-
ards required under subparagraph (A) to reflect techno-
logical advances or changes in electronic and information 
technology. 
"(3) INCORPORATION OF STANDARDS.—^Not later than 6 
months after the Access Board publishes the standards required 
under paragraph (2), the Federal Acquisition Regulatory Coun-
cil shall revise the Federal Acquisition Regulation and each 
Federal department or agency shall revise the Federal procure-
ment policies and directives under the control of the department 
or agency to incorporate those standards. Not later than 6 
months after the Access Board revises any standards required 
under paragraph (2), the Council shall revise the Federal 
Acquisition Regulation and each appropriate Federal depart-
ment or agency shall revise the procurement policies and direc-
tives, as necessary, to incorporate the revisions. 
"(4) ACQUISITION PLANNING.—In the event that a Federal 
department or agency determines that compliance with the 
standards issued by the Access Board under paragraph (2) 
relating to procurement imposes an undue burden, the docu-
mentation by the department or agency supporting the procure-
ment shall explain why compliance creates an undue burden. 
"(5) EXEMPTION FOR NATIONAL SECURITY SYSTEMS.—^This 
section shall not apply to national security systems, as that 
•^^'i*--. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1205 
term is defined in section 5142 of the Clinger-Cohen Act of 
1996 (40 U.S.C. 1452). 
"(6) CONSTRUCTION.— 
"(A) EQUIPMENT.—In a case in which the Federal 
Government provides access to the public to information 
or data through electronic and information technology, 
nothing in this section shall be construed to require a 
Federsd depsirtment or agency— 
"(i) to make equipment owned by the Federal 
Grovemment available for access and use by individuEds 
with disabilities covered by paragraph (1) at a location 
other than that where the electronic and information 
technology is provided to the public; or 
"(ii) to purchase equipment for access and use 
by individuals with disabilities covered by paragraph 
(1) at a location other than that where the electronic 
and information technology is provided to the public. 
"(B) SOFTWARE AND PERIPHERAL DEVICES.—Except as 
required to comply with stsmdards issued by the Access 
Board under paragraph (2), nothing in paragraph (1) 
requires the installation of specific accessibility-related soft-
ware or the attachment of a specific accessibility-related 
peripheral device at a workstation of a FedersQ employee 
who is not an individual with a disability. 
"(b) TECHNICAL ASSISTANCE.—^The Administrator of Greneral 
Services and the Access Board shall provide technical assistance 
to individuals and Federal departments and agencies concerning 
the requirements of this section. 
"(c) AGENCY EVALUATIONS.—Not later than 6 months after the Deadline, 
date of enactment of the Rehabilitation Act Amendments of 1998, Reports, 
the head of each Federal department or agency shall evaluate 
the extent to which the electronic and information technology of 
the department or agency is accessible to and usable by individuals 
with disabilities described in subsection (a)(1), compared to the 
access to and use of the technology by individuals described in 
such subsection who are not individuals with disabilities, and sub-
mit a report containing the evaluation to the Attorney General. 
"(d) REPORTS.— 
"(1) INTERIM REPORT.—^Not later than 18 months after the Deadlines, 
date of enactment of the Rehabilitation Act Amendments of 
1998, the Attorney General shall prepare and submit to the 
President a report containing information on and recommenda-
tions regarding the extent to which the electronic and informa-
tion technology of the Federal Grovernment is accessible to 
and usable by individuals with disabilities described in sub-
section (a)(1). 
"(2) BIENNIAL REPORTS.—^Not later than 3 years after the 
date of enactment of the Rehabilitation Act Amendments of 
1998, and every 2 years thereafter, the Attorney General shall 
prepare and submit to the President and Congress a report 
containing information on and recommendations regarding the 
state of Federal department and agency compliance with the 
requirements of this section, including actions regarding 
individual complaints under subsection (f). 
"(e) COOPERATION.—^Each head of a Federal department or 
agency (including the Access Board, the Equal Emplo3nnent Oppor-
tunity Commission, and the General Services Administration) shall 
59-194 O - gs - 11: QL 3 Part 2 
112 STAT. 1206 
PUBLIC LAW 105-220—AUG. 7, 1998 
provide to the Attorney General such information as the Attorney 
General determines is necessary to conduct the evaluations under 
subsection (c) and prepare the reports under subsection (d). 
"(f) ENFORCEMENT.— 
"(1) GENERAL.— 
Effective date. 
"(A) COMPLAINTS.—^Effective 2 years after the date of 
enactment of the Rehabilitation Act Amendments of 1998, 
any individual with a disability may file a complaint alleg-
ing that a Federal department or agency fails to comp^ 
with subsection (aXl) in providing electronic and informa-
tion technology, 
"(B) APPLICATION.—This subsection shall apply only 
to electronic and information technology that is procured 
by a Federal department or agency not less than 2 years 
after the date of enactment of the Rehabilitation Act 
Amendments of 1998. 
"(2) ADMINISTRATIVE COMPLAINTS.—Complaints filed under 
paragraph (1) shall be filed with the Federal department or 
agency alleged to be in noncompliance. The Federal department 
or agency receiving the complaint shall apply the complaint 
procedures established to implement section 504 for resolving 
allegations of discrimination in a federally conducted program 
or activity. 
"(3) CIVIL ACTIONS.—^The remedies, procedures, and rights 
set forth in sections 505(a)(2) and 505(b) shall be the remedies, 
procedures, and rights available to any individual with a 
disability filing a complaint under paragraph (1). 
"(g) APPLICATION TO OTHER FEDERAL LAWS.—This section shall 
not be construed to limit any right, remedy, or procedure otherwise 
available under any provision of Federal law (including sections 
501 through 505) that provides greater or equal protection for 
the rights of individuals with disabilities than this section.". 
(c) PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.—Section 
509 (29 U.S.C. 794e) is amended to read as follows: 
"SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS. 
"(a) PURPOSE AND CONSTRUCTION.— 
"(1) PURPOSE.—^The purpose of this section is to support 
a system in each State to protect the legal and human rights 
of individuals with disabilities who— 
"(A) need services that are beyond the scope of services 
authorized to be provided by the client assistance program 
under section 112; and 
"(B)(i) are ineligible for protection and advocacy pro-
grams under part C of the Developmental Disabilities 
Assistance and Bill of Rights Act (42 U.S.C. 6041 et seq.) 
because the individuals do not have a developmental 
disability, as defined in section 102 of such Act (42 U.S.C. 
6002); and 
"(ii) are ineligible for services under the Protection 
and Advocacy for Mentally 111 Individuals Act of 1986 (42 
U.S.C. 10801 et seq.) because the individuals are not 
individuals with mental illness, as defined in section 102 
of such Act (42 U.S.C. 10802). 
"(2) CONSTRUCTION.—^This section shall not be construed 
to require the provision of protection and advocacy services 
that can be provided under the Technology-Related Assistance 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1207 
for Individuals With Disabilities Act of 1988 (42 U.S.C. 2201 
et seq.). 
"(b) APPROPRIATIONS LESS THAN $5,500,000.—For any fiscal 
year in which the amount appropriated to carry out this section 
is less than $5,500,000, the Commissioner may make grants from 
such amount to eligible systems within States to plan for, develop 
outreach strategies for, and carry out protection and advocacy pro-
grams authorized under this section for individuals with disabilities 
who meet the requirements of subparagraphs (A) and (B) of sub-
section (a)(1). 
"(c) APPROPRIATIONS OF $5,500,000 OR MORE.— 
"(1) RESERVATIONS.— 
"(A) TECHNICAL ASSISTANCE.—^For any fiscal year in 
which the amount appropriated to carry out this section 
equals or exceeds $5,500,000, the Commissioner shall set 
aside not less than 1.8 percent and not more than 2.2 
percent of the amount to provide training and technical 
assistance to the systems established under this section. 
"(B) GRANT FOR THE ELIGIBLE SYSTEM SERVING THE 
AMERICAN INDIAN CONSORTIUM.—^For any fiscal year in 
which the amount appropriated to carry out this section 
equals or exceeds $10,500,000, the Commissioner shall 
reserve a portion, and use the portion to make a grant 
for the eligible system serving the American Indian consor-
tium. The Commission shall make the grant in an amount 
of not less than $50,000 for the fiscal year, 
"(2) ALLOTMENTS.—^For any such fiscal year, after the res-
ervations required by paragraph (1) have been made, the 
Commissioner shall make allotments from the remainder of 
such amount in accordance with paragraph (3) to eligible sys-
tems within States to enable such systems to cany out protec-
tion and advocacy programs authorized under this section for 
individuals referred to in subsection (b). 
"(3) SYSTEMS WITHIN STATES.— 
"(A) 
POPULATION 
BASIS.—Except 
as 
provided 
in 
subparagraph (B), from such remainder for each such fiscal 
year, the Commissioner shall make an allotment to the 
eligible system within a State of an amount bearing the 
same ratio to such remainder as the population of the 
State bears to the population of sdl States. 
"(B) MINIMUMS.—Subject to the availability of appro-
priations to carry out this section, and except as provided 
in paragraph (4), the allotment to any system under 
subparagraph (A) shall be not less than $100,000 or Vz 
of 1 percent of the remainder for the fiscal year for which 
the allotment is made, whichever is greater, and the allot-
ment to any system under this section for any fiscal year 
that is less than $100,000 or Vs of 1 percent of such 
remainder shall be increased to the greater of the two 
amounts. 
"(4) SYSTEMS WITHIN OTHER JURISDICTIONS.— 
"(A) IN GENERAL.—^For the purposes of paragraph 
(3)(B), Guam, American Samoa, the United States Virgin 
Islands, and the Commonwealth of the Northern Meiriana 
Islands shall not be considered to be States. 
"(B) ALLOTMENT.—^The eligible system within a juris-
diction described in subparagraph (A) shall be allotted 
112 STAT. 1208 
PUBLIC LAW 105-220—AUG. 7, 1998 
under paragraph (3)(A) not less than $50,000 for the fiscal 
year for which the allotment is made. 
(5) ADJUSTMENT FOR INFLATION.—For any fiscal year, 
beginning in fiscal year 1999, in which the total amount appro-
priated to carry out this section exceeds the total amount 
appropriated to carry out this section for the preceding fisced 
year, the Commissioner shall increase each oi the minimum 
grants or allotments under paragraphs (1)(B), (3)(B), and (4)(B) 
by a percentage that shall not exceed the percentage increase 
in the total amount appropriated to carry out this section 
between the preceding fiscal year and the fiscal year involved. 
"(d) PROPORTIONAL REDUCTION.—^To provide minimum allot-
ments to systems within States (as increased under subsection 
(c)(5)) under subsection (cX3)(B), or to provide minimum allotments 
to systems within States (as increased under subsection (c)(5)) 
under subsection (c)(4)(B), the Commissioner shall proportionately 
reduce the allotments of the remsdning systems within States under 
subsection (cX3), with such adjustments as may be necessary to 
prevent the allotment of any such remaining system within a State 
from being reduced to less than the minimum allotment for a 
system within a State (as increased under subsection (c)(5)) under 
subsection (cX3XB), or the minimum allotment for a State (as 
increased under subsection (c)(5)) under subsection (cX4)(B), as 
appropriate. 
"(e) REALLOTMENT.—Whenever the Commissioner determines 
that any amount of an allotment to a system within a State for 
any fiscal year described in subsection (cXl) will not be expended 
by such system in carrying out the provisions of this section, the 
Commissioner shall maJce such amount available for carrying out 
the provisions of this section to one or more of the systems that 
the Commissioner determines will be able to use additional amounts 
during such year for carrying out such provisions. Any amount 
made available to a system for any fiscal year pursuant to the 
preceding sentence shall, for the purposes of this section, be 
regarded as an increase in the allotment of the system (as deter-
mined under the preceding provisions of this section) for such 
year. 
"(f) APPLICATION.—^In order to receive assistance under this 
section, an eligible system shall submit an application to the 
Commissioner, at such time, in such form and manner, and contain-
ing such information and assurances as the Commissioner deter-
mines necessgiry to meet the requirements of this section, including 
assurances that the eligible system will— 
"(1) have in effect a system to protect and advocate the 
rights of individuals with disabilities; 
"(2) have the same general authorities, including access 
to records and program income, as are set forth in part C 
of the Development^ Disabilities Assistance and Bill of Rights 
Act (42 U.S.C. 6041 et seq.); 
"(3) have the authority to pursue legal, administrative, 
and other appropriate remedies or approaches to ensure the 
protection of, and advocacy for, the rights of such individuals 
within the State or the American Indian consortium who are 
individuals described in subsection (a)(1); 
"(4) provide information on and make referrals to programs 
and services addressing the needs of individuals with disabil-
ities in the State or the American Indian consortium; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1209 
"(5) develop a statement of objectives and priorities on 
an annual basis, £ind provide to the public, including individusds 
with disabilities and, as appropriate, the individuals' represent-
atives, an opportunity to comment on the objectives and prior-
ities established by, and activities of, the system including— 
"(A) the objectives and priorities for the activities of 
the system for each year and the rationale for the establish-
ment of such objectives and priorities; and 
"(B) the coordination of programs provided through 
the system under this section with the advocacy programs 
of the client assistance program under section 112, the 
State long-term care ombudsman program established 
under the Older Americans Act of 1965 (42 U.S.C. 3001 
et seq.), the Developmental Disabilities Assistance and Bill 
of Rights Act (42 U.S.C. 6000 et seq.), and the Protection 
and Advocacy for Mentally 111 Individuals Act of 1986 (42 
U.S.C. 10801 et seq.); 
"(6) establish a grievance procedure for clients or prospec- Procedures, 
tive clients of the system to ensure that individuals with disabil-
ities are Eifforded equal opportunity to access the services of 
the system; and 
"(7) provide assurances to the Commissioner that funds 
made available under this section will be used to supplement 
and not supplant the non-Federal funds that would otherwise 
be made available for the purpose for which Federal funds 
are provided. 
"(g) CARRYOVER AND DIRECT PAYMENT.— 
"(1) DIRECT PAYMENT.—^Notwithstanding any other provi-
sion of law, the Commissioner shall pay directly to any system 
that complies with the provisions of this section, the amount 
of the allotment of the State or the grant for the eligible 
system that serves the American Indian consortium involved 
under this section, unless the State or American Indisui consor-
tium provides otherwise. 
