Comprehensive Employment and Training Act Amendments
PL 95-524 (S.2570), enacted 10/27/1978

PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1909 
Public Law 95-524 
T •-'• 
95th Congress 
An Act 
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To amend the Comprehensive Employment and Training Act of 1973 to provide 
Oct. 27, 1978 
improved employment and training services, to extend the authorization, and 
[S. 2570] 
for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may Comprehensive 
be cited as the "Comprehensive Employment and Training Act Employment and 
Amendments of 1978". 
Traming Act 
Amendments or 
1 Q7ft 
COMPREHENSIVE EMPLOYMENT AND TRAINING ACT REAUTHORIZATION 
o« T?^/-O/M 
29 u s e 801 note. 
SEC. 2. The Comprehensive Employment and Training Act of 1973 
is amended to read as follows: 
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SHORT TITLE 
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"SECTION 1. This Act, with the following table of contents, may 29 USC 801 note, 
be cited as the 'Comprehensive Employment and Training Act'. 
"TABLE OF CONTENTS 
"Sec. 1. Short title. 
"Sec. 2. Statement of purpose. 
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"Sec. 3. Definitions. 
"TITLE I—ADMINISTRATIVE PROVISIONS 
"PAET A—OBGANIZATIONAL PROVISIONS 
"Sec. 101. Prime sponsors. 
"Sec. 102. Authority of Secretary to provide services. 
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"Sec. 103. Comprehensive employment and training plan. 
"Sec. 104. Review of plans. 
"Sec. 105. Governor's coordination and special services plan. 
"See. 106. Complaints and sanctions. 
"Sec. 107. Judicial review. 
"Sec. 108. Reallocation. 
"Sec. 109. Prime sponsor's planning council. 
"Sec. 110. State employment and training council. 
"Sec. 111. Consultation. 
"Sec. 112. Authorization of appropriations. 
"PAET B—GENERAL PROVISIONS 
"Sec. 121. Conditions applicable to all programs. 
"Sec. 122. Special conditions applicable to public service employment. 
"Sec. 123. Special provisions. 
"Sec. 124. Wages and allowances. 
"Sec. 125. Labor standards. 
"Sec. 126. Secretary's authority and performance standards. 
"Sec. 127. Reports. 
"Sec. 128. Services and property. 
"Sec. 129. Utilization of services and facilities. 
"Sec. 130. Interstate agreements. 
"Sec. 131. Prohibition against political activities. 
"Sec. 132. Nondiscrimination. 
"Sec. 133. Records, audits, and investigations. 
"Sec. 134. Bonding. 
"Sec. 135. OflSce of Management Assistance. 
92 STAT. 1910 
PUBLIC LAW 95-524—OCT. 27, 1978 
"TITLE II—COMPREHENSIVE EMPLOYMENT AND TRAINING SERVICES 
"PART A—FINANCIAL ASSISTANCE PROVISIONS 
"Sec. 201. Purpose of program. 
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"Sec. 202. Allocation of funds. 
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"Sec. 203. Conditions for receipt of financial assistance. 
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"Sec. 204. Supplemental vocational education assistance. 
"Sec. 205. Participant assessment. 
"PART B—SERVICES FOR THE ECONOMICALLY DISADVANTAGED 
"Sec. 211. Description of program. 
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"Sec. 212. Limitations on use of funds. 
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"Sec. 213. Eligibility for participation. 
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"Sec. 214. Services for youth. 
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"Sec. 215. Services for older workers. 
"Sec. 216. Services for public assistance recipients. 
"PART C—UPGRADING AND RETRAINING 
"Sec. 221. Occupational upgrading and retraining. 
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"PART D—TRANSITIONAL EMPLOYMENT OPPORTUNITIES FOR THE 
ECONOMICALLY DISADVANTAGED 
"Sec. 231. Statement of purpose. 
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"Sec. 232. Financial assistance. 
"Sec. 233. Allocation of funds. 
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"Sec. 234. Expenditure of funds. 
"Sec. 235. Prime sponsors and program agents. 
"Sec. 236. Eligibility. 
"Sec. 237. Wages. 
"TITLE III—SPECIAL FEDERAL RESPONSIBILITIES 
"PART A—SPECIAL NATIONAL PROGRAMS AND ACTIVITIES 
"Sec. 301. Special programs and activities. 
"Sec. 302. Native American employment and training programs. 
"Sec. 303. Migrant and seasonal farmworker employment and training programs. 
"Sec. 304. Job search and relocation assistance. 
"Sec. 305. Veterans information and outreach. 
"Sec. 306. Programs for the handicapped. 
"Sec. 307. Partnership programs. 
"Sec. 308. Projects for middle-aged and older workers. 
"PART B—RESEARCH, TRAINING, AND EVALUATION 
"Sec. 311. Research. 
"Sec. 312. Labor market information and job bank program. 
"Sec. 313. Evaluation. 
"Sec. 314. Training and technical assistance. 
"Sec. 315. National Occupational Information Coordinating Committee. 
"Sec. 316. Evaluations and incentive grants. 
"Sec. 317. Voucher demonstration projects. 
"Sec. 318. Employment and training activities to stimulate local private economic 
development. 
"TITLE IV—YOUTH PROGRAMS 
"Sec. 401. Statement of purpose. 
"Sec. 402. Definitions. 
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"PART A—YOUTH EMPLOYMENT DEMONSTRATION PROGRAMS 
"Sec. 411. Statement of purpose. 
PUBLIC LAW 95-524^0CT. 27, 1978 
92 STAT. 1911 
"Subpart 1—Youth Incentive Entitlement Pilot Projects 
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"Sec. 416. Entitlement pilot projects authorized. 
"Sec. 417. Employment guarantees. 
"Sec. 418. Selecting prime sponsors. 
"Sec. 419. Special provisions. 
"Sec. 420. Reports. 
"Subi)art 2—Youth Community Conservation and Improvement Projects 
"Sec. 421. Statement of purpose. 
"Sec. 422. Definitions. 
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"Sec. 423. Allocation of funds. 
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"Sec. 424. Community conservation and improvement youth employment projects. 
"Sec. 425. Project applications. 
"Sec. 426. Proposed agreements. 
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"Sec. 427. Approval of agreements. 
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"Sec. 428. Work limitation. 
"Subparts—Youth Employment and Training Programs 
"Sec. 431. Statement of purpose. 
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"Sec. 432. Programs authorized. 
"Sec. 433. Allocation of funds. 
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"Sec. 434. Eligible applicants. 
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"Sec. 435. Eligible participants. 
"Sec. 436. Conditions for receipt of financial assistance. 
"Sec. 437. Review of plans by Secretary. 
"Sec. 438. Secretary's discretionary projects. 
"Sec. 439. Youth employment incentive and social bonus program. 
"Subpart 4—General Provisions 
"Sec. 441. Distribution of funds, ' t ' 
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"Sec. 442. Wage provisions. 
"Sec. 443. Special conditions. 
"Sec. 444. Special provisions for subparts 2 and 3. 
"Sec. 445. Academic credit, education credit, counseling and placement services, 
and basic skills development, 
"Sec. 446. Disregarding earnings. 
"Sec. 447. Relation to other provisions. 
"PART B — J O B CORPS 
"Sec. 450. Statement of purpose. 
"Sec. 451. Establishment of the Job Corps. 
"Sec. 452. Individuals eligible for the Job Corps. 
"Sec. 453. Screening and selection of applicants: general provisions. 
"Sec. 454. Screening and selection : special limitations. 
"Sec. 455. Enrollment and assignment. 
"Sec. 456. Job Corps Centers. 
"Sec. 457. Program activities. 
"Sec. 458. Allowances and support. 
"Sec. 459. Standards of conduct. 
"Sec. 460. Community participation. 
"Sec. 461. Counseling and job placement. 
"Sec. 462. Experimental and developmental projects. 
"Sec. 463. Advisory boards and committees. 
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"Sec. 464. Participation of the States. 
"Sec. 465. Application of provisions of Federal law. 
"Sec. 466. Special provisions. 
"Sec. 467. General provisions. 
"Sec. 468. Utilization of funds. 
"PART C—SUMMER YOUTH PBOGRAM 
"Sec. 481. Establishment of program. 
"Sec. 482. Prime sponsors. 
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"Sec. 483. Financial assistance 
"Sec. 484. Secretarial authority. 
92 STAT. 1912 
PUBLIC LAW 95-524—OCT. 27, 1978 
"TITLE V—NATIONAL COMMISSION FOR EMPLOYMENT POLICY 
"Sec. 501. Statement of purpose. 
"Sec. 502. Commission established. 
"Sec. 503. Functions of tlie Commission. 
"Sec. 504. Administrative provisions. 
"Sec. 505. Reports. 
"TITLE VI—COUNTERCYCLICAL PUBLIC SERVICE EMPLOYMENT 
PROGRAM 
"Sec. 601. Statement of purpose. 
"Sec. 602. Report on appropriations. 
"Sec. 603. Financial assistance. 
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"Sec. 604. Allocation of funds. 
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"Sec. 605. Expenditure of funds. 
"Sec. 606. Prime sponsors and program agents. 
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"Sec. 607. Eligibility. 
"Sec. 608. Wages. 
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"Sec. 609. Wage supplementation. 
"Sec. 610. Utilization of funds. 
"TITLE VII—PRIVATE SECTOR OPPORTUNITIES FOR THE 
ECONOMICALLY DISADVANTAGED 
"Sec. 701. Statement of purpose. 
"Sec. 702. Financial assistance. 
"Sec. 703. Conditions for receipt of financial assistance. 
"Sec. 704. Private industry councils. 
"Sec. 705. Program activities. 
"Sec. 706. Report. 
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"TITLE VIII—YOUNG ADULT CONSERVATION CORPS 
"Sec. 801. Statement of purpose. 
"Sec. 802. Establishment of Young Adult Conservation Corps. 
"Sec. 803. Selection of enroUees. 
"Sec. 804. Activities of the Corps. 
"Sec. 805. Conditions applicable to Corps enroUees. 
"Sec. 806. State and local programs. 
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"Sec. 807. Secretarial reports. 
"Sec. 808. Antidiscrimination. 
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"Sec. 809. Transfer of funds. 
" S T A T E M E N T OF PURPOSE 
29 use 801. 
"SEC. 2. It is the purpose of this Act to provide job training and 
employment opportunities for economically disadvantaged, unem-
ployed, or underemployed persons which will result in an increase in 
their earned income, and to assure that training and other services 
lead to maximum employment opportunities and enhance self-suffi-
ciency by establishing a flexible, coordinated, and decentralized system 
of Federal, State, and local programs. It is further the purpose of this 
Act to provide for the maximum feasible coordination of plans, pro-
grams, and activities under this Act with economic development, com-
munity development, and related activities, such as vocational educa-
tion, vocational rehabilitation, public assistance, self-employment 
training, and social service programs. 
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"DEFINITIONS 
29 use 802. 
"SEC. 3. As used in this Act— 
"(1) The term 'academic credit' means credit for education, 
training, or work experience applicable toward a secondary school 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT., 1913 
diploma, a postsecondary degree, or an accredited certificate of 
completion, consistent with applicable State law, regulation, and 
policy and the requirements of an accredited educational agency 
or institution in a State. 
"(2) (A) Except as provided in subparagraph (B), the term 
'area of substantial unemployment' means any area of sufficient 
size and scope to sustain a public service employment program 
and which has an average rate of unemployment of at least 6.5 
percent for the most recent 12 months as determined by the 
Secretary. 
"(B) With respect to determinations made for fiscal year 1979, 
and for parts A, B, and C of title II for any fiscal year, such Post, pp. 1950, 
term means any area of sufficient size and scope to sustain such 1954, 1956. 
a program and which has an average rate of unemployment of at 
least 6.5 percent for any 3 consecutive months within the most 
recent 12-month period as determined by the Secretary. 
"(C) Determinations of areas of substantial unemployment 
shall be made once each fiscal year. 
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"(3) The term 'artificial barriers to employment' means limita-
tions in the hiring, firing, promotion, licensing, and other terms 
and conditions of employment which are not directly related to 
an individual's fitness or ability to perform the duties required 
by the employment position. 
"(4) The term 'community-based organizations' means private 
nonprofit organizations which are representative of comnmnities 
or significant segments of communities and which provide employ-
ment and training services (for example. Opportunities Indus-
trialization Centers, the National Urban League, SER-Jobs for 
Progress, United Way of America, Mainstream, the National 
Puerto Rican Forum, neighborhood groups and organizations, 
community action agencies, community development corporations, 
vocational rehabilitation organizations, rehabilitation facilities 
(as defined in section 7(10) of the Rehabilitation Act of 
1973), agencies serving youth, union-related organizations, and 29 USC 706. 
employer-related nonprofit organizations). 
"(5) The term 'Consumer Price Index' means the 'All Urban 
Consumer Index' as determined by the Secretary of Labor. 
"(6) The term 'disabled veteran' means those veterans described 
in section 2011(1) of title 38, United States Code. 
"(7) The term 'displaced homemaker' means an individual 
who— 
"(A) has not worked in the labor force for a substantial 
number of years but has, during those years, worked in the 
home providing unpaid services for family members; 
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"(B) (i) has been dependent on public assistance or on the 
income of another family member but is no longer supported 
by that income, or (ii) is receiving public assistance on 
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account of dependent children in the home; and 
"(C) is unemployed or underemployed and is experiencing 
difficulty in obtaining or upgrading employment. 
"(8) The term 'economically disadvantaged' means a person 
who (A) receives, or is a member of a family which (i) receives 
cash welfare payments under a Federal, State, or local welfare 
program, or (ii) had a family income during the 6-month period 
92 STAT. 1914 
PUBLIC LAW 95-524—OCT. 27, 1978 
prior to application for the program involved which would have 
qualified such family for such cash welfare payments, subject to 
regulations of the Secretary; (B) has, or is a member of a family 
which has, received a total family income for the 6-month period 
prior to application for the program involved (exclusive of 
unemployment compensation and welfare payments) which, in 
relation to family size, was not in excess of the higher of (i) the 
poverty level determined in accordance with criteria established 
by the Director of the Office of Management and Budget, or (ii) 
70 percent of the lower living standard income level; (C) is a 
foster child on behalf of whom State or local government pay-
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ments are made; or (D) in cases permitted by regulations of the 
Secretary, is a handicapped individual living at home or is an 
individual who is institutionalized or receiving services in, or is 
a client of, a sheltered workshop, prison, hospital, or similar 
institution or in community care. Except for any person who 
'' would be eligible for assistance under title V of the Older Ameri-
42 use 3041. 
cans Act of 1965 or a handicapped individual who is sixteen years 
' ' of age or older, any person claimed as a dependent on another 
person's Federal income tax return under section 151(e) of the 
26 use 151. 
Internal Revenue Code of 1954 for the previous year shall be 
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presumed, unless otherwise demonstrated, to be part of the per-
son's family for the current year. 
"(9) The term 'entry level' means the lowest position in any 
promotional line, as defined locally by collective-bargaining agree-
' ments, past practice, or applicable personnel rules. 
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"(10) The term 'Governor' means the chief executive of any 
• ' State. 
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"(11) The term 'handicapped individual' means any individual 
who has a physical or mental disability which for such individual 
constitutes or results in a substantial handicap to employment. 
"(12) The term 'Hawaiian native' means any individual any 
of whose ancestors were natives, prior to 1778, of the area which 
' • now consists of the Hawaiian Islands. 
"(13) The term 'health care' includes preventive and clinical 
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' medical treatment, family planning services, nutrition services, 
and appropriate psychiatric, psychological, and prosthetic serv-
ices, to the extent any such treatment or services are necessary to 
enable the recipient of employment and training services to obtain 
or retain employment. 
"(14) The terms 'institutions of higher education' and 'post-
'. secondary institutions' mean those institutions defined as institu-
'' tions of higher education in section 1201(a) of the Higher 
20 use 1141. 
Education Act of 1965. 
"(15) (A) Except as provided in subparagraph (B), the term 
'local educational agencies' means agencies as defined in section 
20 use 2461. 
195 (10) of the Vocational Education Act of 1963. 
"(B) For purposes of subpart 3 of part A of title IV, such 
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term means agencies as defined in section 1001(f) of the Elemen-
tary and Secondary Education Act of 1965, as amended by the 
Education Amendments of 1978. 
"(16) The term 'low-income level' means $7,000 with respect 
to income in 1969, and for any later year means that amount 
which bears the same relationship to $7,000 as the Consumer Price 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1915 
Index for that year bears to the Consumer Price Index for 1969, 
rounded to the nearest $1,000. 
"(17) The term 'lower living standard income level' means that 
income level (adjusted for regional, metropolitan, urban, and 
rural differences and family size) determined annually by the 
Secretary based upon the most recent 'lower living family budget' 
issued by the Secretary. 
"(18) The term 'offender' means any adult or juvenile who is 
or has been subject to any stage of the criminal justice process for 
whom employment and training services may be beneficial or who 
requires assistance in overcoming artificial barriers to employ-
ment resulting from a record of arrest or conviction. 
" (19) The term 'project' means, for the purpose of titles 11 and 
VI, a definable task or group of related tasks which will be com- Post, pp. 1950, 
pleted within a definable period of time, has a public service objec- 2003. 
tive, will result in a specific product or accomplishment, and would 
otherwise not be done with existing funds. 
"(20) The term 'project applicants' includes States and agen-
cies thereof, units of general local government and agencies 
thereof or combinations or associations of such governmental 
units when the primary purpose of such combinations or associa-
tions is to assist such governmental units to provide public serv-
ices, special purpose political subdivisions having the power to 
levy taxes and spend funds or serving such special purpose within 
an area served by one or more units of general local government, 
local educational agencies, institutions of higher education, com-
munity-based organizations, community development corpora-
tions, nonprofit 
groups and organizations serving Native 
Americans, and other private nonprofit organizations or institu-
tions engaged in public service. 
"(21) The term 'public assistance' means Federal, State, or 
local government cash payments for which eligibility is deter-
mined by a need or income test. 
"(22) The term 'public service' includes work, including part-
time work, in such fields as environmental quality, health care, 
education, child care, public safety, crime prevention and control, 
prisoner rehabilitation, transportation, recreation, maintenance 
of parks, streets, and other public facilities, solid waste removal, 
pollution control, housing and neighborhood improvements, rural 
development, conservation, beautification, veterans outreach, and 
other fields of human betterment and community improvement. 
"(23) The term 'recipient' means any person, organization, 
unit of government, corporation, or other entity receiving finan-
cial assistance under this Act whether directly from the Secretary, 
or through another recipient by subgrant, contract, subcontract, 
agreement, or otherwise. 
"(24) The term 'Secretary' means the Secretary of Labor. 
"(25) The term 'State' includes the several States, the District 
of Columbia, the Commonwealth of Puerto Rico, the Virgin 
Islands, Guam, the Northern Mariana Islands, American Samoa, 
and the Trust Territory of the Pacific Islands. 
"(26) The term 'supportive services' means services which are 
designed to contribute to the employability of participants, 
enhance their employment opportunities, assist them in retaining 
employment, and facilitate their movement into permanent 
92 STAT. 1916 
PUBLIC LAW 95-524—OCT. 27, 1978 
employment not subsidized under the Act. Supportive services 
may include health care, transportation, temporary shelter, child 
care, and financial counseling and assistance. 
"(27) The term 'underemployed persons' means— 
"(A) persons who are working part time but seeking full-
time work; or 
"(B) persons who are working full time but receiving 
r 
wages not in excess of the higher of either (i) the poverty 
level determined in accordance with criteria as established 
by the Director of the Office of Management and Budget; 
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or (ii) 70 percent of the lower living standard income level. 
"(28) The term 'unemployed persons' means— 
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"(A) persons who are without jobs and who want and are 
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available for work; or 
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"(B) except for purposes of allocation formulas— 
"(i) in cases permitted by regulations of the Secre-
tary, persons who are institutionalized in, or who have 
been released from a prison, hospital, or similar institu-
tion, or are clients of a sheltered workshop; or 
"(ii) adults who receive, or whose families receive, 
supplemental security income or money payments pursu-
ant to a State plan approved under title I, IV, X, or 
42 use 301, 
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XVI of the Social Security Act or would, as defined 
601,1201,1381. 
in regulations to be issued by the Secretary, be eligible 
for such payments but for the fact that both parents 
are present in the home (I) who are determined by the 
Secretary of Labor, in consultation with the Secretary 
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of Health, Education, and Welfare, to be available for 
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work and (II) who are either persons without jobs, 
or persons working in jobs providing insufficient income 
to support their families without welfare assistance. 
The determination of whether persons are without jobs shall be 
made in accordance with the criteria used by the Bureau of Labor 
.. Statistics of the Department of Labor in denning persons as unem-
ployed, but such criteria shall not be applied differently on 
account of a person's previous employment. 
"(29) The term 'unit of general local government' means any 
city, municipality, county, town, township, parish, village, or 
other general purpose political subdivision which has the power 
to levy taxes and spend funds, as well as general corporate and 
police powers. 
"(30) The term 'veterans outreach' means the veterans outreach 
services program carried out under subchapter IV of chapter 3 of 
title 38, United States Code, with full utilization of veterans 
receiving educational assistance or vocational rehabilitation under 
38 use 1501 et 
chapter 31 or 34 of such title 38, and the services described in 
seq., 1651 et seq. 
section 305 of this Act. 
Post, p. 1965. 
"(31) The term 'Vietnam-era veterans' means those veterans 
defined in section 2011(2) (A) of title 38, United States Code, 
who are under 35 years of age. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1917 
"TITLE I—ADMINISTEATIVE PROVISIONS 
^ "PART A—ORGANIZATIONAL PROVISIONS 
u. 
PRIME SPONSORS 
"SEC. 101. (a) A prime sponsor under this Act shall be— 
29 USC 811. 
"(IJ a State; 
" (2) a unit of general local government which has a population 
of 100,000 or more persons on the basis of the most satisfactory 
current data available to the Secretary; 
" (3) any consortium of units of general local government which 
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includes any unit of general local government qualifying under 
: 
paragraph (2); 
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" (4) any unit of general local government or any consortium of 
such units, without regard to population, which, in exceptional 
£ 
circumstances, and after consultation with appropriate State 
and local officials, is determined by the Secretary— 
"(A)(i) to serve a substantial portion of a functioning 
labor market area, or (ii) to be a rural area having a high 
level of unemployment; and 
"(B) to have demonstrated (i) that it has the capability for 
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adequately carrying out programs under this Act, (ii) that 
there is a special need for services within the area to be served, 
and (iii) that it will carry out such programs and services in 
such area as effectively as any larger unit of general local 
government in the jurisdiction of which it is located or as the 
State; 
" (5) a limited number of existing concentrated employment pro-
gram grantees serving rural areas having a high level of unem-
ployment which the Secretary determines have special capabilities 
for carrying out programs in such areas and are designated by the 
Secretary for that purpose; and 
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"(6) any unit of general local government previously des-
ignated as a prime sponsor under the provisions of this Act (as 
in effect prior to the effective date of the Comprehensive Employ-
ment and Training Act Amendments of 1978), regardless of a ^nte, p. 1909. 
population decline below 100,000 persons, which the Secretary cer-
tifies has demonstrated its effectiveness in, and continues to have 
the capability for, adequately carrying out programs under this 
Act. 
"(b) (1) A State shall not qualify as a prime sponsor for any geo-
graphical area within the jurisdiction of any prime sponsor described 
in paragraph (2), (3), (4), (5), or (6) of subsection (a) unless such 
prime sponsor has not submitted an approvable comprehensive 
employment and training plan for such area. 
" (2) A larger unit of general local government shall not qualify as a 
prime sponsor with respect to the jurisdiction within its area of any 
smaller eligible unit of general local government unless such smaller 
unit has not submitted an approvable comprehensive employment and 
training plan for such area. 
"(c) An applicant shall submit to the Secretary a notice of intent Notice, 
to be a prime sponsor for a fiscal year by such date as the Secretary 
shall prescribe. The Secretary shall designate as a prime sponsor any 
92 STAT. 1918 
PUBLIC LAW 95-524—OCT. 27, 1978 
applicant submitting such a notice unless the Secretary determines 
that such applicant does not qualify under this section. 
"(d) State prime sponsors shall, in coordination with units of general 
local government, make appropriate arrangements for appropriate 
area planning bodies to serve subareas within the State prime sponsor's 
p 
area for the purpose of assisting in the effective planning and delivery 
of comprehensive employment and training programs in such subareas, 
in accordance with such regulations as the Secretary may prescribe. 
"AUTHORITY or SECRETARY TO PROVIDE SERVICES 
29 use 812. 
"SEC. 102. In any area for which no prime sponsor has been des-
ignated or where the Secretary has taken an action under section 104 
or section 106 which results in employment and training services not 
being provided in such area, the Secretary shall use funds allocated to 
such prime sponsor to make payments directly to public agencies or 
private nonprofit organizations as if the Secretary w^ere the prime 
sponsor for that area. 
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"COMPREHENSIVE EMPLOYMENT AND TRAINING PLAN 
29 use 813. 
"SEC. 103. (a) In order to receive financial assistance under this Act, 
a prime sponsor designated under section 101 (c) shall submit to the 
Secretary a comprehensive employment and training plan. Such plan 
shall consist of a master plan and an annual plan. The master plan 
shall serve as the long-term charter under which the programs of such 
prime sponsor shall be operated. Such plan shall be sufficiently detailed 
to provide the Secretary and the prime sponsor with a thorough under-
standing of the economic conditions of the area and of the prime spon-
sor's long-term programmatic and administrative arrangements to 
ensure that each annual program is designed and implemented in 
a manner best suited to such conditions and in a manner consistent 
with the requirements of this Act. The formulation of such plan by the 
prime sponsor shall involve the active participation of the prime 
sponsor planning council, and such plan shall— 
"(1) include (A) a detailed analysis of the area to be served, 
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including geographic and demographic characteristics of signifi-
-•'in cant segments of the population to be served (with data indicat-
ing the number of potential eligible participants and their income 
^ ' and employment status), and (B) a comprehensive labor market 
analysis and assessment of the economic conditions in the area, 
identifying the availability of employment and training in vari-
ous public and private labor market sectors in such area and the 
potential for job growth in such sectors; 
"(2) include a statement of the long-term goals of the prime 
sponsor for the improvement of such labor market and economic 
conditions; 
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"(3) include a detailed description of— 
"(A) the methods and institutional arrangements which 
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will be used to involve community based organizations, educa-
tional agencies, and other deliverers of services in the devel-
:o, 
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opment and implementation of the programs assisted under 
this Act; and 
"(B) the methods and criteria which will be used to select 
such deliverers of services from an inventory of potentially 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1919 
available deliverers of services (which have expressed an 
interest in writing) maintained by the prime sponsor as 
records accessible to the public; 
"(4) include a detailed description of— 
"(A) the prime sponsor's administrative arrangements, 
including the procedures to be used to supervise deliverers 
of service (including criteria for determining that a program 
has demonstrated effectiveness), to select and to place indi-
viduals on the administrative staff, to evaluate and audit 
the operation of such programs, and to process complaints 
and grievances; 
"(B) the methods to be used to identify and place par-
ticipants in such programs, the arrangements made with 
respect to providing such participants with job search assist-
ance, counseling, and other services; and 
"(C) the procedures for the selection of and the arrange-
ments made with respect to consultation with the prime 
sponsor planning council, the youth council, and the private 
industry council; 
"(5) include a description of arrangements to ensure that— 
"(A) employment and training services, including the 
development of job opportunities, will be provided to those 
most in need of them, including low-income persons, handi-
capped individuals, persons facing barriers to employment 
commonly experienced by older workers, and persons of 
limited English-speaking ability, and that the need for con-
tinued funding of programs of demonstrated effectiveness 
is taken into account in serving such groups and persons; 
"(B) nondiscrimination and equal employment opportu-
nities are provided; and 
"(C) procedures are developed which will lead to skill 
dev'elopment and job opportunities for participants in occu-
pations traditionally limited to individuals of the opposite 
sex; 
"(6) provide a description of appropriate arrangements with 
educational agencies serving youth, community-based organiza-
tions serving the poverty community which are not represented 
on the prime sponsor planning council, and other special target 
groups, for their participation in the planning of programs 
included in the plan; 
"(7) provide for utilizing those services and facilities which 
are available, with or without reimbursement, from Federal, 
State, and local agencies to the extent deemed appropriate by the 
prime sponsor after giving due consideration to the effectiveness 
of such existing services and facilities, including the State employ- 
i 
ment service. State vocational education and vocational rehabili-
tation agencies, State public assistance agencies, area skills centers, 
local educational agencies, postsecondary training and education 
institutions, community action agencies, other public agencies and 
community-based organizations, but nothing contained herein 
shall be construed to limit the utilization of services and facilities 
: 
of private agencies, institutions, and organizations (such as pri-
vate businesses, labor organizations, and private educational and 
vocational institutions) which can, at comparable cost, provide 
substantially equivalent training or services; 
92 STAT. 1920 
PUBLIC LAW 95-524—OCT. 27, 1978 
"(8) provide (A) a description of arrangements for (i) the 
use of skills centers established under section 231 of the Man-
power Development and Training Act of 1962, and (ii) the use 
of other public vocational education facilities in such area; (B) 
a description of arrangements to coordinate services for which 
financial assistance is provided under programs administered by 
the Secretary relating to employment and training and related 
services; and (C) a description of arrangements to promote maxi-
mum feasible use of apprenticeship or other on-the-job training 
opportunities available under section 1787 of title 38, United 
States Code; 
"(9) provide for and include a description of arrangements 
made to ensure the participation of and consultation with local 
educational agencies, vocational education agencies, community-
based organizations. Federal and State agencies, organized labor, 
business, and other institutions and organizations in the conduct 
of programs under this Act; 
"(10) include a description of procedures for the consideration 
of any changes in the agreement required by this subsection or 
in the annual plan required under subsection (b), including review 
of such changes by the prime sponsor planning council; 
"(11) include a detailed description of recordkeeping proce-
dures (including books of account) for the expenditure of funds 
received under this Act which will allow the Secretary to audit 
and monitor the prime sponsor's programs, and will assure ade-
quate supervision and monitoring of such programs by the prime 
sponsor, particularly with respect to the eligibility of participants 
and the propriety of participant selection procedures and 
practices; 
" (12) include a detailed description of procedures for the moni-
toring and auditing of any subgrantees or subcontractors; 
"(13) include a description of the methods and arrangements 
which wnll be used to ensure the fullest possible utilization, con-
sistent with the education and training needs identified in the 
plan, of public vocational education facilities and programs, and 
of other facilities of local education agencies in the provision of 
instruction in basic cognitive skills and in the development and 
implementation of programs assisted under this Act; 
"(14) provide evidence that in the development of such plan 
there has been a continuing process of consultation with interested 
groups in the area not directly represented on the prime sponsor's 
planning council, including local advisory councils established 
20 use 2305. 
under section 105 (a) of the Vocational Education Act of 1963 and 
the private industry council established under section 704 of this 
Post, p. 2011. 
Act, representatives of local education agencies, and representa-
tives of postsecondary educational agencies; 
"(15) include a description of the methods for coordination 
between the prime sponsor and the local State employment security 
agencies and delineate the specific responsibilities of each in the 
delivery of employment and training services for participants 
29 use 49 et seq. 
funded under this Act and under the Wagner-Peyser Act, with 
the goal of maximizing the level of coordination between the 
^ prime sponsor and the local employment security agency and 
^ minimizing duplication; 
r 
^o. Mnrnfii?;,!.; 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1921 
"(16) include a description of the procedures concerning aca-
demic credit developed in conjunction with the appropriate local 
educational agency or institution of higher education and 
approved by the appropriate State educational agency (includ-
ing State agencies responsible for postsecondary education), or, 
where a prime sponsor's area includes more than one local educa-
tional agency, developed in conjunction with, and approved by, 
the appropriate State educational agency; 
"(17) include a description of recommendations of members of 
the prime sponsor's planning council which w^ere not included in 
the plan, together with the reasons for rejecting them; 
" (18) include a description of actions to ensure compliance with 
personnel procedures and collective bargaining agreements; 
"(19) include a description of efforts to remove artificial bar-
riers to employment; 
" (20) include a description of plans and activities to coordinate, 
strengthen, and expand employment and training activities under 
this Act with economic development activities in the private 
sector; and 
"(21) include adequate assurances of compliance wnth all pro-
visions of this Act and regulations promulgated pursuant 
thereto. 
"(b) To receive funds for any fiscal year, a prime sponsor shall Annual plan, 
submit an annual plan, which shall include— 
"(1) a description of any significant changes from the infor-
mation provided in the master plan; 
"(2) a description of the eligible population identified by race, 
sex, national origin, and age, and the proposed activities and 
services for participants from these significant segments of the 
eligible population; 
"(3) a description of specific services for individuals who are 
experiencing severe handicaps in obtaining employment, includ-
ing individuals who lack credentials, require basic and remedial 
skill development, have limited English-speaking ability, are 
handicapped, are disabled or Vietnam-era veterans, are offenders, 
are displaced homemakers, are public assistance recipients, are 
55 years of age or older, are youth, are single parents, are women, 
or are other individuals who the Secretary determines have par-
ticul ar disadvantages in the labor market; 
"(4) a description of the services to be provided, the prime 
sponsor's performance and placement goals (including such goals 
as may be established with respect to the groups identified in 
paragraphs (2) and (3)), and the relationship of such goals to 
the Secretary's performance standards; 
"(5) the proposed budget for the program year, including a 
detailed summary of the expenditures made during the preceding 
year, results achieved, and changes made in the annual plan for 
the program year; 
"(6) a description of the relationship between job development 
and placement under this Act and other employment and train-
ing programs in the area served, and efforts made or which will 
' 
be made to coordinate programs under this Act with such other 
programs; 
"(7) a description of programs to orient and prepare the par-
ticipants for their j ob responsibilities; 
39-194 O—80—pt. 2 
41 : QL3 
92 STAT. 1922 
PUBLIC LAW 95-524—OCT. 27, 1978 
"(8) a descriiption of efforts to be undertaken to involve the 
private sector; 
" (9) a statement of any intention by the prime sponsor to apply 
for and utilize funds provided under this Act which are not allo-
cated by formula; 
"(10) a description of wage rates or salaries and fringe bene-
fits to be paid to persons employed in public service employment 
and a comparison with the wages or salaries and fringe benefits 
paid for similar public occupations by the same employer; levels 
of employment not supported under this Act; layoffs, and hiring 
and promotional freezes in each employing agency; 
(11) a description of the procedures which will be used to pro-
mote the objectives of section 121(a)(4), including the hiring, 
licensing, and contracting activities of the political units, sub-
grantees, and contractors of such prime sponsor; 
"(12) the method for determining priorities for service under 
Post, p. 1950. 
title II which shall be based on objective locally established 
criteria to assist the prime sponsor in assuring service to those most 
in need, such priorities shall be based on locally determined fac-
tors such as employment status, household status, level of employ-
ability development, handicap, veteran status, age, race, sex, or 
other criteria deemed viable by the prime sponsor; 
• 
• • 
" (1^) ^ lis^ of the specific contracts from the previous year with 
those institutions providing training programs, including infor-
mation on the rate of positive placement for individuals who have 
completed such programs; 
"(14) a summary of any evaluation conducted of the prime 
sponsor's programs during preceding program years and a descrip-
tion of any use made of such evaluation in the modification or 
alteration of the prime sponsor's program; 
"(15) a description of an affirmative action program for out-
reach to and training, placement, and advancement of handicapped 
individuals in employment and training programs under this 
Act, including— 
"(A) a description of the extent to which and the methods 
whereby the special needs of the handicapped are to be met; 
and 
"(B) a description of the number of handicapped individ-
uals who were served in the preceding year the types of train-
ing or employment in which they were placed, and the number 
of such individuals who were moved into unsubsidized 
employment; and 
Post, p. 1953. 
" (16) a copy of all agreements made pursuant to section 203 (c). 
"(c) The Secretary shall establish procedures for submittal, 
approval, and implementation of changes in the comprehensive 
employment and training plan, together with any reports required 
under this Act, not more than once each fiscal quarter. 
li REVIEW OF PLANS 
29 use 814. 
"SEC. 104. (a) Each prime sponsor shall, at least 45 days before 
submitting its master or annual plan to the Secretary—• 
"(1) transmit such plan, in order to allow at least 30 days of 
review and comment, to— 
"(A) the Governor; 
, 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1923 
"(B) the State employ 
merit and training council; 
"(C) the prime sponsor planning comicil and the private 
industry council; 
"(D) appropriate units of general local government in its 
area; and 
"(E) labor organizations in the area which represent 
employees engaged in work similar to that proposed to be 
funded; 
"(2) make such plan available, in order to allow for at least 
thirty days of review and comment, to— 
"(A) each House of the State legislature for appropriate 
referral; 
"(B) appropriate community based organizations of dem-
onstrated effectiveness in serving significant segments of the 
eligible population; and 
"(C) appropriate educational agencies and institutions, 
and give written notification of its availability; and 
"(3) make such plan available to the general public through 
such means as pubnc hearings, newspapers, bulletins, and other 
media, including publications that primarily serve significant 
segments of the eligible population. 
"(b) The prime sponsor shall consider any comments or recom-
mendations received and shall transmit to the Secretary copies of the 
comments and recommendations of the Governor, the State employ-
ment and training council, and the prime sponsor planning council. 
"(c)(1) The Secretary shall review each comprehensive employ-
ment and training plan to determine whether it is complete, whether 
it meets the requirements of this Act and the regulations promulgated 
under this Act and other applicable law, and whether, taking into 
account such factors as past performance and the recommendations 
made by the Governor, the State employment and training council, 
and the prime sponsor planning council, it is adequately designed to 
carry out an effective and well-administered program. The Secretary 
shall require the prime sponsor to take such action as the Secretary 
deems necessary to bring its plan and programs into conformance 
with the Act and the regulations promulgated under this Act or 
to improve the administration and effectiveness of its programs. If 
it is determined that such action is made necessary as a result of the 
Secretary's review of recommendations submitted by the Governor, 
the State employment and training council, or the prime sponsor 
planning council, the Secretary shall request an explanation of why 
the prime sponsor rejected such recommendations. 
"(2) The Secretary shall, prior to approval of any plan, require 
the inclusion in such plan of specific management and accounting 
procedures to assure adequate supervision and monitoring of the 
programs to be conducted pursuant to such plan, and shall require 
the adoption of specific procedures (such as accrual accounting proce-
dures) where necessary for such purpose. 
"(3) The Secretary shall, prior to approval of any plan, ensure 
that the prime sponsor has demonstrated a recognizable and proven 
method of verifying eligibility of all participants. The Secretary may 
require modification or the adoption of specific procedures where 
necessary for such purposes. The Secretary shall also develop recog-
nizable penalties and inform the prime sponsor of such penalties to 
Availability for 
review and 
comment. 
Public 
availability. 
Copies of 
comments and 
recommenda-
tions. 
92 STAT. 1924 
PUBLIC LAW 95-524—OCT. 27, 1978 
be applied upon a finding of the ineligibility of any participant. In 
reviewing such plans, the Secretary shall ensure that the plans ade-
quately describe, and the prime sponsor demonstrates a thorough 
understanding of, labor market and economic conditions in the area 
served, that the plan is reasonably designed to respond to such 
conditions, that the administrative arrangements and procedures are 
adequate for the performance of the program and will ensure that 
professional standards of management will be attained, and that the 
plans provide for adequate relationships with existing community 
efforts and maximize the use of existing resources. 
Disapproval of 
" (4) The Secretary may disapprove all or any portion of a plan if 
P^*°- 
he finds that the use of funds for a particular subcontract or subgrant 
provided within that portion of the plan would be grossly inefficient or 
fail to carry out the purposes of this Act. 
"(d) (1) The Secretary shall disapprove any plan that does not fully 
satisfy the review under subsection (c), after a reasonable opportunity, 
but not less than 30 days, has been given to the prime sponsor to 
remedy any defect found in the plan and the prime sponsor has failed 
to do so. 
Notice of 
"(2) Whenever the Secretary disapproves a plan he shall transmit 
disapproval. 
a notice of disapproval to the prime sponsor and the Governor, accom-
panied by a statement of reason for the disapproval. The Secretary 
shall not disapprove a plan without first affording an opportunity for 
a hearing to the prime sponsor. 
"(e) (1) The Secretary shall, not later than March 31 of the fiscal 
year preceding the fiscal year for which an annual plan is to take 
effect, establish a date for the submission of such annual plan. The 
Secretary shall make available to each prime sponsor a complete and 
final set of all applicable regulations and necessary application mate-
rials no later than May 15 of the fiscal year preceding the fiscal year 
for which such plan is to take effect. With respect to funds allocated 
under this Act on the basis of a formula, the Secretary shall also pro-
vide prime sponsors with a preliminary planning estimate based on 
the amounts available in the budget of the President or in the most 
recent concurrent budget resolution under the Congressional Budget 
Act applicable to such year. If for any reason the Secretary cannot 
provide a complete and final set of all applicable regulations and 
necessary application materials by such May 15 prior to the date 
established under the first sentence of this subsection, the Secretary 
shall extend the date for submittal of such plan to allow the prime 
sponsor to review such regulations and to complete such materials 
prior to submittal. 
"(2) During the period of time between May 15 and the date for 
submittal of the plan, the Secretary shall not issue any regulations or 
guidelines or interpretations thereof that require any change in the 
prime sponsor's plan, which is a condition for the Secretary's approval 
or disapproval of the plan. If the Secretary deems that a plan change 
is required during this period, the Secretary shall allow at least one 
fiscal quarter for the prime sponsor to submit such change, except that 
the sponsor may at its own discretion submit the required change as 
part of its plan submittal under paragraph (1). 
PUBLIC LAW 95-524^0CT. 27, 1978 
92 STAT., 1925 
"GOVERNOR'S COORDINATION AND SPECIAL SERVICES PLAN 
"SEC. 105. (a) Any State seeking financial assistance under this 29 USC 815, 
Act shall submit a Governor's coordination and special services plan 
to the Secretary. 
"(b) Governor's coordination and special services activities shall 
include the following— 
"(1) coordinating all employment and training, education, and 
related services provided by the State, by prime sponsors, by State 
education agencies and other appropriate institutions of vocational 
and higher education, State and local public assistance agencies, 
and by other providers of such services within the State; 
* 
" (2) coordinating programs financed under the Wagner-Peyser 
Act and this Act, including assisting in the negotiation of any 29 USC 49 et seq. 
agreements (including partnership arrangements described in 
section 307) between prime sponsors and State employment secu- Post, p. 1966. 
rity agencies; 
"(3) assuring that comprehensive employment and training 
plans do not unnecessarily result in the duplication of services; 
"(4) assisting the Secretary in enforcing the requirements for 
Federal contractors and subcontractors to list all suitable employ-
ment openings with local offices of the State employment service 
agencies and to take affirmative action, as required in section 
2012 (a) of title 38, United States Code; 
"(5) assuring the promotion of prime sponsor planning that 
takes into account conditions prevailing in labor market areas 
covering more than one prime sponsor area, as well as related 
activities such as community development, economic development, 
vocational education, vocational rehabilitation, and social services; 
"(6) exchanging of information between States and prime 
sponsors with respect to State, interstate, and regional planning 
for economic development, human resource development, educa-
tion, and other subjects relevant to employment and training 
planning; 
"(7) developing and providing to prime sponsors information 
on a State and local area basis regarding economic, industrial, 
and labor market conditions; 
"(8) making available to prime sponsors, with or without reim-
bursement and upon request, appropriate information and tech-
nical assistance to assist them in developing and implementing 
their programs ; 
"(9) carrying out special model training and employment 
programs and related services, which may include programs for 
offenders similar to programs described in section 301 (b) (2); 
Post, p. 1960. 
"(10) providing financial assistance for special programs and 
services designed to meet the needs of rural areas outside major 
labor market areas; 
"(11) providing labor market and occupational information 
to prime sponsors and appropriate educational agencies and 
institutions without reimbursement; and 
" (12) facilitating and fostering the activities of the State Occu-
pational Information Coordinating Committee established pursu-
ant to section 161 (b) (2) of the Vocational Education Act of 1963, 20 USC 2391. 
with special emphasis on the systematic use of occupational inf or-
92 STAT. 1926 
PUBLIC LAW 95-524—OCT. 27, 1978 
mation for prime sponsor planning as well as assisting and encour-
aging the development and use of career outlook information for 
individuals who are receiving rehabilitation services, students in 
local schools, and individuals using the services of prime sponsors 
and local offices of State employment security agencies. 
"(c) A Governor's coordination and special services plan shall be 
approved by the Secretary only if the Secretary determines that the 
plan satisfactorily implements subsection (b). 
u 
COMPLAINTS AND SANCTIONS 
' 
Grievance 
"SEC. 106. (a) (1) Except for complaints subject to the provision of 
procedure. 
paragraph (2), each prime sponsor receiving finajicial assistance 
29 use 816. 
under this Act or contractor or grantee under title III shall establish 
Post, p. 1960. 
and maintain a grievance procedure, including provision for hear-
ings within 30 days after the filing of a grievance, and for handling 
complaints about the program arising from its participants, sub-
Hearings, 
grantees, contractors, and other interested persons. Hearings under 
such procedure shall be conducted expeditiouslj and decisions shall 
be made not later than 60 days after the filing of the grievance 
involved. With the exception of grievances alleging fraud or any crim-
inal activity, the filing of a grievance must be made within one year of 
the alleged occurrence. 
"(2) Whenever the recipient of financial assistance under this Act 
is an employer and the participant is an employee of that employer, 
the recipient shall continue to operate or shall establish and maintain 
a grievance procedure relating to the terms and conditions of 
employment. 
" (b) Whenever the Secretary receives a complaint from any inter-
ested person or organization (which has exhausted the prime sponsor's 
grievance system under subsection (a) (1) or which has exhausted or 
failed to achieve resolution of the grievance under the recipient's 
grievance system under subsection (a) (2) or under a collective bar-
gaining agreement within the time limits prescribed in subsection 
(a) (1) or in such agreement) which alleges, or whenever the Secre-
tary has reason to believe (because of an audit, report, on-site review, 
or otherwise) that a recipient of financial assistance under this Act 
is failing to comply with the requirements of this Act, the regula-
tions under this Act, or the terms of the comprehensive employment 
and training plan, the Secretary shall investigate the matter. The 
Secretary shall conduct such investigation, and make the final deter-
mination required b^ the following sentence regarding the truth of 
the allegation or belief involved, not later than 120 days after receiv-
s 
ing the complaint. If, after such investigation, the Secretary deter-
mines that there is substantial evidence to support such allegation or 
belief that such a recipient is failing to comply with such require-
ments, the Secretary shall, after due notice and opportunity for a 
hearing to such recipient, determine whether such allegation or belief 
is true. 
"(c)(1) The Secretary shall revoke all or any part of a prime 
sponsor's comprehensive employment and training plan and termi-
nate financial assistance thereunder, if prior notice and opportunity 
: 
>' 
for a hearing have been given, when the Secretary determines that 
the j)rime sponsor is maintaining a pattern or practice of discrimina-
Post, p. 1948. 
tion in violation of section 132. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT.| 1927 
"(2) The Secretary shall have the authority to revoke a prime 
sponsor's comprehensive employment and training plan and termi-
nate financial assistance thereunder, if prior notice and opportunity 
for a hearing have been given, when the Secretary determines that 
the prime sponsor is— 
"(A) failing to make opportunities available equitably among 
the significant segments of the eligible population in the area it 
serves; 
"(B) failing to provide participants with employment or train-
ing opportunities at levels of skill and remuneration that are 
commensurate wath their capabilities or potential capabilities; 
"(C) failing to give due consideration to the eligible population 
in areas of chronic or concentrated unemployment; 
"(D) failing to give due consideration to funding of programs 
of demonstrated effectiveness; 
"(E) incurring unreasonable administrative costs in the con-
duct of activities and programs, as determined by the Secretary 
pursuant to regulations under this Act; 
"(F) materially failing to expend funds in a reasonable period 
of time; or 
"(G) otherwise materially failing to carry out the purposes 
and provisions of this Act or the regulations promulgated pur-
suant to this Act. 
"(d)(1) If the Secretary concludes that any recipient of funds 
under this Act is failing to comply with any provision of this Act 
or the regulations under this Act or that the recipient has not taken 
appropriate action against its subcontractors, subgrantees, and other 
recipients, the Secretary shall have authority to terminate or suspend 
financial assistance in whole or in part and order such sanctions or 
corrective actions as are appropriate, including the repayment of 
misspent funds from sources other than funds under this Act and the 
withholding of future funding, if prior notice and an opportunity for 
a hearing have been given to the recipient. Whenever the Secretary 
orders termination or suspension of financial assistance to a sub-
grantee or subcontractor (including operators under a nonfinancial 
agreement), the Secretary shall have authority to take whatever action 
is necessary to enforce such order, including action directly against the 
subgrantee or subcontractor, and an order to the primary recipient 
that it take such legal action, to reclaim misspent funds or to other-
wise protect the integrity of the funds or ensure the proper operation 
of the program. 
"(2) If the Secretary concludes that a public service employment 
program is being conducted in violation of section 121 (e) (2), (e) (3), 
(g) (1), section 122 (c), (e), or section 123(g), or regulations promul-
gated pursuant to such sections, the Secretary shall, pursuant to para-
graph (1) of this subsection, terminate or suspend financial assistance 
in whole or in part, order the repayment of misspent funds from 
sources other than funds under this Act or other funds used in con-
nection with programs funded under this Act (unless, in view of 
special circumstances as demonstrated by the recipient, the Secretary 
determines that requiring repayment would not serve the purposes 
of attaining compliance with such sections), and order such other 
sanctions or corrective actions as are appropriate. 
92 STAT. 1928 
PUBLIC LAW 95-524—OCT. 27, 1978 
Termination or 
suspension of 
financial 
assistance. 
Notice and 
hearing. 
Post, p. 1949. 
"(e) In emergency situations, as determined by the Secretary, when 
it is necessary to protect the integrity of the funds or ensure the 
proper operation of the program, the Secretary may immediately 
terminate or suspend financial assistance in whole or in part, provided 
that prompt notice and opportunity for a subsequent hearing, within 
30 days after such termination or suspension, are given to the recipi-
ent. The Secretary shall not delegate any of the functions or authority 
specified in this subsection other than to an officer whose appointment 
was required to be made by and with the advice and consent of the 
Senate. 
"(f) If the Secretary determines that any recipient under this Act 
has— 
"(1) discharged or in any other manner discriminated against 
a participant or against any person in connection with the admin-
istration of the program involved or against any person because 
such person has filed any complaint or instituted or caused to be 
instituted any proceeding under or related to this Act, or has 
testified or is about to testify in any such proceeding or investi-
gation under or related to this Act, or otherwise unlawfully 
denied to any person a benefit to which that person is entitled 
under the provisions of this Act or the Secretary's regulations, or 
"(2) discriminated against any person, failed to serve equi-
tably significant segments of the eligible population, or failed to 
provide employment or training opportunities at levels of skill 
and remuneration that are commensurate with the participant's 
capabilities or potential capabilities; 
the Secretary shall, within 30 days, take such action or order such 
corrective measures, as necessary, with respect to the recipient or the 
aggrieved person, or both. 
"(g) The Secretary may withhold funds otherwise payable under 
this Act in order to recover any amounts expended in any fiscal year 
in violation of any provision of this Act, any regulation promulgated 
pursuant to this Act, or any term or condition of assistance under this 
Act. In the event of any such withholding which results from fraud 
or abuse, the Secretary may order the prime sponsor to conduct the 
program as specified in the applicable plan on the basis of funds other 
than funds under this Act and may enforce such order by appropriate 
civil action, unless the prime sponsor elects to terminate participation 
as a grantee under this Act. 
"(h) With the consent and consideration of State agencies charged 
with the administration of State laws, the Secretary shall be author-
ized, for the purpose of carrying out this section and section 133, to 
utilize the services of State and local agencies and their employees. 
Notwithstanding any other provision of law, the Secretary is author-
ized to reimburse, in whole or in part, such State and local agencies 
and their employees for services rendered for such purposes. 
"(i) (1) Except as otherwise provided in subsection (e), the Secre-
tary shall not revoke a prime sponsor's plan, in whole or in part, nor 
institute corrective action or sanctions against a prime sponsor under 
this section or any other provision of this Act, without first providing 
the prime sponsor with notice by the Secretary of his intended actions 
and the reasons upon which those intended actions are based, and also 
providing the i)rime sponsor— 
"(A) with an opportunity to informally resolve those matters 
contained in the Secretary's notice; and 
PUBLIC LAW 95-524^0CT. 27, 1978 
92 STAT. 1929 
"(B) in the event that the prime sponsor and the Secretary 
cannot informally resolve any matter pursuant to clause (A), 
with a notice that (i) indicates that efforts to informally resolve 
matters contained in the Secretary's original notice have been 
unsuccessful; (ii) lists those matters upon which the parties con-
tinue to disagree; and (iii) informs the prime sponsor of any 
sanctions, corrective action, or any other alteration or modification 
of the prime sponsor's plan or program intended by the Secretary. 
" (2) Within 10 days of receipt of the Secretary's notice under para- Hearing, 
graph (1) (B), the prime sponsor may request a hearing, but in no 
event shall the Secretary proceed under this subsection without first 
fulfilling all the requirements under this subsection. 
"(j) In order to ensure compliance with the provisions of this Act Audit programss. 
and regulations promulgated under this Act and to ensure conduct of 
programs in a manner consistent with the purposes and objectives of 
this Act, the Secretary may require prime sponsors to participate in 
unified audit programs established by the Secretary to provide for the 
audit of both prime sponsors and their respective subgrantees and 
subcontractors. In any such case the Secretary may require the prime 
sponsor to pay, from funds under this Act available to it for admin-
istrative expenses, that portion of the unified audit expenses allocable 
to the audit of such subgrantees and subcontractors. 
"(k) Nothing in this section shall be deemed to reduce the respon-
sibility and full liability of the prime sponsors and other recipients 
which receive funds directly from the Secretary. 
"(1) The existence of remedies under this section shall not preclude 
any person, who alleges that an action of a prime sponsor or of any 
other recipient violates any of the provisions of the Act or the regula-
tions promulgated under the Act, from instituting a civil action or 
pursuing any other remedies authorized under Federal, State, or local 
law. 
"JUDICIAL REVIEW 
"SEC. 107. (a) If any prime sponsor is dissatisfied with the Secre- 29 U
S
C 817. 
tary's final action with respect to the disapproval of its comprehen-
sive employment and training plan under section 104, or if any 
recipient is dissatisfied with the Secretary's final action with respect 
to a sanction under section 106, or if any interested person is dissatis-
fied with or aggrieved by any final action of the Secretary authorized 
under section 106, such prime sponsor, recipient, or person may, within 
60 days after notice of such action, file with the United States court of 
appeals for the circuit in which the prime sponsor, recipient, or person 
resides or transacts business a petition for review of such action. 
"(b) The findings of fact by the Secretary, if supported by sub-
stantial evidence, shall be conclusive, but the court, for good cause 
shown, may, in whole or in part, set aside the findings of the Secretary 
or remand the case to the Secretary in whole or in part to take 
further evidence, and the Secretary may thereupon make new or 
modified findings of fact and may modify the previous action, and 
shall certify to the court the record of the further proceedings. 
U-
REALLOCATION 
"SEC. 108. (a) The Secretary is authorized to reallocate any amount 29 USC 818. 
of any allocation under this Act to the extent that the Secretary deter-
92 STAT. 1930 
PUBLIC LAW 95-524—OCT. 27, 1978 
Publication in 
Federal Register. 
mines that the recipient will not be able to use such amount within a 
reasonable period of time. 
"(b) (1) Any allocations to a prime sponsor designated under sec-
tion 101 (c) may be reallocated only if the Secretary has provided 30 
days advance notice to the prime sponsor, to the Governor, and to the 
general public. During such period comments may be submitted to 
the Secretary. 
" (2) After considering any comments submitted during such period, 
the Secretary shall notify the Governor and the affected prime sponsor 
of any decision to reallocate funds, and shall publish such decision 
in the Federal Register. 
" (3) In reallocating any such funds, the Secretary shall give priority 
first to other prime sponsor areas within the same State and then to 
prime sponsor areas within other States. 
29 use 819. 
Membership. 
Publicly 
announced 
meetings. 
Recommenda-
tions. 
PRIME SPONSOR'S PLANNING COUNCIL 
"SEC. 109. (a) Each prime sponsor designated under section 101(c) 
shall establish a planning council. 
"(b) Each planning council established under subsection (a) shall 
consist of members who are representative of the eligible population 
(including significant segments thereof), organized labor, employees 
who are not represented by organized labor, community-based orga-
nizations, the employment service, veterans organizations, representa-
tives of handicapped individuals, vocational education agencies, public 
assistance agencies, other education and training agencies and institu-
tions, business, labor, and, where appropriate agricultural employers 
and workers. 
"(c) The prime sponsor shall appoint the members of the planning 
council, designate a public member as chairperson and furnish staff to 
provide professional, technical, and clerical assistance to the council. 
"(d) The planning council shall meet no less than 5 times per year. 
The meetings shall be publicly announced, and, to the extent appro-
priate, open to and accessible to the general public. 
"(e) The council shall (1) participate in the development of, and 
submit recommendations regarding, the prime sponsor's comprehen-
sive employment and training plan and the basic goals, policies, and 
procedures of the prime sponsor's programs and of other employment 
and training programs in the prime sponsor's area; (2) monitor, and 
provide for objective evaluation of, employment and training pro-
grams conducted in such area; and (3) provide for continuing analyses 
of the need for employment, training, and related services in such 
area, including efforts to reduce and eliminate artificial barriers to 
employment. Special consideration shall be given to the recommenda-
tions of the planning council, but any final decision with respect to 
such recommendations shall be made by the prime sponsor. 
"(f) The planning council shall take into consideration any com-
ments and recommendations of the private industry council in the 
development of the comprehensive employment and training plan. 
"STATE EMPLOYMENT AND TRAINING COUNCIL 
29 use 820. 
"SEC. 110. (a) (1) Any State which desires to receive financial assist-
ance under this Act shall establish a State employment and training 
council (hereinafter in this section referred to as the 'Council'). Fund-
Post, p. 1950. 
ing for the council shall be provided pursuant to section 202(c). 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1931 
"(2) The council shall be appointed by the Governor, who shall 
designate one public member thereof to be chairperson. The Gover-
nor shall furnish staff to provide professional, technical, and clerical 
assistance to the council. 
" (3) The council shall be composed of— 
"(A) representatives of the units or combinations of units of 
general local government in such State, including those which are 
prime sponsors, who together shall comprise at least one-quarter 
of the membership of the council and shall be nominated by the 
chief executive officers of the units or combination of units of 
general local government; 
"(B) representatives of organized labor, business, and agricul-
tural employers and workers, who together shall comprise one-
quarter of the membership of the council; 
"(C) representatives of the eligible population (including 
significant segments thereof) and of the general public, who 
together shall comprise one-quarter of the membership of the 
council; and 
"(D) representatives of service deliverers, who together shall 
comprise not more than one-quarter of the membership of the 
council, including at least— 
"(i) one representative each of the State board of voca-
tional education and the public employment service of such 
State; 
"(ii) one representative of the State Advisory Council 
on Vocational Education created pursuant to section 105 of 
the Vocational Education Act of 1963; 
"(iii) one representative of the State public assistance 
agency; 
"(iv) one representative of each such other State agency 
as the Governor may determine to have a direct interest in 
overall employment and training and human resource utiliza-
tion within the State; 
"(v) representatives of community-based organizations; 
"(vi) representatives of veterans organizations; and 
"(vii) representatives of handicapped individuals. 
"(4) The council shall meet at such times (but at least 5 times each 
yGSLT"^ and in such places as it deems necessary. The meetings shall be 
publicly announced, and, to the extent appropriate, open and accessible 
to the general public. 
"(b) The council shall— 
"(1) review continuously the operation of programs conducted 
by each prime sponsor, and the availability, responsiveness, and 
adequacy of State services, and make recommendations to the 
prime sponsors, to agencies providing employment and training 
services, to the Governor, and to the general public with respect to 
ways to improve the effectiveness of such programs or services; 
"(2) make an annual report to the Governor which shall be a 
public document, and issue such other studies, reports, or docu-
ments as it deems advisable to assist prime sponsors or to otherwise 
help carry out the purposes of this Act; 
"(3) (A) identify, in coordination with the State Advisory 
Council on Vocational Education, the employment and training 
and vocational education needs of the State and assess the extent 
to which employment and training, vocational education, voca-
Membership. 
20 use 2305. 
Publicly 
announced 
meetings. 
92 STAT. 1932 
PUBLIC LAW 95-524—OCT. 27, 1978 
Comments. 
20 use 2305. 
29 use 821. 
tional rehabilitation, public assistance, and other 
programs 
assisted under this and related Acts represent a consistent, inte-
grated, and coordinated approach to meeting such needs; and 
"(B) comment at least once annually on the reports of the State 
Advisory Council on Vocational Education, which comments shall 
be included in the annual report submitted by that Council pur-
suant to section 105 of the Vocational Education Act of 1963; 
"(4) review the comprehensive employment and training plans 
of prime sponsors pursuant to section 104, especially with respect 
to nonutilization or duplication of existing services; 
"(5) review plans of all State agencies providing employment, 
training, and related services, and provide comments and recom-
mendations to the Governor, the State agencies and the appro-
priate Federal agencies on the relevancy and effectiveness of 
employment and training and related service delivery systems in 
the State; and 
"(6) participate in the development of the Governor's coordi-
nation and special services plan. 
a 
CONSULTATION 
"'SEC. 111. (a) The Secretary shall consult with the Secretary of 
Health, Education, and Welfare, with respect to arrangements for 
services of a health, education, or welfare character under this Act, 
and the Secretary of Health, Education, and Welfare shall solicit the 
advice and comments of appropriate State agencies with respects to 
health, education, and welfare services. Such services shall include 
basic or general education; educational programs conducted for 
offenders; institutional training; health care, child care, and other 
supportive services; and new careers and job restructuring in the 
health, education, and welfare professions. 
"(b) The Secretary, in carrymg out or supporting programs under 
this Act, shall consult, as appropriate, with the Secretary of Commerce, 
the Secretary of Housing and Urban Development, the Secretary of 
Agriculture, the Director of the A C T I O N Agency, the Director of the 
Community Services Administration, the Administrator of Veterans 
Affairs, and such other officials as appropriate. 
29 use 822. 
Ante, p. 1917. 
Post, pp. 1950, 
1954, 1956. 
Post, p. 1957. 
Post, p. 1960. 
Post, p. 1974. 
'AUTHORIZATION 
OF APPROPRIATIONS 
"SEC. 112. (a) (1) There are authorized to be appropriated such sums 
as may be necessary for fiscal year 1979 and for each of the three 
succeeding fiscal years to carry out title I. 
"(2) (A) There are authorized to be appropriated $2,000,000,000 for 
fiscal year 1979 to carry out parts A, B, and C of title I I . 
"(B) There are authorized to be appropriated $3,000,000,000 for 
fiscal year 1979 to carry out part D of title II. 
"(C) Subject to subsection (b)(1), there are authorized to be appro-
priated such sums as may be necessary for fiscal year 1980 and for each 
of the two succeeding fiscal years to carry out parts A, B, C, and D 
of title I I . 
"(3) Subject to subsection (b) (2), there are authorized to be appro-
priated such sums as may be necessary for fiscal year 1979 and for each 
of the three succeeding fiscal years to carry out title I I I . 
"(4) (A) There are authorized to be appropriated $2,250,000,000 for 
fiscal year 1979 to carry out title IV. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1933 
"(B) There are authorized to be appropriated $2,400,000,000 for 
fiscal year 1980 to carry out title IV. 
Post, p. 1974. 
"(C) There are authorized to be appropriated such sums as may be 
necessary for fiscal year 1981 and for the succeeding fiscal year to carry 
; : 
out parts B and C of title IV. 
"(5) There are authorized to be appropriated such sums as may be 
necessary for fiscal year 1979 and for each of the three succeeding fiscal 
years to carry out title V. 
Post, p. 2002. 
"(6) There are authorized to be appropriated for fiscal year 1979 
and for each of the three succeeding fiscal years the amount determined 
pursuant to section 602 to carry out title VI. 
Post, p. 2005. 
"(7) (A) There are authorized to be appropriated $500,000,000 for 
fiscal year 1979 to carry out title VII. 
Post, p. 2010. 
"(B) There are authorized to be appropriated $525,000^000 for fiscal 
year 1980 to carry out title VII. 
"(8) (A) There are authorized to be appropriated $350,000,000 for 
fiscal year 1979 to carry out title VIII. 
Post, p. 2013. 
"(B) There are authorized to be appropriated $400,000,000 for fiscal 
year 1980 to carry out title VIII. 
"(C) There are authorized to be appropriated such sums as may be 
necessary for fiscal year 1981 and for the succeeding fiscal year to carry 
out title VIII. 
"(b) (1) Of the amount appropriated to carry out title II for fiscal 
years 1980, 1981, and 1982, the amount which shall be available for 
part D of such title for a fiscal year shall not exceed 60 percent of 
the total amount appropriated for such title for such fiscal year. 
"(2) Of the amount appropriated to carry out this Act for any fiscal 
year, not more than 20 percent of such amount (excluding any amount 
made available for carrying out part D of title II and title VI) shall Post, pp. 1957, 
be available for carrying out the provisions of title III. From such 2005. 
amount made available for title III activities, the Secretary shall 
transfer an amount which shall be not less than $3,000,000 and not 
more than $5,000,000 for any fiscal year to the National Occupational 
Information Coordinating Committee established pursuant to section 
161 (b) of the Vocational Education Act of 1963 for purposes described 20 USC 2391. 
in section 315 of this Act. 
Post, p. 1972. 
"(c) Notwithstanding any other provision of law, unless enacted 
in specific limitation of the provisions of this subsection, any funds 
appropriated to carry out this Act, which are not obligated prior to 
the end of the fiscal year for which such funds were appropriated, shall 
remain available for obligation during the succeeding fiscal year, and 
any funds obligated in any fiscal year may be expended during a period 
of 2 years from the date of obligation. 
"(d) (1) For the purpose of affording adequate notice of funding 
available under this Act, appropriations under this Act are authorized 
to be included in an appropriation Act for the fiscal year preceding the 
fiscal year for which they are first available for obligation. 
"(2) In order to effect a transition to the advance funding method 
of timing appropriation action, the provisions of this subsection 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 separate appropriations, one for the then current 
fiscal year and one for the succeeding fiscal year. 
92 STAT. 1934 
^ 
PUBLIC LAW 95-5?4—OCT. 27, 1978 
"PART B—GENERAL PROVISIONS 
"CONDITIONS APPLICABLE TO ALL PROGRAMS 
29 use 823. 
"SEC. 121. Except as otherwise provided, the following conditions 
are applicable to all programs under this Act: 
"(a) (1) No person slhiall be excluded from participation in, denied 
the benefits of, subjected to discrimination under, or denied employ-
ment in the administration of or in connection with any such program 
because of race, color, relig^ion, sex, national origin, age, handicap, or 
-. . 
political affiliation or belief. 
"(2) Participants shall not be employed on the construction, opera-
tion, or maintenance of so much of any facility as is used or to be used 
for sectarian instruction or as a place for religious worship. 
"(3) Every participant, prior to entering upon employment or 
training, shall be informed of that individual's rights and benefits 
in connection with such employment or training; acceptance of family 
planning services shall be voluntary on the part of the individual, and 
shall not be, a prerequisite to eligibility for, or receipt of, any benefit 
under the program. 
"(4) Programs shall contribute, to the maximum extent feasible, 
to the elimination of artificial barriers to employment and occupational 
advancement. 
" (5) Prime sponsors shall make efforts to remove architectural bar-
riers to employment of the handicapped. 
"(b)(1)(A) Employment and training opportunities for partici-
pants shall be made available by prime sponsors on an equitable basis 
in accordance with the purposes of this Act among significant seg-
ments of the eligible population giving consideration to the relative 
numbers of eligible persons in each such segpient. 
"(B) In the administration of programs under this Act, members 
of the eligible population to be served shall be provided maximum 
employment opportunities, including opportunities for further occu-
pational training and career advancement. Prime sponsors shall make 
special efforts to recruit and hire qualified persons reflecting the signifi-
cant demographic segments of the population residing in the area. 
"(2) (A) The Secretary shall take appropriate steps to provide for 
the increased participation of qualified disabled and Vietnam-era 
veterans (with special emphasis on those who served in the Armed 
Forces in the Indochina Theatre on or after August 5, 1964, and on 
or before May 7, 1975) in public service employment programs and 
job training opportunities supported under this Act, but nothing in 
this Act shall authorize the Secretary to establish a hiring or partici-
pation goal for such veterans. In carrying out this paragraph, tlie 
Secretary shall consult with and solicit the cooperation of the Admin-
istrator of Veterans' Affairs. Such steps shall include employment, 
training, supportive services, technical assistance and training, sup-
port for community based veterans programs, and maintenance and 
expansion of private sector veterans employment and training initia-
tives and such other programs or initiatives as are necessary to serve 
the unique readjustment, rehabilitation, and employment needs of 
veterans. 
"(B) Special efforts shall be made to acquaint such veterans with 
the employment and training opportunities available under this Act, 
and to coordinate efforts in behalf of such veterans with those activi-
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT.| 1935 
ties authorized by chapter 41 of title 38, United States Code (relating 38 USC 2001, et 
to job counseling and employment services for veterans), and other *^f 
similar activities carried out by other public agencies or organizations. 
"(C) Prime sponsors shall provide such arrangements as may be 
appropriate to promote maximum feasible use of apprenticeship or 
other on-the-job training opportunities available under section 1787 
of title 38, United States Code. 
"(c) (1) All persons participating in training under this Act shall 
receive allowances pursuant to section 124; no participant may receive 
allowances from funds under this Act for institutional or classroom 
training for more than 104 weeks in a 5-year period. 
"(2) Subject to section 212(b), no individual shall participate in Post, p. 1955. 
programs receiving financial assistance under this Act for longer than 
a total of 30 months in any 5-year period. For purposes of this sub-
paragraph, no period of participation prior to October 1, 1978, shall 
be included in the computation of such 30 months. 
"(d) (1) Conditions of employment and training shall be appropri-
ate and reasonable in the light of such factors as the type of work, 
geographical region, and proficiency of the participant. 
"(2) Appropriate health, safety and other standards for work and 
training shall be established and maintained. 
"(3) Household support obligations shall be taken into account, and 
special consideration shall be given alternative working arrangements 
such as flexible hours of work, work-sharing arrangements, and part-
time jobs, particularly for parents of young children and for older 
persons. 
"(4) All programs for in-school youth shall be consistent with 
applicable State educational standards. 
"(5) Appropriate workers' compensation or equivalent protection 
shall be provided to all participants. 
" (e) (1) The program shall result in an increase in employment and 
training opportunities over those opportunities which would otherwise 
be available. 
" (2) No currently employed worker shall be displaced by any par-
ticipant (including partial displacement such as a reduction in the 
hours of nonovertime work, wages, or employment benefits). 
"(3) No program shall impair existing contracts for services. 
" (4) No funds shall be used to assist in relocating establishments, or 
parts thereof, from one area to another or locating new branches, sub-
sidiaries, or affiliates unless the Secretary determines that such 
relocation or location will not result in an increase in unemployment 
in the area of original location or in any other area. 
"(f) (1) All programs, to the maximum extent feasible, shall con-
tribute to occupational development, upward mobility, development of 
new careers, and overcoming sex-stereotyping (including procedures 
which will lead to skill development and job opportunities for partici-
pants in occupations traditionally limited to the opposite sex). 
"(2) No person shall be trained for an occupation which requires 
less than 2 weeks of preemployment training unless there are 
immediate employment opportunities available in that occupation. 
"(3) All programs shall be designed, to the maximum extent prac-
ticable, consistent with every individual's fullest capabilities, to lead 
to employment opportunities enabling participants to increase their 
earned income and to become economically self-sufficient. 
92 STAT. 1936 
PUBLIC LAW 95-524—OCT. 27, 1978 
"(4) No person shall be referred for training unless there is a 
reasonable expectation of employment in the occupation for which 
such person is being trained. To the extent feasible, public service jobs 
shall be provided in occupational fields which are most likely to expand 
within the public or private sector. 
" (5) Programs of institutional training shall be designed for occupa-
tions in which skill shortages exist. 
"(g) (1) (A) No program shall substitute funds under this Act for 
other funds in connection with work that would otherwise be 
performed. 
"(B) Jobs shall be created that are in addition to those that would 
be funded in the absence of assistance under this Act. 
"(C) Funds shall be used to supplement, and not to supplant, the 
level of funds that would otherwise be made available from non-
Federal sources for the planning and administration of programs. 
"(2) Programs shall use services and facilities available (with or 
without reimbursement) from Federal, State, and local agencies to 
the extent they are deemed effective by the prime sponsor. 
"(h) (1) No nongovernmental individual, institution, or organiza-
tion shall be paid funds provided under this Act to conduct an evalu-
ation of any program under this Act if such individual, institution or 
organization is associated with that program as a consultant or tech-
nical advisor, or in any similar capacity. 
"(2) No member of any council under this Act shall cast a vote on 
any matter which has a direct bearing on services to be j)rovided by 
that member (or any organization which that member directly rep-
resents) or vote on any matter which would financially benefit the 
member or the organization which the member represents. 
"(i) Except as provided in section 212(b), work experience pro-
grams conducted under this Act shall not exceed a total of 1,000 hours 
for any individual (other than an in-school youth), for any year, and 
not more than 2,000 hours within a 5-year period beginning on the 
effective date of the Comprehensive Employment and Training Act 
Ante, p. 1909. 
Amendments of 1978. Work experience shall only be for persons who 
need assistance in becoming accustomed to basic work requirements, 
including basic work skills, in order to be able to compete successfully 
in the labor market. 
"(j) Funds available for employment benefits under this Act may 
be used, for the duration of participation, for contributions on behalf 
of participants who are, prior to July 1, 1979, enrolled in retirement 
systems or plans. With respect to participants enrolled in retirement 
systems or plans on or after such date, except as otherwise provided in 
regulations promulgated by the Secretary, no funds under this Act 
may be used for contributions to retirement systems or plans unless 
such contributions bear a reasonable relationship to the cost of provid-
ing benefits to participants. Such regulations shall take into considera-
tion circumstances where efforts are being made to change State or 
local laws or both affecting retirement coverage for individuals who 
are participants in activities funded pursuant to this Act. Pursuant 
Post, p. 1972. 
to section 314 of this Act, the Secretary shall provide technical assist-
ance to recipients to enable retirement systems or plans to comply with 
section 122 (k) and this subsection. 
"(k) Small and minority-owned businesses shall be provided maxi-
mum reasonable opportunity to compete for contracts for supplies and 
services including, where appropriate, the use of set-asides. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1937 
"(1) The Secretary shall promulgate regulations to insure that pay- Regulations, 
ments to employers organized for profit shall not exceed the difference 
between the costs of recruiting, training, and supportive services and 
the costs of lower productivity associated with employing an individ-
ual who lacks the requisite skills to perform the job in which the 
individual is placed and such costs for those otherwise employed. The 
length of time for which such payments may be made shall not exceed 
that period of time generally required for the acquisition of skills 
needed for a position within a particular occupation. 
" (m) Prime sponsors shall provide, where employment opportunities 
already exist or where there is a reasonable expectation of near-
term expansion of such employment potential, employment and train-
ing opportunities in the development and use of solar, geothermal, 
hydroelectric, and other alternative energy technologies, and conserva-
tion, especially those clean, safe, renewable resources which may assist 
communities in resolving energy demand problems, thereby reducing 
their reliance on conventional nonrenewable fuels. For purposes of 
this section, solar energy sources has the meaning set forth in section 3 
of the Solar Energy Research, Development and Demonstration Act 
of 1974. 
42 use 5552. 
"(n) (1) Xo prime sponsor may use any funds received under this 
Act to assist or promote union organizing. Without limiting the powers 
otherwise granted to the Secretary, funds found by the Secretary to 
be in violation of this subsection shall be refunded promptly to the 
United States Treasury. 
"(2) No individual may be required to join a union as a condition 
of enrolling in a program assisted under this Act in which only institu-
tional training is provided, unless such institutional training involves 
individuals employed under a collective-bargaining agreement which 
contains a union security provision. 
"(o) No funds provided under this Act shall be paid to any non-
governmental organization, association, firm or other entity for the 
conduct of any program or activity (other than under title VII or Post, p. 2010. 
on-the-job training) under this Act unless— 
"(1) such organization, association, firm or other entity has a 
meritorious written plan which has been reviewed and evaluated 
by the prime sponsor or, where appropriate, the Secretary, accord-
ing to standards promulgated by the Secretary and is found to 
meet the purposes and requirements of the Act; and 
"(2) such organization, association, firm or other entity is 
selected on the basis of merit which shall mean at least that such 
organization, association, firm or other entity— 
"(A) has the administrative capability to perform effec-
tively under the program; 
"(B) has submitted a written plan under paragraph (1) 
that compares favorably to other plans; and 
"(C) has not been seriously deficient in its conduct of or 
participation in any Department of Labor program in the 
past, or, is not a successor organization to one that was seri-
ously deficient in the past, unless the Secretary in his discre-
tion certifies after a clear, convincing, and detailed showing, 
that the deficiencies will be eliminated and performances 
substantially improved; and 
"(3) a comprehensive and independent monitoring program 
designed to insure compliance with i^o, plan and this Act is in effect 
9-194 O—80—pt. 2 
42 : QU 
92 STAT. 1938 
PUBLIC LAW 95-524—OCT. 27, 1978 
in accordance with standards promulgated by the Secretary 
requiring adequate training of monitors and procedures for the 
prompt follow up of problems found during the monitoring 
process. 