"(2) CARRYOVER.—Any amount paid to an eligible system 
that serves a State or American Indian consortium for a fiscal 
year that remedns unobligated at the end of such year shall 
remain available to such system that serves the State or Amer-
ican Indian consortium for obligation during the next fiscal 
year for the purposes for which such amount was paid. 
"(h) LIMITATION ON DISCLOSURE REQUIREMENTS.—For purposes 
of any audit, report, or evaluation of the performance of the program 
established under this section, the Commissioner shall not require 
such a program to disclose the identity of, or any other personally 
identifiable information related to, any individual requesting assist-
ance under such program. 
"(i) ADMINISTRATIVE COST.—^In any State in which an eligible 
system is located within a State agency, a State may use a portion 
of any allotment under subsection (c) for the cost of the administra-
tion of the system required by this section. Such portion may 
not exceed 5 percent of the allotment. 
"(j) 
DELEGATION.—^The 
Commissioner 
may 
delegate 
the 
administration of this program to the Commissioner of the Adminis-
tration on Developmental Disabilities within the Department of 
Health and Human Services. 
"(k) REPORT.—^The Commissioner shall annually prepare and 
submit to the Committee on Education and the Workforce of the 
112 STAT. 1210 
PUBLIC LAW 105-220—AUG. 7, 1998 
Employment 
Opportunities for 
Individuals With 
Disabilities Act. 
House of Representatives and the Committee on Labor and Human 
Resources of the Senate a report describing the types of services 
and activities being undertaken by programs funded under this 
section, the total number of individuals served under this section, 
the tjrpes of disabilities represented by such individuals, and the 
tjrpes of issues being addressed on behafr of such individuals. 
"(1) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for each of the fiscal years 1999 through 2003. 
"(m) DEFINITIONS.—^As used in this section: 
"(1) EUGIBLE SYSTEM.—The term 'eligible system' means 
a protection and advocacy system that is established under 
part C of the Developmental Disabilities Assistance and Bill 
of Rights Act (42 U.S.C. 6041 et seq.) and that meets the 
requirements of subsection (f). 
"(2) AMERICAN INDIAN CONSORTIUM.—The term 'American 
Indian consortium' means a consortium established as described 
in section 142 of the Developmental Disabilities Assistance 
and Bill of Rights Act (42 U.S.C. 6042).". 
SEC. 409. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH 
DISABILITIES. 
Title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795 et 
seq.) is amended to read as follows: 
"TITLE VI—EMPLOYMENT OPPORTUNITIES FOR 
INDIVIDUALS WITH DISABILITIES 
"SHORT TITLE 
29 use 701 note. 
"SEC. 601. This title may be cited as the 'Employment 
Opportunities for Individuals With Disabilities Act'. 
"PART A—^PROJECTS WITH INDUSTRY 
"PROJECTS WITH INDUSTRY 
29 use 795. 
"SEC. 611. (a)(1) The purpose of this part is to create and 
expand job and career opportunities for individuals with disabilities 
in the competitive labor market by engaging the talent and leader-
ship of private industry as partners in the rehabilitation process, 
to identify competitive job and career opportunities and the skills 
needed to perform such jobs, to create practical job and career 
readiness and training programs, and to provide job placements 
and career advancement. 
"(2) The Commissioner, in consultation with the Secretary of 
Labor and with designated State units, may award grants to individ-
ual employers, community rehabilitation program providers, labor 
unions, trade associations, Indian tribes, tribsd organizations, des-
ignated State units, and other entities to establish jointly financed 
Projects With Industry to create and expand job and career 
opportunities for individuals with disabilities, which projects shall— 
"(A) provide for the establishment of business advisory 
councils, that shall— 
"(i) be comprised of— 
"(I) representatives of private industry, business 
concerns, and organized labor; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1211 
"(II) individuals with disabilities and representa-
tives of individuals with disabilities; and 
"(III) a representative of the appropriate des-
ignated State unit; 
"(ii) identify job and career availability within the 
community, consistent with the current and projected local 
employment opportunities identified by the local workforce 
investment board for the community 
under 
section 
118(b)(lXB) of the Workforce Investment Act of 1998; 
"(iii) identify the skills necessary to perform the jobs 
and careers identified; and 
"(iv) prescribe training programs designed to develop 
appropriate job and career skills, or job placement pro-
grams designed to identify and develop job placement and 
career advancement opportunities, for individuals with 
disabilities in fields related to the job and career availabil-
ity identified under clause (ii); 
"(B) provide job development, job placement, and career 
advancement services; 
"(C) to the extent appropriate, provide for— 
"(i) training in realistic work settings in order to pre-
pare individuals with disabilities for employment and 
career advancement in the competitive market; and 
"(ii) to the extent practicable, the modification of any 
facilities or equipment of the employer involved that are 
used primarily by individuals with disabilities, except that 
a project shall not be required to provide for such modifica-
tion if the modification is required as a reasonable 
accommodation under the Americans with Disabilities Act 
of 1990 (42 U.S.C. 12101 et seq.); and 
"(D) provide individuals with disabilities with such support 
services as may be required in order to maintain the employ-
ment and career advancement for which the individuals have 
received training under this part. 
"(3)(A) An individual shall be eligible for services described 
in paragraph (2) if the individual is determined to be an individual 
described in section 102(a)(1), and if the determination is made 
in a manner consistent with section 102(a). 
"(B) Such a determination may be made by the recipient of 
a grant under this part, to the extent the determination is appro-
priate and available and consistent with the requirements of section 
102(a). 
"(4) The Commissioner shall enter into an agreement with Contracts, 
the grant recipient regarding the establishment of the project. Any 
agreement shall be jointly developed by the Commissioner, the 
grant recipient, and, to the extent practicable, the appropriate 
designated State unit and the individuals with disabilities (or the 
individuals' representatives) involved. Such agreements 
shall 
specify the terms of training and employment under the project, 
provide for the pajrment by the Commissioner of part of the costs 
of the project (in accordance with subsection (c)), and contain the 
items required under subsection (b) and such other provisions as 
the parties to the agreement consider to be appropriate. 
"(5) Any agreement shall include a description of a plan to 
annually conduct a review and evaluation of the operation of the 
project in accordance with standards developed by the Commis-
sioner under subsection (d), and, in conducting the review and 
112 STAT. 1212 
PUBLIC LAW 105-220—AUG. 7, 1998 
Standards. 
Grants. 
evaluation, to collect data and infonnation of the type described 
in subparagraphs (A) through (C) of section lOKaXlO), as deter-
mined to be appropriate by the Commissioner. 
"(6) The Commissioner may include, as part of agreements 
with grant recipients, authority for such grant recipients to provide 
technical assistance to— 
"(A) assist employers in hiring individuals with disabilities; 
or 
"(B) improve or develop relationships between— 
"(i) grant recipients or prospective grant recipients; 
and 
"(ii) employers or organized labor; or 
"(C) assist employers in understanding and meeting the 
requirements of the Americans with Disabilities Act of 1990 
(42 U.S.C. 12101 et seq.) as the Act relates to employment 
of individuals with disabilities. 
"(b) No payment shsdl be made by the Commissioner under 
any agreement with a grant recipient entered into under subsection 
(a) unless such agreement— 
"(1) provides an assurance that individuals with disabilities 
placed under such agreement shall receive at least the 
applicable minimum wage; 
"(2) provides an assurance that any individual with a 
disability placed under this part shall be afforded terms and 
benefits of employment equal to terms and benefits that are 
afforded to the similarly situated nondisabled co-workers of 
the individual, and that such individuals with disabilities shall 
not be segregated from their co-workers; and 
"(3) provides an assurance that an annual evaluation report 
containing information specified under subsection (aX5) shall 
be submitted as determined to be appropriate by the Commis-
sioner. 
"(c) Payments under this section with respect to any project 
may not exceed 80 per centum of the costs of the project. 
"(dXl) The Commissioner shall develop standards for the 
evaluation described in subsection (a)(5) and snail review and revise 
the evaluation standards as necessary, subject to paragraph (2). 
"(2) In revising the standards for evaluation to be used by 
the grant recipients, the Commissioner shall obtain and consider 
recommendations 
for 
such 
standards 
from 
State 
vocational 
rehabilitation agencies, current and former grant recipients, profes-
sional organizations representing business and industry, organiza-
tions representing individuals with disabilities, individuals served 
by 
grant 
recipients, 
organizations 
representing 
conmiunity 
rehabilitation program providers, and labor orcanizations. 
"(e)(1)(A) A grant may be awarded under this section for a 
period of up to 5 years and such grant may be renewed. 
"(B) Grants under this section shall be awarded on a competi-
tive basis. To be eligible to receive such a grant, a prospective 
grant recipient shall submit an application to the Commissioner 
at such time, in such manner, and containing such information 
as the Commissioner may require. 
"(2) The Commissioner shall, to the extent practicable, ensure 
an equitable distribution of payments made under this section 
among the States. To the extent funds are available, the Commis-
sioner shall award grants under this section to new projects that 
will serve individuals vnth disabilities in States, portions of States, 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1213 
Indian tribes, or tribal organizations, that are currently unserved 
or underserved by projects. 
"(f)(1) The Commissioner shall, as necessary, develop and 
publish in the Federal Register, in final form, indicators of what 
constitutes minimum compliance consistent with the evaluation 
standards under subsection (d)(1). 
"(2) Each grant recipient shall report to the Commissioner Reports, 
at the end of each project year the extent to which the grant 
recipient is in compliance with the evEiluation standards. 
"(3)(A) The Commissioner shall annually conduct onsite compli-
ance reviews of at least 15 percent of grant recipients. The Commis-
sioner shall select grant recipients for review on a random basis. 
"(B) The Commissioner shall use the indicators in determining 
compliance with the evaluation standards. 
"(C) The Commissioner shall ensure that at least one member 
of a team conducting such a review shall be an individual who— 
"(i) is not an employee of the Federal Government; and 
"(ii) has experience or expertise in conducting projects. 
"(D) The Commissioner shall ensure that— 
"(i) a representative of the appropriate designated State 
unit shall participate in the review; and 
"(ii) no person shall participate in the review of a grant 
recipient if— 
"(I) the grEint recipient provides any direct financial 
benefit to the reviewer; or 
"(II) participation in the review would give the appear-
ance of a conflict of interest. 
"(4) In making a determination concerning any subsequent 
grant under this section, the Commissioner shall consider the past 
performance of the applicant, if applicable. The Commissioner shall 
use compliance indicators developed under this subsection that 
are consistent with program evaluation standards developed under 
subsection (d) to assess minimum project performance for purposes 
of making continuation awards in the third, fourth, and fifth years. 
"(5) Each fiscal year the Commissioner shall include in the Reports, 
annual report to Congress required by section 13 an analysis of 
the extent to which grant recipients have complied with the evalua-
tion standards. The Commissioner may identify individual grant 
recipients in the analysis. In addition, the Commissioner shall 
report the results of onsite compliance reviews, identifying individ-
ual grant recipients. 
"(g) The Commissioner may provide, directly or by way of 
grant, contract, or cooperative agreement, technical assistance to— 
"(1) entities conducting projects for the purpose of assisting 
such entities in— 
"(A) the improvement of or the development of relation-
ships with private industry or labor; or 
"(B) the improvement of relationships with State voca-
tional rehabilitation agencies; and 
"(2) entities planning the development of new projects. 
"(h) As used in this section: 
"(1) The term 'agreement' means an agreement described 
in subsection (a)(4). 
"(2) The term 'project' means a Project With Industry estab-
lished under subsection (a)(2). 
"(3) The term 'grant recipient' meems a recipient of a grant 
under subsection (a)(2). 
Federal Register, 
publication. 
112 STAT. 1214 
PUBLIC LAW 105-220—AUG. 7, 1998 
"AUTHORIZATION OF APPROPRIATIONS 
29 use 795a 
**SEC. 612. There are authorized to be appropriated to carry 
out the provisions of this part, such sums as may be necessary 
for each of fiscal years 1999 through 2003. 
**PART B—SUPPORTED EMPLOYMENT SERVICES FOR INDIVIDUALS 
WITH THE MOST SIGNIFICANT DISABILITIES 
"PURPOSE 
29 use 795g. 
"SEC. 621. It is the purpose of this part to authorize allotments, 
in addition to grants for vocational rehabilitation services under 
title I, to assist States in developing collaborative programs with 
appropriate entities to provide supported employment services for 
individuals with the most significant disabilities to enable such 
individuals to achieve the employment outcome of supported 
employment. 
"ALLOTMENTS 
29 use 795h. 
"SEC. 622. (a) IN GENERAL.— 
"(1) STATES.—^The Secretary shall allot the sums appro-
priated for each fiscal year to carry out this part among the 
States on the basis of relative population of each State, except 
t h a l ^ 
"(A) no State shall receive less than $250,000, or Va 
of 1 percent of the sums appropriated for the fiscal year 
for which the allotment is made, whichever is greater; 
and 
"(B) if the sums appropriated to carry out this part 
for the fiscal year exceed by $1,000,000 or more the sums 
appropriated to carry out this part in fiscal year 1992, 
no State shall receive less than $300,000, or Va of 1 percent 
of the sums appropriated for the fiscal year for which 
the allotment is made, whichever is greater. 
"(2) CERTAIN TERRITORIES.— 
"(A) IN GENERAL.—^For the purposes of this subsection, 
Guam, American Samoa, the United States Virgin Islands, 
and the Commonwealth of the Northern Mariana Islands 
shall not be considered to be States. 
"(B) 
ALLOTMENT.—^Each jurisdiction 
described 
in 
subparagraph (A) shall be allotted not less than one-eighth 
of one percent of the amounts appropriated for the fiscal 
year for which the allotment is made, 
"(b) REALLOTMENT.—^Whenever the Commissioner determines 
that any amount of an allotment to a State for any fiscal year 
will not be expended by such State for carrying out the provisions 
of this part, the Commissioner shall make such amount available 
for carrying out the provisions of this part to one or more of 
the States that the Commissioner determines will be able to use 
additional amounts during such year for carrying out such provi-
sions. Any amount made available to a State for any fiscal year 
pursuant to the preceding sentence shall, for the purposes of this 
section, be regarded as an increase in the allotment of the State 
(as determined under the preceding provisions of this section) for 
such year. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1215 
"AVAILABILITY OF SERVICES 
"SEC. 623. Funds provided under this part may be used to 29USC795i. 
provide supported employment services to individuals who are 
eligible under this part. Funds provided under this part, or title 
I, may not be used to provide extended services to individuals 
who are eligible under this part or title L 
"EUGIBIUTY 
"SEC. 624. An individual shall be eligible under this part to 29USC795j. 
receive supported employment services authorized under this Act 
if— 
"(1) the individual is eligible for vocational rehabilitation 
services; 
"(2) the individual is determined to be an individual with 
a most significant disability; and 
"(3) a comprehensive assessment of rehabilitation needs 
of the individual described in section 7(2)(B), including an 
evaluation of rehabilitation, career, and job needs, identifies 
supported employment as the appropriate emplojnnent outcome 
for the individual. 