The Secretary shall issue regulations to achieve the objectives of this 
Post, p. 2010. 
subsection for title VII and on-the-job training programs with a 
minimum of burden on recipients. 
"(p) No recipient shall knowingly use any funds under this Act to 
enroll or serve any person who is an alien not lawfully admitted for 
permanent residence or who has not been authorized by the Attorney 
General to accept employment. 
" (q) Each prime sponsor receiving funds under this Act shall estab-
lish an independent unit to monitor compliance with the requirements 
of this Act, the regulations issued thereunder, and the comprehensive 
employment and training plan. The Secretary shall annually assess the 
effectiveness of the units established pureuant to the preceding sen-
tence, with particular regard to the adequacy of provisions made for 
funding, staffing, and insuring the independence and objectivity of 
monitoring practices and methods. 
"SPECIAL CONDITIONS APPLICABLE TO PUBLIC SERVICE EMPLOYMENT 
29 use 824. 
SEC. 122. Except as otherwise provided, the following conditions 
shall apply to all public service employment programs receiving finan-
cial assistance under this Act: 
" (a) Only persons residing within the area qualifying for assistance 
shall be employed, and the public services provided by such jobs, to the 
extent feasible, shall be designed to benefit the residents of such area. 
"(b) (1) (A) Public service employment under this Act is intended 
for eligible persons who are the most severly disadvantaged in terms 
of their length of unemployment and their prospects for finding 
employment. 
"(B) Special consideration in filling public service jobs shall be 
given to eligible persons who are public assistance recipients or who 
are eligible for public assistance but not receiving such assistance. 
"(2) Special consideration shall be given to eligible disabled and 
Vietnam-era veterans (with special emphasis on those who served in 
the Indochina Theatre on or after August 5, 1964, and on or before 
May 7, 1975) in accordance with procedures established by the Secre-
tary, and special attention shall be given to the development of jobs 
which will utilize, to the maximum extent feasible, the skills which 
such veterans acquired in connection with their military training and 
service. 
"(3) (A) Special emphasis in filling public service jobs shall be 
given to eligible members of groups specifically identified in section 
Post, p. 1960. 
?)01(a) as facing particular labor market disadvantages, taking into 
account the household support obligations of persons applying for 
such jobs, but nothing in this Act shall authorize the Secretary to 
establish hiring or participation goals for such persons. 
"(B) Special efforts shall be made to acquaint such persons with the 
employment and training opportunities available under this Act, and 
to coordinate efforts in behalf of such persons with activities author-
ized by section 301. 
"(c)(1) No person shall be employed or job opening filled (A) 
when any other person not supported under this Act is on layoff from 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1939 
the same or any substantially equivalent job, or (B) when the employer 
has terminated the employment of any regular employee not supported 
under this Act or otherwise reduced its workforce with the intention 
of filling the vacancy so created bj'^ hiring a public service employee. 
"(2) No funds for public service employment programs under this 
Act may be used to provide public services, through a private organiza-
tion or institution, which are customarily provided by a State, a 
political subdivision, or a local educational agency in the area served 
by the prograni. 
"(d) No jobs shall be created in a promotional line that will infringe 
in any way upon the promotional opportunities of persons cuii-ently 
employed in jobs not subsidized under this Act. 
"(e) No public service jobs shall be substituted for existing federally 
assisted jobs. 
"(f) The Secretary shall assure that prime sponsors have under-
taken, or will undertake, analyses and reevaluations of job descriptions 
and, where feasible, revisions of qualification requirements at all levels 
of employment, including civil service requirements and practices 
relating thereto, in accordance with regulations prescribed by the 
Secretary, with a view toward removing artificial barriers to public 
employment (as defined in section 3) of those whom it is the purpose 
of this Act to assist. 
"(g) Financial records relating to public service employment 
programs, and records of the names, addresses, positions, and salaries 
of all persons employed in public service jobs, shall be maintained and 
made available to the public. 
"(h)(1) All persons participating in public service employment 
shall receive wages in accordance with section 124. 
"(2) No participant may be paid wages from funds under this Act 
for public service employment for more than 78 weeks in a 5-year 
period. 
"(3) For purposes of paragraph (2), no more than 26 weeks of 
public service employment financed in whole or in part under this 
Act prior to October 1,1978, shall be considered as part of the 78 weeks. 
"(4) (A) The Secretary may waive the provisions of paragraph (2) 
or of section 121 (c) (2) to provide a temporary extension of time for a 
limited number of persons who were originally hired in a public 
service employment program prior to October 1, 1978, and who con-
tinue to be so employed on September 30,1979, in the case of a prime 
• 
- , 
sponsor which the Secretary determines has faced unusually severe 
hardships in its efforts to transition public service employees into 
regular public or private employment not supported under this Act or 
in the case of Native American entities who operate programs author-
ized under section 302 (c) (1) of this Act. 
Post, p. 1962. 
"(B) The Secretary may waive the provisions of paragraph (2), 
with respect to any area served by a unit of general local government 
which is eligible to be a prime sponsor (or any area served by such 
a Native American entity) in which the rate of unemployment is 
equal to or exceeds 7 percent or, in the case of a prime sponsor which 
is a State, any area under the jurisdiction of a unit of general local 
government in which the rate of unemployment is equal to or exceeds 
7 percent, to provide a temporary extension of time, which shall be 
no greater than 12 months in duration (and which shall be subject to 
the provisions of section 121(c)(2)), for persons hired on or after 
92 STAT. 1940 
PUBLIC LAW 95-524—OCT. 27, 1978 
October 1, 1978, in a public service employment program under any 
title of this Act in the case of a recipient which the Secretary deter-
mines has faced unusually severe hardships in its efforts to transition 
public service employees into regular public or private employment 
not supported under this Act because of high unemployment in the 
area of service. 
"(i) (1) Funds under this Act shall not be used to pay wages to 
any individual employed in a public service job at a rate in excess of 
$10,000 per year, but such maximum shall be adjusted upward for 
particular areas served by recipients as determined by the Secretary^ 
on the basis of the wage adjustment index issued in accordance with 
paragraph (3) of this subsection. In no case shall such maximum 
be increased by more than 20 percent, except in the case of an area in 
which the average wage (during the calendar year preceding the 
beginning of the applicable fiscal year) in employment covered under 
Federal or State unemployment compensation laws (without regard 
to any limitation on the amount of such wages subject to contribution 
under such law) exceeds 150 percent of the national average wage in 
such employment. 
"(2) In order to provide the maximum number of employment and 
training opportunities under this Act, the Secretary shall issue appro-
priate standards to be maintained on an area basis with respect to 
average federally-supported wage rates for public service jobs under 
this Act. Such standards shall be designed to assure that for particular 
areas served by recipients, as determined by the Secretary, an annual 
average federally-supported wage rate per public service jobholder 
equivalent to $7,200, as adjusted in accordance with the wage adjust-
ment index issued in accordance with paragraph (3) of this subsection, 
will not be exceeded. Average wage rates established under such stand-
ards for public service jobs for each area shall be adjusted annually 
by the Secretary by a percentage equal to the change in average wages 
in regular employment not supported under this Act in such area. 
Area wage 
"(3) The Secretary shall issue and publish annually an area wage 
adjustment index, adjustment index based upon the ratio which annual average wages in 
regulai- public and private employment in various areas served by 
recipients bear to the average of all such wages nationally, on the 
basis of the most satisfactory data the Secretary determines to be 
available. 
Post, p. 2012. 
"(4) (A) Except as otherwise provided in section 609, no public 
service employment participant may be provided wages for any public 
service employment job from sources other than this Act. 
"(B) Notwithstanding subparagraph (A), any person in public 
service employment on September 30, 1978, receiving wages from 
sources other than this Act may continue to receive such wages. 
"(j) Notwithstanding any eligibility limitation on public service 
employment in this Act, a person who on September 30, 1978, held a 
public service employment position under this Act may continue in 
such position subject to subsection (h) of this section. 
"(k) All persons employed in public service jobs shall be provided 
workers' compensation, health insurance, unemployment benefits, and 
other benefits and working conditions at the same level and to the same 
extent as other employees working a similar length of time, doing the 
same type of work and similarly classified. Any such classification 
must be reasonable and must include nonfederally financed employees, 
but within any single classification a distinction may be made between 
public service employees and other employees for purposes of deter-
mining eligibility for participation in retirement systems or plans 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1941 
which provide benefits based on age or service or both. Nothing in this 
subsection or in section 121(j) shall be deemed to require a contribu-
tion to a retirement system or plan for the purpose of providing retire-
ment benefits based on age or service, or both, to a public service 
employee unless funds under this Act are available, pursuant to section 
121 (j) to make such contribution. 
"(1) The Secretary, through State employment security agencies, 
shall inform unemployment compensation recipients and other appli-
cants for assistance from the employment security agency of any 
available public service jobs for which they may be eligible. 
"(m) To the extent feasible, public service jobs shall be provided in 
occupational fields which are most likely to expand within the public 
and private sectors, and to the extent compatible with such objectives, 
shall meet community needs including but not limited to community 
betterment activities (including rehabilitation of public properties, 
assistance in the weatherization of dwellings occupied by low income 
families, demonstration of energy conserving measures including solar 
energy techniques, removal of architectural barriers to access by handi-
capped persons to public facilities, and neighborhood revitalization), 
education, health care, transportation services, crime prevention and 
control, and environmental quality control. 
"(n) No individual shall be eligible to be employed in a public 
service employment position, if such individual has, within 6 months 
prior to the determination, voluntarily terminated, without good 
cause, his or her last previous full-time employment at a wage rate not 
less than the Federal minimum wage as prescribed under section 
6(a) (1) of the Fair Labor Standards Act of 1938. 
29 USC 206. 
"SPECIAL PROVISIONS 
"SEC. 123. (a) No authority conferred by this Act shall be used to 29 USC 825. 
enter into arrangements for, or otherwise establish, any employment 
and training programs in the lower wage industries, except for those 
iobs (1) for which there exists a training program, approved by the 
Secretary, of a specified length of time desigfied to teach specific skills, 
."nd (2) where the rate of labor turnover does not exceed substantially 
the rate of labor turnover in other industries in the same area. 
"(b) The Secretary shall provide for the sharing of the comprehen-
sive employment and training plans between the prime sponsors and 
other recipients in the prime sponsor's area in order to assure maxi-
mum feasible coordination of activities and programs within the area 
and to minimize duplication. 
"(c) (1) Notwithstanding any other provisions of law, employment 
and training furnished under this Act in connection with weatheriza-
tion projects may include work on projects for the near poor, including 
families having incomes which do not exceed 125 percent of the 
poverty level as determined in accordance with the criteria established 
by the Director of the Office of Management and Budget, and projects 
approved by the Community Service Administration pursuant to sec-
tion 222(a) (5) of the Economic Opportunity Act of 1964 or the 42 USC 2809. 
Department of Energy pursuant to title IV of the Energy Conserva-
tion and Production Act of 1976. 
42 USC 6851. 
"(2) Recipients of funds under this Act shall assure an adequate 
number of supervisory personnel for weatherization projects, who 
shall be adequately trained in skills needed to carry out the project 
and to instruct participants in skills needed to carry out a project. 
92 STAT. 1942 
PUBLIC LAW 95-524—OCT. 27, 1978 
Post, pp. 1950, 
1960, 1970, 
2005. 
Technical 
assistance. 
Regulations. 
42 u s e 1437f. 
Publication in 
Federal Register. 
Standards and 
procedures. 
"(3) The Secretary shall facilitate and extend projects for work 
on the weatherization of low income housing in titles II, III, IV, and 
VI of this Act, so as to achieve the most efficient match of manpower 
funds to materials funds. The Secretary shall, in coordination with 
other appropriate agencies, provide technical assistance and otherwise 
encourage prime sponsors, serving areas where such projects would 
contribute to energy savings, to develop and continue weatherization 
projects as part of their programs under this Act to best prepare 
applicants for employment in energy related jobs in unsubsidized 
employment. 
' (4) The Secretary shall issue regulations setting forth conditions 
under which prime sponsors, in carrying out community improvement 
projects, community betterment activities, and public service employ-
ment projects under this Act, may provide work for eligible partici-
pants on the rehabilitation of housing for lower-income families as 
defined in section 8(f) (1) of the United States Housing Act of 1937 
as part of community revitalization or stabilization projects. 
"(d) (1) All allocations under this Act shall be based on the latest 
available data and estimates satisfactory to the Secretary. 
"(2) Whenever the Secretary allocates funds required to be allocated 
by formula under this Act, the Secretary shall publish the proposed 
amount to be distributed to each prime sponsor. 
"(3) Whenever the Secretary utilizes a formula to allocate funds 
made available for distribution in the Secretary's discretion under the 
Act (except funds appropriated for title III), the Secretary shall, not 
later than 30 days prior to such allocation, publish the formula in the 
Federal Register for comment along with the rationale for the formula 
and the proposed amount to be distributed to each prime sponsor. 
After consideration of comments received under the preceding sen-
tence, the Secretary shall publish final allocations. 
"(e) For purposes of eligibility for participation in a program 
under this Act, no person shall be considered as unemployed unless 
such person has been unemployed for at least seven consecutive days. 
"(f) (1) All funds received under any title of this Act, which are 
allowed to be used for administrative costs under the provisions of the 
title under which they were received, may be pooled by the recipient 
so that they may be used to administer all programs under this Act, 
and may be used to plan for the administration of title VI programs 
without regard to present funding for such programs. 
"(2) Nothing in section 121 or this section shall be deemed to 
authorize the Secretary to pre-approve the selection of legal counsel by 
a prime sponsor, but the Secretary shall assure that no funds avail-
able for administrative costs under any title of this Act are used by 
a prime sponsor for making payments on contracts for legal or other 
associated services unless the prime sponsor certifies that— 
"(A) the payments are not unreasonable in relation to the fees 
charged by other contractors providing similar services; and 
"(B) the services could not be competently provided through 
employees of the prime sponsor or other available State or local 
governmental employees. 
"(g) The Secretary, by regulation, shall establish such standards 
and procedures for recipients of funds under this Act as are neces-
sary to assure against program abuses including, but not limited to, 
nepotism; conflicts-of-interest; the charging of fees in connection with 
participation in the program; excessive or unreasonable legal fees; 
the improper commingling of funds under the Act with funds received 
from other sources; the failure to keep and maintain sufficient, audit-
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1943 
able, or otherwise adequate records; kickbacks; political patronage; 
violations of applicable child labor laws; the use of funds for political, 
religious, antireligious, unionization, or antiunionization activities; the 
use of funds for lobbying local. State, or Federal legislators; and the 
use of funds for activities which are not directly related to the proper 
operation of the program. 
"(h) Pursuant to regulations of the Secretary, income generated 
under any program may be retained by the recipient to continue to 
carry out the program, notwithstanding the expiration of financial 
assistance for that program, 
"(i) Every recipient which receives funds directly from the Secre-
tary sliall be responsible for the allocation of such funds and the 
eligibility of those enrolled in the program and shall have responsibil-
ity to take action against its subcontractoi-s, subgrantees, and other 
recipients to eliminate abuse in their programs and to prevent aiiy 
misuse of funds by such subcontractors, subgrantees, and other recip-
ients. Prime sponsors may delegate the responsibility for determina-
tion of eligibility under reasonable safeguards, including provisions 
for reimbursement of cost incurred because of erroneous determina-
tions made with insufficient care, provided that the Secretary has 
approved such an arrangement pursuant to the provisions of section 
104(a). 
"(j) Federal assistance under this Act shall not be used for the pay-
ment of a fee for the placement of any persons in a training or employ-
ment program under this Act. Nor may any person or organization 
charge a fee for the placement or referral of any person in or to such 
program. 
"(k) The Secretary shall notify the Governor and the appropriate 
prime sponsor of any activity to be funded by the Secretary under this 
Act within the State or prime sponsor area. 
"(1) The Secretary and recipients of financial assistance under this 
Act shall give special consideration, in carrying out programs author- 
\ 
ized by this Act, to community-based organizations, as defined in 
section 3, which have demonstrated effectiveness in the delivery of ^nte, p. 1912. 
employment and training services-
"(m) The Secretary of Labor may assist Native American entities 
which are eligible to receive assistance under section 302, in applying 
for financial assistance under the Act. 
Ante, p. 1922. 
Notification. 
WAGES AND ALLOWANCES 
"SEC. 124. Except as otherwise provided in this Act, the following 29 USC 826. 
allowances and wages shall apply to all activities financed under this 
Act: 
"(a) (1) The Secretary shall establish a basic hourly allowance Basic hourly 
for an individual receiving training for which no wages are allowance, 
payable at a rate which, when added to the amounts of unemploy-
ment compensation, if any, received by the trainee, shall be no 
less than the hourly minimum wage under section 6(a) (1) of the 
Fair Labor Standards Act of 1938 or, if higher, under the State 29 USC 206. 
or local minimum wage law applicable to most employees in the 
State, and such basic allowances shall, in the case of an individual 
with dependents be increased by $5 a week for each dependent 
over 2 up to a maximum of 4 additional dependents. 
" (2) Pursuant to regulations of the Secretary, the prime sponsor 
may increase, decrease, prorate, or waive the basic allowance. 
"(3) Except for trainees receiving allowances under part A of 
title IV, a trainee receiving public assistance, or whose needs or Post, p. 1974. 
92 STAT. 1944 
PUBLIC LAW 95-524—OCT. 27, 1978 
29 use 206. 
income is taken into account in determining such public assistance 
payments to others, shall receive an incentive allowance for each 
hour spent in training not to exceed $30 per week. Such allowance 
shall be disregarded in determining the amount of public assist-
ance payments under Federal or federally assisted public assist-
ance programs. 
"(4) A trainee shall receive no allowances for hours during 
which the trainee fails to participate without good cause. 
"(b) A person in public service employment or similar employ-
ment shall be paid wages which shall not be less than the highest 
of (1) the minimum wage under section 6(a)(1) of the Fair 
Labor Standards Act of 1938 (2) the minimum wage under the 
applicable State or local minimum wage law or (3) the prevailing 
rates of pay for persons employed in similar occupations by the 
same employer. 
"(c) Persons in on-the-job training shall be compensated by 
the employer at such rates, including periodic increases, as may 
be deemed reasonable under regulations prescribed by the Sec-
retary, considering such factors as industry, geographical region, 
skill requirements and individual proficiency, 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 or the applicable State or local mini-
mum wage law. 
",(d) Persons in work experience shall be paid wages not less 
than the higher of the rate specified in section 6(a)(1) of the 
Fair Labor Standards Act of 1938 or the applicable State or local 
minimum wage law. 
'LABOR STANDARDS 
29 use 827. 
"SEC. 125. All laborers and mechanics employed by contractors or 
subcontractors in any construction, alteration, or repair, including 
painting and decorating of projects, buildings, and works which are 
.: 
3
- federally assisted under this Act, shall be paid wages at rates not less 
than those prevailing on similar construction in the locality as deter-
mined by the Secretary in accordance with the Davis-Bacon Act, as 
amended (40 U.S.C. 276a—276a-5). The Secretary shall have, with 
respect to such labor standards, the authority and functions set forth 
in Keorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 
1267) and section 2 of the Act of June 1, 1934, as amended (48 Stat. 
948, as amended; 40 U.S.C. 276 (c)). 
Rules and 
regulations. 
29 u s e 828. 
5 u s e 500 et seq. 
5 u s e 553. 
Publication in 
Federal Register. 
eopies to 
congressional 
committees. 
"SECRETARY'S AUTHORITY AND PERFORMANCE STANDARDS 
"SEC. 126. (a) (1) The Secretary may, in accordance with chapter 
5, title 5, United States Code, prescribe such rules and regulations, 
including performance standards, as deemed necessary in accordance 
with paragraph (2). Such rules and regulations may include adjust-
ments authorized by section 204 of the Intergovernmental Cooperation 
Act of 1968. For purposes of chapter 5 of such title any condition for 
receipt of financial assistance shall be deemed a rule to which section 
553 applies. AH such rules, regulations, guidelines, and other published 
interpretations or orders under this Act shall be published in the Fed-
eral Register at least 30 days prior to their effective date. Copies of 
all such rules, regulations, guidelines, and other published interpreta-
tions or orders shall be transmitted to the appropriate committees of 
the Congress at the same time and shall contain with respect to eacli 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1945 
material provision of such rules, regulations, guidelines, and other 
published interpretations or orders, citations to the particular substan-
tive section of law which is the basis therefor. 
" (2) The Secretary shall assess the adequacy of each prime sponsor's 
proposed performance and placement goals in accordance with per-
lormance standards which recognize that performance will vary with 
local conditions and the nature of employment barriers faced by the 
eligible population to be served. Performance standards shall provide 
appropriate recognition of differences associated with the degree of 
disadvantage or handicap of the eligible population, as well as such 
factors as— 
"(A) the local labor market conditions, including the levels of 
unemployment, and the current and projected labor market 
demands; 
"(B) the economic base of the community, including the growth 
or decline of industry within the community; 
"(C) the distribution of available employment opportunities 
by industry or occupation, for persons residing within the prime 
sponsor's area; 
"(D) the differing needs of the eligible population which will 
vary the costs for services and which will require setting different 
performance standards depending on the disadvantage,nandicap, 
capabilities, and job readiness of the eligible population to be 
served; and 
"(E) such other factors as the Secretary deems appropriate. 
"(b) The Secretary may make such grants, contracts, or agreements, 
establish such procedures and make such payments, in installments and 
in advance or by way of reimbursement, or otherwise allocate or 
expend funds made available under this Act, as deemed necessary to 
carry out the provisions of this Act, including (without regard to the 
provisions of section 4774(d) of title 10, United States Code) expendi-
tures for construction, repairs, and capital improvements, and includ-
ing necessary adjustments in payments on account of overpayments 
or underpayments. 
"(c) The Secretary may delegate within the Department of Labor 
authority over the Office established pursuant to section 135 in order 
to effectively carry out the purposes of such section. 
"(d) The Seci-etary shall, to the extent feasible, reduce the costs of 
compliance imposed on prime sponsors by rules and regulations issued 
under this Act including, but not limited to, the costs of applications, 
plan preparation, data collection, recordkeeping, report preparation, 
and other paperwork and regulatory cost burdens. 
" (e) In order to reduce paperwork burdens, the Secretary is author-
ized to consolidate reports required by this Act. Nothing in this sub-
section shall be construed to reduce or eliminate the requirements 
established by this Act relating to the furnishing of information by 
the Secretary. 
"(f) Notwithstanding any other provision of this Act, no authority 
to enter into contracts under this Act shall be effective except to such an 
extent or in such an amount as are provided in advance in appro-
priations Acts. 
"REPORTS 
"SEC. 127. (a) The Secretary shall make such reports and recom- 29 USC 829. 
mendations to the President as the Secretary deems appropriate 
pertaining to employment and occupational requirements, resources, 
use, and training, and the President shall transmit to the Congress a 
92 STAT. 1946 
PUBLIC LAW 95-524—OCT. 27, 1978 
report on the same topics not later than March 1 of each year. The first 
such report submitted after the effective date of the Comprehensive 
Ante, p. 1909. 
Employment and Training Act Amendments of 1978 shall include 
recommendations with respect to necessary legislative or adminis-
trative changes required to simplify on-the-job training contracting 
procedures under this Act. 
"(b) The Secretary and the Secretary of Health, Education, and 
Welfare shall report to the Congress on the extent to which social 
services, community colleges, area vocational and technical schools 
and other vocational education agencies and institutions, and voca-
tional rehabilitation agencies are being utilized to carry out training 
programs supported in whole or in part under this and related Acts; 
the extent to which administrative steps have been taken or are being 
taken to encourage the use of such facilities and institutions and 
agencies in the carrying out of the provisions of this Act; and any 
further legislation that may be required to assure eft'ective coordination 
and utilization of such facilities and agencies to the end that all 
federally supported employment and training, vocational education, 
and vocational rehabilitation programs can more effectively accomplish 
the objective of providing employment and training opportunities to 
all persons needing such employment and training. 
"(c) The Secretary shall annually transmit to the Congress a 
detailed report which evaluates all programs and activities conducted 
under this Act, including that information derived from evaluations 
Post, p. 1971. 
provided for in section 313. The Secretary shall include specific data 
concerning the extent to Avhich (1) participants in such activities sub-
sequently secure and retain public or private employment, participate 
in training or employability development programs, and (2) signifi-
cant segments of the population of unemployed persons are provided 
public service employment opportunities. No later than March 1,1980, 
the Secretary shall report to Congress proposals for the integration 
and consolidation of the programs established by part A of title IV and 
Post, pp. 1974, 
title VII with the program established by title II. 
2010. 
"(d) In order to assist the Secretary in preparing the report required 
by this section, the Secretary shall require as a condition of financial 
assistance that annual reports and evaluations be submitted in accord-
ance with regulations. The data derived from such reports shall be 
compiled on a State, regional, and national basis, and shall be included 
in the annual report to the Congress. Such reports shall include but 
not be limited to the following information: 
"(1) a detailed comparison of program performance with 
approved plan; 
"(2) participant characteristics (cross-tabulated); 
" (3) average cost per participant; and 
" (4) the types of outcomes that participants experience after 
the program. 
" (e) (1) In the annual report to Congress required in subsection (a), 
the Secretary shall make recommendations for program modification, 
including recommendations for the succeeding fiscal year, based upon 
such findings, and other legislative or administrative recommendations 
as the Secretary deems appropriate. 
"(2) In the annual report required in subsection (a), the Secretary 
, 
shall inchide a description of the actions, if any, which the Secretary 
undertook during the fiscal year for which the report is made to reduce 
the costs of compliance imposed on the prime sponsors by rules or 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1947 
regulations issued under this Act, as required under section 126(d). 
"(f) In the annual report required under subsection (a), the Secre-
tary shall report on the monitoring and auditing activities of the 
Department, on administrative changes made or proposed to improve 
such activities, and on actions taken under section 106, and shall make 
Ante, p. 1926. 
any necessary proposals for legislative action. 
" (g) The Secretary shall transmit to the Congress, as a part of the 
report required by subsection (a), a detailed report on the evaluations 
and pilot and demonstration projects conducted with funds made 
available under this Act, including employment service/prime sponsor 
demonstration projects. 
"(h) The Secretary shall, in consultation with the Director of the 
Office of Management and Budget, submit a report once each year to 
the Congress on efforts being taken to reduce paperwork and reporting 
and to comply with the requirements of the Federal Reports Act and 
management directives of the Office of Management and Budget. 
"(i) Any evaluation report, or data, or information collected in 
preparation of such report submitted under this section or under any 
other provisions of this Act, or any contract which is made or infor-
mation pursuant to such contract which is paid for or made with 
appropriated funds shall be made available upon request, within four 
days to the chairman or ranking minority member of the Committee 
on Education and Labor of the House of Representatives and the 
Committee on Human Resources of the Senate. 
"(j) The Secretary shall report to Congress, as part of the annual 
report for fiscal year 1979, his recommendations for legislative changes 
designed to increase the representatives and independence of the prime 
sponsor's planning councils, with special attention to the process for 
selecting council memberships. 
"SERVICES AND PROPERTY 
"SEC. 128. The Secretary is authorized, in carrying out functions 
29 USC 830. 
and responsibilities under this Act, to accept, purchase, or lease in the 
name of the Department, and employ or dispose of in furtherance of 
the purposes of this Act, or any title thereof, any money or property, 
real, personal, or mixed, tangible or intangible, received by gift, devise, 
bequest, or otherwise; and to accept voluntary and uncompensated 
services, notwithstanding the provisions of section 3679(b) of the 
Revised Statutes of the United States. 
31 USC 665. 
"UTILIZATION OP SERVICES AND FACILITIES 
"SEC. 129. (a) In addition to such other authority as the Secretary 
29 USC 831. 
may have, the Secretary is authorized, in the performance of functions 
under this Act, and to the extent permitted by law, to utilize the serv-
ices and facilities of departments, agencies, and establishments of the 
United States. The Secretary is also authorized to accept and utilize 
the services and facilities of the agencies of any State or political 
subdivision of a State, with its consent. 
"(b) The Secretary shall carry out responsibilities under this Act 
through the utilization, to the extent appropriate, of all resources for 
skill development available in industry, labor, public and private edu-
cational and training institutions, vocational rehabilitation agencies, 
and other State, Federal, and local agencies and other appropriate 
public and private organizations and facilities, with their consent. 
92 STAT. 1948 
PUBLIC LAW 95-524—OCT. 27, 1978 
a 
INTERSTATE 
AGREEMENTS 
29 use 832. 
"SEC. 130. In the event that compliance with provisions of this Act 
would be enhanced by cooperative agreements between States, the con-
i, 
t 
sent of Congress is hereby given to such States to enter into such com-
pacts and agreements to facilitate such compliance, subject to the 
approval of the Secretary. 
29 use 833. 
5 use 1501 et 
seq. 
29 use 834. 
Ante, p. 1926. 
42 use 
2000d-l. 
42 use 
2000d-2. 
'PROHIBITION AGAINST POLITICAL ACTIVITIES 
"SEC. 131. (a) The Secretary shall not provide financial assistance 
for any program under this Act which involves political activities. 
" (b) Neither the program, the funds provided therefor, nor person-
nel employed in the administration thereof, shall be, in any way or 
to any extent, engaged in the conduct of political activities in contra-
vention of chapter 15 of title 5, United States Code. 
"NONDISCRIMINATION 
"SEC. 132. (a) No person in the United States shall on the ground of 
race, color, religion, sex, national origin, age, handicap, or political affil-
iation or belief be excluded from participation in, be denied the benefits 
of, be subjected to discrimination under, or be denied employment in 
the administration of or in connection with any program or activity 
funded in whole or in part with funds made available under this Act. 
"(b) Whenever the Secretary determines that a recipient of financial 
assistance has failed to comply with subsection (a) or an applicable 
regulation, the Secretary, in addition to exercising the powers and 
functions provided in section 106, is authorized (1) to refer the matter 
to the Attorney General with a recommendation that an appropriate 
civil action be instituted; (2) to exercise the powers and functions pro-
vided by title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d); or 
(3) to take such other action as may be provided by law. In any case 
in which the Secretary receives a complaint from any interested person 
or organization under section 106 with respect to an alleged violation 
of subsection (a) of this section, the Secretary shall make the deter-
mination referred to in the preceding sentence no later than 120 days 
after receiving such complaint. 
"(c) When a matter is referred to the Attorney General pursuant 
to subsection (b), or whenever the Attorney General has reason to 
believe that a recipient is engaged in a pattern or practice in violation 
of the provisions of this section, the Attorney General may bring a 
civil action in any appropriate United States district court for such 
relief as may be appropriate, including injunctive relief. 
"(d) In addition to other remedies, the Secretary is authorized to 
enforce the provisions of subsection (a) dealing with discrimination 
on the basis of race, color, religion, sex, national origin, age, handicap, 
or political affiliation or belief, in accordance with section 602 of the 
Civil Rights Act of 1964. Section 603 of such Act shall apply with 
respect to any action taken by the Secretary to enforce such provi-
sions of such subsection. This section shall not be construed as affect-
ing any other legal remedy that a person may have if that person is 
excluded from participation in, denied the benefits of, subjected to 
discrimination under, or denied employment in the administration of 
or in connection with any program or activity receiving assistance 
under this Act. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1949 
" (e) No participant under this Act shall be discriminated against 
by reason of citizenship. Participation shall be open to citizens and 
nationals of the United States, lawfully admitted permanent resident 
aliens, and lawfully admitted refugees and parolees. 
"(f) (1) The Secretary shall review, on a periodic basis, the ade-
quacy of outreach, training, placement, and advancement practices 
with respect to handicapped individuals by each prime sponsor pur-
suant to section 103(b) (15) and shall insure that the special needs of 
^nte, p. 1918. 
such individuals are being met. 
"(2) The Secretary shall include in each annual report pursuant to 
section 127(a) a complete evaluation of the conduct of and achieve-
ments in outreach, training, placement, and advancement practices 
with respect to handicapped individuals by prime sponsors pursuant 
to section 103(b) (15), including a comparison of such practices and 
achievements with the preceding year. 
"RECORDS, Auorrs, AND INVESTIGATIONS 
"SEC. 133. (a) In order to assure that funds provided under this 29 USC 835. 
Act are used in accordance with its provisions, the following provi-
sions shall apply. 
"(1) Every recipient of funds under this Act shall make, keep, and 
preserve such records as the Secretary shall require with regard to 
each employee and each participant. Such records, including periodic 
reports, audits, and examinations, shall be preserved for such time 
as the Secretary establishes and shall be made available to the Secre-
tary at such time and in such form, including periodic reports, audits, 
and examinations as the Secretary may require by regulation or order. 
" (2) The Secretary may investigate such facts, conditions, practices, 
or other matters the Secretary deems necessary to determine whether 
any recipient of funds or any official of such recipient has violated any 
provision of this Act or of the regulations. Such investigations may 
include, but need not be limited to, inspecting all records of the 
recipient (including making certified copies thereof), questioning 
employees, and entering any premises or onto any site in which any 
part of the recipient's program is conducted. 
"(3) For the purpose of any hearing or investigation authorized 
under this Act, the provisions of section 9 of the Federal Trade Com-
mission Act (15 U.S.C. 49, relating to the attendance of witnesses and 
the production of books, papers, and documents) are made applicable 
to the Secretary. 
"(b) The Secretary shall complete all audits of recipients of funds 
which he deems necessary in a timely fashion following the end of the 
fiscal year for which the audits are made. In the annual report required 
under section 127(a), the Secretary shall include a statement of the 
average delay between the end of each fiscal year and the audits of 
prime sponsors for such year, the actions, if any, taken by the Secretary 
to reduce the delay, and the additional funds and personnel the Secre-
tary would need in order to carry out all audits within the 24-month 
period following the end of the fiscal year for which the audits are 
made. 
"BONDING 
"SEC. 134. Every officer, director, agent, or employee of a recipient 29 USC 836. 
of funds under this Act who handles funds or other financial assistance 
received under the Act shall be bonded to provide protection against 
loss by reason of fraud or dishonesty on such person's part directly or 
92 STAT. 1950 
PUBLIC LAW 95-524—OCT. 27, 1978 
Establishment. 
29 use 837. 
Periodic 
publications. 
Establishment. 
29 use 841. 
through conspiracy with others. The Secretary shall establish the 
amount and other bonding requirements by regulation. 
u 
OFFICE o r MANAGEMENT ASSISTANCE 
"SEC. 135. The Secretary shall establish, in the office of the Secre-
tary, an Office of Management Assistance and shall assign to such office 
such especially qualified accountants, management specialists, and 
other professionals as may be necessary and available to provide 
management assistance to smj prime sponsor— 
"(1) seeking the service of such office on its own initiative to 
assist it in overcoming problems in the management, operation, or 
supervision of any program or project under this Act; and 
"(2) identified, pursuant to a complaint investigation, internal 
audit, or audit or investigation as not being in compliance with 
any important requirement of this Act, of regulations issued there-
under, or of the comprehensive employment and training plan. 
Services under this section may be provided on a reimbursable or non-
reimbursable basis, as determined by the Secretary, and shall be 
allocated in a manner to assure equitable but effective distribution of 
such services. The Secretary shall periodically publish any proposals 
for corrective action made by the Office which may be useful to other 
prime sponsors. 
"TITLE II—GOMPREHENSIVE EMPLOYMENT AND 
TRAINING SERVICES 
"PART A—FINANCIAL ASSISTANCE PROVISIONS 
a 
PURPOSE OF PROGRAM 
"SEC. 201. It is the purpose of this title to establish programs to 
provide comprehensive employment and training services throughout 
the Nation in order to ease barriers to labor force participation 
encountered by economically disadvantaged persons, to enable such 
persons to secure and retain employment at their maximum capacity, 
and to enhance the potential for individuals to increase their earned 
income. Such programs shall include the development and creation 
of training, upgrading, retraining, education, and other services needed 
to enable individuals to secure and retain employment at their maxi-
mum capacities so as to increase their earned incomes. 
; ' 
"ALLOCATION OF FUNDS 
29 use 842. 
«SEC. 202. (a) (1) (A) Eighty-five percent of the amount available 
for parts A, B, and C of this title in fiscal year 1979 shall be allocated 
as follows: 
"(i) 50 percent of the amount allocated under this paragraph 
shall be allocated to each State on the basis of the sums received 
..^ by the State under title I of the Comprehensive Employment and 
Ti'aining Act of 1973 for fiscal year 1978 compared to the sums 
received by all States under such title in that year; 
" (ii) 371/^ percent of the amount allocated under this paragraph 
^ , ; 
shall be allocated to each State on the basis of the relative number 
of unemployed persons within the State as compared to the num-
ber in all States; 
"(iii) 121/^ percent of the amount allocated under this para-
graph shall be allocated to each State on the basis of the relative 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1951 
number of adults in families with an annual income below the 
low-income level within the State compared to the total number 
in all States; and 
" (iv) Not less than $2,000,000 shall be allocated among Guam, 
the Virgin Islands, American Samoa, the Trust Territory of the 
Pacific Islands, and the Northern Marianas in accordance with 
their respective needs. 
''(B) The sum allocated to each State shall be allocated by the 
Secretary among prime sponsors within the State on an equitable basis 
based upon the factors set forth in subparagraph (A). 
' 
"(2) (A) Eighty-five percent of the amount available for parts A, 
B, and C of this title in fiscal years 1980, 1981, and 1982 shall be 
allocated as follows: 
"(i) two-thirds of such amount shall be allocated in accordance 
with the provisions of subparagraph (B) of this paragraph; and 
"(ii) one-third of such amount shall be allocated in accordance 
with the provisions of subparagraph (C) of this paragraph. 
"(B) The amount allocated under this subparagraph shall be allo-
cated as follows: 
" (i) 50 per centum of the amount allocated under this subpara-
graph shall be allocated on the basis of the amount allocated to 
the prime sponsor under this subparagraph (or under paragraph 
(1)) in the fiscal year prior to the year for which the determina-
tion is made compared to the amount so allocated to all prime 
sponsors in that year; 
"(ii) 371/^ per centum of the amount allocated under this sub-
paragraph shall be allocated on the basis of the relative number 
of unemployed persons within jurisdiction of the prime sponsor as 
compared to such numbers in all such jurisdictions; 
"(iii) 121/^ per centum of the amount allocated under this sub-
paragraph shall be allocated on the basis of the relative number 
of adults in families with an annual income below the low-income 
level within the jurisdiction of the prime sponsor compared to 
such total numbers in all such jurisdictions; and 
"(iv) not less than $2,000,000 shall be allocated among Guam, 
the Virgin Islands, the Northern Marianas, American Samoa, and 
the Trust Territory of the Pacific Islands, in accordance with 
their respective needs. 
"(C) The amount allocated under this subparagraph shall be allo-
cated among prime sponsors in accordance with the number of unem-
ployed persons residing in areas of substantial unemployment within 
the jurisdiction of the prime sponsor compared to the number of unem-
ployed persons residing in all such areas. 
"(b) Six percent of the funds available for parts A, B, and C of 
this title shall be available only for grants under section 204 for supple-
mental vocational education assistance. 