"STATE PLAN 
"SEC. 625. (a) STATE PLAN SUPPLEMENTS.—TO be eligible for 29 use 795k. 
an sdlotment under this part, a State shall submit to the Commis-
sioner, as part of the State plan under section 101, a State plan 
supplement for providing supported employment services authorized 
under this Act to individuals who are eligible under this Act to 
receive the services. Each State shall make such annual revisions 
in the plan supplement as may be necessary. 
"(b) CONTENTS.—^Each such plan supplement shall— 
"(1) designate each designated State agency as the agency 
to administer the program assisted under this part; 
"(2) summarize the results of the comprehensive, statewide 
assessment conducted under section 101(a)(15XAXi), with 
respect to the rehabilitation needs of individuals with signifi-
cant disabilities and the need for supported emplojmtient serv-
ices, including needs related to coordination; 
"(3) describe the quality, scope, and extent of supported 
employnient services authorized under this Act to be provided 
to individuals who are eligible under this Act to receive the 
services and specify the goals and plans of the State with 
respect to the distribution of funds received under section 622; 
"(4) demonstrate evidence of the efforts of the designated 
State agency to identify and make arrangements (including 
entering into cooperative agreements) with other State agencies 
and other appropriate entities to assist in the provision of 
supported employment services; 
"(5) demonstrate evidence of the efforts of the designated 
State agency to identify and make arrangements (including 
entering into cooperative agreements) with other public or non-
profit agencies or organizations within the State, employers, 
natural supports, and other entities with respect to the provi-
sion of extended services; 
"(6) provide assurances that— 
112 STAT. 1216 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(A) funds made available under this part will only 
be used to provide supported emplo3nnent services author-
ized under this Act to individuals who are eligible under 
this pgirt to receive the services; 
*(B) the comprehensive assessments of individuals with 
significant disabilities conducted under section 102(b)(1) 
and funded under title I will include consideration of sup-
ported employment as an appropriate employment outcome; 
"(C) an individualized plan for employment, as required 
by section 102, will be developed and updated using funds 
under title I in order to— 
"(i) specify the supported employment services to 
be provided; 
"(ii) specify the expected extended services needed; 
and 
"(iii) identify the source of extended services, which 
may include natural supports, or to the extent that 
it is not possible to identify the source of extended 
services at the time the individualized plan for employ-
ment is developed, a statement describing the basis 
for concluding that there is a reasonable expectation 
that such sources will become available; 
"(D) the State will use funds provided under this part 
only to supplement, and not suppleint, the funds provided 
under title I, in providing supported employment services 
specified in the individualized plan for employment; 
"(E) services provided under an individualized plan 
for employment will be coordinated with services provided 
under other individualized plans established under other 
Federal or State programs; 
"(F) to the extent jobs skills training is provided, the 
training will be provided on site; and 
"(G) supported emplo3nnent services will include place-
ment in an integrated setting for the maximum number 
of hours possible based on the unique strengths, resources, 
priorities, concerns, abilities, capabilities, interests, and 
informed choice of individuals with the most significant 
disabilities; 
"(7) provide assurances that the State agencies designated 
under paragraph (1) will expend not more than 5 percent of 
the allotment of the State under this part for administrative 
costs of carrying out this part; and 
"(8) contain such other information and be submitted in 
such manner as the Commissioner may require. 
"RESTRICTION 
29 use 795/. 
"SEC. 626. Each State agency designated under section 625(bXl) 
shall collect the information required by section lOl(aXlO) sepa-
rately for eligible individuals receiving supported employment serv-
ices under tlus part and for eligible individuals receiving supported 
employment services under title L 
"SAVINGS PROVISION 
29 u s e 795m. 
" S E C . 627. (a) SUPPORTED EMPLOYMENT SERVICES.—Nothing 
in this Act shall be construed to prohibit a State from providing 
supported employment services in accordance with the State plan 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1217 
submitted under section 101 by using funds made available through 
a State allotment under section 110. 
"(b) POSTEMPLOYMENT SERVICES.—Nothing in this part shall 
be construed 
to prohibit 
a 
State 
from 
providing 
discrete 
postemployment services in accordance with the State plan submit-
ted under section 101 by using funds made available through a 
State allotment under section 110 to an individual who is eligible 
under this part. 
"AUTHORIZATION OF APPROPRIATIONS 
"SEC. 628. There are authorized to be appropriated to carry 29USC795n. 
out this part such sums as may be necessary for each of fiscal 
years 1999 through 2003.". 
SEC. 410. INDEPENDENT LIVING SERVICES AND CENTERS FOR 
INDEPENDENT LIVING. 
Title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796 
et seq.) is amended to read as follows: 
*^ITLE 
VII—INDEPENDENT 
LIVING 
SERVICES AND CENTERS FOR INDE-
PENDENT LIVING 
"CHAPTER l—INDIVIDUALS WITH SIGNIFICANT 
DISABILITIES 
"PART A—GENERAL PROVISIONS 
"SEC. 701. PURPOSE. 
29IJSC 796. 
'The purpose of this chapter is to promote a philosophy of 
independent living, including a philosophy of consumer control, 
peer support, self-help, self-determination, equal access, and 
individual and system advocacy, in order to maximize the leader-
ship, empowerment, independence, £ind productivity of individuals 
with disabilities, and the integration and full inclusion of individ-
uals with disabilities into the mainstream of American society, 
by— 
"(1) providing financial assistance to States for providing, 
expanding, and improving the provision of independent living 
services; 
"(2) providing financial assistance to develop and support 
statewide networks of centers for independent living; and 
"(3) providing financial assistance to States for improving 
working 
relationships 
among 
State 
independent 
living 
rehabilitation service programs, centers for independent living. 
Statewide Independent Living Councils established under sec-
tion 705, State vocational rehabilitation programs receiving 
assistance under title I, State programs of supported employ-
ment services receiving assistance under part B of title VI, 
client assistance programs receiving assistance under section 
112, programs funded under other titles of this Act, programs 
funded under other Federal law, and programs funded through 
non-Federal sources. 
112 STAT. 1218 
PUBLIC LAW 105-220—AUG. 7, 1998 
29 use 796a. 
'*SEC. 702. DEFINITIONS. 
''As used in this chapter: 
"(1) CENTER FOR INDEPENDENT LIVING.—The term 'center 
for independent livingf* means a consumer-controlled, commu-
nity-based, cross-disability, nonresidential private nonprofit 
agency that— 
"(A) is designed and operated within a local community 
by individuals with disabilities; and 
"(B) provides an array of independent living services. 
"(2) CONSUMER CONTROL.—The term 'consumer control' 
means, with respect to a center for independent living, that 
the center vests power and authority in individuals with disabil-
ities. 
29 use 796b. 
'^EC. 703. EUGIBILITY FOR RECEIPT OF SERVICES. 
"Services may be provided under this chapter to any individual 
with a significant disability, as defined in section 7(21)(B). 
29 use 796c. 
•«EC. 704. STATE PLAN. 
"(a) IN GENERAL.— 
"(1) REQUIREMENT.—To be eligible to receive financial 
assistance under this chapter, a State shall submit to the 
Commissioner, and obtain approval of, a State plan containing 
such provisions as the Commissioner may require, including, 
at a minimum, the provisions required in this section. 
"(2) JOINT DEVELOPMENT.—^The plan under paragraph (1) 
shall be jointly developed and signed by— 
"(A) the director of the designated State unit; and 
"(B) the chairperson of the Statewide Independent Liv-
ing Council, acting on behalf of and at the direction of 
the Council. 
"(3) PERIODIC REVIEW AND REVISION.—The plan shall pro-
vide for the review and revision of the plan, not less than 
once every 3 years, to ensure the existence of appropriate 
planning, financial support and coordination, and other assist-
ance to appropriately address, on a statewide and comprehen-
sive basis, needs in the State for— 
"(A) the provision of State independent living services; 
"(B) the development and support of a statewide net-
work of centers for independent living; and 
"(C) working relationships between— 
"(i) programs providing independent living services 
and independent living centers; and 
"(ii) the vocational rehabilitation program estab-
lished under title I, and other programs providing serv-
ices for individuals with disabilities. 
"(4) DATE OF SUBMISSION.—^The State shall submit the plan 
to the Commissioner 90 days before the completion date of 
the preceding plan. If a State fails to submit such a plan 
that complies with the requirements of this section, the 
Commissioner may withhold financial assistance under this 
chapter until such time as the State submits such a plan. 
"(b) STATEWIDE INDEPENDENT LIVING COUNCIL.—The plan shall 
provide for the establishment of a Statewide Independent Living 
Council in accordance with section 705. 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1219 
"(c) DESIGNATION OF STATE UNIT.—The plan shall designate 
the designated State unit of such State as the agency that, on 
beh£df of the State, shall— 
"(1) receive, account for, and disburse funds received by 
the State under this chapter based on the plem; 
"(2) provide administrative support services for a program 
under part B, and a program under part C in a case in which 
the program is administered by the State under section 723; 
"(3) keep such records and afford such access to such Records. 
records as the Commissioner finds to be necessary with respect 
to the programs; and 
"(4) submit such additional information or provide such 
assurances as the Commissioner may require with respect to 
the programs. 
"(d) OBJECTIVES.—The plan shall— 
"(1) specify the objectives to be achieved under the plan 
and establish timelines for the achievement of the objectives; 
and 
"(2) explain how such objectives are consistent with and 
further the purpose of this chapter. 
"(e) INDEPENDENT LIVING SERVICES.—^The plan shall provide 
that the State will provide independent living services under this 
chapter to individuals with significant disabilities, and will provide 
the services to such an individual in accordance with an independ-
ent living plan mutually agreed upon by an appropriate staff mem-
ber of the service provider and the individual, unless the individual 
signs a waiver stating that such a plan is unnecessary. 
"(f) SCOPE AND ARRANGEMENTS.—^The plan shall describe the 
extent and scope of independent living services to be provided 
under this chapter to meet such objectives. If the State makes 
arrangements, by grant or contract, for providing such services, 
such arrangements shall be described in the plan. 
"(g) NETWORK.—^The plan shall set forth a design for the 
establishment of a statewide network of centers for independent 
living that comply with the standards and assurances set forth 
in section 725. 
"(h) CENTERS.—In States in which State funding for centers 
for independent living equsds or exceeds the amount of funds allot-
ted to the State under part C, as provided in section 723, the 
plan shall include policies, practices, and procedures governing 
the awarding of grants to centers for independent living and over-
sight of such centers consistent with section 723. 
"(i) COOPERATION, COORDINATION, AND WORKING RELATION-
SHIPS AMONG VARIOUS ENTITIES.—The plan shall set forth the 
steps that will be taken to maximize the cooperation, coordination, 
and working relationships among— 
"(1) the independent living rehabilitation service program, 
the Statewide Independent Living Council, and centers for 
independent living; and 
"(2) the designated State unit, other State agencies rep-
resented on such Council, other councils that address the needs 
of specific disability populations and issues, and other public 
and private entities determined to be appropriate by the Coun-
cil. 
"(j) COORDINATION OF SERVICES.—The plan shall describe how 
services funded under this chapter will be coordinated with, and 
112 STAT. 1220 
PUBLIC LAW 105-220—AUG. 7, 1998 
complement, other services, in order to avoid unnecessary duplica-
tion with other Federal, State, and local programs. 
"(k) COORDINATION BETWEEN FEDERAL AND STATE SOURCES.— 
The plan shall describe efforts to coordinate Federal and State 
funding for centers for independent living and independent living 
services. 
"(1) OUTREACH.—^With respect to services and centers funded 
under this chapter, the plan shall set forth steps to be taken 
regarding outreach to populations that are unserved or underserved 
by programs under this title, including minority groups and urban 
and rural populations. 
"(m) REQUIREMENTS.—The plan shall provide satisfactory assur-
ances that all recipients of financial assistance under this chapter 
w i l l -
Notification. 
"(1) notify all individuals seeking or receiving services 
under this chapter about the availability of the client assistance 
program under section 112, the purposes of the services pro-
vided under such program, and how to contact such program; 
"(2) take affirmative action to employ and advsince in 
employment qualified individuals with disabilities on the same 
terms and conditions required with respect to the employment 
of such individuals under the provisions of section 503; 
"(3) adopt such fiscal control and fund accounting proce-
dures as may be necessary to ensure the proper disbursement 
of and accounting for funds paid to the State under this chapter; 
Records. 
**(4)(A) maintain records that fully disclose— 
"(i) the amount and disposition by such recipient of 
the proceeds of such financial assistance; 
"(ii) the total cost of the project or undertaking in 
connection with which such financial assistance is given 
or used; and 
"(iii) the amount of that portion of the cost of the 
project or undertaking supplied by other sources; 
"(B) msdntain such other records as the Commissioner 
determines to be appropriate to facilitate an effective audit; 
"(C) afford such access to records maintained under sub-
paragraphs (A) and (B) as the Commissioner determines to 
be appropriate; and 
Reports. 
"(D) submit such reports with respect to such records as 
the Commissioner determines to be appropriate; 
"(5) provide access to the Commissioner and the Comptrol-
ler Gieneral or any of their duly authorized representatives, 
for the purpose of conducting audits and examinations, of any 
books, documents, papers, and records of the recipients that 
are pertinent to the financial assistance received under this 
chapter; and 
"(6) provide for public hearings regarding the contents of 
the plan during both the formulation and review of the plan. 
"(n) EVALUATION.—^The plan shall establish a method for the 
periodic evaluation of the effectiveness of the plan in meeting the 
objectives established in subsection (d), including evaluation of 
satisfaction by individuals with disabilities. 
29 use 796d. 
"SEC. 705. STATEWIDE INDEPENDENT LIVING COUNCIL. 
"(a) ESTABUSHMENT.—^To be eligible to receive financial assist-
ance imder this chapter, each State shall establish a Statewide 
- • ^ ' • • 4 
PUBLIC LAW 10&-220—AUG. 7, 1998 
112 STAT. 1221 
Independent Living Council (referred to in this section as the 'Coun-
cil')- The Council shall not be established as an entity within a 
State agency. 
"(b) COMPOSITION AND APPOINTMENT.— 
"(1) APPOINTMENT.—Members of the Council shall be 
appointed by the Grovemor. The Governor shall select members 
after 
soliciting recommendations from 
representatives of 
organizations representing a broad range of individuals with 
disabilities and organizations interested in individuals with 
disabilities. 
"(2) COMPOSITION.—The Council shall include— 
"(A) at least one director of a center for independent 
living chosen by the directors of centers for independent 
living within the State; 
"(B) as ex ofi^cio, nonvoting members— 
"(i) a representative from the designated State 
unit; and 
"(ii) representatives from other State agencies that 
provide services for individuals with disabilities; and 
"(C) in a State in which one or more projects are 
carried out under section 121, at least one representative 
of the directors of the projects. 
"(3) ADDITIONAL MEMBERS.—^The Council may include— 
"(A) other representatives from centers for independent 
living; 
"(B) parents and guardians of individuals with disabil-
ities; 
"(C) advocates of and for individuals with disabilities; 
"(D) representatives from private businesses; 
"(E) representatives from organizations that provide 
services for individuals with disabilities; and 
"(F) other appropriate individuals. 
"(4) QUAUFICATIONS.— 
"(A) IN GENERAL.—The Council shall be composed of 
members— 
"(i) who provide statewide representation; 
"(ii) who represent a broad range of individuals 
with disabilities from diverse backgrounds; 
"(iii) who are knowledgeable about centers for 
independent living and independent living services; 
and 
"(iv) a majority of whom are persons who are— 
"(I) individuals with disabilities described in 
section 7(20)(B); and 
"(II) not employed by any State agency or cen-
ter for independent living. 
"(B) VOTING MEMBERS.—A majority of the voting mem-
bers of the Council shall be— 
"(i) individuals with disabilities described in sec-
tion 7(20)(B); and 
"(ii) not employed by any State agency or center 
for independent living. 
"(5) CHAIRPERSON.— 
"(A) IN GENERAL.—^Except as provided in subparagraph 
(B), the Coimcil shall select a chairperson from among 
the voting membership of the Council. 
112 STAT. 1222 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(B) DESIGNATION BY GOVERNOR.—In States in which 
the (jovemor does not have veto power pursuant to State 
law, the Governor shall designate a voting member of the 
Council to serve as the chairperson of the Council or shall 
require the Council to so designate such a voting member. 
"(6) TERMS OF APPOINTMENT.— 
"(A) LENGTH OF TERM.—Each member of the Council 
shall serve for a term of 3 years, except that— 
"(i) a member appointed to fill a vacancy occurring 
prior to the expiration of the term for which a prede-
cessor was appointed, shall be appointed for the 
remainder of such term; and 
"(ii) the terms of service of the members initially 
appointed shall be (as specified by the Governor) for 
such fewer number of years as will provide for the 
expiration of terms on a staggered basis. 
"(B) NUMBER OF TERMS.—NO member of the Council 
may serve more than two consecutive full terms. 
"(7) VACANCIES.— 
"(A) IN GENERAL.—^Except as provided in subparagraph 
(B), any vacancy occurring in the membership of the Coun-
cil shall be filled in the same manner as the originsd 
appointment. The vacancy shall not affect the power of 
the remaining members to execute the duties of the Coun-
cil. 
"(B) DELEGATION.—^The Governor may delegate the 
authority to fill such a vacancy to the remaining voting 
members of the Council after making the original appoint-
ment. 
"(c) DUTIES.—^The Council shall— 
"(1) jointly develop and sign (in conjunction with the des-
ignated State unit) the State plan required in section 704; 
"(2) monitor, review, and evaluate the implementation of 
the State plan; 
"(3) coordinate activities with the State Rehabilitation 
Council established under section 105, if the State has such 
a Council, or the commission described in section 101(a)(21)(A), 
if the State has such a commission, and councils that address 
the needs of specific disability populations and issues under 
other Federal law; 
"(4) ensure that edl regularly scheduled meetings of the 
Statewide Independent Living Council are open to the public 
and sufficient advance notice is provided; and 
Reports. 
"(5) submit to the Commissioner such periodic reports as 
Records. 
the Commissioner may reasonably request, and keep such 
records, and afford such access to such records, as the Commis-
sioner finds necessEiry to verify such reports. 
"(d) HEARINGS AND FORUMS.—^The Council is authorized to hold 
such hearings and forums as the Council may determine to be 
necessary to carry out the duties of the Council. 
"(e) PLAN.— 
"(1) IN GENERAL.—^The Council shall prepare, in conjunction 
with the designated State unit, a plan for the provision of 
such resources, including such staff and personnel, as may 
be necessary and sufficient to carry out the functions of the 
Council under this section, with funds made available under 
this chapter, and under section 110 (consistent with section 
'!%•. -. t^.'»-s#»-r 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1223 
101(a)(18)), and from other public and private sources. The 
resource plan shall, to the maximum extent possible, rely on 
the use of resources in existence during the period of 
implementation of the plan. 
"(2) SUPERVISION AND EVALUATION.—Each Council shall, 
consistent with State law, supervise and evaluate such staff 
and other personnel as may be necesseiry to carry out the 
functions of the Council under this section. 
"(3) CONFLICT OF INTEREST.—While assisting the Council 
in carrying out its duties, staff and other personnel shall not 
be assigned duties by the designated State agency or any other 
agency or office of the State, that would create a conflict of 
interest. 
"(f) COMPENSATION AND EXPENSES.—The Council may use such 
resources to reimburse members of the Council for reasonable and 
necessary expenses of attending Council meetings and performing 
Council duties (including child care and personal assistance serv-
ices), and to pay compensation to a member of the Council, if 
such member is not employed or must forfeit wages from other 
employment, for each day the member is engaged in performing 
Council duties. 
"SEC. 706. RESPONSIBILrnES OF THE COMMISSIONER. 
29 USC 796d-l. 
"(a) APPROVAL OF STATE PLANS.— 
"(1) IN GENERAL.—^The Commissioner shall approve any 
State plan submitted under section 704 that the Commissioner 
determines meets the requirements of section 704, and shall 
disapprove any such plan that does not meet such requirements, 
as soon as practicable after receiving the plan. Prior to such Notification, 
disapproval, the Commissioner shsdl notify the State of the 
intention to disapprove the plan, and shall afford such State 
reasonable notice and opportunity for a hearing. 
"(2) PROCEDURES.— 
"(A) IN GENERAL.—^Except as provided in subparagraph 
(B), the provisions of subsections (c) and (d) of section 
107 shall apply to any State plan submitted to the Commis-
sioner under section 704. 
"(B) APPLICATION.—^For purposes of the application 
described in subparagraph (A), all references in such provi-
sions— 
"(i) to the Secretary shall be deemed to be ref-
erences to the Commissioner; and 
"(ii) to section 101 shall be deemed to be references 
to section 704. 
"OJ) INDICATORS.—Not later than October 1, 1993, the Commis-
sioner shall develop and publish in the Federal Register indicators 
of minimum compliance consistent with the standards set forth 
in section 725. 
"(c) ONSITE COMPLIANCE REVIEWS.— 
"(1) REVIEWS.—^The Commissioner shall annually conduct 
onsite compliance reviews of at least 15 percent of the centers 
for independent living that receive funds under section 722 
and shall periodically conduct such a review of each such center. 
The Commissioner shall annually conduct onsite compliance 
reviews of at least one-third of the designated State units 
that receive funding under section 723, and, to the extent 
necessary to determine the compliance of such a State unit 
112 STAT. 1224 
PUBLIC LAW 105-220—AUG. 7, 1998 
with subsections (f) and (g) of section 723, centers that receive 
funding under section 723 in such State. The Commissioner 
shall select the centers and State units described in this para-
graph for review on a random basis. 
"(2) 
QUALIFICATIONS 
OF 
EMPLOYEES 
CONDUCTING 
REVIEWS.—^The Commissioner shall— 
"(A) to the maximum extent practicable, carry out such 
a review by using employees of the Department who are 
knowledgeable about the provision of independent living 
services; 
"(B) ensure that the employee of the Department with 
responsibility for supervising such a review shall have such 
knowledge; and 
"(C) ensure that at least one member of a team conduct-
ing such a review shall be an individual who— 
"(i) is not a government employee; and 
"(ii) has experience in the operation of centers 
for independent living. 
"(d) REPORTS.—^The Commissioner shall include, in the annual 
report required under section 13, information on the extent to 
which centers for independent living receiving funds under part 
C have complied with the standards and assurances set forth in 
section 725. The Commissioner may identify individual centers 
for independent living in the analysis. The Commissioner shall 
report the results of onsite compliance reviews, identifying individ-
u£d centers for independent living and other recipients of assistance 
under this chapter. 
"PART B—INDEPENDENT LIVING SERVICES 
29USC796e. 
"SEC. 711. ALLOTMENTS. 
"(a) IN GENERAL.— 
"(1) STATES.— 
"(A) POPULATION BASIS.—Except as provided in sub-
paragraphs (B) and (C), from sums appropriated for each 
fiscal year to carry out this part, the Commissioner shall 
make an allotment to each State whose State plan has 
been approved under section 706 of an amount bearing 
the same ratio to such sums as the population of the 
State bears to the population of all States. 
"(B) MAINTENANCE OF 1992 AMOUNTS.—Subject to the 
availability of appropriations to carry out this part, the 
amount of any allotment made under subparagraph (A) 
to a State for a fiscal year shall not be less than the 
amount of an allotment made to the State for fiscal year 
1992 under part A of this title, as in effect on the day 
before the date of enactment of the Rehabilitation Act 
Amendments of 1992. 
"(C) MiNiMUMS.—Subject to the availability of appro-
priations to carry out this part, and except as provided 
in subparagraph (B), the allotment to any State under 
subparagraph (A) shall be not less than $275,000 or Vz 
of 1 percent of the sums made available for the fiscal 
year for which the allotment is made, whichever is greater, 
and the allotment of any State under this section for any 
fiscal year that is less than $275,000 or Vs of 1 percent 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1225 
of such sums shall be increased to the greater of the two 
amounts. 
"(2) CERTAIN TERRITORIES.— 
"(A) IN GENERAL.—^For the purposes of paragraph 
(1)(C), Guam, American Samoa, the United States Virgin 
Islands, and the Commonwealth of the Northern Mariana 
Islands shall not be considered to be States. 
"(B) 
ALLOTMENT.—Each jurisdiction 
described 
in 
subparagraph (A) shall be allotted under paragraph (1)(A) 
not less than Vs of 1 percent of the amounts made available 
for purposes of this part for the fiscal year for which 
the allotment is made. 
"(3) ADJUSTMENT FOR INFLATION.—^For any fiscal year, 
beginning in fiscal year 1999, in which the total amount appro-
priated to carry out this part exceeds the total amount appro-
priated to carry out this part for the preceding fiscal year, 
the Commissioner shall increase the minimum allotment under 
paragraph (1)(C) by a percentage that shall not exceed the 
percentage increase in the total amount appropriated to carry 
out this part between the preceding fiscal year and the fiscal 
year involved. 
(b) PROPORTIONAL REDUCTION.—^To provide allotments to 
States in accordance with subsection (a)(1)(B), to provide minimum 
allotments to States (as increased under subsection (a)(3)) under 
subsection (a)(lXC), or to provide minimum allotments to States 
under subsection (a)(2)(B), the Commissioner shall proportionately 
reduce the allotments of the remaining States under subsection 
(a)(1)(A), with such adjustments as may be necessary to prevent 
the allotment of any such remaining State from being reduced 
to less than the amount required by subsection (a)(1)(B). 
"(c) REALLOTMENT.—^Whenever the Commissioner determines 
that any amount of an allotment to a State for any fiscal year 
will not be expended by such State in carrying out the provisions 
of this part, tne Commissioner shall make such amount available 
for carrying out the provisions of this part to one or more of 
the States that the Commissioner determines will be able to use 
additional amounts during such year for canying out such provi-
sions. Any amount made available to a State for any fiscal year 
pursuant to the preceding sentence shall, for the purposes of this 
section, be regarded as an increase in the allotment of the State 
(as determined under the preceding provisions of this section) for 
such year. 
'^EC. 712. PAYMENTS TO STATES FROM ALLOTMENTS. 
29USC796e-L 
"(a) PAYMENTS.—^From the allotment of each State for a fiscal 
year under section 711, the State shall be paid the Federal share 
of the expenditures incurred during such year under its State 
plan approved under section 706. Such pajmtients may be made 
(after necessary adjustments on account of previously made overpay-
ments or underpayments) in advance or by way of reimbursement, 
and in such instsdlments and on such conditions as the Commis-
sioner may determine. 
"(b) FEDERAL SHARE.— 
"(1) IN GENERAL.—^The Federal share with respect to any 
State for any fiscal year shall be 90 percent of the expenditures 
incurred by the State during such year under its State plan 
approved under section 706. 
112 STAT. 1226 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(2) NON-FEDERAL SHARE.—The non-Federal share of the 
cost of any project that receives assistance through an allotment 
under this part may be provided in cash or in kind, fairly 
evaluated, including plant, equipment, or services. 
29 use 796e-2. 
"SEC. 713. AUTHORIZED USES OF FUNDS. 
"The State may use funds received under this part to provide 
the resources described in section 705(e), relating to the Statewide 
Independent Living Council, and may use funds received under 
this part— 
"(1) to provide independent living services to individuals 
with significant disabilities; 
"(2) to demonstrate ways to expgind £ind improve independ-
ent living services; 
"(3) to support the operation of centers for independent 
living that are in complismce with the standards and assurances 
set forth in subsections (b) and (c) of section 725; 
"(4) to support activities to increase the capacities of public 
or nonprofit agencies and orgEuiizations and other entities to 
develop comprehensive approaches or systems for providing 
independent living services; 
"(5) to conduct studies and analyses, gather information, 
develop model policies and procedures, and present information, 
approaches, strategies, findings, conclusions, and recommenda-
tions to Federal, State, and local policymakers in order to 
enhance independent living services for individuals with disabil-
ities; 
"(6) to train individuals with disabilities and individuals 
providing services to individuals with disabilities and other 
persons regarding the independent living philosophy; and 
"(7) to provide outreach to populations that are unserved 
or underserved by programs under this title, including minority 
groups £Lnd urban and rural populations. 