"(c) One percent of the amount available for parts A, B, and C of 
this title shall be available to the Secretary to be allocated in the same 
manner as provided under subsection (a) to States for the costs of the 
State employment and training council incurred in carrying out the 
provisions of section 110, except that no State shall receive an alloca- Ante, p. 1930. 
tion of less than $50,000. If any State does not need the amount allo-
cated under this subsection for any fiscal year, that amount shall be 
available for the Governor's coordination and special services under 
section 105. 
Ante, p. 1925. 
"(d) One percent of the amounts available for this title shall be 
available to the Governor of each State in the same proportion as that 
92 STAT. 1952 
PUBLIC LAW 95-524—OCT. 27, 1978 
State's allocation under subsection (a) for encouraging coordination 
and establishing linkages between prime sponsors and appropriate 
educational agencies and institutions, and institutions providing train-
ing programs which are approved by the Secretary, and for services 
for eligible participants delivered jointly by employment and training 
agencies and appropriate educational agencies and institutions. 
"(e) Four percent of the amounts available for parts A, B, and C 
of this title shall be available to each Governor in the same proportion 
as that State's allocation under subsection (a), for the Governor's 
Ante, p. 1925. 
coordination and special services under section 105, and, when deemed 
necessary by the Governor, for additional support of State employment 
and training councils. 
"(f) (1) The remainder of the funds shall be available in the Secre-
tary's discretion to be distributed among prime sponsors (or where a 
prime sponsor's comprehensive employment and training plan has not 
been approved, an area served by the Secretary under the authority 
in section 102) in accordance with the provisions of paragraph (2). 
"(2) (A) The Secretary shall first utilize such funds to assure that 
each prime sponsor is provided with (i) an amount for fiscal year 1979 
equal to 90 percent of the sum of the funds available for expenditure 
during fiscal year 1978 by such prime sponsor under section 103(a) (2), 
29 use 813. 
(f)^ and (g) (as in effect prior to the enactment of the Comprehensive 
Employment and Training Act Amendments of 1978); (ii) an amount 
for fiscal year 1980, equal to 90 percent of the sum of the funds avail-
able for expenditure during fiscal year 1979 by prime sponsors under 
subsection (a) (1); or (iii) an amount for any fiscal year beginning 
on or after October 1,1980, equal to 90 percent of the sum of the funds 
available for expenditure during the preceding fiscal year by such 
prime sponsor under subsection (a)(2). 
"(B) The Secretary shall next use such funds (i) to provide con-
tinued support for concentrated employment program grantees serving 
rural areas having high levels of unemployment, and (ii) to allocate 
among the prime sponsors serving areas within those standard metro-
politan statistical areas and central cities for which current population 
surveys were used to determine annual unemployment data prior to 
January 1, 1978, in proportion to the extent to which such prime 
sponsors allocations under this subsection are reduced as a result of 
termination of the use of such surveys, but in no event shall such a 
prime sponsor receive an amount in excess of the amount of such 
reduction. The allocations required under clause (ii) of this subpara-
graph shall not be made for any fiscal year beginning on or after Octo-
ber 1,1980, or until such time as the Secretary determines that current 
population survey data is available for use on a satisfactory basis for 
such areas and the remaining area of each State, whichever occurs first. 
"(C) The Secretary shall next use such funds as needed to provide 
continued funding of programs of demonstrated effectiveness, and to 
encourage, after consultation with and receiving recommendations 
from the Governor of the appropriate State, voluntary consortia 
Ante, p. 1917. 
(formed under section 101(a)(3)) where the Secretary determines, 
pursuant to regulations, that such consortia demonstrate advantages 
' 
in delivering employment and training services to substantial portions 
of functioning labor market areas. 
"(g) Prime sponsors are authorized to use funds allocated under 
this section to support prime sponsor planning councils. 
PUBLIC LAW 95-524^0CT. 27, 1978 
92 STAT. 1953 
"CONDITIONS FOR RECEIPT or FINANCIAL ASSISTANCE 
"SEC. 203. (a) The Secretary shall not provide financial assistance 29 USC 843, 
for any fiscal year to a prime sponsor unless the prime sponsor submits 
a satisfactory comprehensive employment and training plan pursuant 
to section 103. 
Ante, p. 1918. 
"(b) Not more than 6.5 per centum of each prime sponsor's alloca-
tion under section 202(a) may be used for programs and activities 
under part C of this title. 
"(c) (1) The Secretary shall not provide financial assistance under 
this title for any fiscal year to a prime sponsor unless the prime sponsor 
provides assurances that (consistent with needs identified in the prime 
sponsor's plan submitted under section 103(a)) it shall make agree-
ments with State or local educational agencies or postsecondary educa-
tional institutions for the conduct of employment and training 
programs, which programs may consist of— 
"(A) vocational training designed to prepare individuals for 
employment; 
"(B) instruction in basic cognitive skills necessary to obtain 
employment or pursue further education or training designed to 
prepare individuals for employment; 
"(C) employment of persons in schools controlled by such 
agencies or in postsecondary institutions; and 
' * j * •ir" 
"(D) such other employment and training activities as may be 
consistent with the purposes and provisions of this title. 
"(2) Each such agreement entered into under this subsection shall 
describe in detail the employment opportunities and appropriate edu-
cational, training, or other services to be provided, and shall contain 
provisions to assure that funds utilized pursuant to the agreement 
will not supplant State or local funds expended for the same purpose. 
"(3) In the event a prime sponsor is unable to reach agreements 
with the appropriate educational agencies or institutions, or in the 
event such agencies or institutions are dissatisfied with the utilization 
of their facilities proposed by the prime sponsor, either may request 
the Secretary to review such arrangements and the Secretary, after 
affording an opportunity for a hearing and taking into consideration 
such factors as he considers relevant, may take such action as he deems 
appropriate within 90 days after receiving such a request. 
"SUPPLEMENTAL VOCATIONAL EDUCATION ASSISTANCE 
"SEC. 204. (a) (1) From the funds available to him for this section, 29 USC 844. 
the Secretary shall make grants to Governors to provide financial 
assistance, through State vocational education boards, to provide 
needed vocational education services in areas served by prime spon-
sors, in accordance with an agreement between the State vocational 
education board and the prime sponsor. 
"(2) The State vocational education board, prior to making any 
agreement with a prime sponsor as provided in paragraph (1), shall 
consult with and obtain the advice and comment of the designated 
representatives of the State agencies and councils which are required 
to be involved in the formulation of the five-year State plan for voca-
tional education pursuant to section 107(a) (1) of the Vocational Edu-
cation Act of 1963. 
20 use 2307. 
"(b) All of the sums available to carry out this section shall be 
allocated among the States in the manner provided for allocating 
funds under section 202(a). 
39-194 O—80—pt. 2 
43 : QL3 
92 STAT. 1954 
PUBLIC LAW 95-524—OCT. 27, 1978 
"(c) (1) Not less than 85 percent of the funds available under this 
F4'4 };>•;; 
section shall be used only for providing vocational education and 
• * ' * 
services to participants in programs under this Act. 
" (2) The remainder of the funds available under this section may be 
,^, 
used— 
• * \ '^ • *
^
' *
" 
" (A) to coordinate programs under this Act with existing voca-
' 
tional education programs; 
" ( B ) to coordinate the utilization of funds under this Act and 
20 use 2301 
the Vocational Education Act of 1963 to enhance economic growth 
°***®- 
and development in the State; 
"(C) to develop linkages between vocational education, educa-
tion, and training programs under this Act and private sector 
employers; 
" ( D ) to provide technical assistance to vocational education 
i 
institutions and local education agencies to aid them in making 
cooperative arrangements with appropriate prime sponsors; 
" ( E ) to provide information, curriculum materials, and tech-
nical assistance in curriculum development and staff developments 
^'•^" 
to prime sponsors. 
u. 
PARTICIPANT ASSESSMENT 
29 use 845. 
"SEC. 205. (a) In order to assess the appropriate mixture of training 
or employment services, or both, needed by each individual receiving 
assistance under this title, the prime sponsor shall assist each such 
individual to establish a personalized employability plan. In estab-
lishing such plan, prime sponsors shall take into consideration an 
individual's skills, interests, and career objectives, subject to the avail-
ability of services, and shall consider the barriers to employment or 
advancement faced by that individual in order to assist that individual 
to attain unsubsidized employment. 
" (b) An assessment of appropriate training and supportive services 
shall be made at the time of entrance to a program assisted in part or 
in whole by this title, which shall be reviewed periodically throughout 
the duration of the individual's participation in a program funded 
tmder this title. Such assessment shall be included in each individual's 
employability plan. 
"PART B—SERVICES FOR THE ECONOMICALLY DISADVANTAGED 
"DESCRIPTION OF PROGRAM 
29 use 846. 
"SEC. 211. Comprehensive employment and training services may 
include, but need not be limited to, the following: 
"(1) job search assistance, including orientation, counseling, 
; 
and referral to appropriate employment and training opportu-
nities : 
\ 
" (2) outreach to make persons aware of the availability of, and 
I 
to encourage them to use, employment and training services; 
"(3) supported work programs or activities; 
t 
"(4) education and institutional skill training to prepare per-
sons to enter the labor market, or to qualify for more productive 
job opportunities and increased earnings; 
-TOiiS 3'SJ '/H 
"(5) on-the-job training and training leading to self-employ-
ment in small business; 
"(6) work experience programs providing employment oppor-
tunities for eligible individuals unable to attain employment with 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1955 
public or private sector employers, which shall be designed to 
increase the employability of the participants through develop-
ment of work habits, occupational skills, and linkages with other 
training programs, or to provide temporary employment to indi-
viduals who are seeking suitable placement in classroom training, 
on-the-job training, public service employment, or other such 
employment and training opportunities ; 
"(7) payments or other inducements to public or private 
.SM^i i =
H 
employers to expand job opportunities, in accordance with sec-
tion 121(1); 
"(8) services to individuals to enable them to retain employ-
ment; 
-SM'i ., .ion 
" (9) supportive services, including, but not limited to, necessary 
health care, child care, residential support, or assistance in secur-
ing bonds, and transportation, needed to enable individuals to 
participate in employment and training; 
" • 
"(10) development of labor market information, and activities 
such as job restructuring, to make the program more responsive to 
the needs of the eligible population; 
"(11) training, employment opportunities, and related services 
conducted by community based organizations; 
"(12) part-time, flexitime, and other alternative working 
arrangements for individuals who are unable because of age, 
handicap, or other factors to work full-time: 
"(13) payment of allowances to persons in training for which 
they receive no remuneration, and payment of such allowances 
for transportation, subsistence, or other expenses incurred in train-
ing or employment; and 
"(14) any programs or activities authorized by part A of title 
III, title IV, and title VII of this Act. 
Post, pp. 1974, 
2010. 
LIMITATIONS ON USE OF FUNDS 
"SEC. 212. (a) No prime sponsor may use funds allocated for parts 29 USC 847. 
A, B, and C for public service employment. 
"(b) Work experience programs conducted under this part, except 
for in-school youth, shall— 
"(1) be designed to lead to unsubsidized employment, and 
" (2) be subject to the limitations on duration specified in section 
121 (c) (2) and section 121 (i), 
Ante, p. 1934. 
unless the prime sponsor's plan as approved by the Secretary estab-
lishes that the lack of alternative job opportunities in the area makes 
such conditions and limitations impractical. 
"ELIGIBILITY FOR PARTECIPATION 
"SEC. 213. A person shall be eligible to participate in a program 29 USC 848. 
receiving financial assistance under this part only if such person is 
economically disadvantaged and either unemployed, underemployed, 
or in school. 
"SERVICES FOR 
Y O U T H 
^BB J< J 
"SEC. 214. (a) Services for youth under this part shall be designed 29 USC 849. 
to assist eligible participants in overcoming the particular barriers to 
employment experienced by youth, including lack of basic educational 
or vocational skills, insufficient preparation for the personal adapta-
tions necessary for labor force participation, inability to find or sue-
92 STAT. 1956 
PUBLIC LAW 95-524—OCT. 27, 1978 
cessfully apply for employment, financial barriers to labor force 
participation, and lack of appropriate job opportunities. 
"(b) The Secretary shall insure that each prime sponsor's plan for 
serving eligible youth under this part includes— 
"(1) provisions for coordinating activities under this part with 
activities under part A of title IV of this Act; 
"(2) assurances that, to the maximum extent feasible, the activ-
Post, p. 1982. 
ities enumerated in section 432 of this Act, except for public 
service employment, will be utilized to serve youth under this 
part; and 
"(3) procedures for review of such plans by the youth council 
Post, p. 1985. 
established under section 436 (b) of this Act. 
u 
SERVICES FOR OLDER WORKERS 
29 use 850. 
"SEC. 215. (a) Services for older workers under this part shall be 
designed to assist eligible participants in overcoming the particular 
barriers to employment experienced by older workers, including skills 
that are obsolete or no longer needed in the community, changing 
physical characteristics associated with aging, employer reluctance to 
hire older workers, financial barriers to labor force participation, and 
lack of appropriate job opportunities. 
"(b) The Secretary shall insure that each prime sponsor's plan for 
serving eligible older workers under this part includes provisions for 
utilizing activities including activities described in section 308 and 
coordinating services for older workei-s under this part witli programs 
and services provided by senior centers, area agencies on aging, and 
State agencies on aging (as designated under the Older Americans Act 
42 use 3001 
of 1965). 
"Ot®- 
" S E R V I C E S FOR PUBLIC ASSISTANCE RECIPIENTS 
29 use 851. 
"SEC. 216. (a) Services for public assistance recipients under this 
part shall be designed to assist eligible participants in overcoming the 
,V"' 
particular barriers to employment experienced by such recipients, 
including lack of basic educational or vocational skills, insufficient 
preparation for the personal adaptations necessary for labor force 
participation, inability to find or successfully apply for employment, 
inability to obtain transportation to employment opportunities, medi-
cal problems, inability to obtain satisfactory child care, and lack of 
/< -
J q 
appropriate job opportunities. 
" (b) The Secretary shall insure that each prime sponsor's plan for 
serving eligible public assistance recipients under this part includes 
provisions for coordinating services assisted under this part with 
other programs assisted under this Act; and with services provided by 
State and local public assistance agencies. 
'• 
^" ' ^ ' 
"PART C—UPGRADING AND RETRAINING 
u OCCUPATIONAL UPGRADING AND RETRAINING 
29 use 852. 
"SEC. 221. (a) Pursuant to regulations of the Secretary, prime spon-
sors may provide financial assistance to public and private employers 
tvra 
; 
for the costs associated with occupational upgrading programs, includ-
ing supportive services, through agreements with public and private 
employers for the employees of such employers. Individuals eligible 
for such programs shall be individuals operating at less than their 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1957 
full skill potential, primarily those in entry level positions or posi-
tions with little normal advancement opportunities. In any program 
receiving financial assistance under this section— 
"(1) the positions for which employees are being upgraded 
shall be positions not regularly available to entry level employees, 
and for which adequately trained persons are not available; 
"(2) the selection of employees for upgrading shall be based 
upon potential and the lack of availability for advancement in a 
normal promotional line; 
"(3) the education and skill training content of the upgrading 
program shall provide employees with a reasonable progression 
resulting in qualifications for a recognized position of greater skill, 
responsibility, remuneration, or career advancement in the serv-
ice of that employer ; 
"(4) the training period for upgrading shall be reasonable and 
consistent with periods customarily required for 
comparable 
training ; 
"(5) adequate personnel, attendance and progress records shall 
be maintained; 
"(6) the program shall be designed, to the extent feasible, so 
that 
additional vacancies are created for new entry 
level 
employees; 
' (7) compensation shall be paid by the employer at rates, includ-
ing periodic increases, as the Secretary deems reasonable, consid-
ering such factors as industry practice, skill requirements, 
individual proficiency, and the geographical region, but not at 
rates less than that received before upgrading; and 
" (8) successful completion shall be expected to result in employ-
ment with the employer in the occupation for which the employee 
has been upgraded and at not less than prevailing wages. 
.: 
"(b) (1) Pursuant to regulations of the Secretary, prime sponsors 
Retraining 
may conduct retraining programs, including supportive services, programs, 
directly or through agreements with public and private employers 
or other organizations or agencies. 
, . 
"(2) Entry into retraining programs shall be only for individuals 
v^n.* 
who have previously received a bona fide notice of impending layoff, 
and who are determined, pursuant to regulations of the Secretary, to 
have little opportunity to be reemployed in the same or equivalent 
occupation or skill level within the labor market area. 
"(3) Ketraining programs shall meet such standards as the Secre-
tary shall establish by regulation. 
"(c) If upgrading or retraining is for or from jobs covered by collec-
tive bargaining agreements, agreements with employers to carry out 
such programs shall have the concurrence of labor organizations 
representing employees in such jobs. 
"PART D—TRANSITIONAL EMPLOYMENT OPPORTUNITIES FOR THE 
ECXDNOMICALLY 
DISADVANTAGED 
(( 
STATEMENT OF PURPOSE 
"SEC. 231. I t is the purpose of this part to provide economically 
29 USC 853. 
disadvantaged persons who are unemployed with transitional employ-
ment in jobs providing needed public services, and related training 
and services to enable such persons to move into employment or train-
ing not supported under this Act. 
92 STAT. 1958 
PUBLIC LAW 95-524—OCT. 27, 1978 
u 
F I N A N C I A L 
ASSISTANCE 
» . 
.-^ i i . < 
i i , . * 
29 use 854. 
"SEC, 232. (a) The Secretary shall provide financial assistance to 
prime sponsors for transitional public service employment for eco-
nomically disadvantaged persons who are unemployed. Such employ-
ment— 
n 
" (1) shall be entry level; 
"(2) shall be combined with training and supportive services 
if such training and services are reasonably available in the area; 
and 
"(3) shall be designed to enable participants to move into 
unsubsidized employment. 
"(b)(1) Not more than 10 percent of the funds allocated to a prime 
sponsor in accordance with the provisions of this part may be used for 
administrative and other allowable costs (such as supplies, materials, 
and equipment) incurred by the prime sponsor, program agents, 
project applicants, or subgrantees or contractors, in accordance with 
such regulations as the Secretary may prescribe. 
"(2) Not less than— 
^ 
"(A) 10 percent of the funds so allocated for fiscal year 1979 
|y,. 
"(B) 15 percent of the funds so allocated for fiscal year 1980 
"(C) 20 percent of the funds so allocated for fiscal year 1981 
"(D) 22 percent of the funds so allocated for fiscal year 1982 
shall be used only for training. 
"(3) The remainder of the funds so allocated may be expended only 
for wages, employment benefits, training, and supportive services, to 
persons employed in public service employment under this part. 
u 
ALLOCATION 
OF F U N D S 
; Si ^ 
29 use 855. 
"SEC 233. (a) Funds made available for carrying out this part shall 
be allocated among prime sponsors by the Secretary in accordance with 
" 
subsection (b). 
"(b) The Secretary shall reserve an amount equal to not less than 2 
Supra. 
percent of the amounts made available pursuant to section 232 for any 
fiscal year to enable Native American entities which are described in 
section 302(c) (1)^A) to carry out public service employment 
programs under this part. Eighty-five percent of the amounts made 
available for this part for any fiscal year shall be allocated in accord-
ance with subsection (c). 
" (c) (1) Twenty-five percent of the amount allocated under this sub-
section shall be allocated among prime sponsors in proportion to the 
relative number of unemployed persons who reside in areas within the 
jurisdiction of each such prime sponsor as compared to the number of 
unemployed persons who reside in all such areas in all the States. 
"(2) Twenty-five percent of the amount allocated under this sub-
section shall be allocated among prime sponsors on the basis of the 
relative excess number of unemployed persons who reside within the 
jurisdiction of the prime sponsor as compared to the total excess 
number of unemployed persons who reside within the jurisdiction of 
"Excess^ 
all prime sponsors. For purposes of this subparagraph, the term 'excess 
number." 
number' means (i) the number which represent unemployed persons 
in excess of 41^ percent of the labor force in the jurisdiction of the 
prime sponsor in whose jurisdiction such persons reside, or (ii) in the 
case of a prime sponsor which is a State, the term 'excess number' 
means such number as defined in clause (i) or the number which repre-
sents unemployed persons in excess of 4^/^ percent of the labor force in 
areas of substantial unemployment. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1959 
"(3) Twenty-five percent of the amount allocated under this sub-
section shall be allocated among prime sponsors in accordance with 
the number of unemployed persons residing in areas of substantial 
unemployment within the jurisdiction of the prime sponsor compared 
to the number of unemployed persons residing in all areas of substan-
tial unemployment. 
"(4) Twenty-five percent of the amount allocated under this sub-
section shall be allocated on the basis of the relative number of adults 
in families with an annual income below the low-income level within 
the jurisdiction of the prime sponsor compared to such total numbers 
in ail such jurisdictions. 
" (d)(1) The Secretary shall, from the remainder of the funds made Remainder o
i
F 
available under this part, first use such remainder— 
funds. 
"(A) to provide continued support for concentrated employ-
ment program grantees serving rural areas having higji levels of 
unemployment, and 
;'? ) 
v 
"(B) to allocate among the prime sponsors serving areas within 
^'' those standard metropolitan statistical areas and central cities 
for which current population surveys were used to determine 
annual unemployment data prior to January 1, 1978, in propor-
tion to the extent to which such prime sponsors allocations under 
this section and title IV are reduced as a result of termination of 
the use of such surveys, but in no event shall such a prime sponsor 
receive an amount in excess of the amount of such reduction. 
The allocations required under clause (B) of this subparagraph shall 
not be made for any fiscal year beginning on or after October 1, 1980, 
or until such time as the Secretary determines that current population 
survey data is available for use on a satisfactory basis for such areas 
and the remaining area of each State, whichever occurs first. 
"(2) The remainder of the amount made available under this part 
shall be available to the Secretary for financial assistance to prime 
sponsors and Native American entities described in section 302(c) (1) 
(A) as the Secretary deems appropriate. 
"(e) For purposes of making allocations under subsections (c) (1) 
and (c) (2) of this section, the Secretary shall use average annual 
data for the most recent 12-month period for which satisfactory data 
are available. 
"EXPENDITURE or FUNDS 
"SEC. 234. Funds available for the purposes of this part shall be 29 USC 856. 
utilized by prime sponsors for public service employment activities, 
or projects carried out by project applicants as defined in section 3, Ante, p. 1912. 
or for activities set forth in section 211. 
"PRIME SPONSORS AND PROGRAM AGENTS 
"SEC. 235. The provisions set forth in section 606 of this Act shall be 29 USC 857. 
applicable to this part. 
^ost, p. 2008. 
"ELIGIBILITY 
"SEC. 236. (a) An individual eligible to be employed in a position 29 USC 858. 
supported under this part shall be a person (1) who has been unem-
ployed for at least 15 weeks and who is economically disadvantaged, or 
(2) who is, or whose family is receiving aid to families with dependent 
children provided under a State plan approved under part A of title 
IV of the Social Security Act, or who is receiving supplemental secu- 42 USC 601. 
rity income benefits under title XVI of the Social Security Act. 
42 USC 138]. 
"(b) The provisions of section 122(h) shall apply to duration of Ante, p. 1938. 
participation under this part. 
92 STAT. 1960 
PUBLIC LAW 95-524—OCT. 27, 1978 
a 
29 use 859. 
Ante, pp. 1938, 
1943. 
WAGES 
"SEC. 237. (a) Wages to individuals employed in public service 
employment under this part shall be paid in accordance with sections 
122 (i) and 124. 
"(b) Public service employment participants under this part may 
not have their wages supplemented by the payment of any additional 
wages for such employment from any source whatever, excei)t as 
provided in section 122(i) (4) (B). 
" T I T L E I I I — S P E C I A L F E D E R A L 
R E S P O N S I B I L I T I E S 
29 use 871. 
Financial 
assistance for 
displaced 
homemakers. 
"PART A—SrECiAL NATIONAI. PROGRAMS AND ACTIVITIES 
"SPECIAL PROGRAMS AND ACTIVITIES 
"SEC. 301. (a) The Secretary shall use funds available under this 
title to provide services authorized under all titles of this Act and for 
employment and training programs that— 
"(1) meet the employment-related needs of persons who face 
particular disadvantages in specific and general labor markets 
or occupations, including offenders, persons of limited English 
language proficiency, handicapped individuals, women, single 
parents, displaced homemakers, youth, older workers, individuals 
who lack educational credentials, public assistance recipients, and 
other peisons whom the Secretary determines require special 
assistance; 
"(2) are most appropriately administered from the national 
level, such as programs sponsored by public agencies or private 
organizations that conduct federally assisted activities in more 
than one State; 
"(3) foster new or improved linkages between Federal, State, 
and local employment and training agencies and components of 
the private sector, such as the business community, organized 
labor, and community based organizations; 
" (4) provide continued support for programs of demonstrated 
effectiveness; 
"(5) eliminate or reduce critical skill shortages in the Nation's 
labor force; and 
"(6) serve individuals who become unemployed as a result of 
large-scale loss of jobs in a locality, caused by the closing of a 
facility, mass layoffs, natural disasters, or similar circumstances; 
"(b) (1) (A) The Secretary shall make available financial assistance 
to conduct programs to provide employment opportunities and appro-
priate training and supportive 
services 
(through 
multipurpose 
projects or otherwise) to displaced homemakers. Such training and 
supportive services shall include, but not be limited to, job training, 
job readiness services, job counseling, job search, and job placement 
services; outreach and information services, including information on 
available education opportunities; and referrals (through cooperative 
arrangements, to the maximum extent feasible) to health, 
financial 
management, legal, public assistance, and other appropriate supportive 
services in the community being served. To the maximum extent 
feasible, activities supported under this paragraph shall be coordi-
nated with and supplement, but not supplant, activities supported 
under other titles of this Act and shall emphasize training and other 
employment related services for participants that are designed to 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1961 
Financial 
assistance for 
offenders. 
enhance their employability and earnings. Programs shall concentrate 
on creating new jobs in the private sector for displaced homemakers in 
order to meet identified needs within the community. To the maximmn 
extent feasible, supervisory, technical, and administrative positions 
Avithin the programs shall be filled by displaced homemakers. Priority 
for participation in projects supported under this paragraph shall be 
given to displaced homemakers who, as provided in regulations which 
the Secretary shall prescribe, are most in need of services by virtue of 
age, education, training, household support obligations, and employ-
ability. 
"(B) No funds available under this section shall be used for the 
purchase, construction, or major rehabilitation of facilities. 
"(C) For the piirposes of carrying out this subsection, the Secretary 
shall reserve not more than 2 percent of the funds made available to 
carry out this title. 
"(2) The Secretary shall make financial assistance available to 
conduct a program for offenders to provide employment, training and 
related assistance and supportive services (including basic education, 
drug addiction or dependency rehabilitation and health care) which 
will enable them to secure and retain meaningful employment. The 
Secretary shall support activities designed to enable offenders to secure 
meaningful training and employment including but not limited to 
those services which provide highly structured and supervised employ-
ment opportunities, such as employment and training opportunities 
proven effective under section 311(c). Emphasis shall be placed upon 
serving offenders in contact with the criminal justice system or recently 
released from criminal justice custody or supervision. Services shall 
be comprehensive, and recipient of funds shall coordinate their activi-
ties with other providers of employment and training assistance. 
Grants may also be provided to the States or prime sponsors for the 
establishment of units for planning and evaluation of correctional 
employment and training assistance to offenders. The Secretary may 
provide for appropriate arrangements with employers and labor orga-
nizations, and appropriate parole, probationary, and judicial author-
ities, for the utilization of training equipment comparable to that 
currently used for the job for which training is furnished. To support Studies, 
such programs the Secretary shall develop information concerning 
the special needs of offenders for such services, including special 
studies regarding the incidence of unemployment among offenders 
and the means of increasing employment opportunity for offenders. As Survey, 
part of the reporting requirements under section 127(a), the Secre-
tary shall also conduct an annual survey of prime sponsors and States 
receiving, assistance under this Act for the purpose of assessing the 
scope and implementation of offender programs. 
"(3) With respect to programs for persons of limited English-
speaking ability under this Act, the Secretary shall establish appro-
priate procedures to ensure that participants are provided with 
employment and training and related assistance and supportive serv-
ices (where feasible, at times designed to meet the needs of individuals 
unable to attend during normal working hours) designed to increase 
the employment and training opportunities for unemployed and 
underemployed persons of limited English-speaking ability, including 
(A) the teaching of occupational skills in the primary language of 
such persons for occupations which do not require a high proficiency 
in English, and (B) developing new employment opportunities for 
limited English-speaking persons and opportunities for promotion 
within existing employment situations for such persons, including 
Grants. 
92 STAT. 1962 
PUBLIC LAW 95-524—OCT. 27, 1978 
Report to 
Congress. 
Allocation of 
funds. 
42 use 3246. 
Ante, p. 1909. 
programs for the dissemination of appropriate information, and job 
placement, and counseling assistance, and the conduct of training and 
employment programs, in the primary language of such persons, as 
well as programs designed to increase the English-speaking ability of 
such persons. 
"(4) The Secretary shall make financial assistance available to con-
duct programs for handicapped individuals, youth, single parents, and 
older workers to provide employment, training and related assistance 
and supportive services which will enable them to secure and retain 
meaningful employment. Such programs shall be designed to assist 
in eliminating artificial and other employment barriers faced by such 
persons. 
"(c) The Secretary shall report to the Congress not later than 
March 1 of each year with detailed information and analysis of the 
programs conducted pursuant to this section. The information required 
by this subsection may be included in the annual report of the Secre-
tary under section 127(a). 
"(d) Funds allocated to recipients for purposes of this section shall 
be used to supplement funds which otherwise would be used for pur-
poses of undertaking the same or similar programs and activities for 
such persons. 
"(e) To the extent appropriate, programs financed under this part 
shall be coordinated with programs conducted by prime sponsors 
under this Act, and the Secretary shall notify such prime sponsors of 
the funding of an employment and training program under this part. 
"(f) Notwithstandmg any other provisions of this Act, eligibility 
requirements for programs for workers age fifty-five and older, which 
were established under title X of the Public Works and Economic 
Development Act of 1965, and which thereafter have been funded 
under section 304 of this Act prior to the enactment of the Comprehen-
sive Employment and Training Act Amendments of 1978, shall be 
those which applied when the programs were established under title X. 
" (g) The Secretary shall establish a special program for the funding 
of local workshops for the training of youths and other individuals 
who wish to pursue careers as self-employed owners and managers of 
small businesses. Such workshops should provide instruction in man-
agement techniques, business communication skills, motivational 
training, special problems in business operation, advice concerning 
Federal and State regulations, preparation of financial statements 
and loan applications, recordkeeping, development of marketing tech-
niques, and information on beneficial resources available within the 
community. 
29 use 872. 
"NATIVE AMERICAN EMPLOYMENT AND TRAINING 
PROGRAMS 
"SEC. 302. (a) The Congress finds that (1) serious unemployment 
and economic disadvantage exist among members of Native American 
Indian, Alaskan Native, and Hawaiian native communities; (2) there 
is a compelling need for the establishment of comprehensive training 
and employment programs for members of those communities; and (3) 
such programs are essential to the reduction of economic disadvantage 
among individual members of those communities and to the advance-
ment of economic and social development in these communities consist-
ent with their goals and lifestyles. 
"(b) The Congress therefore declares that, because of the special 
relationship between the Federal Government and most of those to be 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1963 
served by the provisions of this section, (1) such programs can best be 
administered at the national level; (2) such programs shall be avail-
able to federally recognized Native American Indian tribes, bands, and 
groups and to other groups and individuals of Native American 
descent such as, but not limited to, the Lummis in Washington, the 
Menominees in Wisconsin, the Klamaths in Oregon, the Oklahoma 
Indians, the Passamaquoddys and Penobscots in Maine, and Eskimos 
and Aleuts in Alaska, and Hawaiian natives; and (3) such programs 
shall be administered in such a manner as to maximize the Federal 
commitment to support growth and development as determined by 
representatives of the communities and groups served by this section. 
"(c) (1) (A) In carrying out responsibilities under this section, the 
Secretary shall, wherever possible, utilize Native American Indian 
tribes, bands, or groups on Federal or State reservations (including 
Alaska Native villages or groups as defined in the Alaska Native 
Claims Settlement Act of December 18, 1971) and the Oklahoma 
Indians, having a governing body and such public agencies and private 
nonprofit organizations as the Secretary determines will best serve 
Native Americans, for the provision of employment and training 
services under this section. When the Secretary determines that such 
tribe, band, or group has demonstrated the capability to effectively 
administer a comprehensive employment and training program., the 
Secretary shall require such tribe, band, or group to submit a com-
prehensive plan meeting such requirements as the Secretary prescribes. 
"(B) The Secretary shall arrange for programs to meet the employ-
ment and training needs of Hawaiian natives through such public 
agencies or private nonprofit organizations as the Secretary determines 
will best meet their needs. 
"(2) In carrying out responsibilities under this section, the Secre-
tary shall make arrangements with prime sponsors and organizations 
(meeting requirements prescribed by the Secretary) serving nonreser-
vation Native Americans for programs and projects designed to meet 
the needs of such Indians for employment and training and related 
services. 
"(d) Whenever the Secretary determines not to utilize Native 
American Indian tribes, bands, or groups for the provision of employ-
ment and training services under this section, the Secretary shall, to 
the maximum extent feasible, enter into arrangements for the provi-
sion of such services with public agencies or private nonprofit orga-
nizations which meet with the approval of the tribes, bands, or groups 
to be served. 
" (e) The Secretary is directed to take appropriate action to establish 
administrative procedures and machinery (including personnel having 
particular competence in this field) for the administration of Native 
American employment and training programs authorized under this 
Act. 
" (f) Funds available for this section shall be expended for programs 
and activities consistent with the purposes of this section including 
but not limited to such programs and activities carried out by prime 
sponsors under other provisions of this Act. 
"(g) For the purpose of carrying out this section, the Secretary 
shall reserve from funds available for this title an amount equal to 
not less than 4.5 percent of the amount allocated pursuant to section 
202(a). 
" (h) No provision of this section shall abrogate in any way the trust 
responsibilities of the Federal Government to Native American bands, 
tribes, or groups. 
43 use 1601 
note. 
Submission of 
plan. 
Hawaiian nativ<;s. 
Allocation of 
funds. 
92 STAT. 1964 
PUBLIC LAW 95-524—OCT. 27, 1978 
•*'; 
r 
Grants or 
contracts. 
" M I G R A N T AND SEASONAL FARMWORKER E M P L O Y M E N T AND 
ir 
TRAINING PROGRAMS 
B 
29 use 873. 
"SEC. 303. (a) The Congress finds and declares that— 
"(1) chronic seasonal unemployment and underemployment 
in the agricultural industry, substantially affected by recent 
advances in technology and mechanization, constitute a substan-
tial portion of the Nation's rural employment problem and sub-
stantially affect the entire national economy; and 
"(2) because of the special nature of farmworker employment 
and training problems such programs can best be administered at 
the national level. 
"(b)(1) The Secretary shall meet the employment and training 
needs of migrants and seasonal farmworkers through public agencies 
and private nonprofit organizations, including, but not limited to, 
U. ' 
" 
programs and activities carried out by prime sponsors under other 
provisions of this Act, as the Secretary determines have an under-
standing of the problems of migrant and seasonal farmworkers, a 
familiarity with the area to be served, and a capability to administer 
effectively a comprehensive employment and training program for 
migrant and seasonal farmworkers. 
"(2) Programs supported under this section shall include, but not 
be limited to, employment and training in traditional as well as newly 
developing agricultural occupations and related assistance and sup-
portive services. 
"(c) (1) In awarding a grant or contract for services administered 
under this section, the Secretary shall not assign any preferential 
weighting factor to an application therefor by virtue of the fact 
that the applicant holds at the time of application a prior grant or 
contract to provide services under this section; nor shall the Secretary 
assign any negative weighting factor to an application by virtue of 
the fact that an applicant is an instrumentality of State government. 
"(2) In carrying out programs and activities under this section, the 
Secretary shall continue in operation any program which is in exist-
ence on the effective date of this paragraph and— 
"(A) which is— 
^ 
"(i) operated through the use of the facilities of any 
institution of higher education; and 
"(ii) designed to assist migrant and seasonal farmworkers 
who are beyond the age of compulsory school attendance in 
the State in which the institution is located, through tutor-
ing, counseling, and other similar assistance, in the comple-
tion of courses necessary to receive a high school diploma or 
its equivalent; or 
"(B) which serves migrant and seasonal farmworkers who are 
enrolled in a full-time basis in the first academic year of an under-
graduate program at any institution of higher education, and the 
dependents of migrant and seasonal farmworkers if such depend-
ents are so enrolled by— 
"(i) aiding such individuals in carrying out the transition 
. i>o!jij-'>!'.i 
from secondary school to postsecondary school programs; 
- i " •
• 
".(ii) generating motivation necessary for success in edu-
cation beyond secondary school; and 
"(iii) providing counseling, tutorial, and similar educa-
tional services designed to assist such individuals during their 
first academic year at such institution. 
Postsecondary 
schooling, 
program 
continuation. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1965 
The Secretary shall continue the operation of any such program for 
so long as such program is consistent with the purposes of this section, 
as determined by the Secretary, 
" (3) For the purpose of carrying out this section, the Secretary shall 
reserve from funds available for this title an amount equal to not less 
than 5 percent of the amount allocated pursuant to section 202(a). 
"(e) In administering programs under this section, the Secretary 
shall consult with appropriate State and local officials and may enter agreements 
into agreements with such officials to assist in the operation of such 
programs. In implementing this section the Secretary shall determine 
in consultation with appropriate State and local educational agencies, 
that no substantia] duplication will exist. 
Allocation of 
funds. 
Consultation and 
' J O B SEARCH AND RELOCATION ASSISTANCE 
29 use 874. 
"SEC. 304. (a) The Secretary is authorized to carry out job search 
and relocation assistance through agreements with States, State agen-
cies or prime sponsors. 
"(b) Job search assistance shall be available to economically disad-
vantaged, unemployed, and underemployed persons. 
"(c) (1) Kelocation assistance may be provided in the form of loans Loans or grants, 
or grants, or both, subject to such standards as the Secretary 
establishes. 
"(2) Relocation assistance shall be available only to involuntarily 
unemployed individuals who cannot reasonably be expected to secure 
fulltime employment in the community in which they reside, and have 
bona fide offers of employment (other than temporary or seasonal 
employment). 
29 use 875. 
Consultation. 
"VEn;RAN8 INFORMATION AND OUTREACH 
"SEC. 305, The Secretary, in consultation and cooperation with the 
Administrator of Veterans Affairs and the Secretary of Health, Edu-
cation, and Welfare, shall provide for an outreach and public informa-
tion program utilizing, to the maximum extent, the facilities of the 
Departments of Labor and Health, Education, and Welfare and the 
Veterans' Administration to exercise maximum efforts to develop jobs 
and job training opportunities for disabled and Vietnam-era veterans, 
and inform all such veterans about employment, job-training, on-the-
job training and educational opportunities under this Act, under title 
38, United States Code, and other provisions of law; and inform prime 
sponsors. Federal contractors and subcontractors, Federal agencies, 
educational institutions, labor unions, and employers of their statutory 
responsibilities toward such veterans, and provide them with techni-
cal assistance in meeting those responsibilities. 