29 use 796e-3. 
"SEC. 714. AUTHORIZATION OF APPROPRIATIONS. 
'There are authorized to be appropriated to carry out this 
part such sums as may be necessary for each of the fiscal years 
1999 through 2003. 
"PART C—CENTERS FOR INDEPENDENT 
LIVING 
29 use 796f. 
"SEC. 721. PROGRAM AUTHORIZATION. 
"(a) IN GENERAL.—^From the funds appropriated for fiscal year 
1999 and for each subsequent fiscal year to carry out this part, 
the Commissioner shall allot such sums as may be necessary to 
States and other entities in accordance with subsections (b) through 
(d). 
"(b) TRAINING.— 
"(1) GRANTS; CONTRACTS; OTHER ARRANGEMENTS.—^For any 
fiscal year in which the funds appropriated to cany out this 
part exceed the funds appropriated to carry out this part for 
fiscal year 1993, the Commissioner shall first reserve from 
such excess, to provide training and technical assistance to 
eligible agencies, centers for independent living, and Statewide 
Independent Living Councils for such fiscal year, not less than 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1227 
1.8 percent, and not more than 2 percent, of the funds appro-
priated to carry out this part for the fiscal year involved. 
"(2) ALLOCATION.—^From the funds reserved under para-
graph (1), the Commissioner shall make grants to, and enter 
into contracts and other arrangements with, entities that have 
experience in the operation of centers for independent living 
to provide such training and technical assistance with respect 
to 
planning, 
developing, 
conducting, 
administering, 
and 
evaluating centers for independent living. 
"(3) RJNDING PRIORITIES.—^The Commissioner shall conduct 
a survey of Statewide Independent Living Councils and centers 
for independent living regarding training and technical assist-
ance needs in order to determine funding priorities for such 
grants, contracts, and other arrangements. 
"(4) REVIEW.—^To be eligible to receive a grant or enter 
into a contract or other arrangement under this subsection, 
such an entity shall submit an application to the Commissioner 
at such time, in such manner, and containing a proposal to 
provide such training £ind technical assistance, and containing 
such additional information as the Commissioner may require. 
The Commissioner shall provide for peer review of grsint 
applications by panels that include persons who are not govern-
ment employees and who have experience in the operation 
of centers for independent living. 
"(5) PROHIBITION ON COMBINED FUNDS.—NO funds reserved 
by the Commissioner under this subsection may be combined 
with funds appropriated under any other Act or part of this 
Act if the purpose of combining funds is to make a single 
discretionary grant or a single discretionary payment, unless 
such funds appropriated under this chapter are separately 
identified in such grant or payment and are used for the pur-
poses of this chapter, 
(c) IN GENERAL.— 
"(1) STATES.— 
"(A) POPULATION BASIS.—^After the reservation required 
by subsection (b) has been made, and except as provided 
in subparagraphs (B) and (C), from the remainder of the 
amounts appropriated for each such fiscal year to carry 
out this part, the Commissioner shall make an allotment 
to each State whose State plan has been approved under 
section 706 of an amount bearing the same ratio to such 
remainder as the population of the State bears to the 
population of all States. 
"(B) MAINTENANCE OF 1992 AMOUNTS.—Subject to the 
availability of appropriations to CEirry out this part, the 
amount of any allotment made under subparagraph (A) 
to a State for a fiscal year shall not be less than the 
amount of financial assistance received by centers for 
independent living in the State for fiscal year 1992 under 
part B of this title, as in effect on the day before the 
date of enactment of the Rehabilitation Act Amendments 
of 1992. 
"(C) MiNlMUMS.—Subject to the availability of appro-
priations to carry out this part and except as provided 
in subparagraph (B), for a fiscal year in which the amounts 
appropriated to carry out this part exceed the amounts 
appropriated for fiscal year 1992 to carry out part B of 
112 STAT. 1228 
PUBLIC LAW 105-220—AUG. 7, 1998 
this title, as in effect on the day before the date of enact-
ment of the Rehabihtation Act Amendments of 1992— 
"(i) if such excess is not less than $8,000,000, 
the allotment to any State under subparagraph (A) 
shall be not less than $450,000 or Va of 1 percent 
of the sums made available for the fiscal year for 
which the allotment is made, whichever is greater, 
and the allotment of any State under this section for 
any fiscal year that is less than $450,000 or Vs of 
1 percent of such sums shall be increased to the greater 
of the 2 amounts; 
"(ii) if such excess is not less than $4,000,000 
and is less than $8,000,000, the allotment to any State 
under subparagraph (A) shall be not less than $400,000 
or Vz of 1 percent of the sums made available for 
the fiscal year for which the allotment is made, which-
ever is greater, and the allotment of any State under 
this section for any fiscal year that is less than 
$400,000 or Vz of 1 percent of such sums shall be 
increased to the greater of the 2 amounts; and 
"(iii) if such excess is less than $4,000,000, the 
allotment to any State under subparagraph (A) shall 
approach, as nearly as possible, the greater of the 
2 amounts described in clause (ii). 
"(2) CERTAIN TERRITORIES.— 
"(A) IN GENERAL.—^For the purposes of paragraph 
(1)(C), Guam, American Samoa, the United States Virgin 
Islands, and the Commonwealth of the Northern Mariana 
Islands shedl not be considered to be States. 
"(B) 
ALLOTMENT.—^Each jurisdiction 
described 
in 
subparagraph (A) shall be allotted under paragraph (1)(A) 
not less than Vs of 1 percent of the remainder for the 
fiscal year for which the allotment is made. 
"(3) ADJUSTMENT FOR INFLATION.—^For any fiscal year, 
beginning in fiscal year 1999, in which the total amount appro-
priated to carry out this part exceeds the total amount appro-
priated to carry out this part for the preceding fiscal year, 
the Commissioner shall increase the minimum allotment under 
paragraph (1)(C) by a percentage that shall not exceed the 
percentage increase in the total amount appropriated to carry 
out this part between the preceding fiscal year and the fiscal 
year involved. 
"(4) PROPORTIONAL REDUCTION.—To provide allotments to 
States in accordance with paragraph (1)(B), to provide minimum 
allotments to States (as increased under paragraph (3)) under 
paragraph (1)(C), or to provide minimum allotments to States 
under paragraph (2)(B), the Commissioner shall proportionately 
reduce the allotments of the remaining States under paragraph 
(1)(A), with such adjustments as may be necessary to prevent 
the allotment of any such remaining State from being reduced 
to less than the amount required by paragraph (1)(B). 
"(d) REALLOTMENT.—^Whenever the Commissioner determines 
that any amount of an allotment to a State for any fiscal year 
will not be expended by such State for canying out the provisions 
of this part, the Commissioner shall make such amount available 
for carrying out the provisions of this part to one or more of 
the States that the Commissioner determines will be able to use 
'"^"^ --f - yi^-'m •'•-
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1229 
additional amounts during such year for carrying out such provi-
sions. Any amount made available to a State for any fiscal year 
pursuant to the preceding sentence shall, for the purposes of this 
section, be regarded as an increase in the allotment of the State 
(as determined under the preceding provisions of this section) for 
such year. 
"SEC. 722. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES 
29 USC 796f-l. 
IN WHICH FEDERAL FUNDING EXCEEDS STATE FUNDING. 
**(a) ESTABLISHMENT.— 
"(1) IN GENERAL.—^Unless the director of a designated State 
unit awards grants under section 723 to eligible agencies in 
a State for a nscal year, the Commissioner shall award grants 
under this section to such eligible agencies for such fiscal 
year from the amount of funds allotted to the State under 
subsection (c) or (d) of section 721 for such year. 
"(2) GRANTS.—^The Commissioner shall award such grants, 
from the amount of funds so allotted, to such eligible agencies 
for the planning, conduct, administration, and evaluation of 
centers for independent living that comply with the standards 
and assurances set forth in section 725. 
"(b) ELIGIBLE AGENCIES.—In any State in which the Commis-
sioner has approved the State plan required by section 704, the 
Commissioner may make a grant under this section to any eligible 
agency that— 
"(1) has the power and authority to carry out the purpose 
of this part and perform the functions set forth in section 
725 within a community and to receive and administer funds 
under this part, funds and contributions from private or public 
sources that may be used in support of a center for independent 
living, and funds from other public and private programs; 
^2) is determined by the Commissioner to be able to plan, 
conduct, administer, and evaluate a center for independent 
living consistent with the standards and assurances set forth 
in section 725; and 
"(3) submits an application to the Commissioner at such 
time, in such manner, and containing such information as 
the Commissioner may require. 
"(c) EXISTING ELIGIBLE AGENCIES.—In the administration of 
the provisions of this section, the Commissioner shall award grants 
to any eligible agency that has been awarded a grant under this 
part by September 30, 1997, unless the Commissioner makes a 
finding that the agency involved fails to meet progrsim and fiscal 
standards and assurances set forth in section 725. 
"(d) NEW CENTERS FOR INDEPENDENT LIVING.— 
"(1) IN GENERAL.—If there is no center for independent 
living serving a region of the State or a region is underserved, 
and the increase in the allotment of the State is sufficient 
to support an additional center for independent living in the 
State, the Commissioner may award a grant under this section 
to the most qualified applicant proposing to serve such region, 
consistent with the provisions in the State plan setting forth 
the design of the State for establishing a statewide network 
of centers for independent living. 
"(2) SELECTION.—^In selecting from among applicants for 
a grant under this section for a new center for independent 
living, the Commissioner— 
112 STAT. 1230 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(A) shall consider comments regarding the application, 
if £iny, by the Statewide Independent Living Council in 
the State in which the applicant is located; 
"(B) shall consider the ability of each such applicant 
to operate a center for independent living based on— 
"(i) evidence of the need for such a center; 
"(ii) any past performance of such applicant in 
providing services comparable to independent living 
services; 
"(iii) the plan for satisfying or demonstrated suc-
cess in satisfying the standards and the assurances 
set forth in section 725; 
"(iv) the quality of key personnel and the involve-
ment of individuals with signific£int disabilities; 
"(v) budgets and cost-effectiveness; 
"(vi) an evaluation plan; and 
"(vii) the ability of such applicant to carry out 
the plans; and 
**(C) shall give priority to applications from applicants 
proposing to serve geographic areas within each State that 
are currently unserved or underserved by independent liv-
ing programs, consistent with the provisions of the State 
plan submitted under section 704 regarding establishment 
of a statewide network of centers for independent living. 
"(3) CURRENT CENTERS.—^Notwithstanding paragraphs (1) 
and (2), a center for independent living that receives assistance 
under part B for a fiscal year shall be eligible for a grant 
for the subsequent fiscal year under this subsection. 
"(e) ORDER OF PRIORITIES.—^The Commissioner shall be guided 
by the following order of priorities in allocating funds among centers 
for independent living within a State, to the extent funds are 
available: 
"(1) The Commissioner shall support existing centers for 
independent living, as described in subsection (c), that comply 
with the standards and assurances set forth in section 725, 
at the level of funding for the previous year. 
"(2) The Commissioner shall provide for a cost-of-living 
increase for such existing centers for independent living. 
"(3) The Commissioner shall fund new centers for independ-
ent living, as described in subsection (d), that comply with 
the standards and assurances set forth in section 725. 
"(f) NONRESIDENTIAL AGENCIES.—A center that provides or 
manages residential housing after October 1, 1994, shall not be 
considered to be an eligible agency under this section. 
"(g) REVIEW.— 
"(1) IN GENERAL.—^The Commissioner shall periodically 
review each center receiving funds under this section to deter-
mine whether such center is in compliance with the standards 
Notification. 
and assurances set forth in section 725. If the Commissioner 
determines that any center receiving funds under this section 
is not in compliance with the standards and assurances set 
forth in section 725, the Commissioner shall immediately notify 
such center that it is out of compliance. 
Termination 
"(2) ENFORCEMENT.—^The Commissioner shall terminate all 
date. 
funds under this section to such center 90 days after the 
date of such notification unless the center submits a plan 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1231 
to achieve compliance within 90 days of such notification and 
' 
such plan is approved by the Commissioner, 
"SEC. 723. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES 
29 USC 796f-2. 
IN WmCH STATE FUNDING EQUALS OR EXCEEDS FED-
ERAL FUNDING. 
"(a) ESTABUSHMENT.— 
"(1) IN GENERAL.— 
"(A) INITIAL YEAR.— 
"(i) DETERMINATION.—^The director of a designated 
State unit, as provided in paragraph (2), or the 
Commissioner, as provided in paragraph (3), shall 
awgird grants under this section for an initial fiscal 
year if the Commissioner determines that the amount 
of State funds that were earmarked by a State for 
a preceding fiscal year to support the general operation 
of centers for independent living meeting the require-
ments of this part equaled or exceeded the amount 
of funds allotted to the State under subsection (c) or 
(d) of section 721 for such year. 
"(ii) GRANTS.—^The director or the Commissioner, 
as appropriate, shall award such grants, from the 
amount of funds so allotted for the initial fiscal year, 
to eligible agencies in the State for the planning, con-
duct, administration, and evaluation of centers for 
independent living that comply with the standards and 
assurances set forth in section 725. 
"(iii) REGULATION.—The Commissioner shall by 
regulation specify the preceding fiscal year with respect 
to which the Commissioner will make the determina-
tions described in clause (i) Eind subparagraph (B), 
making such adjustments as may be necessary to 
accommodate State funding cycles such as 2-year fund-
ing cycles or State fiscal years that do not coincide 
with the Federal fiscal year. 
"(B) SUBSEQUENT YEARS.—For each year subsequent 
to the initial fiscal year described in subparagraph (A), 
the director of the designated State unit shall continue 
to have the authority to award such grants under this 
section if the Commissioner determines that the State 
continues to earmark the amount of State funds described 
in subparagraph (A)(i). If the State does not continue to 
earmark such an amount for a fiscal year, the State shall 
be ineligible to make grants under this section after a 
final year following such fiscal year, as defined in accord-
ance with regulations established by the Commissioner, 
and for each subsequent fiscal year. 