" P R O G R A M S F O R T H E HANDICAPPED 
"SEC. 306. (a) (1) The Congress finds and declares that due to the 29 USC 876 
rapid implementation of programs to assist handicapped individuals 
mandated under the Education for the Handicapped Act and section 
504 of the Rehabilitation Act of 1973, there is a need for people to 
provide the special supportive services and removal of architectural 
barriers required by these Acts. 
"(2) The Congress further declares that the individuals to be 
served under this section represent a large percentage of the unem-
ployed, and that these services will provide meaningful improvement 
of the lives of the handicapped individuals served. 
20 USC 1401 
note. 
29 USC 794. 
92 STAT. 1966 
PUBLIC LAW 95-524—OCT. 27, 1978 
Training or 
education. 
29 use 877. 
itam--
Reimbursement. 
Employment and 
training policies. 
29 use 878. 
Research. 
"(b) The Secretary shall establish programs throughout the Nation 
which shall train personnel to work with and assist handicapped indi-
viduals. These programs may be in any areas of training or education 
which provide individuals with skills necessary to tram or provide 
assistance to handicapped persons, including, but not limited to, 
interpreters for the deaf and aides in classrooms to assist in the educa-
tion of the handicapped. 
"(c) The Secretary shall take appropriate action to establish 
administrative procedures and machinery (including personnel hav-
ing particular competence in this field) for the administration of pro-
grams authorized under this section. 
"PARTNERSHIP PROGRAMS 
"SEC. 307. (a) From funds available under this title the Secretary 
is authorized to promote the development of partnership arrange-
ments between prime sponsors and employment security agencies. 
Such partnerships shall constitute a segment of an integrated and 
comprehensive intake, service and placement system and shall be 
designed to achieve an employability plan and comprehensive program 
of job preparation and job search assistance for all participants under 
this Act. Such partnerships may also include other related public and 
private nonprofit agencies and organizations, including community-
based organizations. 
"(b) Such partnerships may result in— 
" (1) the creation of a j oint-planning, administrative, and opera-
tional entity; 
"(2) combining and colocation of staff; and 
n 
"(3) a joint data base and information system. 
"(c) The Secretary is authorized to reimburse prime sponsors for 
costs associated with the implementation of a partnership and to 
provide incentives to ensure that employment security agencies may 
participate on an equitable basis. 
"PROJECTS FOR MIDDLE-AGED AND OLDER WORKERS 
, 
"SEC. 308. (a) The Secretary shall— 
"(1) develop and establish employment and training policies 
and programs for middle-aged and older workers which will 
reflect appropriate consideration of these workers' importance in 
the labor force and lead to a more equitable share of employment 
and training resources for middle-aged and older workers; 
"(2) develop and establish programs to facilitate the transition 
of workers over 55 years of age from one occupation to another 
within the labor force and to facilitate the transition of such 
workers from non-participation to participation in the labor force 
including work experience, vocational education, public service 
employment, on-the-job training, occupational upgrading, and 
job search and placement, and technical assistance to employers 
for establishing flexi-time, job sharing, and other innovative 
arrangements suited to the needs of older workers; 
"(3) conduct research on the relationships between age and 
employment and insure that the findings of such research are 
widely disseminated in order to assist employers in both the 
piiblic and private sectors better understand and utilize the capa-
bilities of middle-aged and older workers; and 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1967 
Ante, p. 1912. 
.e- '-^Ai t^S 
Second career 
objectives. 
"(4) develop and establish programs to develop methods 
designed to assure increased labor force participation by older 
workers who are able and willing to work but who have been 
unable to secure employment or who have been discouraged from 
seeking employment. 
"(b) In carrying out the provisions of subsection (a) the Secre-
tary shall provide for appropriate arrangements to be made with 
prime sponsors, members of the business community (including small 
business), labor organizations, local educational agencies, and com-
munity-based organizations as defined in section 3. Such arrangements 
may include, but need not be limited to— 
"(1) an analysis of the local labor force on the basis of such 
factors as age, educational background, income, race, and sex, 
focusing particularly on comparative rates of labor force partici-
pation and of unemployment and underemployment among the 
various demographic groups studied; 
" (2) an assessment of each participant's skills and work experi-
ence for purposes of formulating realistic second career objectives, 
including formal vocational testing instruments supplemented 
by such functional assessment methods and techniques to detect 
those skills and abilities of a participant as may be related to 
desired second career and occupational upgrading objectives; 
"(3) second career and occupational upgrading counseling by Counseling, 
individuals knowledgeable about the employment and training 
needs of middle-aged and older workers; 
"(4) the establishment of second career objectives which will— 
"(A) provide reasonable assurances to the participant that 
public and private sector demand exists for the skills devel-
oped in the second careers program; and 
"(B) enable the participant to compete successfully in the 
job market; and 
"(5) establishment of formal second careers training agree-
ments, between participants and program sponsors, which— 
"(A) set forth the career objectives of the participants and 
the steps required of each participant and prime sponsor 
to achieve these objectives; 
"(B) will remain in force until its terms are fulfilled, or 
renegotiated or terminated according to such procedures as 
shall be prescribed by the Secretary; and 
"(C) may be renegotiated or terminated, at any time, by 
the participant, or by the program sponsor for good cause. 
"(c) The Secretary is hereby authorized to pay program sponsors 
reasonable training costs to participants in second careers programs 
to the extent necessary to achieve the objectives of such programs in 
accordance with regulations prescribed by the Secretary, but in no 
case shall such payment exceed the permissible maximum under sec-
tion 122(i) (1). Such costs may include reasonable tuition for partici- ^»^«' P- 1938 
pants engaged in technical or other institutional training and payments 
to program sponsors providing on-the-job training, provided that such 
payments are based on the actual number of hours of such training 
given to the second careers program participant. The Secretary is 
authorized to pay for equipment, materials, and such other costs 
necessary for a participant to achieve the objectives of his second 
careers program. 
"(d) Programs assisted under this section may provide for partici-
pation in employment and training programs on a part-time or 
flexible-time basis. 
Payment, 
regulations. 
Part- or flexibl*!-
time programs. 
92 STAT. 1968 
PUBLIC LAW 95-524—OCT. 27, 1978 
Eligibility. 
Allocation of 
funds. 
Ante, p. 1950; 
Post, pp. 2005, 
2010. 
"(e) Participants in programs authorized under this section shall 
be individuals over the age of 55 who are unemployed, underemployed, 
or economically disadvantaged, who have a family income (exclusive 
of any income received under a Federal or State welfare or unemploy-
ment program) which is not in excess of 125 percent of the poverty 
level established by the Director of the Office of Management and 
Budget. 
"(f) For the purposes of carrying out this section, the Secretary 
shall reserve from funds available for this title not more than 5 percent 
of the amount available for this title. 
"(g) No provision of this section shall be construed as intending any 
diminution of the employment and training opportunities available 
to workers over 55 years of age under titles II, VI, and VII of this Act. 
"PART B—RESEARCH, TRAINING, AND EVALUATION 
'-
29 use 879. 
Grants or 
contracts. 
Consultation. 
29 use 201. 
Agreement with 
Secretary of 
HEW. 
"RESEARCH 
"SEC. 311. (a) To assist the Nation in expanding work opportuni-
ties and assuring access to those opportunities for all who desire it, 
the Secretary shall establish a comprehensive program of employment 
and training research utilizing the methods, techniques, and knowl-
edge of the behavioral and social sciences and such other methods, 
techniques, and knowledge as will aid in the solution of the Nation's 
employment and training problems. The programs required by this 
section may include, but need not be limited to, studies, the findings of 
which may contribute to the formulation of employment and training 
policy; development or improvement of employment and training 
programs; increased knowledge about labor market processes, includ-
ing programs designed to eliminate artificial barriers to employment; 
reduction of unemployment and its relationships to price stability; 
promotion of more effective worker development, training, and utiliza-
tion ; improved national, regional and local means of measuring future 
labor demand and supply; enhancement of job opportunities; skill 
training to qualify employees for positions of greater skill, respon-
sibility, and remuneration; meeting of worker shortages; easing of 
the transition from school to work, from income transfer payment 
dependency to employment, from one job to another, and from work to 
retirement; testing the usefulness of sheltered employment for the 
difficult to employ; opportunities and services for older persons who 
desire to enter or reenter the labor force; and for improvement of 
opportunities for employment and advancement through the reduc-
tion of discrimination and disadvantage arising from poverty, igno-
rance, or prejudice. 
"(b) The Secretary shall establish a program of experimental, 
developmental, demonstration, and pilot projects, through grants to 
or contracts with public agencies or private organizations, for the 
purpose of improving techniques and demonstrating the effectiveness 
of specialized methods in meeting employment and training problems. 
Nothing in this subsection shall authorize the Secretary to carry out 
employment programs experimenting with subsidized wages in the 
private sector or wages less than wages established by the Fair Labor 
Standards Act of 1938 for employment subject to that Act. In carry-
ing out this subsection, the Secretary shall consult with such other 
agencies as may be appropriate. Where programs under this section 
require institutional training, appropriate arrangements for such 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1969 
training shall be agreed to by the Secretary and the Secretary of 
Health, Education, and Welfare. 
"(c) The Secretary is authorized to conduct supportive employ-
ment and training projects of an experimental and demonstration 
nature as part of, or coordinated with, experimental or demonstration 
programs of a similar nature that the Secretary has been conducting 
for unemployed persons with serious problems in the labor market, 
such as juvenile delinquents, mentally and emotionally handicapped 
individuals, alcoholics, ex-addicts, ex-offenders, and recipients of aid to 
families Avith dependent children, to enable them, through temporary, 
highly structured and supervised work experience, to make the transi-
tion to employment or self-employment. Such programs shall provide 
for skill training as required to effect such transition. 
"(d) The Secretary is authorized to undertake research programs 
to (1) investigate the applicability of job-sharing, work-sharing and 
other flexible work hours arrangements in various settings, and of the 
incentives and technical assistance required by employers to imple-
ment such alternative Avorking arrangements; and (2) investigate the 
extent to which job and wage classification systems undervalue certain 
skills and responsibilities on the basis of the sex of persons who 
usually hold the positions. 
"(ej The Secretary is authorized to conduct a variety of demon-
stration and experimental projects to test the best methods of assisting 
persons, who might otherwise i-ely on public assistance or other income 
assistance, to find nonfederally assisted employment in the private 
and public sectors, and to provide federally assisted work and training 
opportunities for any such persons who are unable to find nonfed-
erally assisted work or training opportunities. Such demonstration 
and experimental projects and programs are to be conducted, to the 
extent practicable, in rural and urban areas, in sparsely and densely 
.., •: 
populated areas, and in areas with inadequate means of transportation. 
"(f) The Secretary is authorized to conduct demonstration pro-
grams and projects, which provide expanded guidance and counseling 
services to participants under this Act through community vocational 
resource centers established in economically distressed communities or 
areas pursuant to section 134(a)(7) of the Vocational Education 
Act of 1963. Such programs shall provide State boards of vocational 20 USC 1284. 
education, which establish such community vocational resource cen- Funding, 
ters, Avith funding for up to 50 per centum of the cost of such projects. 
The Secretary may make such funds available to a State board of 
vocational education Avhen such board reaches agreement Avith the 
prime sponsor to assist out-of-school individuals in reentering school 
at the secondary or postsecondary level, to take advantage of voca-
tional skill training opportunities including cooperative education and 
work-study programs, and to be offered referral to other training 
programs, apprenticeship programs, and on-the-job training for which 
academic credit may be available. Projects shall include provisions 
for outreach to inform the economically disadvantaged of the assist-
ance available through the community resource centers and to provide 
assurances that programs will be coordinated with other guidance 
and counseling activities of the prime sponsor, including activities 
under section 445(c), other in-school guidance and counseling pro- Post, p. 1992. 
grams in the area, State employment service offices, and the activities 
of the private industry councils established pursuant to title VII of Post, p. 2010. 
this Act. 
39-194 O—80—pt. 2 
44 : QU 
92 STAT. 1970 
PUBLIC LAW 95-524—OCT. 27, 1978 
G)nsultation. 
"(g) The Secretary shall conduct educational and assistance pro-
grams designed to eliminate artificial barriers to employment based 
upon race, sex, national origin, age, records of arrest or conviction, 
handicaps, marital status, or other criteria. To support such programs, 
information shall be developed identifying all such artificial barriers, 
the numbers of persons affected, the manner in which such barriers 
operate and how such barriers can best be eliminated. In complying 
with the requirements of this subsection, the Secretary shall consult 
with the Department of Health, Education, and Welfare, the United 
States Civil Rights Commission, and the Equal Employment Oppor-
tunity Commission. 
29 use 880. 
Household 
budget data. 
Funding. 
Notification of 
congressional 
committees. 
Veterans 
employment. 
"LABOR MARKET INFORMATION AND JOB BANK PROGRAM 
"SEC. 312. (a) The Secretary shall develop a comprehensive system 
of labor market information on a national, State, local, or other apj)ro-
priate basis, which shall be made publicly available in a timely fashion. 
"(b) In addition to the monthly national unemployment statistics, 
the Secretary shall develop reliable methods, including the use of 
selected sample surveys, to produce more statistically accurate data on 
unemployment by State and local areas, and shall investigate alterna-
tive methods to produce more accurate data on underemployment and 
labor demand by State and local areas. 
"(c) The Secretary shall develop data for an annual statistical 
measure of labor market related economic hardship in the Nation. 
Among the factors to be considered in developing such a measure are 
unemployment, labor force participation, involuntary part-time 
employment, and full-time employment at wages less than the poverty 
level. 
"(d) The Secretary shall develop methods to establish and maintain 
more comprehensive household budget data at different levels of liv-
ing, including a level of adequacy, to reflect the differences of house-
hold living costs in regions and localities, both urban and rural. 
"(e) The Secretary shall set aside, out of sums available to the 
Department for any fiscal year including sums available for this title, 
an amount which the Secretary determines is necessary and appro-
priate to carry out the provisions of this section, and shall, no later 
than sixty days after such sums are appropriated and made available, 
notify the appropriate committees oi the Congress of the amount so 
set aside 
and the basis for the determination of need and 
appropriateness. 
"(f) The Secretary shall establish and carry out a nationwide com-
puterized job bank and matching program (including the listing of 
all suitable employment openings with local offices of the State employ-
ment service agencies by Federal contractors and subcontractors and 
providing for the affirmative action as required by section 2012(a) of 
title 38, United States Code) on a regional. State, and local basis, using 
electronic data processing and telecommunications systems to the maxi-
mum extent possible for the purpose of identifying sources of 
available persons and job vacancies, providing an expeditious means 
of matching the qualifications of unemployed, underemployed, and 
economically disadvantaged persons with employer requirements and 
job opportunities, and referring and placing such persons in jobs. 
. • M - . 
ij 
u 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1971 
42 use 630. 
"EVALUATION 
"SEC. 313. (a) The Secretary shall provide for the continuing 29 USC 881. 
evaluation of all programs, activities, and research and demonstra-
tion projects conducted pursuant to this Act, including their cost-
effectiveness in achieving the purposes of this Act, their impact on 
communities and participants, their implication for related programs, 
the extent to which they meet the needs of persons by age, sex, race, 
and national origin, and the adequacy of the mechanism for the deliv-
ery of services. In conducting evaluations the Secretary shall compare 
the effectiveness of programs conducted by prime sponsors of the same 
class and of different classes, and shall compare the effectiveness of 
programs conducted by prime sponsors with similar programs carried 
out by the Secretary under the Act. The Secretary shall also arrange 
for obtaining the opinions of participants about the strengths and 
weaknesses of the programs. 
j> 
"(b) The Secretary shall evaluate the effectiveness of programs 
authorized under this Act and part C of title IV of the Social Security 
Act with respect to the statutory goals and objectives, including 
increases in employment and earnings for participants, duration in 
training and employment situations, information on the post-enroll-
ment labor market experience of program participants for at least a 
year following their termination from such programs, and comparable 
information on other employees or trainees of participating employers. 
"(c) In order to reduce the paperwork burden and costs on prime 
sponsors, project applicants and program agents, in carrying out eval-
uations of the cost-effectiveness of identical or similar programs of 
prime sponsors, the impact of such programs on communities and 
agents, the implication for related programs, and the adequacy of the 
mechanism for the delivery of services, the Secretary shall to the maxi-
mum extent possible, consistent with the purposes of this Act, use 
statistical sampling techniques. 
"(d) The Secretary shall prepare and submit to the Congress an 
annual evaluation plan, setting forth major themes for the areas of 
research, statistics, evaluation, experimentation, and demonstrations 
to be undertaken in the succeeding fiscal year, the program purposes 
and policy alternatives to which each such area is related and the cur-
rent and proposed funding and staffing levels. The Secretary shall 
< H. 
> ' 
,-[. 
specify in the portions of the plan relating to experimentation and 
demonstrations the intended outcome of proposed major innovations 
and the amount of time required to test the innovations or to achieve 
adoption of the demonstration. The information required by this sub-
section may be included in the annual report of the Secretary under 
section 127(a). 
Ante, p. 1945. 
"(e) The Secretary shall prepare and submit to the Congress an Evaluation 
annual evaluation report for employment and training programs. Such report, submittal 
report may be included in the annual report of the Secretary under sec- *" Congress, 
tion 127(a). The Secretary shall include in such report— 
"(1) a summary of the achievements, failures, and problems of 
the various programs authorized in this Act in meeting the objec-
• 
tive of this Act ; 
; 
"(2) a summary of major findings from research, evaluation, 
and experiments conducted in the previous fiscal year; 
"(3) recommendations for program modifications based upon* 
-
^ 
analysis of such findings; and 
- 
"(4) such other recommendations for legislative or administra-
tive action as the Secretary deems appropriate. 
Evaluation plan, 
submittal to 
Congress. 
92 STAT. 1972 
PUBLIC LAW 95-524—OCT. 27, 1978 
Report to 
Congress. 
Ante, p. 1945. 
"Detailed 
occupational or 
training code." 
"(f) The Secretary shall develop an ongoing program to notify 
prime sponsors of experiments and demonstrations to be conducted 
in their States and shall disseminate to prime sponsors and Governors 
the results of all research, demonstrations, evaluations, and experi-
ments of employment and training programs. 
" (g) (1) The Secretary shall— 
"(A) develop standard definitions of 'enrollments', 'comple-
tions', 'job placements', and 'training-related job placements' for 
classroom and on-the-job training programs funded under this 
Act; 
"(B) establish procedures for the uniform reporting by prime 
sponsors of information on enrollments, completions, job place-
ments, and training related placements by detailed occupational 
or training code for classroom and on-the-job training programs 
funded under this Act; and 
"(C) make a report to the Congress not later than March 1, 
1980, and annually thereafter, containing a summary of the 
information described in subparagraph (B) together with such 
analysis and recommendations as the Secretary deems advisable. 
"(2) The information required by paragraph (1) (C) may be 
included in the annual report of the Secretary under section 127 (a). 
"(3) For the purposes of this subsection, the term 'detailed occupa-
tional or training code' shall mean any occupational or training code 
equivalent in detail to the Standard Occupational Classification at 
the four-digit level. 
Grants or 
contracts, 
consultation. 
29 use 882. 
Youth. 
29 use 883. 
TRAINING AND TECHNICAL ASSISTANCE 
"SEC. 314. The Secretary, in consultation with the Secretary of 
Health, Education, and Welfare, or other appropriate officials, shall 
provide directly or through grants, contracts, or other arrangements, 
appropriate preservice and inservice training for specialized, sup-
portive, supervisory, or other personnel, and appropriate technical 
assistance with respect to programs under this Act. 
u 
NATIONAL OCCUPATIONAL INFORMATION COORDINATING COMMITTEE 
"SEC. 315. (a) The National Occupational Information Coordinat-
ing Committee, in carrying out its responsibilities under this section, 
shall give special attention to the labor market information needs of 
youth, including activities such as, but not limited to— 
"(1) assisting and encouraging local areas to adopt methods 
of translating national aggregate occupational outlook data into 
local terms; 
"(2) providing technical assistance for programs of computer 
on-line terminals and other facilities to utilize and implement 
occupational and career outlook information and projections sup-
plied by State employment service agencies and to improve the 
, 
match of youth career desires with available and anticipated 
labor demand; 
"(3) assisting and encouraging the development of State occu-
pational information systems, accessible to local schools, includ-
ing pilot programs in the use of computers to facilitate such 
access; and 
"(4) in cooperation with State and local correctional agencies, 
encouraging programs of counseling and employment services 
for youth in correctional institutions. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1973 
"(5) in cooperation with State and local educational agencies, 
and other appropriate persons and organizations, encouraging 
programs to make available employment and career counseling to 
postsecondary youths; and 
"(6) providing technical assistance for programs designed to 
encourage public and private employers to list all available job 
opportunities for youths with the appropriate eligible applicant 
conducting occupational information and career counseling pro-
grams, local public employment services offices and to encourage 
cooperation and contact among such eligible applicants, employ-
ers, and oiRces. 
"(b) All funds available to the National Occupational Informa-
tion Coordinating Committee under this Act, under section 161 of the 
Vocational Education Act of 1963 and under section 12 of the Career 
Education Act may be used by the Committee to carry out any of its 
functions and responsibilities authorized by law. 
Allocation of 
funds. 
20 use 1341. 
20 use 2611. 
;(' 
EVALUATIONS AND INCENTIVE GRANTS 
Regulation. 
29 use 884. 
Ante, p. 1950. 
"SEC. 316. (a) Any prime sponsor may volunteer for an evaluation 
of its title II programs by the Department of Labor. Such evaluation 
may include monitoring of the rate of placement of title II enrollees 
after leaving the title II program, the salaries paid to such enrollees, 
the lengtli of time that they remain in the job, and whatever other 
information that the Secretary determines, by regulation, is impor-
tant in evaluating the performance of the prime sponsors. For pur-
poses of making this evaluation, the performance of the prime sponsor 
shall be assessed by comparing enrollees to a comparable group of 
nonenrollees within the prime sponsor's area. 
"(b) The Secretary shall make aw^ards from the funds appropriated 
under this title to those prime sponsors which have performed well 
in their title II functions. The Secretary shall make awards according Regulation 
to a unit measurement; each such unit may consist of some degree 
of improvement among title II enrollees in job placement, salary, 
longevity, and whatever other factors the Secretary determines, by 
regulation, are important (each factor shall be weighed by the Sec-
retary in a manner which best effectuates the purposes of this Act), 
over performance on each of the criteria set forth in this section 
by a comparable group of nonenrollees in the prime sponsor's area. 
a. 
VOUCHER DEMONSTRATrON PRO 
JECTTS 
Regulations. 
29 use 885. 
"SEC. 317. (a) The Secretary shall establish a special voucher project 
to demonstrate the efficacy of providing vouchers to economically dis-
advantaged persons who are unemployed or underemployed. Such 
vouchers shall entitle private employers who provide employment 
with or without training to such individuals to payment in amounts 
equal to the value of the voucher pursuant to regulations of the 
Secretary. 
"(b) In establishing regulations under this section, the Secretary 
shall establish criteria, eligibility of participants and portability of 
vouchers between qualifying employers, the value of vouchers, the 
guarantees against displacement of eligible workers, and such other 
factors as the Secretary deems appropriate. 
"(c) Not later than March 1, 1981, the Secretary shall prepare and Report to 
submit to the Congress a report evaluating the effectiveness of the Congress, 
demonstration projects conducted pursuant to this section, together 
with such recommendations, including recommendations for legisla-
92 STAT. 1974 
PUBLIC LAW 95-524—OCT. 27, 1978 
tion, as the Secretary deems appropriate. The information required by 
this subsection may be included in the appropriate annual report of 
Ante, p. 1945. 
the Secretary under section 127 (a). 
"EMPLGYMENOI AND TRAINING ACTIVITIES TO STIMULATE LOCAL PRIVATE 
ECONOMIC DEVELOPMENT 
Experimental 
"SEC. 318. (a) The Secretary is authorized to carry out a special 
program. 
experimental program to link the employment and training activities 
29 use 886. 
of prime sponsors to a workable strategy for stimulating local private 
economic development and replacement of declining industries. Any 
determination concerning the nature of skills to be provided in train-
^" 
ing and retraining programs shall be made after consultation with 
agencies charged with fostering the growth or introduction of indus-
' 
tries in a given labor market. This experiment may include use of 
vouchers as authorized in section 317. 
"(b) The Secretary shall take whatever action is necessary to 
assure that any experimental program conducted under this section 
is coordinated with Federal, State, regional, and local agencies respon-
sible for administering and receiving funds from the Economic 
Development Administration pursuant to sections 201 and 202 of 
42 use 3141, 
the Public Works and Economic Development Act of 1965 and from 
^^^^' 
the Small Business Investment Act of 1958. Activities under any such 
15 use 661 note, program shall be consistent with the overall economic development 
plan for the area required by section 202(b) (10) of the Public Works 
and Economic Development Act of 1965. 
"TITLE IV—YOUTH PROGRAMS 
a. 
STATEMENT OF PURPOSE 
29 use 891. 
"SEC. 401. It is the purpose of this title to provide a broad range 
of coordinated employment and training programs for eligible youth 
in order to provide effectively for comprehensive employment and 
training services to improve their future employability and to explore 
and experiment with alternative methods for accomplishing such 
purposes. 
"DEFINITIONS 
29 use 892. 
"SEC. 402. (a) For purposes of parts B and C, the term 'eligible 
Post, p. 2001. 
youth' means an economically disadvantaged youth who is (1) either 
unemployed, underemployed, or in school, and (2) either age 16 to 
21 inclusive, or if authorized under regulations of the Secretary, age 
14 to 15 inclusive. Nothing in this section shall be construed to prohibit 
the provision of day care for the children of eligible youths. 
"(b) For the purposes of subpart 1 of part A, the term 'eligible 
youth' means a youth between the ages of 16 and 19 inclusive, the 
income of whose family is at or below the poverty level determined 
in accordance with criteria as established by the Director of the Office 
of Management and Budget. 
"PART A—YOUTH EMPLOYMENT DEMONSTRATION PROGRAMS 
"STATEMENT OF PURPOSE 
29 use 893. 
"SEC. 411. It is the purpose of this part to establish a variety of 
.,,. -y.v , employment, training, and demonstration programs to explore methods 
of dealing with the structural unemployment problems of the Nation's 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1975 
youth. The basic purpose of the demonstration programs shall be to 
test the relative efficacy of different ways of dealing with these prob-
lems in different local contexts, but this basic purpose shall not pre-
clude the funding of programs dealing with the immediate difficulties 
faced by youths who are in need of, and unable to find jobs. It is 
explicitly not the purpose of this part to provide make-work oppor-
tunities for unemployed youth; instead, it is the purpose to provide 
youth, and particularly economically disadvantaged youth, with 
opportunities to learn and earn that will lead to meaningful employ-
ment or self-employment opportunities after they have completed the 
program. 
"Subpart 1—Youth Incentive Entitlement Pilot Projects 
"ENTITLEMENT PILOT PROJECTS AUTHORIZED 
"SEC. 416. (a) The Secretary shall enter into arrangements with 
prime sponsors selected in accordance with the provisions of this sub-
part for the purpose of demonstrating the efficacy of guaranteeing 
otherwise unavailable part-time employment, or combination of part-
time employment and training, for economically disadvantaged youth 
between the ages of 16 and 19, inclusive, during the school year who 
resume or maintain attendance in secondary school for the purpose of 
acquiring a high school diploma or in a program which leads to a certif-
icate of high school equivalency and full-time employment or part-
time employment and training during the summer months to each 
such youth. 
"(b) Each prime sponsor who applies for and is selected by the 
Secretary to carry out a pilot project under this subpart shall guar-
antee the employment described in subsection (a) to each such unem-
ployed youth described in subsection (a) who resides within the area 
or a designated part thereof served by the prime sponsor and who 
applies to that prime sponsor for employment. The Secretary shall 
provide to each prime sponsor, from funds appropriated for carrying 
out this subpart, in combination with any funds made available by 
such prime sponsor according to an agreement made pursuant to 
section 418(a)(4)(F), the amount to which that prime sponsor Is 
entitled under subsection (c). 
"(c) Each prime sponsor shall be entitled to receive, for each youth 
who is provided employment by that prime sponsor, the costs associated 
with providing such employment. Such costs shall take into account 
funds made available by such prime sponsor under section 418(a) 
(4)(F). 
"EMPLOYMENT GUARANTEES 
"SEC. 417. Employment opportunities guaranteed under this sub-
part shall take the form of any one of the following or any combina-
tion thereof: 
"(1) Part-time employment or training or combination thereof 
during the school year, not to exceed an average of 20 hours per 
week for each youth employed, and not to last less than 6 months 
nor more than 9, on projects operated by community-based orga-
nizations of demonstrated effectiveness which have a knowledge 
of the needs of disadvantaged youth; local educational agencies; 
institutions of higher education; nonprofit private organizations 
or institutions engaged in public service; nonprofit voluntary 
youth organizations; nonprofit private associations, such as labor 
Prime sponsors. 
29 use 894. 
Funds received 
for youth 
employment. 
29 use 895. 
Part-time 
employment. 
92 STAT. 1976 
PUBLIC LAW 95-524^0CT. 27, 1978 
organizations, educational associations, business, cultural, or other 
private associations; units of general local government; or special 
purpose political subdivisions either having the power to levy 
taxes and spend funds or serving such special purpose in 2 or 
more units of general local government. 
"(2) Part-time employment on an individual basis in any of 
the institutions and under the same conditions provided for in 
clause (1). 
"(3) Part-time employment on either a project or individual 
basis in any of the institutions and under the same conditions as 
provided in clause (1) which includes as part of the employment 
on-the-job or apprenticeship training. 
Full-time 
"(4) Full-time employment during the summer months, not to 
employment. 
exceed 40 hours per week for each youth employed, and not to 
last less than 8 weeks in any of the institutions described in 
clause (1). 
"SELECTING PRIME SPONSORS 
29 use 896. 
"SEC. 418. (a) In selecting prime sponsors to operate youth incen-
tive entitlement projects, the Secretary shall— 
"(1) select prime sponsors from areas with differing socio-
economic and regional circumstances such as differing unem-
ployment rates, school dropout rates, urban and rural variations, 
size, and other such factors designed to test the efficacy of a youth 
job entitlement in a variety of 
differing 
locations 
and 
circumstances; 
"(2) take into consideration the extent to which the prime 
Ante, p. 1950. 
sponsors devote funds made available under title II and part 
Post, p. 2001. 
Q Q^ Q^^Q ^j^lg -fQj. ^YiQ purpose of carrying out a youth incentive 
entitlement proj ect or for supportive services; 
"(3) take into consideration the extent to which new and 
different classifications, occupations, or restructured jobs are 
created for youth; 
"(4) select only prime sponsors which submit proposals which 
include— 
"(A) a description of the procedure to be utilized by the 
prime sponsor to publicize, consider, approve, audit, and 
monitor youth incentive projects or jobs funded by the prime 
^~" 
sponsor under this part, including copies of proposed appli-
cation materials, as well as examples of audit and client 
characteristics reports; 
"(B) a statement of the estimated number of economically 
disadvantaged youth to be served by the prime sponsor, and 
assurances that only such disadvantaged youth will be 
J 
J 
served; 
"(C) assurances that the provisions of sections 442 and 
443 are met relating to wage provisions and special 
conditions; 
J 
"(D) assurances that the prime sponsor has consulted with 
public and private nonprofit educational agencies including 
vocational and postsecondary education institutions and 
other agencies which offer high school equivalency programs; 
public employers, including law enforcement and judicial 
agencies; State and local public assistance agencies; labor 
organizations; voluntary youth groups; community-based 
^ 
organizations; organizations of demonstrated effectiveness 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1977 
with a special knowledge of the needs of such disadvantaged 
youth; and with the private sector in the development of the 
plan, and assurances that arrangements are made with appro-
priate groups to assist the prime sponsor in carrying out the 
purposes of this subpart; 
"(E) assurances that arrangements are made with the 
State employment security agencies to carry out the purposes 
of this subpart; 
"(F) an agreement that funds available under title II for ^nte, p. 1950. 
•i 
economically disadvantaged youth employment programs and 
funds available for the summer youth program under part C Post, p. 2001. 
of this title for youth eligible under subsection (a) will be 
used in support of the project authorized under this subpart; 
"(G) assurances that the employment of eligible youth 
meets the requirements of eligible activities under section 419; 
"(H) assurances that participating youth shall not be 
''" 
employed more than an average of 20 hours per week during 
the school year and not more than 40 hours per week during 
the summer; 
"(I) assurances that a participating youth is not a relative 
of any person with responsibility for hiring a person to fill 
that job; 
"(J) assurances that whenever employment involves addi-
tional on-the-job, institutional, or apprenticeship training 
provided by the employer, and if such training is not paid 
for in full or in part by the prime sponsor under any other 
program authorized under this Act, wages may be paid in 
accordance with the provisions of subsection (b) of section 
14 of the Fair Labor Standards Act of 1938, and with the 29 USC 214. 
balance being applied to the cost of training ; 
"(K) assurances that arrangements have been made with 
the appropriate local education agency or with the institution 
offering a certified high school equivalency program that such 
youth is enrolled and meeting the minimum academic and 
attendance requirements of that school or education pro-
gram and with employers that such youth meet the minimum 
work and attendance requirements of such employment and 
that any employment guarantee is conditioned on such 
enrollment; 
"(L) assurances that special efforts will be made to recruit 
youth from families receiving public assistance, including 
parents of dependent children who meet the age requirement 
of this subpart; and 
" (M) assurances that the prime sponsor will make available 
the data necessary for the Secretary to prepare the reports 
required by section 420, 
"(b) In approving a prime sponsor to operate a youth incentive 
entitlement pilot project under this subpart the Secretary may also test 
the efficacy of any such project involving— 
"(i) the use of a variety of subsidies to private for-profit 
employers, notwithstanding the provisions of sections 417 and 
419(a), to encourage such employers to provide employment and 
trammg opportunities under this subpart, but no such subsidy 
shall exceed the net cost to the employer of the wages paid and 
trainmg provided; 
92 STAT. 1978 
PUBLIC LAW 95-524—OCT. 27, 1978 
Employment and 
training. 
29 use 897. 
Report to 
Congress. 
29 use 898. 
"(2) arrangements with unions to enable youth to enter into 
apprenticeship training as part of the employment provided under 
this subpart; 
"(3) a variety of administrative mechanisms to facilitate the 
employment of youths under an entitlement arrangement; 
"(4) the inclusion of economically disadvantaged youths 
between the ages of 19 and 25 who have not received their high 
school diploma; 
"(5) the inclusion of occupational and career counseling, out-
reach, career, exploration, and on-the-job training and apprentice-
ship as part of the employment entitlement; and 
" (6) the inclusion of youth under the jurisdiction of the juvenile 
or criminal justice system with the approval of the appropriate 
authorities. 
"SPECIAL PROVISIONS 
"SEC. 419. (a) Employment and training under this subpart shall 
develop the participant's role as a meaningful member of the com-
munity, and may include employment and training in such fields as 
environmental quality, health care, education, self-employment, social 
services, public safety, crime prevention and control, transportation, 
recreation, neighborhood improvement, rural development, conserva-
tion, beautification, and community improvement projects. 
"(b) No funds for employment under this subpart shall be used to 
provide public services through a nonprofit organization, association, 
or institution, or a nonprofit private institution of higher education or 
any other applicant, which were previously provided by a political 
subdivision or local educational agency in the area served by the proj-
ect of where the employment and training takes place, and no funds 
will be used under this subpart to provide such services through such 
an organization or institution which are customarily provided only 
by a political subdivision or local educational agency in the area 
served by such project or where the employment and training takes 
place. 
"REPORTS 
"SEC. 420. The Secretary shall report to the Congress not later than 
March 15,1979, on his interim findings on the efficacy of a youth incen-
tive entitlement. The Secretary shall submit another report not later 
than December 31, 1979, concerning the youth incentive entitlement 
projects authorized under this subpart. Included in such reports shall 
be findings with respect to— 
"(1) the number of youths enrolled at the time of the report; 
"(2) the cost of providing employment opportunities to such 
youths; 
'^' 
"(3) the degree to which such employment opportunities have 
caused out-of-school youths to return to school or others to 
remain in school; 
" (4) the number of youths provided employment in relation to 
,^ 
the total which might have been eligible; 
' • 
"(5) the kinds of jobs provided such youths and a description 
of the employers—public and private—providing such employ-
ment ; 
"(6) the degree to which on-the-job or apprenticeship training 
has been offered as part of the employment; 
"(7) the estimated cost of such a program if it were to be 
extended to all areas; 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1979 
"(8) the effect such employment opportunities have had on 
reducmg youth unemployment in the areas of the prime sponsors 
operating a project; and 
" (9) the impact of job opportunities provided under the project 
"^'' ' • 
on other job opportunities for youths in the area. 
"Subpart 2—Youth Community Conservation and Improvement 
Projects 
II, 
STATEMENT OF PURPOSE 
"SEC. 421. It is the purpose of this subpart to establish a program 29 USC 899. 
of community conservation and improvement projects to provide 
employment, work experience, skill training, and opportunities for 
community service to eligible youths, for a period not to exceed 12 
- • -
months, supplementary to but not replacing opportunities available 
under title II. 
<
(
. 
DEFINITIONS 
ii "SEC. 422. As used in this subpart, the term— 
29 USC 900. 
"(1) 'eligible applicant' means any prime sponsor qualified 
'' 
under section 101 of this Act, sponsors of Native American pro-
grams qualified under section 302(c) (1) of this Act, and sponsors •^"'^' P- 1^^2. 
of migrant and seasonal farmworkers programs qualified under 
- 
section 303 of this Act; 
Ante, p. 1964. 
"(2) 'project applicant' shall have the same meaning as in 
• 
section 3 (20) of this Act; 
^"^' P' l^^^. 
"(3) 'eligible youths' means individuals who are unemployed 
and, at the time of entering employment under this subpart, are 
ages sixteen to nineteen, inclusive; and 
" (4) 'community improvement projects' means projects provid-
ing work which would not otherwise be carried out, including, 
J - 
but not limited to, the rehabilitation or improvement of public 
facilities; neighborhood improvements; weatherization and basic 
repairs to low-income housing; energy conservation including 
^ 
solar energy techniques, especially those utilizing materials, and 
supplies available without cost; removal of architectural barriers 
to access, by handicapped persons, to public facilities; and con-
servation, maintenance, or restoration of natural resources on 
; 
publicly held lands other than Federal lands. 
, „. , . • ^ 
"ALLOCATION OF FUNDS 
"SEC. 423. (a) Funds available to carry out this subpart for any fiscal 29 USC 901. 
year shall be allocated in such a manner that not less than 75 percent of 
such funds shall be allocated among the States on the basis of the 
relative number of unemployed persons within each State as com-
pared to all States, except that not less than one-half of 1 percent of 
such funds shall be allocated for projects under this subpart within 
any one State and not less than one-half of 1 percent of such funds 
shall be allocated in the aggregate for projects in Guam, the Virgin 
Islands, American Samoa, the Northern Mariana Islands, and the 
^^' 
• -' 
Trust Territory of the Pacific Islands. 