"(2) GRANTS BY DESIGNATED STATE UNITS.—^In order for 
the designated State unit to be eligible to award the grants 
described in paragraph (1) and carry out this section for a 
fiscal year with respect to a State, the designated State agency 
shall submit an application to the Commissioner at such time, 
and in such manner as the Commissioner may require, includ-
ing information about the amount of State funds described 
in paragraph (1) for the preceding fiscal year. If the Commis-
sioner makes a determination described in subparagraph (A)(i) 
or (B), as appropriate, of paragraph (1), the Commissioner 
112 STAT. 1232 
PUBLIC LAW 105-220—AUG. 7, 1998 
shall approve the application and designate the director of 
the designated State unit to award the grant and carry out 
this section. 
"(3) GRANTS BY COMMISSIONER.—If the designated State 
agency of a State described in paragraph (1) does not submit 
and obtain approval of an application under paragraph (2), 
the Commissioner shall award the grant described in paragraph 
(1) to eligible agencies in the State in accordance with section 
722. 
"(b) ELIGIBLE AGENCIES.—^In any State in which the Commis-
sioner has approved the State plan required by section 704, the 
director of the designated State unit may award a grant under 
this section to any eligible agency that— 
"(1) has the power and authority to carry out the purpose 
of this part and perform the functions set forth in section 
725 within a community and to receive and administer funds 
under this part, funds and contributions from private or public 
sources that may be used in support of a center for independent 
living, and funds from other public and private programs; 
"(2) is determined by the director to be able to plan, con-
duct, administer, and evaluate a center for independent living, 
consistent with the standards and assurances set forth in sec-
tion 725; and 
"(3) submits an application to the director at such time, 
in such manner, and containing such information as the head 
of the designated State unit may require. 
"(c) EXISTING ELIGIBLE AGENCIES.—In the administration of 
the provisions of this section, the director of the designated State 
unit shall award grants under this section to any eligible agency 
that has been awarded a grant under this part by September 
30, 1997, unless the director makes a finding that the agency 
involved fails to comply with the standards £ind assurances set 
forth in section 725. 
"(d) NEW CENTERS FOR INDEPENDENT LIVING.— 
"(1) IN GENERAL.—If there is no center for independent 
living serving a region of the State or the region is unserved 
or underserved, and the increase in the allotment of the State 
is sufficient to support an additional center for independent 
living in the State, the director of the designated State unit 
may award a grant under this section from among eligible 
agencies, consistent with the provisions of the State plan under 
section 704 setting forth the design of the State for establishing 
a statewide network of centers for independent living. 
"(2) SELECTION.—In selecting from among eligible agencies 
in awarding a grant under this part for a new center for 
independent living— 
"(A) the director of the designated State unit and the 
chairperson of, or other individual designated by, the State-
wide Independent Living Council acting on behalf of and 
at the direction of the Council, shall jointly appoint a 
peer review committee that shall rank applications in 
accordance with the standards and assurances set forth 
in section 725 and criteria jointly established by such direc-
tor and such chairperson or individual; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1233 
"(B) the peer review committee shall consider the abil-
ity of each such applicant to operate a center for independ-
ent living, and shall recommend an applicsmt to receive 
a grant under this section, based on— 
"(i) evidence of the need for a center for independ-
ent living, consistent with the State plan; 
"(ii) any past performance of such applicant in 
providing services comparable to independent living 
services; 
"(iii) the plan for complying with, or demonstrated 
success in complying with, the standards and the 
assurances set forth in section 725; 
"(iv) the quality of key personnel of the applicant 
and the involvement of individuals with significant 
disabilities by the applicant; 
"(v) the budgets and cost-effectiveness of the 
applicant; 
"(vi) the evaluation plan of the applicant; and 
"(vii) the ability of such applicant to carry out 
the plans; and 
"(C) the director of the designated State unit shall 
award the grant on the basis of the recommendations of 
the peer review committee if the actions of the committee 
are consistent with Federal and State law. 
"(3) CURRENT CENTERS.—^Notwithstanding paragraphs (1) 
and (2), a center for independent living that receives assistance 
under part B for a fiscal year shall be eligible for a grant 
for the subsequent fiscal year under this subsection. 
"(e) ORDER OF PRIORITIES.—^Unless the director of the des-
ignated State unit and the chairperson of the Council or other 
individual designated by the Council acting on behalf of and at 
the direction of the Council jointly agree on another order of priority, 
the director shall be guided by the following order of priorities 
in allocating funds among centers for independent living within 
a State, to the extent funds are available: 
"(1) The director of the designated State unit shall support 
existing centers for independent living, as described in sub-
section (c), that comply with the standards and assurances 
set forth in section 725, at the level of funding for the previous 
year. 
"(2) The director of the designated State unit shall provide 
for a cost-of-living increase for such existing centers for 
independent living. 
"(3) The director of the designated State unit shall fund 
new centers for independent living, as described in subsection 
(d), that comply with the standards £uid assurances set forth 
in section 725. 
"(f) NONRESIDENTIAL AGENCIES.—A center that provides or 
manages residential housing after October 1, 1994, shall not be 
considered to be an eligible agency under this section. 
"(g) REVIEW.— 
"(1) IN GENERAL.—The director of the designated State 
unit shall periodically review each center receiving funds imder 
this section to determine whether such center is in compliance 
with the standards and assurances set forth in section 725. 
If the director of the designated State unit determines that 
112 STAT. 1234 
PUBLIC LAW 105-220—AUG. 7, 1998 
29 use 796f-3. 
29 use 796f-4. 
any center receiving funds under this section is not in compli-
ance with the standards and assurances set forth in section 
725, the director of the designated State unit shall immediately 
notify such center that it is out of compliance. 
"(2) ENFORCEMENT.—The director of the designated State 
unit shall terminate all funds under this section to such center 
90 days after— 
"(A) the date of such notification; or 
"(B) in the case of a center that requests an appeal 
under subsection (i), the date of any final decision under 
subsection (i), 
unless the center submits a plan to achieve compliance within 
90 days and such plan is approved by the airector, or if 
appegJed, by the Commissioner. 
"(h) ONSITE COMPLIANCE REVIEW.—^The director of the des-
ignated State unit shall annually conduct onsite compliance reviews 
of at least 15 percent of the centers for independent living that 
receive funding under this section in the State. Each team that 
conducts onsite compliance review of centers for independent living 
shall include at least one person who is not an employee of the 
designated State agency, who has experience in the operation of 
centers for independent living, and who is jointly selected by the 
director of the designated State unit and the chairperson of or 
other individual designated by the Council acting on behalf of 
and at the direction of the Council. A copy of this review shall 
be provided to the Commissioner. 
"(i) ADVERSE ACTIONS.—If the director of the designated State 
unit proposes to take a significant adverse action against a center 
for independent living, the center may seek mediation and concilia-
tion to be provided by an individual or individuals who are free 
of conflicts of interest identified by the chairperson of or other 
individual designated by the Council. If the issue is not resolved 
through the mediation and conciliation, the center may appeal 
the proposed adverse action to the Commissioner for a final decision. 
"SEC. 
724. 
CENTERS 
OPERATED 
BY 
STATE 
AGENCIES. 
"A State that receives assistance for fiscal year 1993 with 
respect to a center in accordance with subsection (a) of this section 
(as in effect on the day before the date of enactment of the 
Rehabilitation Act Amendments of 1998) may continue to receive 
assistance under this part for fisced year 1994 or a succeeding 
fiscal year if, for such fiscal year— 
"(1) no nonprofit private agency— 
"(A) submits an acceptable application to operate a 
center for independent living for the fiscal year before 
a date specified by the Commissioner; and 
"(B) obtains approval of the application under section 
722 or 723; or 
"(2) after funding all applications so submitted and 
approved, the Commissioner determines that funds remain 
available to provide such assistance. 
" S E C 
725. STANDARDS AND ASSURANCES FOR 
CENTERS 
FOR 
INDEPENDENT LIVING. 
"(a) IN GENERAL.—^Each center for independent living that 
receives assistance under this pgirt shall comply with the standeirds 
set out in subsection (b) and provide and comply with the assurances 
set out in subsection (c) in order to ensure that all programs 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1235 
and activities under this part are planned, conducted, administered, 
and evaluated in a manner consistent with the purposes of this 
chapter and the objective of providing assistance effectively and 
efficiently. 
"(b) STANDARDS.— 
"(1) PHILOSOPHY.—The center shall promote and practice 
the independent living philosophy of— 
"(A) consumer control of the center regarding decision-
making, service delivery, management, and establishment 
of the policy and direction of the center; 
"(B) self-help and self-advocacy; 
"(C) development of peer relationships and peer role 
models; and 
"(D) equal access of individuals with significant disabil-
ities to society and to all services, programs, activities, 
resources, and facilities, whether public or private and 
regardless of the funding source. 
"(2) PROVISION OF SERVICES.—The center shall provide serv-
ices to individuals with a range of significant disabilities. The 
center shall provide services on a cross-disability basis (for 
individuals with all different t3rpes of significant disabilities, 
including individuals with significant disabilities who are mem-
bers of populations that are unserved or underserved by pro-
grams under this title). Eligibility for services at any center 
for independent living shall be determined by the center, and 
shall not be based on the presence of any one or more specific 
significant disabilities. 
"(3) INDEPENDENT LIVING GOALS.—The center shall facili-
tate the development and achievement of independent living 
goals selected by individuals with significant disabilities who 
seek such assistance by the center. 
"(4) 
COMMUNITY OPTIONS.—^The center shall work to 
increase the availability and improve the quality of community 
options for independent living in order to facilitate the develop-
ment and achievement of independent living goals by individ-
uals with significant disabilities. 
"(5) INDEPENDENT LIVING CORE SERVICES.—^The center shall 
provide independent living core services and, as appropriate, 
a combination of any other independent living services. 
"(6) ACTIVITIES TO INCREASE COMMUNITY CAPACITY.—The 
center shall conduct activities to increase the capacity of 
communities within the service area of the center to meet 
the needs of individuals with significEint disabilities. 
"(7) RESOURCE DEVELOPMENT ACTIVITIES.—The center shall 
conduct resource development activities to obtain funding from 
sources other than this chapter. 
"(c) ASSURANCES.—^The eligible agency shall provide at such 
time and in such manner as the Commissioner may require, such 
satisfactory assurances as the Commissioner may require, including 
satisfactory assurances that— 
"(1) the applicant is an eligible agency; 
"(2) the center will be designed and operated within local 
communities by individuals with disabilities, including an 
assurance that the center will have a Board that is the principal 
governing body of the center and a majority of which shall 
be composed of individuals with significant disabilities; 
112 STAT. 1236 
PUBLIC LAW 105-220—AUG. 7, 1998 
Reports. 
Records. 
"(3) the applicant will comply with the standards set forth 
in subsection (b); 
"(4) the applicant will establish clear priorities through 
annual and 3-year program and financial planning objectives 
for the center, including overall goals or a mission for the 
center, a work plan for achieving the goals or mission, specific 
objectives, service priorities, and types of services to be pro-
vided, and a description that shall demonstrate how the pro-
posed activities of the applicant are consistent with the most 
recent 3-year State plan under section 704; 
"(5) the applicant will use sound organizational and person-
nel assignment practices, including taking affirmative action 
to employ and advance in employment qualified individuals 
with significant disabilities on the same terms and conditions 
required with respect to the employment of individuals with 
disabilities under section 503; 
"(6) the applicant will ensure that the majority of the 
staff, and individuals in decisionmaking positions, of the 
applicant are individuals with disabilities; 
"(7) the applicant will practice sound fiscal management, 
including making arrangements for an annual independent fis-
cal audit, notwithstanding section 7502(a)(2)(A) of title 31, 
United States Code; 
"(8) the applicant will conduct annual self-evaluations, pre-
pare an annual report, and maintain records adequate to meas-
ure performance with respect to the standards, containing 
information regarding, at a minimum— 
"(A) the extent to which the center is in compliance 
with the standards; 
"(B) the number and tjrpes of individuals with signifi-
cant disabilities receiving services through the center; 
"(C) the tjrpes of services provided through the center 
and the number of individuals with significant disabilities 
receiving each type of service; 
"(D) the sources and amounts of funding for the oper-
ation of the center; 
"(E) the number of individuals with significant disabil-
ities who are employed by, and the number who are in 
management and decisionmaking positions in, the center; 
and 
"(F) a comparison, when appropriate, of the activities 
of the center in prior years with the activities of the center 
in the most recent year; 
"(9) individuals with significant disabilities who are seeking 
or receiving services at the center will be notified by the center 
of the existence of, the availability of, and how to contact, 
the client assistance program; 
"(10) aggressive outreach regarding services provided 
through the center will be conducted in an effort to reach 
populations of individuals with significant disabilities that are 
unserved or underserved by programs under this title, espe-
cially minority groups and urban and rural populations; 
"(11) staff at centers for independent living will receive 
training on how to serve such unserved and underserved popu-
lations, including minority groups and urban and rural popu-
lations; 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1237 
"(12) the center will submit to the Statewide Independent Reports. 
Living Council a copy of its approved grant application and 
the annual report required under paragraph (8); 
"(13) the center will prepare and submit a report to the Reports, 
designated State unit or the Commissioner, as the case may 
be, at the end of each fiscEil year that contains the information 
described in paragraph (8) and information regarding the extent 
to which the center is in compliance with the standards set 
forth in subsection (b); and 
"(14) an independent living plan described in section 704(e) 
will be developed unless the individual who would receive serv-
ices under the plan signs a waiver stating that such a plan 
is unnecessary. 
-SEC. 726. DEFINITIONS. 
"As used in this part, the term 'eligible agency' means a con-
sumer-controlled, community-based, cross-disability, nonresidential 
private nonprofit agency. 
"SEC. 727. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this 
part such sums as may be necessary for each of the fiscal years 
1999 through 2003. 
"CHAPTER 2—INDEPENDENT LIVING SERVICES FOR 
OLDER INDIVIDUALS WHO ARE BLIND 
"SEC. 751. DEFINITION. 
"For purposes of this chapter, the term 'older individual who 
is blind' means an individual age 55 or older whose significant 
visual impairment makes competitive employment extremely dif-
ficult to attain but for whom independent living goals are feasible. 
"SEC. 752. PROGRAM OF GRANTS. 
"(a) IN GENERAL.— 
"(1) AUTHORITY FOR GRANTS.—Subject to subsections (b) 
and (c), the Commissioner may make grants to States for the 
purpose of providing the services described in subsection (d) 
to older individuals who are blind. 
"(2) DESIGNATED STATE AGENCY.—The Commissioner may 
not make a grant under subsection (a) unless the State involved 
agrees that the grant will be administered solely by the agency 
described in section 101(a)(2)(A)(i). 