"(b) Of the funds available for this subpart, 2 percent shall be 
available for projects for Native American eligible youths, and 2 per-
cent shall be available for projects for eligible youths in migrant and 
seasonal farmworker families. 
"(c) The remainder of the funds available for this subpart shall be 
allocated as the Secretary deems appropriate. 
92 STAT. 1980 
PUBLIC LAW 95-524—OCT. 27, 1978 
"COMMUNITY CONSERVATION AND IMPROVEMENT YOUTH EMPLOYMENT 
PROJECTS 
29 use 902. 
"SEC. 424. The Secretary is authorized in accordance with the 
provisions of this subpart, to enter into agreements with eligible 
applicants to pay the costs of community conservation and improve-
ment youth employment projects to be carried out by project applicants 
employing eligible youths and appropriate supervisory personnel. 
"PROJECT APPLICATIONS 
29 use 903. 
"SEC. 425. (a) Project applicants shall submit applications for 
funding of projects under this subpart to the appropriate eligible 
applicant. 
Regulations. 
"(b) In accordance with regulations prescribed by the Secretary, 
each project application shall— 
"(1) provide a description of the work to be accomplished by 
the project, the jobs to be filled, and the approximate duration for 
which eligible youths would be assigned to such jobs; 
'' 
> ' ' .; 
"(2) describe the wages or salaries to be paid individuals 
employed in jobs assisted under this subpart; 
"(3) set forth assurances that there will be an adequate number 
• 
• 
of supervisory personnel on the project and that the supervisory 
personnel are adequately trained in skills needed to carry out the 
project and can instruct participating eligible youths in skills 
< 
*
;
. 
needed to carry out the project; 
• 
' 
"(4) set forth assurances that any income generated by the 
project will be applied toward the cost of the project; 
"(5) set forth assurances for acquiring such space, supplies, 
materials, and equipment as necessary, including reasonable pay-
ment for the purchase or rental thereof; 
"(6) set forth assurances that, to the maximum extent feasible, 
projects carried out under this subpart shall be labor intensive; 
and 
"(7) set forth such other assurances, arrangements, and condi-
tions as the Secretary deems appropriate to carry out the pur-
poses of this subpart. 
u 
PROPOSED AGREEMENTS 
29 use 904. 
"SEC. 426. (a) (1) Each eligible applicant desiring funds under this 
subpart shall submit a proposed agreement to the Secretary, together 
with all project applications approved by the eligible applicant and all 
project applications approved by any program agent within the area 
served by the eligible applicant. With its transmittal of the proposed 
agreement, the eligible applicant shall provide descriptions of the 
project applications approved by the eligible applicant and by any 
program agent within the area served by the eligible applicant, accom-
panied by the recommendations of the eligible applicant concerning 
the relative piiority attached to each project. 
"(2) The functions of a program agent shall be as set forth in sec-
Post, p. 2008. 
tion 606(b) (2) of this Act. 
"(b) The proposed agreement submitted by any eligible applicant 
shall— 
"(1) describe the method of recruiting eligible youths, includ-
ing a description of how such recruitment will be coordinated 
with plans under other provisions of this Act, including arrange-
Ante, p. 1925. 
ments required by section 105, of this Act, and also including a 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1981 
description of arrangements with school systems, the public 
employment service (including school cooperative programs), the 
courts of jurisdiction for status and youthful offenders, and a 
description of arrangements with public assistance agencies on the 
employment of youth from families receiving public assistance, 
-" , i 
including parents of dependent children; 
"(2) provide a description of job training and skill develop-
ment opportunities that will be made available to participating 
.:?':?-; .q ,« K 
eligible youths, as well as a description of plans to coordinate the 
training and work experience with school-related programs, 
including the awarding of academic credit; and 
"(3) set forth such other assurances as the Secretary may 
require to carry out the purposes of this subpart. 
"(c) (1) In order for a project application submitted by a project 
applicant to be submitted to the Secretary by any eligible applicant, 
copies of such application shall have been submitted at the time of 
such application to the prime sponsor's planning council established 
under section 109 (or an appropriate planning organization in the case ^"^e, p. 1930. 
of sponsors of Native American programs under section 302 of this 
Act or migrant and seasonal farmworker programs under section 303 
of this Act) for the purpose of affording such council (and the youth 
.--.>] 
council established under section 436) an opportunity to submit com-
ments and recommendations with respect to that application to the 
eligible applicant. No member of any council (or organization) shall 
cast a vote on any matter in connection with a project in which that 
member, or any organization with which that member is associated, 
has a direct interest. 
" (2) Consistent with procedures established by the eligible applicant Regulations, 
in accordance with regulations which the Secretary shall prescribe, the 
eligible applicant shall not disapprove a project application submitted 
by a project applicant unless it has first considered any comments and 
recommendations made by the appropriate council (or organization) 
and unless it has provided such applicant and council (or organiza-
tion) with a written statement of its reasons for such disapproval. 
u 
APPROVAL o r 
AGREEMENTS 
» "SEC. 427. (a) The Secretary may approve or deny on an individual 29 USC 905. 
basis any of the project applications submitted with any opposed 
agreement. 
"(b) No funds shall be made available to any eligible applicant 
except pursuant to an agreement entered into between the Secretary 
and the eligible applicant which provides assurances satisfactory to 
the Secretary that— 
"(1) the standards set forth in subpart 4 will be satisfied; 
"(2) projects will be conducted in such manner as to permit 
eligible youths employed in the project who are in school to coordi-
nate their jobs with classroom instruction and, to the extent 
feasible, to permit such eligible youths to receive credit from the 
appropriate educational agency, postsecondary institution, or 
particular school involved; and 
"(3) meet such other assurances, arrangements, and conditions 
as the Secretary deems appropriate to carry out the purposes of 
this subpart. 
"WORK LIMITATION 
"SEC. 428. No eligible youth shall be employed for more than twelve 29 USC 906. 
months in work financed under this subpart, except as prescribed by 
the Secretary. 
92 STAT. 1982 
PUBLIC LAW 95-524—OCT. 27, 1978 
"Subpart 3—Youth Employment and Training Programs 
.em I. 
'STATEMENT OF PURPOSE 
29 use 907. 
"SEC. 431. It is the purpose of this subpart to establish programs 
designed to make a significant long-term impact on the structural 
unemployment problems of youth, supplementary to but not replacing 
Ante, p. 1950. 
programs and activities available under title II of this Act, to enhance 
the job prospects and career opportunities of young persons, including 
employment, community service opportunities, and such training and 
supportive services as are necessary to enable participants to secure 
suitable and appropriate unsubsidized employment in the public and 
private sectors of the economy. To the maximum extent feasible, train-
ing and employment opportunities afforded under this subpart shall 
be interrelated and mutually reinforcing so as to achieve the goal of 
enhancing the job prospects and career opportunities of youths served 
under this subpart. 
u 
PROGRAMS AUTHORIZED 
Financial 
"SEC. 432. (a) The Secretary is authorized to provide financial assist-
assistance. 
ance to enable eligible applicants to provide employment opportunities 
29 use 908. 
and appropriate training and supportive services for eligible partici-
pants, including— 
"(1) useful work experience opportunities in a wide range of 
community betterment activities such as rehabilitation of public 
f
)roperties, assistance in the weatherization of homes occupied by 
ow-income families, demonstrations of energy-conserving meas-
ures, including solar energy techniques (especially those utilizing 
materials and supplies available without cost), park establishment 
and upgrading, neighborhood revitalization, conservation and 
improvements, removal of architectural barriers to access, by hand-
icapped individuals, to public facilities, and related activities; 
"(2) productive employment and work experience in fields such 
as education, health care, neighborhood transportation services, 
crime prevention and control, environmental quality control 
(including integrated pest management activities), preservation 
' 
i i 
of historic sites, and maintenance of visitor facilities; 
"(3) approprate training and services to support the purpose 
of this subpart, including— 
" (A) outreach, assessment, and orientation; 
"(B) counseling, including occupational information and 
career counseling; 
"(C) activities promoting education to work transition; 
"(D) development of information concerning the labor 
market, and provision of occupational, educational, and train-
ing information; 
(E) services to youth to help them obtain and retain 
employment; 
.« 
"(F) literacy training and bilingual training; 
" m ) attainment of certificates of high school equivalencv; 
" (H) job sampling, including vocational exploration in the 
public and private sector; 
" (I) institutional and on-the-job training, including devel-
opment of basic skills and job skills; 
"(J) transportation assistance; 
"' ii" 5 
"(K) child care and other necessary supportive services; 
PUBLIC LAW 95-524^0CT. 27, 1978 
92 STAT. 1983 
' 
" (L) job restructuring to make jobs more responsive to the 
objectives of this subpart, including assistance to employers 
in developing job ladders or new job opportunities for youths, 
«.. 
in order to improve work relationships between employers and 
youths; 
"(M) community-based central intake and information 
services for youth; 
"(N) job development, direct placement, and placement 
> 
assistance to secure unsubsidized employment opportunities 
- 
for youth to the maximum extent feasible, and referral to 
' 
employability development programs; 
"(O) programs to overcome sex-stereotyping in job devel-
• J : 
opment and placement; and 
^ 
"(P) programs and outreach mechanisms to increase the 
labor force participation rate among minorities and women. 
"(b) In order to carry out this subpart, a Governor or a prime Consultation, 
sponsor may enter into contracts with project applicants (as defined in 
section 3(20)) or employers organized for profit, but payments to -^nte, p. 1912. 
such employers shall not exceed the amounts permitted under section 
121(1), or may operate programs directly if, after consultation with Ante, p. 1934. 
community-based organizations and nonprofit groups, a Governor or 
prime sponsor determines that such direct operation will promote the 
purposes of this subpart. 
(( 
ALLOCATION OF FUNDS 
"SEC. 433. (a) From the sums available for this subpart— 
29 USC 909. 
"(1) an amount equal to 75 percent of such funds shall be 
made available to prime sponsors for programs authorized under 
section 432; 
"(2) an amount equal to 5 percent of the amount available for 
this part shall be made available to Governors for special state-
wide youth services under subsection (c); 
"(3) an amount equal to not less than 2 percent of the amount 
available for this part shall be made available for employment and 
training programs for Native American eligible youths (deduct-
ing such amounts as are made available for such purposes under 
section 423(b)); 
"(4) an amount equal to not less than 2 percent of the amount 
available for this part shall be made available for employment 
and training programs for eligible youths in migrant and seasonal 
farmworker families (deducting such amounts as are made avail-
ii > able for such purposes under section 423 (b)); and 
iK; 
" (5) the remainder of the funds available for this subpart shall 
be available for the Secretary's discretionary projects authorized 
under section 438. 
"(b)(1) Amounts available for each of the purposes set forth in 
paragraphs (1) and (2) of subsection (a) shall be allocated among the 
States in such a manner that— 
"(A) 37.5 percent thereof shall be allocated in accordance with 
the relative number of unemployed persons within each State as 
compared to the total number of such unemployed persons in all 
States; 
"(B) 37.5 percent thereof shall be allocated in accordance with 
the relative number of unemployed persons residing in areas of 
substantial unemployment (as defined in section 3(2)) within each -^«'«. P- 1912. 
State as compared to the total number of unemployed persons 
residing in all such areas in all States; and 
92 STAT. 1984 
PUBLIC LAW 95-524—OCT. 27, 1978 
" (C) 25 percent thereof shall be allocated in accordance with the 
relative number of persons in families with an annual income 
Ante, p. 1912. 
below the low-income level (as defined in section 3(16)) within 
; * each State as compared to the total number of such persons in all 
States. 
"(2) In determining allocations under this subsection the Secretary 
shall use what the Secretary determines to be the best available data. 
"(3) Amounts available to prime sponsors under paragraph (1) 
of subsection (a) shall, out of the total amounts allocated to each State 
under such paragraph, be allocated by the Secretary among prime spon-
sors within each State, in accordance with the factors set forth in para-
graph (1) of this subsection. 
"(c) The amount available to the Governor of each State under para-
graph (2) of subsection (a) shall be used in accordance with a special 
statewide youth services plan, approved by the Secretary, for such pur-
-.•:jf"'j%rr' poses as— 
" (1) providing financial assistance for employment and training 
ri- 
J .
°
A
"
. 
opportunities for eligible youths who are under the supervision 
of the State; 
K
v
s .4 - - 1
- 
"(2) providing labor market and occupational information to 
prime 
sponsors 
and 
local 
educational 
agencies, 
without 
reimbursement; 
"(3) providing for the establishment of cooperative efforts 
between State and local institutions, including (A) occuj)ational 
and career guidance and counseling and placement services for 
in-school and out-of-school youth; and (B) coordination of state-
wide activities carried out under the Career Education Incentive 
20 use 2601 
Act; 
oote. 
"(4) providing for the establishment of cooperative efforts 
between State and local institutions, including occupational and 
ic 
career guidance and counseling and placement services for 
-'i 
in-school and out-of-school youth; 
"(5) 
providing 
financial 
assistance 
for 
expanded 
and 
experimental programs in apprenticeship trades, or development 
of new apprenticeship arrangements, in concert with appropriate 
businesses and labor unions or State apprenticeship councils; and 
"(6) carrying out special model employment and training 
programs and related services between appropriate State agencies 
and prime sponsors in the State, or any combination of such prime 
sponsors, including subcontractors selected by prime sponsors, 
with particular emphasis on experimental job training within the 
private sector. 
"(d) (1) Not less than 22 percent of the amount allocated to each 
prime sponsor under paragraph (1) of subsection (a) of this section 
shall be used for programs under this subsection. 
"(2) The amou^nt available to each prime sponsor under paragraph 
(1) shall be used for programs for in-school youth carried out pursuant 
to agreements between prime sponsors and local educational agencies. 
Each such agreement shall describe in detail the employment oppor-
tunities and appropriate training and supportive services which shall 
be provided to eligible participants who are enrolled or who agree to 
enroll in a full-time program leading to a secondary school diploma, a 
junior or community college degree, or a technical or trade school 
certificate of completion. Each such agreement shall contain provisions 
to assure that funds received pursuant to the agreement will not 
.iLi^i .!j ,''• r 
supplant State and local funds expended for the same purpose. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1985 
"(e) Programs receiving assistance under paragraph (1) of 
subsection (a) shall give special consideration in carrying out 
programs authorized under section 432, to community-based organiza-
tions (as defined in section 3(4)) which have demonstrated Ante, ip. 1912. 
effectiveness in the delivery of employment and training services. 
"ELIGIBLE APPLICANTS 
"SEC. 434. Eligible applicants for purposes of this subpart, except 29 USC 910. 
section 438, are prime sponsors qualified under section 101, sponsors of Ante, p. 1917. 
Native American programs qualified under section 302(c)(1), and Ante, p. 1962. 
sponsors of migrant and seasonal farmworker programs qualified 
under section 303. 
Ante, p. 1964. 
"ELIGIBLE PARTICIPANTS 
"SEC. 435. Eligible participants for programs authorized under this Regulations, 
subpart shall be persons who— 
^^ ^^^ ^^^• 
"(1) (A) are unemployed or are underemployed or are in school 
and are ages 16 to 21, inclusive; or (B) if authorized under such 
regulations as the Secretary may prescribe, are in school and are 
ages 14 to 15, inclusive; and 
"(2) are not members of households which have current gross 
., 
family income, adjusted to an annualized basis (exclusive of 
' • '•'' 
unemployment compensation and all Federal, State, and local 
income-tested or needs-tested public payments) at a rate exceeding 
85 percent of the lower living standard income level, except that, 
pursuant to regulations which the Secretary shall prescribe, 
*' 
persons who do not meet the requirements of this subparagraph 
but who are otherwise eligible under this subpart may participate 
in appropriate activities of the type authorized under section 
432(a). 
Notwithstanding the provisions of subsection (a), 10 percent of the 
funds available for this subpart may be used for programs which 
include youths of all economic backgrounds to test the desirability of 
including youths of all economic backgrounds. 
ii CONDITIONS FOR RECEIPT or FINANCIAL ASSISTANCE 
"SEC. 436. (a) The Secretary shall not provide financial assistance 29 USC 912. 
to an eligible applicant for programs authorized under section 432 
unless such eligible applicant provides assurances that the standards 
set forth in subpart 4 will be met and unless such eligible applicant 
submits an application in such detail as the Secretary may prescribe. 
Each such application shall— 
"(1) describe the programs, projects, or activities to be carried 
out with such assistance, together with a description of the 
relationship and coordination of services provided to eligible 
participants under this subpart for similar services offered by local 
educational agencies, postsecondary institutions, the public 
employment service, the courts of jurisdiction for status and 
youthful offenders, other youth programs, community-based 
organizations, businesses and labor organizations consistent with 
the requirements of sections 121 and 203, and assurances that, to Ante, pp. 1934, 
the maximum extent feasible, use will be made of any services 1953. 
that are available without reimbursement by the State employ-
mient service that will contribute to the achievement of the pur-
poses of this subpart; 
39-194 O—80—pt. 2 
45 : QL3 
92 STAT. 1986 
PUBLIC LAW 95-524—OCT. 27, 1978 
Ante, p. 1950. 
20 u s e 2601 
note. 
Ante, p. 1943. 
Ante, p. 1930. 
Youth council, 
recommenda-
tions. 
" (2) include assurances that the application will be coordinated 
to the maximum extent feasible, with the plans submitted under 
title II, but services to youth under that title shall not be reduced 
because of the availability of financial assistance under this 
subpart; 
"(3) provide assurances, satisfactory to the Secretary, that in 
the implementation of programs under this subpart, there will be 
coordination, to the extent appropriate, with local educational 
agencies, postsecondary institutions, community-based organiza-
tions, public assistance agencies, businesses, labor organizations, 
job training programs, other youth programs, the apprenticeship 
system, the courts of jurisdiction for status and youthful offenders 
programs, and (with respect to the referral of prospective youth 
participants to the program) the public employment service 
system; 
"(4) provide assurances that in the implementation of pro-
grams under this subpart, there will be coordination, to the extent 
feasible, with activities conducted under the Career Education 
Incentive Act; 
" (5) provide assurance satisfactory to the Secretary that allow-
ances will be paid in accordance with the provisions of section 
124 and such regulations as the Secretary may prescribe for this 
subpart; 
"(6) provide assurances that the application will be reviewed 
by the appropriate prime sponsor planning council in accordance 
with the provisions of section 109; 
"(7) provide assurances that a youth council will be established 
under the jilanning council of such eligible applicant (established 
under section 109) in accordance with subsection (b) of this 
section; 
"(8) provide assurances satisfactory to the Secretary that 
effective means will be provided through which youths partici-
pating in the projects, programs, and activities may acquire 
appropriate job skills and be given necessary basic education and 
training and that suitable arrangements will be established to 
document the competencies, including skills, education, and train-
ing, derived by each participant from programs established under 
this subpart; 
"(9) provide assurances that the eligible applicant will take 
appropriate steps to develop new job classifications, new occupa-
tions, and restructured jobs; 
"(10) provide that the funds available under section 433(d) 
shall be used for programs authorized under section 432 for 
in-school youth who are eligible participants through arrange-
ments to be carried out by a local educational agency or agencies 
or postsecondary educational institution or institutions; and 
"(11) provide such other information and assurance as the 
Secretary may deem appropriate to carry out the purposes of 
this svibpart. 
"(b) Each youth council established by an eligible applicant shall 
be responsible for making recommendations to the planning coimcil 
established under section 109 with respect to planning and review of 
activities conducted under this subpart and subpart 2. Each such youth 
council's membership shall include representation from the local 
educational agency, local vocational education advisory council, post-
secondary educational institutions, business, unions, the public employ-
ment service, local government and nongovernment agencies and 
•>.,iQ 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1987 
organizations which are involved in meeting the special needs of 
youths, the community served by such applicant, the prime sponsor, 
and youths themselves. 
"(c) No program of work experience for in-school youth supported 
under this subpart shall be entered into unless an agreement has been 
made between the prime sponsor and a local educational agency or 
agencies, after review by the youth council established under subsection 
(b). Each such agreement shall— 
"(1) set forth assurances that participating youths will be 
provided meaningful work experience, which will improve their 
ability to make career decisions and which will provide them with 
basic work skills needed for regular employment or self-employ-
ment not subsidized under this in-schopl program; 
" (2) be administered, under agreements with the prime sponsor, 
by a local educational agency or agencies or a postsecondary edu-
cational institution or institutions within the area served by the 
prime sponsor, and set forth assurances that such contracts have 
been reviewed by the youth council established under subsection 
"(3) set forth assurances that job information, counselmg, 
guidance, and placement services will be made available to par-
ticipating youths and that funds provided under this program 
will be available to, and utilized by, the local educational agency 
or agencies to the extent necessary to pay the cost of school-based 
counselors to carry out the provisions of this in-school program; 
" (4) set forth assurances that jobs provided under this program 
will be certified by the participating educational agency or insti-
tution as relevant to the educational and career goals of the par-
ticipating youths; 
"(5) set forth assurances that the eligible applicant will advise 
participating youths of the availability of other employment and 
training resources provided under this Act, and other resources 
available in the local community to assist such youths in obtain-
ing employment or self-employment; 
" (6) set forth assurances that youth participants will be chosen 
from among youths who are eligible participants who need work 
to remain in school, and shall be selected by the appropriate edu-
cational agency or institution, based on the certification for each 
participating youth by the school-based guidance counselor that 
the work experience provided is an appropriate component of the 
overall educational program of each youth. 
REVIEW OF PLANS BY SECRETARY 
"SEC. 437. The provisions of sections 102,104, and 107 shall apply to 
all programs and activities authorized under section 432. 
"SECRETARY'S DISCRETIONARY PROJECTS 
Agreement 
between prime 
sponsor and local 
educational 
agency. 
29 use 913. 
Ante, pp. 1918, 
1922, 1929. 
"SEC. 438. (a)(1) The Secretary of Labor is authorized, either 29 USC 914. 
directly or by way of contract or other arrangement, with prime spon-
sors, public agencies, and private organizations to carry out innova-
tive and experimental programs to test new approaches for dealing 
with the unemployment problems of youth and to enable eligible par-
ticipants to prepare for, enhance their prospects for, or secure employ-
ment in occupations through which they may reasonably be expected 
to advance to productive working lives. Such programs shall include, 
92 STAT. 1988 
PUBLIC LAW 95-524—OCT. 27, 1978 
Consultation. 
Transfer of funds. 
Ante, p. 1912. 
where appropriate, cooperative arrangements with educational agen-
cies to provide special programs and services for eli^ble participants 
enrolled in secondary schools, postsecondary educational institutions, 
and technical and trade schools, including job experience, counseling 
and guidance prior to the completion of secondary or postsecondary 
education and making available occupational, educational, and train-
ing information through statewide career information systems. 
"(2) In carrying out or supporting such programs, the Secretary 
shall consult, as appropriate, with the Secretary of Commerce, the Sec-
retary of Health, Education, and Welfare, the Secretary of Housing 
and Urban Development, the Secretary of Agriculture, the Director 
of the ACTION Agency, and the Director of the Community Services 
Administration. 
"(3) Funds available under this section may be transferred to other 
Federal departments and agencies to carry out functions delegated to 
them pursuant to agreements with the Secretary. 
"(b) The Secretary and prime sponsors, as the case may be, shall 
give special consideration in carrying out innovative and experimental 
programs assisted under this section to community-based organiza-
tions (as defined in section 3(4)) which have demonstrated effective-
ness in the delivery of employment and training services. 
29 use 915. 
YOUTH EMPLOYMENT INCENTIVE AND SOCIAL BONUS PROGRAM 
"SEC. 439. (a) From funds available under section 438 the Secretary, 
through the use of prime sponsors where feasible, shall carry out in 
not more than 10 areas of high youth unemployment a youth employ-
ment incentive and social bonus demonstration program in order to 
test the efficacy of providing incentives for private industry to estab-
lish additional employment opportunities for youth without signifi-
cant previous employment experience. 
" (b) (1) The Secretary shall provide a social bonus of not more than 
$2,500 per year, in such amount and in such manner as the Secretary 
shall prescribe, to each employer who, pursuant to an agreement under 
this section, has employed 5 eligible youths for at least 35 hours per 
week for a period of not less than one year. The Secretary may allow 
for payment after 9 months in exceptional circumstances. 
"(2) A youth is eligible if such youth is economically disadvan-
taged, unemployed, and has no significant previous employment, as 
determined by the Secretary. No youth may participate in this pro-
gram for more than 18 months. 
"(3) An employer may receive a social bonus for each such youth 
employed if— 
" (A) the employer has at least 5 eligible youths in the program; 
and 
"(B) the employer offers each youth in the program appropri-
ate training, supportive services, and counseling. 
If such training includes on-the-job training, the social bonus shall be 
in addition to any moneys received under the on-the-job training 
agreement. 
"(c) In the selection of employers to carry out projects under this 
section, the Secretary shall give priority to urban poverty areas in 
which the State or local government provides for special tax treatment 
for any employer which locates or expands within the urban poverty 
area, and to any employer establishing a new facility in an urban pov-
erty area. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1989 
"(d) No payment for a social bonus may be made under this section 
unless— 
"(1) youth employed under this program are paid no less than 
the higher of the prevailing rate of pay for the occupation and 
job classification of individuals employed by the same employer, 
or the minimum wage under section 6(a) (1) of the Fair Labor 
Standards Act of 1938 or the applicable State or local minimum 
wage; and 
"(2) (A) the conditions of this Act are followed including 
sections 121(g)(1)(B) 
(relating to maintenance of effort^, 
121(f)(1) (relating to meaningful training and employment), 
and 123(a) (relating to jobs in low wage industries); and 
"(B) the employment will not result in the filling of a job 
opening created by the action of the employer in laying off or 
terminating the employment of any regular employee in antici-
pation of filling the vacancy so created by hiring a youth employee 
in order to receive such social bonus. 
"(e) An employer who receives a social bonus under this section may 
not receive, apply for, or accept any financial advantage from the Fed-
eral Government for such employment other than as specified in this 
Act. 
"(f)(1) The Secretary, in consultation with the Secretary of the 
Treasury and other appropriate Federal officials, shall assure that 
activities carried out under this section are coordinated with any 
appropriate other activities under which employers are provided 
incentives or credits by the Federal Government for the employment 
of comparably unemployed individuals. 
"(2) Not later than 36 months after the date of enactment of this 
section the Secretary, in consultation with the Secretary of the Treas-
ury and other appropriate Federal officials shall submit to the appro-
priate committees of the Congress a rej)ort on the results of activities 
carried out under this section in comparison to the results of such other 
activities. 
"Subpart 4—General Provisions 
Requirements. 
29 u s e 206. 
Ante, p. 1934. 
Ante, p. 1941. 
Financial help, 
prohibition. 
Consultation with 
Secretary of the 
Treasury. 
Report to 
Congress. 
a. 
DISTRIBUTION OF FUNDS 
"SEC. 441. Of the sums available for carrying out the provisions 
of this part— 
" (1) 15 percent shall be available for subpart 1; 
" (2) 15 percent shall be available for subpart 2; and 
" (3) 70 percent shall be available for subpart 3. 
<
( 
WAGE PROVISIONS 
"SEC. 442. Kates of pay under this part shall be no less than the 
higher of— 
"(1) the minimum wage under section 6(a)(1) of the Fair 
Labor Standards Act of 1938, but in the case of an individual 
who is 14 or 15 years old, the wage provided in accordance with 
the provisions of subsection (b) of section 14 of the Fair Labor 
Standards Act of 1938 ; 
"(2) the State or local minimum wage for the most nearly 
comparable employment, but in the case of an individual who is 
14 or 15 years old the wage provided in accordance with the 
applicable provisions of the applicable State or local minimum 
wage law; or 
29 use 916. 
29 use 917. 
29 use 214. 
92 STAT. 1990 
PUBLIC LAW 95-524—OCT. 27, 1978 
Agreement with 
employer and 
labor 
organization. 
Job 
reclassification. 
Pay rates. 
Job classification, 
determination. 
Rates of pay. 
40 u s e 276a 
note. 
"(3) the prevailing rates of pay, if any, for occupations and 
job classifications of individuals employed by the same employer, 
except that— 
"(A) whenever the prime sponsor has entered into an 
agreement with the employer and the labor organization rep-
resenting employees engaged in similar work in the same area 
to pay less than the rates provided in this paragraph, youths 
may be paid the rates specified in such agreement; 
(B) whenever an existing job is reclassified or restruc-
tured, youths employed in such jobs shall be paid at rates 
not less than are provided under paragraph (1) or (2), but 
if a labor organization represents employees engaged in simi-
lar work in the same area, such youths shall be paid at rates 
specified in an agreement entered into by the appropriate 
prime sponsor, the employer, and the labor organization with 
respect to such reclassified or restructured jobs, and if no 
agreement is reached within thirty days after the initiation 
of the agreement procedure referred to in this clause the 
labor organization, prime sponsor, or employer may petition 
the Secretary, who shall establish appropriate wages for the 
reclassified or restructured positions, taking into account 
wages paid by the same employer to persons engaged in 
similar work; 
"(C) whenever a new or different job classification or 
occupation is established and there is no dispute with respect 
to such new or different job classification or occupation, 
youths to be employed in such jobs shall be paid at rates not 
less than are provided in paragraph (1) or (2), but if there 
is a dispute with respect to such new or different job classifi-
cation or occupation, the Secretary, shall within 30 days after 
receipt of the notice of protest by the labor organization 
representing employees engaged in similar work in the same 
area, make a determination whether such job is a new or 
different job classification or occupation; and 
"(D) in the case of projects to which the provision of 
the Davis-Bacon Act (or any Federal law containing labor 
standards in accordance with the Davis-Bacon Act) otherwise 
apply, the Secretary is authorized, for projects financed under 
subparts 2 and 3 under $5,000, to prescribe rates of pay for 
youth participants which are not less than the applicable 
minimum wage but not more than the wage rate of the enter-
ing apprentice in the most nearly comparable apprenticeable 
trade, and to prescribe the appropriate ratio of journeymen 
to such participating youths. 
ii 
Financial 
assistance. 
29 use 918. 
SPECIAL CONDITIONS 
"SEC. 443. (a) The Secretary shall provide financial assistance under 
this part only if he determines that the activities to be assisted meet the 
requirements of this section. 
" (b) The Secretary shall determine that the activities assisted under 
this part— 
"(1) will result in an increase in employment opportunities 
over those opportunities which would otherwise be available; 
"(2) will not result in the displacement of currently employed 
workers (including partial displacement such as reduction in the 
hours of nonovertime work or wages or employment benefits); 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1991 
"(3) will not impair existing contracts for services or result in 
the substitution of Federal for other funds in connection with 
work that would otherwise be performed; 
"(4) will not substitute jobs assisted under this part for exist-
ing federally assisted jobs; 
"(.5) will not employ any youth when any other person is on 
layoff by the employer from the same or any substantially equiv-
alent job in the same area; and 
" (6) will not be used to employ any person to fill a job opening 
created by the act of an employer in laying off or terminating 
employment of any regular employee, or otherwise reducing the 
regular work force not supported under this part, in anticipation 
of filling the vacancy so created by hiring a youth to be supported 
under this part. 
"(c) The jobs in each promotional line will in no way infringe 
upon the promotional opportunities which w^ould otherwise be availa-
ble to persons currently employed in public services not subsidized 
under this Act and no job will be filled in other than an entry level 
position in each promotional line until applicable personnel procedures 
and collective-bargaining agreements have been complied with. 
"(d) Where a labor organization represents employees who are 
engaged in similar work in the same area to that proposed to be per-
formed under the program for which an application is being developed 
for submission under this part, such organization shall be notified and 
shall be afforded a reasonable period of time prior to the submission 
of the application in which to make comments to the applicant and to 
the Secretary. 
"(e) Activities funded under this part shall meet such other stand-
ards as the Secretary may deem appropriate to carry out the purposes 
of this Act. 
"(f) Funds under this part shall not be used to provide full-time 
employment opportunities (1) for any person who has not attained 
the age with respect to which the requirement of compulsory education 
ceases to apply under the laws of the State in which such individual 
resides, except (A) during periods when school is not in session and 
(B) where employment is undertaken in cooperation with school-
lelated programs awarding academic credit for the work experience, 
or (2) for any person who nas not attained a high school degree or its 
equivalent if it is determined, in accordance with procedures estab-
lished by the Secretary, that there is substantial evidence that such 
person left school in order to participate in any program under this 
part. 
"SPECIAL PROVISIONS FOR SUBPARTS 2 AND 
3 
"SEC. 444, (a) Appropriate efforts shall be made to ensure that 
youths participating in programs, projects, and activities under sub-
parts 2 and 3 shall be youths who are experiencing severe handicaps 
in obtaining employment, including but not limited to those who lack 
credentials (such as a high school diploma), those who require sub-
stantial basic and remedial skill development, those who are women 
and minorities, those who are veterans of military service, those who 
are offenders, those who are handicapped, those with dependents, or 
those who have otherwise demonstrated special need, as determined by 
the Secretary, 
"(b) The Secretary is ;iuthorized to make such reallocation as the 
Secretary deems appropriate of any amount of any allocation under 
subparts 2 and 3 to the extent that the Secretarv determines that an 
Labor 
organization, 
notifications. 
Full-time 
employment, 
prohibitions. 
Handicapped and 
others. 
29 use 919. 
Reallocation. 
92 STAT. 1992 
PUBLIC LAW 95-524—OCT. 27, 1978 
Publication in 
Federal Register. 
Ante, p. 1934. 
eligible applicant will not be able to use such amount within a reasona-
ble period of time. Any such amount may be reallocated only if the 
Secretary has provided 30 days' advance notice of the proposed real-
location "to the eligible applicant and to the Governor of the State of 
the proposed reallocation, during which period of time the eligible 
applicant and the Governor may submit comments to the Secretary. 
After considering any comments submitted during such period, the 
Secretary shall notify the Governor and affected eligible applicants of 
any decision to reallocate funds, and shall publish any such decision 
in the Federal Register. Priority shall be given in reallocating such 
funds to other areas within the same State. 
"(c) The provisions of section 121(g)(1)(C) shall apply to sub-
parts 2 and 3. 
29 use 920. 
Cooperation with 
Secretary of 
HEW. 
Regulations. 
29 u s e 921. 
29 u s e 922. 
Ante, p. 1917. 
" A C A D E M I C 
(CREDIT, EDUCATION 
CREDIT, COUNSELING AND PLACEMENT 
SERVICES, AND BASIC SKILLS DEVELOPMENT 
"SEC. 445. (a) In carrying out this part, appropriate efforts shall 
be made to encourage the granting by the educational agency or school 
involved of academic credit to eligible participants who are in school. 
"(b) The Secretary, in carrjdng out the purposes of this part, shall 
cooperate with the Secretary of Health, Education, and Welfare to 
make suitable arrangements with appropriate State and local educa-
tion officials whereby academic credit may be awarded, consistent with 
applicable State law, by educational institutions and agencies for com-
petencies derived from work experience obtained through programs 
established under this part. 
" (c) All activities assisted under this part, pursuant id such regula-
tions as the Secretary shall prescribe, shall provide appropriate coun-
seling and placement services designed to facilitate the tr.ansition of 
youth from participation in the project to (1) peimanent jobs in the 
public or private sector, or (2) education or training programs. 
u 
DISREGARDING EARNINGS 
"SEC. 446. Earnings and allowances received by any youth under 
this part shall be disregarded in determining the eligibility of the 
youth's family for, and the amount of, any benefits based on need 
under any Federal or federally assisted programs. 
u 
RELATION TO OTHER PROVISIONS 
"SEC. 447. The provisions of title I shall apply to this part, except 
to the extent that any such provision may be inconsistent with the 
provisions of this part. 
"PART B—JOB CORPS 
(( 
STATEMENT OF PURPOSE 
Establishment. 
"SEC. 450. This part establishes a Job Corps for economically dis-
29 use 923. 
advantaged young men and women, sets forth standards and proce-
dures for selecting individuals as enrollees in the Job Corps, authorizes 
the establishment of residential and nonresidential centers in which 
enrollees will participate in intensive programs of education, voca-
tional training, work experience, counseling and other activities, and 
prescribes various other powers, duties, and responsibilities incident to 
the operation and continuing development of the Job Corps. The 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1993 
purpose of this part is to assist young persons who need and can 
benefit from an unusually intensive program, operated in a group set-
ting, to become more responsible, employable, and productive citizens; 
and to do so in a way that contributes, where feasible, to the devel-
opment of national, State, and community resources, and to the 
development and dissemination of techniques for working with the 
disadvantaged that can be widely utilized by public and private insti-
tutions and agencies. 
a 
ESTABLISHMENT 01 THE JOB CORPS 
"SEC. 451. There is established within the Department of Labor a 29 USC 924. 
'Job Corps'. 
"INDIVIDUALS ELIGIBLE FOR THE 
JOB CORPS 
"SEC. 452. To become an enrollee in the Job Corps, a young man or 29 U
S
C 925. 
woman must be an eligible youth who— 
"(1) has attained age 14 but not attained age 22 at the time Regulations, 
of enrollment, except that such maximum age limitation may be 
waived, in accordance with regulations of the Secretary, in the 
case of any handicapped individual; 
"(2) is economically disadvantaged or is a member of a family 
which is economically disadvantaged, and who requires additional 
education, training, or intensive counseling and related assistance 
in order to secure and hold meaningful employment, participate 
successfully in regular school work, qualify for other suitable 
training programs, or satisfy Armed Forces requirements; 
"(3) is currently living in an environment so characterized by 
cultural deprivation, a disruptive homelife, or other disorienting 
conditions as to substantially impair prospects for successful par-
ticipation in other programs providing needed training, educa-
tion, or assistance; 
"(4) is determined, after careful screening as provided for in 
sections 453 and 454 to have the present capabilities and aspira-
tions needed to complete and secure the full benefit of the Job 
Corps and to be free of medical and behavioral problems so 
serious that the individual could not adjust to the standards of 
conduct, discipline, work, and training which the Job Corps 
involves; and 
"(5) meets such other standards for enrollment as the Secretary 
may prescribe and agrees to comply with all applicable Job Corps 
rules and regulations. 
" S C R E E N I N G AND SELECTION OF A P P L I C A N T S : GENERAL 
PROVISIONS 
"SEC. 453. (a) The Secretary shall prescribe specific standards and 29 USC 926. 
procedures for the screening and selection of applicants for the Job 
Corps. To the extent practicable, these rules shall be implemented Rules, 
through arrangements with agencies and organizations such as com-
munity action agencies, public employment offices, professional groups, 
labor organizations, and agencies and individuals having contact with 
youths over substantial periods of time and able to offer reliable 
information as to their needs and problems. The rules shall provide 
for necessary consultation with other individuals and organizations, 
including court, probation, parole, law enforcement, education, wel-
fare, and medical authorities and advisers. The rules shall also provide 
for the interviewing of each applicant for the purpose of— 
92 STAT. 1994 
PUBLIC LAW 95-524—OCT. 27, 1978 
Rural youth. 
" (1) determining whether the applicant's educational and voca-
tional needs can best be met through the Job Corps or an alterna-
tive program in the applicant's home community; 
"(2) obtaining from the applicant pertinent data relating to 
background, needs, and interests for determining eligibility and 
potential assignment; and 
"(3) giving the applicant a full understanding of the Job Corps 
and what will be expected of an enrollee in the event of acceptance. 
"(b) The Secretary shall make no payments to any individual or 
organization solely as compensation for referring the names of candi-
dates for Job Corps. 
"(c) The Secretary shall assure that Job Corps enroUees include 
an appropriate number of candidates selected from rural areas, taking 
into account the proportions of eligible youth who reside in rural 
areas and the need to provide residential facilities for such youth. 
29 use 927. 
Probation or 
parole, release. 
29 use 928. 
Waiver. 
"SCREENING AND SELECTION: SPECIAL LIMITATIONS 
"SEC. 454. (a) No individual shall be selected as an enrollee unless 
there is reasonable expectation that the individual can participate 
successfully in group situations and activities, is not likely to engage 
in behavior that would prevent other enrollees from receiving the 
benefit of the program or be incompatible with the maintenance of 
sound discipline and satisfactory relationships between the center to 
which the individual might be assigned and surrounding communi-
ties, and unless the individual manifests a basic understanding of 
both the rules to which the individual will be subject and of the con-
sequences of failure to observe those rules. 
"(b) An individual on probation or parole may be selected only if 
release from the supervision of the probation or parole officials is sat-
isfactory to those officials and the Secretary and does not violate 
applicable laws or regulations. No individual shall be denied a position 
in the Job Corps solely on the basis of that individual's contact with 
the criminal justice system. 
a 
ENROLLMENT AND ASSIGNMENT 
"SEC, 455. (a) No individual may be enrolled in the Job Corps for 
more than two years, except as the Secretary may authorize in special 
cases. 
"(b) Enrollment in the Job Corps shall not relieve any individual 
of obligations under the Military Selective Service Act (50 U.S.C. 
App. 451etseq.). 
"(c) After the Secretary has determined whether an enrollee is to be 
assigned to a Job Corps Center or a Job Corps Civilian Conservation 
Center, the enrollee shall be assigned to the center of the appropriate 
type which is closest to the enrollee's home, except that the Secretary 
may waive this recjuirement for good cause, including to ensure an 
equitable opportunity for youth from various sections of the Nation 
to participate in the program, to prevent undue delays in assignment, 
to adequately meet the educational or other needs of an enrollee, and 
for efficiency and economy in the operation of the program. 
'JOB CORPS CENl'ERS 
Agreements with 
"SEC. 456. (a) The Secretary may make agreements with Federal, 
other agencies. 
State, or local agencies, including a State board or agency designated 
29 use 929. 
pursuant to section 104(a)(1) of the Vocational Education Act of 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1995 
1963 which operates or wishes to develop area vocational education 
school facilities or residential vocational schools (or both) as author-
ized by such Act, or private organizations for the establishment and 
operation of Job Corps centers. Job Corps centers may be residential or 
nonresidential in character, or both, and shall be designed and operated 
so as to provide enrollees, in a well-supervised setting, with education, 
vocational training, work experience (either in direct program activi-
ties or through arrangements with employers), counseling, and other 
services appropriate to their needs. The centers shall include Civilian 
Conservation Centers, located primarily in rural areas, which shall 
provide, in addition to other training and assistance, programs of work 
experience to conserve, develop, or manage public natural resources or 
public recreational areas or to develop community projects in the 
public interest. The centers shall also include training centers located 
in either urban or rural areas which shall provide activities including 
training and other services for specific types of skilled or semi-skilled 
employment. 
"(b) To the extent feasible, Job Corps centers shall offer education 
and vocational training opportunities, together with supportive serv-
ices, on a nonresidential basis to participants in other programs under 
this Act. Such opportunities may be offered on a reimbursable basis 
or through such other arrangements as the Secretary may specify. 
20 u s e 2304, 
2392. 
Civilian 
Conservation 
Centers. 
a 
PROGRAM ACTIVITIES 
"SEC. 457. (a) Each Job Corps center shall provide enrollees with 
an intensive, well-organized, and fully supervised program of educa-
tion, vocational training, work experience, planned vocational and 
recreational activities, physical rehabilitation and development, and 
counseling. To the fullest extent feasible, the required program shall 
include activities to assist enrollees in choosing realistic career goals, 
coping with problems they may encounter in home communities, or 
in adjusting to new communities, and planning and managing daily 
affairs in a manner that will best contribute to long-term upward 
mobility. Center programs shall include required participation in cen-
ter maintenance work to assist enrollees in increasing their sense of 
contribution, responsibility, and discipline. 
"(b) The Secretary may arrange for enrollee education and voca-
tional training through local public or private educational agencies, 
vocational educational institutions, or technical institutes, whenever 
such institutions provide training substantially equivalent in cost and 
quality to that which the Secretary could provide through other means. 
" (c) To the extent feasible, arrangements for education, both at the 
center and at other locations, shall provide opportunities for qualified 
enrollees to obtain the equivalent of a certificate of graduation from 
high school. The Secretary, with the concurrence of the Secretary of 
Health, Education, and Welfare, shall develop certificates to be issued 
to each enrollee who satisfactorily completes service in the Job Corps 
and which will reflect the enrollee's level of educational attainment. 
29 use 930. 
Arrangements 
with local 
educational 
agencies and 
technical 
institutes. 
Graduation 
certificate. 
Concurrence with 
Secretary of 
HEW. 
a 
ALLOWANCES AND SUPPORT 
"SEC. 458 (a) The Secretary is authorized to provide enrollees with 29 USC 931. 
such personal, travel, and leave allowances, and such quarters, sub-
sistence, transportation, equipment, clothing, recreational services, and 
other expenses as he may deem necessary or appropriate to their needs. 
For the fiscal year ending September 30, 1979, personal allowances 
92 STAT. 1996 
PUBLIC LAW 95-524—OCT. 27, 1978 
Personal 
allowance 
limitation 
increase. 
Regulation. 
Leave. 
Rules. 
Readjustment 
allowance. 
Beneficiary 
payment. 
shall be established at a rate not to exceed $60 per month during the 
first 6 months of an enrollee's participation in the program and not to 
exceed $100 per month thereafter, except that allowances in excess of 
$60 per month, but not exceeding $100 per month, may be provided 
from the beginning of an enrollee's participation if it is expected to 
be of less than 6 months' duration and the Secretary is authorized to 
pay personal allowances in excess of the rates specified in this subsec-
tion in unusual circumstances as determined by him. For fiscal years 
beginning on or after October 1, 1979, such personal allowance limita-
tions may be increased, by regulation, as the Secretary determines 
appropriate. Such allowances shall be graduated up to the maximum 
so as to encourage continued participation in the program, achieve-
ment and the best use by the enrollee of the funds so provided and 
shall be subject to reduction in appropriate cases as a disciplinary 
measure. To the degree reasonable, enrollees shall be required to meet 
or contribute to costs associated with their individual comfort and 
enjoyment from their personal allowances. 
"(b) The Secretary shall prescribe rules governing the accrual of 
leave by enrollees. Except in the case of emergency, he shall in no event 
assume transportation costs connected with leave of any enrollee who 
has not completed at least 6-months' service in the Job Corps. 
"(c) The Secretary may provide each former enrollee upon termi-
nation, a readjustment allowance at a rate not to exceed, for the fiscal 
year ending September 30, 1979, $100 for each month of satisfactory 
participation in the Job Corps. For fiscal years beginning on or after 
October 1, 1979, such readjustment allowance limitation may be 
increased, by regulation, as the Secretary determines appropriate. No 
enrollee shall be entitled to a readjustment allowance unless he has 
remained in the program at least 90 days, except in unusual circum-
stances as determined by the Secretary. The Secretary may, from time 
to time, to advance to or on behalf of an enrollee such portions of his 
readjustment allowances as the Secretary deems necessary to meet 
extraordinary financial obligations incurred by that enrollee. The 
Secretary is authorized, pursuant to rules or regulations, reduce the 
amount of an enrollee's readjustment allowance as a penalty for mis-
conduct during participation in the Job Corps. In the event of an 
enrollee's death during his period of service, the amount of any unpaid 
readjustment allowance shall be paid in accordance with the provisions 
of section 5582 of title 5, United States Code. 
"(d) Such portion of the readjustment allowance as prescribed by 
the Secretary may be paid monthly during the period of service of the 
enrollee directly to a spouse or child of an enrollee, or to any other 
relative who draws substantial support from the enrollee, and any 
amount so paid shall be supplemented by the payment of an equal 
amount by the Secretary. 
(( 
STANDARDS OF CONDUCT 
29 use 932. 
"SEC. 459. (a) Within Job Corps centers standards of conduct shall 
be provided and stringently enforced. If violations are committed by 
enrollees, dismissal from the Corps or transfers to other locations shall 
be made if it is determined that retention in the Corps, or in the par-
ticular center, will jeopardize the enforcement of such standards or 
diminish the opportunities of other enrollees. 
"(b) To promote the proper moral and disciplinary conditions in 
the Job Corps, the directors of Job Corps centers shall take appropri-
ate disciplinary measures against enrollees, including dismissal from 
the Job Corps, subject to expeditious appeal to the Secretary. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1997 
(( 
COMMUNITY PARTICIPATION 
"SEC. 460. The Secretary shall encourage and cooperate in activities 29 USC 933. 
to establish a mutually beneficial relationship between Job Corps 
centers and nearby communities. These activities shall include the 
establishment of community advisory councils to provide a mechanism 
for joint discussion of common problems and for planning programs 
of mutual interest. Youth shall be represented on the advisory council 
and separate youth councils may be established composed of enrollees 
and young people from the communities. The Secretary shall assure 
that each center is operated with a view to achieving, so far as possible, 
objectives which shall include— 
"(1) giving community officials appropriate advance notice of 
changes in center rules, procedures, or activities that may affect or 
be of interest to the community; 
"(2) affording the community a meaningful voice in center 
affairs of direct concern to it, including policies governing the 
issuance and terms of passes to enrollees; 
"(3) providing center officials with full and rapid access to 
relevant community groups and agencies, including law enforce-
ment agencies and agencies which work with young people in the 
community; 
"(4) encouraging the fullest practicable participation of 
enrollees in programs for community improvement or betterment, 
with appropriate advance consultation with business, labor, pro-
fessional, and other interested community groups; 
" (5) arranging recreational, athletic, or similar events in which 
enrollees and local residents may participate together; 
" (6) providing community residents with opportunities to work 
. 
with enrollees directly as part-time instructors, tutors, or advisers, 
either in the center or in the community; 
"(7) developing, where feasible, job or career opportunities for 
enrollees in the community; and 
"(8) promoting interchanges of information and techniques 
among, and cooperative projects involving, the center and com-
munity schools, educational institutions, agencies serving young 
people and recipients of funds under this Act. 
"COUNSELING AND JOB PLACEMENT 
"SEC. 461. (a) The Secretary shall counsel and test each enrollee at 29 USC 934. 
regular intervals to measure progress in educational and vocational 
programs. 
"(b) The Secretary shall counsel and test enrollees prior to their 
scheduled terminations to determine their capabilities and shall make 
every effort to place them in jobs in the vocation for which they are 
trained or to assist them in attaining further training or education. In 
placing enrollees in jobs, the Secretary shall utilize the public employ-
ment service system to the fullest extent possible. 
"(c) The Secretary shall determine the status and progress of 
enrollees scheduled for termination and make every effort to assure 
that their needs for further education, training, and counseling are 
met, 
" (d) The Secretary shall arrange for the readjustment allowance to 
be paid to former enrollees (who have not already found employment) 
at the State employment service office nearest the home of any such 
former enrollee who is returning home, or at the nearest such office 
92 STAT. 1998 
PUBLIC LAW 95-524—OCT. 27, 1978 
29 use 935. 
Consultation. 
Waiver. 
Report to 
Congress. 
Cooperation with 
Secretary of 
HEW. 
where the former enrollee has indicated an intent to reside. If the 
Secretary uses any other public agency or private organization in lieu 
of the public employment service system, the Secretary shall arrange 
for that organization or agency to pay the readjustment allowance. 
a EXPERIMENTAL AND DEVELOPMENTAL PROJECTS 
"SEC. 462. (a) (1) The Secretary is authorized to undertake experi-
mental, research, or demonstration projects to develop or test ways of 
better using facilities, encouraging a more rapid adjustment of enroU-
ees to community life that will permit a reduction in their period of 
enrollment, reducing transportation and support costs, or otherwise 
promoting greater efficiency and effectiveness in the program. These 
projects shall include one or more projects providing youths with edu-
cation, training, and other supportive services on a combined resi-
dential and nonresidential basis. 
" (2) The Secretary is authorized to undertake one or more pilot proj-
ects designed to involve youth who have a history of serious and violent 
behavior against persons or property, repetitive delinquent acts, nar-
cotics addiction, or other behavorial aberrations. 
"(3) Projects under this subsection shall be developed after appro-
priate consultation with other Federal or State agencies conducting 
similar or related programs or projects and with the prime sponsors 
in the communities where the projects will be carried out. They may be 
undertaken jointly with other Federal or federally assisted programs, 
and funds otherwise available for activities under those programs shall, 
with the consent of the head of any agency concerned, be available for 
projects under this section to the extent they include the same or sub-
stantially similar activities. The Secretary is authorized to waive any 
provision of this part which the Secretary finds would prevent the 
carrying out of elements of projects under this subsection essential to a 
determination of their feasibility and usefulness. The Secretary shall, 
in the annual report of the Secretary, report to the Congress concerning 
the actions taken under this section, including a full description of 
progress made in connnection with combined residential and nonresi-
dential projects. 
"(b) In order to determine whether upgraded vocational education 
schools could eliminate or substantially reduce the school dropout 
problem, and to demonstrate how communities could make maximum 
use of existing educational and training facilities, the Secretary, in 
cooperation with the Secretary of Health, Education, and Welfare, 
is authorized to enter into one or more agreements with State educa-
tional agencies to pay the cost of establishing and operating model 
community vocational education schools and skill centers. 
u 
ADVISORY BOARDS AND COMMITTEES 
29 use 936. 
"SEC. 463. The Secretary is authorized to make use of advisory com-
mittees in connection with the operation of the Job Corps, 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 prob-
lems, in planning program or center development, or in strengthening 
relationships between the Job Corps and agencies, institutions, or 
groups engaged in related activities. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 1999 
"PARTICIPATION OF T H E STATES 
"SEC. 464. (a) The Secretary shall take action to facilitate the effec-
tive participation of States in the Job Corps programs, including 
consultation with appropriate State agencies on matters pertaining to 
the enforcement of applicable State laws, standards of enrollee con-
duct and discipline, the development of meaningful work experience 
and other activities for enrollees, and coordination with State-operated 
programs. 
"(b) The Secretary is authorized to enter into agreements with 
States to assist in the operation or administration of State-operated 
programs which carry out the purpose of this part. The Secretary is 
authorized, pursuant to regulations, to pay part or all of the costs of 
such programs. 
"(c) No Job Corps center or other similar facility designed to carry 
out the purpose of this part shall be established within a State unless 
a notice setting forth such proposed establishment has been submitted 
to the Governor, and the establishment has not been disapproved by 
the Governor within 30 days of such submission. 
"(d) All property which would otherwise be under exclusive Fed-
eral legislative jurisdiction shall be under concurrent jurisdiction with 
the appropriate State and locality with respect to criminal law enforce-
ment as long as a Job Corps center is operated on such property. 
Consultation with 
State agencies. 
29 use 937. 
(C 
APPLICATION OF PROVISIONS OF FEDERAL LAW 
"SEC. 465. (a) Except as otherwise provided in this subsection and 29 USC 938. 
in section 8143(a) of title 5, United States Code, enrollees in the Job 
Corps shall not be considered Federal employees and shall not be sub-
ject to the provisions of law relating to Federal employment, including 
| 
those regarding hours of work, rates of compensation, leave, unem-
ployment compensation, and Federal employee benefits: 
"(1) For purposes of the Internal Revenue Code of 1954 (26 
s 
U.S.C. 1 et seq.) and title II of the Social Security Act (42 U.S.C. 
:
-
401 et seq.) enrollees shall be deemed employees of the United 
States and any service performed by an individual as an enrollee 
shall be deemed to be performed in the employ of the United 
States. 
"(2) For purposes of subchapter I of chapter 81 of title 5, 5 USC 8101. 
United States Code (relating to compensation to Federal 
employees for work injuries), enrollees shall be deemed civil 
employees 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 that subchapter shall apply except— 
"(A) the term 'performance of duty' shall not include any "Performance of 
act of an enrollee while absent from the assigned post of duty duty." 
of such enrollee, except while participating in an activity 
(including an activity while on pass or during travel to or 
from such post or duty) authorized by or under the direction 
and supervision of the Job Corps; 
"(B) in computing compensation benefits for disability or 
death, the monthly pay of an enrollee shall be deemed that 
received under the entrance salary for a grade GS-2 
employee, and sections 8113 (a) and (b) of title 5, United 
States Code, shall apply to enrollees; and 
"(C) compensation for disability shall not begin to accrue 
until the day following the date on which the injured enrollee 
is terminated. 
92 STAT. 2000 
PUBLIC LAW 95-524—OCT. 27, 1978 
Enrollment of 
women. 
29 use 939. 
Information, 
dissemination. 
29 use 940. 
JPrinting and 
binding. 
Buildings, rent 
and repair. 
Written 
notification to 
Administrator of 
General Services. 
"(3) For purposes of the Federal tort claims provisions in title 
28, United States Code, enrollees shall be considered employees 
of the Government. 
"(b) Whenever the Secretary finds a claim for damages to persons 
or property resulting from the operation of the Job Corps to be a 
proper charge against the United States, and it is not cognizable imder 
section 2672 of title 28, United States Code, the Secretary is authorized 
to adjust and settle it in an amount not exceeding $1,500. 
"(c) Personnel of the uniformed services who are detailed or 
assigned to duty in the performance of agreements made by the Secre-
tary for the support of the 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. 
u 
SPECIAL PROVISIONS 
"SEC. 466. (a) The Secretary shall immediately take steps to achieve 
an enrollment of 50 percent women in the Job Corps consistent with 
(1) efficiency and economy in the operation of the program, (2) sound 
administrative practice, and (3) the socioeconomic, educational, and 
training needs of the population to be served. 
"(b) The Secretary shall assure that all studies, evaluations, pro-
posals, and data produced or developed with Federal funds in the 
course of the Job Corps program shall become the property of the 
United States. 
"(c) Transactions conducted by private for-profit contractors for 
flob Corps centers which they are operating on behalf of the Secretary 
shall not be considered as generating gross receipts. 
ii GENERAL PROVISIONS 
"SEC. 467. The Secretary is authorized to— 
"(1) disseminate, with regard to the provisions of section 4154 
of title 39, United States Code, data and information in such 
forms as the Secretary shall deem appropriate, to public agencies, 
private organizations, and the general public; 
"(2) collect or compromise all obligations to or held by the 
Secretary and all legal or equitable rights accuring to the Secre-
tary in connection with the payment of obligations until such time 
as such obligations may be referred to the Attorney General for 
suit or collection; and 
"(3) expend funds made available for purposes of this part— 
" ( A ) for printing and binding, in accordance with appli-
cable law and regulation; and 
"(B) without regard to any other law or regulation, for 
rent of buildings and space in buildings and for repair, altera-
tion, and improvement of buildings and space in buildings 
rented by the Secretary, except that the Secretary shall not 
utilize the authority contained in this subparagraph— 
"(i) except when necessary to obtain an item, service, 
or facility, which is required in the proper administra-
tion of this part, and which otherwise could not be 
obtained, or could not be obtained in the quantity or qual-
ity needed, or at the time, in the form or under the condi-
tions in which it is needed; and 
"(ii) prior to having given written notification to the 
Administrator of General Services (if the exercise of such 
PUBLIC LAW 95-524~-OCT. 27, 1978 
92 STAT. 2001 
authority would affect an activity which otherwise would 
be under the jurisdiction of the General Services Admin-
istration) of the Secretary's intention to exercise such 
authority, the item, service, or facility with respect to 
which such authority is proposed to be exercised, and the 
reasons and justifications for the exercise of 
such 
authority. 
"UTILIZATION or 
FUNDS 
"SEC. 468. Notwithstanding the limitations of title I I and part C of 
this title, financial assistance under title I I and part C of this title 
which is used for the Job Corps program, may be used in accordance 
with the provisions of this part. 
"PART C — S U M M E R YOUTH PROGRAM 
29 use 941. 
Ante, p. 1950. 
Infra. 
"ESTABLISHMENT OF PROGRAM 
"SEC. 481. (a) The Secretary shall provide financial assistance to 
prime sponsors to conduct programs for eligible youth during the 
summer months. 
"(b) Programs shall provide eligible youth with useful work and 
sufficient basic education and institutional or on-the-job training to 
assist these youths to develop their maximum occupational potential 
and to obtain employment not subsidized under this Act. 
29 use 942. n 
a PRIME SPONSORS 
"SEC. 482. Prime sponsors eligible for assistance under this part 
shall be prime sponsors designated under section 101(c) and Native 
American entities described in section 302(c) (1). 
29 use 943. 
Ante, pp. 1917, 
1962. 
u 
Allocation of 
funds. 
FINANCIAL ASSISTANCE 
"SEC. 483. (a) In order to receive financial assistance under this 29 USe 944. 
part, a prime sponsor shall submit to the Secretary an annual plan 
pursuant to section 103. 
^f^^e, p. 1918. 
"(b) The funds appropriated for this part in any fiscal year shall 
be allocated according to the procedures set forth in subsection (c) 
except that the Secretary may reserve up to 5 percent of the appro-
priated funds to be used in the Secretary's discretion including allo-
cations to Native American entities under subsection (c) (2), 
"(c) (1) In allocating funds under this part, the Secretary shall add 
to the new appropriation the total amount of summer funds unspent 
in the previous year's summer program. 
"(2) Funds for prime sponsors designated under section 101(c) 
,. ? •, 
shall be allocated as follows: 
"(A) (i) 50 percent of such funds shall be allocated on the basis 
of each prime sponsor's proportion of the funds allocated for the 
previous year's summer programs; 
"(ii) 371/^ percent of the funds shall be allocated based on the 
ratio of the annual average number of unemployed persons in 
the prime sponsor's area to the total annual average number of 
unemployed persons in the United States; 
"(iii) 121/^ percent of the funds shall be allocated based on the Low-income 
ratio of the number of adults in low-income families in the prime families, ratio., 
sponsor's area to the total number of adults in low-income families 
in the United States; except that— 
39-194 O—80—pt. 2 
46 : QL3 
92 STAT. 2002 
PUBLIC LAW 95-524—OCT. 27, 1978 
Native American 
entities, 
allocation of 
funds. 
Regulations. 
29 use 945. 
"(B) each prime sponsor shall receive an allocation which, when 
added to its unexpended allocation for the previous fiscal year, 
shall be at least equal to the amount available to it for its summer 
program in the previous fiscal year. 
"(3) Funds for Native American entities described in section 302 
(c) (1) shall be allocated based on the ratio of the number of Native 
American youths 14 through 21 years of age inclusive in the eligible 
prime sponsor's area to the total number of Native American youths 
14 through 21 years of age inclusive in all Native American entity 
areas, except that each Native American entity shall receive an amount 
of funds equal to the amount allocated to it in the previous fiscal year. 
"(4) The total allocation to Guam, the Virgin Islands, American 
Samoa, Northern Marianas, and the Trust Territory of the Pacific 
Islands shall be equal to the same percentage of the funds allocated to 
Guam, the Virgin Islands, American Samoa, Northern Marianas, and 
the Trust Territory of the Pacific Islands under the previous year's 
summer program. 
"SECRETARIAL AUTHORITY 
"SEC. 484. Programs under this part shall meet such regulations, 
standards, and guidelines as the Secretary shall establish. 
'TFTLE V—NATIONAL COMMISSION FOE 
EMPLOYMENT POLICY 
u 
STATEMENT or 
PURPOSE 
29 use 951. 
"SEC. 501. The purpose of this title is to establish a National Cora-
mission for Employment Policy which will have the responsibility for 
examining broad issues of development, coordination, and administra-
tion and employment and training programs, and for advising the 
President and the Congress on national employment and training 
issues. 
"COMMISSION ESTABLISHED 
29 use 952. 
"SEC. 502. (a) There is established a National Commission for 
Employment Policy (formerly known as the National Commission for 
Manpower Policy and hereinafter in this title referred to as the 'Cora-
Membership, 
mission'). The Comraission shall be composed of 15 members selected 
as follows: 
"(1) The Secretary, the Secretary of Health, Education, and 
Welfare, the Administrator of Veterans' Affairs, the Chairman 
of the Equal Employment Opportunity Commission, and the 
^
^ 
Director of the Community Services Administration. 
"(2) A representative of the National Advisory Council on 
Vocational Education established under section 162 of the Voca-
20 use 2392. 
tional Education Act of 1963. 
"(3) Nine members, appointed by the President, broadly rep-
resentative of laborj industr3% commerce, education (including 
vocational and technical education), veterans, State and local elec-
tive officials currently serving in office, community based organi-
zations, individuals sei-ved by employment and training programs 
and of the general public. 
"(b) In making the first appointments under clause (3) of subsec-
tion (a), the President may appoint not more than 3 individuals who 
are serving as members of the National Comraission for Manpower 
Term of office. 
Policy on the effective date of this subsection. Any such individuals 
shall serve for a term of 1 year. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 2003 
"(c) The term of office of each member of the Commission appointed Tenn of offic<5. 
under clause (3) of subsection (a) shall be 8 years, except that— 
"(1) any member appointed to fill a vacancy shall serve for the 
remainder of the term for which his predecessor was appointed, 
and 
" (2) of the members first taking office— 
" (A) 3 shall serve for terms of 1 year; 
"(B) 3 3hallservefortermsof 2years; and 
"(C) 3 sliail serve for terms of 3 years ; 
as designated by the President at the time of appointment (subject 
to the provisions of the last sentence of subsection (b)). 
"(d)(1) The Chairman shall be selected by the President from Chairman, 
among members appointed pursuant to clause (3) of subsection (a). 
"(2) The Commission shall meet not fewer than 3 times each year 
at the call of the Chairman. 
" (3) A majority of the members of the Commission shall constitute 
a quorum, but a lesser number may conduct hearings. Any recom-
mendation may be passed only by a majority of the members present. 
Any vacancy in the Commission shall not atfect its powers but shall 
be filled in the same manner in which the original appomtment was 
made. 
"(e) The Chairman (withtheconcurrenceof the Commission) shall 
appoint a Director, who shall be chief executive officer of the Com-
mission and shall perform such duties as are prescribed by the 
Chairman. 
"rcjNCTTOxs or THE COMMISSION 
"SEC. 503. The Commission shall— 
^ 
29USC953. 
"(1) identify the employment goals and needs of the Nation, 
and assess the extent to which emplojmient and training, voca-
tional education, institutional training, vocational rehabilitation, 
economic opportunity programs, public assistance policies, 
employment-related tax policies, labor exchange policies, and 
other policies and programs under this Act and related Acts 
represent a consistent, integrated, and coordinated approach to 
meeting such needs and achieving such goals; 
"(2) develop and make appropriate recommendations (includ-
ing recommendations responsive to requests made by the Com-
mittee on Human Resources of the Senate and the Committee on 
Education and Labor of the House of Representatives), and 
develop innovative approaches, designed to meet the needs and 
goals described in clause (1); 
"(3) examine and evaluate the effectiveness of any federally 
assisted employment and training programs (including programs 
assisted under this Act), with particular reference to the contribu- 
,, 
tions of such programs to the achievement of objectives sought 
by the recommendations made under clause (2); 
"(4) examine and evaluate major Federal programs which are 
intended to, or potentially could, contribute to achieving major 
objectives of existing employment and training and related legisla-
tion or the objectives set forth in the recommendations of the 
Commission, with particular attention shall be given to the pro-
grams which are designed, or could be designed, to develop infor-
mation and knowledge about employment and training problem? 
through research and demonstration projects or to train personnel 
in fields (such as occupational counseling, guidance, and place-
ment) which are vital to the success of employment and training 
programs; 
92 STAT. 2004 
PUBLIC LAW 95-524—OCT. 27, 1978 
Consultation with 
National 
Advisory Council 
on Vocational 
Education. 
20 u s e 2392. 
Impact of energy 
shortages, study 
and 
recommendations 
to Congress. 
42 u s e 601, 
630.. 
Ante, p. 1950. 
29 u s e 801 note. 
" (5) (A) identify, after consultation with the National Advisory 
Council on Vocational Education, the employment and training 
and vocational education needs of the Nation and assess the extent 
to which employment and training, vocational education, voca-
tional rehabilitation, and other programs assisted under this and 
related Acts represent a consistent, integrated, and coordinated 
approach to meeting such needs; and 
"(B) comment, at least once annually, on the reports of the 
National Advisory Council on Vocational Education which com-
ments shall be included in one of the reports submitted by the 
National Commission pursuant to this title and in one of the 
reports submitted by the National Advisory Council on Vocational 
Education pursuant to section 162 of the Vocational Education 
Act of 1963; 
"(6) evaluate and continue to study and make recomniendations 
to the Congress on the impact of energy shortages and new energy 
dev'elopraents upon employment and training needs and include 
the findings and recommendations with respect thereto in the 
reports required by section 505; 
" (7) study and make recommendations on how, through policies 
and actions in the public and private sectors, the Nation can attain 
and maintain full employment, with special emphasis on the 
employment difficulties faced by the segments of the labor force 
that experience differentially high rates of unemployment; 
"(8) identify and assess the goals and needs of the Nation with 
respect to economic growth and work improvements, including 
conditions of employment, organizational effectiveness and effi-
ciency, alternative working arrangements, and technological 
changes; 
"(9) examine and evaluate the relationships between employ-
ment and training programs assisted under this Act with pro-
grams under parts A and C of title IV of the Social Security Act 
and related public assistance programs under the Social Security 
Act; and 
"(10) (A) examine and evaluate the eligibility standards set 
forth in titles II and VI of this Act, and of the Comprehensive 
Employment and Training Act of 1973, to determine their impact 
on single heads of households (especially women and older Amer-
icans) ; and (B) submit a report, not later than July 1, 1979, to 
the Congress, for appropriate referral, on the Commission's find-
ings together with any proposed changes in this Act concerning 
the eligibility standards for such single heads of households. 
a 
ADMINISTRATIVE PROVISIONS 
29 use 954. 
"SEC. 504. (a) Subject to such rules and regulations as may be 
adopted by the Commission, the Chairman is authorized to— 
"^1^ prescribe such rules and regulations as may be necessary; 
"(2) apjpoint and fix the compensation of such staff personnel 
as the Chairman deems necessary, and without regard to the pro-
visions of title 5, United States Code, governing appointments in 
the competitive service, and without regard to the provisions of 
5 use 5101 et 
chapter 51 and subchapter III of chapter 53 of such title, relat-
seq., 5331 
ing to classification and the General Schedule pay rates, appoint 
not to exceed 3 additional professional personnel; 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 2005 
"(3) procure the services of experts and consultants in accord-
ance with section 3109 of title 5, United States Code; 
"(4) accept voluntary and uncompensated services of profes-
sional personnel, consultants, and experts, notwithstanding any 
other provision of law; 
"(5) accept in the name of the United States and employ or 
dispose of gifts or bequests to carry out the functions of the 
Commission under this title; 
"(6) enter into contracts and make such other arrangements 
and modifications, as may be necessary; 
"(7) conduct such studies, hearings, research activities, dem-
onstration projects, and other similar activities as the Commis-
sion deems necessary to enable the Commission to carry out its 
functions under this title; 
"(8) use the services, personnel, facilities, and information of 
any department, agency, and instrumentality of the executive 
branch of the Federal Government and the services, personnel, 
facilities, and information of State and local public agencies and 
private research agencies, with the consent of such agencies, with 
or without reimbursement therefor; and 
"(9) make advances, progress, and other payments necessary 
under this iVct without regard to the provisions of section 3648 
of the Revised Statutes (31 U.S.C. 529). 
•'(b) Upon request made by the Chairman of the Commission, each 
department, agency, and instrumentality of the executive branch of 
the Federal Government is authorized and directed to make its serv-
ices, personnel, facilities, and information (including computer-time, 
estimates, and statistics) available to the greatest practicable extent to 
the Commission in the performance of its functions under this Act. 
Contract 
authority. 
"REPORTS 
"SEC. 505. The (Commission shall make at least annually a report 
of its findings and recommendations to the President and the Congress. 
The Commission may make such interim reports or recommendations 
to the Congress, the President, the Secretary, or to the heads of other 
Federal departments and agencies, and in such form, as it may deem 
desirable. The Commission shall include in any report made under this 
section any minority or dissenting views submitted by any member of 
the Commission. 
Reports to 
President and 
Congress. 
29 use 955. 
"TITLE VI—COUNTERCYCLICAL PUBLIC SERVICE 
EMPLOYMENT PROGRAM 
"STATEMENT OF PURPOSE 
"SEC. 601. It is the purpose of this title to provide for temporary 
employment during periods of high unemployment. It is the intent 
of Congress that such employment be provided during periods when 
the national rate of unemployment is in excess of 4 percent, and that 
the number of jobs funded shall be sufficient to provide jobs for 20 
percent of the number of unemployed in excess of 4 percent, or 25 
percent of the number of unemployed in excess of 4 percent in periods 
during which the national rate of unemployment is in excess of 7 
percent. 
29 use 961. 
92 STAT. 2006 
PUBLIC LAW 95-524—OCT. 27, 1978 
REPORT ON 
APPROPRIATIONS 
Presidential 
"SEC. 602. (a) (1) On O
P before March 1 of each year, the President 
reports to 
shall rejport to the Congress the amount that would be needed to be 
2o'ns*r*Qfi2 
appropriated for the following fiscal year in order to provide jobs— 
"(A) for 20 percent of the number of unemployed in excess of 
4 percent; or 
"(B) in fiscal years during which the President estimates that 
the national rate of unemployment will exceed 7 percent, for 25 
percent of the number of unemployed in excess of 4 percent. 
Such report shall contain the President's estimate of the unemploy-
ment rate for the following fiscal year, the number of unemployed in 
excess of 4 percent of the labor force, and the average man-year cost 
of each public service employment opportunity. 
"(2) If during a fiscal year the rate of unemployment equals or 
exceeds 7 percent, and the President estimates that the rate of unem-
ployment for the balance of such year will differ significantly from 
the rate contained in the most recent report submitted with respect to 
such year under this subsection or subsection (b), the President shall 
so report to the Congress and shall include the additional amount, if 
any, which would be needed to provide jobs for the applicable per-
centage of unemployed under paragraph (1) (A) or (1)(B). Such 
report shall also contain the information required by the last sentence 
of paragraph (1). 
"(b) The President shall submit supplemental reports every three 
months thereafter containing any necessary revisions in the report 
required under subsection (a) (1) due to changes in his estimates of 
unemployment or the cost of providing public service jobs under this 
title. 
"(c) The Secretary shall, as soon as practicable after submission of 
the report required under subsection (a), infonn each prime sponsor 
of its estimated allocation on the basis of the amount of funds esti-
mated in such report. Each prime sponsor's annual plan for using 
funds provided under this title shall contain provisions for an orderly 
transition from the number of jobs funded for the current year to 
the number of jobs which would be funded under such estimated 
allocation. 
"FINANCIAL ASSISTANCE 
29 use 963. 
"SEC. 603. (a) Not less than 80 percent of the funds allocated in 
accordance with the provisions of this title which are used by a prime 
sponsor for public service employment programs under this title 
shall be expended ^nly for wages and employment benefits to 
persons employed in public service jobs pursuant to this title. Not less 
than 10 percent of the funds allocated in accordance with the provi-
sions of this title for fiscal year 1979, and not less than 5 percent of 
such funds for any fiscal year thereafter, shall be expended for provid-
ing training and employability counseling and services to persons 
employed under this title. The remaining funds may be used for 
administrative and other allowable costs (such as supplies, materials, 
and equipment) incurred by the prime sponsor, program agents, proj-
ect applicants or subgrantees or contractors, in accordance with such 
regulations as the Secretary may prescribe. 
" (b) In filling teaching positions in elementary and secondary 
schools with financial assistance under this title, each prime sponsor 
shall give special consideration to unemployed persons with previous 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 2007 
teaching experience who are certified by the State in which that prime 
sponsor is located and who are otherwise eligible under the provisions 
of this title and such positions with local educational agencies shall be 
filled through subcontracting with the appropriate local educational 
agency. 
"ALLOCATION OF FUNDS 
"SEC. 604. (a) (1) The Secretary shall reserve an amount equal to not 29 USC 964. 
less than 2 percent of the amounts made available for this title for any 
fiscal year to enable Native American entities which are eligible entities 
under section 606(a)(2) to carry out public service employment 
programs. 
"(2) Not less than 85 percent of the amounts made available 
pursuant to section 602 for any fiscal year shall be allocated among 
prime sponsors by the Secretary in accordance with the provisions of 
paragraph (3). 
"(3) (A) Fifty percent of the amount allocated under this sub-
section shall be allocated among prime sponsors in proportion to the 
relative number of unemployed persons who reside within the juris-
diction of each such prime sponsor as compared to the number of 
unemployed persons who reside in all the States. 
"(B) Twenty-five percent of the amount allocated under this 
subsection shall be allocated among prime sponsors in accordance with 
the number of unemployed persons residing in areas of substantial 
unemployment within the jurisdiction of the prime sponsor compared 
to the number of unemployed persons residmg in all areas of sub-
stantial unemployment. 
"(C) Twenty-five percent of the amount allocated under this 
subsection shall be allocated among prime sponsors on the basis of 
the relative excess number of unemployed persons who reside within 
the jurisdiction of the prime sponsor as compared to the total excess 
number of unemployed persons who reside within the jurisdiction of 
all prime sponsors. For purposes of this subparagraph, the term 'excess 
,, 
number' means (i) the number of unemployed persons, residing in the 
jurisdiction of the prime sponsor, in excess of 4i/^ percent of the labor 
force residing in such jurisdiction or (ii) in the case of a prime sponsor 
which is a State, the greater of the number determined under clause (i) 
or the number of unemployed persons in excess of 4i/^ percent of the 
labor force in areas of substantial unemployment located in the juris-
diction of such prime sponsor. 
"(b) (1) The Secretary shall, from the remainder of the funds made 
available under this title, first use such remainder— 
"(A) to provide continued support for concentrated employ-
ment program grantees serving rural areas having high levels of 
unemployment, and 
"(B) to allocate among the prime sponsors serving areas within 
those standard metropolitan statistical areas and central cities 
for which current population surveys were used to determine 
annual unemployment data prior to January 1,1978, in proportion 
to the extent to which such prime sponsors allocations under this 
section and title IV are reduced as a result of termination of the 
use of such surveys, but in no event shall such a prime sponsor 
receive an amount in excess of the amount of such reduction. 