"(b) CONTINGENT COMPETITIVE GRANTS.—^Beginning with fiscal 
year 1993, in the case of any fiscal year for which the amount 
appropriated under section 753 is less than $13,000,000, grants 
made under subsection (a) shall be— 
"(1) discretionary grants made on a competitive basis to 
States; or 
"(2) grants made on a noncompetitive basis to pay for 
the continuation costs of activities for which a grant was 
awarded— 
"(A) under this chapter; or 
"(B) under part C, as in effect on the day before the 
date of enactment of the Rehabilitation Act Amendments 
of 1992. 
"(c) CONTINGENT FORMULA GRANTS.— 
29USC796f-5. 
29USC796f-6. 
29 use 796j. 
29 use 796k. 
58-194 O - 98 - 12: QL 3 Part 2 
112 STAT. 1238 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(1) IN GENERAL.—^In the case of any fiscal year for which 
the amount appropriated under section 753 is equal to or 
OTeater than $13,000,000, grants under subsection (a) shall 
be made only to States and shall be made only from allotments 
under paragraph (2). 
"(2) ALLOTMENTS.—^For grants under subsection (a) for a 
fiscal year described in paragraph (1), the Commissioner shall 
make an allotment to each State in an amount determined 
in accordance with subsection (j), and shall make a grant 
to the State of the allotment made for the State if the State 
submits to the Commissioner an application in accordance with 
subsection (i). 
"(d) SERVICES GENERALLY.—^The Commissioner may not make 
a grant under subsection (a) unless the State involved agrees that 
the grant will be expended only for purposes of— 
"(1) providing independent living services to older individ-
uals who are blind; 
"(2) conducting activities that will improve or expand 
services for such individuals; and 
"(3) conducting activities to help improve public under-
standing of the problems of such individuals. 
"(e) 
INDEPENDENT 
LIVING 
SERVICES.—Independent 
living 
services for purposes of subsection (d)(1) include— 
"(1) services to help correct blindness, such as— 
"(A) outreach services; 
"(B) visual screening; 
"(C) surgical or therapeutic treatment to prevent, 
correct, or modify disabling eye conditions; and 
"(D) hospitalization related to such services; 
"(2) the provision of eyeglasses and other visual aids; 
"(3) the provision of services and equipment to assist an 
older individual who is blind to become more mobile and more 
self-sufficient; 
"(4) mobility training, braille instruction, and other services 
.and equipment to help an older individual who is bUnd adjust 
to blindness; 
"(5) guide services, reader services, and transportation; 
"(6) any other appropriate service designed to assist an 
older individual who is blind in coping with daily living activi-
ties, including supportive services and rehabilitation teaching 
services; 
"(7) independent living skills training, information and 
referral services, peer counseling, and individual advocacy 
training; and 
"(8) other independent living services. 
"(f) MATCHING FUNDS.— 
"(1) IN GENERAL.—^The Commissioner may not make a grant 
under subsection (a) unless the State involved agrees, with 
respect to the costs of the program to be carried out by the 
State pursuant to such subsection, to make available (directly 
or through donations from public or private entities) non-Fed-
eral contributions toward such costs in an amount that is 
not less than $1 for each $9 of Federal funds provided in 
the grant. 
^(2) DETERMINATION OF AMOUNT CONTRIBUTED.—Non-Fed-
eral contributions required in paragraph (1) may be in cash 
or in kind, fairly evaluated, incluoung plant, equipment, or 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1239 
services. Amounts provided by the Federal Crovemment, or 
services assisted or subsidized to any significant extent by 
the Federal Government, may not be included in determining 
the amount of such non-Federsd contributions. 
"(g) CERTAIN EXPENDITURES OF GRANTS.—A State may expend 
a grant under subsection (a) to carry out the purposes specified 
in subsection (d) through grants to public and nonprofit private 
agencies or organizations. 
"(h) REQUIREMENT REGARDING STATE PLAN.—The Commis-
sioner may not make a grant under subsection (a) unless the 
State involved agrees that, in carrying out subsection (d)(1), the 
State will seek to incorporate into the State plan under section 
704 any new methods and approaches relating to independent living 
services for older individuals who are blind, 
"(i) APPUCATION FOR GRANT.— 
"(1) IN GENERAL.—^The Conmiissioner may not make a grant 
under subsection (a) unless an application for the grant is 
submitted to the Commissioner and the application is in such 
form, is made in such manner, and contains such agreements, 
assurances, and information as the Commissioner determines 
to be necessary to carry out this section (including agreements, 
assurances, and iiiformation with respect to any grants under 
subsectio'tt, (j 
X4 
J). 
"(2) CoNTENvTS.—An application for a grant under this sec-
tion shall contaifi—^-'. 
"(A) an assurance that the agency described in sub-
section (aX2) will prepare and submit to the Commissioner 
a report, at the end of each fiscal year, with respect to 
each project or program the agency operates or administers 
under this section, whether directly or through a grant 
or contract, which report shall contain, at a minimum, 
information oij— 
"(i) the number and types of older individuals who 
are blind and are receiving services; 
"(ii) the types of services provided and the number 
of older individuals who are bUnd and are receiving 
each type of service; 
"(iii) the sources and amounts of funding for the 
operation of each project or program; 
"(iv) the amounts and percentages of resources 
committed to each type of service provided; 
"(v) data on actions taken to employ, and advance 
in employment, qualified individuals with significant 
disabilities, including older individuals who are blind; 
and 
"(vi) a comparison, if appropriate, of prior year 
activities with the activities of the most recent year; 
"(B) an assurance that the agency will— 
"(i) provide services that contribute to the mednte-
nance of, or the increased independence of, older 
individuals who are blind; and 
"(ii) engage in— 
"(I) 
capacity-building 
activities, 
including 
collaboration with other agencies and organiza-
tions; 
"(II) activities to promote community aware-
ness, involvement, and assistance; and 
112 STAT. 1240 
PUBLIC LAW 105-220—AUG. 7, 1998 
"(HI) outreach efforts; and 
"(C) an assurance that the apphcation is consistent 
with the State plan for providing independent Hving serv-
ices required by section 704. 
"(j) AMOUNT OF FORMULA GRANT.— 
"(1) IN GENERAL.—Subject to the availability of appropria-
tions, the amount of an allotment under subsection (a) for 
a State for a fiscal year shall be the greater of— 
"(A) the amount determined under paragraph (2); or 
"(B) the amount determined under paragraph (3). 
"(2) MINIMUM ALLOTMENT.— 
' 
"(A) STATES.—In the case of the several States, the 
District of Columbia, and the Commonwealth of Puerto 
Rico, the amount referred to in subparagraph (A) of para-
graph (1) for a fiscal year is the greater of— 
"(i) $225,000; or 
"(ii) an amount equal to Va of 1 percent of the 
amount appropriated under section 753 for the fiscal 
year and available for allotments under subsection (a). 
"(B) CERTAIN TERRITORIES.—In the case of Guam, 
American Samoa, the United States Virgin Islands, and 
the Commonwealth of the Northern Mariana Islands, the 
amount referred to in subparagraph (A) of paragraph (1) 
for a fiscal year is $40,000. 
"(3) FORMULA.—^The amount referred to in subparagraph 
(B) of paragraph (1) for a State for a fiscal year is the product 
of— 
"(A) the amount appropriated under section 753 and 
available for allotments under subsection (a); and 
"(B) a percentage equal to the quotient of— 
"(i) an amount equal to the number of individuals 
residing in the State who are not less than 55 years 
of age; divided by 
"(ii) an amount equal to the number of individuals 
residing in the United States who are not less than 
55 years of age. 
"(4) DISPOSITION OF CERTAIN AMOUNTS.— 
"(A) GRANTS.—From the amounts specified in subpara-
graph (B), the Commissioner may make grants to States 
whose population of older individuals who are blind has 
a substantial need for the services specified in subsection 
(d) relative to the populations in other States of older 
individuals who are blind. 
"(B) AMOUNTS.—^The amounts referred to in subpara-
graph (A) are any amounts that are not paid to States 
under subsection (a) as a result of— 
"(i) the failure of any State to submit an applica-
tion under subsection (i); 
"(ii) the failure of any State to prepare within 
a reasonable period of time such application in compli-
ance with such subsection; or 
"(iii) any State informing the Commissioner that 
the State does not intend to expend the full amount 
of the allotment made for the State under subsection 
(a). 
"(C) CONDITIONS.—^The Commissioner may not make 
a grant under subparagraph (A) unless the State involved 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1241 
agrees that the grant is subject to the same conditions 
as grants made under subsection (a). 
"SEC. 753. AUTHORIZATION OF APPROPRIATIONS. 
29 USC 796/. 
"There are authorized to be appropriated to carry out this 
chapter such sums as may be necessary for each of the fiscal 
years 1999 through 2003.". 
SEC. 411. REPEAL. 
Title VIII of the Rehabilitation Act of 1973 (29 U.S.C. 797 
et seq.) is repealed. 
SEC. 412. HELEN KELLER NATIONAL CENTER ACT. 
(a) GENERAL AUTHORIZATION OF APPROPRIATIONS.—The first 
sentence of section 205(a) of the Helen Keller National Center 
Act (29 U.S.C. 1904(a)) is amended by striking "1993 through 1997" 
and inserting "1999 through 2003". 
(b) HELEN KELLER NATIONAL CENTER FEDERAL ENDOWMENT 
FUND.—The first sentence of section 208(h) of such Act (29 U.S.C. 
1907(h)) is amended by striking "1993 through 1997" and inserting 
"1999 through 2003". 
(c) REGISTRY.—Such Act (29 U.S.C. 1901 et seq.) is amended 
by adding at the end the following: 
"SEC. 209. REGISTRY. 
29 USC 1908. 
"(a) IN GENERAL.—^To assist the Center in providing services 
to individuals who are deaf-blind, the Center may establish and 
maintain registries of such individuals in each of the regional 
field offices of the network of the Center. 
"(b) VOLUNTARY PROVISION OF INFORMATION.^NO individual 
who is deaf-blind may be required to provide information to the 
Center for any purpose with respect to a registry established under 
subsection (a). 
"(c) NONDISCLOSURE.—^The Center (including the network of 
the Center) may not disclose information contained in a registry 
established under subsection (a) to any individual or organization 
that is not affiliated with the Center, unless the individual to 
whom the information relates provides specific written authoriza-
tion for the Center to disclose the information. 
"(d) PRIVACY RIGHTS.—^The requirements of section 552a of Applicability, 
title 5, United States Code (commonly known as the 'Privacy Act 
of 1974') shall apply to personally identifiable information contained 
in the registries established by the Center under subsection (a), 
in the same manner and to the same extent as such requirements 
apply to a record of an agency. 
"(e) REMOVAL OF INFORMATION.—On the request of an individ-
ual, the Center shall remove all information relating to the individ-
ual from any registry established under subsection (a).". 
SEC. 413. PRESIDENT'S COMMITTEE ON EMPLOYMENT OF PEOPLE 
WITH DISABILITIES. 
Section 2(2) of the joint resolution approved July 11, 1949 
(63 Stat. 409, chapter 302; 36 U.S.C. 155b(2)) is amended by insert-
ing "solicit," before "accept,". 
SEC. 414. CONFORMING AMENDMENTS. 
(a) RANDOLPH-SHEPPARD ACT.—Section 2(e) of the Act of June 
20, 1936 (commonly known as the "Randolph-Sheppard Act") (49 
112 STAT. 1242 
PUBLIC LAW 105-220—AUG. 7, 1998 
Stat. 1559, chapter 638; 20 U.S.C. 107a(e)) is amended by striking 
"section lOKaXlXA)" and inserting "section 101(aX2XA)''. 
(b) TECHNOLOGY-RELATED ASSISTANCE FOR INDIVIDUALS WITH 
DISABILITIES ACT OF 1988.— 
(1) Section 101(b) of the Technology-Related Assistance 
for Individuals With Disabilities Act of 1988 (29 U.S.C. 2211(b)) 
is amended— 
(A) in paragraph (7)(AXiiXII), by striking "individual-
ized written rehabilitation program" and inserting "individ-
ualized plan for emplojrment"; and 
(B) in paragraph (9)(B), by striking "(as defined in 
section 7(25) of such Act (29 U.S.C. 706(25)))'* and inserting 
"(as defined in section 7 of such Act)". 
(2) Section 
102(eX23XA) of such Act (29 U.S.C. 
2212(eX23XA)) is amended by striking "the assurance provided 
by the State in accordance with section 101(aX36) of the 
Rehabilitation Act of 1973 (29 U.S.C. 721(aX36))" and inserting 
"the portion of the State plan provided by the State in accord-
ance with section 101(aX21) of the RehabiUtation Act of 1973". 
(c) TITLE 38, UNITED STATES CODE.—Sections 3904(b) and 
7303(b) of title 38, United States Code, are amended by striking 
"section 204(bX2) of the Rehabilitation Act of 1973 (29 U.S.C. 
762(b)(2)) (relating to the establishment and support of Rehabilita-
tion Engineering Research Centers)" and inserting "section 204(b)(3) 
of the Rehabilitation Act of 1973 (relating to the establishment 
and support of Rehabilitation Engineering Research Centers)". 
(d) NATIONAL SCHOOL LUNCH ACT.—Section 27(aXlXB) of the 
National School Lunch Act (42 U.S.C. 1769h(a)(lXB)) is amended 
by striking "section 7(8) of the Rehabilitation Act of 1973 (29 
U.S.C. 706(8))" and inserting "section 7 of the Rehabilitation Act 
of 1973". 
(e) DOMESTIC VOLUNTEER SERVICE ACT OF 1973.—Section 
421(11) of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 
5061(11)) is amended by striking "section 7(8XB) of the Rehabilita-
tion Act of 1973 (29 U.S.C. 706(8XB))" and inserting "section 
7(20)(B) of the Rehabilitation Act of 1973". 
(f) ENERGY CONSERVATION AND PRODUCTION Acr.—Section 
412(5) of the Energy Conservation and Production Act (42 U.S.C. 
6862(5)) is amended by striking "a handicapped individual as 
defined in section 7(7) of the Rehabilitation Act of 1973" and insert-
ing "an individual with a disabiUty, as defined in section 7 of 
the Rehabilitation Act of 1973". 