The allocations required under clause (B) of this paragraph shall not 
be made for any fiscal year beginning on or after October 1, 1980, or 
until such time as the Secretary determines that current population 
92 STAT. 2008 
PUBLIC LAW 95-524—OCT. 27, 1978 
survey data is available for use on a satisfactory basis for such areas 
and the remaining area of each State, whichever occurs first. 
"(2) The remainder of the amount made available pursuant to 
section 602 shall be available to the Secretary for financial assistance 
to prime sponsors and Native American entities described in section 
302(c) (1) (A) as the Secretary deems appropriate, taking into account 
changes in rates of unemployment. 
a 
EXPENDITURE OF FUNDS 
29 use 965. 
"SEC. 605. (a) Fifty percent of the funds available to any prime 
sponsor under this title may be used only for employment in projects 
(carried out by project applicants) planned to extend for not more 
than 18 months from the commencement of the project. A project may 
be extended for an additional 18 months if, after review of the project, 
the prime sponsor determines that the project has demonstrated its 
effectiveness in meeting the purposes of this title, in accordance with 
regulations issued by the Secretary. Employment that is not in such 
projects must be at entry level. 
"(b) Each project applicant shall submit a project application to 
the appropriate program agent or prime sponsor. Such application 
shall contain such information as required by the Secretary's 
regulations. 
"(c) Funds available to a prime sponsor under the second sentence 
of section 603(a) (with respect to training and employability counsel-
ing and services) shall be utilized for residents of the area who are 
employed under this title and who the prime sponsor determines, on 
the basis of an assessment of the employability of the participant, 
requires additional training or employability counseling or services in 
order to obtain unsubsidized employment. 
u 
PRIME SPONSORS AND PROGRAM AGENTS 
29 use 966. 
SEC. 606. (a) The Secretary shall provide financial assistance under 
this title only to— 
"(1) prime sponsors designated under section 101(c), and 
"(2) 
Native American entities described under 
section 
302(c)(1)(A). 
"(b) (1) Whenever a unit of general local government or combina-
tion of such units having a population of 50,000 or more (but less than 
that necessary to qualify as a prime sponsor under section 101) is 
within a prime sponsor's area, the prime sponsor shall, if such unit 
or units so desire, subgrant to such unit or units of general local gov-
ernment the functions of program agent with respect to the funds 
allocated to such prime sponsor on account of the area served by the 
program agent. 
" (2) For purposes of this subsection, the functions of program agent 
include the administrative responsibility for developing, funding, 
overseeing, and monitoring programs within the area, but such func-
tions shall be consistent with the annual employment and training 
plan and the subgrant which shall be developed by the prime sponsor 
in cooperation with the program agent. 
" (3) Whenever two or more units of general local government qual-
ify as program agents with respect to the same area qualifying for 
assistance, the provisions of section 101(b)(2) shall be applicable. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 2009 
'ELIGIBILITY 
"SEC. 607. An individual eligible to be employed in a position sup- ^9 USC 967. 
ported under this title shall be— 
"(1) an individual— 
"(A) who has been unemployed for at least 10 out of the 
12 weeks immediately prior to a determination under this 
section, and 
"(B) who is unemployed at the time the determination is 
made; and 
"(2) an individual— 
" (A) whose family income does not exceed 100 percent of 
the lower living standard income level (exclusive of unem-
ployment compensation and all Federal, State, and local 
income-tested or needs-tested public payments) based on the 
3-month period prior to the individual's application for par-
ticipation; or 
"(B) who is, or whose family is, receiving aid to families 
with dependent children provided under a State plan 
approved under part A of title IV of the Social Security Act, 
or who is receiving supplemental security income benefits 
under title XVI of the Social Security Act. 
a. 
WAGES 
"SEC. 608. Individuals employed in public service employment under 29 USC 968. 
this title shall be paid wages in accordance with sections 122(j) and 
"j^"^^' PP' ^^^^' 
124. 
WAGE SUPPLEMENTATION 
"SEC. 609. Public service employees (other than employees described 29 USC 969. 
in section 122 (i) (4) (B)) receiving financial assistance under this title 
may have their wages supplemented by the payment of additional 
wages for such employment only under the following conditions: 
"(1) the total amount of funds which may be used in any fiscal 
year to provide such supplemental wages shall not exceed a sum 
equal to 10 percent of such prime sponsor's allocation under this 
title for such fiscal year; and 
"(2) the supplemental wages for any public service employee 
under this title may not exceed an amount equal to 10 percent of 
the maximum federally supported wage applicable for such prime 
sponsor area under section 608, except that, in the case of an area 
in which the average wage (during the calendar year preceding 
the beginning of the applicable fiscal year) in employment cov-
ered under Federal or State unemployment compensation laws 
(without regard to any limitation on the amount of such wages 
subject to contribution under such law) exceeds 125 percent, but 
does not exceed 150 percent, of the national average wage in such 
employment, the supplemental wages for any such employee may 
not exceed 20 percent of such federally supported wage. 
a 
UTILIZATION OF FUNDS 
"SEC. 610. Funds available under this title to a prime sponsor may 29 USC 970. 
be used, with respect to individuals qualifying for assistance under this 
title, for programs authorized under title II (other than public service 
employment), part A of title III, title IV, and title VII. 
92 STAT. 2010 
PUBLIC LAW 95-524—OCT. 27, 1978 
S^y. 
"TITLE VII—PRIVATE SECTOR OPPORTUNITIES FOR 
THE ECONOMICALLY DISADVANTAGED 
STATEMENT Or PURPOSE 
29 use 981. 
"SEC. 701. It is the purpose of this title to demonstrate the effective-
ness of a variety of approaches to increase the involvement of the busi-
ness community, including small business and minority business 
enterprises, in employment and training activities under this Act, and 
to increase private sector employment opportunities for unemployed or 
underemployed persons who are economically disadvantaged. Employ-
ment and training opportunities for such eligible participants shall 
be made available by prime sponsors on an equitable basis in accord-
ance with the purposes of this title among significant segments of the 
eligible population giving consideration to the relative numbers of 
eligible persons in each such segment. 
"FINANCIAL ASSISTANCE 
29 use 982. 
"SEC. 702. (a) The Secretary shall provide financial assistance to 
each prime sponsor designated under section 101(c) which includes 
satisfactory provisions in its annual plan for title II activities for car-
rying out the purposes of this title. 
"(b) Ninety-five percent of the funds made available for carrying 
out this title shall be allocated by the Secretary on an equitable basis 
among such prime sponsors, taking into account the factors set forth 
in section 202(a). The remainder of the funds made available under 
this title shall be used by the Secretary to provide financial assistance 
to prime sponsors who join together to establish a single private indus-
\ 
try council and to Native American entities described in sections 302 
(c) (1) (A) and (B) for carrying out the purposes of this title. 
u 
CONDITIONS FOR RECEIPT OF FINANCIAL ASSISTANCE 
29 use 983. 
"SEC. 703. (a^ Each prime sponsor, and each entity described in sec-
tion) 302(c)(1) (A) and (B), desiring to receive financial assistance 
under this title, as part of its plan for title II activities, shall describe 
its proposed private sector initiatives under this title and the integra-
tion of such initiatives with other training and placement activities 
under this Act. The description shall include an analysis of private 
sector job opportunities, including estimates by occupation, industry, 
and location utilizing information provided by the private industry 
council. 
"(b) The Secretary shall provide financial assistance under this title 
to a prime sponsor, or an entity described in section 302(c) (1) (A) or 
(B),only if the Secretary determines that— 
"(1) the proposed activities for which such financial assistance 
is to be used are consistent with the provisions of this Act and the 
regulations of the Secretary; 
"(2) financial assistance made available under this title will 
be used to supplement, but not to supplant, on-the-job training 
and related activities carried out under other titles of this Act; 
"(3) the private industry council will undertake to make an 
analysis of private sector job opportunities, including estimates 
by occupation, industry, and location; 
"(4) the private industry council has provided a copy of its 
proposed plan for activities under this title to the prime sponsor 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 2011 
planning council for its review and comments and the recommen-
dations of the prime sponsor planning council were satisfactorily 
considered prior to the submission of the proposed plan to the 
Secretary; 
"(5) the proposed plan for activities under this title has been 
made available to appropriate labor organizations, community-
based organizations and educational agencies for their comments 
prior to submission to the Secretary; and 
"(6) the prime sponsor and the private industry council have 
both agreed to the plan submitted to the Secretary and have pro-
vided assurances that no activity will be funded which does not 
have the approval of both the prime sponsor and the private 
industry council. 
"(b) The Secretary shall establish api)ropriate procedures to assure 
c 
that the Department of Labor will review at the national level any 
proposal to make payments to private for-profit employers for any 
activities which are not covered by regulations under section 121 
(1) or by regulations under other provisions of this Act, and a specific 
waiver by the Secretary shall be required to make payments for any 
such activities. 
"PRIVATE INDUSTRY COUNCILS 
"SEC. 704. (a)(1) Any prime sponsor receiving financial assistance 29 USC 984. 
under this title shall establish a private industry council. The prime 
sponsor shall appoint members from industry and the business com-
munity (including small business and minority business enterprises), 
organized labor, community-based organizations, and educational 
agencies and institutions to serve on such council. Other members of 
the private industry council may be appointed by the prime sponsor 
from representatives of persons eligible to participate in activities 
under this title. In no event shall representatives of industry and busi-
ness have less than a majority on the council, and, whenever possible, 
at least half of such industry and business representatives shall be 
representatives of small business. The private industry council may 
consist of members of existing or newly formed organizations and 
members of the prime sponsor planning council. Such council may be 
established to cover two or more prime sponsor areas pursuant to 
arrangements between the prime sponsors for such areas and the 
council. 
" (2) For purposes of this subsection, the term 'small business' means "Small 
any private, for-profit enterprise employing 500 or fewer employees, business". 
"(b) The chairman of the private mdustry council (or the designee 
of the chairman) shall serve as an ex officio, nonvoting member of the 
prime sponsor planning council, and the chairman of the prime sponsor 
planning council (or the designee of the chairman) shall serve as an 
ex officio, nonvoting member of the private industry council. 
"(c) Such council shall participate with the prime sponsor in the 
development and implementation of programs under this title, and 
shall consult with the prime sponsor with respect to other programs 
under this Act. In carrying out its responsibilities, such council shall 
utilize, to the extent appropriate, community-based organizations, 
labor organizations, educational agencies and institutions, and eco-
nomic development programs. 
"(d) The Secretary shall not, by regulation or otherwise, require 
that any prime sponsor, in establishing such council, give a presump-
tive role to any particular organization. 
92 STAT. 2012 
PUBLIC LAW 95-524—OCT. 27, 1978 
"PROGRAM ACTIVITIES 
- ' ' . : ' " ' 
29 use 985. 
"SEC. 705. (a) Prime sponsors receiving financial assistance under 
this title shall, consistent with section 702(b), carry out private sector 
initiatives to demonstrate the purposes of this title. Such activities 
Ante, p. 1950. 
shall augment private sector-related activities under title II, includ-
ing arrangements for on-the-job training with private employers, and 
may include— 
"(1) coordinating programs of jobs and training and educa-
tion enabling individuals to work for a private employer while 
attending an education or training program; 
"(2) developing a small business intern program to provide a 
practical training enabling youths and other individuals to work 
in small business firms to acquire first-hand knowledge and man-
agement experience about small business; 
"(3) developing relationships between employment and train-
ing programs, educational institutions, and the j)rivate sector; 
"(4) developing useful methods for collecting information 
about Federal Government procurement contracts with private 
employers, new and planned publicly supported projects such as 
public works, economic development and community development 
programs, transportation revitalization, alternative energy tech-
nology development, demonstration, and utilization projects, 
energy conservation projects, and rehabilitation of low income 
housing as part of a community revitalization or stabilization 
effort, which provide work through private sector contractors; 
"(5) conducting innovative cooperative education programs 
for youths in secondary and postsecondary schools designed to 
coordinate educational programs with work in the private sector; 
"(6) developing and marketing model contracts designed to 
reduce the administrative burden on the employer and model con-
tracts to meet the needs of specific occupations and industries; 
"(7) coordinating programs under this title with other job 
development, placement, and employment and training activities 
carried out by public and private agencies; 
"(8) providing on-the-job training subsidies on a declining 
ratio to wages over the period of training; 
"(9) providing followup services with employees placed in pri-
vate employment and employers who hire recipients of services 
under this Act; 
"(10) encouraging employers to develop job skill requirement 
forecasts and to coordinate such forecasts with prime sponsors; 
"(11) using direct contracts for training and employment pro-
grams with private for profit and private nonprofit organizations; 
"(12) developing apprenticeship or comparable high-skill 
training programs for workers regardless of age in occupations 
where such programs do not exist presently in the area; 
"(13) increasing opportunities for upgrading from entry level 
jobs by providing counseling and other services to employees and 
employers beyond initial training periods; 
"(14) providing technical assistance to private employers to 
reduce the administrative burden of employment and training 
programs; and 
"(15) disseminating information to private employers so that 
they may more fully utilize programs under this Act. 
Procedures and 
"(b) (1) The Secretary shall establish such procedures and regula-
regulations. 
tions as may be necessary to assure that the total amount of admin-
istrative costs incurred by all prime sponsors in carrying out programs 
PUBLIC LAW 95-524^0CT. 27, 1978 
92 STAT. 2013 
under this title does not exceed 20 percent of the total cost of carrying 
out all such programs. 
"(2) The Secretary by regulation shall provide for necessary and 
reasonable limitations on administrative costs incurred by prime 
sponsors, which shall be designed to assure the effective operation of 
programs carried out by prime sponsors under this title, taking into 
account differing conditions in urban and rural areas. The administra-
tive costs of any prime sponsor carrying out a program under this title 
may not exceed the limitations established by the Secretary under this 
paragraph, unless such excess costs are justified and documented in the 
approval of the prime sponsor's program. 
Administrative 
cost limitatioas. 
"REPORT 
"SEC. 706. (a) The Secretary shall provide to the Congress by March 29 USC 986. 
1,1980, an evaluation of the activities conducted under this title accom-
panied by recommendations for legislation. 
"(b) The Secretary shall disseminate among prime sponsors infor-
mation concerning successful programs under this title. 
"TITLE VIII—YOUNG ADULT CONSEKVATION CORPS 
"STATEMENT OF PURPOSE 
"SEC. 801. It is the purpose of this title to establish a Young Adult 29 USC 991. 
Conservation Corps to provide employment and other benefits to 
youths who would not otherwise be currently productively employed, 
through a period of service during which they engage in useful con-
servation work and assist in completing other projects of a public 
nature on Federal and non-Federal public lands and waters. 
"ESTABLISHMENT OF YOUNG ADULT CONSERVATION CORPS 
"SEC. 802. To carry out the purposes of this title, there is hereby 
established a Young Adult Conservation Corps to carry out projects 
on Federal or non-Federal public lands or waters. The Secretary shall 
administer this title through interagency agreements with the Secre-
taries of the Interior and Agriculture. Pursuant to such interagency 
agreements, the Secretaries of the Interior and Agriculture shall have 
responsibility for the management of each Corps center, including 
determination of Corps members' work assignments, selection, train-
ing, discipline, and termination, and shall be responsible for an effec-
tive program at each center. 
29 USC 992, 
Administration. 
SELECTION o r ENROLLEES 
"SEC. 803. (a) Enrollees of the Corps shall be selected by the Secre- 29 USC 993,, 
taries of the Interior and Agriculture only from candidates referred 
by the Secretary. 
"(b)(1) Membership in the Corps shall be limited to individuals Membership 
who, at the time of enrollment— 
qualifications. 
fA) are unemployed; 
^B) are between the ages 16 to 23 inclusive; 
"(C) are citizens or lawfully permanent residents of the United 
States or lawfully admitted refugees or parolees; and 
"(D) are capable, as determined by the Secretary, of carrying 
out the work of the Corps for the estimated duration of each such 
individual's enrollment. 
92 STAT. 2014 
PUBLIC LAW 95-524—OCT. 27, 1978 
"(2) Individuals who, at the time of enrollment, have attained age 
16 but not attained age 19 and who have left school shall not be 
admitted to membership in the Corps unless they give adequate 
assurance, under criteria established by the Secretary, that they did 
not leave school for the purpose of enrolling in the Corps and obtaining 
employment under this title. 
"(c) The Secretary shall make arrangements for obtaining referral 
of candidates for the Corps from the public employment service, public 
assistance agencies, prime sponsors, sponsors of Native American 
Ante, p. 1962. 
programs described in section 302, sponsors of migrant and seasonal 
Ante, p. 1964. 
farmworker programs under section 303, the Secretaries of the Interior 
and Agriculture, and such other agencies and organizations as the 
Secretary may deem appropriate. The Secretary of Labor shall under-
take to assure that an equitable proportion of candidates shall be 
.>8t ;:; ' 
referred from each State. 
"(d) In referring candidates from each State in accordance with 
subsection (c), preference shall be given to youths residing in rural 
and urban areas within each such State having substantial unemploy-
ment including areas of substantial unemployment as defined m 
section 3. 
"(e)(1) No individual may be enrolled in the Corps for a total 
period of more than 12 months, with such maximum period consisting 
of either 1 continuous 12-month period, or 3 or less periods which total 
12 months, except that an individual who attains the maximum 
•'* 
permissible enrollment age may continue in the Corps up to the 
12-month limit provided in this subsection only as long as the individ-
ual's enrollment is continuous after having attained the maximum age. 
"(2) No individual shall be enrolled in the Corps if solely for 
purposes of membership for the normal period between school terms. 
a 
ACTIVITIES o r THE CORPS 
29 use 994. 
"SEC. 804. (a) Consistent with each interagency agreement, the 
Secretary of the Interior or Agriculture, as appropriate, in consulta-
tion with the Secretary of Labor shall determine the location of each 
-
" 
residential and nonresidential Corps center. The Corps shall perform 
work projects in such fields as— 
"(1) tree nursery operations, planting, pruning, thinning, and 
other silviculture measures; 
, 
"(2) wildlife habitat improvements and preservation; 
"(3) range management improvements; 
"(4) recreation development, rehabilitation, and maintenance; 
" (5) fish habitat and culture measures; 
" (6) forest insect and disease prevention and control; 
"(7) road and trail maintenance and improvements; 
"(8) general sanitation, cleanup, and maintenance; 
• *'*' " - ^ '''- 
"(9) erosion control and flood damage; 
"(10) drought damage measures; 
"(11) other natural disaster damage measures; and 
• 
"(12) integrated pest management, including activities to 
*
*
"
" 
provide the producers of agricultural commodities with informa-
tion about the appropriate amount of chemical pesticides which, 
when used in conjunction with nonchemical methods of pest 
control (A) will provide protection against a wide variety of 
pests, (B) will preserve to the greatest extent possible the quality 
of the environment, and (C) will be cost effective. 
" (b) (1) The Secretary of the Interior and the Secretary of Agricul-
ture shall undertake to assure that projects on which work is performed 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 2015 
16 use 1600 
note. 
16 use 1600 
note. 
under this title are consistent with the Forest and Eangeland Renewal 
Resources Planning Act of 1974, as amended by the National Forest 
Management Act of 1976, and such other standards relating to such 
projects as each Secretary shall prescribe consistent with other pro-
visions of Federal law (including the Fish and Wildlife Conservation 
Act;16U.S.C.601). 
" (2) The Secretary of the Interior and the Secretary of Agriculture Job placement, 
shall place individuals employed as Corps members into jobs which 
will diminish the backlog of relatively labor intensive projects which 
would otherwise be carried out if adequate funding were made 
available. 
"(c) To the maximum extent practicable, projects shall— 
"(1^ be labor intensive; 
"(2) be projects for which work plans could be readily 
developed; 
" (3) be able to be initiated promptly; 
" (4) be productive: 
" ( 5 ) 
• 
•" 
• 
• 
be likely to have a lasting impact both as to the work 
performed and the benefit to the youths participating; 
, 
"(6) provide work experience to participants in skill areas 
required for the projects; 
"(7) if a residential program, be located, to the maximum 
extent consistent with the objectives of this title in areas where 
existing residential facilities for the Corps members are available; 
and 
"(8) be similar to activities of persons employed in seasonal 
and part-time employment in agencies such as the National Park 
Service, United States Fish and Wildlife Service, Bureau of 
Reclamation, Bureau of Land Management, Bureau of Indian 
Affairs, Forest Service, Bureau of Outdoor Recreation, and Soil 
Conservation Service. 
"(d) (1) The Secretary of the Interior and the Secretary of Agri-
culture, pursuant to agreements with the Secretary, may provide for 
such transportation, lodging, subsistence, medical treatment, and other 
services, supplies, equipment, and facilities as they may deem appro-
priate to carry out the purposes of this title. To minimize trans-
portation costs. Corps members shall be assigned to projects as near 
to their homes as practicable. 
"(2) Whenever economically feasible, existing but unoccupied or 
underutilized Federal, State, and local government facilities and 
equipment of all types shall, where appropriate, be utilized for the 
purposes of the Corps centers with the approval of the Federal agency, 
State, or local government involved. 
" (e) The Secretary, in carrying out the purpose of this title shall Academic credits, 
cooperate with the Secretary of Health, Education, and Welfare to 
make suitable arrangements whereby academic credit may be awarded 
by educational institutions and agencies for competencies derived 
from work experience obtained through programs established under 
this title. 
"CONDITIONS APPLICABLE TO CORPS ENROLLEES 
"SEC. 805. (a) Except as otherwise specifically provided in this sub- 29 USe 995. 
section. Corps members shall not be deemed Federal employees and 
shall not be subject to the provisions of law relating to Federal em-
ployment including those regarding hours of work, rates of compensa-
tion, leave, unemployment compensation, and Federal employee 
benefits: 
92 STAT. 2016 
PUBLIC LAW 95-524—OCT. 27, 1978 
if.'fd: 
Compensation for 
work injuries. 
5 use 8101. 
Tort claims 
procedures. 
28 use 2671. 
Work standards, 
establishment. 
29 use 206. 
"(1) For purposes of the Internal Revenue Code of 1954 (26 
U.S.C. 1 et seq.) and title 11 of the Social Security Act (42 U.S.C. 
401 et seq.), Corps members shall be deemed employees of the 
United States and any service performed by a person as a Corps 
member shall be deemed to be performed in the employ of the 
United States. 
"(2) For purposes of subchapter 1 of chapter 81 of title 5 of 
the United States Code, relating to compensation to Federal 
employees for work injuries. Corps members shall be deemed 
civil employees of the United States within the meaning of the 
term 'employee' as defined in section 8101 of title 5, United States 
Code, and provisions of that subchapter shall apply, except that 
the term 'performance of duty' shall not include any act of a Corps 
member while absent from the member's assigned post of duty, 
except while participating in an activity (including an activity 
while on pass or during travel to or from such post of duty) 
authorized by or under the direction and supervision of the 
Secretary. 
"(3) For purposes of chapter 171 of title 18, United States 
Code, relating to tort claims procedure, Corps members shall be 
deemed civil employees of the United States within the meaning 
of the term 'employee of the Government' as defined in section 
2671 of title 28, United States Code, and provisions of that chapter 
shall apply. 
" (4) For purposes of section 5911 of title 5, United States Code, 
relating to allowances for quarters. Corps members shall be 
deemed civil employees of the United States within the meaning 
of the term 'employee' as defined in that section, and provisions 
of that section shall apply. 
"(b) The Secretary shall, in consultation with the Secretaries of 
the Interior and Agriculture, establish standards for— 
"(1) rates of pay which shall be at least at the wage required 
by section 6(a) (1) of the Fair Labor Standards Act of 1938; 
"(2) reasonable hours and conditions of employment; and 
"(3) safe and healthful working and living conditions. 
li, 
STATE AND LOCAL PROGRAMS 
Grants. 
SEC. 806. (a) Consistent with interagency agreements with the Sec-
29 use 996. 
retary, the Secretaries of the Interior and Agriculture may make 
grants or enter into other agreements— 
"(1) after consultation with the Governor, with any State 
agency or institution; 
ajiteii 3
i 
"(2) after consultation with appropriate State and local offi-
cials, with (A) any unit of general local government, or (B) (i) 
any public agency or organization, specifically including the Fed-
eral Extension Service and the cooperative extension service of 
any State with respect to projects described in section 804 (a) (12), 
or (ii) any private nonprofit agency or organization which has 
been in existence for at least 2 years; 
for the conduct under this title of any State or local component of the 
,^', 
i V 
Corps or of any project on non-Federal lands or water's or any project 
involving work on both non-Federal and Federal lands and waters. 
"(b) No grant or other agreement may be entered into under this 
section unless an application is submitted to the Secretary of the 
Interior or the Secretary of Agriculture, as the case may be, at such 
times as each such Secretary may prescribe. Each grant application 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 2017 
shall contain assurances that individuals employed under the project 
for which the application is submitted— 
"(1) meet the qualifications set forth in section 803(b) ; 
"(2) shall be employed in accordance with section 805(b) ; and 
"(3) shall be employed in activities that— 
" ( A ) will result in an increase in employment opportunities 
over those opportunities which would otherwise be available, 
"(B) will not result in the displacement of currently 
employed workers (including partial displacement such as 
reduction in the hours of nonovertime work or wages or 
employment benefits), 
"(C) will not impair existing contracts for services or 
result in the substitution of Federal for other funds in con-
nection with worJv that would otherwise be performed, 
"(D) will not substitute jobs assisted under this title for 
existing federally assisted jobs, and 
" ( E ) will not result in the hiring of any youth when any 
other person is on layoff from the same or any substantially 
equivalent job. 
"(c) Thirty percent of the sums appropriated to carry out this title 
for any fiscal year shall be made available for grants under this section 
for such fiscal year and shall be made on the basis of total youth 
population within each State. 
4( SECRETARIAL REPORTS 
"SEC. 807. The Secretary, the Secretary of the Interior, and the Sec- Report to 
retary of Agriculture shall jointly prepare and submit to the President 
President and 
and to the Congress a report detailing the activities carried out under ^Q°x^c^p*" 
this title for each fiscal year. Such report shall be submitted not later 
^^'^ 
than February 1 of each year following the date of enactment of this 
Act. The Secretaries shall include in such report such recommenda-
tions as they deem appropriate. 
"ANTIDISCRIMINATION 
"SEC. 808. The Corps shall be open to youth from all parts of the 
29 USC 998. 
Xation of both sexes and youth of all social, economic, and racial 
classifications. 
"TRANSFER OF FUNDS 
"SEC. 809. Funds necessary to carry out their responsibilities under 
29 USC 999. 
this title shall be made available to the Secretaries of the Interior and 
Agriculture in accord with interagency agreements between the Sec-
retary of Labor and the Secretaries of the Interior and Agriculture.". 
CRIMINAL 
PROVISIONS 
SEC. 3. (a) Section 665 of title 18, United States Code, is amended to 
read as follows: 
"THEFT OR EMBEZZLEMENT FROM EMPLOYMENT AND TRAINING 
FUNDS: 
IMPROPER INDUCEMENT: OBSTRUCTION OF INVESTIGATIONS 
"SEC. 665. (a) Wlioever, being an officer, director, agent, or employee 
of, or connected in any capacity with any agency receiving 
financial 
assistance under the Comprehensive Employment and Training Act 
knowingly hires an ineligible individual or individuals, embezzles, 
willfully misapplies, steals, or obtains by fraud any of the moneys. 
39-194 O—80—pt. 2 
47 : QL3 
92 STAT. 2018 
PUBLIC LAW 95-524—OCT. 27, 1978 
29 u s e 801 note. 
funds, assets, or property which are the subject of a grant or contract 
of assistance pursuant to such Act shall be fined not more than $10,000 
or imprisoned for not more than 2 years, or both; but if the amount 
so embezzled, misapplied, stolen, or obtained by fraud does not exceed 
$100, such person shall be fined not more than $1,000 or imprisoned 
not more than 1 year, or both. 
" (b) Whoever, by threat or procuring dismissal of any person from 
employment or of refusal to employ or refusal to renew a contract of 
employment in connection with a grant or contract of assistance under 
the Comprehensive Employment and Training Act induces any per-
sons to give up any money or thing of any value to any person (includ-
ing such grantee agency) shall be fined not more than $1,000, or 
imprisoned not more than 1 year, or both. 
"(c) Any person whoever willfully obstructs or impedes or 
endeavors to obstruct or impede, an investigation or inquiry under 
the Comprehensive Employment and Training Act, or the regulations 
thereunder, shall be punished by a fine of not more than $5,000, or by 
imprisonment for not more than 1 year, or by both such fine and 
imprisonment,". 
(b) The analysis of chapter 31 of title 18, United States Code, is 
amended by striking out the item relating to section 665 and inserting 
in lieu thereof the following new item: 
"665. Theft or embezzlement from employment and training funds; improper 
inducement; obstruction of investigations.". 
Financial 
assistance. 
29 u s e 801 note. 
Waiver of 
Federal laws or 
regulations. 
TRAKSITIONAL PROVISION 
SEC. 4. (a) (1) The Secretary of Labor (hereinafter in this section 
referred to as the "Secretary") may provide financial assistance, in 
accordance with the provisions of this section, in the same manner 
that such assistance was provided under the Comprehensive Employ-
ment and Training Act of 1973 (as in effect on the day before the date 
of the enactment of this Act), to the extent the Secretary considers 
necessary to provide for the orderly transition of employment and 
training programs carried out under such Act and to provide con-
tinued financial assistance for such programs. 
(2) The authority of the Secretary established in paragraph (1) 
shall expire at the end of March 31,1979. 
(b) The Secretary shall take such action as may be necessary to pro-
vide, as soon as possible after the date of the enactment of this Act, for 
the implementation of provisions of the Comprehensive Employment 
and Training Act relating to the prohibition of fraud and other abuses 
in connection with the administration of programs under such Act. 
(c)(1) The provisions of the Comprehensive Employment and 
Training Act relating to supplementation, maximum Federal wage 
rates, and eligibility shall apply to the provision of financial assistance 
by the Secretary after the end of the 90-day period beginning on the 
date of the enactment of this Act. 
(2) The eligibility conditions established in section 608 of the Com-
prehensive Employment and Training Act of 1973 (as in effect on the 
day before the date of the enactment of this Act) shall apply, during 
the period specified in paragraph (1), with respect to any individual 
hired for public service employment on or after such date of 
enactment. 
(d) The Secretary shall have authority to waive the application of 
any Federal law, or any regulation or other requirement prescribed 
or estaJDlished under any Federal law, which establishes time period 
limitations or other requirements which relate to notice, hearings, or 
J9 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 2019 
similar matters which otherwise would be applicable to the mamier 
in which regulations prescribed by the Secretary may take effect, to 
the extent the Secretary deems such waiver necessary to carry out the 
provisions of subsection (b) and subsection (c). 
(e) If the Secretary determines that he cannot carry out the provi-
sions of subsection (b) and subsection (c), other than those provisions 
which require any amendment to comprehensive employment and 
training plans, at the end of the 90-day period specified in subsection 
(c)(1), the Secretary shall furnish notice of such determination to 
the Committee on Human Resources of the Senate and the Committee 
on Education and Labor of the House of Representatives. Such notice 
shall include the reasons for such determination. 
(f) The National Commission for Manpower Policy, as in existence 
on the day before the date of the enactment of this Act, shall continue 
in existence until the members of the National Commission for 
Employment Policy are appointed in accordance with the provisions 
of title V of the Comprehensive Employment and Training Act. 
Notice to 
congressional 
committees. 
REPORTS 
SEC. 5. (a) Not later than February 1, 1979, the Secretary shall, 
after consultation Avith appropriate State and local officials and other 
interested parties, submit to the Congress a report containing recom-
mendations and suggested legislation with respect to any necessary 
improvements in the Wagner-Peyser Act (29 U.S.C. 49), including 
such legislation as may be necessary to assure coordination between 
such Act and the Comprehensive Employment and Training Act. 
(b) The Secretary shall develop methods to ascertain, and shall 
ascertain annually, energy development and conservation employment 
impact data by type and scale of energy technologies used. The Secre-
tary shall present the best available data to the Secretary of Energy, 
the Secretary of Housing and Urban Development, and the Director 
of the Office of Management and Budget as part of the budgetary 
process and to the appropriate Committees of Congress annually. 
(c) (1) On or before March 1, 1979, the Joint Economic Committee 
shall report to Congress on the ability of targeted structural employ-
ment and training programs to achieve and sustain (A) a decrease in 
unemployment rates among those segments of the labor force having 
special difficulties in obtaining employment and (B) a decrease in the 
national unemployment rate without exacerbating inflation and shall 
make such recommendations, as the Committee deems appropriate, for 
improving the ability of targeted structural employment and training 
programs to achieve such goals. The Joint Economic Committee shall, 
to the extent feasible, consult with appropriate Federal agencies, the 
Human Resources Committee of the Senate and the Committee on 
Education and Labor of the House of Representatives, the Con-
gressional Budget Office, the National Commission for Employment 
and Training Policy, the Board of Governors of the Federal Reserve, 
and other appropriate individuals, both public and private, and obtain 
their assistance in preparing the report. 
(2) The Joint Economic Committee, as part of the report to the 
Congress required under paragraph (1), is requested to include, with 
recommendations, if any, an analysis of the subject of incentive 
grants, or other assistance permissible under this Act, to private 
employers in reducing unemployment rates among individuals eligible 
for assistance under this Act, through national priority projects, 
including, but not limited to better housing, health care, agriculture, 
and transportation. 
29 u s e 829 note. 
29 u s e 801 note. 
29 u s e 829a. 
29 u s e 829 note. 
92 STAT. 2020 
PUBLIC LAW 95-524—OCT. 27, 1978 
29 use 829 note. 
(d) The Secretary shall develop information relating to the num-
ber of individuals who have attained 16 years of age and who are 
members of a family with an income which is equal to or less than 
70 percent, 85 percent, and 100 percent of the lower living standard 
income level for the jurisdiction of each prime sponsor. The Secretary 
shall prepare and submit as part of the annual report submitted on 
March 1, 1980, under section 127(a) to the President and to the Con-
gress a report on the information required by this subsection. 
Labor 
Management 
Cooperation Act 
of 1978. 
29 u s e 175a 
note. 
29 u s e 173. 
29 u s e 175a. 
Grants and 
contracts. 
ASSISTANCE TO PLANT, AREA, AND INDUSTRYWIDE LABOR 
MANAGEMENT COMMITTEES 
SEC. 6. (a) This section may be cited as the "Labor Management 
Cooperation Act of 1978". 
(b) It is the purpose of this section— 
(1) to improve communication between representatives of labor 
and management; 
(2) to provide workers and employers with opportunities to 
study and explore new and innovative joint approaches to achiev-
ing organizational effectiveness; 
(3) to assist workers and employers in solving problems of 
mutual concern not susceptible to resolution within the collective 
bargaining process; 
(4) to study and explore ways of eliminating potential prob-
lems which reduce the competitiveness and inhibit the economic 
development of the plant, area or industry; 
(5) to enhance the involvement of workers in making decisions 
that affect their working lives; 
(6) to expand and improve working relationships between 
workers and managers; and 
(7) to encourage free collective bargaining by establishing con-
tinuing mechanisms for communication between employers and 
their employees through Federal assistance to the formation and 
operation of labor management committees. 
(c) (1) Section 203 of the Labor-Management Kelations Act, 1947, 
is amended by adding at the end thereof the following new subsection: 
"(e) The Service is authorized and directed to encourage and sup-
port the establishment and operation of joint labor management activ-
ities conducted by plant, area, and industrywide committees designed 
to improve labor management relationships, job security and organiza-
tional effectiveness, in accordance with the provisions of section 
205A.". 
(2) Title II of the Labor-Management Relations Act, 1947, is 
amended by adding after section 205 the following new section: 
"SEC. 205A. (a) (1) The Service is authorized and directed to pro-
vide assistance in the establishment and operation of plant, area and 
industrywide labor management committees which— 
"(A) have been organized jointly by employers and labor 
organizations representing employees in that plant, area, or 
industry; and 
"(B) are established for the purpose of improving labor man-
agement relationships, job security, organizational effectiveness, 
enhancing economic development or involving workers in decisions 
affecting their jobs including improving communication with 
respect to subjects of mutual interest and concern. 
"(2) The Service is authorized and directed to enter into contracts 
and to make grants, where necessary or appropriate, to fulfill its 
responsibilities under this section. 
PUBLIC LAW 95-524—OCT. 27, 1978 
92 STAT. 2021 
"(b) (1) No grant may be made, no contract may be entered into 
and no other assistance may be provided under the provisions of this 
section to a plant labor management committee unless the employees 
in that plant are represented by a labor organization and there is in 
effect at that plant a collective bargaining agreement. 
"(2) No grant may be made, no contract may be entered into and no 
other assistance may be provided under the provisions of this section 
to an area or industrywide labor management committee unless its par-
ticipants include any labor organizations certified or recognized as the 
representative of the employees of an employer participating in such 
committee. Nothing in this clause shall prohibit participation in an 
area or industrywide conunittee by an employer whose employees are 
not represented by a labor organization. 
"(3) No grant may be made under the provisions of this section to 
any labor management committee which the Service finds to have as 
one of its purposes the discouragement of the exercise of rights con-
tained in section 7 of the National Labor Relations Act (29 U.S.C. 
157), or the interference with collective bargaining in any plant, or 
industry. 
"(c) The Service shall carry out the provisions of this section 
through an office established for that purpose. 
"(d) There are authorized to be appropriated to carry out the pro- Appropriation 
visions of this section $10,000,000 for the fiscal year 1979, and such authorization, 
sums as may be necessary thereafter.". 
(d) Section 302(c) of the Labor Management Relations Act, 1947, 29 USC 186. 
is amended by striking the word "or" after the semicolon at the end 
of subparagraph (7) thereof and by inserting the following before 
the period at the end thereof: "; or (9) with respect to money or other 
things of value paid by an employer to a plant, area or industrywide 
labor management committee established for one or more of the pur-
poses set forth in section 5(b) of the Labor Management Cooperation 
A c t of 1978". 
, 
, 
Ante, p. 2020. 
(e) Nothing in this section or the amendments made by this section 29 USC 175a 
shall affect the terms and conditions of any collective bargaining note, 
agreement whether in effect prior to or entered into after the date of 
enactment of this section. 
REPEALER 
SEC. 7. Section 104 of the Emergency Jobs and Unemployment 
Assistance Act of 1974 (Public Law 93-567) is hereby repealed. 
38 USC 2002 
Approved October 27, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 95-1124 accompanying H.R. 12452 (Comm. on Education and 
Labor) and No. 95-1765 (Comm. of Conference). 
SENATE REPORTS: No. 95-891 (Comm. on Human Resources) and No. 95-1325 
(Comm. of Conference). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
Aug. 9, H.R. 12452 considered in House. 
Aug. 22, 25, S. 2570 considered and passed Senate. 
Sept. 22, H.R. 12452 considered and passed House; passage vacated and 
S. 2570, amended, passed in lieu. 
Oct. 13, Senate agreed to conference report. 
Oct. 15, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 43: 
Oct 27, Presidential statement. 
note.