(g) NATIONAL AND COMMUNITY SERVICE ACT OF 1990.—Section 
101(12) of the National and Community Service Act of 1990 (42 
U.S.C. 12511(12)) is amended by striking "section 7(8XB) of the 
Rehabilitation Act of 1973 (29 U.S.C. 706(8XB))" and inserting 
"section 7(20XB) of the Rehabilitation Act of 1973". 
TITLE V—GENERAL PROVISIONS 
20 use 9271. 
SEC. 501. STATE UNIFIED PLAN. 
(a) DEFINITION OF APPROPRIATE SECRETARY.—^In this section, 
the term "appropriate Secretary" means the head of the Federal 
agency who exercises administrative authority over an activity or 
program described in subsection (b). 
(b) STATE UNIFIED PLAN.— 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1243 
(1) IN GENERAL.—A State may develop and submit to the 
appropriate Secretaries a State unified plan for 2 or more 
of the activities or programs set forth in para^aph (2), except 
that the State may include in the plan the activities described 
in paragraph (2)(A) only with the prior approval of the legisla-
ture of the State. The State unified plan shall cover one or 
more of the activities set forth in subparagraphs (A) through 
(D) of paragraph (2) and may cover one or more of the activities 
set forth in subparagraphs (E) through (O) of paragraph (2). 
(2) ACTIVITIES.—^The activities and programs referred to 
in paragraph (1) are as follows: 
(A) Secondary vocational education programs author-
ized under the Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2301 et seq.). 
(B) Postsecondary vocational education programs 
authorized under the Carl D. Perkins Vocational and 
Applied Technology Education Act (20 U.S.C. 2301 et seq.). 
(C) Activities authorized under title I. 
(D) Activities authorized under title II. 
(E) Programs authorized under section 6(d) of the Food 
Stamp Act of 1977 (7 U.S.C. 2015(d)). 
(F) Work programs authorized under section 6(o) of 
the Food Stamp Act of 1977 (7 U.S.C. 2015(o)). 
(G) Activities authorized under chapter 2 of title II 
of the Trade Act of 1974 (19 U.S.C. 2271 et seq.). 
(H) Programs authorized under the Wagner-Peyser Act 
(29 U.S.C. 49 et seq.). 
(I) Programs authorized under title I of the Rehabilita-
tion Act of 1973 (29 U.S.C. 720 et seq.), other than section 
112 of such Act (29 U.S.C. 732). 
(J) Activities authorized under chapter 41 of title 38, 
United States Code. 
(K) Programs authorized under State unemployment 
compensation laws (in accordance with applicable Federal 
law). 
(L) Programs authorized under part A of title IV of 
the Social Security Act (42 U.S.C. 601 et seq.). 
(M) Programs authorized under title V of the Older 
Americans Act of 1965 (42 U.S.C. 3056 et seq.). 
(N) Training activities carried out by the Department 
of Housing and Urban Development. 
(O) Programs authorized under the Community Serv-
ices Block Grant Act (42 U.S.C. 9901 et seq.). 
(c) REQUIREMENTS.— 
(1) IN GENERAL.—^The portion of a State unified plan cover-
ing an activity or program described in subsection (b) shall 
be subject to the requirements, if any, applicable to a plan 
or application for assistance under the Federal statute authoriz-
ing the activity or program. 
(2) ADDITIONAL SUBMISSION NOT REQUIRED.—A State that 
submits a State unified plan covering an activity or program 
described in subsection (b) that is approved under subsection 
(d) shall not be required to submit any other plan or application 
in order to receive Federal funds to carry out the activity 
or program. 
(3) COORDINATION.—A State unified plan shall include— 
112 STAT. 1244 
PUBLIC LAW 105-220—AUG. 7, 1998 
(A) a description of the methods used for joint planning 
and coordination of the programs and activities included 
in the unified plan; and 
(B) an assurance that the methods included an oppor-
tunity for the entities responsible for planning or admin-
istering such programs and activities to review and com-
ment on all portions of the unified plan. 
(d) APPROVAL BY THE APPROPRIATE SECRETARIES.— 
(1) JURISDICTION.—^The appropriate Secretary shall have 
the authority to approve the portion of the State unified plan 
relating to the activity or program over which the appropriate 
Secretary exercises administrative authority. On the approval 
of the appropriate Secretary, the portion of the plan relating 
to the activity or program shall be implemented by the State 
pursuant to the applicable portion of the State unified plan. 
(2) APPROVAL.— 
(A) IN GENERAL.—A portion of the State unified plan 
covering an activity or program described in subsection 
(b) that is submitted to the appropriate Secretary under 
' 
this section shall be considered to be approved by the 
appropriate Secretary at the end of the 90-day period begin-
ning on the day the appropriate Secretary receives the 
portion, unless the appropriate Secretary makes a written 
determination, during the 90-day period, that the portion 
is not consistent with the requirements of the Federal 
statute authorizing the activity or program including the 
criteria for approval of a plan or application, if any, under 
such statute or the plan is not consistent with the require-
ments of subsection (c)(3). 
(B) SPECIAL RULE.—In subparagraph (A), the term "cri-
teria for approval of a State plan', relating to activities 
carried out under title I or II or under the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 
U.S.C. 2301 et seq.), includes a requirement for agreement 
between the State and the appropriate Secretary regarding 
State performance measures, including levels of perform-
£Lnce. 
20 use 9272. 
SEC. 502. PEFXNITIONS FOR INDICATORS OF PERFORMANCE. 
(a) IN GENERAL.—In order to ensure nationwide comparability 
of performance data, the Secretary of Labor and the Secretary 
of Education, after consultation with the representatives described 
in subsection (b), shall issue definitions for indicators of performance 
and levels of performance established under titles I and II. 
(b) REPRESENTATIVES.—^The representatives referred to in sub-
section (a) are representatives of States (as defined in section 101) 
and political subdivisions, business and industry, employees, eligible 
providers of employment and training activities (as defined in sec-
tion 101), educators, participants in activities carried out under 
this Act, State Directors of adult education, providers of adult 
education, providers of literacy services, individuals with expertise 
in serving the employment and training needs of eligible youth 
(as defined in section 101), parents, and other interested parties, 
with expertise regarding activities authorized under this Act. 
20 use 9273. 
SEC. 503. INCENTIVE GRANTS. 
Effective date. 
(a) IN GENERAL.—^Beginning on July 1, 2000, the Secretary 
shall award a grant to each State that exceeds the State adjusted 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1245 
levels of performance for title I, the expected levels of performance 
for title II, and the levels of performance for programs under Public 
Law 88-210 (as amended; 20 U.S.C. 2301 et seq.), for the purpose 
of carrying out an innovative program consistent with the require-
ments of any one or more of the programs within title I, title 
II, or such Public Law, respectively. 
(b) APPLICATION.— 
(1) IN GENERAL.—^The Secretary may provide a grant to 
a State under subsection (a) only if the State submits an 
application to the Secretary for the grant that meets the 
requirements of paragraph (2). 
(2) REQUIREMENTS.—^The Secretary may review an applica-
tion described in paragraph (1) only to ensure that the applica-
tion contains the following assurances: 
(A) The legislature of the State was consulted with 
respect to the development of the application. 
(B) The application was approved by the Grovemor, 
the eligible agency (as defined in section 203), and the 
State agency responsible for programs established under 
Public Law 88-210 (as amended; 20 U.S.C. 2301 et seq.). 
(C) The State and the eligible agency, as appropriate, 
exceeded the State adjusted levels of performance for title 
I, the expected levels of performance for title II, and the 
levels of performance for programs under Public Law 88-
210 (as amended; 20 U.S.C. 2301 et seq.). 
(c) AMOUNT.— 
(1) MINIMUM AND MAXIMUM GRANT AMOUNTS.—Subject to 
paragraph (2), a grant provided to a State under subsection 
(a) shall be awarded in an amount that is not less than $750,000 
and not more than $3,000,000. 
(2) PROPORTIONATE REDUCTION.—If the amount available 
for grants under this section for a fiscal year is insufficient 
to award a grant to each State or eligible agency that is 
eligible for a grant, the Secretary shall reduce the minimum 
and maximum grant amount by a uniform percentage. 
SEC. 504. PRIVACY. 
20 USC 9274. 
(a) 
SECTION 144 
OF THE GENERAL EDUCATION PROVISIONS 
ACT.—^Nothing in this Act shall be construed to supersede the 
privacy protections afforded parents and students under section 
444 of the General Education Provisions Act (20 U.S.C. 1232g), 
as added by the Family Educational Rights and Privacy Act of 
1974 (section 513 of Public Law 93-380; 88 Stat. 571). 
(b) PROHIBITION ON DEVELOPMENT OF NATIONAL DATABASE.— 
(1) IN GENERAL.—^Nothing in this Act shall be construed 
to permit the development of a national database of personally 
identifiable information on individuals receiving services under 
title I of this Act. 
(2) LIMITATION.—^Nothing in paragraph (1) shall be con-
strued to prevent the proper administration of national pro-
grams under subtitles C £ind D of title I of this Act or to 
carry out program management activities consistent with title 
I of this Act. 
SEC. 505. BUY-AMERICAN REQUIREMENTS. 
20 USC 9275. 
(a) COMPLIANCE WITH BUY AMERICAN ACT.—^None of the funds 
made available in this Act may be expended by an entity luiless 
112 STAT. 1246 
PUBLIC LAW 105-220—AUG. 7, 1998 
20 use 9276. 
^plicability. 
Deadlines. 
Federal Roister, 
puUications. 
the entity agrees that in expending the funds the entity will comply 
with the Buy American Act (41 U.S.C. 10a et seq.). 
(b) 
SENSE 
OF 
THE 
CONGRESS; REQUIREMENT REGARDING 
NOTICE.— 
(1) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PROD-
UCTS.—In the case of any equipment or product that may 
be authorized to be purchased with financial assistance pro-
vided using funds made available under this Act, it is the 
sense of the Congress that entities receiving the assistance 
should, in expending the assistance, purchase only American-
made equipment and products. 
(2) NOTICE TO RECIPIENTS OF ASSISTANCE.—In providing 
financial assistance using funds made available under this 
Act, the head of each Federal agency shall provide to each 
recipient of the assistance a notice describing the statement 
made in paragraph (1) by Congress. 
(c) PROHIBITION OF CONTRACTS WITH PERSONS FALSELY LABEL-
ING PRODUCTS AS MADE IN AMERICA.—If it has been finally deter-
mined by a court or Federal agency that any person intentionally 
affixed a label bearing a "Made in America" inscription, or any 
inscription with the same meaning, to any product sold in or shipped 
to the United States that is not made in the United States, the 
person shall be ineligible to receive any contract or subcontract 
made with funds made available in this subtitle, pursuant to the 
debarment, suspension, and ineligibility procedures described in 
sections 9.400 through 9.409 of title 48, Code of Federal Regulations, 
as such sections are in effect on the date of enactment of this 
Act, or pursuant to any successor regulations. 
SEC. 506. TRANSITION PROVISIONS. 
(a) WORKFORCE INVESTMENT SYSTEMS.—^The Secretary of Labor 
shall take such actions as the Secretary determines to be appro-
priate to provide for the orderly transition from any authority 
under the Job Training Partnership Act (29 U.S.C. 1501 et seq.) 
to the workforce investment systems established under title I of 
this Act. Such actions shall include the provision of guidance relat-
ing to the designation of State workforce investment boards, local 
workforce investment areas, and local workforce investment boards 
described in such title. 
(b) ADULT EDUCATION AND LITERACY PROGRAMS.— 
(1) IN GENERAL.—^The Secretary of Education shall take 
such actions as the Secretary determines to be appropriate 
to provide for the transition from any authority under the 
Adult Education Act (20 U.S.C. 1201 et seq.) to any authority 
under the Adult Education and Family Literacy Act (as added 
by title II of this Act). 
(2) LIMITATION.—The authority to take actions under para-
graph (1) shsdl apply only for the 1-year period beginning 
on the date of the enactment of this Act. 
(c) REGULATIONS.— 
(1) INTERIM FINAL REGULATIONS.—^Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Labor shall develop and publish in the Federal Register 
interim final regulations relating to the transition to, and 
implementation of, this Act. 
(2) FINAL REGULATIONS.—Not later than December 31, 
1999, the Secretary shall develop and publish in the Federal 
PUBLIC LAW 105-220—AUG. 7, 1998 
112 STAT. 1247 
Register final regulations relating to the transition to, and 
implementation of, this Act. 
(d) EXPENDITURE OF FUNDS DURING TRANSITION.— 
(1) IN GENERAL.—Subject to paragraph (2) and in accord-
ance with regulations developed under subsection (b). States, 
grant recipients, administrative entities, and other recipients 
of financial assistance under the Job Training Partnership Act 
(29 U.S.C. 1501 et seq.) or under this Act may expend funds 
received under the Job Training Partnership Act or under 
this Act, prior to July 1, 2000, in order to plan and implement 
programs and activities authorized under this Act. 
(2) ADDITIONAL REQUIREMENTS.—Not to exceed 2 percent 
of any allotment to any State from amounts appropriated under 
the Job Training Partnership Act or under this Act for fiscal 
year 1998 or 1999 may be made available to carry out para-
graph (1) and not less than 50 percent of any such amount 
used to carry out paragraph (1) shall be made available to 
local entities for the purposes described in such paragraph. 
(e) REORGANIZATION.—^ot later than 1 year after the date Deadline, 
of the enactment of this Act, the Secretary of Labor shall reorganize 
and ahgn functions within the Department of Labor and within 
the Employment and Training Administration in order to carry 
out the duties and responsibilities required by this Act (and related 
laws) in an effective and efficient manner. 
SEC. 507. EFFECTIVE DATE. 
20 USC 9201 
Except as otherwise provided in this Act, this Act and the 
amendments made by this Act, shall take effect on the date of 
the enactment of this Act. 
Approved August 7, 1998. 
LEGISLATIVE HISTORY—H.R. 1385 (S. 1186): 
HOUSE REPORTS: Nos. 105-93 (Comm. on Education and the Workforce) and 
105-659 (Comm. of Conference). 
SENATE REPORTS: No. 105-109 accompanying S. 1186 (Comm. on Labor and 
Human Resources). 
CONGRESSIONAL RECORD: 
Vol. 143 (1997): May 16, considered and passed House. 
Vol. 144 (1998): May 1, 5, considered and passed Senate, amended. 
July 30, Senate agreed to conference report. 
July 31, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998): 
Aug. 7, Presidential remarks.